Platform Failures – How Short-Term Rental Platforms Like Airbnb Fail Cities

The uneven relationship of short-term rental platforms like Airbnb with cities. A kind tourism that extracts local resources for the economic benefits of few, contributes to social exclusion of many.

A report written by Murray Cox, the data activist founder of Inside Airbnb, and Kenneth Haar, of Corporate Europe Observatory, provides insights on how short-term rental platforms have become one of the biggest exclusionary drivers in large tourist cities.

Report’s Highlights. Platforms refuse to cooperate with cities, fail to self-regulate and to comply with regulations to protect affordable housing for residents.  The report also provides insight on what the forthcoming Digital Service Act should deliver to support the legal capacity of cities to protect housing.

How Airbnb fails cities. In Amsterdam, Airbnb withdrew the ability to enforce a 60 days cap after the city tightened regulations; in Barcelona, Airbnb provides data but the 60-70% of the addresses of property on offer are missing or incorrect; in Berlin, the 80% of Airbnb listings are still illegal and the platforms refuse to provide data; in Paris, the 60% of Airbnb listings are illegal; 85% active listings are illegal; in Vienna, Airbnb refuses to remove listings offering hospitality in social housing.

What unequal consequences. Concretely, the report shows how many apartments short-term rental practices ended up extracting from the cities’ housing market and which effects that had on access to housing. In in some neighbourhoods of Amsterdam, this amounts to 1 out of 9 units rented on Airbnb; in Paris, 15,000-25,000 apartments; in Prague, 15.000 apartments; and in New York between 20,000 and 25,000. In Barcelona, the rise of Airbnb in areas of high intensity have determined a 7% increase of rents and a 19% increase of and property prices.

What could cities do to enforce regulations. 1) Mandatory Registration System; 2) Platform Accountability, 3) Platform Data Disclosure.

What is the best scenario for the new EU’s Digital Service Act. Exclude the digital platforms like Airbnb or Über from this act following decisions by the European Court of Justice in December 2017.

How could the Digital Service Act favour the right to the city. 1) Enforce the cession of disaggregated data to planning authorities; 2) Obligation to provide valid and certified data; 3) Acceptance of authorisation schemes for both hosts and platforms; 4) Full cooperation on the sanctioning of illegal listings; 5) Full liability where platforms operate. 6) No obstruction from the Commission in urban regulation of platform economy when it comes to protect fairly access to urban assets, like for instance housing.

Download the full report HERE.

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Transnational gentrification, tourism and the formation of ‘foreign only’ enclaves in Barcelona

Cocola-Gant, A & Lopez-Gay, A (2020). Transnational gentrification, tourism and the formation of ‘foreign only’ enclaves in Barcelona. Urban Studies. DOI: 10.1177/0042098020916111.

In a context of global-scale inequalities and increased middle-class transnational mobility, this paper illustrates how the arrival of Western European and North American migrants in a central neighbourhood in Barcelona drives a process of gentrification that coexists and overlaps with the development of tourism in the city. In understanding how tourism drives neighbourhood change, the paper moves beyond the impacts of visitors and Airbnb and considers how tourism is made and shaped by different forms of mobilities. This involves that urban tourist destinations experience the influx of transnational mobile populations such as lifestyle migrants, international students, and digital nomads who tend to settle in centrally located areas that are themselves impacted by tourism. Given the spatial division of labour within Europe in which Southern Europe has historically targeted consumers from core-accumulation areas as a means to stimulate the economy, transnational mobile populations from more advanced economies become privileged consumers of housing and therefore are able to gentrify the places in which they settle. Relying on socio-demographic data and in-depth interviews with both migrants and Spanish residents, the paper shows how the issue of unequal income structures was mentioned by all the participants and regarding housing markets, it reveals a clear difference in the perspective of migrants and Spanish residents. On the one hand, migrants found Barcelona a cheap place to live in and indeed, for many, Barcelona was a good place to invest in terms of real estate. On the other hand, Spanish participants felt increasingly excluded and as one resident stated, ‘if you want to buy a house to live in you actually have to compete against people that for us are super-rich’. The result is that in a context in which housing has turned into hotels and holiday rentals, the remaining stock available for long-term occupation tends to be rented by transnational mobile populations. Furthermore, as tourism and transnational gentrification spatially coexist, we found that the effects of this overlap go beyond the inability of residents to access housing, and it further creates an exclusion process marked by the differences in lifestyles between long-term residents and transnational mobile populations. The fact that transnational migrants feel more integrated in a tourist area leads to the formation of ‘foreign only’ enclaves that are not attractive to Spanish residents. Not only housing, but retail and spaces for leisure and socialisation cater to transnational mobile populations as well; with little interaction between them and Spanish individuals. As a result, the paper illustrates how residents experience the transnational appropriation of space and their encounters with transient foreigners who are better positioned in the unequal division of labour.

