Project Title

Research on economic impacts of short-term rentals in houses and apartments for visitors offered through digital platforms and potential regulatory implications in APEC economies 

Project Year

2024   

Project Number

TWG_202_2024 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

TWG_202_2024 

Project Title

Research on economic impacts of short-term rentals in houses and apartments for visitors offered through digital platforms and potential regulatory implications in APEC economies 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

General Project Account 

Sub-fund

None 

Project Year

2024 

Project Session

Session 2 

APEC Funding

50,308 

Co-funding Amount

Total Project Value

50,308 

Sponsoring Forum

Tourism Working Group (TWG) 

Topics

Tourism 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru 

Co-Sponsoring Economies

Chile; Japan; Malaysia; Chinese Taipei; Viet Nam 

Expected Start Date

01/07/2025 

Expected Completion Date

30/06/2026 

Project Proponent Name 1

Renzo Lozano 

Job Title 1

Tourism Management Specialist 

Organization 1

Ministry of Foreign Trade and Tourism (MINCETUR) 

Postal Address 1

Not Applicable 

Telephone 1

5136100 

Fax 1

Not Applicable 

Email 1

rlozano@mincetur.gob.pe 

Project Proponent Name 2

Ruth Milagros Garcia Cruz 

Job Title 2

Director of Tourism Regulations and Quality 

Organization 2

Ministry of Foreign Trade and Tourism (MINCETUR) 

Postal Address 2

Not Applicable 

Telephone 2

5136100 

Fax 2

Not Applicable 

Email 2

rgarcia@mincetur.gob.pe 

Declaration

Renzo Lozano 

Project Summary

The expansion of short-term rentals in houses and apartments for visitors offered through digital platforms has not come without a controversial debate about its impacts. Some of the issues that would have emerged include economic impacts of this business model. In this scenario, APEC economies can aim to analyze the economic impacts of this business model as well as the feasibility of designing regulatory or non-regulatory interventions that promote them as sustainable business opportunities for local communities in the tourism sector, providing citizens with an evidence-based public value service. To this end, it is proposed to conduct research focused on statistical data, economic indicators, discourse analysis, trends and challenges, and current tourist regulations and others on the matter. The project includes an economic impact research, a comparative study of existing tourist regulations and others on the matter, a virtual workshop to discuss and debate the results, and a final report.

Relevance

Region

The continued growth of tourism creates positive impacts not only for tourism, but also for destination economies and their differentiation, their people, and their environment. According to UN Tourism, in many cases the new business models do not fit the existing regulatory framework and there is a considerable grey area between private and commercial providers, which could cause disputes in existing regulatory regimes and lead to concerns of unfair competition. ICT has modified the development of the tourism sector much more than in other sectors because of the emergence of low-cost providers and their online distribution/sale, reservations or peer-to-peer recommendation digital platforms. In the digital age, consumers are more open to this new way of understanding consumption, which escapes the standards in tourism sector. In order to tackle these issues, governments have been examining their regulations to adapt to this new reality.

At the present time, there are types of accommodation that do not fit conventional accommodation modalities, mainly due to their location, architectural and construction characteristics and innovation in service. These modalities may diversify and extend in various locations in the future.

In this scenario, in order to provide policymakers in APEC economies with accurate information to assess the actual economic impact of short-term rentals services so that they can develop appropriate responses, it is proposed to conduct research focused on statistical data, economic indicators, discourse analysis, trends and challenges, and current tourist regulations and others on the matter in APEC economies. It may also contribute to create an environment that allows local communities to benefit from the opportunities offered by these business models as well as sustainable destination planning and management.

Eligibility and Fund Priorities
This project meets the eligibility criteria of the GPA funding priorities, given that it will contribute to disseminate practices for government tourism officials to encourage innovation and digitalization to promote the transition to the formal and global economy of short-term rentals in houses and apartments for visitors offered through digital platforms.

Capacity Building
This project will allow, through an economic impact research and a comparative study of current tourist regulations and others on short-term rentals in houses and apartments for visitors offered through digital platforms in APEC economies,  to obtain, share, strengthen, maintain and develop knowledge, skills and abilities among government tourism officials of all APEC economies within the framework of the design and implementation of responses, contributing to the improvement of the quality of regulatory processes as well as the strengthening of the institutions that are responsible for approving tourism regulations, which may lead to improved sustainable and innovative tourism. In summary, the proposed project has the potential to build the capacity of APEC member economies to attain sustainable growth.

