Airbnb is definitely making inroads in New York City’s accommodation business announcing Tuesday it generated US$1.15 billion in economic activity in New York last year, including US$235 million in economic activity outside of Manhattan, and supported more than 10,000 jobs.
The community driven hospitality company released a new study conducted by HR&A Advisors that also found 90% of Airbnb hosts in New York share their primary residence, and 72% use that money to help pay the bills, make ends meet and stay in their homes. The typical host in New York earns about US$640 per month sharing their space for five nights.
This data will most certainly be used by Airbnb to sway state legislators who are working to better regulate shared economy operators and collect sales taxes. The hospitality industry has been asking for laws requiring Airbnb properties to adhere to standards such as safety and security and create tougher policies for unlicensed hotels.
“This study underscores what we’ve always known: Airbnb host are regular New Yorkers who are passionate about sharing their home and their neighborhood with visitors from across the globe,” said Max Pomeranc, Airbnb’s regional head of public policy. “Airbnb is making New York more affordable for more families.”
Pomeranc added that the “more than 80% percent of Airbnb properties in New York are outside of traditional hotel districts, bringing dollars to neighborhoods that have not benefitted from tourism in the past. Airbnb is broadening the impact of tourism in New York and increasing the number of visitors coming to our city.”
Other highlights from the study include:
- When guests stay locally, their money stays locally too as 42% of guest spending happens in the neighborhood where they’re staying.
- Airbnb guests stay longer and spend more than the typical hotel guest. The average Airbnb guest in New York stays 1.9 nights more (5.8 nights total) and spends US$290 more at local businesses (US$1,060 total) than the typical hotel guest.
- Airbnb is growing the city’s economy through visitor spending. Last year 760,000 visitors to New York stayed in Airbnb properties, up 84% from August 2012 to July 2013. Of those, more than 51,000 said they would not have stayed in the city without Airbnb.