Online platform HomeAway has warned Newcastle City Council it risks stunting tourism growth by limiting short-term rentals in the city.
The Newcastle Herald reported on Friday that the council would ask the state government for a 180-day limit on short-term rentals where the host is not present after neighbour complaints about poor guest behaviour.
The council would have that option under new planning rules the state has proposed to curb the negative impacts of short-term letting by companies such as Airbnb.
But HomeAway, the new platform of Stayz, pushed back on Friday, arguing Newcastle risked losing tourism dollars to other parts of the state.
HomeAway director of corporate affairs Eacham Curry said short-term rental accommodation was a “key driver of growth” for Newcastle’s tourism economy.
“The announcement of a restrictive night cap for short-term rentals was made with zero consultation with industry and with wanton disregard for the impact on Newcastle’s tourism economy,” he said.
“If Newcastle City Council moves ahead with a night cap, they will simply put jobs and economic growth at risk.”
Mr Curry agreed with the government proposal for a compulsory code of conduct for hosts, guests and platforms, a “robust disciplinary regime” and registration for listed properties.