1 Introduction

According to Richter (2020), social events and holidays, such as New Year, have a significant impact on the economic growth of a specific region. This is due to the increase in sales and traffic of goods and services, especially in areas that are considered safer. This may lead to a reduction in inequality; an impact on social norms and folklore, an increase in environmental threats to sustainability and fostering community bonding. In urban and non-urban areas, the encouragement of social and community tourism can lead to a reduction in inequality, an impact on social norms and folklore, an increase environmental threats to sustainability, and it can foster community bonding. As seen in Fig. 1, the trajectory of New Year's sales on accommodation through Airbnb between 2011 and 2019 remained positive year-on-year (Richter 2020).

Fig. 1
figure 1

Source: Richter (2020)

New Year's peak illustrates Airbnb's growing stature.

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The growth of Airbnb can be attributed to a few factors, including the rise of the sharing economy (Doogan 2009); increased advocacy for sustainability and climate action and widespread adoption of technology and the internet (Freeman 2017). The shift towards a new form of capitalism, characterised by shared prosperity, value co-creation and collaboration is gaining momentum.

The 2008–2009 global financial crisis helped to drive the shift from traditional tourist accommodations, such as hotels and bed and breakfasts, towards Airbnb to redistribute wealth and address economic power concentration (Ndaguba and Zyl 2023). However, the COVID-19 pandemic had far-reaching consequences for the hospitality sector, including Airbnb, in 2020 and 2021. Border closures and quarantine protocols resulted in decreased occupancy rates and cancellations which, in turn, resulted in Airbnb reducing their staff and advertising budget, and initiating pay cuts. This decline was like what was experienced by other large and small hospitality firms globally. The Margaret River region in Western Australia, however, saw a rise in Airbnb occupancy, despite the decline in many other locations due to factors, such as increased interstate travel and remote work. (Nicola et al. 2020; Bomey 2020; Temperton 2020).

The short-stay sector faces ongoing debates and challenges, with environmental scholars raising concerns about sustainable tourism, gentrification, unaffordable housing, overcrowding and so forth (Camilleri and Neuhofer 2017; Milano et al. 2019).

This study added to the limited qualitative research on Airbnb in regional Australia in that it focused on the social impact of short-stay accommodation in the Margaret River area, examining the four critical components of tourism accommodation and management: sharing economy, local development, and economic transformation. The research methodology involved data collection and analysis, and the findings were divided into three levels: primary, secondary, and tertiary. The discussion was organised into three themes: regulation, management, and economic transformation. The study highlighted the importance of local reinvestment, community building, safety, inequalities, and social norms by evaluating the social impact of short-stay accommodation and emphasised the need for local build, local buy, and local use in facilitating community building. The proximity of Perth to Margaret River greatly increases its accessibility and the experience economy, community values and economic transformation contribute to a sense of belonging and community spirit.

2 Literature Review

This section outlines the theoretical framework that informs the study's approach to examining the social impact of short-stay accommodations in Margaret River. The term "tourism accommodation" is used to encompass the various aspects shaping the short-stay market, including formal and informal accommodation options, such as traditional hotels and digital platforms, like Vrbo, Expedia, Booking.com, and Airbnb (Ndaguba et al. 2022a). Among these digital platforms, Airbnb stands out as the most disruptive and challenging to regulate, leading to various legal challenges (Carville et al. 2020; Henriques-Gomes 2018; Falk and Scaglione 2023; Parliament of Victoria 2017). Given its status as the major disrupter in the digital age, we focused our attention on Airbnb in this study.

2.1 Tourism Accommodation and Management

In the last decade, the focus of scholars and literature has shifted towards regulation, investment and the access economy. This shift in focus has been facilitated by the works of major scholars such as Dogru et al. (2019), Famsworth (2018), Jefferson-Jones (2014), and Koh and King (2017). Belk (2007) and Botsman and Rogers (2010) are considered pathfinders in shaping research on tourist accommodation and have developed two perspectives: access over ownership (Belk 2007) and collaborative consumption in tourist accommodation literature (Botsman and Rogers 2011).

Belk has written extensively about co-creation and co-destruction, while Botsman and Rogers focus on collaborative consumption and the circular economy. Co-creation and co-destruction, as described by Belk (2007), refer to the processes by which new value is created through collaboration and participation of multiple parties and the concurrent negative effects that arise from such collaboration. In the context of the sharing economy, co-creation refers to the process by which the sharing of resources, such as goods or services, results in new value being generated for the participants involved. For example, in the case of Airbnb, the co-creation of value occurs as guests and hosts collaborate to create a unique and personalised travel experience for the guests, resulting in new value for both parties.

Co-destruction, on the other hand, refers to the negative impacts that arise from this collaboration. In the case of Airbnb, co-destruction can refer to the negative effects on local communities, such as the displacement of long-term renters, increased housing prices, and decreased affordability. It can also refer to the impact on the traditional hotel and accommodation industry, as Airbnb is disrupting the traditional business models (Pforr et al. 2021). Belk (2007) argues that both co-creation and co-destruction are inherent to the sharing economy and must be carefully considered when evaluating its impact on society. By understanding the positive and negative effects of the sharing economy, policymakers can make informed decisions on how to regulate and manage its growth in a sustainable and equitable manner.

Nevertheless, Belk’s argument regarding ‘sharing’ is critical to understanding the fundamentals of the access economy and the sharing economy (Belk 2009). Belk perceives the sharing economy as a creation of development and argues that there is nothing new about the sharing phenomenon, but what is novel is its intersection with the internet economy (Brown et al. 2019).

The rise of digitalisation in sharing e-commerce has necessitated an atmosphere for digital services, such as Airbnb, to thrive. This is further supported by the works of Celata et al. (2017) and Brown et al. (2019), in which they argue that the mandate of digitalisation in sharing e-commerce has necessitated an atmosphere for such digital services to thrive. In conclusion, the works of Belk and Botsman and Rogers, along with the rise of digitalisation, have paved the way for the growth of the sharing economy and digital services such as Airbnb.

2.2 Sharing Economy

Sharing has long been a form of consumption (Botsman and Rogers 2011), as Belk (2007) describes it as an alternative to individual ownership in gift-giving and marketplace exchange. Instead of defining ownership as "mine vs yours" (Botsman and Rogers 2011), sharing is centred on the idea of collective ownership and consumption (Belk 2007).

The short-stay market (SSM) sector is driven by a combination of technological advancement and time management economics (Brown et al. 2019). According to Tussyadiah (2016), the drivers of the SSM are different from the perspective of homeowners and the guests. For guests, cost-saving, enjoyment, home-like apartments, and amenities are key factors (Stors and Kagermeier 2015). But financial sustainability, satisfaction from providing a service, sense of belonging and community are important key factors for hosts and platforms (Tussyadiah 2016).

Guests prioritise price, comfort, amenities, environment, and safety (Deboosere et al. 2019; Magno et al. 2018; Masiero et al. 2015; Rigall-I-Torrent et al. 2011; Rodríguez-Pérez de Arenaza et al. 2019), while hosts focus on financial and social benefits, reinvestment potential and the impact of guests on the community (Tussyadiah 2016). Hosts generally prefer guests who engage with the local community and experience economy, promoting local participation and development, rather than guests who seek to escape the big city.

