Airbnb blames the hotel industry for over-tourism in Europe

BUSINESS HOTELS TOURISM

Airbnb has blamed the hotel industry for “over-tourism” in Europe, as the US short-term rental company responds to criticism from regulators and residents that its services are leading to overcrowding in tourist destinations.

Theo Yedinsky, Airbnb’s vice president of public policy, told the Financial Times that the company is a victim of “cleverness” from local authorities, such as in Barcelona, where protests have been held against the post-pandemic boom in overseas travel.

“It’s not our fault, especially in city centres, but the truth is that the over-tourism is mainly due to hotels,” he said. “It’s totally unfair.”

In recent years, platforms that allow short-term rentals, such as Airbnb, Vrbo and Booking.com, have come under criticism for issues ranging from locals’ inability to find affordable housing to running out of water supplies.

Last year, travellers stayed in short-term rental accommodation for 715 million nights, an increase of 57 million compared to 2023, while the corresponding figure for hotels rose by 73 million to 1.9 billion, according to EU data.

Government measures against short-term rentals are “disappointing,” Yedinsky said, as “politicians are not using data” to examine the “problems that cause over-tourism,” arguing that short-term rentals help alleviate overcrowding by directing tourism to less-traveled destinations.

However, Ilaria Pappalepore, associate professor of tourism at the University of Westminster, said hotels tend to be located in tourist areas, while Airbnb rentals are scattered across the city, leading to an increase in noisy nightlife, rising house prices and overcrowding on public transport in residential areas.

While the majority of overnight visitors to Europe choose to stay in hotels – 63% in 2024 according to EU statistics – the rapid increase in short-term rentals seems to be of more concern to residents.

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