At least five hotels have closed in Guanajuato and San Miguel de Allende due to low occupancy caused by unfair competition from accommodation platforms like Airbnb, warned Eduardo Bujaidar, president of the León Hotel and Motel Association.
“There are already some hotels that have closed, and they are also legally binding… five or six that I know have stopped operating as hotels,” stated Bujaidar.
He also pointed out that this situation is due to the lack of regulation of digital platforms that offer accommodation without complying with safety regulations, tax payments, or minimum industry standards.
The businessman explained that they have held meetings with legislators from different factions of the local Congress and assured that there is consensus among legislators to approve the modifications.
“Regulations will be created in the state, with their implementing regulations and everything.”
He even asserted that the Airbnb platform itself is fully prepared to regulate itself and contribute its corresponding taxes.
For the hotel representative, one of the biggest problems is the insecurity that visitors face when staying in unregulated places.
“It’s not safe at all… they’re not being regulated by Civil Protection or any other authority, and that’s serious,” he said.
He also warned that the poor experience for tourists could affect the state’s image.
Eduardo Bujaidar added that the lack of oversight has led to local youth using these spaces for unsupervised parties.
“This is a latent danger that will explode at some point,” he emphasized.
Although he doesn’t foresee massive hotel closures for now, he did warn that if the situation continues, there could be staff cuts and further economic impacts on the sector.
“It’s costing us a lot of work to sustain it… if this continues, in two or three months we could be talking about staff cuts.”
Finally, he reiterated that effective legislation will allow for a level playing field for the tourism sector.
“The important thing here is that we’re on a level playing field,” he concluded.
Source: zonafranco