Objectives

The project aims to provide policymakers in APEC economies with accurate information to assess the actual economic impact of short-term rentals services so that APEC economies can develop appropriate responses, if deemed necessary.

Regarding the local communities, it may contribute to create an environment that allows them to benefit from the opportunities offered by these business models as well as sustainable destination planning and management.

Alignment

APEC

The project aligns with Putrajaya Vision 2040 and its Aotearoa Plan of Action, specifically to the APA’s objective “We will promote economic policies, cooperation and growth, which will support global efforts to comprehensively address all environmental challenges, including climate change, extreme weather and natural disasters, for a sustainable planet.”, which considers as collective actions that economies advance work on sustainable tourism to advance the Putrajaya Vision 2040 third economic driver – Strong, Balanced, Secure, Sustainable and Inclusive Growth. Furthermore, it is in the line with Aotearoa Plan of Action as it considers that economies advance future APEC initiatives on structural reform under the four pillars of the Enhanced APEC Agenda for Structural Reform (EAASR), including through sharing information and best practice, promoting good regulatory practices and regulatory cooperation, among others.

It is also aligned with APEC Peru 2024 Priority 3: Sustainable growth for resilient development, as it will develop tools that allow policymakers to generate better public policies and other interventions linked to short-term rentals in houses and apartments for visitors offered through digital platforms.

Forum
The project is aligned with the fourth priority area of APEC Tourism Working Group (TWG) 2020-2024, which is “Sustainable tourism and economic growth”. It also responds to the APEC 12th Tourism Ministers Statement, which point 4th recognizes “the role innovation, digitalization, and an enabling business environment can play in facilitating the transition of tourism enterprises into the formal economy and supporting the growth of small and medium-sized enterprises in the tourism sector.”

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Output

1) Preliminary Research Report

The preliminary research report will focus on economic impacts of short- term rentals in houses and apartments for visitors offered through digital platforms in APEC economies and includes a comparative study on current tourist regulations and others on the matter referred to e-commerce, taxation, infrastructure, safety and health, consumer protection, childhood protection, accessibility for people with disabilities, among others. It will involve identifying preliminary key economic variables, assessing data collection feasibility, and conducting initial data analysis to refine the research design. Additionally, the preliminary research report will include information on how short-term rental providers have implemented actions conducive to address gender-based safety concerns, such as harassment or violence. The document will include information about all the APEC economies. 

A combination of methods to gather different perspectives will be used: literature review, discourse analysis, interviews, surveys and quantitative and qualitative data analysis. The length of the preliminary research report must be at least 50 pages and will include, at minimum: introduction, executive summary, results of the feasibility testing (data availability, platform data, government data, surveys, interviews, etc.), preliminary comparative analysis and case studies (in these last ones it will include information about e-commerce, taxation, infrastructure, safety and health, consumer protection, childhood protection, accessibility for people with disabilities, among others). The preliminary research will be completed in December 2025. In the General Information Circular (GIC) prior to the workshop, a brief report will be included summarizing the results of the "Preliminary Research Report" in order to be incorporated to the final report. The report as such will also be circulated among APEC economies as an annex to the GIC. 

This research will be a beneficial tool for tourism authorities and tourism decision-makers in the APEC region to have accurate information to design public policies based on hard evidence, helping to ensure that rules are well-targeted and effective. Additionally, the study provides insight into how different aspects—such as taxation, consumer protection, and safety - impact local economies. Such insights enable policymakers to foresee potential economic disruptions and take appropriate measures. On the other hand, the project highlights key areas which are critical to consumer satisfaction. Short-term rental providers can leverage these insights to improve their service offerings, thereby building stronger trust with customers. Whether through integrating new technologies or improving customer engagement, these insights can drive operational improvements and create a more competitive user experience.

2) Virtual Workshop

This output implies submitting the project briefing as a guidance framework for the succeeding activities. In addition, the preliminary research report will be presented for debate and discussion by a panel. 

