Photo by: Reuters
Stifling legislation slowing down businesses and innovators will not be tolerated in the Western Cape, provincial Economic Opportunities Minister Alan Winde said on Wednesday.
During his budget speech for the province’s Department of Economic Development and Tourism, Winde highlighted that the province was the first local government that required all proposed legislation to be subjected to a regulatory impact assessment before being passed.
“The rise of [online hospitality service] Airbnb illustrates this dilemma,” said Winde, noting that its growth had “thrown the economy wide open”.
“We know that there are regulatory concerns around Airbnb, a fact which is common for most new technology companies. However, we are eager to become a place of learning for disruptors, and are active in engaging these players to ensure they are able to thrive, while meeting good practice standards,” he pointed out.
During March, the number of Airbnb properties in the Western Cape rose from 16 000 to 17 500. “That’s an additional 1 500 households making an income from their spare rooms,” said Winde, suggesting that this would not have been possible if there had been too much red tape.