2.3 Local Development

Local investment is crucial for tourist destinations to thrive. Theories such as localisation, community value, and community economic development are commonly used to discuss poverty reduction through local economic activity (Cummings 2001; Fischler and Wolfe 2000; Ndaguba and Hanyane 2019). Ndaguba and Hanyane (2019) have found that community economic development is a vital approach for poverty reduction in local areas. The UN's definition of poverty and its reduction methods are limited and region-specific; therefore, the need to tailor approaches to individual, community, and collective needs (Ndaguba and Hanyane 2018).

From the individual perspective, guests and hosts must view themselves as part of a larger community and understand the impact of their actions on the group (Huurne et al. 2020; World Bank 2018). Therefore, hosts must acknowledge the community's expectations for a collective investment from guests or hosts. This philosophy is based on interconnectedness and reciprocity, specifically in spiritual, cultural, social or community tourism (Ndaguba 2019). Key concepts such as local prosperity, buy local, build local, and invest local are building blocks for community economic development in the age of globalisation (Ndaguba 2019).

At community level, empowering locals is a crucial aspect of community economic development, using an inside-out approach. The interconnection of individuals and communities encourages social change and transformation through guest-community discussions.

2.4 Economic Transformation

Economic transformation due to short-stay accommodations is a phenomenon that has been observed in many popular tourist destinations (Belk 2007). The growth of platforms, such as Airbnb, facilitated the rise of this trend and has resulted in significant changes to local economies. These changes can be positive such as an increase in revenue for local residents who rent out their homes and for local businesses benefit ting from increased tourism. However, there are also negative impacts such as increases in housing prices, displacement of residents, and the erosion of local communities and cultures (Nieuwland and Van Melik 2020). To ensure that the impact of short-stay accommodations remains positive, it is crucial for local governments to adopt regulations that balance the needs of tourists, residents and the local economy. Additionally, investing in local communities and empowering residents to participate in the benefits of tourism can help to ensure that economic transformation is sustainable and equitable.

The integration of individual and community empowerment can drive significant economic growth in a community. This can provide equal opportunities for all parties involved in the digital accommodation industry. However, existing literature on community economic development mostly focuses on individual or collective empowerment and overlooks the importance of community empowerment (Ndaguba 2019). The debate between individualism and collectivism in development often neglects the community aspect, with a focus on either individual-level development or a collective approach. Based on the information given, the following questions are raised:

  • To examine the social impact of short-stay accommodation in the Margaret River (MR) region.

    1. o

      What is the social impact on the growth of the digital accommodation enterprise in MR area in the context of local development?

3 Materials and Methods

The study employed a qualitative approach, which is well-suited for in-depth exploration of a phenomenon (Ganguli and Ebrahim 2017). As a subset of the interpretivist paradigm, qualitative methods allow the researcher to identify key indicators and understand them from the perspective of the participants (Luo and Ren 2020). According to Momeni et al. (2018), the interpretivist paradigm provides three main options for data collection: structured, semi-structured and unstructured methods. The adopted ontology in the interpretivist paradigm is centred on questioning truth and either discovering or socially constructing it (Kivunja and Kuyini 2017).

3.1 Data Collection

Data for the study were collected through voluntary interviews with owners/hosts, managers, realtors, and management firms of short-stay and long-stay accommodation. The recruitment process was guided by ethical principles, with approval from the Edith Cowan University Human Ethics Committee (2019-00916) and supplying a form outlining the rights and privileges of participants. Non-probability sampling techniques, specifically purposive and snowball sampling (Yoon and Kim 2016), were used to select participants.

The sample size was determined based on the principles of qualitative research, which typically involve smaller sample sizes than quantitative research (Creswell and Poth 2016). The aim was to reach data saturation where no new knowledge is being added through further interviews (Guest et al. 2006; Mason 2010; Morse 1995). The number of participants was not the primary concern, but rather the achievement of saturation, supported by pragmatic considerations (Ndaguba 2019).

The interview data were transcribed verbatim, cleaned, and coded and then analysed, using Leximancer to generate themes. The analysis focused on preserving the individual uniqueness of each respondent, as shown in Table 1, which provides a summary of the data collection and storage process.

Table 1 Summary of statistics
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The adjusted verbatim quotations method was used to synchronise the interviews and explain the concept maps. The analysis was performed, using Leximancer, where bubbles representing different themes were generated and visualised. The colours of these bubbles represent the impact of each theme, with red being the most impactful, followed by orange, and the least impactful being blue and green. The score of each theme, cluster, and bubble was calculated and used to determine their significance. The concept maps provide a visual representation of the relationships and associations among different themes as well as their relative impact (Smith 2017).

3.1.1 Inclusion and Adjustment

In this study, certain modifications were made to comply with the statistical protocol for informed decision-making. In order to construct a path towards the research objective, the following variables were introduced into the Leximancer software: ‘Airbnb’, ‘culture’, ‘employment’, ‘experience economy’, ‘escape’, ‘fire’, ‘holiday home’, ‘local business’, ‘local development’, ‘long-term’, ‘Perth’, ‘registered’, ‘registration’, ‘restaurant’, ‘sharing economy’, ‘short-term’, and ‘tourism accommodation’ (Fig. 2).

Fig. 2
figure 2

Source: Leximancer 4.51 version (2021)

Analyst synopsis for SSA in Margaret River region.

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3.2 Justification

The study is exploratory, as little is known about the true events in Margaret River and similar regional areas in regional Australia. Thus, the methodological approach adopted was deemed appropriate due to the exploratory nature of the research. The focus of exploratory research is on discovering and exploring a topic, rather than testing a hypothesis or confirming a theory (Casula et al. 2021). As such, the research strategy and methodological choice aligns with existing protocols for conducting exploratory research, which often involve qualitative methods such as interviews, observation, and focus groups (Al-Ababneh 2020; Casula et al. 2021). The study analysed the social impact of the short-stay market in Margaret River in chapter 2 to provide an answer to the first research question of this thesis. This exploratory approach accommodated in the interpretivist paradigm sets the scene for the debate that ensued in successive chapters, which are economic.

3.3 Data Analysis

Data analysis is the process of examining and interpreting data to extract useful insights and information from it. It involves cleaning, transforming, and modelling data to discover meaningful patterns, relationships, and trends. The purpose of data analysis is to help make informed decisions and solve problems in a variety of fields, including business, healthcare, and social sciences.

In this study, the Leximancer software was used for text analysis and visual representation of the patterns, relationships, and trends in the data. The software can help to identify key concepts and themes in large volumes of text data, allowing for a more efficient and effective analysis. By using tools, like Leximancer, researchers can gain insights that help them to make better decisions and improve performance in their respective fields.

3.3.1 Leximancer

Leximancer is a text analytics and data visualisation software that helps businesses and organisations to understand large amounts of unstructured data (Aryal et al. 2020). According to Ndaguba et al. (2022), it uses natural language processing and machine learning algorithms to extract insights from large collections of data, including customer feedback, surveys, and product reviews.

The software works by processing the input data and automatically identifying relevant themes, concepts, and relationships between them (Aryal et al. 2020). This allows users to understand the overall sentiment of their data; identify trends and patterns and gain insights into customer opinions and preferences quickly and easily.

In addition to its advanced text analytics capabilities, Leximancer also provides a range of interactive visualisation tools that help users to explore and understand the results of their analysis (Arici et al. 2022). These visualisations can be customised to meet specific requirements and can be used to communicate the results of the analysis to stakeholders in a clear and concise manner.

