Underground Hotel Ban Hits NY, Paris, Maui
First came a legal action in Maui over complaints from fulltime residents over high volumes of tourists renting in residential complexes.
Next up Paris, where the Mayor headed legislation against transient short term visitors where no term less than 1 year is now allowed.
This also was meant to hit the speculative real estate investment sector where overseas investors had started to eat into the market, often making minimal use of an apartment and then focusing on a rental yield strategy to boost recurring income.
Now the Big Apple New York has outlawed rentals which are 30 days or less. There is an exception with bed and breakfast operations in which the owner is present.
The underground hotel movement or alternative accommodation market has continued to be a global phenomenon often taking advantage of vague legal structures and in many cases becoming direct competitors to hotels which have to pay substantially higher taxes and are often severely regulated.
For now the alternative or gray market is continuing to grow but as Phuket continues to see more competition from residences operating as hotels, expect pressure to come on taxation and regulatory procedures in the not too distant future.