Airbnb is claiming it’s provided a huge boost to the tune of $402 million to the Vancouver economy, according to a new report by the online home-sharing network.
Along with generating local economic activity, the study also says that over the past year, Airbnb guests and hosts have created the equivalent of 9,100 full-time jobs in Vancouver.
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The economic impact report looks at guest travel from Sept. 31, 2015 to Aug. 31, 2016. It was a period where about 267,000 guests booked their stay with Airbnb hosts in Vancouver and spent almost $180 million at local businesses during their trip.
“When you look at the overall drivers of economic activity in Vancouver, this is a meaningful contributor,” said Dr. Brock Smith, the author of the report and a professor in the Faculty of Business at the University of Victoria.
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Smith said there are more than 4,000 Airbnb hosts and 8,600 listings in Vancouver. He also said the home-sharing network tends to attract visitors who stay longer and spend more in local neighbourhoods; which in turn supports local shops and helps create jobs in the community.
While this study may show that short-term rentals boost the local economy, the City of Vancouver is currently reviewing the regulations surrounding these types of rentals and the impact they’re having on housing availability.
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In September, Vancouver Mayor Gregor Robertson said there is space for short-term rentals in the city, whether owned or rented, to allow residents to supplement their income, but added it’s all about striking the right balance between regulating short-term rentals and protecting the long-term rental supply.
“Housing is first and foremost about homes, not operating a business,” Robertson said.
The city claims the proposed approach will “legalize” approximately 50 per cent of the current short-term rentals available in Vancouver and potentially add over 1,000 homes back into the rental market.
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But if the Airbnb rental supply is decreased or potentially removed from the market will it impact Vancouver’s tourism industry?
Smith says not likely since the data shows that only seven per cent of their customers indicated that if Airbnb services were not available, they would not come to Vancouver or they would instead stay with friends and family.
Most Airbnb hosts, Smith says, are renting out a room in their house to supplement their income; which at about $60/night earns them $6,400 a year in extra money.
It is unclear how Vancouver’s short-term rental market ranks among other cities in Canada but Smith says it is one of the larger Airbnb cities in terms of hosts.
~ with files from Yuliya Talmazan
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