Airbnb’s Staggering Economic Footprint In Australia: More Than Just A Host Side Hustle

A fresh report published in May 2025 has laid bare the astonishing scale of Airbnb’s economic role in Australia—revealing that this platform no longer sits at the fringes of the hospitality sector, but is now a major pillar supporting jobs, regional economies, and local small businesses.

A $20.3 Billion Contribution & 107,000 Jobs

According to the “Economic Impact of Airbnb in Australia” report, commissioned by Airbnb and conducted by Oxford Economics, the spending associated with Airbnb in 2024 amounted to AUD 20.3 billion in gross economic activity. That sum includes the direct earnings of hosts, guest spending in destinations, and broader ripple effects through supply chains and wage spending.

Those ripple effects are real. The report estimates that Airbnb-supported activity backed 107,000 jobs across the country—roughly one in every 15 jobs in Australia’s travel and tourism sector. Taken another way, Airbnb is responsible for about 7% of the tourism industry GDP and employment in Australia in 2024. A

Of course, the 20.3 billion figure is a gross measurement—that is, it doesn’t subtract what might have been generated by alternative accommodation or tourism channels. Nevertheless, it underscores the sheer scale of Airbnb’s presence in the economy.

Beyond Accommodation: Where Guest Dollars Flow

What’s especially striking is how far guest dollars travel beyond just paying for a room. In 2024, Airbnb guests reportedly spent AUD 16 billion on both accommodation and non-accommodation (i.e. local spending) during their stays.

Breaking down that in-destination spending shows a powerful local multiplier effect:

• 34 cents of every “tourism dollar” goes to restaurants and bars
• 20 cents goes to shopping/retail
• 19 cents goes to groceries
• The remainder is split among arts & entertainment, local transport, and other services.

These fractions mean that when a guest stays in a regional town or a suburb, their presence supports local cafés, bakeries, grocers, boutique shops, tours, and more. One host quoted in the report from the Illawarra noted that guests often follow hosts’ personalised recommendations—boosting local businesses that otherwise may not have been discovered.

The Regional Shift Holds

Another trend of note: since the pandemic, Airbnb has driven a more geographically dispersed tourism profile in Australia. In 2024, 33.2% of gross booking value (i.e. what guests pay for accommodation) came from non-urban areas. That’s lower than the pandemic high (around 45.2% in 2021) but still four percentage points above the 2019 baseline of 29.5%. A

In plain terms, Australians are continuing to rediscover regional and rural areas, and their dollars are flowing further beyond just the coasts or capital cities. For many small towns, even a modest influx of guests can translate into noticeable boosts in local shop revenue, dining, and services.

Domestic Travel Leads the Charge

It’s not just geography that has shifted. The source of demand has too. In 2024, 84% of Airbnb guests in Australia were domestic travellers—a steep increase from 75% in 2019. This reflects the “stay-at-home holiday” boom that emerged during pandemic lockdowns but appears to have lasting appeal.

Such a high domestic share has several implications: it means more consistent demand (less reliant on global travel patterns), encourages multi-trip, short-haul travel, and helps spread tourism benefits even in off-peak seasons.

State-by-State: Airbnb’s Footprint Across Australia

The impact is not uniform across states—but in every one, Airbnb plays a significant role:

• New South Wales saw the largest contribution: AUD 6.6 billion to state GSP, supporting about 32,200 jobs and delivering AUD 2.2 billion in wages.
• Victoria: AUD 5.4 billion, 30,900 jobs, AUD 1.8 billion in wages.
• Queensland: AUD 4.8 billion, 25,600 jobs, AUD 1.6 billion in wages.

Even states typically seen as more remote or less populated benefit meaningfully, manifesting Airbnb’s wide geographic reach.

What This Means for Local Economies and Policy

This report offers more than static numbers — it suggests some powerful implications for local economies, planners, and policymakers.

1. Small Businesses Win
   The strongest ripple effect is felt by regional cafes, corner stores, grocers, independent retailers, transport providers, and local tour operators. Unlike large hotel chains that centralise service and supply, Airbnb disperses economic benefit into everyday community businesses.
2. Tourism Infrastructure Needs Support
   If regional towns are getting more tourism dollars, local governments must ensure that supporting infrastructure (roads, signage, waste management, digital connectivity) can keep pace without degradation.
3. Balancing Regulation and Growth
   Some local councils have pushed back on increased short-term rental activity, citing housing pressure or community concerns. Yet the report suggests bans or caps may cut into local economic lifelines. In policy debates, the economic tradeoffs should be front and centre.
4. Encouraging Host Investments
   Many hosts invest their earnings back into property upgrades, hiring cleaners or artisans, landscaping or maintenance—further amplifying multiplier effects in local supply chains.
5. Diversity in Accommodation Choice
   Airbnb expands lodging options, often at varying price tiers and “neighbourhood” experiences. This diversity helps satisfy segments of travellers (families, longer stays, local-style experiences) not fully served by hotel models.

Beyond the Report: Questions That Remain

• How do platforms like Booking.com map into these contributions?
  The Airbnb report focuses solely on its own footprint. But with players like Booking.com expanding rapidly into private homes and alternative stays, the aggregate “independent-host economy” impact is likely even higher.
• What is the net impact vs. displacement?
  Because the study reports a gross contribution, it doesn’t subtract what might shift from hotels or other lodging if Airbnb didn’t exist. More nuanced analyses might help understand substitution effects.
• How sustainable is regional demand over time?
  With international travel rebounding, will regional preferences hold steady or revert? The report hints at a structural shift—but long-term trends remain to be seen.
• Does regulatory pressure squash this growth?
  Restrictions on short-term rentals (zoning controls, licensing, caps) are rising in many places. Policymakers must weigh the economic upside against community and housing concerns.

Final Word: Airbnb as Economic Engine, Not Just Accommodation

What was once seen as a side-gig for homeowners has grown into a structural part of the Australian travel and tourism equation. The new data shows Airbnb is doing far more than moving guests into spare rooms—it’s feeding cafes, shop aisles, regional towns, cleaners, tradespeople, and more.

For accommodation blogs, local governments, and communities alike, this data is a strong reminder: when you support local hosts, you’re often supporting entire micro-economies.