How does AirBnb affect local Spanish tourism markets?

Abstract

Abstract This paper analyses the effects of AirBnb on the size of local tourism markets using AirBnb occupancy rates and hotel overnight stays in order to explore the causal relationship in several Spanish cities. A dynamic panel data model is applied at the city level (2014–2017). Our findings show a positive relationship between the increase in the number of properties offered on AirBnb and the implicit volume of tourists received by each city, specifically in two large cities (Madrid and Barcelona), due to higher AirBnb occupancy rate.

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