Tourism goes after unlicensed rentals

P.E.I.'s Tourism Department continues its crackdown on unlicensed accommodations operators.

Stiff fines and sting operations were launched early last year, sniffing out operators renting accommodations online without the proper papers.

Don Cudmore, executive director of the Tourism Industry Association of P.E.I., said booking through sites such as VRBO and AirBNB is becoming increasingly popular on P.E.I. These sites warn people listing accommodationsthat they need to abide by local regulations, but not all the listings are licensed.

"The reality is that those that are renting and accepting dollars are breaking the law," said Cudmore.

"They are not paying taxes, they are not contributing to society on Prince Edward Island. They're not paying for hospital beds, schools, roads or anything like that. Submission of the taxes is an important part of the process."

A similar crackdown, which just started in Quebec, has been getting a lot of attention.

TAIPEI worked with government on the new rules. Unlicensed operators now face a $1,000 fine for the first day, and $2,000 a day after that.

Year-round licence requirements to rent a four-unit accommodation on P.E.I. cost about $750 with tax.