AirB&B Regulation in the DR

[Squat]

AirBnB should be outlawed, and all its lookalikes. It's killing Las Terrenas. Period.

 

[NanSanPedro]

AirBnB should be outlawed, and all its lookalikes. It's killing Las Terrenas. Period.

How so? Please explain.

 

[XQT]

Right, let's just do the math shall we. You pay a hotel US$ 100 for a night. The hotel has to pay US$ 14.06 of that on ITBIS and US$ 10 on Propina Legal. The hotel typically pays the travel agency a commission of 23% of the ex-tax amount, which comes to US$ 17.46. And the hotel pays a credit card processing company typically 5% of the total amount, so that's another US$ 5. So just about half of the US$ 100 you pay has immediately gone, the hotel doesn't see any of this. And with the US$ 53 left, they have to provide two people with breakfast - and I don't know if you've noticed how expensive food is in supermarkets these days. Let's say it costs them US$ 6 for the food cost per person, including the coffee, juice, eggs, bacon, bread, fruit. So now we're down to US$ 41.

And with that the hotel has to a) pay for the air-conditioning which the guests usually run 24/7, b) pay for round-the-clock staffing, normally bilingual staff who cost more, c) pay for the laundry and cleaning costs, d) pay for maintenance, e) pay for insurance and security cameras and everything else they need to do to comply with the law and somehow make a little profit as well.

And now let's compare with an AirBnb that someone who is here on a tourist card has bought, so they are illegally running a business (yes it is illegal to work here or run a business here unless you have residency). Usually they have zero insurance, pay zero tax, (but quite often add the agency commission to the guest and pretends it's a tax), don't comply with any regulations, quite often don't even speak any Spanish. And yes they charge US$ 70 but they stick the whole amount in their pocket. But they do let you bring a puta in, in fact they let 30 kids have a party every night and p'ss off every one of their neighbours and ruin life in condos. And you think they're the good guys?

According to your comments it does not seem to be profitable to run a hotel,
Nor is it good to have private Airb&b rentals as neighbours with 30 kids at a party.
Why would anyone do business in DR, unless they are a Spanish AI hotel chain in PC?

Hotel licensing and tax collection is slick because they are the easiest to collect from.
Nowhere to run, hard to hide.
To licence and collect from private rentals takes much more effort.

Have work, business, income flow outside of the DR, vacation or live here on that income.
Less problems better flow.

Amazing how people from the developed world with education and excellent opportunities,
Think it is beneficial to produce income here.
Generally a bad business plan, or a plan most don't have.

 

[windeguy]

Yes, but it works just the same when a hotel works with AirBnB, the hotel just pays commission to AirBnB rather than Booking.com. For hotels, AirBnB insists that the hotel pays the commission, but for apartments they allow the commission to be charged back to the guest as a "service fee".

Both the Guest AND the Host that use AIRBNB pay fees to Airbnb which are part of the total price.
As far as I know and seen that is the same for all AIRBNB rentals.

Soon Airbnb may force another fee to be paid if the deal with DR DGII goes through. 18% will be quite the thing.

 

[windeguy]

You're talking about what the massive hotels do, and in reality they are not the ones competing with AirBnB as most of their clients come on a package which includes the flight and the room on an all-inclusive. The smaller properties don't have the income to justify setting up complex international payment structures. Obviously you are right to an extent, not all businesses in DR disclose every cent of their income to DGII, honesty is not woven into the fabric of this society.

But the masive hotels are the ones that are forcing the new regulations, AKA The Rainieris no? Or was that assumption some made incorrect?

I do agree that AI's and AIRBNBs are apples and oranges.

 

[windeguy]

AirBnB should be outlawed, and all its lookalikes. It's killing Las Terrenas. Period.

A suggestion for the NY City approach. Ban AIRBNBs to hell for the gentrification. A good strong leftist approach.
Mark up one for that column.