A new accommodation concept – called Fairbnb – hopes to launch in Malta early next year.
As the name suggests, it’s a take on Airbnb – but insists its model will be more beneficial to travellers, local communities as well as the environment.
Co-Founder Damiano Avellino says around 30 hosts living in Malta have already expressed an interest in the venture – out of around 1,000 people worldwide.
“I came up with the idea when I was living in Bologna,” the 27-year-old says. “I grew up in Rome and could see how much of my city has been ruined by gentrification and tourism. When I got older, I moved to Bologna and saw how it is happening there as well. So, I wanted to take action.”
Mr Avellino – who has a master’s in economics and management – began developing his idea for a business model that donates some of its profit back into the community where the Fairbnb accommodation is located. But as soon as he began researching, he realised that other people in places like Venice, Amsterdam and Valencia were doing the same.
“So, in 2018 we came together as a co-operative and now employ six full-time staff at our office in Bologna. We have structured our business so we can’t be sold to a bigger company like Booking.com.
“When someone pays for their accommodation, they can be assured that half of our fee, or 7.5% of the total accommodation cost, will go to directly to local projects.”
Fairbnb also says it’s a green initiative by encouraging its users not to use plastic bottles and to choose organic restaurants or low-impact activities when they get to their destination. But given that flying is one of the worst offenders of carbon emissions, isn’t this a bit hypocritical?
“I grew up in Rome and could see how much of my city has been ruined by gentrification and tourism”
“We’re going to use the algorithms of our online platform to promote destinations that are closer to where the user lives,” he assures. “We’re hoping that this will encourage them not to travel too far when choosing a holiday.”
A report by the Central of Bank of Malta earlier this month found the number of Airbnbs listed in Malta jumped from 813 properties in 2013 to 6,800 last year – with more than 10 per cent of accommodation in Sliema and St Paul’s Bay being taken up by the short-term letting agency.
When asked if Fairbnb has had any legal pressure from Airbnb about using a very similar name he replies: “I’d prefer not to talk about this.” He gives the same answer when asked if his company will actively be trying to poach Airbnb hosts in Malta.
Mr Avellino continues to sell me his vision. “In the past 40 years tourism has grown seven-fold and is now around 10 per cent of global GDP, but that is creating social and environmental problems. It’s getting harder for young people to find places to live because apartments are being rented out.”
It is fundamental, he says, that people have a right to a safe, affordable home. “So we believe that if we can use some of the revenue brought in by short-term lettings, we can invest millions back into areas that are suffering.”
He and his team hope to be up and running by early next year and managed to secure funding from a co-operative bank about a month ago.