They estimate the total economic impact is the sum of (1) the “direct effect” of spending on rent, food and beverages, transportation, and the like, (2) the “indirect effect,” where sectors which form the supply chain of these industries increase their purchase to fill this demand, and (3) the “induced effect,” where local incomes are spent and respent locally.
For 2015, Levendis and Dicle estimate that Airbnb had the following impact on the New Orleans economy:
- The total value added to the New Orleans economy via Airbnb was $185 million dollars.
- Output attributable to Airbnb in New Orleans is $316 million dollars.
- Airbnb had a total economic impact of $134 million dollars in increased income in New Orleans.
- Airbnb’s visitors accounted for 4,480 additional jobs in 2015, with many of these jobs in the service sector.
- 286,619 people stayed in New Orleans in 2015 via Airbnb. They stayed on average 3.3 nights.