As the search for unique travel experiences continues to evolve, vacation rentals have surged in popularity among tourists. However, their significance goes beyond offering travelers a novel way to stay; they also wield a positive influence on the local economy.
In this blog, we'll delve into how vacation rentals contribute to revenue generation in local communities through guest spending on dining and retail, as well as the job opportunities and real estate demand they create.
One of the most prominent avenues through which vacation rentals bolster local revenue is via guest spending.
According to a study the Vacation Rental Management Association (VRMA) conducted in 2022, the state of California accommodated 23.4 million overnight guests who spent a total of $19.4 billion on both accommodations and other spending.
VRMA found that the guest spending, outside of rental costs, equated to $10.9 billion, with food, drink, and retail accounting for 61% of that total. Vacation rental guests typically spend an average of $1,722 per trip on various expenses, creating a ripple effect that enriches the entire community.
With vacation rentals frequently featuring kitchens and spacious living areas, many travelers shop at local grocery stores and restaurants and seek out entertainment options during their stay. This infusion of capital directly benefits the local economy by supporting nearby businesses and fueling job opportunities.
Additionally, vacation rental guests often prolong their stays compared to those in traditional hotels, translating to increased spending in the area over time.
Vacation rentals also play a pivotal role in generating job opportunities within local communities. Property owners frequently hire local cleaning staff, landscapers, and maintenance workers to ensure their properties are well-maintained.
The same VRMA study highlights that vacation rental companies supported a total of 163,929 local jobs in 2022, underscoring their contribution to the local job market. These jobs are vital to the community, offering stable employment prospects and fostering economic growth.
Real Estate Prices
Another avenue through which vacation rentals spur economic expansion is by driving up the demand for local real estate. Many property owners invest in homes with the specific intent of converting them into vacation rentals, thereby increasing the demand for properties in the area.
This heightened demand naturally bolsters property values, benefiting local homeowners and generating additional tax revenue for the community.
Vacation rentals have substantial influence over the local economy, generating revenue through guest expenditures, job creation, and an upsurge in real estate demand. If you're contemplating a vacation rental for your next trip, keep in mind that your spending supports the local community and contributes to the development of a vibrant and sustainable economy!
Find out how AMG Vacation Rentals' HomeWatch services boost local economic growth by utilizing local workers with our specialized services.