impacts of the exponential growth of tourist accommodation in rental houses in spain, driven by p2p...

Impacts of the exponential growth of tourist accommodation in rental houses in Spain, driven by P2P models and marketing platforms

Socioeconomic implications and recommendations for a new regulatory framework

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WHAT IS EXCELTUR?

”EXCELTUR, Alianza para la Excelencia Turística” (“Alliance for the Excellency in Tourism”), is a non profit tourism association formed by the Chairmen of the 24 leading Spanish tourist groups from the following sectors: Airlines, railways, cruises, hotels, travel agencies, tour operators, credit cards, rent-a-car, theme parks, tourist hospitals, and GDS’s. EXCELTUR was incorporated at the end of 2001, with the following main goals: To raise the awareness and promote a better knowledge and understanding of the

socioeconomic importance of tourism, the job creation capacity, and its multiplying effects over the Spanish economy.

To promote and encourage the highest degree of competitiveness for the Spanish

tourism industry to be able to consolidate its leadership and worldwide presence/investments in the most sustainable manner.

The approximate turnover of all the EXCELTUR´s members exceeded 30 billion Euros in 2014, with a labour force of over 220.000 employees, and direct investments in more than 40 countries of all Continents. The turnover of EXCELTUR’s members approximately represents a 4% of Spain’s GDP.

Tourist accommodation in rental houses: impacts and associated challenges

3

30 interviews with tourism experts

Information sources


120,247 tourist trips collected by official statistical.

2,203 trips analyzed from a survey of tourists from our 4 main origin markets, made by Nielsen

49,123 individual ads of rental properties included in the top 10 P2P platforms

50 questionnaires to neighbors associations

244 regulations in different areas for traditional accommodation, and their translation to the operational costs

A benchmark of worldwide legislation in the top 8 most important tourist destinations

4

7,403,152

4,626,888 4,635,094

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

7,500,000

8,000,000

20012002200320042005200620072008200920102011201220132014

Número de turistas EXTRANJEROS alojados en viviendas alquiladas 2001-2014.Fuente: Frontur (Turespaña)

Niumba(2005) Only-

Apartments(2006)

HouseTrip(2009)

Vacaciones Espana(2006)

Homeaway(2011)

Wimdu(2011)

Rentalia(2012)

Airbnb(2011)

Alterkeys(2012)

Number of foreign tourists staying in rented homes in the period 2001-2014Source: Compiled from Frontur (Turespaña)

A new economic activity, "Hotelization of rental housing“, which grows vertiginously in Spain driven by the penetration of a few P2P platforms of global reach.

+59.7%


Frontur recent data indicate that the cumulative growth from January to May 2015 is 20%.

(*) In the case of housing accommodation for tourist use, includes only supply mediated by P2P platforms

Beds in rental homes Beds in regulated accommodation

Main findings

2,7 millonsbeds in holiday rental

homes in Spain

2,4 millionsRegulated beds

VS

5 Tourist accommodation in rental houses: impacts and associated challenges

215,598

133,274

42,267

39,371

37,654

27,785

25,639

22,833 20,369

11,844

10,802

10,196

Capacity of Accommodation facilities in urban destinations by type (*) Source: Compiled from information published on January P2P platforms in March 2015 and INE

48% of the total supply of urban tourist accommodation in rental houses in Spain are marketed by P2P platforms.

(*) In the case of housing accommodation for tourist use, includes only supply mediated by P2P platforms

Beds in rental homes Beds in regulated accommodation

Main findings

1 out of 11 homes is dedicated to tourist rental housing (8.5%) in the tourist districts of this cities

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A worrying deterioration in the perceived quality of life and living for citizenship.

of the local population declares their quality of life is deteriorating due to the high presence of

homes for holiday rental


Noise (82%

residents affected)

Loss of security

(42% residents affected)

Need for cleaning

(67% residents affected)

Maintenance problems

(75% residents

affected)

Devaluation of identity

elements of neighborhood

life(58% residents

affected)

59%

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Appartment: 56 m2; 2,8 beds

Madrid Barcelona

Traditional renting

Monthly rent: 773€Traditional Renting

Monthly rent : 750€

Renting Via P2P :Monthly turnover:

1.670€Renting Via P2P : Monthly turnover:

1.130€

+46% +123%

Promotes the crowding out of residents in the most central or tourist areas

Distrito centro

2,6% -4,8%

Eixample

9,4% -0,9%

Ciutat Vella

24,5% -3,6%

BarcelonaMadrid

Housing price

Population

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The holiday rental properties for short stays do not attract new segments of tourists to the Spanish destinations Classification of tourists for motives according to the range of accommodation types

Source: Nielsen Survey origin February-March 2015

Relación con el anfitrión

Prestación de servicios (limpieza, restauración)

Ambientación, diseño

Seguridad sobre lo contratado

Capacidad de acoger al grupo

Amplitud de la estancia

Independencia (cocinar, comer a mi hora)

Precio

0.0%

30.8%

21.2%

20.1%

18.2%

17.4%

11.7%

34.8%

6.1%

14.2%

15.1%

15.9%

21.1%

25.3%

45.8%

52.7%

Alojamiento en viviendas de alquiler Alojamientos regladosAccommodation in rental homes Regulated accommodation

Price

Independence (cooking. own meals time

Amplitude of home

Capacity to lodge group

Security of the contracted

Atmosphere, design

Services (cleaning, meals)

Relation with host

The main reasons for selecting accommodation in tourist rental homes in Spain are a better price, and greater breadth of space along the access and availability of kitchen equipment

The search for experiences associated with the possibility of more personalized welcome by the host/ homeowner is only mentioned by 6.1% of tourists

The economic impact of rental properties on a daily destination is 84.8%, lower than the one promoted by the formal offer because:€ 20.3 spent less on accommodation.

