Email from Airbnb re: Short Term Rentals in View Royal

Airbnb travel generated $2.5B in economic benefits across BC in 2023

By Airbnb · April 18, 2024 · Community, Policy

Key Takeaways

• A newly-released economic analysis estimates that travel on Airbnb generated more than $2.5 billion in economic impact across BC in 2023 and supported more than 25,000 jobs.
• The analysis shows that for every $100 spent on an Airbnb stay, guests spent an additional $229 on other goods and services such as local businesses, restaurants, attractions, shops, and more.
• The provincial government is putting at risk billions in tourism spending and economic benefits following the strict short-term rental rules coming into effect on May 1.

We’re proud to share a newly-released economic analysis which estimates that travel on Airbnb generated more than $2.5 billion in economic benefits across British Columbia in 2023.¹ ² The analysis finds that, for every $100 spent on an Airbnb stay, guests spent about $229 on other goods and services such as local businesses, restaurants, attractions, shops, and more. This economic activity helps to create an additional income stream for Hosts, fuels visitor spending in communities, supports jobs across multiple industries, and contributes substantial tax revenue for local governments.

Going forward, the provincial government is set to risk this important economic driver, implementing strict new rules in a misguided attempt to address the province’s housing crisis. The rules, taking effect on May 1, also come despite a recent Conference Board of Canada report showing short-term rentals have no meaningful impact on rent across major cities in Canada.

Last year, domestic travel on Airbnb reached new heights across the country, as Canadians explored their own backyard. In 2023, a record number of British Columbians also travelled within their own province on the platform with more than 1.1 million guest arrivals – an almost 10 percent year-over-year increase – bringing tourism to every corner of BC. Home sharing brings a net benefit to communities across the province, supporting British Columbian hosts in earning additional income, helping guests find flexible accommodations that suit their needs, and providing businesses in communities across the province with an influx of tourism spending.

“BC’s new short-term rental law is going to significantly impact the province’s tourism sector, just as peak tourism season arrives – taking extra income away from residents, limiting accommodation options for guests, and potentially putting at risk billions in tourism spending and economic impact. At a time when BC is facing record deficits and economic growth is slowing, these new rules hurt resident hosts, tourists, communities and the economy as a whole.”

– Nathan Rotman, Policy Lead, Canada, at Airbnb.

The report uses insights from IMPLAN Cloud, a software that combines data and analytics, to better understand how home sharing supports economic activity in communities across BC. The analysis looked at direct spending from Airbnb guests, as well as the indirect and induced effects from visitor spending in 2023.

More than 25,000 jobs supported

In 2023, 88 percent of British Columbian Hosts reported that they offered recommendations like restaurants, shops, and other local attractions located in their listings’ neighbourhoods to guests.³ By welcoming guests who then patronize local businesses, Hosts on Airbnb helped support more than 25,000 jobs in BC last year across multiple sectors, including restaurants, arts and entertainment, retail, and more. These jobs generated an estimated $1.4 billion in income for workers in food services and accommodation, arts and entertainment, retail, transportation and other key industries across the province⁴, and with many Airbnb listings located in areas without hotels, this income benefits people in communities outside traditional tourism hubs.

Guests on Airbnb in British Columbia generated $2.5 billion in local spending

In 2023, guests in BC reported that they spent an estimated $229 per day during their trip⁵ with approximately 41 percent of their spending in the neighbourhood of their listing.⁶ In total, guests who travelled on Airbnb across BC generated more than $2.5 billion in visitor spending last year by supporting local small businesses, restaurants, transportation and other establishments.

Hosting can be an economic lifeline for British Columbian residents

Across BC, Hosts rely on the income from home sharing to help make ends meet, save for retirement, or pay for improvements to their home. Last year, the typical British Columbian Host earned approximately $14,400 by welcoming visitors to their community.⁷ According to internal Airbnb survey data, this supplemental income is a lifeline for many Hosts⁸:

• 77% of Hosts in BC say they plan to use earnings to cover the heightened cost of living.
• 56% of Hosts in BC say the income earned has helped them stay in their homes.
• 10% of Hosts in BC say hosting on Airbnb helped them avoid eviction or foreclosure.

$93 million in taxes collected on behalf of British Columbian Hosts

We recently reported that the influx of bookings in BC is also generating significant tax dollars for the province. British Columbian Hosts on the platform generated approximately $93 million in taxes in 2023, bringing much-needed tax revenue for a province that’s projected to face a record high $7.9 billion deficit.

Methodology

The analysis was generated using the IMPLAN calculation process to estimate the economic impact of Airbnb in British Columbia. For this project, the model integrates Airbnb Host earnings and guest spending, which is based on a survey of guests who booked a listing through Airbnb and stayed in BC in 2023. The model includes direct, indirect and induced economic contribution as defined below:

• Direct Economic Effects: refers to the immediate effects of an economic activity. In the context of tourism, direct economic impact refers to spending by tourists on goods and services such as accommodation, meals, transportation, attractions, and souvenirs.
• Indirect Economic Effects: refers to the secondary effects generated by the initial spending in related industries that supply goods and services to the primary industry. These industries provide inputs or support services necessary for the functioning of the primary industry.
• Induced Economic Effects: refers to the tertiary effects resulting from the increased household spending by employees in the directly and indirectly affected industries. This includes the spending of wages earned by employees in restaurants and other establishments as a result of guests’ and hosts’ economic activity.
• Total Economic Contribution to GDP: This is a measure of the contribution to GDP generated by Airbnb activity as a result of direct, indirect and induced effects.
• Total Jobs Supported: Number of full-time, part-time and seasonal jobs supported by the output generated by Airbnb activity. This metric includes direct, indirect, and induced effects.

1. Estimated economic impact based on an internal analysis using the IMPLAN economic impact model, assessing direct, indirect and induced economic activity.
2. All figures CAD unless otherwise stated.
3. According to an internal survey of Hosts in British Columbia from January 1, 2023 to December 31, 2023.
4. Excludes income earned through Hosting.
5. Internal survey of guests in British Columbia from January 1, 2023 to December 31, 2023.
6. Internal survey of guests in British Columbia from January 1, 2023 to December 31, 2023.
7. According to internal Airbnb data, typical refers to median.
8. Internal survey of guests in British Columbia from January 1, 2023 to December 31, 2023.

About Airbnb

Airbnb was born in 2007 when two hosts welcomed three guests to their San Francisco home, and has since grown to over 5 million hosts who have welcomed over 2 billion guest arrivals in almost every country across the globe. Every day, hosts offer unique stays, experiences, and services that make it possible for guests to connect with communities in a more authentic way.