Policy Regulations for Accommodation Challenges in Tourism
Accommodation is a major determinant factor which influences the service delivery process in the tourism industry. Availability of affordable accommodation is not only a requirement for tourists but also for workers in the tourism sector. Shortage of affordable accommodation has been a major issue in the Canadian tourism industry which has necessitated the need for developing policies to provide a long-term solution to accommodation in tourism. This involves addressing the problems associated with Short Term vacation Rentals which have contributed to unaffordable rental pool in the tourism sector. The Tourism Industry Association of British Columbia (TIABC) has actively engaged the local government as well as the provincial government to develop and enforce policies regulating the residential accommodation to solve the shrinking rental accommodation which has adversely affected the workers of the tourism sector (TIABC, 2016).
TIABC’s Policy Suggestion
The TIABC organization urged the provincial government to regulate the short-term vacation rentals by enforcing a policy to eliminate PST and the Municipal and Regional District Tax exemption for the rental owners. According to the TIABC organization, this policy will compel the STRs and the property owners with less than four rooms to offer their rooms legally for rent (TIABC, 2016). Furthermore, the development and enforcement of their own community regulations on Short-term Rentals has also been suggested. This will result in making the competition for the traditional accommodations and level the playing ground. Also, the regulation will ensure that the STRs, small accommodation providers, as well as the online platforms, do not collect accommodation taxes like other traditional accommodation providers.
The policy instruments suggested by the TIABC organization can be considered as the instrument to penalize development. Under this instrument of policy, the land conversion taxes and illegal operating factors are included. The policy forbids the collection of requisite taxation by some of the small accommodations. The policy suggests reviewing the tax regulations which will consequently lead to the generation of revenue which can be channeled to developments of other sectors of the economy including the tourism sector itself. Therefore, the instrument to capitalize development is also used over here. The policy is also aimed at solving the accommodation crisis by legally forcing the STRs and small accommodation providers to offer their rooms for long-term rent for several workers who are forced to leave due to shortage and the high cost of the rental pool. The policy, therefore, works as an instrument to penalize developments as well as to capitalize development as the availability of rentals increase labor productivity for various industries including the tourism industry.
Municipal vs. Provincial Governments in Creation and Implementation of Policies
Government plays a vital role in approving all general or specific policies as well as enforcing such policies by the use of authority. The hierarchy of governments influences how policies are approved and administered in society (Reed, 1997). Municipal governments are the lowest local governments and their policies and by-laws require the approval of the provincial government. The existing form of policy development in the government is basically a top-bottom approach in which the federal and provincial governments make and approve policies and laws which are then enforced by the municipal governments (Sharplet, 2002). The Therefore, the policies created should be designed for the municipal level in order to actually deal with the issue. Developing policies for the municipal level will require approval by the provincial level but will involve more deeply into the matter. The proper planning regarding the land use and development of policies is better done as they are well informed about the place. Whereas the provincial level government is not actually involved with the people which are equal and important part of the four main stakeholders in the planning and policy making process.
Additional Policies towards Affordable Accommodation for Tourism Workers
• Inclusionary Zoning policies
Inclusionary zoning policies have been identified as affordable housing tool which has been utilized in most of the countries. Local governments have increasingly enforced the inclusionary zoning policies in both new and existing residential houses. Consequently, the inclusionary zoning approach has been reported to be cost-effective means of supplying affordable housing for both public and private sectors (HUD USER, n.d.). The regulation provides ordinance for the residential developers and property owners to reserve a given number of homes in the development and make such housing units affordable to low-income or medium-income residents (Been, Meltzer, & Schuetz, 2007). The policy then provides incentives for the developers by providing cost-offsets which allow the developers to build more housing units and to allow faster development. Inclusionary zoning policies ensure that affordable housing is incorporated in the development of density mid-rise buildings planning decisions (Lee, 2016). The structure of the inclusionary zoning policies varies in different countries some being entirely voluntary while some inclusionary zoning programs are mandatory. Also, some policies specify whether the affordable units must be developed within the market-rate housing plan or should be located offsite. The inclusionary zoning policies are described to be influenced by several housing market-rate developments.
