Anyone who knows the center of Madrid well can understand the change it has undergone due to tourism: where there used to be a butcher's shop, a fishmonger or a hardware store, there is now a bar, another bar and another bar. Now there is one A study by the Complutense University quantified the phenomenon and established a clear connection between the gastronomy boom and tourism: for every 14 new rooms on the tourist housing platform Airbnb, a restaurant business is opened in the same census section (a territorial unit in which between 1,000 and 2,500 people life).
According to research website InsideAirbnb, Airbnb offers 25,543 accommodations in Madrid. The impact of this platform on property price increases has been studied, but less emphasis has been placed on how it changes neighborhood commerce, says Alberto Hidalgo, principal investigator of this joint study with the Escuela de Altos. Advanced IMT Studies Lucca (Italy), which was published in the Journal of Regional Science.
The authors focused on the period between 2014 and 2019, years in which Madrid experienced a spectacular 60% increase in tourism flows. At this point, the number of Airbnb accommodations studied increased from 2,153 to 12,763 (the researchers excluded listings that did not have recent reviews and those where tourists lived with the guest) and catering establishments (bars, restaurants, fast food outlets, etc.). Cafés) grew from 15,660 to 17,212.
Researchers have wondered whether the growth of restaurants could be due to an increase in the purchasing power of Madrid residents or to changing consumer habits that have made visits to the center more common. However, they introduced statistical control methods that led them to rule out this hypothesis. In fact, they found that the largest increase in bars next to new Airbnb rentals was in census tracts outside the Centro district, such as the neighborhoods of Embajadores, Goya, Palos de Moguer, Recoletos, Trafalgar or near Barajas Airport.
The study also found that the same increase of 14 Airbnb listings in a neighborhood means 11 new hospitality jobs, such as waiters and cooks. This economic impact of Airbnb on restaurant operations and employment was also observed in two other studies in the United States, one in the state of Texas and one in New York City.
The authors assume that hotels are also contributing to the hospitality boom, but chose to focus on the impact of Airbnb because, unlike hotels, these accommodations are more widely distributed across the map of Madrid.
What influences the most is what happens next. So you don't miss anything, subscribe.
Subscribe to
Displaced residents of Madrid
The result of this isolated study shows benefits for the city, but Hidalgo would like to emphasize that this study is the sister of another published last year in which they examined how commerce aimed at neighborhood needs in the areas in as Airbnb grows, disappears and is displaced by these bars and restaurants.
More information
“The economic effect in terms of job creation is positive,” says Hidalgo, “however, we are moving towards a city that is much more specialized in the restaurant sector and that will end up displacing the local population, either because.” is not in the right place or is due to the increase in rental prices. Ultimately it comes down to a political decision about what kind of city we want: Do we want more restaurants or more butcher shops?”
Madrid Mayor José Luis Martínez-Almeida announced in October that he would introduce a new regulation for tourist rentals in 2024, but details of this reform are not yet known. The Conservative city council says it is seeking to inspect and sanction illegal tourist accommodation but defends that tourism has become the “buzzword of the city”. The opposition criticizes Almeida for putting the interests of companies above those of its neighbors. This unrest is palpable in the city, where some residents are packing their bags, tired of the inconvenience caused by tourists.
The authors believe policymakers can build on this research to regulate the market so that Airbnb accommodations are more evenly distributed across cities. They propose to promote this type of tourist offer outside the center, where the most positive effects are observed: “The redistribution of tourist flows throughout the city is crucial for the survival of the sector due to its effects,” they conclude “Harmful Impacts on residents in central areas may lead to anti-tourist backlash that could jeopardize the entire sector.”
Write to the author at [email protected] or [email protected]
Subscribe to our daily newsletter about Madrid here.