Airbnb hosts warn there will be fewer accommodation options in Wellington as a result of a council vote to more than double rates for short-term rental accommodation providers.
From July next year, short term accommodation providers will pay 2.6 times the base council rates.
Wellington Airbnb host Julie Wilson said the rates were harsher than in other parts of the country, with some hosts expected to be hit with $20-40,000 rates - a "showstopper for them".
“Any policy that will reduce accommodation supply and therefore reduce visitor spending is not going to be good for Wellington,” she said.
Wellington Mayor Andrew Little said the increase in rates would make for a fairer system.
"We know that's a challenge, but the reality is that we charge other accommodation providers a full commercial rate, that's 3.7 times at the moment. And that was the rate previously that they were going to be asked to pay."
Manjit Singh, Hospitality NZ's Wellington president, had welcomed the council's decision.
"It's very hard for any commercial business to compete because we have a lot more fixed costs in terms of compliance, infrastructure."
The new rate will apply to accommodations available for more than 60 days, for stays under a month, excluding single rooms, granny flats, sleep outs and some dual keys.
“We might only have availability for 61 nights and less bookings compared to a hotel that runs 365 days a year," said Wilson.
“Many of them are housing people displaced by the storms with families that come in with pets. They're the sort of groups that aren't suitable to be put in a hotel.”
Airbnb was pushing for a visitor levy instead, which they said would allow councils to raise necessary funding needed to invest in tourism infrastructure.
The mayor said he was still open to changes, suggesting a bed tax as another option.
"If the government decides to introduce bed tax or something like that, which I think would be the preferable approach, then everybody's treated the same, then that'll make a difference."
Tourism and Hospitality Minister Louise Upston told 1News the government was committed to exploring an accommodation levy policy next year.
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