An Airbnb host who made a racist remark when cancelling a guest's reservation must pay US $5,000 compensation and complete a university-level course in Asian American studies, according to media reports.

The Airbnb host, Tami Barker, cancelled Dyne Suh's reservation in February saying, “I wouldn’t rent it to u if u were the last person on earth” and “One word says it all. Asian”.

The 26-year-old had booked the mountain cabin in Big Bear, California, for a skiing weekend with friends. When Suh responded that she would report the host to Airbnb for being racist, Barker responded saying, "It's why we have trump... And I will not allow this country to be told what to do by foreigners."

Airbnb spoke out against the incident calling it 'unacceptable" and permanently banned the host from it's booking interface. CNN also reported that Airbnb spokesman Nick Papas said that the company issued Suh a full refund and offered to reimburse the group for a hotel.

California's Department of Fair Employment and Housing (DFEH), took action against the host for displaying racial bias. 

DFEH Chief Counsel Jon Ichinaga said in the ruling, “There is a monetary cost to discriminating in California: a $4,000 minimum penalty for discrimination in places of public accommodation, which the Department will seek in all appropriate cases.” 

Barker has to apologise to Suh, comply with anti-discrimination laws, attend training, take a college level course in Asian American studies, participate in a community education panel, perform volunteer service at a civil rights organization, report rental data to the department for four years and pay $5,000 in damages.

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