Are communities safe from strangers in local communities?
Panel discussion in progress.
Does Airbnb pay taxes? This was one of thekeenly-sought after queries from delegates at the 2017 annual Pacific Asia Travel Association (PATA) summit held in Sri Lanka’s west coast town of Negombo over the weekend.
“Yes we do pay taxes and want to pay taxes,” was Airbnb official Thao Nguyen’s stock answer to the many comments raised at the conference. An Asian-American and former US diplomat, Ms Nguyen is Head of Strategic Partnerships, APAC, Airbnb, Singapore.
Tourism Minister John Amaratunga also acknowledged that Airbnb, a hugely successful online marketplace and hospitality service helping people to lease or rent short-term lodging, was in discussions with the government on paying taxes on online sales. “They have agreed to pay taxes,” he told the conference.
Airbnb’s model has disrupted the market in many countries where travellers earlier stayed at star-class hotels and registered accommodation. In recent years, homestays like the Airbnb model is drawing more clientele – in Sri Lanka at least 40 per cent of visitors are staying in non-formal accommodation – and eating into the profits and business of traditional hotels. The competition has whipped up opposition from the traditional marketplace which is urging governments to tax Airbnb and booking.com, among other online platforms and ensure a level playing field.
Another issue that confronts homestays through platforms like Airbnb was flagged by Lawrence Leong, former Assistant Chief Executive (International Group), Singapore Tourism Board, Singapore.
“Local peace is important. Communities are getting disrupted by all kinds of visitors coming to the locality. Are young kids safe; is my daughter safe coming home at night with strangers in the locality with strange cars? The community gets disrupted by all kinds of people coming in,” he said, also adding that on the flip side, the government also needs to look at how consumers staying in Airbnb facilities are protected. In response, Airbnb’s Nguyen said that the company is constantly working to ally these concerns and also engaging with DMOs to resolve some of these local issues.