Memorandum STR-Belgium – Integration of Short-Term Rental into a Competitive, Innovative and Sustainable Brussels Tourism Market

During this phase of negotiations for the formation of a regional government and on the eve of the municipal elections of October 13, STR-Belgium once again recalls the stakes and the Association’s recommendations to be translated concretely into an action plan to be validated and implemented by the next Government of the Brussels-Capital Region.

For the record, the future regulatory framework for tourist accommodation, translated into a draft ordinance published in the Belgian Official Gazette on February 7, 2024, was the subject of numerous relevant interventions from all opposition parties, but also from the majority, during the Minister-President’s forceful passage through Parliament earlier this year. It is important to recall the debriefings of the parliamentary session of January 15 and the plenary session of January 26 in order to clearly understand the glaring lack of answers and justifications regarding the harmful choices that the Minister-President decided to make to the detriment of the general interest. As a reminder, the short-term rental issue is a complex topic with multiple facets, and it is regrettable to propose a regulation that resembles a ban under the cover of an electoral and scientifically unfounded argument regarding the real impact of this activity on the housing crisis. For all useful purposes, STR-Belgium summarized the current and future regulations on one page in its press release of December 18, 2023.

Rather than considering regulation from the perspective of constraints, STR-Belgium encourages stakeholders of the new legislature to reason in terms of opportunities and to consider regulation of the sector through a holistic approach. Operational research and multi-criteria decision support, in particular, should be valuable tools for the next government in identifying an optimal solution serving the general interest. It is within this framework that STR-Belgium proposed in January 2024 a “work-in-progress” document materialized by an impact analysis for the different groups of Brussels voters, intended to foster objective reflection free from opportunistic lobbying, in addition to an open letter to the citizens of the Brussels-Capital Region published at the end of 2023.

Alongside this analytical work and the legal actions underway and forthcoming — notably before the Constitutional Court to challenge the new ordinance of February 1, 2024 — STR-Belgium wishes to emphasize the key elements that should guide the reflection of the next Government of the Brussels-Capital Region, in close collaboration with the short-term rental sector:

The short-term rental sector provides solutions to major urban policy challenges (housing, building energy performance and… tourism attractivenessToggle Sidebar)!
Often criticized and portrayed as a scapegoat responsible for the housing crisis, the short-term rental sector actually provides solutions that the Brussels-Capital Region Government could deploy, in partnership with the sector, to create housing and accelerate building energy renovation. Moreover, the sector contributes to the diversity of tourist accommodation supply and therefore to the attractiveness of the destination for a range of visitor categories.

Market demand!
It is absolutely impossible to ignore the evolution of demand for short-term rentals, which meet needs complementary to hotels and are strongly favored by European and global citizens, as evidenced by Eurostat figures.

Overtourism, really?!
At the same time, it is too easy, inaccurate, and harmful to directly invoke the risk of overtourism to justify the Brussels Government’s near-prohibition policy on short-term rentals across its entire territory. Merchants in certain neighborhoods — even in the Pentagon — will say it themselves: after a certain hour, Brussels becomes a dead city… Moreover, are Brussels authorities not themselves suffering from insufficient visitor numbers — for example the attendance deficit of Belgian Beer World, which illustrates the challenges faced by businesses in the pedestrian zone and other central areas? A Region whose financial rating has recently been downgraded must certainly take care of its tourism and optimize the revenues it generates, while preserving the general interest. Brussels must not be confused with Venice, Paris or Barcelona — the right balance must be sought.

Economic contribution of the sector!
The policy proposed by the outgoing Brussels Government through its ordinance will destroy the short-term rental sector, which will be detrimental to the economy of the Brussels-Capital Region, particularly the restaurant sector whose customers partly come from this accommodation segment. At a time when employment rates will be a major concern for the next government, the direct and indirect jobs generated by the sector deserve particular attention.

Property Manager: a key yet misunderstood role!
It is essential to understand that short-term rental professionals are not necessarily investors. The role of property manager — widely present across the world — still appears unknown to many political and academic stakeholders in Brussels. A property manager manages properties for multiple small owners who invested their savings in a second residence and simply wish to optimize management and returns. A clear definition and understanding of ecosystem stakeholders is essential to avoid ideological misconceptions.

Recognition and “professionalization” of the sector!
Current policies have led to a record level of informality: more than 95% of the market is currently underground. Is this really how the market will be cleaned up — by making misleading promises to hotel sector voters or citizens affected by noise nuisances? Why not establish a regulatory framework allowing professional activity alongside private actors, imposing quality labels and state-of-the-art solutions (e.g., smart noise monitoring devices)? Everyone would benefit. Any prohibition policy is doomed to fail — see the case of New York.

Quota mechanisms: the effective regulatory solution!
Scientifically determined quota mechanisms for short-term rentals constitute the only effective regulation tool for the professional segment. Owner-level quotas could guarantee the sustainability of property management businesses. Contrary to claims made by the outgoing Minister-President, quotas are implementable and indirectly framed by Article 12 of the EU Services Directive. They could also include incentives to develop neighborhoods, support horeca sectors, or achieve ambitious energy renovation targets. The overnight stay — not the accommodation unit — should be the measurement unit when defining supply-demand adequacy and quotas.

Essential update of urban planning tools!
Existing and obsolete urban planning tools must be revised to fully integrate the short-term rental component. Updated granularity of urban functions is essential, and this should be incorporated into the ongoing PRAS revision. This revision is closely linked to the quota mechanism described above.

Last but not least: the short-term rental sector is not responsible for the housing crisis!
The Brussels Studies Institute clearly states that the “Airbnb effect” is far from uniform across the Region. An estimated 2,450 dwellings were withdrawn from the traditional housing market — but what does this represent compared to approximately 60,000 households waiting for social housing? Short-term rentals must stop being used as a scapegoat. OECD findings emphasize increasing affordable housing supply through planning reform and permit streamlining — not banning short-term rentals. Furthermore, proper quantification of vacant and abandoned housing (estimates range from 4,500 to 20,000 in Brussels) is essential to objectively address the issue.

To develop a scientifically grounded, robust and sustainable solution, STR-Belgium advocates the creation of a multidisciplinary task force bringing together expertise in economics, tourism, and urban planning. Timelines of ongoing policy processes should be synchronized, and it appears appropriate to define a transitional solution (e.g., a moratorium) while aligning implementation of the new ordinance (amended politically and/or legally) with the EU regulatory framework scheduled for May 20, 2026 and the PRAS revision expected around the same period.

STR-Belgium stands ready to work with the next Brussels Government to co-construct a regulatory policy for the short-term rental sector that ensures a competitive, innovative and sustainable tourism market in Brussels while preserving the general interest.