Hoteliers want federal regulation for Airbnb and HomeAway

By Elliot Bullman

According to the Mexican Association of Hotels and Motels, Airbnb and HomeAway offer around 70 thousand accommodations in Mexico which operate under disparate conditions with hoteliers, for such reason they want boththe federal and state governments to regulate Airbnb and HomeAway.

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For Rafael García, president of the Mexican Association of Hotels and Motels, the regulation that began in Mexico City this year is not enough.

"They compete in the same conditions. It is very easy for them to offer low rates because they do not have to pay any taxes, they are also resources that are escaping from the federal treasury," Garcia said.

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"With an average occupancy of 70 percent they are selling about 50 thousand rooms. At a rate of 800 pesos means that about 40 million pesos a day goes unregulated," he explained.

García said that a hotelier must pay local governments the 3 percent lodging tax, which is only charged in Mexico City, in addition to the Value Added Tax (VAT) of 16 percent and the Tax on Income (ISR) of 35 percent, the latter two are federal.

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