In general, Leximancer is a powerful tool that can help organisations in a variety of industries such as marketing, customer service and market research to gain valuable insights into their data and make informed decisions based on that information.

How Leximancer is calculated:

Leximancer is a text analysis software that uses algorithms to calculate and analyse text data. The calculation process in Leximancer involves the following steps:

  1. o

    Text pre-processing: Raw text is pre-processed to remove stop words, punctuation, and other irrelevant data.

  2. p

    Term extraction: Leximancer extracts key terms and phrases from the pre-processed text data.

  3. q

    Concept formation: The extracted terms are grouped into conceptual clusters, which represent the topics and themes in the text data.

  4. r

    Concept mapping: The concepts are visualised as nodes in a network, where the connections between nodes represent the relationships and associations between concepts.

  5. s

    Conceptual analysis: The resulting concept map is used to analyse the text data, identify patterns and relationships, and draw insights (Brigg and Lavery 2015; Fast 2012; Han and Ostfeld 2019)

The algorithms used by Leximancer are designed to automatically identify and categorise text data, reducing the need for manual coding and interpretation. The calculation process in Leximancer is automated and highly customisable, allowing users to adjust parameters and algorithms to meet the specific needs of their analysis.

How we applied Leximancer:

The study divided the corpus in three separate analyses: all interviewed together (realtors + management firm/ manager + owners + council + association, 18 interview from 20 respondents total). From this a conceptual map was generated, depicting the results of each analysis. The study then compared bubbles based on hits which signify impact. By examining the subcategories and merging the fundamental in relation short-stay accommodation, three levers of impact were generated: primary, secondary, and tertiary, based on the bubble or themes (as depicted in Han and Ostfeld 2019).

4 Findings

Using both analyst synopsis (see Fig. 2) and concept maps (see Fig. 3), we show the themes generated for discussion on the short-stay accommodation market, using the software Leximancer version 4.51. With configuration Visibility Concepts set at 100%, Theme Size set at 50% and Rotation at 640, the analyst synopsis statistically generated the conceptual map (see Fig. 2), which addresses the number of hits of a word used in the interview to include: short stay (568), ‘people’ referred to as ‘guest’ (540), ‘wine’ meaning ‘wine industry’ (400), ‘property’ meaning ‘property value’ (211), tourism accommodation (59) and registration (47).

Fig. 3
figure 3

Source: Leximancer 4.51 version (2021)

Theme map for SSA in Margaret River region discourse.

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The concept of short stay had more hits in the research, but “guests” emerged as the more prominent concept (Huang et al. 2020), since guest from the analyst synopsis appears to be more powerful based on colour. The relationship between guests and short stay or the influence of guest stay on registrations is not captured in Fig. 2. However, it is important to note that Fig. 2 does not provide a comprehensive analysis, but rather highlights the main drivers stimulating the impact of short stay on Margaret River. This includes short stay, guests, wine, residential properties, tourism accommodation and registration. The analyst's synopsis (Fig. 2) highlights the critical components that shape the social fabric of Margaret River.

The theme mapping in Fig. 3 shows various relationships and categorises the influence of guest stay into three areas. Guest stay has a closer relationship with other digital platforms, residential properties and registration, while the registration of local businesses moderates the relationship between wine and guests. Despite the popular belief that guest stay directly affects traditional forms of accommodation, like hotels, this research indicates that the relationship between guests and tourism accommodation is indirect and plays a less prominent role in short-stay accommodation in Margaret River.

From Fig. 3, we obtained three categories based on proximity and colour (hit) to guest or people: primary, secondary, and tertiary. Several research papers have identified one or more research dimensions to SSA; nonetheless, we provide a guest stay impact on SSM in Margaret River by exhibiting three categorical influencers of guest stay in Margaret River (Fig. 4). To explore further, the narrative established by the theme map for SSA (Fig. 3) and we utilised a linear regression to estimate the more prevalent concept by likelihood ratio (Fig. 4). The result demonstrates that tertiary factors of guest stay impact on the linear regression. For instance, Perth proximity to Margaret River constituted the single biggest influencer, before restaurant followed by local area and substitute threat (Fig. 4). When more robustly regressed with substantially more economic variables (see Fig. 5), employment emerged as a critical player in the SSM in Margaret River. Although several studies have accounted for job creation as an economic driver of Airbnb (Robertson et al. 2022; Gerwe and Silva 2020), the output of this research demonstrated that job creation can also be a social variable, as it affects the overall well-being and standard of living of society. The level of job creation can impact the economy and social and political stability. It is also a measure of economic growth and can affect income distribution, poverty reduction, and social mobility. Therefore, job creation has economic and social implications and its impact is felt across various domains of society.

Fig. 4
figure 4

Source: Leximancer 4.51 version (2021)

Likelihood % of related concepts name (general) for SSA in Margaret River region.

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Fig. 5
figure 5

Source: Leximancer 4.51 version (2021)

Likelihood % of related concept word (general) for SSA in Margaret River region.

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4.1 Primary

4.1.1 Money/Guest Spending

Guest spending in short-term accommodation and its surroundings has been a topic of growing interest in recent years (Nieuwland and Van Melik 2020). The popularity of short-term rental accommodations, such as Airbnb, has led to a significant increase in tourists visiting various destinations, including cities and rural areas. This, in turn, has had a positive impact on the local economy through increased guest spending in the form of purchases at local shops, restaurants and other businesses (Dogru et al. 2019).

Studies have shown that guests staying in short-term rentals tend to spend more in the local area compared to those staying in traditional hotels (Monahan 2021). This is largely due to the unique experience offered by short-term rentals, which often provide guests with the opportunity to live like locals and explore the surrounding community. Additionally, short-term rentals are typically located in residential areas, which are often in close proximity to local shops, restaurants, and other businesses (Robertson et al. 2022; Shabrina et al. 2021).

It is, however, important to note that while increased guest spending in short-term rentals can have a positive impact on the local economy, it can also create challenges for the local community (Brown et al. 2019). For example, increased traffic, noise and parking issues can impact on the quality of life for local residents. It is crucial for local authorities to carefully manage and regulate short-term rentals to ensure that their positive impact on the local economy is balanced with the needs of the local community, and the negative is substantially reduced in the vicinity where short-stay accommodation operates.

4.1.2 Long-Stay Accommodation

The real estate market in the vicinity of short-term accommodation has seen a significant decline in recent years (González-Pérez 2020). This drop can be attributed to the high demand for short-term rental properties, as more people prefer flexible and cost-effective travel options (González-Pérez 2020; Tussyadiah and Pesonen 2018). As a result, many property owners have converted their homes into short-term rental units. This has led to a decline in the number of available units and competition for long-stay accommodation to real estate agents (González-Pérez 2020; Zhou et al. 2023). Additionally, short-term rental properties often require frequent maintenance, leading to job opportunities in the cleaning and repair services industry. The real estate market in the vicinity of short-term accommodation has witnessed significant negative disruption in the Margaret River area and similar regional areas; and the increase in the number of property managers and management firms for short-term rentals, issues of hosted and unhosted are non-existent.

