Airbnb to be regulated in Mexico by SecturBy Elliot Bullman
The hotel sector reports an economic impact of 10% due to Airbnb, which already has 75,000 rooms in Mexico.
Given Airbnb's exponential growth - where you can find houses and apartments for rent by the day, the Ministry of Tourism (Tourism Ministry) has announced that he will seek mechanisms to bring Airbnb in to line by imposing the same fiscal and legal regulations that govern the hotel industry in order to create a level playing field.
The traditional hospitality industry in Mexico offers 750,000 rooms in 21 thousand buildings, but this portal, in less than two years has 75,000 rooms. The hotel industry is concerned that are anticompetitive with the hospitality industry because they do not pay lodging taxes and they are hurting trade.
Rafael García González, president of the Mexican Association of Hotels and Motels, said that although hotel occupancy in the country has been more than 60% this year, there is concern in the industry over Airbnb, and these are issues will not go away. On the contrary, with the success and growing popularity of this platform, anticompetitive conditions affect us even more, so there must be regulations.
Garcia revealed that they are in communication with the Ministry of Finance and the Ministry of Tourism to launch a joint initiative where Airbnb are obliged to pay the 3% lodging tax that is levied on the hotel industry.
Enrique de la Madrid Cordero, the Tourism Minister has acknowledged that Airbnb is a platform that represents a threat to the hotel industry and says that he will seek to impose regulations.
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