Members of the Asian American Hotel Owners Association (AAHOA), the largest hotel owners association in the world, applauded a vote by the Arkansas House Committee on City, County, and Local Affairs not to advance legislation that would have weakened oversight of short-term rentals in the state.
AAHOA Members in Arkansas had urged the defeat of Senate Bill 197, which would have handcuffed local governments from enacting reasonable regulations over short-term rentals. In a voice vote yesterday, the House Committee on City, County, and Local Affairs declined to advance the bill.
AAHOA Members own nearly 90% of hotels in Arkansas.
“Allowing short-term rentals to operate without proper oversight hinders the ability of local governments to protect their communities,” said AAHOA President & CEO Laura Lee Blake. “There is no dispute that property owners should have the right to legally rent their homes to earn extra income. But there needs to be safeguards in place to ensure safety standards and prevent artificial inflation of housing costs.”
AAHOA and the Arkansas Hospitality Association worked together to educate lawmakers about the problems with allowing short-term rentals to escape local regulations.
“Without proper oversight, online vacation rental behemoths like Airbnb and Vrbo are effectively allowed to operate lodging businesses in the form of short-term rentals without being required to pay the same taxes and follow the same regulations as hotels,” said Neal Patel, AAHOA Chairman. “All lodging businesses should be subject to the same rules to ensure a level playing field where competition can thrive. We are grateful to our Members and to our partners at the Arkansas Hospitality Association for their advocacy in helping to defeat this misguided proposal.”
“Passage of this bill would have undermined small business owners, risked exacerbating housing shortages, and diminished the quality and safety of Arkansas neighborhoods,” said Bharat Patel, AAHOA Vice Chairman. “AAHOA Members stand ready to work together to find solutions that protect Arkansas communities.”