Airbnb Threats To The Legal Environment

With Airbnb, people can rent a private/shared room, a flat or even an entire house all around the year. They earn a lot of money from areas that are situated in popular tourist attractions, which is recently resulting in property owners to back off from long term rental market and move toward buying those property to get into Airbnb market. Barcelona, New York and Amsterdam are some of the cities which have already started strictly controlling or even banning areas in which Airbnb can operate. This situation is a long term threat to Australian rentals because it results in neighbourhood fragmentation and displacement of long term rentals. Census of 2016 found that 11.2% of Australian houses were empty on the night of Census. This is resulting in decreased supply and increased price. It is assumed that foreign investors are a major cause for decreased supply and Australian government counter attacked by making the rule that property (only near inner and middle suburbs) of foreign investor will be taxed if those remain empty for more than six months. Government thinks that this new tax rule will
The 60% council tax of Paris, 15% tax of Vancouver and the decision of Australian government to impose tax if property remains empty for more than six month are example of legal environment factor affecting Airbnb which has been imposed by government to protect domestic rental markets. Moreover, Australia is facing neighbourhood fragmentation, displacement of long term rentals, decreased supply and increased price of houses which they are blaming on Airbnb. This is another example of economic environment factor affecting Airbnb. However, the competitive environment factor of Airbnb has positive signs near Western Australia because government is welcoming foreign investors on that area due to its low land value and declining tax