The purpose of this event is to present the preliminary findings regarding the economic impacts of short-term rentals in houses and apartments for visitors in APEC economies. To this end, information will be provided concerning statistical data, accessibility for people with disabilities, economic indicators and discourse analysis. The latter aspect is crucial for researchers to uncover differing views on economic impacts and priorities of stakeholders on short-term rentals for visitors. 

Additionally, the workshop will include a session to discuss on how short- term rental providers have implemented actions conducive to address gender-based safety concerns, such as harassment or violence. 

The expected results are a panel discussions summary, workshop synthesis report and possible voluntary recommendations to implement regulatory and non-regulatory interventions on short-term rentals in houses and apartments for visitors offered through digital platforms in APEC economies. These results will contribute to promoting collaboration, the exchange of knowledge and the identification of common challenges to create the conditions necessary for making this business model sustainable and establishing a mechanism for development for local communities within the APEC region. 

The target audience will be tourism national and subnational officials, private sector actors, international tourism associations, academia, specialists in tourism, among others in APEC economies. The workshop will last 3 hours, at the maximum, and will include some interactive activities, such as: word cloud, mind mapping, live Q&A, live polling, etc. It is expected that 50 participants attend the virtual workshop. 

The event will have the following draft agenda: 

a. Opening remarks

b. Project briefing

c. Preliminary results

d. Panel discussion including Q&A (with 2 abroad female experts, at minimum)

e. Moving forward: closing, conclusions and recommendations 

The virtual workshop is expected to take place in March 2026.

3) Final Report

The objective of the final report is to present, in a summarized and concise manner, the results obtained from the research on economic impacts of short-term rentals in houses and apartments for visitors offered through digital platforms and potential regulatory implications in the APEC economies. 

As a result, policymakers will be able to understand the potential economic benefits and costs of these business models, enabling local governments and organizations to effectively plan for the economic development of tourism services. This will provide APEC policymakers with reliable, real-time evidence to consider when evaluating the feasibility of regulatory intervention on short-term rentals in houses and apartments for visitors. 

These inputs will allow APEC economies to learn about other elements to consider in the design of regulatory or non-regulatory interventions that fit market needs and expectations.

This report will be completed in May 2026. The final version will be shared with all APEC economies. The length of the report must be at least 100 pages excluding annexes and will include, at minimum: executive summary, introduction, in-depth comparative analysis (focused on e- commerce, taxation, infrastructure, safety and health, consumer protection, childhood protection, accessibility for people with disabilities, among others), economic impact analysis of short-term rentals, case studies, conclusions, recommendations and annexes. Information from existing research from international will also be included, as well as key findings from the virtual workshop.

Outcome
1) Increased knowledge amongst participant on the economic impacts of short-term rentals and digital platform- based tourism services. This approach ensures that knowledge dissemination reaches a broad audience, benefiting governments, hosts, guests, local businesses, and other stakeholders.

2) Increased knowledge amongst participants for designing tourism policies on short-term rentals for visitors that balance economic development of providers, tourism development and concerns of the local residents. By leveraging the insights from this research, policymakers can craft more effective, balanced, and forward-looking regulations that maximize economic benefits while addressing the concerns of residents and other tourism stakeholders. Furthermore, this approach will support sustainable tourism growth, ensuring that short-term rentals complement local economies development.

Beneficiaries

Primary beneficiaries will be government tourism officials responsible for implementing regulatory and non-regulatory responses, contributing to the improvement of the quality of regulatory processes as well as the strengthening of the institutions and innovation ecosystem, which will lead to improving the quality of life of all citizens through a sustainable and innovative tourism. Secondary beneficiaries will be short-term rentals providers, who will benefit from the implementation of responses that promote innovation in the tourism sector, which will lead to a more satisfactory tourism experience and the positioning of competitive tourist destinations.

-  Tourism policymakers: they will be able to acknowledge into how short-term rentals contribute to economic growth of tourism and identify the level of impact that these businesses have on the occupancy rates of conventional accommodations, housing prices, tourism seasonality, among others. Therefore, regulation will be designed so that they balance economic development, promoting tourism and addressing local concerns. Furthermore, marketing efforts could be implemented attract visitors in a way that benefits the local economy while avoiding over-tourism in certain areas.

