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AIRBNB

France world’s second biggest Airbnb market

Some 3.9 million travellers have used Airbnb to visit France in the past year with the director of Airbnb for France claiming this contributed €2.4 billion to the French economy. But controversy continues to dog the firm.

France world's second biggest Airbnb market
Airbnb's huge growth in France has not been without controversy. Photo: Martin Bureau/AFP

The figures come from a study which was presented at the Airbnb Open conference in Paris, for which 6,000 Airbnb 'hosts' of 110 different nationalities are gathering in the French capital from Thursday to Friday.

The study covers the period from September 2014 to August 2015 and reveals that 3.9 million tourists stayed in France using Airbnb over this period, creating €218 million of revenue for the hosts.

This makes France Airbnb's biggest market after the US.

The accommodation sharing company also says it contributed €2.4 billion to the French economy – a figure calculated by combining revenue earned by Airbnb hosts with 'indirect' contributions to the economy, including holiday spending on meals and sightseeing by those using the home-sharing site.

“When you consider that 83 million people visited France this year, and that 100 million are expected annually by 2010, Airbnb is contributing to the growth of this figure,” said Nicolas Ferrary, Director of Airbnb France, who also claims that Airbnb supports 13,300 jobs in France. 

Paris is the most visited city worldwide for Airbnb users, and France is the company's largest market after the United States. The country currently boasts 200,000 Airbnb rental properties, of which 60,000 are in the Paris region – a huge leap from the 4,000 Parisian Airbnb rentals available in 2012.

The study also told us that France's average Airbnb host is 42 years old and earns €1,970 per year from renting out their home for 26 nights. 

However, the company’s huge growth in France has not been without controversy. Last month, The Local reported on the negative impact of Airbnb on Paris’ luxury hotel industry. Francois Delahaye, managing director of the Plaza Athenee, said he had noticed clients “who reserved an apartment on Airbnb and then came to dine at the Plaza”.

Delahaye estimated that such competition had eaten away 10 to 15 percent of business.

Airbnb has defended itself by saying it is committed to ensuring its hosts pay hotelier tax, and that they are transparent in their earnings, but Paris' town hall believes up to 30,000 furnished second homes may be being rented out illegally in the city, some using sites such as Airbnb.

And this week The Local spoke to a Paris artist who claims Airbnb plagiarized the design of her apartment when creating their San Francisco office space.

Airbnb was created in San Francisco in 2008 and has 2 billion rooms across the world, in 34,000 cities and towns. An estimated 60 million people have used Airbnb since it was first begun. 

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RENTING

Local authorities in France get power to crack down on Airbnb rentals

Authorities in Paris and other French towns will be able to regulate local businesses who wish to rent property on Airbnb, according to a decree published by the French government. 

Local authorities in France get power to crack down on Airbnb rentals
This illustration picture taken on July 24, 2019 in Paris shows the logo of the US online booking homes application Airbnb on the screen of a tablet. (Photo by Martin BUREAU / AFP)

The news was welcomed by authorities in Paris, who have long battled to keep a check on Airbnb and its impact on the rental market. 

On Sunday, the French government published a decree that allows the City of Paris to subject the renting of local businesses to prior authorisation. 

This decree applies to all types of offices, stores or medical offices who may be turned in holiday rentals. 

It aims to allow towns to limit the growth of rentals on Airbnb, “protect the urban environment and preserve the balance between employment, housing, businesses and services on their territory,” says the decree. 

The news was welcomed by authorities in Paris, which has been witnessing “the multiplication of ground floor business premises being transformed into holiday rentals,” said deputy mayor Ian Brossat, who is in charge of housing, in a press release

This decree which comes into effect on July 1st, “will prevent local businesses from being turned into holiday rentals,” Brossat added on Twitter.

The conditions businesses will have to meet in order to get an authorisation still have to be defined said Brossat, according to Le Figaro. But Paris aims to draft these regulations and get them voted by the end of 2021, so they can come into force at the beginning of 2022. 

Other towns allowed to apply the decree are those who have put into effect “the procedure of a registration number for furnished holiday apartments, owners and, subject to contractual stipulations, tenants of local businesses who wish to rent them as furnished holiday apartments.” 

In recent years, Paris city authorities have made tax registration obligatory for apartment owners and have restricted those renting out their primary residence to a maximum of 120 days a year.

Now if owners want to rent a furnished property for less than a year to holidaymakers, they must apply to local authorities for permission to change the registered use of the space.

They are then required to buy a commercial property of an equivalent or bigger size and convert it into housing as compensation. 

Until then, these onerous and time-consuming tasks did not apply to local businesses who only had to fill out a declaration.  

In February, France’s highest court, the Court of Cassation, ruled that regulations introduced to counter the effects of Airbnb and other short-term rental sites on the local property market were “proportionate” and in line with European law.

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