HOTREC has been monitoring with concern the rapid market development of online platforms providing private accommodation to tourists as well as the growing number of listed properties; both of which often developing in an uncontrolled way.
BRUSSELS – On the occasion of its 69th General Assembly, the members of HOTREC, the trade association of the European hospitality industry, debated about the drawbacks of the shadow hospitality economy and adopted a position paper calling for a level playing field on the tourist accommodation market.
HOTREC has been monitoring with concern the rapid market development of online platforms providing private accommodation to tourists as well as the growing number of listed properties; both of which often developing in an uncontrolled way. Such developments pose questions in relation to matters relevant to the whole society in Europe. Cities are reporting problems of housing, as many properties are withdrawn from the market to the benefit of renting them out short term. Residential areas are often disturbed, which already lead to demonstrations against tourists in neighbourhoods.
“The rapid development of the shadow hospitality economy might also feed the black economy and be harmful not only for the legally operating hospitality establishments but also for the whole society if developed in an uncontrolled way” said Ramon Estalella, Chair of HOTREC’s Shadow Hospitality Task Force. “A holistic approach should therefore be adopted when addressing this new market” Mr. Estalella stressed.
Indeed rightful public revenue (through compliance with fiscal obligations), and security measures according to Schengen rules, as well as hygiene and safety conditions, have to be addressed. Today, shadow accommodation providers do not comply with most regulations that responsible hospitality businesses, most of which being micro and small enterprises have to legally implement, which also concern consumer protection.
Therefore, HOTREC and its national associations call for a fair level playing field in the tourist sector to create a fair competitive environment amongst the different actors of the industry and address possible drawbacks.
“Internet has changed dramatically the way the tourism sector operates. The explosion of new online platforms and, in particular, of new forms of tourism services has modified substantially the classical tourism business model. Shadow hospitality in particular, is a new phenomenon that needs to be addressed as it also affects the quality of the overall travel experience of the consumer which may directly impact the other tourism sub-sectors” concluded Christian de Barrin, CEO of HOTREC.
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