The Short-Term Tourism Lettings Bill (STTL) has been mired in controversy since its announcement
There was almost unanimous agreement by TDs at the Joint Oireachtas Committee on Enterprise, Employment and Tourism who met recently to discuss the government’s forthcoming Short-Term Tourism Lettings Bill (STTL).
A Controversial Proposal Linked to Ireland’s Housing Crisis
The Bill, which has been mired in controversy since its announcement by former Tourism Minister Catherine Martin several years ago, has been mooted by some as the solution to Ireland’s housing crisis, with the then Minister claiming it could free up over 10000 properties that would become available for long-term rentals.
EU Directive Mandates Registration for Short-Term Lettings
The controversy surrounds Ireland’s unilateral decision to couple a planning requirement to an EU Directive that comes into force on May 20th requiring all EU states to have a Register of all property owners offering short-term rentals (less than 21 days). It will be mandatory to have a registration number in order to offer a property for a short-term rental after May 20th.
ISCF Backs Register but Challenges Data
From the outset, the Irish Self Catering Federation (ISCF) has always stated its support for a register. To date there is no reliable data on the self-catering sector. Working alongside the Dept of Housing, Fáilte Ireland admitted it has used data scraping from the three main Online Travel Agents (OTS’s) to produce figures for properties it considered would be able to be returned to the long-term rental market. This was clearly highly inaccurate, ignoring the vast numbers of self-catering who did not use the OTA’s for marketing purposes.
Significantly it did not ask property owners if they would return their properties to the longterm rental market if legislation were to stop them offering short-term rentals.
The ISCF, however, did ask this question. 90% of the respondents told the ISCF that they would NOT return their properties to the long-term rental market.
Ignoring this evidence, the government pushed ahead with its plans to force property owners to be planning compliant in order to go on the register. No planning permission, no registration number. No registration number, no business.
Tourism Stakeholders Warn of Devastating Impact
Ar a recent meeting in February, the Joint Oireachtas Committee on Enterprise, Employment and Tourism heard from stakeholders whose business are all under threat of closure from this legislation. Representatives from Historic Houses of Ireland, the OTA booking.com and the ISCF all explained the devastating effect this legislation could have on their industry.
We are not Airbnb, who own no property. We are the owners of property we rent directly or through local agents’ said Maire Ni Mhurchú Ceo ISCF.
Thomas Emmett from Historic Houses of Ireland explained the dependence on offering short-term rentals to the historic houses sector.
“Many of the historic houses throughout Ireland depend on the revenue from short-term rentals in order simply to maintain these important monuments. Without this revenue it is likely many will fall into dereliction”
Fiona MacConnacher from booking.com expressed her company’s support for the register but highlighted the impossible situation facing property owners when the planning guidelines for this legislation have yet to be published. This was a sentiment that dominated the discussion with a large group of TD’s and Senators in attendance.
Senator Linda Nelson Murray put it succinctly.
“You have 86 days to become planning compliant, but you still don’t know what’s happening”
Rose Conway Walsh TD from Mayo echoed this sentiment saying she couldn’t believe that there was still no planning guidance.
Speakers to give details of their planning concerns by James o Connor TD, Chair of the Committee. These included high cost of compliance, at today’s standards rather than when built, and would close most existing self-catering businesses.
‘Planning is not fit for purpose’ he stated
Most of the Committee Members expressed the same sense of disbelief that property owners are supposed to be planning compliant by May 20th and yet no planning guidelines have been published.
ISCF Chairman Proposes Some Solutions
ISCF Chairman Derek Keogh proposed some solutions claiming that exemptions from planning requirement would be necessary in order for property owners to register and thus stay in business after May 20th. These included:
- An exemption from any planning requirement for change of use for tourism accommodation providers in towns with a population under 20,000
- An exemption from any planning requirement for change of use for operators who have been in business for 7 years or more.
- An exemption from any planning requirement for change of use for any property with an NQAF certification. (National Quality Assurance Framework)
- An exemption from any planning requirement for change of use for an STR (short-term rental) on the same folio as your principal residence.
- An exemption for Farming Diversification schemes and thatched cottages.
Senator Mary Fitzpatrick was impressed.“I like your exemptions” she declared.
Other TDs expressed their support for the sector.
“Rural tourism shouldn’t suffer because of the housing crisis” said Brian Brennan TD for Wicklow.
Wexford Senator Aubrey McCarthy went further “You guys are going to be the fall guys here. We just have’t built enough houses”
Independent Michael Collins TD concurred. “This will wipe our rural tourism”.
The Committee addressed the stakeholders for their thoughts. Senator Noel O’Donovan from West Cork reminded the Committee that tourism is worth €6b a year to the economy and asked ISCF CEO Máire ni Mhurchu for her thoughts.
“We need to uncouple the register from any planning requirement in order for property owners to get on the register by May 20th.”
Head of Public Affairs for booking.com, Fiona McConnacher agreed.
“We believe that it should be possible for property owners to register without planning for now. This will allow a period of time [2 years] to collect accurate data on the number and composition of self-catering properties. The government will then have accurate data on which base further legislation”.
A sentiment widely acknowledged by those present, says the ISCF