They should have experience in implementing tourism policies and regulations to promote business formalization in the tourism sector. Additionally, communication and collaboration skills are essential for exchanging experiences, learning from best practices, and establishing collaboration networks.

Short-term rental hosts: owners and hosts will benefit from clearer government responses that reduce uncertainty regarding their obligations so they can operate more confidently, creating a safer and more efficient environment for both guests and owners or hosts and avoiding legal issues while protecting their investments . They will also be provided with insights into the economic performance of their business model, allowing them to make informed decisions about whether to expand or adjust their rental operations sustainably based on how market trends and conditions impact pricing.

Dissemination

-  Electronic publication of the final report: the final report is expected to be an APEC electronic publication. The publication will be designed to be attractive and accessible, with a suitable format for electronic distribution and easy download. This report will contain the results obtained from the preliminary research report on economic impacts of short-term rentals in houses and apartments for visitors offered through digital platforms and the virtual workshop, as well as conclusions and recommendations.

-  Website: the final report will be hosted on the official websites of APEC and the Ministry of Foreign Trade and Tourism of Peru, providing a reliable and widely recognized platform for the dissemination of the results.

- Social media: Social media channels such as X, Facebook, LinkedIn and Instagram of the Ministry of Foreign Trade and Tourism of Peru and APEC will be used to promote and disseminate the project's results. Excerpts and highlighted summaries from the final report will be published, along with links to the website for access to the full version of the report. Social media platforms will help reach a wider audience among all APEC economies and generate interest in the project's results.

- Targeted dissemination to the project's intended audience: the final report of the project will be sent by e-mail to the stakeholders related to this market.

- Researchers and academics: reports and documents will be shared with this community to encourage further research and knowledge exchange in the field of short-term rentals for visitors development.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

The report may be considered as a reference for all government tourism officials in charge of tourist regulations. In the same way, destination management organizations (DMO) will be able to learn about the tourism management that is implemented in APEC economies and thus adapt suitable responses. The final report is expected to be shared with SMEWG (Small and Medium Enterprises Group) and DESG (Digital Economy Steering Group). The project promotes cross-fora collaboration as it also aligns with ongoing work in the Apec Internet and Digital Economy Roadmap (AIDER) that lays out key areas of work such as promoting coherence and cooperation of regulatory approaches affecting the internet and digital economy.

Sustainability

The project incorporates the recommendation of the Council on International Regulatory Co-operation to Tackle Global Challenges of the OECD, which recognizes that international regulatory co-operation has become an essential building block to ensure the quality and effectiveness of regulation today and therefore promotes co- operating internationally (bilaterally, plurilaterally and multilaterally) through collaborating in international fora, where appropriate, to collect evidence and gather expertise on issues of common interest and play an active role in the development of outputs.

Moreover, through the multi-stakeholder approach, the project also aligns with APEC’s broader focus on inclusive growth by ensuring that small businesses and local communities benefit from the digital economy. In particular, SMEs and local hosts benefit from the digital economy which, in the case of tourism, can also help developing economies overcome destination management challenges and provide opportunities for women, rural communities and indigenous peoples, improving their access to markets and promoting financial inclusion.

The project seeks to contribute over a longer period of time to the APEC financing period. These business models continue to grow constantly in the APEC economies. Therefore, policymakers will require better prepared information to be able to make decisions regarding what kind of response to implement to ensure that this activity is developed in a sustainable way. The workshop discussions and final report will help the beneficiaries to establish medium and long-term goals in relation to the development of responses on short-term rentals in houses and apartments for visitors offered through digital platforms in APEC economies, leaving a precedent that can be replicated and improvable over time in terms of the new information obtained and processed for each economy.

Project Overseers

Please see Project Proposal in Supporting Documents folder.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Waivers

Not Applicable.

Are there any supporting document attached?

Yes 
Attachments
Version: 2.0 
Created at 31/05/2025 22:11  by Lucy Phua 
Last modified at 31/05/2025 22:13  by Lucy Phua 
Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
Attachments
Content Type: Standard Proposal
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