Property owners who put their homes up for rent to tourists on internet letting sites could be breaking the law, The Royal Gazette has discovered.

Many homeowners on the Island are renting out rooms, apartments and whole houses to visitors, using popular sites such as Airbnb to advertise.

But the Hotel (Licensing and Control) Act 1969 requires any tourist accommodation which sleeps six or more people to be licensed with the Government as a hotel and for the owners to pay hotel occupancy tax of 7.25 percent for each guest.

On Airbnb, there are ten properties currently listed in Bermuda as accommodating six or more people, ranging in price from about $205 to $1,545 a night.

None of the listings mention hotel occupancy tax or whether they are licensed.

They include a “spacious modern town house” in St George’s, which sleeps six people, to a “serene vacation villa” in Smith’s, housing eight.

A spokeswoman for the Ministry of Tourism Development and Transport told The Royal Gazette: “If an accommodation is not licensed by the Government of Bermuda, it is permitted to accommodate one to five person[s] on any given night. Anything more than five is a breach of law.”

Asked if the Ministry planned to investigate the ten Airbnb properties, the spokeswoman said: “This has been brought to the attention of the regulation and policy section.”

She pointed this newspaper to the consumer website of Bermuda Tourism Authority (BTA) — at www.gotobermuda.com — for a list of licensed tourist accommodation. The list was last updated in April, according to BTA.

None of the ten properties on Airbnb appeared to be listed on the site, under its ‘Where to Stay’ section.

The Ministry spokeswoman said tourists could also check if a rental property was licensed by calling the regulation and policy section of the Ministry of Tourism Development and Transport on 292-1271.

But that number turned out to be for the Transport Control Department and when we called the main government number, a receptionist told us the Ministry of Tourism no longer existed and we could not be put through.

We tried to contact the ten hosts through the Airbnb website but only one returned our message and they did not respond to questions by press time.

Last month, Airbnb was fined €30,000 ($39,500) by the government of Catalonia for allegedly breaching local laws requiring apartments rented to tourists to be registered with its Tourism Registry. Seven other websites were also fined.

According to the UK’s Guardian newspaper, the fines were for private tourist lets in Barcelona, one of Airbnb’s largest markets, where regional laws also prohibit the renting out of rooms in private residences.

Airbnb spokeswoman Marie Aberger told this newspaper: “When hosts register on Airbnb, they must certify that they will comply with local rules before they list their space.

“We also have a hosting responsibilities page that reminds people to check their local laws and regulations and includes additional information and resources.”

The Ministry spokeswoman said: “The owners of private homes [in Bermuda] have been renting to tourists for decades. It is something that requires close monitoring.

“From time to time, the regulation and policy section of the Ministry receives reports and all reports are investigated.

“In the first instance, the Department would meet with the alleged offender to explain the law, as well as how one would become a licensed property and requirements for the same.

“Once persons learn of the law, they operate within the law. There have been cases where action was taken when unlicensed units were rented as licensed units.”

She said Government conducted an awareness campaign a few years ago, which involved contacting all unlicensed properties listed on the internet, in magazines and the telephone book and advising them of the restrictions, as well as the requirement to become a licensed hotel.

Victoria Isley, the tourism authority’s chief sales and marketing officer, said: “The evolution of the short term vacation rental market is being recognised around the world, including here in Bermuda.

“It’s a complex issue with many sides to be heard and reviewed.

“The BTA believes that a methodical process would include: reviewing visitor demand for these types of accommodations and the incremental benefits to the Island and its residents; [and] not prohibiting this type of evolution but updating regulations to ensure a level playing field across the lodging sector.”

The Hotel (Licensing and Control) Act defines a hotel as “any place, land-based or not, including all grounds and premises appurtenant thereto, which provides sleeping accommodation for six or more guests and a charge is made for such accommodation”.

It states that anyone convicted of operating a hotel in contravention of the regulations can be fined $1,000 for each offence.

The legislation excludes premises which have been granted a certificate of exemption, such as clubs which provide accommodation for members, or rooming-houses registered under the Public Health Act 1949.

Airbnb, founded in 2008, has more than 800,000 listings for private tourist accommodation in 190 countries and more than 34,000 cities.

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