ECONOMIC IMPACT OF TEXAS SHORT-

TERM VACATION RENTALS 2022

February 2023

Prepared for: Vacation Rental Management Association (VRMA)

 Introduction 03
Methodology & data sources

Key Findings 04
Summary economic & fiscal impacts

Visitor Volume and Visitor Spending 05

Size and scope of short-term vacation rental stays, visitors,

CONTENTS
and revenues, both inside and outside of accommodations

Economic Impact Methodology 06

Impact model framework

Total Economic Impact 07

Business sales, jobs, and labor income impacts driven by
accommodations revenues and visitor spending

Accommodations Economic Impact 08

Business sales, jobs, and labor income impacts
driven by accommodations revenues and host and
property manager spending

Other Guest Spending 09

Business sales, jobs, and labor income impacts
driven by guest spending outside of accommodations

Regional Snapshots 11
Snapshots of the economic impact of short-term
rentals across three Texas regions

Appendix 17
Definitions of key terms, and overview of
of methodological approach.
 INTRODUCTION
PROJECT BACKGROUND
Short-term vacation rentals provide The Vacation Rental Management
significant economic value to the state of Association (VRMA) engaged Tourism
Texas, with hosts and property managers and Economics to quantify the significance of
their guests providing sizable contributions to the short-term vacation rental visitor
the Texas economy. Texas short-term economy to Texas. The results of this study
vacation rental visitors spent $8.6 billion on show the significant scope of the short-term
accommodations and other spending in the vacation rental economy to Texas in terms
12-month period ending September 2022, of direct visitor spending and downstream
benefitting households, businesses, and host and property manager spending, along
government alike. with total economic impacts, jobs, and fiscal
(tax) impacts in the broader economy.
By monitoring the size, scope, and impact of
the short-term vacation rental visitor
economy, Texas policymakers gain important
context on the sector and its broader role in
local economies throughout the state.
METHODOLOGY AND DATA SOURCES
To quantify the significance of the short-term • US Census: seasonal second homes
vacation rental visitor economy to Texas, inventory and other housing attributes,
Tourism Economics developed a including housing pricing and value
comprehensive model detailing the far- • Longwoods International: survey data
reaching impacts arising from the spending providing visitor profile characteristics for
of hosts and property managers and visitors. Texas visitors staying in short-term vacation
rentals. Includes spending on and outside of
Short-term vacation rental visitors are defined
short-term vacation rental accommodations,
as those who stayed in short-term vacation
travel party size, and length of stay.
rentals, including units listed on Airbnb, VRBO,
and other online travel agencies or listed
An IMPLAN input-output model was
brokered properties. Visitor spending is
constructed for both hosts and property
defined as the amount spent on
managers and guests of short-term vacation
accommodations, as well as non-
rentals in Texas. The model traces the flow of
accommodations spending in the local area,
visitor and host and property manager-related
such as at restaurants and recreation venues.
expenditures through the Texas economy and
As part of the analysis, Tourism Economics
the effects on employment, wages, and taxes.
prepared estimates of short-term vacation
IMPLAN also quantifies the indirect (supplier)
rental operating characteristics that were
and induced (income) impacts of tourism.
confirmed for reasonability with industry
Tourism Economics then cross-checked these
participants.
findings with employment and wage data for
The analysis draws on the following data each sector to ensure the findings are within
sources: reasonable ranges.
• Key Data Dashboard: short-term vacation
rental scope and performance data for the
state of Texas for the 12-months period
ending September 30, 2022. Includes room
demand, room rates, total room revenue,
and bedrooms booked. 3
 ECONOMIC IMPACTS
KEY FINDINGS
COMBINED ECONOMIC IMPACT
The combined impact of short-term vacation rentals and their guests drove nearly $14.3
billion in business sales in the state of Texas, supporting 83,552 jobs and generating
approximately $1.2 billion in state and local tax revenues.
This analysis segments the economic impact of Texas short-term vacation rentals into two
categories:
• Accommodations revenue and host and property manager spending: the revenue
associated with short-term vacation rentals and the downstream impacts of hosts and
property managers spending revenues
• Other guest spending: visitor spending outside of short-term vacation rentals in the
local economy

