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Anne Hidalgo, Mayor of the French capital of Paris, which is set to host the 2024 Olympics, has warned the International Olympic Committee of the “risks” inherent in the IOC’s newly signed sponsorship with the accommodation platform Airbnb.

Airbnb was unveiled earlier this week as a Worldwide Olympic Partner in the exclusive category of ‘Unique Accommodation Products and Unique Experiences Services’ and in a deal running until 2028.

In a letter to IOC President Thomas Bach, which was reported by AFP, Mayor Hidalgo expressed her “total determination to make sure regulations relating to rental platforms are reinforced” in Paris, host of the 2024 Summer Olympic Games.

With hotels and traditional accommodation providers concerned that the largely unregulated Airbnb marketplace undercuts their offering, Paris hoteliers are reportedly unimpressed with the IOC’s new partnership, accusing the platform of “destabilising local businesses and competing harshly with traditional hotels”.

The rise of Airbnb has seen some European cities restrict its activities, fearing communities are being impacted by a rise in short-term tourism rentals.

Suggested she might look to make short-term tourist rentals against the law in some parts of the city, Mayor Hidalgo explained “by removing a significant number of lodgings from Paris, Airbnb contributes to rising rents and worsens the shortage of apartments on the rental market, at a cost for all Parisians, in particular the middle class.”

At Monday’s announcement of the Airbnb deal, President Bach defended the brand against criticism that the platform was pricing people out of cities, commenting “it is quite normal that such a disruptive business then needs to settle and needs regulation. This is happening in a dialogue with Airbnb and cities and countries.”

Earlier this year, the Mayor’s office released findings which revealed that the share of unoccupied housing in Paris had jumped by three points, from 14.1% to 17%, over the last five years.

The main reason cited was the boom in tourist rentals driven by dedicated internet platforms, with short-term tourism rentals slowing the supply of sustainable housing in Paris and causes a decrease in the number of inhabitants.

According to the Paris report, the city does not seek to prohibit individuals from occasionally renting their homes, but will fine platforms, like AirBnb, that offer to rent housing that has already been rented 120 days in the year.

Paris took legal action against Airbnb this year in a bid to have the company fined €12.5 million (US$13.8 million) for allowing owners to rent their properties without having them properly registered.

In its defence, Airbnb invoked European law that would exempt the platform from monitoring user activity. The Court of Justice of the European Union is expected to reveal its ruling on the case in 2020.

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