https://journals.sagepub.com/doi/full/10.1177/0042098020916111

COVID: tourism immobilisation and its social consequences

By Antonio Paolo Russo, University Rovira i Virgili, SMARTDEST coordinator
May 2020

The SMARTDEST project tackles the relation between tourism mobilities and the production of social exclusion in cities, with an ambition to contribute to the definition of a policy agenda for cities that takes tourism mobilities seriously, and that brings out the potential of social innovation from citizen engagement for more resilient communities.

While drafting the project proposal and then setting it in motion, the obvious concern of this consortium was the wide array of disruptions that are produced in a context of relentless growth of tourism activity in cities, and its increasing penetration in the citizens’ everyday. We therefore intended to situate our research in the rising debate on ‘overtourism’ and its effects, broadening its conceptual approach and empirical developments to the constellation of mobilities, communities and spaces that are enmeshed to contemporary travel and tourism in complex ways.

Yet, alas, in the verge of a few weeks the context we are studying has changed radically, in ways that could not be remotely imagined before.

The current COVID-19 pandemic, the subsequent measures of confinement to which a substantial part of the world population is subject, the temporary restructuring of work and family routines, and the foreseeable economic slump which will follow from the shock by ‘immobilisation’ of the global economy, present us with a very different future scenario than that of overcrowded streets, low-paid hotel workers and vulnerable families evicted to make space for short-term tourism rentals.

Today, the great societal (and academic) debate in relation to mobilities is whether we will ever go ‘back to normal’, if tourism as we knew it has a future, how to contain the social costs of this slump, and whether it is possible to effect a rapid transition towards ‘slower’, less mobility-dependent forms of economic and social organisation which are more resilient to the uncertain future that comes ahead. For the EU, this may mean that the policy concern for overtourism that had taken foot in the past years is likely to be rapidly overcome by the imperative of economic recovery.

Project to throw in the dustbin? Bad luck? Give back the EU money?

By all means, no. There are at least two main reasons why we consider that actually our research approach is the most adequate to tackle these questions, and offer a sound scientific contribution to the stage of recovery or adaptation to this new scenario.

The first reason stands in our epistemological approach. Moving from the baseline of the ‘mobilities paradigm’, and examining the relationships between tourism-induced urban transformations and the production of social exclusion from this position, allows us not just to analyse the pressure of the visitor economy and its social effects, but to engage with a much more ambitious program of research that takes in and connects:

  • human mobility as an expression of democratic freedom, and leisure as a dimension of urban life that is inextricable from many others;
  • the multiple and multiscale interconnections between the different manifestations of human mobility (e.g. tourism, migrations, commuting, leisurely walk, etc) and between these and the physical spaces that these contribute to produce and contest;
  • the juxtaposition and interrelations of the highly mobile and the ‘less mobile’ or immobilised;
  • the agencies, socio-technological regimes, ideologies and discourses that frame such relationships and promote or mitigate social exclusion.

In other words, if tourism ­– its practices and embodiments, the multiple flows of things, technologies, money and imageries that goes with it, and the marginalisation of sizeable sectors of the society from the benefits of a thriving visitor economy – could have been the context of development of the project until January 2020, the same conceptual concerns, the same empirical developments, and the same ambitions to find informed solutions to social exclusion apply in a non- or less-tourist world.

The current scenario, with the streets of tourist cities temporarily empty, thousands at risk of losing their job, and clean air, is one in which paradoxically social breeches are reproduced and reversed – those who can, comply with the new social norms of ‘good citizen’ and stay safely at home, while others are stuck with dangerously mobile jobs, uncomfortable dwellings, and dependency from the proximity with others. Even when this confinement scenario is relaxed, a new ‘regime of post-COVID mobility’ might be fathomed in which mobilities are promoted, regulated, and reified in vastly uneven ways.

