Hi, I first heard you on Amit Verma Seen Unseen podcast . Then read Orienting . Suggested both , podcast and the book to my niece. I’ve been a big fan of the way you articulate things .
“They may lack the confidence to travel solo and therefore choose the kind of package tours that provide them some of the comforts of “home,” even as they dip a toe into what can feel frighteningly foreign. The ability to be cosmopolitan is a privilege rather than a virtue.”
Another unintended consequence of mass tourism is the mushrooming of AirBnb type accommodations in popular tourist destinations and their crowding out effect upon housing availability for local residents.
Reykjavik, Iceland provides an interesting case study.
I cite from a report from an Icelandic bank, Arion Bank:
"The effect of AirBnB on the increase of property values are twofold, ..
- First of all, it leads to an increased expectation of profit for renting a room or apartment in that people are ready to pay a higher amount.
- Second of all, AirBnB reduces the supply in the apartment market. The first effect is difficult to quantify but carries with it the great increase of property values in downtown Reykjavík.”
Lack of affordable housing near your place of work can push residents away to distant suburbia and the attendant extended commute times for working parents - not to forget children in the household who also might have to commute to school.
The disruptions and shocks to rental markets that AirBnb type phenomena create almost always affect the working poor, the disabled or others at the lower echelons of the socio-economic ladder. However, Iceland is increasingly reliant on tourist arrivals and AirBnbs have answered the demand for tourist accommodation. So, as the economist would say:
".. On the one hand .. but on the other hand .."
I guess, there is still no solution to President Harry Truman's wish:
"Give me a one-handed Economist. All my economists say 'on hand...', then 'but on the other...” !!
And whilst Icelanders, like President Truman might never get a one-handed economist, I guess a judicious mixture of government policy to ensure that some sort of subsidised housing is made available, enacting some restrictions on the amount of AirBnb renting and long term attempts to increase housing supply could do the trick. At least in theory..
But they also say the following about economists:
"An economist is a man who knows a hundred different ways to make love, but not a single woman" !
Hi, I first heard you on Amit Verma Seen Unseen podcast . Then read Orienting . Suggested both , podcast and the book to my niece. I’ve been a big fan of the way you articulate things .
“They may lack the confidence to travel solo and therefore choose the kind of package tours that provide them some of the comforts of “home,” even as they dip a toe into what can feel frighteningly foreign. The ability to be cosmopolitan is a privilege rather than a virtue.”
This is so very right .
Thank you! Appreciate it.
Made my day to hear this! Thank you.
A very balanced and nuanced post, food for much thought.
Thank you! Appreciate you writing in.
Another unintended consequence of mass tourism is the mushrooming of AirBnb type accommodations in popular tourist destinations and their crowding out effect upon housing availability for local residents.
Reykjavik, Iceland provides an interesting case study.
I cite from a report from an Icelandic bank, Arion Bank:
"The effect of AirBnB on the increase of property values are twofold, ..
- First of all, it leads to an increased expectation of profit for renting a room or apartment in that people are ready to pay a higher amount.
- Second of all, AirBnB reduces the supply in the apartment market. The first effect is difficult to quantify but carries with it the great increase of property values in downtown Reykjavík.”
Lack of affordable housing near your place of work can push residents away to distant suburbia and the attendant extended commute times for working parents - not to forget children in the household who also might have to commute to school.
The disruptions and shocks to rental markets that AirBnb type phenomena create almost always affect the working poor, the disabled or others at the lower echelons of the socio-economic ladder. However, Iceland is increasingly reliant on tourist arrivals and AirBnbs have answered the demand for tourist accommodation. So, as the economist would say:
".. On the one hand .. but on the other hand .."
I guess, there is still no solution to President Harry Truman's wish:
"Give me a one-handed Economist. All my economists say 'on hand...', then 'but on the other...” !!
And whilst Icelanders, like President Truman might never get a one-handed economist, I guess a judicious mixture of government policy to ensure that some sort of subsidised housing is made available, enacting some restrictions on the amount of AirBnb renting and long term attempts to increase housing supply could do the trick. At least in theory..
But they also say the following about economists:
"An economist is a man who knows a hundred different ways to make love, but not a single woman" !