4.1.3 Property Manager

A property manager plays a crucial role in the short-stay accommodation industry. They are responsible for overseeing the daily operations of properties and ensuring that the guests have a pleasant and comfortable stay (Colomb and Moreira de Souza 2021). Property managers are also responsible for maintaining the property, ensuring it is in good condition and that the guests have access to all the necessary amenities. They also handle the financial aspect of the property, such as rent collection and budget management. The role of a property manager is essential to the success of the short-stay accommodation industry and helps to ensure that the guests have a memorable and enjoyable experience (Jover and Cocola-Gant 2023). The impact of property managers on the industry is significant, as they help to drive economic growth and create jobs, while also contributing to the overall development of the local community.

4.1.4 Employment

Employment in short-stay accommodation and its surrounding areas is a crucial factor in the growth of the tourism industry (Wang et al. 2019). The growth of the short-term rental sector has created numerous job opportunities in areas such as cleaning, maintenance, customer service, and marketing. These jobs offer a wide range of employment opportunities for individuals with varying levels of skills and experience. Additionally, the benefits of short-term rental employment extend beyond the accommodation itself, as the presence of short-term rentals can drive economic growth in the surrounding areas through increased tourism spending. However, it is important to consider the effects of the growth of short-term rentals on the local housing and job market; and the councils must ensure that the benefits are shared equitably among the community.

4.1.5 Local Development

The social impact of local development on short-stay accommodations is a complex and multifarious issue that has been widely debated in recent years (Semi and Tonetta 2021). On the one hand, short-term rentals can provide an influx of tourism revenue and create jobs for residents. On the other hand, these developments can also increase housing costs for residents; displace low-income families and create conflicts with neighbours over noise and parking (Loney 2022). It is important for local governments to carefully consider the potential social impacts when making decisions about short-term rental regulation. This may include measures to protect affordable housing, promote responsible tourism and address community concerns about the impacts of short-term rentals on the quality of life in the area. Ultimately, the goal should be to strike a balance between economic benefits and social considerations, ensuring that short-term rentals positively contribute to the local community and its residents, while providing the experience economy.

4.1.6 Experience Economy

The experience economy has a significant impact on short-stay accommodation and its environs. This economic trend, which prioritises unique and memorable experiences over tangible goods, has led to a growth in demand for holiday homes and other short-term rentals. This, in turn, has resulted in changes to local communities and neighbourhoods.

One notable impact is the increase in tourism and visitor numbers, which can put pressure on local infrastructure and resources (Capineri and Romano 2021). This can also lead to cultural homogenisation, as areas that once offered a unique local experience have become more commercialised (Vilarinho and Christiaans 2020). On the other hand, the experience economy can also bring new jobs and economic opportunities and improvements to local amenities and attractions.

In order to ensure a positive social impact, it is important to consider the needs of local communities and strike a balance between the benefits and drawbacks of short-term rental development. This may involve investing in local infrastructure, supporting local businesses, and ensuring that residents have a say in the development of their communities. By taking a responsible and inclusive approach to the growth of the experience economy in short-stay accommodation, it is possible to create a sustainable and mutually beneficial situation for all parties involved.

4.2 Secondary

4.2.1 Tourism Accommodation/Holiday Homes

Tourism accommodation, especially short-stay options, like holiday homes and apartments, can have significant social impacts on local communities and visitors. On the one hand, it can bring increased economic activity and job opportunities, leading to economic benefits for the area. On the other hand, it can result in issues such as over-tourism, overcrowding and strain on local resources and services (Gerwe 2021; Moreno-Gil and Coca-Stefaniak 2020). Costa et al. (2019) argue that the influx of tourists can also result in changes to the local community's cultural and social dynamics, with potential impacts on the local residents' quality of life and sense of place. It can also contribute to the gentrification of certain areas, displacement of long-time residents and rising prices in the housing market (Ardura Urquiaga, Lorente-Riverola and Ruiz Sanchez 2020). Therefore, it is important to carefully consider and manage the social impacts of tourism accommodation, taking a balanced and sustainable approach that prioritises the well-being of local communities and visitors.

Holiday homes have become increasingly popular in recent years. Although they offer a convenient and cost-effective alternative to traditional hotels, the impact of holiday homes on the social fabric of local communities is a growing cause for concern. The increased influx of tourists can result in a higher demand for resources, increased traffic and congestion and increased noise levels, which can have a negative impact on the quality of the life for residents. Furthermore, holiday homes can also lead to a decline in local culture as tourists are less likely to participate in local events and activities; and the local economy can suffer as tourist dollars bypass local businesses in favour of large corporations. Overall, while holiday homes offer many benefits, it is important to consider the social impact they have on local communities and that their presence is sustainable and well-managed.

4.2.2 Property Market

The social impact of the property market on short-stay accommodations can be significant. The increasing number of short-term rentals can result in a change of community demographics, increased tourism activity, and displacement of long-term residents. This can lead to gentrification, cultural homogenisation, and loss of affordable housing. It is important to consider the potential impacts of the property market on local communities and other economies in the region when making decisions about tourism development and real estate investment in these areas (Khan et al. 2022).

4.2.3 Wine Economy

One such economy is the wine economy, which is an established industry, attracting visitors to wine regions for wine tasting, vineyard tours, and other wine-related activities. This increase in tourism results in the development of short-stay accommodation, restaurants, and other tourism-related businesses. The wine economy does not only create jobs and drive economic growth in the region, but also contribute to the local community by increasing the demand for local services such as transportation, food, and other amenities (Cerquetti et al. 2022).

The wine economy also has a positive impact on the social environment of the region by creating a sense of community among wine growers, tourists, and local residents. Wine festivals, events, and other activities foster a sense of community and bring people together, promoting social interaction and cultural exchange. Additionally, wine tourism often leads to the preservation of historic and cultural heritage and the protection of local landscapes, contributing to the overall quality of life in the area. It further contributes to the economic development of the region, promoting social interaction, and preserving cultural heritage (Cerquetti et al. 2022). This highlights the importance of sustainable wine tourism as a means of promoting economic growth while also maintaining the cultural and social fabric of the local community.

4.3 Tertiary

4.3.1 Owner

The social impact of short-stay accommodation is a complex and multifaceted issue that has attracted the attention of scholars, policymakers, and the public (Ndaguba et al. 2022). One aspect of social impact that has received specific attention is the impact of the owners of short-stay properties on the local community and its environs (Cocola-Gant and Gago 2021). There are several ways in which owners can have a positive and negative social impact, depending on the type of property and the specific local context. For example, the influx of short-stay properties and their owners can help to boost local economies by bringing in additional money from tourism and creating jobs, as evident in Margaret River. However, the availability of short-stay properties can lead to social tensions and conflicts with residents who feel that their neighbourhoods are being overrun by visitors and that the benefits of tourism are not being shared equitably (Stergiou and Farmaki 2020). Overall, the social impact of short-stay accommodation will depend on a variety of factors, including the type of property, the local context, regulation and the behaviours and attitudes of the owners.

4.3.2 Registered Providers

Registered providers play a role in shaping the cultural and economic landscape of a destination. By offering high-quality accommodation and experiences, registered providers can attract more visitors and generate more revenue for the local economy. However, if not managed carefully, short-stay accommodation can also have negative impacts, such as increased traffic and overcrowding in residential areas. Registered providers have the responsibility of mitigating these effects and ensuring that the social and cultural fabric of the local community is protected, while also increasing government revenue.

