Recommendations to crack down on the rapid increase of short-term rentals in WA have been handed down by the Economics and Industry Standing Committee.
The committee made 44 findings and 10 recommendations which included a need for statewide registration of short-stay accommodation providers.
The inquiry found evidence that occupancy rates and revenue had dropped for traditional accommodation providers in the South-West, which coincided with the increase of short-term rental accommodation.
Traditional accommodation providers in the region have experienced significant downturn brought about by the digital disruption of online booking platforms.
Some online platforms have enabled unregistered accommodation providers to list their properties for short-stay accommodation, bypassing local government regulations, fees and costs associated with registering a business.
The downturn for traditional providers, particularly in the Margaret River and Busselton region, has seen business owners lay off staff and suffer big financial hits.
Recommendations made by the committee included the need for a statewide registration scheme for all hosted and unhosted accommodation premises.
The committee recommended that online platforms display a valid registration number for short-term rentals, issued under the scheme.
It was also recommended the state government setup an interdepartmental working group to determine the minimum information required for the scheme and registration costs.
Warren-Blackwood MLA Terry Redman triggered the inquiry when he raised a motion in parliament in October last year, he said he was happy with the recommendations made.
"Even mum and dad with a back room would be required to register," he said.
"We have targeted an interdepartmental working group to come up with legal mechanisms for for a registration scheme.
"It was recognised in the report unless you have some sort of tool to enforce compliance like a fine to the house owner or online platform then you would not get that compliance.
"That mechanism would significantly help local government."
The inquiry's chair Swan Hills MLA Jessica Shaw stated in 2010, 30 WA properties were listed online and since that time, growth had been exponential.
"The 12 months to December 2018 saw a 24 per cent increase in listings, with over 12,000 listings now available in WA," she stated.
"The vast majority of these properties are 'unhosted', with guests having exclusive use of an entire house or apartment.
"As at early 2019, there were at least 20,000 short-term rental listings in WA, a large majority of them unhosted accommodation."
Mr Redman said local governments have tried to control the issue but the amount of resources required to ensure there was compliance was very difficult.
"They are having a red-hot crack in the Augusta Margaret River Shire, it is probably having some impact but you have to put a lot of resources into it to track them down," he said.
"You cannot just jump online and get an address, you need a few photos.
"Even if you identify a house the burden of proof to show someone is using it and has taken money from an online booking is pretty hard to get."
Online booking platform, Airbnb head of public policy Brent Thomas said home sharing was a growing and legitimate part of the tourism industry and provided enormous benefits to local families, small businesses and communities.
"Last year, more than 800,000 West Australians chose to use Airbnb and their choice should be respected," he said.
"After extensive consideration, the committee has found no evidence to support many of the arguments made by the hotel lobby."
Registered Accommodation Providers Margaret River Region spokesperson Debbie Noonan said the finding only backed what they had stated since day one.
"I feel sad that our regional accommodation owners have had to sell or go out of business while going through the stress of putting off employees, all the while defending our right to run an accommodation business fairly in our community," she said.
"RAPMRR applauds the committee in listening to the people and accommodation industry on both sides along with local stakeholders in producing such a comprehensive report.
"We all look forward to moving ahead to improve our industry and the tourism experience in the region.
"RAPMRR fully endorses the proposed regulations and looks forward to continuing to work with both the local and state governments through their interdepartmental working groups to further enhance the WA tourism industry in our region.
"The goal is a fair and level playing field for all those working in the accommodation industry across WA."
WA HomeStay is an online booking platform which started late last year because they wanted to offer cheaper booking fees for holiday accommodation.
Director Amanda Walker has a holiday home in the South West and found other online providers were charging high fees and a lack of service.
Ms Walker said after having discussions with local stakeholders she found bed and breakfasts and farm stays were struggling with the rise of unregistered holiday homes.
"We made a commitment to only let registered holiday homes list on our site, which is a process dealing with different local governments, now with this inquiry it looks like it will get a lot simpler," she said.
"The recommendations are fantastic and are completely inline with what we submitted to the government inquiry.
"It is just nice commonsense has prevailed because it is such a tricky area with so many different stakeholders with very passionate views.
"They have hit the middle ground and they have done well."
Private Properties managing director David Moyes said they supported the recommendations for a statewide registration scheme.
The company has been established since 1994 and manage 100 holiday homes in the southwest.
Mr Moyes said currently some councils required registration, others didn't, and those who did each had their own compliance requirements for holiday homes.
"Streamlining the registration process and making it easier will hopefully encourage people to register their holiday accommodation," he said.
"The income made from the registration process could be used towards the enforcement of compliance - this is the missing link at the moment.
"At the end of the day it just makes sense for everyone to be playing by the same rules."
The state government have a month to respond to the report in which time they would come back with a response to each of the recommendations.
"That does not stop government pressing forward now, I would think with the level of impact happening in the traditional accommodation market it would be a smart move for government to do that," Mr Redman said.
