Airbnb jitters

A bill to introduce sweeping changes to the regulatory framework of the tourism sector by making it mandatory, among other things, for Airbnb operators to be licensed and regulated by the Jamaica Tourist Board (JTB), hit a snag in the House of Representatives on Tuesday, resulting in the debate being suspended indefinitely.

Opposition Leader Mark Golding described Clause 17 of the bill as the “sword of Damocles”, which, he said, imposes both fines and criminal sanctions on persons who operate tourist accommodations, to include Airbnb-type operations, without being registered or licensed with the JTB.

Golding also noted that the penalty for contravening Section 17, subsection (4) is also significant in relation to tourist accommodation.

“So they’ve singled out that category which is being treated differently to domestic tour services, ground transportation services, including contract carriage and motor vehicle rental and tourist attractions,” he observed.

If a tourism accommodation, such as an Airbnb, comprising between one and 50 rooms is not licensed or registered, the courts can impose a fine not exceeding $1 million or imprisonment for a term not exceeding 12 months, or both the fine and imprisonment under the proposed law.

“And then as you get bigger, the penalties go up. Between 51 and 100 rooms, you go to a $2-million fine and a prison term not exceeding a year, or to both,” he added.

Golding questioned if the players in the Airbnb sector have been consulted in relation to the implications of being brought under the net of the JTB and the Jamaica Tourist Board Act.

“I suspect not,” he said.

“We’re well aware that the main players in the tourism industry, the established hotels and so on, we’ve been hearing from them about the need to regulate that side and the playing field isn’t level, and so on.”

He called for extensive consultations with the operators of Airbnb properties so they can understand the implications of the proposed legislation and be in a position to lobby for whatever consequential provisions they believe should be in the bill.

Tourism Minister Edmund Bartlett, who piloted the bill, said the proposed law seeks to modernise and clarify the categories of tourism enterprises.

He said the bill seeks to create a new and modern framework for tourist accommodation, tourist attraction and water sports, among other areas.

“While the JTB has played a vital role in marketing destination and supporting sector growth, its current legislative mandate does not provide a clear or comprehensive basis for regulating the full range of tourism enterprises now operating in Jamaica,” Bartlett said.

He said the updated legislation will introduce a new registration process as a first step prior to licensing.

Responding to concerns raised by the Opposition, Bartlett said consultations were “heavy and strong” with the structured leadership of Airbnb in Jamaica.

“So, whatever decision that I make today in relation to the continuation of this particular debate, [it] has nothing to do with the misguided positions being posited with regards to the Airbnb sub-sector,” Bartlett said.

He noted that a third of visitors who come to the island stayed in Airbnbs.

In his contribution to the debate, Member of Parliament for St Andrew South East Julian Robinson urged the Government not to rush the bill through Parliament, as many Airbnb players were not consulted on the changes that would affect them.

“This bill cannot be passed today,” Robinson insisted, adding that if the bill was passed, an injustice would be done to the players.

“When I think of how far-reaching the implications are for thousands of Jamaicans, let me be parochial in my own constituency and think of all the developments that have taken place and those persons who have made investments by buying apartments and town houses for the purposes of using them for Airbnb,” he said.

Robinson made it clear that his concern was not with the regulation of the sector, but the timeframe that would be given to players to get registered and licensed or face criminal sanctions.

If the House of Representatives takes its summer break before debating the bill, the proposed law will automatically fall off the order paper, with the dissolution of Parliament expected before the upcoming general election.

editorial@gleanerjm.com