Study on the Assessment of the Regulatory Aspects Affecting the Collaborative Economy in the Tourism Accommodation Sector in the 28 Member States ...

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Study on the Assessment of the
   Regulatory Aspects Affecting the
     Collaborative Economy in the
  Tourism Accommodation Sector in
         the 28 Member States
   (580/PP/GRO/IMA/15/15111J)

European Commission - Directorate General Internal Market, Industry, Entrepreneurship
                               and SMEs (DG GROW)

                                       Task 4
                          Market Case study – Brussels
This study was carried out for the European Commission by
Spark Legal Network and Valdani Vicari & Associati.

                                               Spark Legal Network

                                               Valdani Vicari & Associati

                                               Julia Rzepecka
                                               Marius Dragulin
                                               Lison Rabuel
                                               Ricardas Juskevicius
                                               Vilma Kuuliala
                                               Timothe Peroz
                                               Iva Plasilova
                                               Adriana Rodriguez Diaz

DISCLAIMER
By the European Commission, Directorate General Internal Market, Industry, Entrepreneurship and SMEs.
The information and views set out in this study are those of the author(s) and do not necessarily reflect the official
opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study.
Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use
which may be made of the information contained therein.

ISBN 978-92-79-84007-4

doi: 10.2873/183233

© European Union, (2018). All rights reserved. Certain parts are licensed under conditions to the EU.
TABLE OF CONTENTS

1     OVERVIEW OF THE ACCOMMODATION SECTOR ......................................................... 5
      1.1   Main players in the collaborative economy accommodation sector ...................... 6
      1.2   Overview of economic development of the collaborative economy
            accommodation market ................................................................................. 8
      1.3   Overview of applicable local rules and regulatory developments ......................... 9
      1.4   Summary of indicators .................................................................................10
2     REAL ESTATE AND HOUSING AVAILABILITY .............................................................13
      2.1   Overview of average rental market prices .......................................................13
      2.2   Overview of number of vacant properties .......................................................15
      2.3   Overview of occupancy ................................................................................17
3     INCOME AND OTHER TOURISM INDICATORS ...........................................................19
      3.1   Income indicators ........................................................................................19
      3.2   Tourism indicators .......................................................................................19
4     IMPACT ON LOCAL COMMUNITIES ..........................................................................21
      4.1   Development of ancillary services ..................................................................21
      4.2   Housing supply changes ...............................................................................21
      4.3   Inhabitants’ perception of collaborative short-term rental platforms...................22
      4.4   Impact on public services .............................................................................23
5     FUTURE DEVELOPMENTS .......................................................................................24
6     ANNEX 1: LIST OF INTERVIEWEES .........................................................................25
7     ANNEX 2: LIST OF REFERENCES .............................................................................25

FIGURES

Figure 1: Map of Brussels ................................................................................... 6
Figure 2: Number of AirBnB accommodations in Brussels between 2010 and 2017..... 8
Figure 3: Total available listings on AirBnB in Brussels region, by type, between July
     2015 and April 2017 .................................................................................... 9
Figure 4: Overview of the current and estimated revenue and its growth trend in the
     “vacation rentals” sector in Belgium, 2015-2021 ............................................. 9
Figure 5: Long-term rent of one-bedroom apartments in Brussels (in EUR) ..............13
Figure 6: Number of registered residences (housing stock) in Brussels ....................15
Figure 7: Occupancy rate AirBnB all listings and hotel rooms..................................18

TABLES

Table 1: Summary of indicators ..........................................................................10
Table 2: Average monthly rents for long-term rentals in 2016 ................................14
Table 3: Average daily and monthly rates for AirBnB listings and hotel rooms in 2016
     ...............................................................................................................14
Table 4: Summary overview of average monthly rental market prices for long- and
    short-term rentals in 2015 ..........................................................................14
Table 5: Summary overview of number of available properties -Brussels .................17
Table 6: Summary overview of occupancy -Brussels .............................................18
Table 7: Summary overview of income indicators – Brussels ..................................19
Table 8 Summary overview of tourism indicators – Brussels...................................20
Task 4 – Annex 5 - Market Case study – Brussels

DEFINITIONS:

The key terms used in the case study are defined below. It should be noted that these
definitions may differ from the definitions used by the European Commission.

Primary residences: those residences (dwellings) where the person resides more than
180 days per year.

