Official: Home Sharing Accommodations Require Regulated Development in China

By Yuling Chen, EDITOR

The homestay as a new type of tourist accommodation is burgeoning with a spurt of progress in urban tourism. And how to strengthen management to foster the sound development of home sharing accommodations? On March 3, Liu Qi, Member of the National Committee of CPPCC, and Director of Chongqing Municipal Commission of Culture and Tourism Development, took an interview on that regard.

Liu Qi, Member of the National Committee of CPPCC, and Director of Chongqing Municipal Commission of Culture and Tourism Development takes an interview on March 3, 2019.

Reporter: Continuously renewed promotion methods in recent years have made some urban attractions a hit among people, thus driving the development of urban tourism. Home sharing business has become an emerging industry during the process. So, what’s your view on it and what are the potential solutions to the problems that arise?

Liu Qi: As a new industry in the era of sharing economy, the homestay industry plays a positive role in several aspects. It can meet people’s diversified and personalized needs on travel and accommodation and improve the utilization of idle real estate. Moreover, it helps to broaden opportunities for employment and entrepreneurship and increase the incomes of urban and rural residents.

According to China’s Home Sharing Industry Development Report 2018 by the State Information Center’s Sharing Economy Research Center, three million accommodations in China were listed on home sharing platforms. About 78 million people participated in China’s home sharing economy, among whom 76 million were tenants. Home sharing transactions in China amounted to an estimated RMB 14.5 billion, up 70.6% YoY. The Report predicts that China’s home sharing market is going to exceed RMB 50 billion by 2020. Six million accommodations will be listed. The number of tenants will exceed 100 million.

There are over 200,000 beds on home sharing platforms, according to the investigation by relevant departments of Chongqing.

It’s necessary to further define the scope of home sharing industry by drawing lessons from relevant experience domestically and internationally. Well-articulated responsibilities and obligations among landlords, platforms and tenants and those between local governments and relevant departments shall be defined. It’s necessary to promote national legislation in proper time to ensure authoritative, scientific and effective solutions to the legality of the industry. That helps to avoid unfair competition caused by unlicensed tax avoidance.

Furthermore, a master plan for the development of the industry shall be formulated to further specify its orientation, direction, overall layout and promotion plans. A unified national management standard for home sharing industry shall be developed by improving industry standards to make them applicable nationally. Detailed regulations shall be made on fire control, public security, sanitation and food safety to regulate the home sharing industry.

Source: CQCB