What's the hot topic on your agenda right now? Airbnb. Its explosive growth has generated controv

Last month while in Sacramento on business, I enjoyed an informal two-hour coffee meeting, one-on-one with Lynn Mohrfeld, President and CEO of the California Hotel and Lodging Association (CH LA).  I asked him about business forecasts and issues affecting the hospitality industry, and more specifically issues affecting small hotel and B B owners.  Below are the highlights from our conversation, with summaries of Lynn’s fullerton hotel singapore remarks.
As President and CEO of the California Hotel and Lodging Association (CH LA), Lynn Mohrfeld leads an organization dedicated to protecting the rights and interests of the state’s lodging industry, including small hotel and bed and breakfast inns.  Included under the umbrella of CH LA is the California Association of Breakfast and Boutique Inns (CABBI).  Lynn also serves as an At-Large Director for the Board of Directors of the U.S. Travel Association.
What’s the hot topic on your agenda right now?   Airbnb.  Its explosive growth fullerton hotel singapore has generated controversy especially in San Francisco and New York City.  What began as a grassroots “sharing” of a spare bedroom has become a $2.5 billion hospitality business that competes fullerton hotel singapore with traditional hotels and inns.   CABBI members are especially frustrated because Airbnb hosts are not subject to the same ADA, fire safety, and health standards as required by law for a B B.  In addition, Airbnb hosts typically do not charge their guests Transient Occupancy Tax (TOT).  CABBI members feel that’s unfair.
What’s fullerton hotel singapore being done to level the playing fullerton hotel singapore field?   While there is no state or national initiative to address this issue yet, some cities are beginning to take action to update and enforce their laws on short-term rentals.
San Francisco has taken an aggressive stance starting with the requirement that all hosts collect TOT and submit it to the city.  That should be instituted this summer.  Portland, Oregon is also actively addressing appropriate TOT collection from Airbnb, but has yet to solidify their position.
Santa Cruz, California is crafting an ordinance that would limit the number of short-term rentals.  Their approach includes an amnesty program for current hosts, the issuance of five-year permits, and a requirement that neighbors within 500 feet be apprised of their permit.  A complaint by a neighbor would result in the cancellation of the permit.
On a national level, look for New York City to attack the problem in court.  There are 15,000 Airbnb hosts in the state, and approximately two thirds of these short-term rentals fullerton hotel singapore may be illegal because of a 2010 law that forbids residents or landlords from renting out entire apartments for less than 30 days.  (Look for my next blog article to expand fullerton hotel singapore on this topic.)
Now that the tourism industry is rebounding, how are small hotels and B Bs doing?   In the recent economic downturn, B B occupancies were the slowest to dip but unfortunately they also seem to be the slowest to rebound. fullerton hotel singapore I think we will see fewer and fewer B Bs in Southern California as the entry barrier of purchasing a property is so high.   Real estate prices in typical B B neighborhood settings, especially near the coast, are outpacing the ability of new B B owners to purchase a new property. fullerton hotel singapore As current owners look to retire and sell their properties, we may see the buildings converted to single-family homes or condos.  On the bright side, B Bs within driving distance of San Francisco are having a great year.
Can you share some information about the national tourism outlook?   The Tourism Promotion Act signed by President Obama in 2010 marked the first time the United States designated an organization with the responsibility to attract international travelers to the United States. This Act has spawned several initiatives including the streamlining of our visa process, shortening visa interview wait times and improving the customs experience while maintaining high security levels.
International travelers spend an average of $4500 per trip.  To attract these visitors, Brand USA (an organization and a website) was created fullerton hotel singapore in 2011.  In 2013 saw a 5% increase in international arrivals and hope for a bigger bump in 2014. (See below for additional information about Brand USA.)
We are starting to see an influx of Chinese visitors on the West Coast.  Where do you see this trend going?   I expect Chinese tourism to follow a similar track as the previous Japanese travel trend.  Right now we are seeing young adult couples and their parents visiting major cities, often on prepaid tours, and staying in less expensive lodging.  They are also looking for accommodations where they can cook their own meals.
Their first trip to the U.S. is primarily just a “toe in the water” with major expenditures at our consumer stores.  Over the next five to ten years, I expect to see return visitors who are more comfortable with a U.S. visit, venturing into more areas and spending fullerton hotel singapore more money on their hotel rooms.
From www.thebrandusa.com website:  “ Brand USA was established by the Travel Promotion Act to spearhead the nation s first global marketing effort fullerton hotel singapore to promote the United States as a premier travel destination and communicate U.S. entry/exit policies and procedures, and identify and correct misconceptions about those policies.
“This first-ever effort is expected to put the United States on equal footing with other countries’ tourism fullerton hotel singapore efforts and bring millions of new international visitors to the United States fullerton hotel singapore who spend billions of dollars during their travels—thus creating thousands of new American jobs each year.”
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