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Research Report

Changes in Accommodation Types and Regulatory Improvement Measures

Research Summary

 

Ⅰ. Introduction

  • During the COVID-19 pandemic, the decreased demand for travel is rapidly recovering, necessitating the enhancement of both quantitative and qualitative accommodation capacities to respond to the increasing tourism demand.
  • Shared accommodations and residential accommodations (hereinafter referred to as "residential stays") are emerging forms of lodging that can contribute to efficient tourism accommodation capacity enhancement in response to diversified lodging demands. However, there exist acute regulatory issues among stakeholders due to inadequate legal frameworks.

 

Ⅱ. Changes in the Accommodation Market Environment

  • Among various environmental changes related to the accommodation market, the proliferation of the platform economy, changes in consumer demand, and increased national tourism spending have particularly led to the emergence of new forms of accommodation and have facilitated their activation.

 

Ⅲ. Evolution of Accommodation Types

  • Recent accommodation types have evolved diversely, blurring the boundaries between daily life and travel. Future trends such as increased demand for long-term stays and diversified individual demands are expected to contribute to the long-term growth of shared accommodations and residential stays.
  • Among new accommodation types, shared accommodations are rapidly growing, centered around platforms like Airbnb, yet they face issues such as illegal operations.
  • Residential stays, catering to the increasing demand for long-term stays, have high potential for development. However, they still face challenges of illegal residential use and are anticipated to encounter difficulties in transitioning to legal accommodation businesses in the future.

 

Ⅳ. Regulatory Status of Accommodation Industry

  • (Shared Accommodations Related Industries) The scope of legally permissible shared accommodation-related activities is limited. However, many hosts registered with Airbnb are operating illegally. 
  • (Residential Stays) Residential stays, commonly referred to as residences, are accommodations that provide facilities and services, including cooking facilities (kitchens), allowing guests to sleep and rest, as defined by Article 4 of the Public Hygiene Management Act. 
  • Although residential stays are fundamentally accommodation businesses, some speculative buyers use them for residential purposes or engage in illegal operations as residential rental facilities.

 

V. Regulatory Directions for the Accommodation Industry

  • (Shared Accommodations Related Industries) Legalizing unauthorized and illegally operated shared accommodations is a priority, requiring consideration of various regulatory directions. 
  • (Residential Stays) Maintaining the current regulatory framework for residential stays while devising remedies for some actual residents is necessary for institutional implementation.