AAA attacks short stays in submission
The Accommodation Association of Australia has welcomed the opportunity to put forward a submission to be considered by the Productivity Commission as part of its inquiry into business set-up, transfer and closure.
The Australian government asked the Productivity Commission to undertake a public inquiry into barriers to setting up, transferring and closing a business and identify options for reducing barriers where appropriate.
The AAA’s base policy position is that there should be less regulation for businesses in our industry in Australia, not more. However, given that in the 2013-14 financial year, there were more than 50 million room nights occupied in Australia, the duty of care to guests who stay in accommodation establishments is paramount. In essence, the level of regulation in Australia’s accommodation industry must strike a balance between the safety of guests and the cost of administration and compliance.
The AAA emphasised the following key points in the submission:
- The Accommodation Association supports the Productivity Commission developing a standard, national definition for tourism accommodation which should be that tourism accommodation is any continuous stay which is not longer than 90 days.
- Building fire safety is a significant factor in the cost of maintaining a safe tourism accommodation business in Australia.
- Companies which generate business by creating a platform for residential properties to be used for short-stay tourism accommodation are displaying a flagrant disregard for numerous regulatory requirements, including planning laws, building fire safety, disability access, insurance and payment of taxes.
- Companies that create a platform for residential properties to be used – illegally – for tourism accommodation are severely compromising the safety of guests.
- Companies which create a platform for residential properties to be used for tourism accommodation, as well as the owners and occupiers of the properties, should be the subject of a much stronger compliance regime.
- Each regime should be funded by significant fines for non-compliance of not less than $1 million per property.
- Zoning arrangements by local government authorities should ensure that holiday rentals will not be adversely impacted by changes to the regulatory regime that the association is advocating for.
- Developing tourism accommodation infrastructure in Australia requires a minimum period of six years – and more like eight years – from concept to completion.
- Parallel processing of development applications and liquor licences for tourism accommodation developments should take place and must take into account previous approval processes in other Australian jurisdictions.
