Impact of short-term rental regulation on hotel industry: a difference-in-differences approach

Jihwan Yeon, Hyoung Ju Song and Seoki Lee

Annals of Tourism Research, 2020, vol. 83, issue C

Abstract: While short-term rentals such as Airbnb have experienced very rapid growth in recent years, many local governments have been introducing intensive limits, restricting its operations. For example, in 2016, New York State prohibited listing an advertisement for illegal short-term rentals, which has raised an interesting of question whether the regulation affected the performance of the hotel industry or not. This paper, therefore, aims to examine the impact of the short-term rental regulation on hotel performance in an affected state. This study conducted a difference-in-differences technique in comparing the performance of hotels in New York and Washington D.C. Results show that the regulation had a positive ripple effect on the performance of lower-scale hotels.

Keywords: Sharing economy; Peer-to-peer accommodation; Airbnb; Hotel; Regulation effect; Difference-in-differences (DID) (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160738320300839
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:anture:v:83:y:2020:i:c:s0160738320300839

DOI: 10.1016/j.annals.2020.102939

Access Statistics for this article

Annals of Tourism Research is currently edited by John Tribe

More articles in Annals of Tourism Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().