Airbnb: Guests generated $1.4B for Puerto Rico in 2023
The short-term-rental company says tourism spending through its platform sustained 25,000 jobs.
Airbnb guests in Puerto Rico generated more than $1.4 billion in economic contribution in 2023, according to an internal analysis by the short-term-rental company. The financial impact comes from spending on accommodations, transportation, restaurants and attractions, which in turn positively affects other sectors of the island’s economy, the lodging platform explained in its news release.
Airbnb reported that for every dollar spent on accommodation, guests spent an additional $4 on other activities. This includes direct spending on the platform, as well as the “ripple effect” of that spending on other industries, described as indirect and induced economic impacts.
Guest spending contributed to local job creation, sustaining more than 25,000 jobs and generating more than $815 million in wages on the island, according to the company, which explained that the figures exclude the income earned by Airbnb hosts, 92% of whom reside on the island.
“Airbnb is driving economic growth across the island, attracting both international and local tourists. Most importantly, 40% of guest spending occurs in the municipality where they stay, directly supporting local businesses and strengthening communities throughout Puerto Rico,” said Ángel Terral, Airbnb’s country manager for the Caribbean, Mexico and Central America.
In addition to international tourism, domestic tourism has grown significantly, the company continued. In 2023, half of the nights booked by Puerto Ricans on the platform were in spaces within the island. This trend demonstrates a growing preference for exploring new parts of Puerto Rico and fostering inclusive tourism, the company noted.
Airbnb hosts also play a key role in improving the local economy by recommending nearby restaurants, shops and outdoor areas. Approximately 90% of hosts who offered such recommendations directed guests to places in the same neighborhood as their Airbnb space, the company said.
According to the data, guest spending in Puerto Rico took place in several categories, including:
– $569.6 million on restaurants
– $260.9 million on supermarkets
– $245.3 million on shopping
– $283.7 million on transportation
“On the guest side, approximately 50% said they probably would not have visited the neighborhood where they stayed if it weren’t for Airbnb,” the platform said about its role in promoting less-explored areas.
The analysis of Airbnb’s economic impact was conducted using the Implan economic modeling software. It calculates the direct, indirect and induced effects of spending on local economies.
“The model integrates information about Airbnb hosts’ income and guests’ spending during this period. The spending figure is obtained from a survey conducted with guests who booked a listing through Airbnb in the Central Mountain Range of Puerto Rico,” the company said.
Airbnb explained that the model projects the direct economic contribution and the indirect and induced contributions, defined as follows:
- Direct Economic Effect: Refers to the immediate effects of an economic activity. In the context of tourism, the direct economic impact is the initial spending by tourists on goods and services during their trips. This spending includes expenses such as accommodation, meals, transportation, attractions, and souvenirs.
- Indirect Economic Effect: Refers to the secondary effects generated by the initial spending in related industries that supply goods and services to the primary industry. These industries provide inputs or support services necessary for the operation of the primary industry.
- Induced Economic Effect: Refers to the tertiary effects resulting from increased household spending by the personnel of the directly and indirectly affected industries. This includes the spending of income generated by the personnel related to, or as a result of, the economic activity.