Inclusionary Zoning (IZ) programs can provide a solution to affordable residential crisis for tourism workers and the housing crisis across the nation. In countries where IZ programs have been implemented like the United States, the policies have generally transformed the housing policy towards a more direct public subsidy housing development programs which are typically more fiscally affordable and sustainable (Been, Meltzer, & Schuetz, 2007). It is also reported that the location of the affordable housing units within the market-rate unit’s development has promoted social and economic integration within such neighborhoods. Although critics argue that IZ programs are less profitable to the developers, it is evident that developers reap a lot of benefits from incentives given to them through the program such as density bonuses.
To ensure that inclusionary zoning adequately solves the affordable housing challenges, the resulting new affordable housing units should be managed by non-profit or local governments to ensure that the affordability is upheld. IZ policies should also be considered as a design principle of redevelopments aimed at affordability and should be enforced fully by the government as an effort to broaden the pool of rental stock (Lee, 2016). Amid the current density of mid-rise developments, use of IZ approach in cities can reinforce not only the local neighborhoods and communities but also result in a robust expansion of local businesses, public spaces and community centers as well as other social amenities (Lee, 2016). IZ policies, therefore, can be recommended for creating affordable accommodation for tourism workers if it is adopted by both the tourism industry and the government.
• Policies for Preserving and Reinventing Existing Housing Stock
With the focus on the development of new affordable housing units, policies should be developed to renovate and prevent the loss of existing housing stock. This old housing can be reinvented to provide affordable housing units for populations. The policies should also ensure that the government provides social subsidies for upgrades and maintenance of such housing units to make them sustainable (Sharpley, 2000). Historically, the federal government had an initiative which aimed at providing social subsidies for all government developed housing units. The subsidies were basically used to pay mortgages, maintenance, and repairs as well as keeping the cost of housing units at below-market rent (Lee, 2016). However, these subsidies have been phased out currently which has deferred the maintenance of such aging housing units and therefore, need major new investments to upgrade and maintain them particularly increasing their energy efficiencies and reducing carbon emission.
British Columbia Non-Profit Housing Association (BCNPHA) acknowledges the role of non-profit organizations in reinventing the aging buildings to contribute to affordable housing. However, BCNPHA urges that policies should be developed ensure that federal subsidy of the housing units continues as a strategy of preserving the existing affordable housing stock (Lee, 2016). The success of implementation of California's Faustian Bargain policies of reinventing accessory dwelling units to serve as low-income affordable housing units justifies the need for such policies in solving the affordable accommodation crisis in the tourism sector and the whole country. The accessory dwelling units were renovated and reinvented making them suitable for college students, aging populations and low-income populations (Ramsey-Musolf, 2018). These low-income residential accessory dwelling units are managed by the city’s zoning code which regulates the unit's rent, occupancy-income regulation and effective period (Ramsey-Musolf, 2018). There are numerous aging buildings and social housing in British Columbia and across Canada which can be reinvented to offer affordable housing solutions to residents who are at risk of being homeless due to the existing unaffordable rental pool.
Developing policies for preserving and reinventing aging buildings as a way of providing affordable solution should not be merely a concern for local or provincial government but rather mandate of the federal government as well. Reinventing such housing involves restricting into small decent apartments which are attractive yet affordable. Such policies can be considered as instruments to facilitate investments through such old housing units. The government subsidies should be considered as investments rather than expenses as a solution to affordable housing spurs economic productivity of the citizens which in turn return more revenues to the government.
Conclusion
The tourism industry is one of the product and service industry which has a positive contribution to the economy and society as well as a major source of revenue to the government. However, accommodation crisis has been a great challenge facing tourism workers over years. The TIABC has raised concerns over the unaffordable rental pool in the region which has adversely impacted the tourism industry as many workers are lost due to lack of affordable housing. The organization has proposed policies targeting Short-term vacation rentals and small accommodation providers who are generally offering unaffordable rental housing. These policies are mainly focused on PST and MRDT tax imposition in an attempt to compel the STRs and property owners to legally avail their rooms for rent. Apart from these tax-exempt policies, other policies which can provide a solution to the affordable housing crisis for tourism workers include inclusionary zoning policies and the policies targeting preservation and reinvention of aging buildings. Inclusionary zoning has been identified as the most effective affordable housing tool particularly in the U.S. and can suitably solve the housing crisis in the country.