Airbnb Mexico’s Great Dilemma That’s Rocking Its Business

AirbnbThe world’s most popular online hosting platform is facing difficult days in Mexico as reform introduced by that country’s Congress limits its operations.

Thus? Well, the recent approval of amendments to the Tourism Law, proposed by Martí Batres, former head of the government of Mexico City, places temporary restrictions on the use of these platforms, allowing stays to be offered only during six months a year.

According to authorities, the massive use of services such as Airbnb has contributed to gentrification in some areas, driving up home prices and changing neighborhood dynamics. The main argument is that regulation will help level the playing field for traditional housing providers who have faced increased unfair competition.

Airbnb currently accounts for 40% of total room occupancy in Mexico, according to Statista.

Cons of this measure for Airbnb

Airbnb is wary because it knows the measure will have a major impact on its business. Among its strongest arguments to support its position in favor of unlimited freedom, the company noted that this ban would affect thousands of people, including hosts and users, who depend on this income to supplement their family finances.

Airbnb users have called the reform “amazing,” and Airbnb owners say there are specific examples of these types of measures failing, “due to negative impacts on the local economy and rising house prices. traditional, as seen in places like New York.

Moreover, as El Imparcial commented, “Airbnb criticizes the lack of participation of all participants in the decision-making process, from authorities to owners and neighbors, which has created an atmosphere of mistrust around the intentions of regulation.

The same publication reports that “between 2017 and 2023, the company saved and issued more than 500 million pesos in taxes related to housing, which will result in the collection of a total of 2,200 million pesos at the national level,” so the economic impact of this reform will be very high for the population.

Angel Terral, CEO Airbnb in Mexicofurther stated that 95% of the properties listed on the platform are owned by people who rent space in their homes.