Paris sides with hotels by taxing Airbnb properties

Paris sides with hotels by taxing Airbnb properties

A Paris City Council ruling on Wednesday says people renting out their apartments on short-term rental services like Airbnb must now register their properties with the government.

This is great news for the hotel industry in Paris, which has been lobbying for the change under the claim that Airbnb and similar services create unfair competition. The head of Union of Trades and Industries of the Hotel Industry (UMIH), Roland Heguy, said in a statement:

This is a strong signal sent out to other municipalities. Local collectivities now have a tool to monitor the tourist offers and control the collection of tourist taxes.

Under the new terms the city will be able to provide oversight and crack down on those who try to rent their property for more than the maximum allowable 120 days. The new ruling also allows the city to collect tourism taxes from property owners who previously weren’t required to register.

The ruling puts the rest of the globe on notice: Paris is the largest single Airbnb market in the world with more than 65,000 properties. France is the second largest national market, behind only the US. The ruling could have far-reaching consequences for Airbnb’s business.

Rental properties that were previously unregistered will have to implement the new changes by December 1st. This is sure to present some significant cost increases for travelers planning to use temporary lodging services in Paris this holiday season.

Airbnb didn’t immediately respond to requests for comment.

Hoteliers welcome Paris decision forcing Airbnb hosts to register rentals on Reuters

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