4.3.3 Culture

Culture is a key factor that impacts the social environment of a region. The availability of short-stay accommodation in a specific area affects the local culture to a great extent (Bourliataux-Lajoinie et al. 2019). Firstly, the arrival of tourists and guests can lead to an influx of people with different backgrounds, beliefs, and cultural norms. This, in turn, can result in the blending of cultures, forming a unique local culture. Secondly, the influx of tourists can also bring an increase in economic activity and the development of new businesses, which can bring about changes in the local community (Bourliataux-Lajoinie et al. 2019).

Additionally, the establishment of short-stay accommodations can also lead to an increase in cultural events and activities (Robertson et al. 2022). This can include the creation of new cultural festivals, concerts, and exhibitions. The increased presence of short-stay accommodations can furthermore result in the preservation of cultural heritage and revitalisation of local traditions (Yeager et al. 2020).

However, short-stay accommodation may also have a negative impact on local culture. The influx of tourists can result in the displacement of long-term residents and the erosion of local cultural traditions (Loney 2022). Furthermore, the high cost of living and the gentrification of local areas can contribute to the homogenisation of local culture.

The social impact of culture in short-stay accommodation is a complex issue that requires careful consideration. While the availability of short-stay accommodation can bring new cultural experiences and opportunities, it is important to ensure that these developments do not negatively impact local communities and their cultural heritage.

The challenge of establishing governing principles for SSA is due to the misdirection of laws and policies towards the host and platform, rather than the guests. Implementing legislation to regulate guest stay may have devastating outcomes, like in Perth which relies heavily on workers and investors from regional areas, and city residents to contribute to regional areas through volunteer work and spending. A balanced relationship is maintained through this mutual interdependence.

5 Discussions and Conclusion

Participant number 18 stated the following:

So I think, the narrative needs to change and it needs to be seen as a really positive and important sector of the tourism industry just like the winery, just like the tour operator, just like the motels and hotels, you know, tourists have changed and actually they are not drawn to the motels and hotels style of travel anymore and you can't turn around, point the finger, at you know, other sectors and short stay and say, you know, it’s our problem. The bottom line is what people want, what tourist want and if they are changing, you know, what they like and how they travel, that’s not us… but that’s the market, that's how it changes and that is what is happening and you can't do (anything) about that except being positive and adapt and change to that market, instead of saying, you know, things are different from 10 years ago, they probably are, so, you have to change, as the market changes (Christensen and Raynor 2013).

The changing times demand a shift in beliefs, traditional practices, terminology, activities, and technology. Our research indicated that people, location, and employment play a crucial role in driving the demand for short-term stays in Margaret River. However, there are challenges to Airbnb's ability to meet this demand, many of which stem from an incident in 2004 when the local government allowed homeowners to host “schoolies” (students on school holidays). Participants 1 and 2 stated the following:

Apart from that historical incident back in about 2004. When people started doing some short stay accommodation in the residential areas in town, one weekend, all the schools came down and they had a fantastic weekend tightly run amok, vandalised a heap of things, created problems, had big parties [Participants 1 and 2].

The 2004 ‘schoolies’ incident in Margaret River resulted in a reluctance to legislate the short-term rental market in residential areas. Despite efforts to prevent similar incidents through digital platforms, management firms, reviews and managers, the limitation clause on short-term rentals persists, but the lack of enforcement agents or agencies makes enforcement difficult (Jackson 2019; Loney and Birch 2021). This creates a bias, as the council only appoints one enforcement office to monitor and sanction all short-term rental providers. This results in most properties being unmonitored; thus, fines are being issued to mainly those in the city, or where the council is located, highlighting a bias in local politics and policy-making that is attributed to hotel lobbyists seeking to level the playing field.

However, the negative image of Airbnb and other digital platforms in the accommodation sector highlights the need for a legislative approach to digital commerce. Councils are using regulation to rigidly define short-term rental providers, rather than finding a new approach to monitor and enforce bylaws. Despite guests having a greater social impact, there are no laws guiding their actions, like in the transport sector, where Uber passengers are held responsible for not following rules such as seatbelt usage. Four critical factors are shaping the social impact of digital platforms in the accommodation sector, namely regulation, management firms/managers, real estate, and e-commerce operators.

5.1 Regulation

The zoning laws in the short-stay accommodation (SSA) sector are causing difficulties for the local government and the Shire in terms of funds and monitoring. The current approach of the local government is reactive and lacks proper monitoring and enforcement capabilities, as evidenced by the limited staffing of only one compliance officer. This has led to a situation where property owners are taking advantage of the lack of regulation.

Regulation refers to the laws and policies governing the operation of short-stay accommodations through digital platforms, like Airbnb. These regulations are designed to protect the interests of the guests and the hosts, and to ensure the safe and responsible use of short-stay accommodations. They may include zoning laws, health and safety regulations and rules regarding the number of guests that can stay in a particular accommodation.

Local laws on digital platforms in regional Australia are not forward-thinking or adaptive, but reactive instead. Disruptive activities in the sector negatively impact local government revenue and threaten local businesses and markets. However, excessive regulation of Airbnb operators, who are like micro-entrepreneurs, is not seen as a public good (Oskam 2020). Despite this, local government in regional areas still enforce restrictions on Airbnb (NSW Government 2017, 2018). This lack of leadership and legislative guidance for digital commerce leaves regional local governments searching for solutions. For example, there is still differentiation between hosted and unhosted, short-term rentals in the NSW operation working document, which serves as a model for many regional areas. Participant 18 stated the following in this Regard:

A participant in analysing the confusion surrounding hosted and unhosted, stated if you are seriously thinking about hosted and un-hosted accommodation that's another stinking point that seems to be brought up amongst most of the accommodation providers. You know, if really when you think about it, if you are un-hosted accommodation provider, it means you were not just actually living here on the ground. So, you still must get someone to manage your property and that manager has to be in Margaret River because part of your license is that you must have someone within certain km radius that is available (rather responsible) for that property. Hence, you’ve got all the operators like, you got private people managing properties, you've got short stays, you've got in-house holidays, you’ve got private properties, being managers who manage properties (Christensen and Raynor 2013).

In their study of the short-term rental industry, Furukawa and Onuki (2022) noted the ongoing confusion surrounding the concept of hosted versus unhosted accommodation. Despite popular perception, unhosted accommodation does not necessarily mean the provider is not present on the premises. In fact, a property manager or representative may still be required to be within a certain distance of the property for management purposes (Furukawa and Onuki 2022). The need for a physical presence highlights the significance of effective management in the short-term rental market.

Research has shown that stringent regulations, such as the requirement for mandatory registration and licensing, have led to increased costs for the hosts which, in turn, have made it difficult for them to earn a substantial income from their rental properties (Abdul-Samad 2016; Thomas 2012). These findings are consistent with previous studies, suggesting that regulations play a crucial role in determining the success and profitability of short-term rental platforms, particularly for hosts (Abdul-Samad 2016; Thomas 2012). Participant 6 mentioned the following in this regard:

They (council) are over regulating building so, that, … because they are over regulating building, building from doing housing is becoming very costly, so being able to offer affordable housing down here is more of a problem, because, they are saying, you need to have triple glazed glass now, you need to have you know, standard of building, the front door can’t be glass anymore, it has to be a special wood, so, if you are going to be introducing this into this area, you are not just going to be able to have housing which people can rent (Belk 2009).

