There are so many ways that vacation rentals make a positive contribution to destinations
The vacation rental industry is currently facing an increasing number of new STR regulations. These threaten the future of the industry as some destinations strive to exclude vacation rentals. One example is Barcelona where the current mayor is proposing a ban of all STRs from November 2028.
“The proposed ban on short-term rentals in Barcelona is totally irrational in my opinion. Cities all over the world like Barcelona want to be greener – they invest in public transport, in planting trees, in recycling… And yet they haven’t recognised how short term rentals are part of the solution.
STRs consume less precious resources like water than hotels, they don’t waste food like hotels, they consume a lot less energy than hotels.. and they contribute positively to local economies. Guests spend with local people (and the owner of the STR is likely to be one!) and with local businesses. Tourism is more dispersed in neighbourhoods where travellers don’t usually have access.
We need to bring the sustainability topic in front of regulators to show them the countless benefits that vacation rentals bring to a destination”, emphasised our Co-Founder and CEO, Vanessa de Souza Lage.
In this article, we explore the ways that sustainability offers some powerful solutions to counter the rise of STR regulations.
How does sustainability relate to vacation rentals?
Most destinations claim that they want to be more sustainable and be recognised as advocates of responsible tourism. However, before we get into the detail, it is worth summarising the areas that sustainability covers in relation to the STR industry.
Obviously, a key part of sustainability is the impact of climate change and the need to reduce carbon emissions. Indeed, Barcelona is an area which is feeling the impact of a warming planet. It has been suffering from a four-year drought and this has only just been eased by recent rainfall. As global temperatures continue to rise every year, this situation is likely to continue.
Consequently, reducing energy and water consumption are both critical issues for destinations. Property owners and managers can play an important role in these reductions, which will also benefit their own costs.
Another less publicised aspect of sustainability is the social side – looking after and respecting people. As such, this is particularly relevant in much of the focus of current and proposed STR regulations. Contributing to local communities is a key benefit of vacation rentals as well as offering guests that connection to locals.
How do vacation rentals compare to hotels?
Most of the proposed regulation in the tourism hospitality sector is aimed at short term rentals, not hotels. In this article, we present some data about hotels and compare this to vacation rentals. Of course, there is not so much data available for STRs as, by their very nature, they are run as homes. They are not 24-hour operations. Which is why guests choose them…..
1. Be part of reducing carbon emissions
When we look at electricity, we see an exponential rise in renewable energy, which now makes up nearly one third of global electricity generation. However, that means that more than two thirds of electricity is still running on fossil fuels. And we know that burning fossil fuels is the main driver of climate change.
As a property manager or owner you have a real opportunity to reduce consumption by implementing energy saving measures in your rentals. In turn, this will reduce greenhouse gas emissions and your carbon footprint as a business.
Additionally, you can go even further by changing your electricity supplier to a green tariff or purchase Guarantees of Origin (GOs) in the EU or Renewable Energy Certificates (RECs)* in the U.S.
Lastly, if you are refurbishing, upgrading or building a new vacation rental, you can take the opportunity to install renewable technology. This can often be an attractive choice due to various incentives and grants in many countries.
2. Help destinations reduce water usage
As already mentioned, water shortages are a serious problem with about a quarter of the world’s population affected. Access to water is a basic human right and, therefore, it can breed discontent amongst local residents. This can happen when the locals are forced to ration their water in a destination and view tourists as part of the problem.
In the hotel sector in Spain for example, a hotel guest uses between 200 and 500 litres of water per day. Not surprisingly, a five-star hotel will be at the top of the scale with the average across of all types of hotel being 163.5 litres per guest. Although many hotels have implemented a “reuse” towel policy, the onus is still on guests to indicate that they do not want fresh towels every day. There is often that “holiday mentality” when guests think they are entitled to be pampered as they have paid good money to stay there.
By contrast, a short-term rental with an average of 4 guests only uses about 111 litres of water per guest per day. Unlike hotels, most STRs operate a once-a-week laundry and towel change.
Another area of significant water use is hotel kitchens, where most water is consumed in food preparation and cleaning. Speed is of the essence in restaurant kitchens and saving water is often not top of mind. This is another example of where a vacation rental can be more sustainable than a hotel. One of the attractions of a rental is the provision of a kitchen and guests enjoy cooking there without speed being of the essence. In addition, they will only prepare the food they actually intend to eat.
3. Create less food waste
We have discussed above the impact of hotel kitchens on water usage but food waste of course comes alongside that. The hotel industry generates a staggering average of 289,700 tonnes of waste every year.
In a hotel, managing food waste is a big challenge. Guests expect to have choice and, as such, a hotel usually has to buy more food than it needs. This can vary between 5% to as high as 20%. Food can also be wasted before it even reaches the plate: if it is not stored properly for example. Also appetites vary and different portion sizes are rarely offered.
On the other hand, when guests cook for themselves in a vacation rental, they will usually buy the ingredients they need. They will know the quantities required to feed their group as well as their likes and dislikes. Often, non-perishable items like herbs, tea and coffee are left for the next group to use, reducing the amount of waste.
4. Prevent economic leakage
This is a fairly new phrase as a result of our global economy. It refers to the money which is generated in a particular country or region but then leaves that economy to accumulate profits elsewhere. This business model is particularly common with multinational companies. They generate income across the world and then bring that money back to the country where they are based.
Economic leakage is particularly relevant to all-inclusive mass tourism package holidays where 80% of revenues head overseas. In addition, many tourists stay in hotel chains owned by global businesses and use many of their facilities.
Conversely, most short term rentals are owned by a local person and they are managed by a local property manager with local teams for cleaning, laundry etc. A good property manager will always recommend local retailers, local restaurants and local businesses. Host & Stay are partnered with Sustonica and, as part of their ESG strategy, they recently launched their “ManageGreen” package. This initiative encourages their property owners to promote local businesses and experiences.
Consequently, keeping money in the local economy is a strong argument against the introduction of punitive STR regulations. Vacation rentals benefit local people and businesses. This enables them to share in the profits generated by tourism. Rather than feeling that they just experience the negative effects such as overtourism.
5. Encourage the dispersal of tourists
Undoubtedly, it is the impact of overtourism which is resulting in anti-tourist demonstrations in places like Barcelona and the Canary Islands. Local residents feel that they have to bear the brunt of overstretched public transport services and rising property prices.
However, when you look at the location of most hotels, they are usually in the main tourist areas. This is similar for vacation rentals but there are also many located in areas where there are no hotels. In addition, they are generally more competitively priced than the city-centre rentals. Destinations affected by overtourism have the opportunity to promote less well-known areas in order to facilitate the dispersal of tourists. This approach also allows guests to discover new places (always on the agenda for the modern traveller) and for different local businesses to benefit.
The vacation rental industry has the power to embrace sustainability in order to present a cohesive argument against detrimental STR regulations.
