Airbnb’s call for help

The company and other short term rental providers have written a plea to treasurer Josh Frydenberg, as the coronavirus epidemic continues to bite.

This illustration picture taken on November 22, 2019, shows the logo of the online lodging service Airbnb displayed on a smartphone in Paris. (Photo by Lionel BONAVENTURE / AFP)

The peak body representing short term rental companies including Airbnb has written to treasurer Josh Frydenberg and tourism minister Simon Birmingham, calling for tax relief and mortgage payment deferment as hosts are increasingly hit hard by the coronavirus epidemic.

The letter, from Australian short-term rental accommodation (ASTRA) chair Rob Jeffress, Stayz director Eacham Curry and Airbnb public policy head Derek Nolan, says companies like Airbnb and Stayz account for about 20 per cent of Australia’s tourism accommodation.

It says the vast majority of short-term rentals are owned by families and small business owners who rely on the income, and have been impacted severely by Australia’s travel lock downs.

“The reality is these everyday Australians do not have deep pockets or access to corporate credit facilities like the larger/international hotel chains,” the letter reads.

“Like other parts of the tourism industry, STRA operators and hosts have been severely impacted by a devastating trifecta of bushfires, drought and floods, and now the COVID-19 emergency.

“The significant reduction in visitor numbers and expenditure has meant financial and personal hardship for many and their families. This hardship is compounded by the uncertainty around how long the crisis and tourism downturn will continue.”

The executives say they support the government's response including the initial $76 million recovery package and the government stimulus packages, but that more can be done to aid hosts.

They are calling on the government to issue guidance to the big banks to allow Airbnb and Stayz hosts to defer mortgage repayments, and to provide relief for tax obligations on their rental income.

They also want the government to “support employment by expanding the Boosting Cash Flow for Employers measure for small and medium-sized enterprises to

include STRA operators so they can continue paying property managers, cleaners, and other staff during this time”, “issue rebates on tourism levies that hosts and operators pay to local councils as a relief measure; and “state governments to rebate land taxes (as payroll tax rebates only assist larger employers).”

The executives have also called on the government to promote short-term rental accommodation operators in future marketing campaigns and expand consultation between the industry and Tourism Australia.

“We again want to acknowledge the Australian Government and National Cabinet for the leadership shown during this crisis and the decisive action taken to date to keep Australians safe and the economy strong,” the letter reads.

“We pledge to stand shoulder-to-shoulder with the government, industry and local communities to help respond and recover from this crisis.”

Research from the University of Queensland estimates there are almost 350,000 Airbnb properties in Australia.

The company was set to list on the stock exchange this year but is rumoured to have deferred those plans. US travel start-ups TripActions, Sonder and ZeusLiving have already reportedly laid off hundreds of employees, as the travel industry increasingly shuts down.

The treasurer was contacted for comment.