Secondary residences: those residences (dwellings) where the owner spends at least
some days per year.

Short-term rental: the rental of an accommodation (room or entire property) on a short-
term basis. “Short-term” can be defined by local laws as the maximum period per year
during which an accommodation provider can rent out their property or part thereof
under specific circumstances.

Long-term rental: the rental of an accommodation (room or entire property) on a long-
term basis. “Long-term” can be defined as a period exceeding any short-term threshold
imposed by local, regional or national laws (see definition of “short-term rental”).

Vacant property: A residence (dwelling) that is not occupied by their owners or any tenants.

Peer provider: For the purpose of this study, the term is used to designate all providers
of short-term rentals on collaborative platforms. In certain cases, where data are
available, the text makes a distinction between “peer” and “professional” provider. In
this case, “peer provider” refers to individuals who do not conduct such activities on a
professional basis, i.e. earning the majority of their income through to short-term
rentals.

Conventional dwelling: The term is defined according to its definition on EUROSTAT,
namely a room or a suite of rooms and its accessories in a permanent building or
structurally separated part thereof which by the way it has been built, rebuilt or
converted; it is designed for habitation by one private household all the year round and
is not at the time of the census used wholly for non-residential purposes.

Vacant conventional dwelling: According to EUROSTAT, vacant conventional dwellings
are conventional dwellings (see above) which have no usual residents at the time of the
census but are available to become the principal usual residence of at least one person.
Vacant dwellings could be either: seasonally vacant, holiday homes, seasonal workers'
quarters, non-seasonally vacant, secondary residences, for rent, for sale, for demolition,
or for other purposes.

                                                                                               4
Task 4 – Annex 5 - Market Case study – Brussels

1 Overview of the accommodation sector
 Facts and figures – Brussels

 The capital city of Brussels is the most populous city in Belgium. With 1,187,890
 inhabitants in 2016, Brussels accounts for 8.5% of the total population. The city of
 Brussels is one of three Belgian regions, under the name Brussels-Capital region.1 The
 region is composed of 19 communes. This case study refers to Brussels as the region
 of Brussels-Capital.

 In terms of GDP per capita, in 2015 Brussels-Capital was the third richest region in
 Europe.2 It hosts the headquarters of the main EU Institutions, and it is also the
 administrative centre of Belgium. Belgium is a federal country, and each region has
 its own government and parliament. The region of Brussels-Capital is composed of:

          The Government of the Brussels-Capital Region, made of a Minister-
           President and four ministers (two French-speaking and two Flemish-speaking).

          The Parliament of the Brussels-Capital Region, which exercise the
           legislative powers and it consists of 89 deputies.

 The region of Brussels-Capital has legislative powers in the areas such as economy,
 employment, agriculture, water policy, housing, public works, energy, transport, the
 environment, town and country planning or nature conservation.

 The 19 communes of the Brussels-Capital region are each composed of a council, a
 communal executive and a mayor. The range of competencies of the commune is very
 broad covering issues related to housing, to education and other aspects.

 The map on the following page shows the area of the Brussels-Capital region, which
 includes its 19 communes.

1 The two others are Flanders and Wallonia.
2 Eurostat (2017). Pib par habitant en 2015 dans 276 régions de l’UE ; Available at :
http://ec.europa.eu/eurostat/documents/2995521/7962774/1-30032017-AP-FR.pdf/08aa67a6-e0df-4f2a-ae98-5ee6c921b404.
Retrieved on: 31/05/17.
                                                                                                                    5
Task 4 – Annex 5 - Market Case study – Brussels

Figure 1: Map of Brussels

1.1 Main players in the collaborative economy accommodation sector

At the national level, Belgium does not have relevant authorities responsible for
supervising housing plans and urban policy. These powers lie with the regional level.

At the regional level, the Brussels Region Government oversees the overall
administration of the region. As such, it takes and implements measures (e.g. tourist
accommodation ordinance) regulating the housing/hospitality sectors. Both, the
Economy and Employment, and the Urban Development directorates deal with short-
term accommodations.3 Furthermore, the Economic and Social Council of the Brussels-
Capital Region is a consultative body involved in socio-economic matters impacting the
life of Brussels citizens including short-term rental.4

At local level, the 19 communes had, until February 2017, the responsibility to collect
taxes arising from short-term rental, from both, collaborative short-term rental
platforms (e.g. AirBnB) and hotels.5 Since February, this competence has been assigned
to the Brussels-Capital region.

