MADISON – Airbnb today announced that Airbnb guests infused a $10 million economic impact for Madison in 2016.
Over 400 Madison residents actively list their home or a room on the Airbnb platform. In 2016, those hosts earned $2.7 million in supplemental income while welcoming over 19,000 guests to the city.
Additionally, those guests contributed $7.3 million to the local merchant community through spending at restaurants, shops and more. This is based on a recent comprehensive survey of Airbnb guests, which determined that Airbnb guests to Madison spend on average $122 per day (on top of what they pay for their listing).
This comes on the heels of Madison last month becoming the first Wisconsin to enter into a tax agreement with Airbnb that allows the company to collect and remit the 9% Madison transient occupancy tax on behalf of its hosts. This will allow the city to take full economic advantage of guests traveling to Madison via Airbnb. If Airbnb’s guest arrivals and host revenue were to remain consistent with 2016 numbers, it would mean at least $200,000 in annual tax revenue for the City.
MADISON BY THE NUMBERS
400 active Airbnb hosts
19,000 Airbnb guess in 2016, reflecting 86% year-over-year growth
Typical Madison host earns $5,100 annually in supplemental income through Airbnb
Typical Madison Airbnb listing is rented out just 1 day per week
48% of Madison Airbnb listings are simply extra, unused rooms in a host’s home (i.e. empty nester)