Don’t forget the little guys in the Airbnb debate as Hong Kong weighs pros and cons of sharing economy

Bernard Chan says there are myriad interest groups to consider in the discussion about short-term rentals. Besides hotels, guest houses and Airbnb, there are also the thousands of users and small businesses that benefit, as well as residents whose lives are disrupted

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A tourist checks out Airbnbs on his mobile in Causeway Bay. Without flat-sharing platforms providing accommodation in Hong Kong, would some tourists have gone elsewhere? Photo: Martin Chan

Published: 7:30am, 14 Sep 2018Updated: 7:36am, 14 Sep 2018

In July, the government introduced a bill into the Legislative Council to amend the law on hotels and guest houses, to allow tougher action and penalties for unlicensed establishments. The amendment is essentially aimed at short-term rentals of private homes – or, in plain language, Airbnbs and similar flat-sharing platforms.

As with ride-hailing app Uber, the Airbnb model is disruptive and controversial. It is hugely popular among parts of the community, notably service providers and users. But other groups criticise it for taking business from existing licensed players, or for having a negative effect on society as a whole.

Different cities around the world are trying to find ways to respond. This is complex because it is not simply about one interest group against another. There are several distinct groups with opposing or overlapping interests on both sides of the debate. The loudest critics of the Airbnb model are the existing hotel and guest house operators, who have formed an organised and influential lobby.

Their main objection is, of course, that flat-sharing takes customers away from their own businesses. They believe that the competition is unfair, as unlicensed operators do not have to pay the costs of running a legitimate business, like complying with regulatory measures. They point out that unlicensed accommodation could pose risks to users owing to the lack of fire and hygiene inspections.