Third-party impacts of short-term rental accommodation: a community survey to inform government responses

Abstract

Short-term rental accommodation (STRA) sharing economy platforms, such as Airbnb, give rise to externalities or negative third-party impacts in neighbourhoods. Governments worldwide continue to grapple with how to best regulate STRA platforms given such externalities, especially in the wake of COVID-19. When STRA is perceived as poorly controlled, anecdotal reports indicate that community resentment around perceived inequities and negative economic, social, and environmental impacts rise. However, little research has systematically investigated community perceptions of STRA, notably Airbnb effects at a local, non-metropolitan level, as well as preferred regulatory responses. This paper examines such community perceptions in one of Australia's top tourism destinations, the Byron Shire. An online survey of 819 residents, identified four positive, eight negative and seven mixed impacts of Airbnb on community. To redress the adverse effects and enhance the sustainable performance of STRA (including Airbnb), a majority of residents favoured several regulatory strategies such as mandatory on-site management of STRA properties and better avenues to report complaints of misconduct. However, with notable reported differences between host and non-host residents. The study thus offers possible regulatory options to support regionally-based local councils as they seek to address opposing community concerns.

Keywords:

• Airbnb regulation
• sharing economy externalities
• impact perceptions
• local government
• Short-term Rental Accommodation
• sustainable development goals

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Notes

1 The sample size relating to each key finding reported in the above sections varies as not all 819 participants answered all pertinent questions.

2 Around 1600 Airbnb hosts account for around 3,500 Airbnb listings in the Shire. The population of adults (>18 years of age) in Byron is approximately 28,000.

Additional information

Funding

This article was supported by Southern Cross University, School of Business & Tourism Cluster Grant.

Notes on contributors

Sabine Muschter

Dr Sabine Muschter Sabine holds a PhD from the School of Business and Tourism at Southern Cross University (SCU), Lismore, Australia where she maintains her academic interests as a research assistant. Her doctoral research focused on the decision-making process of European international students to study abroad and their ensuing travel behaviour during their stay in Australia. Dr Muschter, a German citizen and Australian Resident, is a global citizen having spent extensive time in South Africa, Australian, and New Zealand over the last two decades. In Australia she has established, amongst other things, the partner office for a German company that arranges internships for higher education students Down Under. The international connections give Sabine considerable insight to the various occupations and challenges within the education and tourism sectors.

Rodney W. Caldicott

Dr Rodney W Caldicott Rod is an adjunct fellow within the School of Business and Tourism at Southern Cross University, Australia though currently an international scholar in residence at the Faculty of Interdisciplinary Studies at Khon Kaen University (Nong Khai Campus), Thailand. His political geography and policy studies background focuses his research towards consumer driven “alternative” tourism, leisure and lifestyle pursuits and their associated contributions and impacts on local communities. Dr Caldicott continues to publish internationally, on the politics of stakeholder perception around impacts of ‘disruptive’ models in accommodation, plus leisure and recreation across natural and urban areas.

Tania von der Heidt

Dr Tania von der Heidt Tania is a Senior Lecturer in the School of Business and Tourism at Southern Cross University. She currently teaches in Marketing Principles, Competitive Strategy, Sustainable Business Management for the undergraduate business degree domestically and offshore (Tianjin). Dr von der Heidt's primary research area is creative problem solving and collaboration in product innovation for sustainability marketing and business. Prior to joining SCU, Tania worked for more than ten years in Australia and Germany across sectors of banking, funds management, marketing and pharmaceuticals.

Deborah Che

Dr Deborah Che Deborah is a Lecturer in the School of Business and Tourism at Southern Cross University whose research interests include sustainable economic development, natural resource-based tourism development and marketing, cultural/heritage tourism, and arts-based economic diversification strategies. A common theme in Dr Che's research involves the interconnection between economic restructuring and shifting land uses.