International Sharing Economy: the Case of AirBnB in Czech Republic

Abstract

The concept of the sharing economy in accommodation business, an explosively growing business model, influences housing and hotel markets worldwide. The aim of this paper is to investigate the size of the AirBnB sector in Prague, to identify a potential disruption of the accommodation market and the potential scale of tax evasion of the AirBnB users, to state the need for additional regulation in this field. The research data were collected using the method of webscrapping from AirBnb website, then validated using the AirDNA database (18 586 units, 1 048 585 records, April 2016 to March 2017). The tax evasion was measured through authors' own model. The main results are as follows: through the offer of accommodation via AirBnB platform in Prague is extensive and compatible with the capacity of Prague hotels; the average occupancy rate in Prague is highly above the values of 14 largest European cities; 80% of the real estate units offered through the AirBnB platform do not represent the case of the usual sharing economy, but are a subject to taxes. The data on Prague substantially outstrips the European average, thus indicating to a potentially significant misuse of the AirBnB platform and a low-scale associated potential tax evasion. Czech legislation is well prepared for sharing economy. 7.4% of the AirBnB users control 39.56% of all accommodation options offered via this platform in Prague.

Current state and development of Airbnb accommodation offer in 167 countries

“…For example, in Southern European countries, Airbnb is sometimes considered a tool to intensify the use of second homes and vacant housing in rural areas (Adamiak et al, 2019;Belotti, 2019). In Central and Eastern Europe high concentration and professionalization of vacation rental through Airbnb and other platforms is related to the unregulated housing market (Ključnikov, Krajčík, & Vincúrová, 2018;Roelofsen, 2018). In developing countries of Central America, Africa and South Asia, Airbnb rental fits in the local traditions of homestays and informal tourism accommodation services, and the platform provides marketing tool enabling to reach international tourists (Bandara, 2019;Kagermeier, Amzil, & Elfasskoui, 2017;Ruiz-Correa et al, 2018).…”

Identification of Distorted Official Hospitality Statistics’ and Their Impact on DMOs’ Funding’s Sustainability: Case Notes from Slovakia

“…Hamilton et al analyze the impact of online travel companies' (hereinafter OTCs) impact occupancy tax collection, in particular, whether OTCs are reliable on municipalities for tax collection [4]. Kljunickov et al raise awareness regarding the misuse of AirBnB's concept of shared economy by accommodation service providers from the perspective of tax evasions and negative impacts on price of local housing and local hospitality industry [5]. Various recent research studies analyze the sustainability of the hospitality industry; the impact of general and special Value Added Taxes' on the industry at the national level and specific scenarios of tourist's and service providers' attitudes [6][7][8][9].…”

Reasons and Consequences of Overtourism in Contemporary Cities—Knowledge Gaps and Future Research

“…Providing accommodation in a district that has not been visited by tourists has become an attractive option for earning money for owners of flats and houses, and it attracted numerous guests lured by Airbnb's slogan 'live like a local' [13]. It soon turned out that the city inhabitants who were able to bypass the tourist traffic by passing by the historic city centers where tourist traffic was focused, currently cannot do this, as they meet numerous tourists using accommodation services in facilities immediately next to them [65]. The most important fields of conflicts are the shortage of available living space, the increase in rents and the problem of constantly changing neighbors.…”