Register for Short-Term Rental in 2023
In 2022 self-catering owners had a busy summer season after a slow start to the year. Self-catering has become the number 1 choice of accommodation for guests across the EU. The Irish Self-Catering Federation has called for a simple online Register for all Short Term Rentals since 2017 and in the past year the Department of Tourism has developed regulations and Failte Ireland, the responsible statutory body, has been developing an online registration system for Short Term Rental (STR) in Ireland. Tourism is Ireland’s largest indigenous industry and is a critical component of the export economy. In 2019 the following tourism facts were published, showing it to be an essential part of the Irish economy:
• Worth €9.2 billion annually
• 9.68 million international visitors in 2019
• Tourism employed 265,000 nationally in 2019
• 1 in 9 jobs nationally are in the tourism & hospitality sector
• According to Fáilte Ireland, for every euro spent by tourists 23 cent is generated in tax
The EU Commission Register for STR document was published on 07/11 and this will mean that when adopted by the EU Parliament in late 2023 all states will have a maximum of 18 months from then to complete a registration system. The aim of the EU is to allow for data collection, transparency in the STR sector, and clear information on who owns and runs each business. The media coverage of the launch of Registration was hijacked by housing needs, rather than the tourism accommodation product which is self-catering in many rural areas of Ireland.
What does the Registration for STR mean for Business in Ireland?
The Bill will establish a new Short-Term Tourism Letting Register
- The present Failte Ireland Register under the 1939 Tourism and Traffic Act will be updated to include Hotels, Guesthouses, Caravan and Camping, and bring in Self-Catering, Bed and Breakfast and Boat Hire, and many variable terms of STR under the new registration. system.
- All accommodations of up to and including 21 nights will be considered Short-Term Rentals.
- Properties offering STR accommodation will be obliged to display a valid registration number, as provided by Failte Ireland. This will include owners, Irish agents, and all Online Travel Agent (OTA) platforms.
- Penalties for the enforcement of the Register by Failte Ireland may levy an initial €300 fixed payment notice to property owners who advertise without a valid Registration number.
- There is an option to take a case to the district court and impose a maximum fine of €5,000 per property to the owners and the person or agency marketing the property. Platforms can be fined up to €5,000 per property which does not display a valid registration number on the individual advertisement.
The Register for STR has been presented to the Dail. The legislation was framed in a very negative manner with the media picking up on this distorted view of the sector. Self-Catering accommodation has been part of the tourism offering for many years and a recent ITIC report shows that 28% of regional beds are now lost for the 2023 tourism season. There is a lack of data on the tourism sector in Ireland from the CSO, though Eurostat started to publish details on the economic benefit of STR tourism to the EU economy in September 2022 as part of the data transparency policy.
The ISCF held talks with Government when the Planning and Development Bill No 2 was introduced, and in October 2022 we held a very successful series of meetings around the country which persuaded the Department of Housing to withdraw its Planning and Development Bill.
The ISCF will appoint a negotiation team to discuss the registration for STR in Ireland from January to mid-March 2023 when the legislation will be completed. We plan to take all members’ views to the Department of Tourism meetings and to politicians. There are serious questions on the additional planning requirements, particularly in Rent Pressure Zone areas, as no guidelines exist for planners and STR owners.
If you own a self-catering, glamping or other short-term rental business in Ireland join the ISCF for the latest information to assist you in running your business in 2023.