00:05platforms like airbnb and booking.com stormed onto the south african market just over a decade ago
00:12but demand for more convenient affordable short-term stays exploded after covid19
00:17in tourist hotspots like cape town that spike has driven up property prices
00:22and created long-term rental supply challenges it's pushing all the prices up which is causing
00:28a like a link chain throughout the whole of the industry so where you have a shortage with with
00:34housing you've also got very expensive housing which the average capetonian cannot afford cape
00:40town has over 26 000 airbnb listings more than cities like barcelona and new york the sector
00:47contributes significantly to jobs and tourism revenue but the city is pushing back against
00:53those flouting residential property laws the proposed draft bylaw does not introduce a new tax
00:59or tax hikes but rather a measure to improve compliance with the city's existing rates policy
01:06which already requires short-term letters to pay commercial rates for properties primarily used for
01:15this purpose steadfast africa runs a portfolio of airbnb properties across southern africa and has
01:23welcomed stricter regulations but is concerned about the potential financial impact i think that they're
01:29trying to do the right thing for the right reasons the gap however between our rates which are already
01:36quite high and the rates which are being proposed of um over double does seem to be quite a big
01:43difference
01:44and i worry that there will be a perverse incentive to not comply with the new regulation south africa is
01:51unlikely to ban short-term stays like some other global cities but it will need to strike a careful
01:57balance between local housing needs and tourist demand i'd say that the positive impact of having extra
02:05beds available and more tourists spending money in a tourist centric uh town is usually overwhelmingly more
02:15positive than negative and despite many calls to restrict abnb and booking.com short-led platforms
02:22they've instead tried to seek a way that will perhaps just open more stock available for longer term
02:29let's cape town's move marks one of the most significant interventions yet in the local housing
02:35market short-term rental platforms have significantly disrupted the traditional accommodation sector
02:41intensifying calls for a level playing field whether the overhaul will curb rising property prices
02:48prices and restore long-term rental stock remains to be seen
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