ACCOMODATIONS REVENUE & HOST AND PROPERTY

MANAGER SPENDING
In the 12-month period ending September 30, 2022, 19.6 million overnight visitors spent
$3.5 billion on short-term vacation rentals across the state of Texas, occupying 14.6 million
room nights across nearly 76,000 listed properties on 5.4 million trips taken. Spending on
short-term vacation rentals in Texas drove nearly $6.1 billion in business sales, supporting
17,113 jobs and $211 million in lodging tax collections for the state.

OTHER GUEST SPENDING

The 19.6 million Texas visitors staying in short-term vacation rentals spent more outside of
their accommodations than they did on or inside them, totaling $4.6 billion across the food
& beverage, retail, transportation, and recreation sectors, ultimately creating $8.2 billion in
total economic value. This spending supported 66,439 jobs and drove $663 million in state
and local tax revenues.

$8.1B $14.3B 83,552 $1.2B

Total Direct Total Total State & Local
Visitor Spending Economic Jobs Taxes
Impact Supported Generated
 OTHER GUEST SPENDING $4.6 BILLION
For every $100 spent on STVRs, guests Texas Other Guest Spending
spent $131 outside of their accommodations

STVR guests typically spend more at local businesses

than they spent on short-term vacation rentals. For the
typical visitor, the cost of the short-term vacation rental FOOD &
stay represents less than half (44%) of the total BEVERAGE
amount they spent in the local area during their visit. $1.58B
One-third of other guest spending occurred in the food 34%
VISITS & & beverage sector, driving nearly $1.6 billion to Texas’s
restaurants, bars, and grocery stores.
VISITOR SPENDING Just over $1.0 billion was spent in Texas’s retail sector,
Across a range of destinations and seasons, short-term vacation rentals (“STVRs”) provide with a nearly identical amount flowing into local
places to stay for Texas visitors, including residents traveling in-state as well as visitors from transportation, which includes taxis, rental cars, and
RETAIL
out-of-state and abroad. rideshare services.
$1.04B
For the period of October 2021 through September 2022, nearly 76,000 short-term vacation Almost $1.0 billion was spent by STVR guests in the
23%
rental units hosted 5.4 million trips to and within the state of Texas, accommodating 19.6 million recreation sector, including outdoor recreation, and
visitors. Altogether, short-term vacation rental visitors spent just over $3.5 billion alone on short- attractions such as theme parks and sporting events,
term vacation rental stays for the 12-month period ending September 30, 2022 in the state of as well as shows and other forms of nightlife.
Texas. Altogether, short-term vacation rental guests drove
TRANSPORT
$8.1 billion in direct visitor spending in the 12-month
TEXAS SHORT-TERM VACATION RENTAL VISITOR VOLUME period ending September 2022.
$1.00B
22%

RECREATION
$0.98B
19.6M 76K 14.6M $3.5B 21%
Overnight Texas Average Active Occupied Unit STVR Rental $3.5B $4.6B
Visitors Listings Nights Revenue Spending on Other Source: Longwoods
Accommodations Spending International, Tourism
Sources: Longwoods Int’l, KeyData Dashboard, Tourism Economics Economics
Note: Transport only includes
local transportation within the
$8.1 BILLION destination

Total Direct Spending from Short-Term

Vacation Rental Guests in Texas
5
 ECONOMIC IMPACT
FRAMEWORK

DIRECT TOTAL
IMPACTS IMPACTS
Short-term vacation Direct, indirect, and
rental guest induced impacts
spending
ECONOMIC IMPACT
METHODOLOGY INDIRECT IMPACTS
SALES

