Airbnb and the Arabs

[Inspire]

Airbnb and the Arabs

Last week’s story of the condo on Sukhumvit where the manager was hauled away by Lumpini police for sub-letting apartments has prompted a number of questions.

The law on this occasion seemed to have the manager banged to rights whether he was acting alone or in connivance with unit owners in the building. Some 48 units were thought to be being rented out essentially as a hotel. Police found many people in about twenty rooms – especially Arabs on health tourism at 500 baht a person. Essentially running a hotel in a tourist district was bound to attract attention; though the reason given was angry condo owners in the Liberty Park 2 complex worried about security, it is easy to imagine that local hotel operators had a hand in bringing in the force.

While we can probably expect other cases of this nature where the law is being so flagrantly violated there are much grayer areas affecting thousands of private individuals especially in Bangkok. These concern the ever increasing rise of residents – both local and expatriate – who are renting out their properties, both within their own home and in vacant properties on Airbnb.

Airbnb was founded in San Francisco in 2008 and the online short term rental organization has now mushroomed into a major player throughout the world with a reputed 1.5 million listings in 34,000 cities in nearly 200 countries. An aggressive marketing strategy to develop the company in Asia was initiated in 2012 with the opening of a Singapore office with the organization now having 19 offices worldwide. It was given a 10 billion dollar valuation in 2014 and has won several awards for innovation.

While there is yet to be an office in Thailand the number of people listing in the country has grown substantially. In 2012 there were less than a handful of Airbnb members in Bangkok. Now there are thousands with people renting rooms of every description from about 500 baht up per night not just in the capital but throughout the country.

And these are not couches in living rooms – many of the renters are people well organized as semi-professional hoteliers offering excellent value for money often in high end condos, from swimming pools and security down to towels, toiletries and breakfast – all the things you might expect of a hotel at a considerable saving for the customer. Bookings and payments are easy with the organization providing back up support on a commission basis.

So to the questions.

The Erawan bombing outrages of last year caused the authorities to tighten laws regarding the reporting of foreigners staying overnight at properties. This does not just refer to hotels and guest houses used to such measures but has a much wider net. To what degree are those offering accommodation on Airbnb reporting their guests? This may be quite a low number despite the disclaimer on the Airbnb site reminding hosts about following the laws relating to registration and tax within the jurisdiction of their rental property. Renters may not want to alert anyone to their business on the side.

According to some reports even organizations such as the American Hotel and Lodging Association have experienced “much distress” as competition from Airbnb in some US cities eats into profits. US law is still somewhat fuzzy on the Airbnb model with some courts overturning previous bans on operations, even in San Francisco itself. In New York City in 2014 a judge ruled that a ban on short term letting only referred to landlords and not private individuals renting out their homes. Some Airbnb members facing bans pled hardship in the wake of the collapse of the housing market in America some years back. Airbnb was seen by some as a means of avoiding foreclosure.

As the concept of Airbnb gains momentum in Thailand it is probably only a matter of time before hoteliers start taking note and calling for action. The country has already been the location for several low profile yearly seminars organized by Airbnb designed to improve hosts’ operations and profitability. Thank you get-togethers for locals involved in the business have also been run. And Thailand is one of several countries where development of the business is such that hosts can avail themselves of a million dollar insurance scheme in cases of theft by guests or when other large liabilities might accrue.

In this regard it may take something like a high profile case to prompt the authorities to issue a crackdown as much as the protectionist hotel lobby. A case of damage such as fire caused to a building through the negligence of an Airbnb guest would be one such scenario while police and immigration will be keen to ensure that their watch on undesirable visitors is not compromised and tax authorities may pay closer inspection to the burgeoning business.

Undies in public

The case of the western female tourists who were reportedly ungrateful for being asked by a police officer to cover up in an Ayuthaya park prompted a great deal of comment on issues considerably more far reaching than just the issue of public nudity, semi or otherwise. And other cases recently of differing examples of tourists as well as locals offending public morality have hit the spotlight.

The women, aged about twenty, were somewhat cross when they were asked to dress more appropriately as they sunbathed in a wooded area near the historical ruins. Apparently they walked off in a huff not waiting to listen to the well intentioned officer on bicycle patrol in the area who was concerned for their safety. Many men had stopped to stare at the sunbathers.

Now this is just a minor case but the questions are anything but.

Full story: http://www.inspirepattaya.com/lifestyle/airbnb-arabs/

-- Inspire Pattaya 2016-05-22

[simon43]

The T&Cs on Airbnb's website are clear in respect of hosts who rent out their apartments.

(Their capital letters, not mine)

"IN PARTICULAR, HOSTS SHOULD UNDERSTAND HOW THE LAWS WORK IN THEIR RESPECTIVE CITIES. SOME CITIES HAVE LAWS THAT RESTRICT THEIR ABILITY TO HOST PAYING GUESTS FOR SHORT PERIODS. THESE LAWS ARE OFTEN PART OF A CITY'S ZONING OR ADMINISTRATIVE CODES. IN MANY CITIES, HOSTS MUST REGISTER, GET A PERMIT, OR OBTAIN A LICENSE BEFORE LISTING A PROPERTY OR ACCEPTING GUESTS. CERTAIN TYPES OF SHORT-TERM BOOKINGS MAY BE PROHIBITED ALTOGETHER. LOCAL GOVERNMENTS VARY GREATLY IN HOW THEY ENFORCE THESE LAWS. PENALTIES MAY INCLUDE FINES OR OTHER ENFORCEMENT. HOSTS SHOULD REVIEW LOCAL LAWS BEFORE LISTING A SPACE ON AIRBNB."

