Wednesday, September 5, 2012

Study cites Economic Impacts of Vacation Rentals

A North Carolina study cites important economic contributions made by vacation rentals, including....

• Multi-Industry Impact

The economic impact of vacation rental is far greater than the industry’s share of tourism dollars/taxes: unlike hotels and motels, the industry often plays a prominent role in resort economies by driving local construction, real estate, finance and insurance industries.

• Subsidized Tourist Lodging

Vacation rentals are subsidized by homeowners. This can facilitate tourism in areas where large hotels and resort properties are not economically sustainable. Vacation rentals are often the lodging infrastructure that develops an area’s tourism.

• Direct Support for Local Businesses by Owners & Managers

A significant portion of revenues generated for vacation rental owners and manager goes directly to local businesses that provide supplies, cleaning services, maintenance services, advertising and the many other goods and services that are necessary to operate the rental.

• Direct Support for Local Businesses by Guests

Guests patronize restaurants, tourist attractions, sports attractions, grocery stores, shops, gas stations and a variety of other types of businesses while they stay at vacation rentals.

• Direct Support for Local Government and Community Services

Vacation rentals pay property taxes and lodging taxes that subsidize local government operations.  In turn these monies help pay for roads, and fund things like schools and hospitals.

The industry’s economic impact is not adequately profiled by the standard economic forecasting models today used by most States.

Doug Coates

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