€ 16.7 spent less on shopping, dining, and entertainment (official statistics).

It generates a drag effect of € 31.2 less (using input –output tables)

In terms of job creation the difference spreads to 9.8 direct and indirect jobs per 100 beds on housing versus 53.3 in regulated businesses

Directo-Alo-jamiento

Directo-Otros gastos de bolsillo

Arrastre Total

0

20

40

60

80

100

120

140

160

40.748.1

59.8

148.6

20.431.4

28.6

80.4

Usuario oferta reglada Usuario alojamiento en vivenda alquiler turístico

Daily Economic impact in destination by type of accommodationSource: from Familitur. Egatur (Turespaña). Spanish IOT (INE). Units in euros

84.8% above

99.2% above

109.4% above53.1%

above

Regulated accommodation user

Home rental accommodation user

Direct- Accommodation

Direct- Other pocket expenses

Pull effect

9

Servicios de alojamiento en viviendas de intercambio 7%;

23.385 plazas

Most of the real estate properties announced are rarely where the host resides.

In the case of complete houses, it is mainly a real estate product without permanent occupants, and addressed to rent, rather than an inhabited residence.

The supply of rental housing through P2P platforms is mostly a business, increasingly professionalized and substantially more lucrative than traditional lease.

93% of the properties (278,769) of residential tourist accommodation brokered by P2P platforms in December 2014 were in exchange for a payment.The presence of home exchange websites essentially responsive to the collaborative principles was limited to 7%.

Supply of tourist accommodation in rental housing announced through P2P platformsSource: Compiled from information published on P2P platforms in December 2014

Nearly 50% (44%) of the properties present in the P2P portals during this study were managed by companies or owners with more than one ad.

Empresa/ mul-tipro-pietario

44%Particular

56%

Estimation of the ownership structure of tourist accommodation in rental housing in P2P platformsSource: Compiled from information published on P2P platforms (January to March 2015) and INE


Barter houses (7%. 23,385

ads)

Company/ multi owner 44%

Rental holidays (93%.

278,769 ads)

The preservation of consumer rights is not guaranteed in the tourist rental homes, as they are in the rest of regulated accommodation.

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A clear unfair competition: in Spain the regulated establishments must comply with 244 different regulations affecting 24 areas of their activity (introducing an operating cost of 17.9€), while the tourist accommodation in homes should respond to only 6 regulations (0.7€)

REGULATED24 mandatory fields

244 different regulations

Tourist accommodation in rental housing

7 areas partially required compliance6 regulations


30.7 €(Real)

21.7 €(Real)

38.9 €(With equivalent

regulation)

12.8 € (42%)

21.0 € (97%) without

7.8 € - 35%)

0.7 €

Regulatory costsdifference (10.1 €,

33%)

38.9 €

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PROMOTE AND LEAD WITH STATE VISION, A NATIONAL EQUAL LEVEL PLAYING FIELD AND A LEGAL FRAMEWORK TO SORT THIS PHENOMENON, INCLUDING:

1.


Establish with proportionality for each home for tourist use, A SET OF MINIMUM SAFETY GUARANTEES FOR TOURISTS

Promote greater EQUITY IN THE TAX TREATMENT of housing accommodation for tourist use, compared to the existing for other types of accommodation through

ENSURING THE TOURIST INFORMATION RIGHTS AS WELL FOR THE NOTICE TO THE NEIGHBORS, DEMANDING:

Require and detail minimal provisions of basic housing quality, to ensure greater customer satisfaction and, thus, on the entire destination and its positioning in terms of the state of facilities and cleanliness

Require the APPLICATION OF NATIONAL SECURITY PROTOCOLS, sending identification (police record) to the state security bodies of all guests staying in rental homes.

Key recommendations

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Requirement, by each municipality involved, of an ECONOMIC ACTIVITY LICENSE for the provision of accommodation services for tourist in homes, as a measure to ensure good order, and municipal control, of their volume and their growth rates.

3.

Set a ZONING of areas/neighborhoods/districts within the municipal area, where the services of tourist accommodation can be provided, in order to adapt them to the urban model, and social coexistence.


2.ENSURE COMPLIANCE WITH EXISTING REGULATIONS AFFECTING THE TOURIST USE OF RENTAL HOUSING (BOTH STATEWIDE AND IN PARTICULAR REGIONAL AND LOCAL) BY WAY OF

INVOLVING P2P PLATFORMS IN THE COMPLIANCE with the existing law

REINFORCING THE INSPECTOR CAPACITY by enacting the creation throughout the state territory of a mandatory holiday rental homes quality certificate

USE LOCAL POLICY TOOLS TO PRESERVE CITIZEN QUALITY OF LIFE

THANK YOU FOR YOUR ATTENTION.

For more info please visit www.exceltur.org

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