Short-Term Rental Ban Proposal Sparks Debate in Colombia

The Colombian Association of Tourist Service Providers (Asohost) has called on the National Government to regulate short-term rentals amid proposed measures prohibiting them. With potential earnings estimated at around US$650 million by 2024, Asohost emphasizes the need to ensure ethical operations and community protection.

Thanks to the promotion of destinations from Cartagena to Medellin, the nation experienced a significant recovery in the short-term and vacation rental sectors. Last year saw the entry of over 5.77 million non-resident tourists, a 23% increase compared to 2022, according to data from the Ministry of Commerce, Industry, and Tourism.

In recent communication via social media, the association responded to the stigmatization experienced by the industry regarding cases of sexual exploitation, specifically in Medellin. Asohost highlighted that the exploitation of minors or women should not be linked to this sector since, although in the last months, three cases of this crime have been found in tourist rental homes in Medellin, this represents less than 0.003% of the properties that provide this service.

Juan Camilo Vargas, executive director of Asohost, stated: “Proper formalization not only ensures better service for travelers but also protects the interests of local communities and ensures that the owners and operators of these homes operate legally and ethically. Instead of stigmatizing this industry, it is essential to work together to promote its formalization and professionalization.”

Short-term rentals boost Colombia’s economy

In 2023 alone, the short-term rental industry generated more than US$610 million in income for the country. Despite increasing demand, the supply has also grown substantially, with over 120,000 properties listed on platforms like Airbnb. For this type of accommodation, Medellin leads in the number of rental properties, with more than 27,151, followed by Bogota (18,097), Cundinamarca (11,383), Bolívar (10,758), and Valle del Cauca (8,568).

The union also explained that the industry contributes significantly to the country’s economy, generating US$899 million, equivalent to 14.7% of direct tourism activity. Likewise, around 64,000 employees and investors, of whom 53% are women, 15% are pensioners, and 14% are young entrepreneurs, could be affected by the measures.

According to data from Oxford Economics, for every US$10 that a person spends on renting a tourist home, US$48 is spent on other items. Therefore, as the association explained on social media, this economic activity has a positive impact in Colombia, as travelers’ spending also covers various sectors such as restaurants, entertainment activities, or local transportation.