Navigating Australian Open 2024: A Guide for Airbnb Hosts in Melbourne
The Australian Open 2024 is set to kick off on Sunday, January 14, marking a historic 15-day event concluding on Sunday, January 28. As the tennis extravaganza approaches, local Airbnb hosts in Melbourne find themselves at the centre of attention, with the influx of visitors seeking accommodations.
In this blog post, we'll explore the potential impact of the Australian Open on Airbnb hosts, examine the current state of short-term rentals in Melbourne, and shed light on a proposed levy that could reshape the hosting landscape from 2025 onwards.
Australian Open 2024 Schedule Changes
The tournament's schedule sees a notable shift this year, extending to 15 days with the first round spanning Sunday to Tuesday. Historically, the competition lasted 14 days, starting on a Monday. These changes may impact the influx of visitors and the duration of their stay.
Anticipated Attendance and Accommodation Demand
Data from 2019 estimates a staggering 750,000 visitors descending upon Melbourne (Airbnb has not shared any more recent stats, unfortunately). This surge in attendance presents a prime opportunity for Airbnb hosts. Short-stay platforms, including Airbnb, are emphasizing their support for local hosts, positioning them as a preferred choice over traditional hotels.
Source: https://www.domain.com.au/news/grand-slam-the-battle-for-the-best-accommodation-during-the-australian-open/
Airbnb's Positive Impact on the Local Economy
Contrary to recent controversies surrounding short-stay platforms, Airbnb underscores its positive contribution to the local economy. New data reveals that approximately 29,000 individuals are expected to stay in Melbourne's short-stay rentals during the tennis tournament, with hosts projected to collectively earn $27.7 million, averaging $4,300 each.
The majority of guests are anticipated to come from Australia, followed by China, the USA, UK, and New Zealand.
Snapshot of Airbnb Hosts in Melbourne in 2023
Based on the data from the short-term rental data provider Airbtics, as of October-September 2023, Airbnb hosts in Melbourne enjoyed robust financial performance, with an average revenue of A$4,710 per host and an impressive 85% occupancy rate. The average nightly rate stood at A$196.
Local Regulatory Changes and Challenges
Amidst this optimistic outlook, it's crucial to be aware of the evolving regulatory environment. Melbourne is moving towards imposing limitations on short-stay rentals, as indicated by data from Inside Airbnb. With 23,185 Airbnbs in greater Melbourne, 7,050 in the Barwon South West region, and 4,721 in the Mornington Peninsula, hosts across these regions could be affected by impending regulations.
Understanding the Proposed 7.5% Levy
A groundbreaking proposal by the Victorian government introduces a 7.5% levy on short-term accommodation provided by platforms like Airbnb. While this levy is aimed at consumers, it could contribute a substantial $42 million annually to the state's revenue.
Important: the levy is still at a proposal stage and may potentially be put in place from 2025 - so it won’t impact this year’s visitors and prices. But as a host, remember to stay updated and make sure you follow any updated local regulations.
Frequently Asked Questions (FAQ)
Q: How can hosts prepare for the Australian Open influx without hiking up prices?
A: Consider offering value-added services, maintaining transparent communication, and ensuring a comfortable stay for guests without resorting to significant price hikes.
Q: How might the proposed levy impact my earnings?
A: While the exact impact is uncertain, hosts should be prepared for potential price adjustments in 2025 and stay informed about the evolving regulatory landscape. On average, this levy could add around $17 per night to a short-stay rental in metropolitan Melbourne, $29 in Barwon South West, and $42 on the Mornington Peninsula. Hosts should factor in this potential price increase when setting their rates.
Q: Are there alternative strategies for hosts facing regulatory challenges?
A: Exploring long-term rentals, collaborating with local authorities, and engaging with the Airbnb community to navigate regulatory changes can be beneficial.
Q: When does the Australian Open 2024 start and end?
A: The event starts on Sunday, January 14, and concludes on Sunday, January 28.
Q: What is the estimated attendance for the Australian Open 2024?
A: Approximately 750,000 visitors are expected to be in Melbourne between January 14 and 27.
Q: How much can Airbnb hosts potentially earn during the Australian Open?
A: Hosts are projected to collectively earn $27.7 million, averaging $4,300 each, during the Grand Slam event.
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