For the temporary housing rental platform, excessively restrictive short-stay regulations can exacerbate the problems of cities.
Following the approval by the Congress of Mexico City of the initiative that restricts 50% of the nights of the year to offering accommodation to tourists through temporary housing platforms, Airbnb described this measure as " unjustified and anti-competitive that will end up affecting thousands of families and hosts who live in the capital of the country."
"Through this activity, many find a way to generate income that today strengthens their family economy and that of their community. 50% of hosts in Mexico City are women and 12% are over 60 years old . In addition, 78% of hosts have indicated that this is not their main activity, meaning that they use it to reinforce other income . Approximately 80% of hosts in Mexico City only have one space on the platform," Airbnb said in a statement .
For the rental platform, this new reform, published on October 3, comes as a surprise, just 6 months after the Tourism Law was comprehensively reformed, which, unlike the recent reform, included the participation of authorities, hosts, neighbors, hotel associations and digital platforms.
"It has been proven that regulations seeking to limit short stays in various cities around the world have not been successful in reducing rent prices or increasing housing availability. On the contrary, they have led to a negative impact on local economic performance, the disempowerment of small entrepreneurs, increased prices for traditional accommodation and long-term rentals, and the creation or increase of informality," he said.
The company cited as an example the case of New York, where one year after the restrictive regulation the average price of hotels rose 7.4% in the last 12 months ending in July 2024. "These prices negatively affect the majority of tourists who want to travel to New York and consequently the businesses that live off this activity. Similarly, in the case of rents, these rose 3.4% during the first 11 months of application of this regulation , according to StreetEasy , which suggests that other factors are driving up long-term rental prices," Airbnb said.
Economic shock
According to Airbnb figures, travelers who booked a space through the platform in Mexico City spent more than 15 billion pesos (more than US$ 775 billion), including direct spending on accommodation and services, as well as indirect and induced spending. This guest spending on Airbnb supported more than 63,000 jobs in the Mexican capital.
"Airbnb shared spaces are an extra source of income for many residents of Mexico City. This is a positive sign since sharing spaces on Airbnb has become an economic lifeline for many," he said.
According to data from the platform, approximately 53% of Airbnb Hosts in Mexico City said that in the last year, the money they have earned helped them stay in their home . Likewise, nearly 74% have used the money to cover necessities such as food and other expenses that have become more expensive than they used to be .
