How Hosts drive tourism and economic growth across Vermont

Tourism has become a significant economic engine for Vermont, thanks in large part to short-term rentals. In 2023 alone, Airbnb Hosts in Vermont welcomed over 740,000 guests, more than 60 percent of whom come from neighboring states such as Massachusetts, Rhode Island, and New York.

In total, Airbnb helped generate an estimated $460 million in GDP for Vermont’s economy last year¹. By welcoming guests who then patronize local businesses, Hosts across the state supported approximately 6,000 jobs² and contributed nearly $150 million in tax revenue in 2023³, including $20 million in tourism taxes collected and remitted by Airbnb on behalf of Hosts⁴.

Offering supplemental income for Vermont residents

A significant number of Hosts in Vermont are retirees, small business owners, artists, farmers, and educators, with the vast majority of Hosts sharing just one home, and the typical Host for less than 40 nights per year. For many, the extra money earned from hosting is critical to helping them make ends meet⁵:

• The average age of Hosts in Vermont is 50 years old, and 60 percent of Hosts in Vermont are women. 
• 75 percent of Hosts in Vermont say they plan to use the extra income from hosting to cover the heightened costs of living.
• 25 percent of Hosts in Vermont confirm that hosting has helped them stay in their homes.

“As a single mother, hosting has been a vital source of income for me and my family. By welcoming other families to share my home and experience the beauty of our town, I contribute to bringing in more business for local establishments. This not only supports our economy but also fosters a sense of community and connection among residents and visitors alike. Introducing a tax on short-term rental stays would increase the financial burden, making it even more challenging to afford living expenses, especially as a single parent.”

– Stacy, proud Host and Mother in Stowe, VT

 
Spreading the economic benefits of tourism across the state

Short-term rentals help spread the economic benefits of tourism across the state, especially in areas traditionally underserved by the hotel industry. Nearly 60 percent of Vermont’s census tracts are home to Airbnb listings but no hotels where Airbnb Hosts are the primary, if not the only, providers of local accommodation⁶.

Hosts welcome guests in communities across the state who spend their money on local shops, restaurants, and attractions. For example, Airbnb guests in Vermont spent approximately $197 per guest per day, including more than $66 on restaurants⁷. What’s more, over half of Airbnb guests in Vermont stated that they would not have explored the neighborhoods they visited if not for the availability of an Airbnb, underscoring the significant role short-term rentals play in spreading tourism and guest spending beyond traditional tourist destinations⁸.

“We shop in Vermont. I work in Vermont. Our oldest child attends college in upstate Vermont, in an area where hotels are very sparse and already unreasonably high priced. Last summer when we were prepping her for school, we discovered Airbnb and stayed at several – amazing times! We visited several restaurants in the area, went shopping, and explored the mountains and lakes. Raising the tax will just force travelers to stay out of Vermont. Please don’t make the traveling and overnight options even more difficult by adding even more expense to it.  We love this beautiful state.” 

– Victoria, Airbnb Guest

Supporting balanced regulations that help sustain Vermont’s tourism economy

Vermont is considering a three percent surcharge on short-term rentals, which would raise the effective total tax rate to 12 or 13 percent in localities with a one percent local option tax for guests booking a short-term rental. Such a measure could make Vermont more unaffordable and therefore less attractive compared to neighboring states like New Hampshire and Maine, while negatively impacting small, rural communities that lack hotel capacity and rely on short-term rentals to support local tourism. The proposed tax increase would only generate an estimated $4 million in additional revenue on short-term rental stays—and may, in fact, cause the state to lose money by leading to a decrease in tourism and guest spending.

Airbnb is committed to working with lawmakers to establish fair, balanced regulations and to work in partnership with policymakers to support and sustain Vermont’s tourism economy. By fostering an environment that does not unnecessarily deter guests from staying in short-term rentals across the state, Vermont can continue to enjoy the enriched community life and economic benefits that hosting brings.