One of the most important things I learned while getting my Tourism and Hospitality Management degree was that Airbnb sucks for tourism. Sure, it’s convenient for travelers, but the impact it has on tourism towns is far from sustainable. In fact, Airbnb’s unchecked growth is fueling a housing crisis in many destinations.
Let me break down why Airbnb is such a problem and how it’s undermining sustainable tourism at every turn.
How Airbnb Is Driving the Housing Crisis in Tourism Towns
Tourism towns are being overwhelmed by the rise of Airbnbs, and the ripple effects are devastating. Here’s what’s happening:
Airbnb is Artificially Inflated Housing Costs
Airbnb owners are driving up home prices by purchasing properties not as residences, but as investments. In tourist towns like Gatlinburg and Vail, buyers will often pay far more than the market value for homes, regardless of their condition. Faulty wiring? Old roofs? Failing septic tanks? These buyers literally do not care. They have the funds to fix up these properties and turn them into short-term rentals.
The result? The average home price skyrockets, leaving locals unable to afford homes—even the ones that are falling apart. In many tourist towns, homes that were once within reach for working families now cost half a million dollars or more, making homeownership impossible for residents.
Lack of Affordable Rentals
In addition to inflating home prices, Airbnb is reducing the availability of long-term rental housing. Properties that could house locals are being converted into short-term vacation rentals instead. This creates a scarcity of rental options, further driving up costs for those who need a place to live. It’s simple supply and demand.
Tourism towns are often notorious for their lack of apartment housing. In many areas, there may be only one or two apartment complexes, creating a monopoly where landlords can raise rents unchecked. With no other options available, tenants are forced to accept skyrocketing rent prices. In places like Gatlinburg, the situation is so extreme that locals are left with no choice but to live in motels.
Airbnb's Impact on Businesses and Tourism Sustainability
You might be thinking, “Okay, Airbnb is making housing expensive, but at least it’s bringing money to local economies, right?” Well, no, not really. The housing crisis Airbnb is fueling has significant consequences for local businesses, tourism sustainability, and the visitor experience.
Staffing Crises in Tourist Towns
One of the biggest issues is that tourism businesses—restaurants, shops, attractions—can’t find enough employees. Why? Because locals can no longer afford to live in the towns where they work.
The cycle goes like this:
- Locals move farther away in search of affordable housing.
- Long commutes discourage them from taking jobs in tourist towns.
- Small businesses can’t compete by offering higher wages because of already razor-thin margins.
The result? Businesses are perpetually understaffed. Lines grow longer, service declines, and tourists start to notice the difference. What used to be a welcoming destination becomes known as an unfriendly, understaffed town.
Economic Leakage
Another sustainability issue is economic leakage—when tourism dollars don’t stay in the local economy. With Airbnb, most of the revenue goes to:
- Out-of-state property owners.
- Large corporations managing the rentals.
- Nearby towns where workers commute from.
In Gatlinburg, most workers live in surrounding towns like Sevierville or Knoxville because they can’t afford to live in Gatlinburg. This means their paychecks are spent elsewhere, further draining the local economy.
Carrying Capacity Overload
Every destination has a tourism carrying capacity—the maximum number of visitors it can accommodate without degrading the environment, economy, or community. One clear sign that a town has exceeded its carrying capacity? A housing crisis.
Again, Gatlinburg is a prime example. The town is packed with Airbnbs and short-term rentals, drawing more tourists than the local infrastructure can support. Businesses are desperate to hire, locals are pushed out, and the community is stretched beyond its limits.
Bulldozing for Cabins and Yurts
Airbnb’s impact isn’t just economic—it’s environmental too. In many tourism towns, forests and natural landscapes are being bulldozed to build more cabins, yurts, and vacation homes. Ironically, this destroys the very attractions that draw tourists to the area in the first place.
These developments also exacerbate the existing housing crisis, prioritizing short-term accommodations over long-term solutions for locals.
Why Sustainable Tourism Requires Local Housing
For tourism to be truly sustainable, it needs to balance the needs of visitors, locals, and the environment. Here’s why housing for locals is a necessity:
Staffing Stability: When locals have access to affordable housing, they can work in tourism businesses, ensuring better service and a positive experience for visitors.
Community Resilience: Local residents are the backbone of tourism towns, contributing to their culture, character, and authenticity. Pushing them out erodes the essence of these destinations.
Economic Sustainability: Keeping tourism dollars local strengthens the economy, supporting small businesses and community development.
What Can Be Done To Stop Airbnb?
Regulating Short-Term Rentals: Many cities are already capping the number of Airbnbs allowed or requiring permits to limit their spread.
Investing in Affordable Housing: Local governments and developers need to prioritize housing solutions for residents.
Educating Tourists: Travelers can support sustainable tourism by choosing accommodations that benefit the local economy, such as locally owned inns or hotels.
Final Thoughts: The True Cost of Airbnb
Airbnb might seem like a convenient option for tourists, but its impact on tourism towns is anything but sustainable. By driving up housing costs, displacing locals, and destabilizing economies, Airbnb is undermining the long-term success of the very destinations it profits from.
As travelers, we have the power to make more conscious choices. By supporting locally owned accommodations and advocating for sustainable practices, we can help protect tourism towns and ensure they thrive for generations to come.
