The most important points of the possible regulation of Airbnb in Mexico City

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The proposal has to be approved by the capital’s congress; There are nearly 26,000 spaces registered on the platform in this area of the country

A few days ago, the government of Mexico City presented the proposal to regulate digital platforms for accommodation services, after the controversy caused by the agreement between the capital authorities and Airbnb, in the midst of the gentrification phenomenon.

The initiative contemplates a reform to the Tourism Law of the Federal District and will be sent to the capital’s Congress in the coming days for approval in this ordinary period.

However, the city still does not have a rental law, an instrument that civil society organizations and specialists have previously stressed is an essential key to avoiding the displacement of inhabitants and uncontrolled increases in the market rental price.

Meanwhile, the Head of Government, Martí Batres, welcomed the proposal and highlighted its importance in regulating the operation of the platforms and combating unequal competition with the hotel sector.

“A very good agreement was reached that would have seemed impossible five months ago. The peace of mind in immediate and long-term terms is that the neighbors do not feel that there is a situation of displacement, of gentrification, that they are going to be expelled from their homes by new economic dynamics,” the official shared.

How will they regulate Airbnb?

The general director of Digital Government of the Digital Agency for Public Innovation (ADIP), Eduardo Clark García, explained that the Reform to the Tourism Law of the Federal District seeks to comply with nine points that regulate the operation of platforms such as Airbnb.

The first of them is to begin to regulate the sector of supply of residential properties for tourist use through digital sites, in order to differentiate them from hotels and motels, and develop specific regulations.

Likewise, it is intended to create a registry of hosts – who offer this service – and a registry of digital platforms operating in Mexico City, which must provide semi-annual reports with occupancy statistics.

To register, service providers must provide their personal data; prove ownership or legal possession of the property; prove payment of site contributions; sign a letter where they commit, under protest, to maintain security measures; and specify the platforms where they offer it.

The sixth point consists of encouraging the supply of rental housing in the medium and long term, to give rise to the next step, which aims to avoid the massive commercialization of properties to be offered on digital platforms, in order to avoid the displacement of inhabitants to other zones.

“The registration of more than three houses, apartments or rooms per host will not be allowed in the registry. What we are looking for is that there are no hosts who buy 30, 40, 50 housing units and put them on this market. In this way, avoiding the massive commercialization of accommodation units for residential use, but guaranteeing the right of the owners to receive some additional income,” said the official.

In this sense, the director of Public Affairs for Airbnb Mexico, Sebastián Colín Ávila, highlighted the collaborative work between the private industry and the government to develop this reform.

“We recognize the head of Government, Martí Batres, for the openness, for the consideration of adding the platforms, in this case Airbnb, in this collaboration process, in this process of advancing in the worktables, together with other public and private sector actors, around a regulatory process that will be under discussion in the City Congress,” he expressed.

According to data from Inside Airbnb, this platform has nearly 26,000 spaces registered in Mexico City.

Source: El Economista