New Orleans has seen an upsurge in the growth of the vacation rental market over the last decade. A new report from The University of New Orleans Hospitality Research Center and the Alliance for Neighborhood Prosperity demonstrates how important short-term vacation rentals are to the New Orleans economy.
Here are some key findings of the study:
- Approximately 595,000 visitors stayed in short-term rentals
- Short-term rental visitors generated $899.2 million in total local economic activity
- This visitor spending supported nearly 10,200 full- and part-time jobs
- These jobs created a total of $263.1 million in additional earnings for New Orleans residents
- Short-term rental visitor spending is expected to generate $63.9 million in tax revenue for state and local governments, with $24.9 million going to local governments in the New Orleans area
A similar study conducted in 2013 also found that short-term vacation rentals were important to the New Orleans economy. However, the growth of the market is staggering. In the five years between studies, the New Orleans market increased total economic activity by $724.4 million and created 8,000 new jobs.
New Orleans policymakers recently passed a temporary ban on new licenses and license renewals in eight historic neighborhoods. The council will also study how other communities have evolved their short-term rental ordinances since 2016, the year New Orleans passed their original short-term rental ordinance.
There is no denying that tourism is a major industry in New Orleans and visitor numbers keep increasing year after year. The council will need to consider all these factors, over the next 9 months, before making a permanent decision on short-term rentals in the community. Bans and more restrictive rules could be very damaging to the local economy.