eCase Note 2023 No. 02
On April 4, 2023, the Government of Newfoundland and Labrador proclaimed the new Tourist Accommodations Act, SNL 2020 c. T-6.1 and Tourist Accommodations Regulations, which seek to strengthen operating rules for short-term accommodations in the province. The new Act and Regulations also aim to prohibit unlicensed operators using websites such as Airbnb and Vrbo to list their unlicensed short-term tourist accommodations.
Under the Act, a short-term rental is defined as providing to an individual or group of individuals overnight lodging for a period of 30 days or less. Tourist accommodation is defined as an accommodation that is offered for short term rental to the travelling or vacationing public. Therefore, any person operating a rental property to the travelling or vacationing public for a period of 30 days or less will be subject to by the Act and Regulations.
In addition, the Act and Regulations apply to a wide variety of accommodations, including, but not limited to, buildings, cabins, cottages, land maintained as grounds for tents, trailers, recreational vehicles and boats.
Registration Requirements
Pursuant to the Act, a person, including a corporation, cannot operate a tourist accommodation unless it is registered in accordance with the Regulations. Under section 3 of theRegulations, an operator of a tourist accommodation, including those listed on Airbnb and Vrbo, must apply to register it before commencing operations. The application will require the operator to provide the following information:
- the legal name of the operator;
- the operating name of the tourist accommodation, if any;
- the address of the tourist accommodation;
- the type of accommodation offered;
- the number of units offered for short term rental in the tourist accommodation;
- the total number of bedrooms contained in all units offered for short term rental in the tourist accommodation; and
- any additional information required by the minister.
If the information provided by the operator changes, the operator must provide updated information to the Department of Tourism, Culture, Arts and Recreation in writing, within 60 days.
Access to the Registration Information
The Department may disclose the information collected for the purpose of registration as follows:
- to a person where the disclosure is necessary for the administration or enforcement of the Act and Regulations;
- to a public body as defined in the Access to Information and Protection of Privacy Act, 2015 for the purpose of the public body administering or enforcing an Act of the province; and
- to a platform operator for the purpose of confirming registration of a tourist accommodation under the Act where the platform operator has signed an agreement to comply with conditions set by the minister.
The Regulations define a platform operator as a person, including a corporation, who facilitates or brokers reservations for the short-term rental of tourist accommodations and who receives compensation in connection with a person making or completing a reservation for a short-term rental. Therefore, the Regulations allow the Department to disclose information collected to companies such as Airbnb and Vrbo for the purpose of confirming that any short-term tourist accommodation listed on their site is in compliance with the registration requirements under the Act and Regulations.
Consequences for Failure to Register
Any person, including a corporation, who fails to comply with the registration requirements under the Act andRegulations, may be found liable for financial penalties of not less than $250 and not more than $2,000.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.