ABTA president slams peer-to-peer sites as ‘part of black economy’
ABTA president Noel Josephides hit out at peer-to-peer accommodation only providers like Airbnb in his closing remarks at the ABTA Travel Convention in Slovenia.
Following a presentation by Housetrip, another peer-to-peer business at the Convention, Josephides suggested such websites, which allow homeowners to let their propeties directly to holidaymakers, were part of the ‘black economy’.
During his presentation yesterday, Housetrip chief marketing officerZaid Al-Qassab said peer-to-peer sites were part of the new ‘sharing economy’. He said accommodation-owners had always led directly to consumers using clasffied ads, but websites like Housetrip had made it easier. "We have just put them online," said Al-Qassab.
However, Josephides said accommodation-only ads, such as those in newspapers and newsagents, were always tolerated because they were small. "Airbnb have allowed the black economy to grow," said Josephides.
Al-Qassab said new ‘sharing’ websites will in five years account for 15% of accomodation-only sales, which prompted Josephides to claim they could be denying the government of valuable income tax, based, he said, on the assumption that homeowners advertising on sites like Airbnb weren’t paying tax.
If the Government failed to regulate such companies, said Josephides, he queried why ‘legitimate’ accomodation-only providers would continue to comply with financial and health and safety regulations rather than simply loading their content on to these sites.
"The government are sleep walking towards their own destruction and that of legitimate businesses that provide their income," added Josephides.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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