The argument here is that the construction of houses has become increasingly costly due to excessive regulations on building. As a result, it is challenging to provide affordable housing. The regulations require features such as triple-glazed glass and specific materials for front doors, making it difficult to offer rentable housing in this area.

Certain automated features of Airbnb can have an impact on the decision-making process of guests when choosing an accommodation. These features include cancellation policy flexibility, a homely atmosphere, cost-effectiveness, and a sense of independence (Lin et al. 2019; Zhu et al. 2019). According to research, guests tend to prioritise experiences over the actual accommodation when travelling; and are willing to spend more money on activities and events rather than on their place of stay. Thus, these automated features play a crucial role in assisting hosts to secure more bookings and increase their revenue, despite regulations that may potentially have a negative impact.

5.2 Management Firms/Manager

Management firms and managers play a crucial role in the short-stay market. They are responsible for managing the properties and ensuring that they comply with the relevant regulations. They also handle issues such as maintenance, cleaning, and customer service, allowing the hosts to focus on other aspects of their business. Management firms and managers can also provide value-added services, such as marketing and booking management, which can help to increase the visibility and popularity of the properties. However, there are insinuations that management firms and managers contribute towards housing inequality, and the rising cost of rental properties for longer stay. Participant 8 said the following in this regard:

I do think there is a very big impact on people being unable to afford rent in this area, because of the incredible tourist demand and the revenue earned by big corporation (Boto-García et al. 2023).

It is, on the other hand, also evident that the high demand for tourism and the revenue generated by corporations in the area have resulted in a significant impact on the affordability of rent for residents. The high costs associated with rental properties due to the influx of tourists have made it difficult for people to keep up with the rising costs. Nonetheless, it provides government with additional revenue since most corporates are heavily taxed compared to individuals in the digital platform space.

Revised: The demands and expectations of guests have also changed considerably. According to Ndaguba (2022), there are two primary categories of guests: those seeking peace and tranquillity away from the city's noise and crowds, and those looking for social interaction and a lively atmosphere.

Management companies and property managers cater for both types of guests, bridging the gap between what is known as unhosted accommodation and guest access. Properties that are considered unhosted are either managed by a professional individual or by a management company established for the purposes of short-term stays. There has been an increase in the number of management companies in Margaret River due to the many holiday homes that remain unoccupied for a significant amount of time each year. These companies offer a full range of services for the operation of holiday homes, from picking up guests from the airport to cleaning, welcoming, and providing community support.

The argument of Zach et al. (2020) on providing a conjectural dispute which establishes a disparity between management firms leasing properties on peer-to-peer and Airbnb (the platform) demonstrates that while management firms are unidimensional in providing access to guests, Airbnb operates a more complex business model with multiple actors as guests or providers (Dolnicar 2018). This assertion limits the functionality of the management firms, as several management firms are also in the direct business of acquiring properties. In terms of capacity, management firms are also engaged in sub-advertising properties. Other functions of management firms and managers may be captured in the assertion drawn from participant 14:

obviously after some due diligence about the owners, about the property and its suitability as a short stay, and as a property on our management firm. Then we would go to the neighbours and say, …We’re renting the house out. If you’ve got any questions at all give us a call. 7 days a week. So, they have an avenue to connect with us and if we have an issue then we try and change that. So we can adjust house numbers, we can control signage, we can control the T’s and C’s around the guest going in because we have a bond and if we can’t-which we’ve never gotten to the situation- if we can’t control that house and the effect on the community then we’d rather not have it, because that doesn’t do us any good either, so we’re not really interested in looking after houses that we can’t control the outcome but that’s such a small part of it; so, look I think overwhelmingly it’s a very positive, for most people in the community would view short stay as a very positive, of course there is some negative elements to that but that’s even far between (Carville et al. 2020).

This rapport creates positive and harmonious relationships between the management firms and the community. In Margaret River, research has demonstrated that properties with a management firm or manager have a higher rating, higher response rate, higher occupancy and revenue rate per annum, increased visuality, a superhost status, and less cancellations (Ndaguba 2022). There is also a correlation between increased revenue and wellbeing, which may imply more spending in the community (Ndaguba 2022; Doan Do et al. 2023). The idea of local prosperity is embedded in the promotion of the community and not merely individual upliftment or infrastructural improvements (Judd and Hinze 2018). However, it is the responsibility of the government to engage with and navigate the enduring tensions and conflicting interests among various groups that constitute the polity.

Digital fragmented statements and policies of the government make it difficult to distil the gains of the short-stay sector, as participant 18 noted:

you cannot manage property in town, without employing the local people, so you have to employ cleaners, …use local suppliers I have to use the local tribes, I think … people just having issues with in-house short investors buying properties and just not living here (Christensen and Raynor 2013).

In recent times, Margaret River has become one of the tourist destination areas with significant job opportunities but a lack of workers, due to the COVID-19 pandemic unavailability of bag-packers, inadequate social housing, paucity of long-stay accommodation and the high cost of long-stay rental apartments in regional Australia seem to fuel homelessness among locals, particularly indigenous Australians (Lefebvre 2020; Ndaguba 2022; Ndaguba 2022b). Although the assertion demonstrates that no one is left behind in the regional area, nonetheless the full potential of this region is truncated by shortages in human resources and technology, invariably, limiting prosperity of the regional area to trickle down to other smaller regions.

The pride in local prosperity and participation involves purchasing goods and services that are locally produced, while also investing, diverting, and reinvesting in the local communities as a measure to engender the sustainability of micro-entrepreneurs (Ndaguba 2019a). As Wallace (1999) succinctly puts it, the community economic development is integral for sustaining local economies and contributes towards gauging the perception of the social fabric of a free market in local parlance.

5.3 Short-Stay Providers

E-commerce operators refer to the companies that run the digital platforms connecting guests and hosts. These companies are responsible for providing the technology and infrastructure that make it possible for guests to easily find and book short-stay accommodations. They also handle payment processing and customer support and may offer additional services, such as insurance and travel recommendations. The e-commerce operators play a critical role in shaping the short-stay market, as they could influence the types of properties that are listed and the prices that are charged. Participant 2 remarked as follows in this regard:

Yes, so, well I think it’s such a huge part of any town down here in short-stay, so the overwhelming effect is very positive, and there’s a of people involved in it, you know, because it employs so many people, uhm and you’re talking about a lawn mower man, plumbers, electricians… uhm… you know, the list just goes on and on, gas supplies, water, firewood, you know, services around cleaning and, eh… cars., fuel you know all of those things so if you take out the short stay accommodation industry out of the town it would just be a different landscape and so it’s-it’s just… there’s a little bit of negativity on…on anything really; on change but there’s a bit of negativity around short-stay but I just think it’s a very small part of the community and-and probably _just divided by the lack of, uh, formal regulation (Aspebo and Kriegel 2021).

The short-stay accommodation (SSA) industry plays a huge role in the towns down here, and its impact is overwhelmingly positive. It employs many people, including people mowing lawns, plumbers, electricians, gas suppliers, water providers, firewood suppliers, cleaning services, car rental services and so forth. Without the SSA industry, the landscape of the town would be different. Despite this, there may be some negativity towards the industry, but it is likely a small part of the community due to a lack of formal regulation.

