Following the release of a HMAAV Issues Paper detailing the scope of the problem and providing recommendations for policymakers, HMAAV Chairman Mr Harry Korpetutuncu is calling on the new Melbourne City Council to take firm action on this issue.

"The growing problem of these non-compliant accommodation providers is already causing problems for long-term apartment residents, residential investors, Council revenue, City 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 accommodation operators may also not face the same obligations as legitimate operators with regard to taxation and compliance costs, undermining the concept of a level playing field.

"Importantly, the accompanying increase in untrained, unaccredited operators diminishes the Melbourne tourism experience, thus undermining the industry’s credibility and future growth.

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

"It would be 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.

"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.

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, but must be allowed to widen.