Sarah Bratko is the manager of governmental affairs for the Rhode Island Hospitality Association, which represents more than 800 hospitality-related businesses in the state, including hotels, restaurants and food vendors. She responded recently to questions from the Providence Business News about online house- and apartment-sharing services, which have made significant inroads into tourism-heavy communities, including Newport.
PBN: What concern, if any, does the Rhode Island Hospitality Association have about the expansion of Airbnb and other house- or apartment-sharing platforms in locations such as Newport?
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BRATKO: The lodging industry is one of the most heavily regulated industries in Rhode Island, and for good reason. Most of these regulations – such as the fire code – were developed to ensure the health and safety of our guests. One of the challenges of unlicensed, short-term rentals is that they are acting as hotels without any of the regulatory restrictions that a traditional lodging facility must follow.
PBN: Have hotels been put at a competitive disadvantage due to the home- and room-sharing platforms?
BRATKO: At the end of the day, we all benefit from tourism – regardless of where a guest might stay. Our goal is to create a level playing field for all lodging establishments that prioritizes the health and safety of our guests while also preserving the character of the community where they are located.
This unlicensed market has exploded in popularity in recent years, largely without any regulatory oversight. We are now seeing the impact of this across the country and locally here in Rhode Island, particularly in our most popular tourist destinations. Although these establishments are now being taxed similarly to hotels, enforcement remains a challenge, largely due to the unlicensed, unregulated nature of the business.
PBN: What are you proposing in relation to property-sharing platforms in the 2019 General Assembly session?
BRATKO: RIHA has worked with the American Hotel & Lodging Association to develop sample legislation that would address some of the major concerns regarding unlicensed rentals. This includes allowing regulatory oversight to ensure that basic health and safety standards in unlicensed short-term rentals are being met.
We would all like to assume that an unlicensed short-term rental [is] safe and clean, but the reality is that there is no state requirement that they meet even basic health and safety standards – such as having working fire alarms, safe electrical wiring or even clean sheets on the bed.
Our proposed language also includes reasonable requirements that short-term rentals comply with accessibility standards and anti-discrimination laws. By providing a clear legal framework for when a guest can be refused or ejected, we will be protecting guests and unlicensed short-term rental providers and ensuring that everyone has equal accessibility to lodging.
We are also looking forward to working with municipalities to ensure that unlicensed short-term rentals are working within a reasonable zoning structure that respects the needs and character of the community living near the unlicensed short-term rental. Things [such as] trash removal, traffic patterns, zoning requirements and affordable housing are all being impacted by unlicensed short-term rentals.
PBN: How large is the hospitality industry in Rhode Island?
BRATKO: There are 2,798 eating and drinking places and 170 hotel properties in Rhode Island. The hospitality industry employs [more than] 85,000 employees and is one of the top five industries in Rhode Island. The industry generated [more than] $215 million in sales tax for the state in 2017. The meals and beverage tax generated [more than] $26 million to municipalities, while the hotel tax generated almost $20 million to the state and almost $5 million to municipalities.
PBN: Who in general does it represent?
BRATKO: RIHA represents [more than] 800 food service, hotels, vendors and hospitality businesses and has been the voice of the hospitality and food service industries in the state since 1963.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
