The local political economy of short-term rentals in Salzburg – manifestations of an entrepreneurial city?

Abstract

Short-term rentals (STRs) and Airbnb as the most prominent representative are increasingly being seen critical as they withdraw housing resources from the housing market in cities that are already expensive and touristy. In some cities, urban tourism encounters increasing criticism, in some cases there is hostility against tourists. Various media and scientific disciplines discuss these developments under the term overtourism. The pressure on political decision-makers to regulate tourism and STRs in particular is increasing. The City of Salzburg with over three million overnight stays per year is exemplary for this. Airbnb’s withdrawal of housing concentrates on inner city and touristic districts and leads to controversies in the already tense housing market. Against this background, the study uses a mixed methods approach to examine the stakeholder structure of Airbnb hosts in the City of Salzburg. The results of a spatial analysis of the STRs in Salzburg and the evaluation of the related qualitative interviews show the special stakeholder structure among Airbnb hosts. Both, “private sharers” and professional hosts, are locals from Salzburg and the latter have well established networks. At the same time, the Airbnb phenomenon is part of a trend towards entrepreneurial urban development. Airbnb creates new rent gaps for landlords. The substitution of regular housing for tourist offers opens up a new source of income for various agents, which does not replace conventional hotel operations, but rather supplements them. The airbnb phenomenon in Salzburg fits into a larger context of effects from earlier decisions on housing and land policies, which overall lead to an increase in segregation and a shortage of affordable housing.