EBA presents results of study on vacation home rentals in Aruba
In the presence of Minister Geoffrey Wever of Economic Affairs, Communications, Sustainable Development of Aruba, Amsterdam Bureau for Economics (EBA) presented the results of a study into vacation home rentals (VHRs) at the University of Aruba on Monday May 22.
The study mapped the economic effects of the VHR sector and identified policy options for better regulation of the sector.
Advantages of the VHR sector include the economic contribution and the opportunity that holiday rentals provide to the general public to earn additional income. An important disadvantage is the pressure on the housing market.
The Aruban VHR sector is extensive and even offers more rooms than the hotel sector. As a result, the sector provides high tourism income. The downside is that the number of VHRs is high in relation to the total housing stock: there are more than four thousand VHRs against a stock of approximately 39 thousand homes. Typically, investors supply these VHRs, rather than the general public.
Various policy options are known worldwide, varying in severity from imposing house rules to a complete ban. The suitability of the measures depends on the policy objectives: some destinations want to reduce tourist pressure in general, while other destinations mainly want to reduce pressure on the housing market or nuisance and misbehavior. In Aruba, the population is positive about the tourism sector in general, but there are concerns about the affordability of housing. As a result, measures that relieve pressure on the housing market seem most appropriate.
The Minister will develop policy in the near future on the basis of this study. He will do this in close consultation with stakeholders, he said during the presentation.
The report can be read here.