Introduction: Protests Against Gentrification and Government Response
Protests against gentrification in Mexico City have intensified the debate on regulating short-term rental platforms like Airbnb. This has sparked varied reactions from business sectors, hosts, and residents alike. Recently, the capital’s government introduced its Bando 1 strategy, a set of actions targeting housing crisis solutions. Among these, one point focuses on “strengthening the regulation of short-term rental accommodations and digital hospitality platforms,” with a commitment to establish an objective and rigorous methodology.
The Fematur Perspective: Gentrification as a Non-Turistic Issue
The Mexican Federation of Tourism Associations (Fematur) argues that gentrification is an urbanistic, real estate, and sociocultural phenomenon but not a turistic one. They urge for appropriate regulation that won’t harm hosts, stating that while Bando 1 identifies the problem, it still lacks a suitable solution.
“Bando 1 acknowledges the issue, but it’s still far from providing an adequate solution. We will collaborate with authorities to share our perspective,” said Juan Carlos Arnau Ávila, Fematur’s International Affairs Vice President, in an interview.
Focus on Housing
Participants in the rental tourism industry emphasize that any measures regarding tourism and platforms like Airbnb should be thoroughly analyzed to mitigate gentrification impacts and promote government-led housing construction.
“Regulation is important, but it shouldn’t hinder economic activities. The situation in neighborhoods like Roma and Condesa is a housing policy issue, stemming from nearly two decades of restrictive policies causing people to struggle finding suitable homes,” added Juan Carlos Arnau.
However, organizations like the Coalición Internacional para el Hábitat-América Latina (HIC-AL) have called for a review of platform operations. According to HIC-AL, by June 2023, 66% of hosts listed on the platform owned two or more properties. The remaining registered as single-property offerers, challenging the myth that the platform supports collaborative economy for small property owners.
Economic Activity
Philippe Boulanger, Vice President of Digital Economy at the Confederation of National Chambers of Commerce, Services and Tourism of the Mexican Republic (Concanaco-Servytur), highlights digitalization’s importance in tourism, applicable to the host ecosystem on digital platforms.
A Concanaco study, supported by Airbnb, found that 72% of micro, small, and medium-sized enterprises (mipymes) in Mexico City identify tourism as their primary income source. Furthermore, six out of ten businesses in this category reported receiving clients directly from digital short-term rental hosts.
“In Mexico, we face two significant challenges: informality and insecurity. Adding more control in this economic context will negatively impact businesses. We’re discussing regulation, but I’d prefer to talk about deregulation—removing barriers in this economic climate, especially with a neighbor to the north that’s more complex,” Boulanger stated.
Key Questions and Answers
- What is the main issue being debated? The dual discussion revolves around balancing housing needs and tourism growth in Mexico City, specifically addressing gentrification concerns.
- What is Fematur’s stance on regulating short-term rentals? Fematur supports appropriate regulation that doesn’t harm hosts, acknowledging the need for solutions but finding Bando 1’s proposed measures insufficient.
- How do industry participants view regulation? They emphasize the importance of thorough analysis to mitigate gentrification impacts while promoting government-led housing construction.
- What challenges does Mexico face regarding tourism and housing? Informality, insecurity, and restrictive policies are significant challenges, with industry leaders advocating for deregulation to foster economic growth.