Our analysis of short-term vacation rental guests in Texas begins with direct visitor RETAIL
ACCOMMODATION Purchases of inputs from suppliers SALES
spending and analyzes the downstream effects of this spending on the broader Suppliers’ own supply chains
economy. To determine total economic impact, we input direct guest spending into a GDP

model of the Texas economy, constructed using an IMPLAN input-output (I-O) model.
The model traces the full extent of industry impacts as dollars flow through the local ENTERTAINMENT/REC
ENTERTAINMENT/REC
SUPPLY CHAIN B2B GOODS & GDP
economy.
SUPPLYEFFECTS B2B GOODS &
SERVICES
JOBS
An I-O model represents a profile of an economy by measuring the relationships among CHAIN SERVICES
PURCHASES
industries and consumers and quantifies three levels of impact: > EFFECTS PURCHASED
FOOD & BEVERAGE >
1. Direct impacts: Visitor spending creates direct economic value within a discrete
group of sectors (such as recreation and transportation). This supports a relative FOOD & BEVERAGE JOBS
WAGES
proportion of spending, jobs, wages, and taxes within each sector.
INDUCED IMPACTS
2. Indirect impacts: Each directly affected sector also purchases goods and services as TRANSPORTATION Consumer spending out of
INCOME HOUSEHOLD
inputs (e.g., food wholesalers, utilities) into production. These impacts are called employees’ wages:
EFFECT CONSUMPTION
indirect impacts or supply-chain effects. TAXES
INCOME
TRANSPORTATION
3. Induced impacts: Lastly, the induced impact is generated when employees whose
wages are generated either directly or indirectly by visitor spending spend those LODGING
wages in the local economy. This is called the induced impact or income effect. INCOME HOUSEHOLD
The Tourism Economics model calculates these three levels of impact - direct, indirect EFFECT CONSUMPTION
RETAIL TAXES
and induced - for a broad set of indicators, including:
• Spending • State Taxes
• Wages • Local Taxes
• Employment

6
 Total Business Sales by Industry Supported by STVRs in Texas
ECONOMIC IMPACT Amounts in $ millions; 12 months ending September 30, 2022

COMBINED IMPACTS

Total Combined Impacts

Amounts in $ millions, except for employment; 12 months ending September 30, 2022

Total Short-Term Vacation Rental Impact

State & Local
Business Sales Labor Income Employment Fiscal Impact
Direct Guest Spending $8,108 $1,972 50,833 $777
Indirect Impacts $3,530 $935 16,655 $202
Induced Impacts $2,627 $726 16,065 $191
Total $14,265 $3,633 83,552 $1,170

Accommodations Spending & Host and Property Manager Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact
Accomodations Spending $3,509 $518 5,197 $399 Total Combined Jobs Supported by STVRs in Texas
Indirect Impacts $1,730 $444 6,702 $65 12 months ending September 30, 2022
Induced Impacts $852 $236 5,215 $43
Total $6,090 $1,197 17,113 $507

Other Guest Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact
Other Guest Spending $4,600 $1,455 45,636 $378
Indirect Impacts $1,801 $491 9,953 $137
Induced Impacts $1,775 $491 10,850 $148
Total $8,176 $2,436 66,439 $663

In total, spending by Texas visitors on short-term vacation rentals and on non-lodging

