Munich Personal RePEc Archive

The Effect of Tourism Activity on Housing Affordability

Mikulić, Josip and Vizek, Maruska and Stojcic, Nebojsa and Payne, James E. and Čeh Časni, Anita and Barbić, Tajana (2021): The Effect of Tourism Activity on Housing Affordability. Published in: Annals of Tourism Research , Vol. 90C, (September 2021): pp. 1-12.

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Abstract

Although researchers have confirmed the impact of tourism on housing prices in many destinations affected with overtourism, they do not consider housing affordability in relation to the population’s income levels. This study explores the relationship between tourism activity and housing affordability, using a sample of Croatian municipalities. Specifically, the study investigates how tourist accommodation, concentration, seasonality and overall vulnerability to tourism influence housing affordability in this emerging tourism-driven European country. The results obtained reveal tourism intensification’s deteriorating effect on local residents’ abilities to afford housing. The findings indicate a particularly strong tourism seasonality impact, suggesting the presence of common negative externalities, such as employment fluctuations, difficulties in maintaining economic status, and revenue instabilities, in localities prone to seasonal tourism fluctuations.

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