What
governments
need
to know

What
governments
need
to know

The industry is so new, and growing and changing so fast, that it’s difficult for cities, provinces, and countries to stay on top of it. However, the most sensible regulatory approach embraces change rather than fights against it. Regulators have a difficult but essential role to play in coming up with a policy response that strikes a fine and fair balance between stakeholder needs (host, guests, communities, platforms, hoteliers) and optimizing the benefits this unique business segment has to bring.

Local host rentals bring outsized economic benefits

Local host rentals bring

outsized economic benefits

The local host rental ecosystem is a complex one with multiple stakeholders, each having diverging interests. The three main stakeholders – guests, hosts, and local communities – have distinct needs which can addressed with nuanced policy-making.

Stakeholder needs and regulatory priorities

After we have identified the respective interests of the various stakeholders, how should regulators go about crafting regulatory responses? What principles are there to guide the drafting of specific regulations? In this vein, we propose four recommendations that should under gird the drafting process

Four policy recommendations for regulators

Four policy recommendations

for regulators

Regulators play an incredibly important role in the local host rental ecosystem. They have the difficult job of managing negative externalities resulting from local host rentals while allowing them enough wiggle room to express their economic and social benefits. This is a difficult juggling exercise which requires clear thinking, timely feedback, and a risk-tolerant attitude.

Key Lessons for Regulators