SNP holiday lets chaos is scaring off tourists, says Airbnb

Airbnb has launched a damning attack on the SNP’s ‘flawed’ short-term lets policy, claiming it is driving tourists away from Scotland.

The $100billion global accommodation firm says tourists are shunning Scotland because of the Scottish Government’s holiday rental red tape shambles.

Government rules require anyone who rents out rooms or their home on a short-term basis to apply for a licence – costing up to £5,800 – from local councils. 

Airbnb says the regulations are driving visitors away, particularly to towns in the north of England, and robbing Scots homeowners of much-needed cash.

It also argues the licensing scheme has failed to deliver the promised benefits for locals. 

It is thought Airbnb will attempt to persuade the Scottish Government to review and change the rules.

The latest scathing assessment of the SNP scheme comes after The Mail on Sunday revealed the new rules had left Edinburgh’s famous festivals facing an accommodation crisis with a 90 per cent reduction in rental spots in the city.

The crackdown on short-term lets was meant to increase availability and affordability of properties for long-term residential letting.

But, according to Airbnb, rents have actually increased.

In a report entitled Six Months On: An update on the impact of Scotland’s short-term let rules, the firm concluded: ‘The implementation of short-term rental rules in Scotland is harming its tourism industry and limiting economic opportunities for local families.

‘Despite the measures, they have not delivered positive impacts on housing and rental prices, which have reached their highest annual rate in nearly a decade.’

Amanda Cupples, Airbnb general manager of Northern Europe, added: ‘Data shows Scotland’s short-term rental rules are not translating into benefits for local families. 

Since the scheme has been in place, hotel and rental prices have increased, tourism is expected to suffer, and families have lost a vital source of income.

‘Airbnb has worked with governments across the world to balance the benefits of short-term rentals with local housing concerns, and we hope to work with Scotland on policies that benefit everyone.’

The attack by Airbnb follows warnings over the future of the Edinburgh Festival Fringe, with a number of high-profile figures claiming accommodation in the city is now so expensive acts can no longer afford to perform there.

Former BBC presenter Gail Porter said she had been ‘priced out’ of putting on a show in her home town, while comedian Jason Manford said Edinburgh prices were an ‘absolute joke’.

Meanwhile, demand for sell-out events such as Taylor Swift’s concerts in June has also helped drive prices up to stratospheric levels.

The rules requiring councils to run a short-term let licensing scheme came into force last October.

Anyone renting out anything from a single room in a shared flat to a whole castle, as well as rooms in B&Bs and guesthouses – must apply and pay for a licence.

The rules were intended to curb the number of short-terms lets, particularly in Edinburgh where some residents complained they were being swamped by visitors.

However, tourism bodies and accommodation providers warned the rules were draconian, costly and created a huge burden of red tape, harming businesses already struggling with inflation pressures and the legacy of the pandemic.

Tory MSP Murdo Fraser said: ‘This damning report shows the damaging reality of the SNP’s flawed short-term lets policy.

‘Tourists are turning their backs on Scotland and small business owners are being hammered.’

Airbnb was founded in 2008 in the US and is now the world’s best known online site for short-term lets. 

It advertises around five million properties in 100,000 towns and cities around the globe. The firm believes the new rules in Scotland are having a negative effect.

Its report stated: ‘The disruption to supply will limit accommodation options for guests, restrict earning opportunities for families and hurt small businesses that rely on visitors to Scotland.’

Airbnb also pointed out the introduction of the licensing regime has not led to long-term rentals for residents becoming cheaper.

It said: ‘Long-term rental prices surged 6.8 per cent in the 12 months to January 2024. 

This increase marks the highest annual rate recorded in over a decade, indicating the new rules on short-term lets have not immediately resulted in improved rental affordability.’

Airbnb claimed some visitors are heading elsewhere, stating: ‘With fewer options available, travellers are now increasingly turning their attention to the north of England.

‘Cities such as Liverpool and Newcastle have experienced a surge in searches, suggesting they are becoming attractive alternatives for travellers.’

Catherine Sutherland, an Airbnb host from Edinburgh, said providers such as her were losing out.

She added: ‘The regulations are hurting tourism. People are struggling to find affordable accommodation and are effectively blocked from visiting Scotland.’

The Scottish Government has defended the licensing scheme. It said: ‘The number of overseas visitors to Scotland has recovered from the pandemic at a faster rate than the rest of Britain.

‘The introduction of licensing provides assurance to guests on safety and quality.’