The main collaborative short-term rental platforms available in Brussels-Capital
(and elsewhere in Europe) include: AirBnB, Wimdu, 9flats, HomeAway, HomeExchange,
GuestToGuest and LoveHomeSwap. Other collaborative short-term rental platforms that
are specific to Brussels (but are not limited to the accommodation sector specifically)
include 2dehands.be, BedYCasa and Brukot.

AirBnB, the main global collaborative short-term rental platform, is active in Brussels-
Capital, but the Belgian capital is not included in the 25 AirBnB largest cities in the

3 Brussels region website, 2017. Available at: http://be.brussels/about-the-region/ministry-of-the-brussels-capital-region/economie-
emploi. Accessed on 04/05/17.
4 The economic and social council of the Brussels-Capital Region website, available at: http://www.ces.irisnet.be/fr. Accessed on
04/05/17.
5 Rtbf (2017). Les lodgements AirBnB taxes à Bruxelles. Available at: https://www.rtbf.be/info/regions/detail_les-logements-AirBnB-
taxes-a-bruxelles?id=9518516. Retrieved on: 31/05/17.
                                                                                                                                       6
Task 4 – Annex 5 - Market Case study – Brussels

world.6 According to AirBnB, the platform has 7,000 listings in Brussels, while Inside
AirBnB reported over 4,400 listings in April.7 AirBnB also claimed to have hosted
230,000 tourists in Brussels in 2016.8

Other collaborative short-term rental platforms active in Brussels have less listings.
Wimdu, the largest European collaborative short-term rental platform, has 214 listings
in Brussels9. 9flats, another German platform, displays 139 listings.10 HomeAway, a
US-based platform features 619 listings in the region.11 HomeExchange, a US-based
home swapping platform acquired in March 2017 by French platform GuestToGuest, lists
28 properties in the region.12 GuestToGuest itself, another home swapping platform,
features 1,100 properties in Brussels-Capital. LoveHomeSwap, another US-based
home swapping platform, is also active in Belgium, but does not disaggregate results
by city. In addition, hotel booking websites such as Booking.com or TripAdvisor also
include peer-to-peer listings. For instance, TripAdvisor owns the collaborative short-
term rental platforms HouseTrip and FlipKey.

In addition to the large EU and international collaborative short-term rental platforms,
there are other, more local platforms offering short-term rental listings in Brussels.
BedYCasa, a French collaborative short-term rental platform, has 44 listings in the
region.13 2dehands.be (“2ememain.be”) is a Belgian online market place offering a
wide variety of goods/service/items to rent or buy. It records 603 rental listings14 in
Brussels, but the platform does not distinguish between short- and long-term rentals.
Finally, Brukot is a Brussels-focused platform on which people can rent their place, also
on short-term basis.15

Lastly, hotel booking websites, such as Booking.com and Tripadvisor, also offer peer-
to-peer short-term rentals. For instance, Booking.com offers 334 listings, all of which
are entire properties.16 Tripadvisor offers 552 holiday rentals,17 but its platforms like
HouseTrip and FlipKey list up to 911 entire properties18.

Hospitality/housing industry associations also take part in the debate regarding
peer-to-peer short-term rentals. The Brussels Hotel Association lobbies for the
hospitality industry at the city level.19

It is important to note that peer providers can simultaneously use more than one
collaborative short-term rental platform to advertise their listing. This leads to a likely
double counting of listings on such websites. Due to lack of data available on the number
of double listings, the information presented in this case study regarding the total
number of listings on collaborative short-term rental platforms (see sub-section 2.2)
should be taken as an approximation.

