Byron Bay proposed cap on short term accommodation riles
The war in Byron Bay - the state’s hippest town - has hit next level with battling factions over a plan to cap Airbnb style-providers. Read what locals say is at stake.
Byron Shire
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The war in Byron Bay - the state’s hippest town - has hit next level with battling factions over a plan to cap Airbnb style-providers.
Byron Shire Council is proposing to restrict short-term rentals to 90 days across the year - igniting a self-described alliance of businesses and residents who claim it will be a road to ruin.
The alliance says Byron Shire depends heavily on the tourism industry and such a policy would crush local businesses and destroy jobs without fulfilling its stated purpose, that of increasing the permanent rental pool.
Many in the Airbnb industry agree.
Gabriel Sarajinsky, CEO of Sydney’s first Airbnb property management company Home Host, said he did not think this cap was a great idea for Byron Bay.
“This will have a detrimental effect on the economy,” the 43-year-old said.
“Byron Bay is a holiday destination where tourists come to spend money at local cafes and businesses,” he said.
The Byron Bay community alliance adds that this proposal is “a dream based on poor data and will cost the town hundreds of millions of dollars in lost expenditure and jobs”.
However, Mayor Michael Lygon claims the proposal could return 1500 homes to the permanent rental pool.
Byron Shire Council also argues capping short-term rentals will free up long-term housing stock.
But Tourism Research Australia research indicates the Byron community can expect more than $267m ripped from the local economy every year and up to 1448 jobs lost.
Those against the plan also note there are only 1136 homes on the official NSW short-term register in the Byron Bay area.
Mr Sarajinsky said there would not be an issue if the proposed restriction was not for a duration of three months.
“It would make sense if the cap is 185 days (six months) but a 90-day cap just isn’t enough time,” he said.
Mr Sarajinsky said “certain areas need to be available for short-term” accommodation.
He said Byron Bay’s population had evolved - from alternative lifestylers to a modern day mix which includes lots of young professionals who have investment properties.
“Yuppies have invested in properties at Byron Bay to rent out to people on holiday. This cap would make these properties nowhere near as valuable,” Mr Sarajinsky said.
“It’s taking away their right to be able to rent their properties out for as long as they want ... they should be allowed to pay off their investment properties,” he said.
Mr Sarajinsky said he felt for people in the Northern Rivers who were flood-affected and seeking short-term accommodation in Byron Bay .
“The government didn't handle it well and a great community was destroyed ... but people have to work out what’s affordable to them,” he said.
As a solution, Mr Sarajinsky suggests farmers who own land could build additional properties to help these people.
TripADeal founder Norm Black said he did not believe the council proposal would have a positive effect on housing availability or affordability.
“What it will do is have an adverse impact on tourism which the town’s employment is built on. This is a kneejerk response,” Mr Black said.
“They won’t get the outcome they are seeking but they will do a lot of damage to Byron Bay.”
The proposed restriction on short term rental accommodation is on public exhibition for feedback.
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