STR-Belgium comments below on the article published in L’Echo on Saturday, November 23. Major legal and economic considerations must complement the issue of the societal impact of short-term rentals, which deserves a far more in-depth and nuanced treatment than the simplistic, binary approach that is systematically applied to it by certain politicians for electoral purposes — and likely under pressure from parts of the hotel lobby.
In any case, this article highlights that the justification and proportionality of the current and future authorisation regimes (in practice, prohibition regimes) appear rather weak.
Let us begin by addressing several statements made in the article:
“Barely 5% of properties have completed the mandatory registration.”
Is this really new? The Brussels Studies Institute already pointed this out in May 2019 in its Evaluation Mission of the Ordinance of 8 May 2014 relating to tourist accommodation — § 4.2 (p.16): “massive under-registration compared to the actual market.” It is surprising that the article does not challenge the reasons behind this “lack of adherence to the rules.” The Regional Administration’s justification in this regard is almost amusing: “In general, regimes that require administrative procedures do not generate much enthusiasm.” An odd justification more than 10 years after the publication of an ordinance that is widely contested. Would it not be more appropriate to examine the root cause of the problem? Meanwhile, a market that is 95% clandestine certainly does not benefit compliant actors (or those striving to be), whether hotels or operators in the “tourist residence” category.
“Our focus is on companies buying entire buildings to operate them as hotels 365 days a year.”
Perhaps Ms Maes is revealing here the reason for the massive under-registration. Because presenting the situation in this way is incorrect. A private individual or micro-enterprise wishing to rent a single apartment for more than 120 days per year would also not obtain registration. And this is precisely where the problem lies: the Ordinance of 8 May 2014 is not a regulatory tool but rather a prohibition tool for any economic activity within the “tourist residence” category — which it nevertheless defines in its own glossary. We refer readers to our numerous articles on this subject, including our press release of December 18, 2023 and the one-page summary of the regulatory situation in the Brussels-Capital Region.
“We are far from the friendly experience, meetings and connections that Airbnb promotes.”
A surprising statement. (Let us again clarify that the sector is not linked to Airbnb, which is merely a listing platform like Booking.com or Expedia, and that short-term rentals existed long before such platforms emerged.) Indeed, short-term rentals are experiencing growing success, as reported by Eurostat. The figures also corroborate those mentioned in the article for the Brussels-Capital Region: in Europe in 2023, there were 719 million overnight stays out of 3 billion across all tourist accommodation types (hotels, aparthotels, short-term rentals, etc.), meaning approximately 24% of global travellers chose short-term rentals rather than hotels. Why then attempt to discredit or minimise the choices of citizens worldwide who opt for an offer that complements hotel accommodation — as also highlighted by the Paris Commercial Court in a judgment delivered on October 21? The tourist residence model existed long before Airbnb and its success has strengthened since Covid.
On the impact on rents and sale prices:
“The data are non-existent”… “The fog is total”… “It cannot go the other way, since housing is removed”… “For quantified impact, we will have to come back later, given the data desert.”
On what basis, then, does the outgoing government justify its policies and prevent economic actors from operating? How can one claim that the general interest is preserved when we know — because the data do exist — the direct and indirect economic impacts of short-term rentals in cities and regions? Has the impact on hotel room prices been evaluated? Has the risk been assessed that destination voters (who do not vote in local elections but whose choices have major economic consequences) may switch destinations with one click and abandon Brussels in favour of more competitive, innovative, and sustainable tourist cities? It is also worth noting that an Ernst & Young study in the United Kingdom shows that the impact of short-term rentals on rent levels or house prices is nil or negligible.
“In other places, the issue is exaggerated. There, Airbnb serves as an easy target in political discourse, pointing to an epiphenomenon instead of addressing the root cause.”
It remains unclear why the Ordinance of 8 May 2014 applies indiscriminately across the entire territory of the 19 municipalities of the Brussels-Capital Region. It is also regrettable that the issue of vacant or abandoned housing was not raised in the article, as it represents a significant potential solution (see PwC study in France), on a completely different scale from short-term rentals and without any economic return. Let us also recall the quota mechanism as a neighbourhood-by-neighbourhood regulatory tool, incomprehensibly dismissed to date by the outgoing government.
Fortunately for our democracy, the legal pathway is the only guarantee for establishing a balanced policy that preserves both the general interest and the rights of economic actors in the short-term rental sector. Several major recent developments should be noted:
- On November 7, the Court of First Instance condemned the City of Brussels, subject to penalty payments, to process fire safety certificate applications submitted to it.
- On November 15, 2024, the Second Chamber of the Brussels Court of Appeal referred questions to the Court of Justice of the European Union regarding the compliance with Directive 2006/123 on services in the internal market of the Ordinance of 8 May 2014 relating to tourist accommodation, particularly the requirement of compliance with urban planning and land-use regulations. The Court of Appeal submitted several preliminary questions to the CJEU.
- Last but not least, the Constitutional Court has been seized with an action for annulment of the Ordinance of 1 February 2024, filed on August 5, also including referrals of preliminary questions to the CJEU.
Alongside this essential legal pathway, and without reiterating all the proposals already developed elsewhere on this website, it is important to recall that STR-Belgium:
- advocates for genuine dialogue among all stakeholders and is available to the future Brussels Government to co-construct a competitive, innovative and sustainable tourism market that preserves the general interest;
- strongly supports greater involvement of the academic world by policymakers in seeking solutions to a complex and systemic issue — across all scientific fields, not only socio-demography: no to a local optimum, yes to a global optimum;
- fully supports the European Union’s short-term rental regulation project, which — contrary to what is stated in the online version of the article discussed here — will enter into force on May 20, 2026 (in less than two years, not 48 months). While the intentions of this project are commendable and will help clean up the short-term rental market (no registration number = no listing on platforms; traceability of rental activity), it is essential that EU rules are respected by local regulations determining the conditions for obtaining these registration numbers, particularly the Directive of December 12, 2006 on services in the internal market. The circle is complete.
Reminder of some relevant recent developments:
- Mémorandum STR-Belgium – Intégration de la location de courte durée dans un marché touristique bruxellois compétitif, innovant et durable – STR Belgium
- Analyse d’impacts pour les différents groupes d’électeurs en Région de Bruxelles-Capitale et au-delà – Demande de report du vote du projet d’ordonnance – Communiqué de presse
- Ordonnance hébergements touristiques – Résumé de la session plénière au Parlement bruxellois du 26 janvier
- STR-Belgium participe au Groupe de Travail Transversal relatif aux orientations stratégiques du PRAS – STR Belgium
- Lettre ouverte aux citoyen(ne)s de la Région de Bruxelles-Capitale – STR Belgium