6 Note that in comparison, Brussels is also smaller than the other cities mentioned. See: Airdna website, available at:
http://blog.airdna.co/biggest_AirBnB_cities_in_the_world/. Accessed on 04/05/17
7 Inside AirBnB Brussels, 2017. Available at: https://brussels.AirBnBcitizen.com/fr/. Accessed on 04/05/17.
8 AirBnBcitizen, Bruxelles, 2017. Available at: https://brussels.AirBnBcitizen.com/fr/. Accessed on 04/05/17.
9 Snapshot of Wimdu website, 2017. Available at: http://www.wimdu.com/search?search_geolocation=2071-brussels. Accessed on
04/05/17.
10 Snapshot of 9flats website, 2017. Available at: http://www.9flats.com. Accessed on 04/05/17.
11 Snapshot of HomeAway website, 2017. Available at: https://www.homeaway.co.uk/. Accessed on 04/05/17.
12 Snapshot of HomeExchange website, 2017. Available at: https://www.homeexchange.com/. Accessed on 04/05/17.
13 Snapshot of Bedycasa website, 2017. Available at : https://www.bedycasa.com/. Accessed on 04/05/17.
14Snapshot of 2dehand.be website. Available at: https://www.2ememain.be/. Accessed on 04/05/17.
15 Brukot website available at: https://www.brukot.be/search. Accessed on 04/05/17.
16 Snapshot of https://www.booking.com/ as of 10/08/2017.
17 Snapshot of https://www.tripadvisor.co.uk/ as of 10/08/2017.
18 Snapshot of https://www.flipkey.com/ and https://www.housetrip.com/ as of 09/08/2017.
19Brussels Hotels Association, 2015. Available at:
http://brusselshotelsassociation.com/uploads/files/pressreleases/55a8c1b4501e1.pdf. Accessed on 04/05/17.
                                                                                                                             7
Task 4 – Annex 5 - Market Case study – Brussels

1.2 Overview of economic development of the                                                 collaborative economy
    accommodation market

The hospitality sector is very important for the Belgian economy: according to the
Belgian Statistics Office20, the hospitality industry (including food service activities)
generated EUR 14,296,885 turnover in 2014. Short-term rentals accounted for EUR
368,392. In terms of enterprises operating in the sector, the hospitality industry is
the fourth-largest employer in the country.

According to the Brussels Tourism Observatory, in 2015, there were 37,849
accommodation listings in the region but there was no distinction made between
short or long-term rentals.21

According to InsideAirBnB, in May 2017, there were 4,903 available listings on AirBnB22,
while AirDNA, a similar information service, counted 4,489.

Statista, based on AirDNA data, tracked the evolution in the number of available listings
on AirBnB in Brussels between 2010 and 2017. Figure 2 displays this trend, which
emphasises an exponential growth rate of AirBnB listings between 2010 and 2017.

Figure 2: Number of AirBnB accommodations in Brussels between 2010 and
2017

Source: Statista (2017) 23, adapted from AirDNA

The growth rate in AirBnB listings is also visible, in a more granular form, in monthly
AirDNA statistics for Brussels between July 2015 and April 2017. As displayed in the
figure below, the supply of AirBnB listings fluctuates according to the season. Overall,
the supply increased over the period studied.

20 Belgium Statistics Office website. Structural business statistics, available at:
https://bestat.economie.fgov.be/bestat/crosstable.xhtml?datasource=b9eca8ea-cdbe-4b07-b8ee-6928c406d146. Accessed on
04/05/17. No definition on short/long-term rental was available at the time of writing.
21 Brussels tourism observatory, 2015. Annual report of the Brussels tourism observatory, available at:
https://visit.brussels/binaries/content/assets/pdf/annual_report_2015_en.pdf. Accessed on 04/05/17.
22 Inside AirBnB Brussels, 2017. The figures are the same than the ones retrieved from the Brussels tourism observatory report of
2015. Available at: http://insideAirBnB.com. Accessed on 04/05/17.
23 Statista, 2017. Nulber of Active AirBnB accommodations in Brussels from 2010 to 2017. Available at:
https://www.statista.com/statistics/692600/active-AirBnB-accommodations-in-brussels-in-belgium/. Accessed on 04/05/17.
                                                                                                                                    8
Task 4 – Annex 5 - Market Case study – Brussels

Figure 3: Total available listings on AirBnB in Brussels region, by type,
between July 2015 and April 2017

  7.000

  6.000

  5.000

  4.000

  3.000

  2.000

  1.000

             0

                                                                                                                                         juil-16
                    juil-15
                              août-15

                                                                                                                      mai-16
                                                           nov-15

                                                                                                            avr-16

                                                                                                                                                    août-16

                                                                                                                                                                                 nov-16

                                                                                                                                                                                                                                 avr-17
                                        sept-15

                                                                                                                               juin-16

                                                                                                                                                              sept-16
                                                                                       févr-16

