The solution to short-term lets in rural areas is not to get rid of something that creates jobs, a financial analyst has said.
It follows reports that second homes and Airbnb rentals are putting houses in certain areas beyond the reach of locals, accounting for up to 28% of the housing stock in some blackspots.
Fianna Fáil Councillor for West Clare Cillian Murphy told The Pat Kenny Show short-term lets need to be regulated.
"I've long being advocating for the need for registration and regulation here," he said.
"It's a huge part of our tourism economy, there's no getting away from the value of it economically.
"But I think in the middle of this there is the social value that is being eroded and I think that's a massive, massive problem.
"The short-term letting system has no regulation, no registration; there is no compliance with State directives, they don't have to pay rates.
"In my view they're undermining existing businesses".
'A contributing factor'
Cllr Murphy said other businesses such as guest houses have to comply with planning laws, fire safety and water treatment directives.
"When you sell it you have to include those costs in your sale price - meanwhile the neighbour down the road has none of those costs and can undercut you all the time," he said.
"I don't agree with commentary that would say the short-term let is the cause of all of our issues with regards to property [and] the housing market - it isn't but it is certainly a contributing factor.
"Where I live, Kilkee, we have 1,100 holiday homes; there is a differentiation to be made here between second homes, which are used almost throughout the year, and holiday homes which are literally used for two and a half months of the year.
"We have a problem: our tourism businesses cannot find accomodation for their staff".
Cllr Murphy said some hotels are purchasing accomodation for their workers which is adding a cost to doing business.
'Vital income'
onlineapplication.com CEO Karl Deeter said he believes the benefits outweigh the problems.
"Oxford Economics did a study on the value of Airbnb to Clare as an area and it's in excess of €25 million a year and accounts for about 5% of tourism jobs," he said.
"Get rid of Airbnb? I don't know what Cillian's plan is to replace those jobs and that income to the county - it's vital.
"When you talk about Airbnb not paying rates, that's because they're not commercial buildings, they're actual regular buildings.
"They pay Local Property Tax, the income from that is taxed - it's important not to turn it into some special category as if there's no benefit from it.
"[Cllr Murphy] spoke about the social value: I think the ultimate social value is people having jobs, and this actually helps to create jobs.
"It can have impacts on other jobs but the solution isn't to get rid of something that creates jobs, it's to have more jobs and more in your economy".
Mr Deeter said bringing in standards for short-term lets is "easily done", but warned against changing planning permission for buildings to commercial which could 'lock out' future homeowners.
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