The purpose of this notice is to inform you about the recent approval of the decree amending the denomination, as well the reform and addition of various provisions to the Federal District Tourism Law (Ley de Turismo del Distrito Federal now Mexico City, the “Reform”) published in the Official Gazette of Mexico City on April 4th, 2024.
Objective
The objective of the Reform is to establish a regulatory framework that provides certainty and legal security to users and service providers of various digital platforms that offer accommodation services, given their sustained and significant growth in recent years.
The Reform arises due to the dissemination and growth of various occasional tourist accommodation platforms (such as Airbnb, Couchsurfing, Flipkey, among others) which currently do not require any permits for their operation. Conversely, hotels currently require compliance with 44 permits from 7 different government agencies. Therefore, the purpose of the Reform is to promote greater equity between digital accommodation platforms and hotels.
While the hospitality industry has many existing requirements, the implementation of the Reform seeks to close the equity gap by imposing additional requirements on the digital accommodation industry. These requirements are designed to ensure the safety and quality of service for guests, as well as to regulate competition.
It is important to note that the more regulated digital accommodation platforms are, the more security guests shall have, the better the quality of service that can be guaranteed; in addition to avoiding abusive charges and tax evasion, among other benefits.
The Reform foresees the creation of a Host Registry and a Technological Platforms Registry (the “Registries”). The Registries will encompass: i) applications or apps; ii) websites; and iii) social media platforms. The Mexico City Ministry of Tourism will be the responsible authority for operating and administering such Registries, and in case of any infraction, they shall be penalized pursuant to the Administrative Procedure Law of Mexico City (Ley de Procedimientos Administrativo de la Ciudad de México).
Primary Obligations of Hosts
As key factors and obligations to consider, hosts must:
- Register in the Host Registry of Mexico City;
- Register residential properties made available to tourists; and
- Provide to the Mexico City’s Ministry of Tourism, twice a year during the months of January and July, a report detailing the number of times the properties have been occupied, the total number of nights they have been occupied, and in the event of providing false information, it shall be grounds for removal from the Host Registry.
Primary Obligations of Technological Platforms (through their legal representative)
In addition, under the Reform, the technological platforms shall:
- Request from the Hosts the certificate and registration number issued by the Mexico City’s Ministry of Tourism upon enrollment in the Host Registry as an essential requirement to offer the properties;
- Join the Technological Platforms Registry and keep their registration valid, which shall have a duration of 2 (two) years and must be renewed 30 (thirty) days prior to its expiration;
- Provide the Mexico City’s Ministry of Tourism semi-annually, in the months of January and July, a report detailing the number of times the properties have been occupied, the number of nights occupied during the reporting period, as well as the number of complaints received. In the event of providing false information or failing to submit the documents, it shall be grounds for removal from the Technological Platforms Registry.
The purpose of the Registries is to identify residential properties where the service of occasional tourist lodging is provided and to maintain a reliable database that enables authorities to monitor the proper functioning of the service platform, as well as the payment of corresponding contributions.
Likewise, users of digital accommodation platforms will benefit as they must be informed about their rights and responsibilities when utilizing said platforms. Similarly, authorities must work in concert to ensure the effective implementation of the Reform.
