/ Interview with Ramon Estalella, Chair of the HOTREC Task Force on Shadow Hospitality Economy

Mr. Ramón Estalella Halffter is Secretary General of CEHAT (Confederación Española de Hoteles y Alojamientos Turísticos), the Spanish Confederation representing the interests of hotels and tourist accommodation establishments. Mr. Estalella is also a member of HOTREC Executive Committee and the Chair of the HOTREC Task Force on Shadow Hospitality Economy, a permanent working group that has been set-up within HOTREC in order to deal with the issue of so-called "sharing economy”. HOTREC asked Ramón Estalella, as Chair of this important Task Force, to share to its views on how shadow hospitality economy is impacting the tourism sector. 1. As chair of the HOTREC Task Force on shadow hospitality economy what are your views on the impact of the sharing/shadow economy on society?

Our first reflection/thoughts should focus on trying to understand what sharing economy is in order not to be mistaken about what it really means. It is clear that collaborative economy has a number of advantages and a part of the public demands this form of travel. However, if it is not regulated in an efficient manner the collaborative economy negatively impacts on the regular economy, the loss of consumer rights, the loss of jobs etc. It also has a serious impact on the local residents as the rising prices of the apartments (both for rental and sale) in the city centres, can cause population displacement as well as a decrease on the quality of the destination.

2. On 25 June 2015, a study elaborated by EXCELTUR and Ernst & Young on the impact of the peer to peer platforms/rental platforms on the tourism sector in Spain was presented. Could you please tell us a bit about the main findings of the study?

The main findings of the study are the following:

1. Collaborative economy is no longer a marginal activity of a homeowner, it is becoming a permanent economic activity;
2. The supply of tourist accommodation through these peer-to-peer platforms has grown so much that it is currently exceeding the regulated accommodation units;
3. This type of tourist accommodation provision is concentrated in areas with high tourism demand, it is not creating a new type of demand;
4. The majority of apartments that are rented through these peer-to-peer platforms are second homes
5. The type of tourist is the same as the one who uses the formal offer;
6. The reason for selecting this type of apartment is the price and not the coexistence with locals/local community;
7. It is impacting on the price of the housing (both rental and sale) in the city centres, that is rising every year;
8. The daily contribution to the city of the tourists choosing accommodation through these rental platforms, is significantly lower than the contribution of the tourists using regulated accommodation;
9. The price advantage is based on the fact that this housing does not have to comply with the high standards and regulations that the formal tourism offer has to comply with;
10. A dramatic increase in the shadow economy occurs.

3. What are the key steps taken by HOTREC to address this new and challenging issue (e.g. development of a white paper, communication strategy, etc.)

First of all we must all agree and reach consensus on the definition of this new form of accommodation and the way it should be treated by governments and Public Administrations. Then, we should be able to sensitize the society about the negative impacts of it and how to avoid these negative consequences within the rules of competition, progress and innovation. And finally, we need to reinforce the idea that the formal offer is not obsolete and is capable of serving all types of travellers while avoiding the shadow economy, creating jobs and producing quality employment.

In order to promote the hospitality industry's vision vis a vis the so called sharing economy, HOTREC Members agreed at our last meeting of 30 June 2015, to develop a white paper containing the key minimum regulatory aspects (such as registration of the activity, liability of the platforms, compliance of Schengen acquis) that in our opinion should also apply to the sharing economy operations

HOTREC Strategy paper will be issued by the end of September together with a common communication plan.

4. At the occasion of last Shadow Hospitality TF meeting which took place on June 30th in Brussels, HOTREC invited a representative of Airbnb for an exchange of views. Could you please sum up its main outcomes and tell us how you envision further developments if any?

I think it was a great meeting where each part presented its demands and the desire to find connection points and consensus. Airbnb representatives are well aware of our demands, as we are aware of theirs. We are in time to reach agreements, and they need as we do, stability aspects for the future and a regulatory framework which no doubt our Task Force would be able to find. I am pretty sure that we will find connecting points in the future, as this type of accommodation provision should be treated as a new type of lodging category different from camping’s, hotels, resorts, rural accommodation.