HCMC real estate business group wants Airbnb-like services legalized
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The Ho Chi Minh City Real Estate Association has called for regulating accommodation-sharing services like Airbnb for better management and taxation.
Such services have become popular in Vietnam in recent years as they help meet the large demand for low-cost accommodation from tourists and fetch homeowners an income from spare apartments and rooms, it said in a report
HoREA pointed out that since this kind of business is still not regulated authorities are losing an opportunity to collect taxes and having difficulty managing it.
There have even been cases of people using accommodation provided by such websites for criminal activities, it said.
It called for modifying the law to allow homeowners to rent them as long as they register the business and pay taxes.
There were 40,000 Airbnb listings in the country in January this year compared to 1,000 in 2015, according to tourism development consulting firm Outbox Consulting.
HoREA also wanted restrictions on the number of days homeowners could rent out in a year and apartment management fees to be increased since it increases management work.
The number of Airbnb units in Ho Chi Minh City as of the last quarter was 13,200, down 37 percent year-on-year due to the Covid-19 pandemic, according to data from market research firm AirDNA.
In Hanoi, the figure was down 27 percent to 10,600.
Questions & Answers
Q.What is the primary reason HoREA is advocating for the regulation of accommodation-sharing services?
What is the primary reason HoREA is advocating for the regulation of accommodation-sharing services?
HoREA believes that regulating these services will allow authorities to collect taxes more effectively and improve overall management. It would also address issues such as homes being used for criminal activities, which currently pose difficulties for management.
Q.What benefits do these accommodation-sharing services offer to users and homeowners in Vietnam?
What benefits do these accommodation-sharing services offer to users and homeowners in Vietnam?
These services help meet the high demand for affordable accommodation from tourists, providing them with low-cost options. For homeowners, they offer an opportunity to earn income from their spare apartments and rooms.
Q.How has the number of Airbnb listings changed in Vietnam since 2015?
How has the number of Airbnb listings changed in Vietnam since 2015?
The number of Airbnb listings in Vietnam has seen significant growth, rising from 1,000 in 2015 to 40,000 in January this year. However, recent figures show a decline in major cities due to the Covid-19 pandemic.
Q.Beyond regulation and taxation, what other requests has HoREA made regarding these services?
Beyond regulation and taxation, what other requests has HoREA made regarding these services?
HoREA has also requested that restrictions be placed on the number of days homeowners can rent out a property annually. Also, they suggest increasing apartment management fees to account for the extra work these services create.
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