México City, October 2024
In order to regulate temporary lodging offered through digital platforms such as Airbnb, regulate the vacation rental market and mitigate unfair competition within the traditional hotel industry, on October 3, 2024, Mexico City’s Government issued a decree by which several provisions of the Tourism Law of Mexico City, the Housing Law for Mexico City, and the Law for the Integral Reconstruction of Mexico City, were amended (the “Decree”).
The Decree includes several limitations and a new regulatory framework for temporary tourist lodging, establishing a maximum occupancy limit for lodging units registered in digital platforms of 50% per year, providing that in case of exceeding such percentage, their registration in the Hosts Registry (Padrón de Anfitriones) may not be renewed, being able to register again one year after the denial date.
Likewise, it is included that, in case of offering more than 3 properties per host or for longer periods, the provisions of the Law of Commercial Establishments must be followed, including, among other things, the registration of the commercial establishment code and the operation notice.
It is important to note that, in accordance with the decree published on April 4, 2024, by which the Tourism Law was amended, several obligations were established for the owners or possessors of properties that offer temporary tourist lodging in Mexico City, as well as for the digital platforms offering these services.
Such reform included, among other things, the implementation of the Hosts Registry and the Digital Platforms Registry, in the first one the Hosts must register and comply, among other things, with the following requirements:
- Register the properties offered to tourists
- Provide clear and detailed information on the characteristics and prices of the property being offered
- Keep an updated record of the occupancy of their properties
- Provide every six months a detailed report of such registry to the Secretary of Tourism of Mexico City
On the other hand, it was established that the technological platforms must register in the Digital Platforms Registry, and comply, among other things, with the following:
- Keep their registration updated, renewing it every two years
- Request from the hosts the registration certificate and folio granted by the Secretary of Tourism
- Provide the Secretary of Truism, every six months, with a detailed report of the properties occupancy
Finally, by means of the Decree, the Housing Law and the Law for the Integral Reconstruction of Mexico City were also amended to prohibit the use of social and popular properties and reconstruction housing programs for temporary tourist lodging.