The theme map for SSA in regional discourse (Fig. 3) shows several correlations and associations, one of which is the relationship between the industry and the community. Another major relationship is between guests and registration, which is influenced by factors such as fire safety, long-term rental, non-registration, and the experience economy. These findings suggest that the participants in this research are primarily concerned about the relationship between guests and registration, as non-registered providers may lead to fire risks and increased pressure for long-term regional housing.

Figure 6 establishes a stepwise effect of the SSA in MR and argues that any form of limitation or prohibition which are the two dominant types of regulation in the sector would reduce the trickle-down effect and potentials. Nevertheless, Fig. 4 depicts an axiological representation of how the MR is influenced, by noting that Perth proximity accounts for a substantial social growth in MR, and that such relationship is not in isolation but associated with cuisine, the landscape and beaches in the local area, camping opportunities and the availability of Airbnb in the area.

Fig. 6
figure 6

Theoretical steps to the effect of short-stay accommodation on guest experience

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Issues of regulation have continued to play a critical role in shaping SSA discourse, specifically in Australia, parliamentary submissions are on the increase (Brown et al. 2019; NSW Government 2017, 2018; Shaw 2019). However, by overconcentrating on producing a regulatory framework for managing the affairs and activities of the SSA, regional councils are missing the bigger picture of providing legislative leadership for the digital future in local parlance. With developments in smart cities and aerotropolis, regional and metropolitan governments must reconsider what the digital future holds and how councils could better align themselves in embracing the future. Otherwise, local development will be hampered, and the means towards achieving smart regional interconnected areas become unsolicited.

6 Conclusion

As noted by Belk (2007), sharing is an alternative to individual ownership and has been a longstanding form of consumption (Botsman and Rogers 2011). The purpose of sharing is to cultivate a sense of collective ownership and consumption, not to differentiate between one's possessions and those of others (Botsman and Rogers 2011; Belk 2007). The growth of the short-stay market (SSM) sector can be attributed to a combination of technological advancement and the economics of time management (Brown et al. 2019). Tussyadiah (2016) identifies two key drivers of the SSM, from the perspectives of the homeowner and the guest. For guests, the drivers are cost-saving, enjoyment, home-like apartments and amenities (Stors and Kagermeier 2015). For the host and platform, the drivers are financial sustainability, satisfaction with the service provided, a sense of belonging and community (Deboosere et al. 2019; Magno et al. 2018; Masiero et al. 2015; Rigall-I-Torrent et al. 2011; Rodríguez-Pérez de Arenaza et al. 2019). Hosts prefer guests who participate in community affairs and engage with the community and experience economy, rather than those seeking to escape the bustle of a big city.

The short-stay accommodation sector offers economic opportunities but is faced with challenges. The end-to-end model is heavily taxed and regulated, while the booking channel model creates unsustainable conflicts. The COVID-19 pandemic has exacerbated these issues, particularly housing affordability, and availability. The diverse guests and services in the Margaret River region highlight the importance of a thriving experience economy, which is at risk if long-stay accommodation is not readily available for workers in the sector.

6.1 Theoretical and Managerial Implications

The theoretical and pragmatic rational for assessing the social drivers of short-stay accommodation in the MR economy are threefold: local development as a unifier for engendering community economic development; increased local opportunities to ensure that local participation is reinforced and local prosperity is engendered; and the local market, which forms the bedrock of the notion of SSA.

6.1.1 Local Development

The unifying concept for all things “communitarianism” would include local participation, local economic development, enhanced economic transformation, as well as increased economic opportunities, fiscal localism, and the idea of buy local, (re)invest local, and build local is the pillar of local development and community economic development (Beel et al. 2016; Beer 2014). Local development offers an avenue for involving communities in regional development, and local entrepreneurship. Guests and guest behaviours are moderated by other social cognitive factors and the environment (Coffey and Polese 1985; Michael et al. 2014).

In developing a conceptual map for local development in SSA (see Fig. 7), we demonstrate that guest spending, nature, monies accruing to hosts, the experience economy, Perth’s proximity to the regional area, holiday homes, managers and employment directly influence the social and economic vivacity of the local area. While other variables, such as culture, owner, wine and restaurants, play a significant role in shaping how Margaret River benefits socially and economically from the short-stay market.

Fig. 7
figure 7

Source: Leximancer 4.51 version (2021)

Concept map of theme, local development.

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Literature and the concept map have also demonstrated that there are a few outliers which may constitute encumbrances to the demand of SSA; they include unaffordability and availability of long-stay accommodation, incidences of fire outbreaks, and non-registered members operating short-stay accommodation. These three layers add to the reason why many people demand strict regulation of the operations of SSA in residential areas but leaves a lot to be desired for a regional area where the demand for accommodation outweighs the supply it.

The likelihood percentage of related concept name for SSA demonstrates that the proximity to Perth is far more important than substitutive threat (see Fig. 7) (Aspebo and Kriegel 2021; Sainaghi and Baggio 2020).

6.1.2 Increased Economic Transformation, Local Market, and Regulation

There’s a little bit of negativity on anything really on change but there’s a bit of negativity around short stay but I just think it’s a very small part of the community and probably just divided by the lack of formal regulation (Carville et al. 2020).

Research has shown that SSM stimulate local vivacity via increased guest presence, and spending. Nonetheless, there are few studies demonstrating whether property visibility may prompt increase guest stay, and revenue to the host.

A rise in visuality and other enablers increases the throughput of guests to an accommodation. The short-stay market offers people access to relatedly stress-free income for host and cheaper for guest. Although the price point has created controversies between the traditional enterprises and the disruptive sector of accommodation provision, there are the positive inclinations and several advantages to the traditional enterprise for providing accommodation of the short-stay sector.

The research shows that properties managed by a professional manager or management firm tend to have higher ratings, better response rates, higher occupancy and revenue per year, better visibility, and a higher likelihood of being designated a superhost. For these properties to succeed, it is crucial to have a well-maintained property and to understand the market. A stable economy is key to the success of digital firms, as stagflation can hinder growth and progress. Sustaining innovation, as emphasised by Christensen and Raynor (2013), is crucial for businesses to remain competitive. However, laws that limit or inhibit the short-term rental market's potential can cause friction and must be reconsidered, especially as digital markets continue to grow (Herhausen et al. 2020; Morzhyna et al. 2019).

7 Summary of Findings

The result from the interviewers demonstrates that there are two types of short-stay accommodation platform models: the booking platform model and the end-to-end model. The booking platform model refers to digital platforms that only accept bookings on behalf of a host, among others, Airbnb, Stays and Flipkey. The end-to-end model refers to providers who participate in the entire ecosystem of the short-stay accommodation enterprise, doing bookings, welcoming guests, housekeeping and maintenance of the property. However, both are at a cost to the host. The booking platform model attracts a direct cost from digital platform providers between 12 and 18%, while the end-to-end model attracts 20% commission from management companies, such as Exclusive Escapes and Seaside Escapes or individuals managing properties on behalf of rentvestors (investors).

Summary of engagement from the interview conducted in AMR:

  • There are two models of short-stay accommodation options available: the end-to-end model and the booking channel model. The end-to-end model is highly taxed and heavily regulated, while the booking channel model increases property value but creates unsustainable conflicts in the sector.

  • The economic opportunities created by both models or forms of SSA are immense, but the availability and affordability of long-stay accommodation is threatening workers' ability to effectively take advantage of these opportunities.