activities (retail, transportation, recreation, and food & beverages) drove over $14.2
billion in economic activity representing sales at Texas businesses in the 12-month
period ending September 30, 2022.
Direct guest spending on accommodations and other guest-facing industries drives
significant induced and indirect sales and employment in industries that are not
directly guest facing including finance, insurance, and real estate, and business Source: Tourism Economics
services.
Note: in the business sales graph above, short-term vacation rental revenue is
shown in the accommodation sector. In the employment graph, direct jobs
associated with STVRs, such as property management and cleaning services are
shown in the finance, insurance, and real estate and business services industries. 7
 ECONOMIC IMPACT
ACCOMODATIONS REVENUE & HOST
AND PROPERTY MANAGER SPENDING
Accommodations Spending Impacts
Amounts in $ millions, except for employment; 12 months ending September 30, 2022
Economic Impacts State & Local Fiscal Impacts
Business Labor
Sales Income Employment Lodging* Sales Property Other Total
Accomodations Spending $3,509 $518 5,197 $211 $44 $144 - $399
Indirect Impacts $1,730 $444 6,702 - $25 $34 $7 $65
Induced Impacts $852 $236 5,215 - $24 $16 $3 $43
Total Impacts $6,090 $1,197 17,113 $211 $93 $194 $10 $507
Source: Tourism Economics
*State & Local direct taxes of $211M are lodging tax revenues for the state of Texas, and do not include
locality occupancy taxes. Locality tax revenue estimates are included in the regional breakout appendix.

ACCOMMDATIONS SPENDING
DIRECT IMPACTS
Spending of $3.5 billion by visitors on Texas STVRs employed 5,197 people in direct
service roles, including in cleaning services and in property management functions. For
many hosts and property managers, STVRs represent an important source of income. In
this analysis, host and property manager income has been included in direct labor
income. Hosts and property managers have not been counted as direct jobs. Revenues
from STVRs also directly contributed $144 million to property tax collections, and $211
million in state-level lodging tax collections.
HOST AND PROPERTY MANAGER SPENDING
INDIRECT & INDUCED IMPACTS
STVR hosts, as well as service providers such as cleaning and property management
services, purchase inputs from other Texas businesses. These supply chain effects are
referred to as indirect impacts. Example purchases include:
• Utilities, including electrical, water, cable, and internet services
• Cleaning supplies
• Maintenance products & services, performed both by hosts and property managers
themselves and by professional construction & renovation services
• Consumable items for guests, including linens, soap, and groceries, among others
As STVR hosts and property managers and service providers spend a portion of their
income in Texas, it supports additional impacts referred to as induced effects.
Altogether, the over $6 billion of economic activity driven STVR accommodations
spending supported 17,113 jobs in Texas, paying nearly $1.2 billion in incomes.
8
 ECONOMIC IMPACT
OTHER GUEST SPENDING
Summary economic impacts
Amounts in $ millions, except for employment; 12 months ending September 30, 2022
Economic Impacts State & Local Fiscal Impacts
Business Labor
Sales Income Employment Sales Property Other Total
Other Guest Spending $4,600 $1,455 45,636 $276 $85 $17 $378
Indirect Impacts $1,801 $491 9,953 $108 $23 $5 $137
Induced Impacts $1,775 $491 10,850 $107 $34 $7 $148
Total $8,176 $2,436 66,439 491 $143 $29 $663

Source: Tourism Economics

Statewide, short-term vacation rental guests spent $4.6 billion outside of

accommodations during the analysis period. Short-term vacation rental guests support
key areas of the Texas economy through business sales, employment opportunities, and
tax revenues.
The initial $4.6 billion in other guest spending generated over $3.5 billion in indirect &
induced impacts throughout the Texas economy. Indirect and induced business sales
are generated in industries that are not directly visitor facing, as visitor-facing businesses
purchase goods and services, and additionally employ workers who then spend earnings
in their daily lives.
STVR visitor spending outside of accommodations directly supported 45,636 jobs, rising
to 66,439 when indirect and induced impacts are included. Additionally, visitors
supported over $2.4 billion in wages outside of accommodations spending.
Source: Tourism Economics

9
 ECONOMIC IMPACTS
IN CONTEXT

$22 $114 ONE JOB $15,408

MILLION IN TAX SAVINGS FOR EVERY 65 STATE & LOCAL
VISITOR STVR STAYS TAXES PER UNIT
The $1.2 billion in state &
SPENDING PER local tax revenues On average, the The economic activity
DAY generated by short- spending associated associated with Texas
term vacation rentals with every 65 STVR stays short-term vacation
Short-term vacation rental and their guests would supports one Texas job. rentals and their guests
guests spent be equivalent to an Each stay drives $1,491 in brought in
approximately $22 million offset $114 of the state & visitor spending. approximately $15,408
per day in Texas. local tax bill for every in state & local tax
Texas household. revenue per STVR
listing.

