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Vacation rental market regulation and accommodation supply growth

Author

Listed:
  • David Boto-García
  • José Francisco Baños-Pino
  • Eduardo Del Valle
  • Inés Sustacha

Abstract

Short-term residential vacation rentals (RVRs) have increased their popularity in recent years. Local governments have introduced different regulatory changes to control their supply growth. This paper evaluates a policy intervention in a Northern Spanish destination that has reduced the bureaucratic procedures to officially open a RVR since 2016. We compare the evolution of accommodation growth of RVRs with that of tourist apartments exploiting a panel data set of 78 municipalities between 2013 and 2019. Using difference-in-differences, we provide evidence that the easing of the administrative procedures increased the number of establishments and bed places in RVRs by 5 and 26 units, on average, per municipality.

Suggested Citation

  • David Boto-García & José Francisco Baños-Pino & Eduardo Del Valle & Inés Sustacha, 2023. "Vacation rental market regulation and accommodation supply growth," Tourism Economics, , vol. 29(6), pages 1551-1576, September.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:6:p:1551-1576
    DOI: 10.1177/13548166221110530
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