The surge of short-term rentals, such as “flats for a day” and vacation homes, has reached significant levels in Serbia, impacting tourism and the economy. Recently, Minister of Tourism and Youth Husein Memić made headlines with a statement suggesting a crackdown on this type of accommodation via Booking.com, which has been misinterpreted, according to Aleksandar Seničić, director of the National Association of Tourist Agencies.
Seničić explains that the minister intended to promote negotiations for a mutually beneficial relationship with the global booking platform, rather than a total shutdown. He emphasizes that many countries, like Turkey and Hungary, have successfully negotiated terms with Booking.com to suit their local markets without resorting to legal action.
The current state of the market
Seničić highlights that Serbia represents a mere 0.001% of Booking.com’s global booking statistics, but it attracts a significant number of tourists through various platforms. The challenge lies in the considerable “gray zone” of unregulated accommodation, estimated to comprise 30-35% of the market. This issue stems partly from a lack of education regarding the ease of legalizing short-term rentals.
The process to register a short-term rental is relatively straightforward, requiring proof of ownership, a medical certificate, and a registration application to local authorities. In Belgrade, the annual tax for an average three-bed apartment ranges from €300 to €500, which can be easily covered by renting out the space just once a month.
Addressing the gray market
Seničić points out that many individuals remain uninformed about the simple requirements for compliance, leading them to operate illegally. He stresses the importance of educating potential hosts about the benefits of registration, which include the ability to attract tourists while complying with local laws.
Minister Memić’s recent comments highlight the need for regulatory oversight in the industry to ensure fair competition and consumer protection. He believes that new players can benefit the market by keeping prices competitive.
Future collaborations
Seničić suggests that instead of attempting to cut ties with platforms like Booking.com, Serbia should engage in constructive discussions. He argues for the introduction of a system that requires hosts to provide proof of registration and compliance with local regulations before listing their properties.
He believes this could provide a solid framework for cooperation between local authorities and global platforms, ultimately benefiting both sides. As the tourist market in Serbia continues to grow, establishing a formalized and regulated short-term rental industry will be crucial for sustainability and development.
Seničić concludes that rather than viewing registration as a burden, it should be seen as a way to ensure quality and safety in the tourism sector, thereby enhancing Serbia’s reputation as a travel destination.
