Airbnb association takes up the fight against possible ban in Budapest

“In September 2024, residents of Terézváros will decide, in a referendum disguised as a public opinion poll, on the complete ban of Airbnb operations in their district. While the affected accommodation providers and local businesses and workers who depend on tourism are not allowed to vote, a potential negative outcome could lead them into a severe livelihood crisis.

Therefore, the accommodation providers have come together and launched their campaign, titled ‘Let Terézváros Thrive!’ with 80 activists participating on August 22, 2024,” according to a joint statement by the Hungarian Association of Apartment Hosts and the Alliance of Responsible Accommodation Providers.

At the meeting organized by the Hungarian Association of Apartment Hosts and the Alliance of Responsible Accommodation Providers (MAKE), association president Balázs Schumicky pointed out that even if Airbnbs are banned, mass tourists who disregard community living rules in residential buildings will continue to be a problem because hostels operating in residential buildings can still operate without control. These visitors typically stay in these large-capacity, low-cost accommodations.

“In contrast, 75% of the apartments rented to tourists in the district are suitable for accommodating 2-4 people, and no one can seriously think that couples or families visiting Budapest are the ones causing problems for residents,” emphasized the MAKE president.

Airbnb owners believe hotel association would like to suffocate them:

Photo: FB/MAKE

Balázs Schumicky also noted that international examples show that it is not true that ‘Airbnbs’ are responsible for rising rental prices. In any case, there is no housing crisis in the 6th district, as, over 11 years, 10,000 more apartments are available to residents due to people moving out and the construction of new apartments.

If renters were to replace tourists, who spend an average of 3.5 nights in Budapest, drawing from experiences during the Covid period, tenants unsuitable for condominium life could move in, potentially making life miserable for residents for many months or even years. Meanwhile, the condition of the residential buildings will further deteriorate as the accommodation providers who have reinvested a portion of their income into maintaining the buildings and covering extraordinary renovation costs will be driven away. The MAKE president also stressed that if 3-4,000 new residents suddenly appear in Terézváros as renters, current residents will have fewer parking spaces and daycare and kindergarten places, as tourists do not use these public services, but renters do.

A Terézváros rooftop. Photo: FB/Soproni

Citing Tamás Soproni, he stated that Airbnbs in the district pay more than 670 million forints in tourism tax annually to the district’s coffers. This amount, combined with the property tax they also pay, approaches 1 billion forints. The absence of this revenue could lead to a lack of developments or tax increases imposed on district residents and businesses. Following the public part of the press conference, Iván Somló, a member of the association and the campaign project manager, outlined the tasks for activists in the coming weeks. In the upcoming period, the organizers aim to spread fact-based messages to as many people as possible,

encourage as many people as possible to vote NO,

and show the residents of Terézváros the drastic consequences they could face if private and other accommodations are completely banned. This is why they chose the slogan for their campaign: “Let Terézváros Thrive!”

The accommodation providers have real proposals that offer a solution for all parties concerned in Terézváros: reducing illegal accommodations, preventing the opening of new accommodations similar to the 5th district, and effectively enforcing existing regulations. These well-developed proposals have been shared with the leaders of Terézváros multiple times.

Read also:

• Tourists vs cities: Next clash in Budapest – mayor, government-close tourism board against Airbnb, read more HERE
• Budapest district mayor shares further details about possible Airbnb ban from September

Featured image: illustration, MAKE demonstration in 2020.