Unlicensed Airbnb listings upsetting Saskatoon bed and breakfast operators

The bed and breakfast industry in Saskatoon says an online service is disrupting their operations and owners aren't impressed.

A group of 10 licensed bed and breakfast operators recently sent a letter to city council. The group wants the cityto do something about people who are unlicensed renting out rooms through Airbnb. The online service connects people wanting to rent a room, apartment or home with those offering such spaces in cities around the world.

The letter claims that local businesses have been affected by the service and that some licensed bed and breakfasts have closed. The letter also claims there are 96 listings of space to rent in Saskatoon on Airbnb and only 15 have a business licence, which the letter notes is a requirement under city bylaws.

"The [bed and breakfast] owners have taken the time, effort and money to operate their Airbnb's legally," the letter said, noting that they also conform to a variety of health and fire safety regulations.

According to the Saskatchewan Bed and Breakfast Association, a city permit (depending on the nature of the operation) can cost over $2,000. Operators also face other requirements before they can open their doors, including acquiring a business licence and registering the business name. Tax collection issues may also arise and operators may need to be registered to collect and submit GST and PST. There are also formal procedures, including inspections, involving public health officials.

"We are established businesses," Darryl Peterson, a member of the association, said. "We pay business licences, we pay taxes, we're fire-regulated, we're health and safety regulated, and we're inspected bi-yearly."

Petersen, along with his partner Lola Poncelet, are among the licensed operators making the complaint to city hall.

They've been operating their Ninth Street Bed and Breakfast for 20 years.

"There are all these hoops that we have to jump [through] as a business, and the sense is that Airbnb is a free ride for folks and they're flying under the radar," Peterson said. "It's not a fair playing field."

Petersen added that established Saskatoon bed and breakfast owners are concerned with the rapid growth in popularity of sites such as Airbnb, which appear to support unregulated operations.

"I know it's had an impact on everybody's business," he said. "The playing field should be a little more equal than it is. It seems like anybody can just throw a basement suite up online and reap the benefits of that."

According to information on the city'swebsite, city councilapproval is required forbed and breakfast homes.

"The standards for bed and breakfast homes are intended to seek a balance between supporting a quiet, safe, and aesthetic residential environment while supporting the aspirations of home based entrepreneurs," the site says.

It was not immediately clear how an Airbnb listing fits with the city's policies and procedures.

"Best case scenario: city council will putit to committee [and] they will put some sort of regulatory body in place tolicense,at least, these B and Bs," said Petersen."Even if they had to buy a $125 business licence, I suspect that would knock a lot of them off of the website."

The group of 10 licensed bed and breakfast operators are set to appear before a city committee Monday to present their concerns.