[alant]

My wife rents rooms out, all guests data is sent to immigration on line as is mine if I return from an overseas trip.

Edited May 22, 2016 by alant

[alanrchase]

What has it got to do with Arabs?

[Class C]

Imagine if it was not possible to book via Airbnb to come to Thailand.

Would this improve tourism or impact it negatively ?

Having worked in the hotel business in Thailand for many years I would nevertheless not try to over regulate this massive new growth area in the travel industry.

[impulse]

Forgetting hotel owners and AirBNB hosts, I don't think I'd like it if I paid good money for a condo to live in, only to find out that I get new and transient neighbors every week or so, with 24/7 partying on their agenda until they leave and the next batch come in.

Not to mention the security concerns over strangers who may and may not belong in the building, and who would know if they're paying guests or on a "no cost shopping spree" in our building?

On the flipside, if I owned a condo in the tropics and only lived in it a few weeks a year, it would be tempting to rent it out. And screw the neighbors... Don't like them anyway.

Edited May 22, 2016 by impulse

[xen]

What has it got to do with Arabs?

probably a overenthusiastic spell check and nobody checked the copy.

[impulse]

What has it got to do with Arabs?

More clicks that way.

And more clicks = more $$$.

[tomyumchai]

What has it got to do with Arabs?

probably a overenthusiastic spell check and nobody checked the copy.

yup. the predictive text on my old phone used to bug the crap out of me when i got messages from my mates saying they had caught *arabs* off a dirty bargirl....

[alanrchase]

What has it got to do with Arabs?

probably a overenthusiastic spell check and nobody checked the copy.

yup. the predictive text on my old phone used to bug the crap out of me when i got messages from my mates saying they had caught *arabs* off a dirty bargirl....

Chuckle of the day, thanks.

[BudRight]

It's just hotels whining about competition. The foreigner registration laws are racist and evil, to hell with them.

And don't you say that the every country has such laws. That's a total lie and wouldn't matter even if it was true.

[alanrchase]

It's just hotels whining about competition. The foreigner registration laws are racist and evil, to hell with them.

And don't you say that the every country has such laws. That's a total lie and wouldn't matter even if it was true.

Just for fun I will say every country has such laws. Google away and prove me wrong. Make sure there are no low balcony rails arround before you go apoplectic.

[DrTuner]

I'm gathering the condo business in LoS is partly being supported by foreigners running illegal hotels.

[impulse]

I'm gathering the condo business in LoS is partly being supported by foreigners running illegal hotels.

Shhhhhh...

It's like Fight Club and Vegas (baby).

[bazza40]

Just how many Arabs come to Thailand anyway? I doubt if I've seen more than one or two in Chiang Mai.

I have my doubts about the AirBNB business model - what redress do you have if the luxury hideaway turns out to be a dog kennel?

[impulse]

Just how many Arabs come to Thailand anyway? I doubt if I've seen more than one or two in Chiang Mai.

I have my doubts about the AirBNB business model - what redress do you have if the luxury hideaway turns out to be a dog kennel?

The road in front of Bumrungrad Hospital in BKK has hundreds, perhaps thousands at any given time. The hospital itself is chock full of them.

Full disclosure: They're Middle Eastern. Whether they're Arab or not, I can't say. I've gotten corrected too many times.

[charliebadenhop]

As an Airbnb guest you have definite rights should the place you rent turn out to be dirty, etc. etc.

[williamgeorgeallen]

I'm gathering the condo business in LoS is partly being supported by foreigners running illegal hotels.

Shhhhhh...

It's like Fight Club and Vegas (baby).

man this was just so good i wanted to make sure everyone else got it. the first rule of fight club is what happens in vagas stays in vagas. hope i didnt ruin it. excellent.

[OccamsRazor]

What has it got to do with Arabs?

Keep up - Condo with up to "ten Arabs in a room" raided for...

[casualbiker]

My wife rents rooms out, all guests data is sent to immigration on line as is mine if I return from an overseas trip.

Really! How, via email or is their a webpage?

[simon43]

It's just hotels whining about competition.

Perhaps true. But remember that the licenced hotels are paying for being legal, such as the 1% hotel tax, costs to get the various hotel licences, selling alcohol and cigarette licences, restaurant licence, local OrBorTor tax based on the hotel number of rooms and facilities etc etc.

Why should private individuals be allowed to operate illegally? I'm fine if they want to rent out their room - just go and get a licence to do it.

[casualbiker]

It's just hotels whining about competition.

Perhaps true. But remember that the licenced hotels are paying for being legal, such as the 1% hotel tax, costs to get the various hotel licences, selling alcohol and cigarette licences, restaurant licence, local OrBorTor tax based on the hotel number of rooms and facilities etc etc.

Why should private individuals be allowed to operate illegally? I'm fine if they want to rent out their room - just go and get a licence to do it.

Is it actually possible to get a license?

[Jimbo53]

What has it got to do with Arabs?

If you had read the original report,all the rooms in the building were were being let out to Arabs on Medical Visa's by the manager of the Juristic Persons Office!!!

[simon43]

Is it actually possible to get a license?

Yes. In Phuket, it is a Homestay licence, for any accommodation of 1 - 4 rooms. It doesn't have to be a Thai-style accommodation, can be a modern condo.