4 California Hotel & Lodging Association summer 2015 Competition in the industry helps drive innovation and creates new models in how hotels can better serve their guests. THe HOTeL INDusTry Is seeING an upturn in lodging demand as the economy continues to improve. More and more, travelers are turning to the short-term online rental marketplace to fulfill a limited demand to meet their needs. it is important to note that the lodging industry does not shy away from competition with the emerging short-term online rental market. Competition in the industry helps drive innovation and creates new models in how hotels can better serve their guests. The hotel and lodging industry is one of the largest job creators in the state and is responsible for generating billions of dollars in state and local tax revenue that is used to fund public safety, public transportation and other vital services to our state and local communities. In competing with shortterm rental platforms, we simply want a level playing field that will allow our industry to compete without facing a competitive disadvantage. Short-term rental platforms and their hosts want to be treated like hotels, but when it comes to paying the necessary taxes and following the same rules and regulations that are subject to hotels, these short-term rental platforms have opposed giving local governments the tools needed to enforce compliance with local tax and safety ordinances. These platforms want you to believe that the bulk of their business is struggling families renting out a spare bedroom to make ends-meet; however, this is not true. reports have shown that commercial users who own multiple units account for about six percent of the hosts but generate about 37 percent of all host revenue. These commercial users are essentially operating hotels without following any of the same rules as hotels. Over the next year, ch&la will be working closely with the state legislature and we will be monitoring developments in cities and counties throughout the state to make sure that short-term rental platforms are following the rules and paying the required taxes that all hotels are subject to. Lynn S. Mohrfeld, CAE, IOM President & ceO Message froM the President & ceo
CHLA Lodging News Summer 2015
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