In 2024, Airbnb reached a rather splendid milestone—our 2 billionth guest arrival. This occurred when Wisconsin retirees, Tim and Theresa, stayed with their family in a delightful Airbnb in Sandy, Utah. Across the United States, travelers like Tim and Theresa are booking Airbnbs to reconnect with loved ones and explore new locales. In doing so, they support local economies, from quaint villages to bustling cities, driving significant economic impact throughout the country.
For the very first time, travel via Airbnb supported over a million jobs in the U.S. According to the findings, the typical guest in America spent more than $775 per trip on local amenities such as dining, entertainment, and shopping. This visitor spending helped support over one million jobs nationwide last year, contributing more than $52 billion to labor income.
A noteworthy benefit of Airbnb is its contribution to local economies. Nearly half of guest spending occurred in the neighbourhood of their Airbnb, thus invigorating places that might not otherwise see tourist pounds.
Airbnb’s economic impact is felt in all 50 states, boosting local economies and supporting small businesses. It also generates crucial revenue for state and local governments. Click here to understand the impact Airbnb hosts and guests have in all 50 states.
Newly released estimates show that Airbnb travel generated more than $90 billion in economic activity across the United States in 2024. This record figure reflects contributions made by guests, hosts, and the businesses they frequent.
The substantial benefits extend to local governments too. Airbnb travel generated over $25 billion in tax revenue across the U.S., including $2.4 billion in tourism-related taxes collected and remitted on behalf of hosts—especially crucial when governments face budgetary constraints.
Interestingly, a study by Charles River Associates, commissioned by Airbnb, reveals that over-regulation could be detrimental. Cities like New York, Philadelphia, Boston, and New Orleans might have missed out on as much as $2.4 billion in economic activity annually due to strict short-term rental rules.
Here’s a table summarizing the economic impact:
| City | Potential Economic Loss | Guest Spending Loss |
|---|---|---|
| New York | $X billion | $Y billion |
| Philadelphia | $X billion | $Y billion |
| Boston | $X billion | $Y billion |
| New Orleans | $X billion | $Y billion |
These rigid regulations could deprive local businesses—like cleaners and maintenance providers—of $150 million in revenue annually. Hotels, ironically, emerge as the primary beneficiaries at the expense of renters, visitors, and local governments. This situation has pushed up hotel prices, causing guests to allocate more finances to lodging and less to exploring local communities. Learn more here.
Local authorities have consequently forfeited nearly $200 million in tax revenue annually. New York City alone lost $82 million, funds which could aid in building more affordable housing. Despite intentions, rent in New York has soared post Local Law 18, with no significant change in vacancy rates.
Methodological note
The analysis utilised the IMPLAN economic model, which evaluates three levels of impact:
- Direct: Immediate effects of economic activities, such as tourist expenditures on goods and services.
- Indirect: Secondary effects associated with supporting industries that supply the primary industry.
- Induced: Tertiary effects resulting from increased household spending by employee incomes related to economic activities.
IMPLAN is a renowned regional economic analysis programme. It’s designed to estimate ripple effects of economic activities within specific areas but doesn’t endorse all findings unless stated.
About IMPLAN
IMPLAN has been a cornerstone in economic impact analysis for over 40 years. Initially developed for the U.S. Forest Service, it now aids researchers, policymakers, and decision-makers in understanding economic dynamics, adapting over decades to meet evolving economic inquiries. Discover more about IMPLAN here.
