Holiday rental provider Stayz has launched an attack on the Shire of Denmark, after its decision to hike rates for short-stay accommodation owners by 20 per cent.

This is up from the existing 12 per cent premium for holiday homeowners – and it’s expected to come into force next month.

Stayz corporate affairs director Eacham Curry, told Perth LIVE’s Oliver Peterson, the decision is “madness”.

“You wouldn’t see 20 per cent anywhere else in the world, unless it was a blatant cash grab, and that’s what it feels like,” he said.

“The problem is, that this is going to put at risk what we know to be $168 million that goes to a regional economy and supports nearly a thousand jobs.”

The Shire claims the move is aimed at combating a local housing shortage and affordability crisis.

“Yes, we know that there are impacts for local government for affordable housing, but the kind of thing you’re doing by targeting short-term rentals, is simply cruelling your own economic benefit,” Curry said.

“And those houses aren’t going to return to the long-term market for affordable housing purposes, that’s not what they are.”

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