10
 TEXAS COASTAL REGION OTHER GUEST SPENDING $712 MILLION
Texas Coastal Other Guest
VISITOR SPENDING 42% of other guest spending by Texas Spending
coastal visitors is in the food & beverage
The Texas Coastal Region contains Cameron, Galveston, and Nueces counties. These industry
three counties include the coastal destinations of South Padre Island, Corpus Christi,
Port Aransas, and Galveston Island. In the Texas Coastal Region, short-term vacation rental
4.5 million overnight visitors stayed in short-term vacation rentals in the Texas guests spent $712 million outside of their
accommodations. Combined with the $900 million FOOD &
Coastal Region, spending just over $900 million on accommodations. BEVERAGE
spend on accommodations, direct visitor spending in
the Coastal region totaled $1.6 billion in the 12 months $303M
COASTAL REGION STVR VISITOR VOLUME
ending September 30, 2022. 42%
42% of other guest spending in the Coastal region was
in the food & beverage industry. This includes
restaurants as well as grocery stores. As a share of
total other guest spending, spending on Food &
Beverage is higher at 44% versus the statewide
4.5M 14.6K 2.9M $900M average of 34%. RECREATION
$163M
Overnight Average Active Occupied Unit STVR Rental Recreation and retail are at similar shares of wallet
relative to statewide averages, though recreation has a 23%
Visitors Listings Nights Revenue
slightly higher share, 23%, relative to the statewide
Sources: Longwoods Int’l, KeyData Dashboard, Tourism Economics
average of 21%.
Transportation spending is lower, at 13% of other guest
RETAIL
spending in the Coastal region, relative to the statewide
average of 22%. $157M
22%

TRANSPORT
$90M
13%
$900M $712M
Source: Longwoods
Spending on Other International, Tourism
Accommodations Spending Economics
Note: Transport only includes
local transportation within the

$1.6 BILLION destination

Total Direct Spending from Short-Term

Vacation Rental Guests in Texas
11
 TEXAS COASTAL REGION
ECONOMIC IMPACT
Coastal Region Combined Economic Impact
Amounts in $ millions, except for employment; 12 months ending September 30, 2022

Total Short-Term Vacation Rental Impact

State & Local
Business Sales Labor Income Employment Fiscal Impact
Direct Guest Spending $1,612 $315 10,290 $188
Indirect Impacts $542 $109 2,918 $36
Induced Impacts $231 $58 1,720 $26
Total $2,385 $482 14,928 $250

Accommodations Spending & Host and Property Manager Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact*
Accomodations Spending $900 $108 1,605 $109
Indirect Impacts $367 $69 1,566 $15
Induced Impacts $110 $28 821 $6
Total $1,377 $205 3,992 $129

Other Guest Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact
Other Guest Spending $712 $207 8,685 $79
Indirect Impacts $174 $40 1,352 $22
Induced Impacts $121 $31 899 $19
Total $1,007 $278 10,936 $121

In total, spending by Texas Coastal Region visitors on short-term vacation rentals and
on non-lodging activities (retail, transportation, recreation, and food & beverages)
drove nearly $2.4 billion in economic activity representing sales at businesses in
Cameron, Galveston, and Nueces counties, for the 12-month period ending
September 30, 2022.
*The $109 million of state & local fiscal impact above excludes estimates of local
lodging taxes. Lodging tax revenue can depend on factors specific to local
jurisdictions. Based on estimated STVR activity in Cameron, Galveston and Nueces,
potential local lodging tax revenue at consistent tax rates and compliance, could total
approximately $61 million annually.

