Article content continued

These days, Guðjónsson, 33, wonders whether Halifax is the right place for a business like his that sets out to disrupt the status quo. His fear, which others share (and not just in Nova Scotia) is that governments see disruptors as a threat, rather than an opportunity.

On the one hand, BDC Capital, a federal crown corporation, has invested $150,000 in Bungalo. “They like what we’re doing,” Guðjónssson says.

Provincially, though, Bungalo has a problem. The Tourism Industry Association of Nova Scotia, funded by its 1,200 members, has sounded the alarm over websites that match renters with accommodation, especially Bungalo’s much bigger competitor, Airbnb. The association now says it has teamed up with the provincial government to write new rules to rein in this direct trade in places to stay.

“We have regulations in this province that require a license for accommodations,” says Darlene Grant-Fiander, a spokeswoman for the tourism industry association. “Sites like Airbnb are a portal that has allowed a lot of unregulated product to get in front of customers. It has allowed the underground economy to really grow. You have an unlevel playing field. Licensed operators pay tax, and have requirements for fire safety and insurance, and submit a count of their guests. It is inequitable, unsafe, not fair.”

Quebec, too, plans to move against Airbnb this year; its tourism minister said this spring the province would table a bill this year subjecting Airbnb hosts and guests to the “same obligations” as hoteliers and their guests, adding, “a tax is part of the solution.”