Said this, it is still important to look back and have a structured, nuanced understanding of how the acceleration of tourism and related mobilities in the pre-COVID world may have widened social breeches, and which agencies and power coalitions would have made that possible. We definitely are going to do that. However, SMARTDEST will also look into the present and the future, clarifying how the analytics of mobilities also matters in an ‘immobilised’ world.

And this is precisely our second reason to stay on the ground. Our project foresees engagement with eight case studies of European cities variously interested by tourism-related physical and socioeconomic transformations which represent key challenges for social cohesion. SMARTDEST will not only examine what has gone on in such places until now and in the coming two years, but – as its title states – also aims at contributing to solutions or forms of mitigation to social exclusion that our research will relate to the production of tourist places. In a specific work-package, it will thus convene social actors – among which affected communities, groups at risk of exclusion, grassroots movements – together with economic and political agents to collaboratively design viable strategies by which forms of coping with social exclusion, smart forms of citizen collaboration, as well as small-scale planning innovations can be rescaled to the wider domain of urban policy and may be seen as valuable and implementable within the wider destination ecosystem.

In this light, our project is going to tackle these questions precisely in the stage of recovery (2021-2022), presumably following the current state of emergency. Our case study cities will find themselves in front a ‘recovery dilemma’: going back to normal – and mobilise public and private resources to achieve the recuperation of tourism jobs and economic activity lost in 2020, from which some of them are badly dependent –, or use this breakthrough moment as an opportunity for transition towards a destination environment that is less excluding, more just, more democratic; one that promotes quality of life and shared value over sectorial economic interest, that takes the effects of mobilities (social as well as environmental) seriously, and is prepared to mitigate them.

The temptation to stick to the trodden path will be strong: this is already being hailed, not only by corporate interests but also by policymakers faced with a sudden slump of the economy and employment. However, a return to the pre-COVID conditions – that in many destinations have been at the root of social issues – may not be even an option: as mentioned before, there are high chances that global mobilities and their local manifestations will change, albeit temporarily: ranging from the rights, practicalities and cost of travelling long-haul, to the attractiveness of the most affected destinations, or the effects of physical distancing on the viability of products and attractions.

It has been demonstrated by experience that sustainability transitions focusing on mitigating the impact of tourism mobilities are difficult, as they face lock-ins and pressures of all kinds, though the present scenario may offer a unique opportunity for realignment of societal and corporate interests. Besides, it is also not totally clear what this presupposes in the policy and planning sphere, although certain elements may be envisaged as essential, such a strengthening of the regulation capacity, the dignification and upgrade of work conditions, the concern for gender and intersectional unbalances, the promotion of citizen participation and their innovation capacity, the revision of governance mechanisms. However, whose interests will dominate in the recovery debate, whose rights will be put upfront, and who will be controlling and tapping from the sociotechnical machinery of innovation in mobility, are still moot points – and key discriminants in the effort to achieve more inclusive post-COVID cities.

In this sense, being able to contribute and inform this debate, that will necessarily take place in all the cities we will be studying in our project, is a fundamental challenge for SMARTDEST. Our ambition is that CityLabs will be a key arena where the post-COVID urban future is analysed, designed and shared, and this consortium is already taking steps to make that happen.

The pandemic mobility breach in Barcelona

The pandemic mobility breach in Barcelona
A study of the Catalan newspaper El Periodico, published by journalist and scientific divulgator Michele Catanzaro, using data from the metropolitan Transport Authority of Barcelona, indicates that citizens from the poorest neighbourhoods have been using public transport three times more than the rest of the population during confinement. Low ownership rates of private transport among low-income citizens and impossibility to avoid commuting to jobs are factors cited to explain this trend. However, the map of the most mobile neighbourhoods also features some middle-class tourism-intensive neighbourhoods, whose high mobility rates might be tied to the temporary disappearance of the visitor economy in their neighbourhoods. As higher use of public transport hints at greater exposure to health hazard from contagion, it might be concluded, as indicated by some of the early SMARTDEST assumptions, that the immobilisation of the population (both resident and visiting) may have exclusionary effects as remarkable as those observed in regimes of hyper-mobility.
Access the article of El Periodico (in Spansh): https://www.elperiodico.com/es/sociedad/20200518/el-distanciamiento-va-por-barrios-7963976

SMARTDEST GOES PUBLIC!

Although the project kicked off already in January, its set-up stage is now complete and research work has started.

SMARTDEST examines the production of social exclusion in tourist destinations, seeks for community-engineered forms of coping, and contributes to scale them up to urban policy for resilient cities. Read more