12
 TEXAS METRO REGION OTHER GUEST SPENDING $1.7 BILLION
Texas Metro Other Guest
VISITOR SPENDING For every $100 spent on STVRs in the Texas Spending
metro region, guests spent $141 outside of
The Texas Metro Region contains Comal, Dallas, Fort Bend, Harris, and Travis
their accommodations
counties. These three counties include the urban destinations of Dallas, Houston, and
Austin, as well as suburban destinations outside of cities such as New Braunfels and In the Texas Metro Region, short-term vacation rental
Sugar Land. guests spent $1.7 billion outside of their
accommodations. Combined with the $1.2 billion FOOD &
4.8 million overnight visitors stayed in short-term vacation rentals in the Texas Metro
spend on accommodations, direct visitor spending in BEVERAGE
Region, spending just over $1.2 billion on accommodations.
the Metro region totaled $2.8 billion in the 12 months $665M
METRO REGION STVR VISITOR VOLUME ending September 30, 2022. 40%
40% of other guest spending in the Metro region was in
the food & beverage industry. This includes restaurants
as well as grocery stores. As a share of total other
guest spending, spending on food & beverage is higher
at 40% versus the statewide average of 34%.
5.4M 25.8K 4.8M $1.2B Transportation spending is right at the state-level
TRANSPORT
$369M
Overnight Average Active Occupied Unit STVR Rental average of 22% of visitors’ share of wallet.
22%
Visitors Listings Nights Revenue Retail spending is slightly lower than the state average
Sources: Longwoods Int’l, KeyData Dashboard, Tourism Economics as measured by total share of spending. Retail
spending in the Metro region captured 17% of other
guest spending, versus 21% at the state level.
RECREATION
$339M
20%

RETAIL
$285M
17%
$1.2B $1.7B
Source: Longwoods
Spending on Other International, Tourism
Accommodations Spending Economics
Note: Transport only includes
local transportation within the

$2.8 BILLION destination

Total Direct Spending from Short-Term

Vacation Rental Guests in Texas
13
 TEXAS METRO REGION
ECONOMIC IMPACT
Metro Region Combined Economic Impact
Amounts in $ millions, except for employment; 12 months ending September 30, 2022

Total Short-Term Vacation Rental Impact

State & Local
Business Sales Labor Income Employment Fiscal Impact
Direct Guest Spending $2,824 $754 14,593 $266
Indirect Impacts $1,106 $321 4,167 $73
Induced Impacts $551 $169 2,910 $50
Total $4,482 $1,243 21,670 $390

Accommodations Spending & Host and Property Manager Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact*
Accomodations Spending $1,168 $180 1,211 $129
Indirect Impacts $528 $139 1,479 $23
Induced Impacts $176 $54 932 $11
Total $1,871 $373 3,622 $163

Other Guest Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact
Other Guest Spending $1,657 $574 13,382 $137
Indirect Impacts $578 $182 2,688 $50
Induced Impacts $375 $115 1,978 $39
Total $2,611 $870 18,047 $227

In total, spending by Texas Metro Region visitors on short-term vacation rentals and
on non-lodging activities (retail, transportation, recreation, and food & beverages)
drove nearly $4.5 billion in economic activity representing sales at businesses in
Comal, Dallas, Fort Bend, Harris, and Travis counties, for the 12-month period ending
September 30, 2022.
*The $129 million of state & local fiscal impact above excludes estimates of local
lodging taxes. Lodging tax revenue can depend on factors specific to local
jurisdictions. Based on estimated STVR activity in Comal, Dallas, Fort Bend, Harris,
and Travis counties, potential local lodging tax revenue at consistent tax rates and
compliance, could total approximately $76 million annually.

