Airbnb: Different Nordic ways to handle new platforms
There is no common footing in the Nordic region on how to regulate the new digital economy. While Icelandic lawmakers have decided a maximum renting period, the discussion just has started in Sweden and Denmark.
By Jakob Esmann
New online platforms are threating ordinary jobs in the service sector. The hotel industry is challenged through Airbnb with people renting out their homes to tourists. But in Scandinavia and the Nordics, different measures are taken on the field.
In Iceland, the politicians have already tried to deal with the Airbnb issue, since the law was unclear. It was necessary also because the tourism in Iceland is increasing heavily, a 29 percent increase on last year.
Now the Icelandic lawmakers have decided that a person can rent out their property for up to 90 days before they have to pay business tax. Also, there is a maximum annual income from renting out ones property on 1 million ISK (approx. 7,200 EUR), and the used property must be registered and fulfill certain health and safety requirements.
In addition, the Swedish tourism and hotel organization Visita wants an appropriate regulation of the Airbnb market in Sweden. “We want everyone to compete on equal terms,” Visita’s CEO Eva Östling told the Swedish newspaper DI. For instance, Visita proposes tax registration for those who rent out their apartments and houses.
The Danish Confederation of Trade Unions, LO, also want a regulation ensuring tax payments and also that the new digital platforms have responsibilities like other employers, although they say they are platforms and not companies. As an example, Danish LO is afraid that workers hired by the platforms won’t get sick pay or any retirement savings at all.
The Norwegian LO shares similar concerns. Its leader Gerd Kristiansen is afraid the sharing economy could undermine organized working life and generally worsen working conditions. On the contrary, Norwegian employers in general are embracing the digital platforms, and try to integrate them into the mainstream economy. The Norwegian right-wing government also seems to share this opinion.