Group: Airbnb operations must be regulated to ensure fair competition

Local

UNREGULATED Airbnb operations are disrupting Cebu's hospitality industry, and local businesses are urging the government to act and introduce regulations to ensure fair competition.

The Hotel, Resort, and Restaurant Association of Cebu (HRRAC) has raised concerns over the negative effects Airbnb is having on hotels and resorts still recovering from the pandemic.

HRRAC President Alfred Reyes shared that the association had recently submitted a position paper to the Department of Tourism (DOT) urging tighter regulations for Airbnb operators.

He said that the absence of proper oversight creates an unfair environment, as some Airbnb hosts evade taxes while businesses like hotels, resorts, and restaurants remain bound by strict rules.

Reyes pointed out that Airbnb operators should comply with the same tax and regulatory standards as traditional hospitality establishments. Without such regulations, he stressed, Airbnb operators gain an unfair advantage over legitimate businesses.

"Airbnb operators must comply with the same regulatory and tax frameworks as hotels. Without this, we face unfair competition that undermines the accommodation sector," Reyes said.

While the DOT has put some regulations in place, Reyes argued that the measures are insufficient.

He highlighted that local government units (LGUs) and the Bureau of Internal Revenue (BIR) need to step in to ensure that Airbnb operators follow proper registration and tax processes.

Currently, there is no system to track whether these operators are acquiring the necessary permits or paying local taxes, complicating efforts to create a fair business environment.

Reyes also compared Airbnb’s situation to that of ride-hailing services, where the Land Transportation Franchising and Regulatory Board closely monitors compliance. He emphasized that Airbnb should face similar regulatory scrutiny.

The HRRAC is ready to take its fight to Congress if necessary. The association hopes to work with legislators to clarify regulations and ensure fairness in the hospitality sector.

The growing number of unregulated Airbnb listings has begun to impact the market, with some operators setting lower rates by bypassing taxes and fees. This unbalanced pricing has made it harder for traditional hotels and resorts to compete.

Although Airbnb has contributed positively to the economy by supporting thousands of tourism-related jobs, Reyes believes that without regulations, unrestrained growth could harm the stability of Cebu’s hospitality and tourism sectors.

He warned that if left unchecked, the platform's growing influence might continue destabilizing the industry and putting local businesses at a disadvantage.

Reyes concluded by saying that regulating Airbnb is crucial not only for protecting the hospitality sector but also for ensuring long-term fairness and sustainability for businesses across Cebu’s tourism industry.

In 2022, then-Vice Mayor and now Mayor Raymond Alvin Garcia proposed the idea of levying taxes on Airbnb businesses, stressing that he was not opposed to their operation in the city. However, he emphasized that these businesses should contribute to the local government's treasury.

In an episode of MyTV Cebu Openline, Garcia pointed out the complaints of hotel operators who regularly pay their taxes, while some Airbnb hosts avoid contributing to the city’s finances. He called for a thorough examination of Airbnb’s operations, urging the city to take appropriate actions.

Garcia argued that holding Airbnb accountable for taxes would not only ensure fairness but also support the city government's goal of improving its tax collection in the coming year.(MyTVCebu)