Foreshadowing the release of a HMAAV Issues Paper detailing the scope of the problem and recommendations for policymakers, HMAAV Chairman, Mr Harry Korpetutuncu has called upon Mayoral candidates in the current Melbourne City Council elections to take a stand on the issue.

"The growing problem of these non-compliant accommodation providers is already causing problems for long-term apartment residents, residential investors, Council revenue and amenity and legitimate accommodation operators", says Mr Korpetutuncu.

"Long-term residents in buildings also used as ‘de facto hotels’ suffer a considerable loss in amenity, due to increased noise and activity from strangers, as well as diminished security.

"These residents, and other investors, also incur significantly higher maintenance costs as a result of cross-subsidising non-compliant accommodation businesses. Furthermore, apartment owners and residents potentially face the voiding of their building’s insurance cover if non-compliant accommodation operates in their building.

"Such non-compliant accommodation operations also unfairly evade the taxes, levies and compliance costs faced by legitimate operators, undermining the concept of a level playing field.

"Importantly, the accompanying increase in untrained, unaccredited operators diminishes the Melbourne tourism experience, thus threatening the industry’s long-term prospects.

"For this reason, it is crucial that Melbourne City Council resolves this issue well in advance of the 2006 Commonwealth Games.

"It would be extremely damaging for tourism if the non-compliant short stay accommodation problem continued to worsen in the lead up to this unique event that will provide a rare opportunity to solidify Victoria’s attraction as a major tourist destination.

"The HMAAV calls upon the Melbourne City Council to take decisive and firm action to address this problem.

"One initial practical measure Council could take is the establishment of a "Residents Hotline", which apartment residents can contact to report any suspected non-compliant or illegal use of an apartment", says Mr Korpetutuncu.

BACKGROUND

The non-compliant accommodation problem manifested itself in Sydney previously and grew in significance until the Sydney City Council took steps to address it. Currently, in Victoria, the problem appears to be largely concentrated in Melbourne’s CBD and Docklands.