Bet you think Rick Snyder's administration is all for a free marketplace, consumer choice and level competition.
Well, think again.
Airbnb, the popular site that lets anyone with a guest room compete with the lodging industry,was the focus of a forum at a Governor’s Conference on Tourism this week in Grand Rapids. At a blog post for the Mackinac Center for Public Policy, Tom Gantert notes that "the event’s promotional materials did not cast Airbnb in a favorable light:
“They don’t pay taxes
and are largely unregulated, but they do make money
Here's how a state government tourism promoter describes the concerns to the Capitol Confidential blogger:
“The point is that this consumer-driven change impacts the established hospitality and tourism industry,” said Nathan Pilon, spokesman for Travel Michigan. “The question for the industry is, what will they do to meet this competitive challenge?”
Professor Mark Perry: "For Pure Michigan to ignore this exciting development or try to stop its inevitable growth would be a disservice."
Gantert gets a different perspective from Mark Perry, a business economics professor at UM-Flint who thinks the state wants to protect the “travel status quo” and engage in crony capitalism.
“Pure Michigan should be supporting and embracing Airbnb as a way for Michiganders to travel the world and have access to 1 million listings at all price points in more than 30,000 cities in more than 190 countries around the world,” Perry said. “At the same time, it’s a way for Michiganders to open their homes, apartments and cabins to guests from around the world, and become part of a growing international travel community.
"Airbnb represents the future of travel, and for Pure Michigan to ignore this exciting development or try to stop its inevitable growth would be a disservice to the citizens of Michigan.
“Tourism will increase in Michigan the more choices for lodging travelers have, and adding Airbnb options to the traditional hotels/motels/resorts is just a way to increase the number and variety of lodging options available, and ultimately increase travel and tourism in the state,” he said.
In response to the state agency's claim that Airbnb is "largely unregulated," the professor -- who's also a scholar at the conservative American Enterprise Institute police center -- says:
“After each stay, travelers rate their hosts and the hosts rate their guests, which is a very efficient and effective form of regulation. . . . That form of regulation is what has allowed Airbnb to expand and grow.”
-- Alan Stamm
