The rapid rise of Airbnb is worrying Paris' luxury hotels, who are already trying to grapple with a downturn in foreign visitors due to a downturn in economies in Russia, Brazil etc. Although they should declare any income for tax purposes, they do not face the other tax and social charges that a business such as a hotel has to pay. In the past few years, Paris has been hit by an economic crisis and its hotels have struggled to cope with it. A recent change in French law now allows residents to let their residences for up to 4 months a year without having to pay the taxes that hotels have to pay, which Airbnb is taking advantage of. The Bristol, the Four Seasons and the Plaza Athenee have all reported a drop in revenue over the year.
The rapid rise of Airbnb is worrying Paris' luxury hotels, who are already trying to grapple with a downturn in foreign visitors due to a downturn in economies in Russia, Brazil etc. In the past few years, Paris has been hit by an economic crisis and its hotels have struggled to cope with it. A recent change in French law now allows residents to let their residences for up to 4 months a year without having to pay the taxes that hotels have to pay, which Airbnb is taking advantage of. The Bristol, the Four Seasons and the Plaza Athenee have all reported a drop in revenue over the year.