Airbnb has said the Welsh Government's plans to introduce a licensing rule for visitor accommodation would cause "immense harm".
This proposed law would mean properties would need to be licensed to show they are safe and fit for visitors including showing they have gas and electrical safety certificates and insurance along with smoke and carbon monoxide alarms. There had already been concerns raised that and a warning has been issued not to
Now further concerns have been raised about it including by Airbnb. The accommodation platform was one of the companies which gave evidence to the Senedd's economy committee.
Carl Thomson, Ƶ public policy manager for Airbnb, described licensing plans as a “blunt and unnecessary tool” that is disproportionate to any risks that might be faced by guests.
“In our view there’s no evidence that a licensing regime is needed in Wales,” he said. “Or that it will do anything other than cause immense harm to local accommodation providers, reduce consumer choice, and push up costs for guests.”
The estimate by officials is that it would cost a provider £75 a year to get the licence but AIrbnb say that fees for a similar scheme in Scotland ranged from the hundreds of pounds to almost £6,000 in Edinburgh which would wipe out the entire yearly earnings of a typical Airbnb host.
In written evidence Airbnb estimated the bill could cost Welsh hosts between £4.5m and £15m in reduced income with “immeasurable” impacts on the wider Welsh economy
Mr Thomson told the committee experience of short-term letting regulation from around the world shows licensing schemes do not solve the problem they are intended to fix. .
He said: "Of course safety matters but it’s important to remember that problems are exceptionally rare. Our data… tells us accommodation in Wales actually has a much stronger safety record compared with other parts of the Ƶ and internationally."
He said of the hundreds of thousands of inbound trips booked to Wales through Airbnb in 2024-25 only 39 safety incidents were reported, equating to 0.004%, and none of the incidents related to carbon monoxide, fire safety, nor electrical safety with only a single reported gas-related concern.
He told Senedd members: “If the purpose of this legislation is to ensure the health, safety, and quality of the sector there’s real questions about whether it’s necessary or needed.”
Fiona MacConnacher, head of public affairs for the Ƶ and Ireland at Booking.com, supported proportionate regulation but suggested the bill had been rushed through.
Warning of unintended consequences she said: “We’re talking about Welsh businesses here and if we affect those businesses we don’t just affect those self-catering businesses: we affect the restaurants, the pubs, the shops.”
Barbara Griffiths, who runs North Wales Holiday Cottages, warned government officials have told her they have not had time to add sectors beyond self-contained self-catering lets.
“It’s rushed and I feel it should be delayed,” she said.
Ms Griffiths argued the bill would not create a level playing field, as claimed by ministers, because it does not cover other types of visitor accommodation.
Mr Thomson warned booking intermediaries would become legally liable for the accuracy of registration numbers provided by accommodation providers under the bill. He told the committee the first Airbnb learned about this aspect was when the bill was published.
He said: “That approach is inconsistent with established practice elsewhere in the Ƶ and around the world. There’s real technical problems with how that could work in practice.”
Mr Thomson added: “We strongly disagree with the suggestion that criminal liability should be placed on platforms, and the senior officers of those companies, for actions which they’ve not participated in, for which they have no control, and for which they’re unaware.”
He called for amendments to ensure liability rests with the accommodation provider.
He argued registration plans previously passed by the Senedd can achieve all of the same aims without the cost, friction, and bureaucracy that layering licensing on top brings.