14
 TEXAS RURAL REGION OTHER GUEST SPENDING $246 MILLION
Texas Rural Other Guest
VISITOR SPENDING For every $100 spent on STVRs in the Texas Spending
metro region, guests spent $131 outside of
The Texas Rural Region consists of Gillespie and Llano counties. These two
their accommodations
neighboring counties include the cities of Fredericksburg, and Llano.
970,000 overnight visitors stayed in short-term vacation rentals in the Texas Rural In the Texas Rural Region, short-term vacation rental
guests spent $246 million outside of their FOOD &
Region, spending over $187 million on accommodations in the 12-months ending
accommodations. Combined with the $187 million BEVERAGE
September 30, 2022. Average daily rate for STVRs across these two counties
measured $346, much higher than the statewide average of $241. spend on accommodations, direct visitor spending in $85M
the Rural region totaled $433 million in the 12 months 34%
RURAL REGION STVR VISITOR VOLUME ending September 30, 2022 across Gillespie and Llano
counties.
34% of other guest spending in the Rural region was in
the food & beverage industry. This includes restaurants
as well as grocery stores. As a share of total other RETAIL
guest spending, spending on food & beverage was $55M
970K 2,800 543K $187M right at the statewide average of 34%. 23%
Retail spending is slightly higher than the state average
Overnight Average Active Occupied Unit STVR Rental
as measured by total share of spending. Retail
Visitors Listings Nights Revenue
spending in the Rural region captured 23% of other
guest spending, versus 21% at the state level. TRANSPORT
Sources: Longwoods Int’l, KeyData Dashboard, Tourism Economics
$53M
22%

RECREATION
$52M
$187M $246M 21%
Spending on Other
Accommodations Spending
Source: Longwoods
International, Tourism
Economics
$433 MILLION Note: Transport only includes
local transportation within the
Total Direct Spending from Short-Term destination
Vacation Rental Guests in Texas

15
 TEXAS RURAL REGION
ECONOMIC IMPACT
Rural Region Combined Economic Impact
Amounts in $ millions, except for employment; 12 months ending September 30, 2022

Total Short-Term Vacation Rental Impact

State & Local
Business Sales Labor Income Employment Fiscal Impact
Direct Guest Spending $433 $89 2,768 $43
Indirect Impacts $134 $22 723 $9
Induced Impacts $49 $10 325 $4
Total $617 $121 3,815 $56

Accommodations Spending & Host and Property Manager Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact*
Accomodations Spending $187 $19 270 $23
Indirect Impacts $68 $12 271 $3
Induced Impacts $17 $3 111 $1
Total $273 $34 652 $28

Other Guest Spending

State & Local
Business Sales Labor Income Employment Fiscal Impact
Other Guest Spending $246 $70 2,497 $20
Indirect Impacts $66 $10 452 $5
Induced Impacts $32 $7 214 $3
Total $344 $87 3,163 $28

In total, spending by Texas Rural Region visitors on short-term vacation rentals and
on non-lodging activities (retail, transportation, recreation, and food & beverages)
drove $617 million in economic activity representing sales at businesses in Gillespie
and Llano counties, for the 12-month period ending September 30, 2022.
*The $23 million of state & local fiscal impact above excludes estimates of local
lodging taxes. Lodging tax revenue can depend on factors specific to local
jurisdictions. Based on estimated STVR activity in Gillespie and Llano counties,
potential local lodging tax revenue at consistent tax rates and compliance, could total
approximately $8 million annually.

