Last year, short-term rentals in Coachella Valley generated $272 million in overall economic activity and supported 2,539 jobs.
COACHELLA VALLEY, Calif. – March 27 – In California’s Coachella Valley, residents and local tourism economies are enjoying the enormous economic benefits of short-term rentals, according to a new study commissioned by the Short Term Rental Advocacy Center (STRAC).
In the Coachella Valley, short-term rentals generated $272 million in total economic activity in 2013, with $216.5 directly attributable to visitor spending on short-term rentals and related food, retail, recreation, transportation, and other expenses, according to the study by TXP, Inc. For every $100 a traveler spent on lodging, they spent an additional $69 on food, $24 on local transportation, $48 on arts, entertainment, and recreation activities, and $59 on retail shopping.
The study also found short-term rental activity created 2,539 local jobs, primarily in restaurants and bars and in the arts, entertainment, retail and recreation sectors throughout Riverside County. Beyond the $72.2 million in direct spending on short-term rentals, visitors spend money elsewhere in the local economy, which in turn has a ripple, or multiplier, effect.
TXP’s study looked at short-term rental listings of Airbnb, HomeAway and FlipKey in the Coachella Valley and surrounding Riverside County. In 2013, those companies had a combined 265,000 nights booked across 7,754 properties listed in the area. The average Coachella Valley short-term rental user visited the area for 9.1 nights per stay, with an average of 4.4 people in their party.
“With its natural beauty, chic boutiques, luxury spas and rocking music festivals, California’s Coachella Valley attracts a wide range of visitors with diverse interests and budgets,” said Jon Hockenyos, president of TXP and an economist that has conducted scores of local economic impact studies. “Short-term rentals are a valuable asset in the Coachella Valley’s tourism portfolio, providing diversity in accommodations and ultimately creating thousands of jobs and millions of dollars of tax revenue in a community where tourism is an increasingly important driver of the local economy.”
The region has become a popular travel destination due to its annual Coachella Valley Music and Arts Festival, which attracted nearly 300,000 visitors in 2013, more than ten times the attendance in 1999. Due to quickly increasing demand, the study concluded that short-term rentals are a valuable part of the accommodations market in the Coachella Valley.
To download the full report, click here.
About the Short Term Rental Advocacy Center (STRAC)
STRAC was formed in early 2013 by a coalition of short-term rental marketplace stakeholders, working with local residents and short-term rental providers to share information, establish best practices and advance smart short-term rental regulation that safeguards travelers, alleviates neighborhood concerns and provides a framework for ensuring compliance. With 35 local groups across the country, STRAC is facilitating local advocacy efforts aimed at fair and reasonable regulations benefiting all stakeholders. Learn more and sign up for our monthly newsletter at www.stradvocacy.org.
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