  • Zoning limits the funds accruing to the Shire; and government is unable to monitor and enforce its policies on the SSA sector, leading to ingenuity of property owners.

  • In AMR, it is easier to buy a property than to lease one, which has exacerbated homelessness in the region.

  • Housing inequality, availability and affordability are changing the residential landscape in the region. As money flows from outside the region, people who have ancestral lands migrate elsewhere due to the high prices of commodities in the region.

  • Long-stay accommodation is currently unavailable in the cities of Dunsborough, Margaret River, and Gracetown, among others, due to the extreme border closure.

  • End-to-end service providers are seeking to level the playing field, while the long-stay accommodation providers are not. The real estate sector is experiencing a rise in the sales of holiday homes, both in price and commission, and in the number of properties sold.

  • The level of growth in approval and completion of grandma flats is unprecedented, and the gig economy is at the centre of it all, but it appears to threaten the end-to-end accommodation providers.

  • While COVID-19 continues to cause an increase in economic imbalance and social exclusion around the world, Margaret River and its region were experiencing a boom.

  • The nature of guests in AMR is diverse, just like the services rendered. However, with a rise in economic opportunities and a corresponding increase in housing affordability and availability, “the experience economy” is at risk. When tour guides, chefs, artisans, and others are unable to get long-stay accommodation, the experience economy plummets.

  • The local government has a reactive approach to policy formulation and implementation, relying on a laissez faire leadership style until issues arise. This is demonstrated by the short-term hiring of only one compliance officer. It suggests a lack of capacity to monitor or enforce zoning laws.

  • The strong community and family-oriented culture of MR is in jeopardy, with only solid Dunsborough remaining. Volunteer-run fire and ambulance services are aging and lack younger participants, due to the shortage of affordable long-term housing options.

  • The uncertain future of the SSA sector makes it difficult for individuals, corporations, or groups to gain complete rights through property acquisitions in the zoning area.

  • The local government, end-to-end providers, the experience economy, and the local economy are missing out on significant opportunities, a lose–lose situation for all parties:

    1. o

      The local government loses tax revenue; the central government loses GST from end-to-end providers and the community loses from reduced investment.

    2. p

      End-to-end providers miss out on using unregulated platform providers and the limited number of advertising options for their accommodation spaces.

    3. q

      The experience economy loses due to the absence of long-term staff to take advantage of opportunities.

    4. r

      The local economy also suffers, as visitors spend their money at big supermarkets, like Coles and Woolworth, instead of supporting local businesses.

8 Conclusion

The short-stay accommodation sector in and around Margaret River has two models: the end-to-end model and the booking channel model. The end-to-end model is heavily taxed and regulated, while the booking channel model increases property value but creates conflict (Ndaguba and Zyl 2023). The economic opportunities are immense, but the lack of long-stay accommodation is impacting on workers. Zoning limits funds accruing to the government, and there is a lack of monitoring and enforcement leading to property owner ingenuity. It is easier to buy property than leasing it, which exacerbates homelessness. Housing inequality, availability, and affordability are changing the landscape of residents, with ancestral lands being sold due to high prices. Long-stay accommodation is unavailable due to the extreme border closure. The end-to-end providers are seeking to level the playing field, while the long-stay providers are not. The gig economy is growing but poses a threat to end-to-end providers. The government is taking a reactive approach to policy formulation and lacks the capacity to monitor zoning laws. The strong community culture is in jeopardy, and all parties are missing out on opportunities, resulting in a loss of tax revenue, reduced investment, limited advertising options, and support for local businesses.

The short-stay sector has created new economic frontiers and opportunities for local advancement in communities by empowering local individuals and firms. This shows that issues surrounding the operability and functionality of the short-stay sector may have been misunderstood over time. As participant 18 stated, no property within the short-stay business can go unattended, since every property must periodically have a manager or owner onsite. Despite, unhosted accommodation been physically visited and maintained, most regulatory frameworks remain unfavourable (see NSW Opinion Paper among others).

In addition to the unfavourable conditions of unhosted properties, policy changes are necessary to activate and accommodate all players in the short-stay sector. However, the lack of focus or impact of the sector on local development or local economic development is a cause for concern because the hospitality sector should be able to identify and use the endogenous potential and local resources of the communities in which they function to build defined capacity and expertise that could improve the economic future and strengthen the sustainable finance and quality of life of its resident.

To improve the quality of the life of residents, throughput needs to increase, because the higher the number of visitors, the more opportunities for scaling different activities. However, this will be stagnant if there is less collaboration, and where the playing field of registered members is skewed (unfavourable to some). Thus, appreciating the dynamics in the marketplace may be a good place to begin the discussion, because while some guests want to isolate themselves in a property, others prepare to have company. The choice is with the guests, not the regulatory body.

Participant 18 noted the following:

the narrative needs to change and it needs to be seen as a really positive and important sector of the tourism industry just like the winery, just like the tour operator, just like the motels and hotels, you know, tourists have changed and actually they are not drawn to the motels and hotels style of travel anymore and you can't turn around, point the finger, at … other sectors and short stay and say, you know, it’s our problem. The bottom line is what people want, what tourist want … what they like and how they travel, that’s not us… but that’s the market, that's how it changes and that is what is happening and you can't do (anything) about that except being positive and adapt and change to that market, instead of saying, things are different from 10 years ago, they probably are, so, you have to change, as the market changes (Christensen and Raynor 2013).

The tourism industry needs to change its mindset on short-stay accommodations and acknowledge it as a positive and vital sector, just like wineries, tour operators and hotels. Tourists have changed their mindsets and their preferences for lodging have changed, moving away from traditional hotel-style accommodations. The tourism industry cannot blame the rise of short-stay accommodation for their challenges; and should embrace the changing market demands and adapt to these changes to remain relevant instead (Boto-García et al. 2023). Refusal to adapt and evolve with changing tourist preferences will only result in them lagging. It is important to recognise that the market is constantly evolving and changing, and the tourism industry must be proactive to keep up with the pace and constant changes. By embracing the positive aspects of short stays and adapting to the changing market, the industry will be better equipped to meet the demands and expectations of tourists.

In summary, the social and economic landscape of Margaret River is changing due to the impact of short-term accommodation options. The strong community culture is at risk and housing inequality, availability and affordability are affecting the residents of the region. The end-to-end service providers are seeking equal opportunities, while the real estate sector is experiencing an increase in holiday home sales, but this has also led to an increase in homelessness in the region. Long-term accommodation options are currently unavailable, causing challenges for volunteer-run services and gig economy workers. The future of the short-term accommodation sector in the region is uncertain, leading to difficulties in the acquisition of property.

In conclusion, the short-stay accommodation sector in Margaret River and its surrounding region presents opportunities and challenges. However, the lack of long-stay accommodation impacts the inability of the workers and government to enforce zoning laws leading to property owner ingenuity. The gig economy is growing, causing threats to end-to-end providers, and the government's reactive approach to policy formulation is causing a loss in tax revenue, reduced investment, and limited support for local businesses. The tourism industry needs to change its perspective of short-stay accommodations and acknowledge it as a positive and vital sector and adapt to the changing market demands and the preferences of tourists to remain relevant. To improve the quality of life of residents, the playing field needs to be levelled for all role players and policy changes need to be implemented to accommodate all players in the sector.