16
 APPENDIX

Methodology Overview Glossary – Economic Impact Definitions

Tourism Economics reviewed data from several sources to estimate the total footprint
of short-term vacation rentals, including units not listed on Airbnb or VRBO, such as Term Description
rentals occurring through brokers. These sources included key Data Dashboard, Inc. Impacts (business sales, jobs, income, and taxes) created directly
which covers de-duplicated listings and revenues for short-term vacation rental units from spending by visitors to a destination within a discreet group
listed on the Airbnb and VRBO platforms, and the US Census Bureau, which estimates Direct Impact
of tourism-related sectors (e.g., short-term vacation rental
seasonal and recreational home inventory.
revenues, recreation, transportation).
Other guest spending was estimated on top of the foundation of rental activity listed
Impacts created from purchase of goods and services used as
above, by layering in survey data from Longwoods International detailing the average
inputs (e.g., food wholesalers, utilities, business services) into
travel party size, and spending shares of Texas visitors staying in short-term-rentals.
Indirect Impact production by the directly affected tourism-related sectors (i.e.,
Further, Tourism Economics prepared estimates of short-term vacation rental operating
characteristics that were confirmed for reasonability with industry participants.
economic effects stemming from business-to-business
purchases in the supply chain).

Glossary – Spending Definitions Impacts created from spending in the local economy by
Induced Impact employees whose wages are generated either directly or indirectly
Term Description by visitor spending.
Accommodations Visitor spending on short-term vacation rentals. Jobs directly and indirectly supported by visitor activity (includes
Employment
part-time and seasonal work).
A property active and available for short-term vacation rental
Active Listing Income (wages, salaries, proprietor income and benefits)
use. Labor income
A night stayed by a visitor in a short-term vacation rental. One supported by visitor spending.
Occupied Unit
trip staying at one listing for three nights would be 3 occupied Value Added The economic enhancement a company gives its products or
Night (GDP)
unit nights. services before offering them to customers.
Spending on goods, services, and experiences by visitors outside City and county taxes generated by visitor spending. This includes
Other Spending of accommodations, such as restaurants or attraction entrance any local sales, income, bed, usage fees, licenses and other
Local Taxes
fees. revenues streams of local governmental authorities – from
Food and Includes all visitor spending on food & beverages, including at transportation to sanitation to general government.
beverage restaurants, bars, grocery stores and other food providers. State tax revenues generated by visitor spending. This includes
Includes visitor spending within the arts, entertainment and State Taxes sales, income, corporate, usage fees and other assessments of
Recreation
recreation sub-sector. state governments.
Includes visitor spending in all retail sub-sectors within the local
Retail
economy, such as clothing.
Includes visitor spending on local transport services such as
Local transport
taxis, limos, trains, rental cars, and buses.
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 ABOUT TOURISM ECONOMICS

Tourism Economics is an Oxford Economics company with a singular objective:

combine an understanding of the travel sector with proven economic tools to answer
the most important questions facing our clients. More than 500 companies,
associations, and destination work with Tourism Economics every year as a research
partner. We bring decades of experience to every engagement to help our clients
make better marketing, investment, and policy decisions. Our team of highly-
specialized economists deliver:
• Global travel data-sets with the broadest set of country, city, and state
coverage available
• Travel forecasts that are directly linked to the economic and demographic
outlook for origins and destinations
• Economic impact analysis that highlights the value of visitors, events,
developments, and industry segments
• Policy analysis that informs critical funding, taxation, and travel facilitation
decisions
• Market assessments that define market allocation and investment decisions
Tourism Economics operates out of regional headquarters in Philadelphia and Oxford,
with offices in Belfast, London, Frankfurt, Ontario, and Sydney.
Oxford Economics is one of the world’s foremost independent global advisory firms,
providing reports, forecasts and analytical tools on 200 countries, 100 industrial
sectors and over 3,000 cities. Our best-of-class global economic and industry models
and analytical tools give us an unparalleled ability to forecast external market trends
and assess their economic, social and business impact. Headquartered in Oxford,
England, with regional centers in London, New York, and Singapore, Oxford Economics
has offices across the globe in Belfast, Chicago, Dubai, Miami, Milan, Paris,
Philadelphia, San Francisco, and Washington DC, we employ over 400 full-time staff,
including 300 professional economists, industry experts and business editors—one of
the largest teams of macroeconomists and thought leadership specialists.

For more information:

[email protected]

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