Online Short-term holiday rental platforms Issues and Planning responses Study for Australian Coastal Councils Association Professor Nicole Gurran Yuting Zhang The University of Sydney Page 1
About the study Builds on ACCA Survey of Coastal Councils 2017 What s changed since OSTHRs? Specific issues, opportunities and risks arising from online short-term holiday rental (OSTHR) platforms What tools and strategies can address concerns / maximise benefits? Eg. Amenity Tourism Infrastructure costs Potential housing market impacts The University of Sydney Page 2
Approach National/ international planning and policy review 12 case study councils in NSW, QLD, VIC, WA Compilation of available data on OSTHR (NB focus on Inside Airbnb data for consistency / avoid double counting + census & tourism data) 18 interviews and focus groups with 49 planners, holiday rental providers, tourism groups, and local stakeholders in case study communities Identification of potential tools and strategies Guideline checklist for local government The University of Sydney Page 3
The University of Sydney Page 4
National overview of OSTHRs example of Airbnb The University of Sydney Page 5
60,000 Airbnb listing growth - 2016-2017 50,000 40,000 30,000 20,000 10,000 0 2016_04 2016_12 2017_04 2017_12 NSW QLD SA TAS VIC WA ACT NT Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 6
Overview of trends in case study communities Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 7
The University of Sydney Page 8 Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data
3,500 3,000 2,500 2,000 1,500 1,000 500 0 Apr-16 Growth in Airbnb listings Apr-17 Bass Coast Busselton Byron Douglas Eurobodalla Kiama Moreton Bay Mornington Peninsula The University of Sydney Page 9 Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data
What s changed since the rise of OSTHRs? Holiday home/ tourism growth? Interviewees mostly perceived an overall increase in the number of holiday houses Some, but not all reported increases in numbers of tourists, and particularly spreading the seasons From week / 2 week stays to overnights and weekends New types of accommodation permanent houses, rooms Types of tourists New types of tourists / visitation Groups Parties / weddings Increase in international tourists Types of managers / operators New types of holiday home owners rise of commercial operator New industry around managing holiday homes different levels of professionalisation Individual lone operator as well The University of Sydney Page 10
Ratio of occupied/unoccupied homes, census night 1996-2016 gradual long term trend towards more unoccupied (ie. likely holiday) homes 16 14 12 10 8 6 4 2 0 1996 2001 2006 2011 2016 Bass Coast Busselton Byron Douglas Eurobodalla Kiama Moreton Bay Mornington Peninsula Moyne Port Macquarie-Hastings Shoalhaven Sunshine Coast The University of Sydney Page 11 Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data
For instance, the proportion of unoccupied dwellings on census night rose almost 10% in the Sunshine Coast but much of the increase happened by 2006 2016 54% 46% 2011 52% 48% 2006 52% 48% 2001 56% 44% 1996 63% 37% 0% 100% Occupied rate Unoccupied rate The University of Sydney Page 12
And some LGAs are seeing small increases in permanent residents overall, or in accommodation which was once used for tourism The University of Sydney Page 13
The University of Sydney Page 14
In localities where OSTHRs have increased, so too have conflicts between local residents and tourism Neighbourhood and local amenity issues Many of the case study LGAs report rising numbers of complaints Noise, unruly behaviour Dogs Parking / bins / nuisance Issues particularly with Properties accommodating large numbers of guests Event properties Closely settled areas, remote communities, strata properties Unprofessionally managed properties The University of Sydney Page 15
OSTHRs versus traditional tourist accommodation Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 16
Multi-listings: platform tourism and / or the rise of the commercial investor holiday rental landlord? Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 17
Where traditional visitor accommodation supply is limited, OSTHRs now predominate Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 18
Implications for local infrastructure Communities with a high proportion of OSTHRs relative to traditional visitor accommodation, report intense infrastructure pressures during peak holiday periods Parking and traffic Waste management services The University of Sydney Page 19
OSTHRs and tourism Do OSTHRs support tourism strategies? Provide essential & flexible visitor accommodation infrastructure in communities which have limited tourism facilities Allow increased capacity for peak periods and events New forms of tourism Several councils report rise in demand for overnight rather than longer stays Growth in international visitors to areas which traditionally catered to domestic, local demand Groups and extended families Implications for local industry OSTHR reduces likelihood of significant new investment in tourist facilities? Uneven/ unfair regulatory, fees & charges framework The University of Sydney Page 20
Tourism strategy, networks, and visitor experience Some councils /tourism associations connect OSTHRs with wider destination planning strategies including visitor experiences Poor management of properties / guests by rogue operators Information / education for hosts, guests? The University of Sydney Page 21
Some case study councils concerned about potential for OSTHR to exacerbate permanent rental housing supply pressures Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 22
Airbnb listed holiday homes far exceed permanent rental vacancy rates, and this trend is growing 10000% 8000% 6000% 4000% 2000% Trend_frequently available Airbnbs (whole houses) as a proportion of rental vacancy rates 0% Apr-16 Apr-17 Bass Coast Busselton Byron Douglas Eurobodalla Kiama Moreton Bay Mornington Peninsula The University of Sydney Page 23 Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data
Economic motivation for OSTHR attractive property investment and returns similar to permanent rental (finance your holiday house?) The University of Sydney Page 24
Hosting offers flexible income for local residents as well 11-110% of median rents Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 25
9-60% of median mortgage payments Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 26
But proportion of residents who host tourists in rooms / beds is relatively small Council Private rooms % of housing Bass Coast 129 0.5% Busselton 113 0.6% Byron 582 3.7% Douglas 70 1.1% Eurobodalla 74 0.3% Kiama 31 0.3% Moreton Bay 83 0.0% Mornington Peninsula 216 0.2% Moyne 19 0.2% Port Macquarie-Hastings 106 0.3% Shoalhaven 177 0.3% Sunshine Coast 274 0.2% Source: Gurran & Zhang 2018, preliminary analysis based on Inside Airbnb data The University of Sydney Page 27
Summary and conclusions Impacts of OSTHRs vary, reflecting: Existing tourist accommodation / holiday homes Trends in permanent population Type of community / housing Local planning & management framework for residential tourism Local / wider housing market Impacts on tourism sector need to be addressed in local tourism strategies Reduced large scale investment and reinvestment in traditional accommodation? Connection of disaggregated hosts to tourism network Destination quality management Need to improve state / local planning responses Next step in research project is local guidance checklist The University of Sydney Page 28