Media Release — Byron’s accommodation fail – 60-day STR stay caps not working
The controversial 60-day stay cap on most short-term rentals in Byron Shire is damaging the region’s visitor economy, reducing employment opportunities and failing in its core objective of increasing affordable and long-term rental supply.
These are among the major findings of a comprehensive new report into the impact of the 60-day stay cap by JWS Research through a mix of in-depth interviews, focus groups and online surveys with 140+ homeowners and community members.
Commissioned by ASTRA, Australia’s peak short-term rental accommodation industry group, the report shows that the 60-day cap introduced last September for most of Byron Shire has not worked and is doing more harm than good. Key findings include:
No rental shift: Byron Shire Council introduced the 60-day stay cap to force short-term rental owners onto the long -term rental market but there has been no shift yet and 95% of those surveyed said they would not move their properties.
Two-class property economy: The 60-day cap has created a two-class property economy with some owners enjoying no restrictions while the majority must abide by the new laws, impacting home values and pre-existing usage rights.
Jobs, incomes hit: Cost of living has already hurt Byron Shire with a decrease in visitor spend reported by local businesses. More than 90% of owners and community say the caps will further harm local businesses and workers.
Accommodation shortage: Most STR owners in the impacted areas say under the new law the only option is to make their properties available during peak periods such as Christmas and Easter, removing the opportunity for their use as key worker or emergency accommodation at other times.
Paying more for less: Fewer accommodation options mean more competition for less properties, resulting in higher prices for tourists visiting Byron Shire. Families are among the hardest hit due to shortage of larger properties.
Event impact: Nine out of ten of those surveyed say events such as the Writer’s Festival, Byron Bay Triathlon, Byron Bay Swim and Byron Bay International Film Festival will be negatively affected.
ASTRA Chairman Yoav Tourel says these findings have national implications and clearly demonstrate that room night caps do not work by unfairly targeting just one section of the accommodation industry without consideration of the overall impact.
“It is now clear the 60-day cap will not work as intended and that no meaningful increase to the long term or affordable market will result from this misguided initiative,” Mr Tourel says.
“Tourism enables Byron’s famous alternative culture. The restaurants, cafes, bars, boutiques and festivals are all at risk if off-peak accommodation is in short supply or only available in exclusive enclaves like Wategos Beach.”
Mr Tourel said the new stay restrictions will negatively impact the incomes of local cleaners, trades and other tourism service providers.
“There is no question the local visitor economy will be hard hit by the 60-day cap–less visitors means less revenue and fewer employment opportunities for local people,” says Mr Tourel.
“We are already hearing that local businesses are hurting with fewer visitors outside peak periods due to cost of living pressures, and this will only make things worse.”
REACTION
Matthew Williamson, President, Byron Bay Chamber of Commerce, says tourism is crucial to the local economy and the 60-day cap is already hurting business.
“We have a number of issues in the local economy and the short-term rental changes have had a role to play in that,” he says. “Capping short-term rentals was doomed to fail, it’s not the problem the council thinks it is.”
He says the root cause of the housing shortage is a lack of supply, which Council needs to unlock through zoning and development initiatives.
Reid Campbell, co-owner Byron Bay Holiday Hire, says the 60-day cap has had a “drastic” impact on the business he runs with his wife, Sharmila Campbell.
“We are absolutely seeing an impact on our business from these restrictions. The drop off since the end of school holidays has been drastic,” he says.
The business used to employ five people over the off-season but that’s been cut back to three, including themselves, and is employing fewer casual staff.
Luke Achterstraaat, CEO, Council of Small Business Organisations Australia, says: “Stay caps stifle the visitor economy and reduce small business opportunities. Small businesses rely on visitors and foot traffic to generate income.”
CAP RESTRICTIONS EXPLAINED:
Byron Shire Council reduced its stay cap from 180-days to 60-days in September last year. It applies to all unhosted STR properties outside two 365-day zones in central Byron Bay and Brunswick Heads. Most short-term rentals are outside these zones.
Contact and interview requests:
Martin Kelly, MJKpr for ASTRA, (0414) 774 978, martinkelly@mjkpr.au
About ASTRA
The Australia & New Zealand Short Term Rental Association (ASTRA) is the peak body representing the short-term residential rental industry in Australia and New Zealand. It has more than 2000 members and represents the interests of hosted and non-hosted residential property owners, operators, managers, agents, property management and software businesses.
