Report: Is Airbnb a Drain on NYC’s Lodging Industry?
Airbnb seems to be taking a big bite out of the NYC lodging pie, to the detriment of the city’s hotels and economy as a whole, according to a recently released report.
Released by the Hotel Association of New York City — an industry trade group representing over 270 city hotels — the study declared that Airbnb “had a negative impact of $2.1 billion” on the industry and economy of NYC between Sept. 2014 and Aug. 2015.
As the report states, it is far more than just lost lodging revenue, which at $450 million, is still considerable, but a hotel’s “ancillary departments,” such as food and beverage services. Losses in the construction sector, lost wages, jobs and tax revenue are also examined.
Over 2,800 jobs are directly lost due to Airbnb, the report states, saying, “Hotels are labor-intensive operations that generate significant employment opportunities for a community. By removing demand from the market, and the need to service those rooms, so too are jobs removed from the market that would handle the operations of those rooms.”
As for lost tax revenues to local, state and federal governments, the study estimates more than $226 million are lost to Airbnb annually.
And these numbers are expected to increase.
"With the Airbnb revenue staged to potentially double in size, we only expect these impacts to grow proportionately and become a more significant and important factor in the competitive landscape of the New York City lodging market," the report said.
"This study not only confirms that Airbnb's operations in New York City have a negative impact on the hotel industry, but it also details the tremendous disruptive reach Airbnb has on the broader city economy and our communities," said Vijay Dandapani, chairman, Hotel Association of New York City.
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