During the presentation of his reform of the right of establishment, Lex Delles (DP), Minister of Small and Medium Enterprises and Tourism, inserted a section on temporary rentals. Without naming the American giant Airbnb, preferring the term “short-term rental platform”, the Minister explained that beyond a cumulative threshold of three months over a period of one year, the operator of a temporary rentals will need to obtain a hospitality license.
“Beyond three months, I think we are no longer in an occasional sharing economy, but in a commercial activity. We were in a situation of unfair competition with hotel professionals. With this reform, we allow the freedom to rent occasionally while taking into account a need for regulation of the activity which is similar to the operation of an accommodation establishment, ”explains Delles.
144,000 overnight stays in 2017
As it does not provide figures on its activity in Luxembourg since its IPO in 2020, it is difficult to know exactly how much the Airbnb platform has grown in the country. To get an estimate, in 2018, the American giant confirmed to the Daily that it had counted 710 accommodations in Luxembourg and recorded 36,000 customers in 2017, with an average of four nights per customer, i.e. a total of 144,000 nights in one year. .
At the time, the subject was already a major concern for the Horesca federation. The federation estimated that this competition amounted to 250,000 overnight stays per year in Luxembourg in 2017. For its part, the Ministry of the Economy had estimated the number of stays via the Airbnb platform in Luxembourg at 70,000, or 2% of the 3 million overnight stays, all categories combined, recorded in Luxembourg in 2017.
Asked about Airbnb’s activity in Luxembourg, Minister Delles said he had no data on the matter. Airbnb said it wanted “to be a trusted partner for the Luxembourg authorities. We are already working with a number of European governments to help customers rent their accommodation safely and responsibly, in accordance with local regulations. We are currently in contact with the government to help put in place proportionate regulation.
Airbnb forced to exchange with the tax authorities
The European Court of Justice, based in Luxembourg, validated on Wednesday the obligation for “short-term rental platforms” to communicate to national tax authorities certain data relating to tourist accommodation transactions.
In France since January 1, 2019, the Alur law limits the rental of a main residence in its entirety (occupied at least 8 months per year) to a maximum of 120 nights per year in currently 92 municipalities. Beyond that, the announcement of the rental is automatically blocked.
In Brussels, to rent a property on the American group’s platform, you must obtain authorization from the Brussels-Capital Region. According to a study by the ULB university, only half of the accommodation on Airbnb is offered by individuals. The other half is offered by professionals and investors.
Airbnb advocates for the creation of clear and proportionate regulation across Europe. Last December, Airbnb proposed the introduction of new harmonized European rules to protect profits generated from short-term rentals in the EU.
This story was first published in French on Paper jam. It was translated and edited for Delano.
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