The number of Airbnb listings in Canberra has more than doubled over the past two years, despite the introduction of a 5 per cent levy on short-stay accommodation in the Australian Capital Territory. New data reveals that the platform now boasts over 2,000 active listings in the capital, up from approximately 900 in early 2022.
Levy Impact Minimal on Growth
Industry analysts suggest the levy, which came into effect in July 2023, has done little to dampen the enthusiasm of hosts or guests. The tax applies to all short-term rentals booked through platforms like Airbnb and Stayz, with revenue directed towards affordable housing initiatives. However, the steady increase in listings indicates that property owners remain keen to capitalise on Canberra's growing tourism and business travel sectors.
Hosts Adapt to New Regulations
Many hosts have absorbed the additional cost or passed it on to guests through slightly higher nightly rates. "The levy hasn't really affected my business," said one Canberra host with multiple properties. "Guests are still booking, and the demand is strong, especially during major events like Enlighten Festival and Floriade." The ACT government estimates the levy will raise around $2 million annually, but critics argue it may not be enough to address housing affordability concerns.
Tourism Boom Fuels Demand
Canberra's tourism sector has rebounded strongly post-pandemic, with visitor numbers surging. The city's appeal as a destination for cultural events, political tourism, and outdoor activities has driven demand for short-stay accommodation. Data from VisitCanberra shows that overnight visitor expenditure reached $2.5 billion in the 2023-24 financial year, a record high.
Regulatory Challenges Ahead
Despite the growth, challenges remain. The ACT government is considering further regulations to ensure short-stay rentals do not exacerbate the housing crisis. Proposed measures include caps on the number of nights a property can be rented per year and stricter registration requirements. Meanwhile, traditional hotel operators have expressed concerns about unfair competition, as short-stay rentals often operate under different regulatory frameworks.
The doubling of listings highlights the evolving nature of Canberra's accommodation market. As more travellers seek flexible and unique stays, the short-term rental sector is likely to continue expanding, even in the face of regulatory hurdles.
