The Airbnb effect: How unregulated short-term stays are leaving Cairns locals in limbo

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As a hospitality worker, Harry* is crucial to welcoming visitors to Cairns but in a twist of irony, he's a casualty of the more than 2,000 short stay listings those very tourists are staying in.

It may sound like a lot – particularly as the city’s grappling with its lowest rental vacancy rate in history – but the number is about half that recorded pre-pandemic.

Dr Thomas Sigler, an economic and urban geographer from UQ, said his short-term rental listings data, which includes both Airbnb and Vrbo (Stayz), peaked at 4,117 listings in December 2019.

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“The pandemic definitely hit Cairns’ short-term rental market, as it did across the state and all of Australia,” he said.

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“The Cairns Regional Council states that there are 73,000 dwellings, so that means about 5 to 6 per cent of properties were listed at the Christmas peak in 2019.

“At present, there are 2034 active listings, so about 3 per cent, according to the most recent available data.

“Redlynch is the one suburb that appears to be rebounding fastest, which is interesting as it doesn’t offer your typical ‘beach tourism,’ while Cairns City, Clifton Beach, Kewarra Beach, Trinity Beach and Smithfield are the most popular suburbs.”

According to SQM Research, the rental vacancy rate in Cairns remained at 0.5 per cent in September, a record low.

The average weekly rent has increased by almost 10 per cent in the past 12 months, with three-bedroom houses going up 13.5 per cent.

An average Cairns three-bedroom home will cost you $497 a week, and you'll need just under $400 to rent a two-bedroom unit.

Meanwhile, the average price of short-term accommodation in Cairns is $260 a night, more than $1500 a week, according to data analysis company AirDNA.

While other short-term accommodation properties like bed and breakfasts and caravan parks attract annual registration fees to Cairns Regional Council, Airbnb owners can fly under the radar fee-free.

It’s the same situation in the Douglas Shire Council, and as Tropic Now understands, across most of Queensland.

“Council does not require Airbnbs to register on the state portal,” Cairns Regional Council’s acting chief executive Mark Wuth said.

“Registration is only required should someone want to establish an accommodation business, and either intends for guests to share facilities or to offer short-term accommodation.”

When asked if the council is considering changing the legislation like Brisbane councillors have done in a bid to push Airbnbs onto the long-term rental market, Mr Wuth said no.

Dr Singler said there’s a few reasons why councils don’t have their eye on Airbnbs and other short-term rentals.

“It’s tough to define a short-term rental property – do you double-tax the motels listed on Airbnb, for example?” he said.

“What about a property that’s rented out while the owners are away?

“How do you set limits? Would you define a maximum number of nights per year, or a minimum number of nights per stay?

“Moreover, what’s the point? Would Cairns and Port Douglas actually want to risk deterring tourism?”

“Also, a common misconception is that Airbnb visitors are all tourists.

“Many are parents visiting their children or vice versa, people in town long-term for medical treatment, visiting workers and researchers, or even locals who need temporary accommodation while renovating.

“Hotel rooms get old after a few nights, as most often don’t offer kitchens or living rooms, so Airbnbs provide a suitable place for visitors staying longer.”

Douglas Shire Mayor Michael Kerr believes there needs to be a balance.

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“Whilst AirBnb provides a great accommodation offering it needs to be in the right locations, suburban residential housing estates is not the appropriate place,” he said.

“We need to ensure we have the appropriate amount of housing for locals to accommodate the number of staff the Shire requires.”

Earlier this year, a campaign was launched to encourage Port Douglas locals to house seasonal workers amid the town’s rental crisis.

Port Douglas has a rental vacancy rate of 0.0 per cent, SQM Research data indicates.

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