Bye bye B&Bs? Owner worried about industry's future in N.L.
The traditional bed and breakfast industry in Newfoundland and Labrador is feeling the squeeze, but the blame isn't squarely on its hipper counterpart, according to one owner.
"It's not just Airbnb," says Peter Fenwick, who owns and operates Inn at the Cape and is mayor of Cape St. George.
"Bed and breakfasts in the province over the last four or five years have gotten more difficult and more expensive to start and operate."
B&B burdens
Fenwick said there are several reasons why he believes it has become a less enticing accommodation for people to book.
He points to higher taxes levied on that type of property compared to a regular home.
Fenwick said new regulations that took effect a couple of years ago require owners to have credit card machines, which he estimates at an additional cost of up to $1,000 a year.
"A lot of B&B's that only took cash, didn't bother to do that," said Fenwick.
"Then the provincial guide, which is about 90% of their advertising, threw them out and they were no longer listed ... and a number of them have gone out of business since them."
He also cites the "divorce" between the provincial B&B association and Hospitality Newfoundland and Labrador (HNL).
"Up until about last fall, we were nominally a part of HNL and they were supposed to be doing our advocacy for us," he explained.
"We're no longer directly affiliated with HNL ... and as a result, we now have to sort of handle our own business."
Not so fast, says HNL
But the chair of HNL disagrees with several of Fenwick's arguments.
Dion Finlay said Fenwick "has been on the sidelines for years and not privy to the efforts by HNL."
He pointed to Wayne Hallett, who is the B&B representative on HNL's ten-member board of directors.
Finlay insisted the B&B association is not left to fend for itself and he would know that because he owns two B&Bs himself.
"I have grit in the game," he said.
As for the added costs of electronic payment machines, Finlay makes no apologies.
"Do you travel? Do you use Visa? Most of our clients do. We have to keep up with modern times."
Airbnb easy as 1,2,3
Fenwick said some of the market share is disappearing due to the emergence of Airbnb.
"[It's] frankly much more attractive to just call up the Airbnb people and say, 'Ok, you handle everything, you handle advertising, the rating and all that kind of stuff,'" he said.
That's something Finlay, agrees with, at least somewhat.
"This sharing society we're seeing, Uber and Airbnb, we're not necessarily against those things ... but how do we regulate it?" he said.
Finlay said there are constant conversations with people in the tourism industry on how to adapt and stay relevant.
But Fenwick is calling for a sit-down with the provincial government.
"You're killing us here. Why don't you start changing some of these regulations?"
