CEBU, Philippines – A growing number of unregulated Airbnb rentals is sparking concern among hotel and resort owners in Cebu, a key tourism hub in the central Philippines, as they struggle to reclaim pre-pandemic momentum.
Leading the campaign is the Hotel, Resort, and Restaurant Association of Cebu (HRRAC), which argues that the online platform’s hosts benefit from lax regulation and minimal tax obligations, creating an uneven playing field.
HRRAC President Alfred Reyes said the association has formally submitted a position paper to the Department of Tourism (DOT), urging the agency to establish clear guidelines for Airbnb operators.
The group also pressed the Bureau of Internal Revenue (BIR) to step in and ensure tax compliance among those using the platform, which is known for its short-term lodging services—from vacation homes to apartment rentals.
“Airbnb operators must comply with the same regulatory and tax frameworks as hotels,” Reyes, also the general manager of bai Hotel, told reporters during an interview. “Without this, we face unfair competition that undermines our sector’s recovery.”
The hospitality industry in Cebu has been striving to rebound from the impact of COVID-19, which shuttered many establishments and dramatically slowed tourist arrivals.
But as hotels and resorts reopen their doors, operators say they are losing customers to Airbnb listings that can charge lower rates — often attributed to the lack of licensing fees and tax obligations.
“Unlike hotels and resorts, Airbnb hosts can undercut prices substantially because they don’t pay taxes,” Reyes said, adding that the playing field would be “far more balanced” if both camps operated under the same rules.
Although the DOT announced plans in 2019 to regulate Airbnb, concrete guidelines have yet to materialize. Reyes said HRRAC intends to pursue the issue not only with the DOT and BIR but also with the House of Representatives.
“We are planning to bring this to Congress,” Reyes said, drawing parallels to the way ride-hailing apps, such as Grab, are regulated by the Land Transportation Franchising and Regulatory Board (LTFRB).
“Airbnb should receive similar regulatory attention,” he added.
In other parts of the world, including Japan, Singapore, and select U.S. states, Airbnb operates under established frameworks that address taxation, safety standards, and quality controls.
Reyes said adopting a similar model in the Philippines could create a “healthy and conducive business environment for all accommodation providers.”
While acknowledging Airbnb’s economic contributions, HRRAC maintains that proper oversight is essential.
Reyes contends that if regulatory measures are not introduced soon, the competitive imbalance between traditional hotels and emerging lodging platforms could intensify, potentially hampering the industry’s post-pandemic recovery.
The DOT has signaled that formal regulations are still on the agenda, but no timeline has been provided for when they might be enacted.
Business News Asia
