Bye bye B&Bs? Owner worried about industry's future in N.L. - Action News
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Bye bye B&Bs? Owner worried about industry's future in N.L.

The traditional bed and breakfast industry in Newfoundland and Labrador is feeling the squeeze, but the blame isn't squarely on its hipper counterpart, according to one owner.

Peter Fenwick says it's not just Airbnb affecting the market

Cape St. George Mayor Peter Fenwick, who owns a B&B in the town, says Airbnb isn't entirely to blame for the decline in the traditional industry. (Colleen Connors/CBC)

The traditional bed and breakfast industry in Newfoundland and Labrador is feeling the squeeze, but the blame isn't squarely on its hipper counterpart, according to one owner.

"It's not just Airbnb," says Peter Fenwick, who owns and operates Inn at the Cape and is mayor of Cape St. George.

"Bed and breakfasts in the province over the last four or five years have gotten more difficult and more expensive to start and operate."

B&B burdens

Fenwick said there are several reasons why he believesit has become a less enticing accommodation for people to book.

He points to higher taxes levied on that type of property compared to a regular home.

Fenwick said new regulations that took effect a couple of years ago require owners to have credit card machines, which he estimates at an additional cost of up to $1,000 a year.

Fenwick said new rules that required B&B owners to accept other methods of payment besides cash are intrusive. Those that didn't comply weren't included in the provincial B&B guide. (CBC)

"A lot of B&B's that only took cash, didn't bother to do that," said Fenwick.

"Then the provincial guide, which is about 90% of their advertising, threw them out and they were no longer listed ... and a number of them have gone out of business since them."

He also cites the "divorce" between the provincial B&B association and Hospitality Newfoundland and Labrador (HNL).

Hospitality Newfoundland and Labrador bills itself as "the voice of the provincial tourism industry since the association was founded" in 1983. (Hospitality Newfoundland and Labrador/Facebook)

"Up until about last fall, we were nominally a part of HNL and they were supposed to be doing our advocacy for us," he explained.

"We're no longer directly affiliated with HNL ... and as a result, we now have to sort of handle our own business."

Not so fast, says HNL

But the chair of HNL disagrees with several of Fenwick's arguments.

Dion Finlaysaid Fenwick "has been on the sidelines for years and not privy to the efforts by HNL."

He pointed to Wayne Hallett, who is the B&B representative on HNL's ten-member board of directors.

Dion Finlay, chair of Hospitality Newfoundland Labrador and owner of two bed and breakfasts, says B&Bs have not been forgotten. (Mark Quinn/CBC)

Finlayinsisted the B&B association is not left to fend for itself andhe would know that because he owns two B&Bs himself.

"I have grit in the game," he said.

As for the added costs of electronic payment machines, Finlay makes no apologies.

"Do you travel? Do you use Visa? Most of our clients do. We have to keep up with modern times."

Airbnb easy as 1,2,3

Fenwick said some of the market share is disappearing due to the emergence of Airbnb.

"[It's] frankly much more attractive to just call up the Airbnb people and say, 'Ok, you handle everything, you handle advertising, the rating and all that kind of stuff,'" he said.

That's something Finlay,agrees with, at least somewhat.

A woman looks at a computer screen with Airbnb logo on it.
Peter Fenwick says the home-sharing service Airbnb is "revolutionizing the whole B&B market." (Tina Lovgreen/CBC)

"This sharing society we're seeing, Uber and Airbnb, we're not necessarily against those things ... but how do we regulate it?" he said.

Finlay said there are constant conversations with people in the tourism industry on how to adapt and stay relevant.

But Fenwick is calling for a sit-down with the provincial government.

"You're killing us here. Why don't you start changing some of these regulations?"

With files from St. John's Morning Show