Complex short-term lets licensing systems could risk a £133m hit to the Scottish Economy
Key figures
In May 2022, BiGGAR Economics carried out a detailed analysis on the economic impact of short-term let licensing on local authorities and the wider tourism sector.
Graeme Blackett, Director of BiGGAR Economic, said: “Amid the combined economic shocks of the pandemic and the rising cost of living, our analysis reveals the potential negative economic impacts that new short-term let licensing could have. Stringent and complex licensing systems could discourage ordinary Scottish families from Hosting. This diminished accommodation supply would increase prices, reducing the competitiveness of the Scottish tourism sector and crucial guest spending in beleaguered sectors like Hospitality.”
The year before the pandemic, travel on Airbnb supported nearly £680m in GVA1 and over 33,000 jobs.
More rural areas also received a significant boost as a result of short-term let activity - with Airbnb supporting nearly £130m in GVA and over 6,400 jobs in the Highlands.
That’s tourism revenue which stays close to where it is spent, supporting local economies and benefiting communities.
The year before the pandemic, travel on Airbnb supported nearly £680m in GVA1 and over 33,000 jobs.
More rural areas also received a significant boost as a result of short-term let activity - with Airbnb supporting nearly £130m in GVA and over 6,400 jobs in the Highlands.
That’s tourism revenue which stays close to where it is spent, supporting local economies and benefiting communities.
Over a third of UK Hosts on Airbnb use income from sharing their own homes to help with rising living costs2, which are projected to increase significantly across Scotland throughout 2022.
As of January 2022, 83% of Hosts in Scotland only had one entire home listing3.
The burden of licensing will impact these Hosts disproportionately, with the cost involved representing a more significant share of their income.
Over a third of UK Hosts on Airbnb use income from sharing their own homes to help with rising living costs2, which are projected to increase significantly across Scotland throughout 2022.
As of January 2022, 83% of Hosts in Scotland only had one entire home listing3.
The burden of licensing will impact these Hosts disproportionately, with the cost involved representing a more significant share of their income.
Beyond a mandatory baseline, each Local Authority has complete control over the type of licensing system implemented in their area.
A costly and complicated system could have a detrimental impact on tourism activity in Scotland, with a potential hit of £133m to the Scottish economy.
Beyond a mandatory baseline, each Local Authority has complete control over the type of licensing system implemented in their area.
A costly and complicated system could have a detrimental impact on tourism activity in Scotland, with a potential hit of £133m to the Scottish economy.
To avoid hampering the local economy and making it difficult for ordinary Scottish families to benefit from tourism, it is important for operators and Local Authorities’ to work together to create systems that work for all.
To avoid hampering the local economy and making it difficult for ordinary Scottish families to benefit from tourism, it is important for operators and Local Authorities’ to work together to create systems that work for all.
1GVA is Gross Value Added
2Internal Airbnb data sourced from the 2021 Compact Survey which surveyed Hosts between Feb 2022 - March 2022. This question had 1,739 respondents with 0% Margin of Error
3Internal Airbnb data as of 1 January 2022 and sourced on 19th May 2022
Figures mentioned above that are not referenced are all extracted from the BiGGAR Economics Report “Scottish Local Authorities Economic Analysis” dated May 2022 commissioned by Airbnb.
Figures mentioned above that are not referenced are all extracted from the BiGGAR Economics Report “Scottish Local Authorities Economic Analysis” dated May 2022 commissioned by Airbnb.