LAST UPDATE | 18 May

Christina Finn

“IT IS HIGHLY coincidental” that Airbnb announced that it will provide grants for rural Ireland at a time when legislation is being progressed to clamp down on short term lets, Social Democrats TD Rory Hearne has said. 

Two weeks after government announced it is moving to ban planning permissions for short-term lets in towns of more than 10,000 people, Airbnb launched its ‘Rural Tourism Fund’, which it said will give a “vital injection to rural areas across Ireland that rely on the benefits of tourism to support local families, businesses and culture”. 

Pledging to pay out €100,000 in grants, Airbnb states that the money they plan to give to local communities will help ”preserve and enhance innovative tourism projects across the country”. 

The Rural Tourism Fund grants range from €1,000 to €10,000 and are available to local organisations and community groups.

The advertisement for the grants has been shared widely on Facebook by local councillors, TDs and some local authorities. 

“I think that it’s highly coincidental that Airbnb are providing grants for rural tourism at a time when legislation is being progressed that should clamp down on short term lets.

“There is a massive housing crisis in rural areas and cities and short term let’s are contributing to that crisis as homes are rented out on Airbnb instead of the long term rental or lived in by a home buyer,” said Hearne.

Following the sign-off at Cabinet of the regulations, due to kick in in May 2026, there was criticism of the move by rural TDs such as Kerry TD and now Minister of State Michael Healy Rae and Cork TD and Independent Ireland leader Michael Collins. 

Children’s Minister Norma Foley, who also hails from Kerry, has also voiced her concerns about the impact such a measure might have on tourism in rural Ireland, such as her constituency. 

Hearne called on the government to clarify if planned restrictions on short-term lets will apply to towns located in Rent Pressure Zones (RPZs) where populations are under the 10,000 threshold provided for in the new regulations.  

Cabinet agreed last month that short-term lettings in towns with populations of more than 10,000 people would fall under the measures. Hearne said it his view the entire country should be covered by short-term let regulations – not just towns with larger populations.

Speaking on RTÉ’s Claire Byrne Show this week, Minister Healy-Rae said while it is extremely difficult for people to get long-term housing in areas such as Killarney, but he doesn’t believe the new regulations for short-term lets is a good idea. 

He stated that tourism is vital to areas such as Killarney, stating that those in the business of short-term lets will not return their properties to the long-term rental sector.

“I am genuinely afraid, because I’m hearing it from the people. They won’t do that,” he said, stating that if the tourism accommodation is curtailed, it will not necessarily mean an increase in long-term rental accommodation, in his view, he said. 

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“We don’t want to cut off the availability for those people [tourists] being able to come, because when they come, remember, they’re supporting local jobs, they’re supporting local industry. So you can’t cut of your nose to spite your face,” said Healy-Rae. 

He called for the provision whereby planning permissions will be banned for towns over 10,000 people should be revisited, stating that Killarney for instance has around 14,000 people living in it.  

Leader of Independent Ireland, Michael Collins TD, also sharply criticised the government’s proposals stating that it threatens to destabilise rural tourism economies, particularly in west Cork. He said there will be far-reaching negative consequences for tourism-dependent communities.

Airbnb has stated previously that it supports introduction of a register for short-term lettings and that it believes short-term lettings have an economic benefit to the Irish tourism economy. 

The Journal asked Airbnb for comment in relation to the new rural Ireland grants and around the timing of the announcement, just shortly after Cabinet signed off on progressing with the regulations. 

A spokesperson for Airbnb said it would not be commenting on the matter.