                                                                                                                                                                                                             févr-17
                                                  oct-15

                                                                             janv-16
                                                                    déc-15

                                                                                                 mars-16

                                                                                                                                                                        oct-16

                                                                                                                                                                                                   janv-17
                                                                                                                                                                                          déc-16

                                                                                                                                                                                                                       mars-17
                                                                       Entire Place                        Private Room                            Shared Room

Source: AirDNA

Statista, estimated the size and potential development of the “vacation rentals” 24 sector
in Belgium. As Figure 4 shows, the sector is expected to grow up to about EUR 80 million
(+281%) between 2015 and 2021, but a slower pace – decreasing from 44% (2015-
2016) to 12% (2020-2021).

Figure 4: Overview of the current and estimated revenue and its growth trend
in the “vacation rentals” sector in Belgium, 2015-202125

                  100                                                                                                                                                                                                    50%

                                                                                                                                                                                                                                     Percentage growth
                  80                                                                                                                                                                                                     40%
    EUR million

                  60                                                                                                                                                                                                     30%

                  40                                                                                                                                                                                                     20%

                  20                                                                                                                                                                                                     10%

                   0                                                                                                                                                                                                     0%
                                  2015                      2016                       2017                          2018                    2019                        2020                      2021

                                                                                       Vacation Rentals                                     Growth rate

Source: Statista

1.3 Overview of applicable local rules and regulatory developments

This sub-section provides a brief overview of the regulatory framework applied to
collaborative short-term rental platforms and to peer-to-peer rentals in Brussels. More
detailed information regarding this framework is available in Task 1 reports. Note that,
while the Task 1 report assesses all relevant regulation passed up to January 2017, this
case study expands the timeline to June 2017. Because of the different timelines, some
small differences in the regulatory information presented may exist.

24 The “Vacation Rentals” segment comprises of private accommodation that was arranged and booked online. This includes private
     holiday homes and houses e.g. HomeAway, as well as short-term rental of private rooms or flats via portals such as Airbnb.
25 The figures were retrieved in USD and converted to EUR at European Central Bank rates for 2015 and 2016. As the latest USD-EUR
     exchange rate provided by the bank is for 2016, the same rate was used for converting figures for years 2017-2021.
                                                                                                                                                                                                                                                         9
Task 4 – Annex 5 - Market Case study – Brussels

In Brussels-Capital region, the accommodation market for short-term rental is mainly
regulated by two instruments:
    the Ordinance related to touristic accommodation, or the Ordinance,
       adopted in 201426. It establishes general conditions on the hosts that offer
       touristic accommodation.
    The Ordinance’s implementation decree of 24 March 2016, or the
       Implementation Decree27 adds specific requirements for hosts, based on the
       general conditions stipulated in the 2014 ordinance. For instance, hosts who want
       to rent their housing through online platforms are obliged to be registered to the
       Brussels administration.
    The Brussels Housing Code28, which addresses, among others, aspects related
       to housing quality.

The regulatory framework forces providers who list their properties in the Brussels-
Capital region to adhere to certain rules. Specific requirements apply, depending on the
type of accommodation. For instance, among the obligations for a homestay
accommodation, the host must welcome the tourists at their arrival, must be available
during the stay, there must be at least one window in the bedroom. The main and most
direct impact of those regulations is the obligation for the host to have their tourist
accommodation registered with the local administration.29 Hosts must send a form
with mandatory documents30 to the Brussels Economy and Employment service. This
process awards hosts a registration number and a logo identifying the category of the
housing they can then rent out as tourist accommodation.

Finally, Belgian hosts must declare their income earned through home-sharing
platforms. The platform itself is subject to VAT and since February 2017 must withhold
a tourist tax of EUR 3 per night which is paid to the Brussels-Capital Region.31

1.4 Summary of indicators

Table 1 presents an overview of indicators collected throughout the case study. Further
information is provided in the following sections.

Table 1: Summary of indicators
 No.      Indicators                                      Categories                                   Value
                                                          One bedroom                                  EUR 626
          Average market rental
                                                          Two bedrooms                                 EUR 731
          prices for long-term rentals
                                                          Three bedrooms                               EUR 900
          (2016, monthly)32
                                                          All categories                               EUR 709
  A1
                                                          AirBnB single room                           N/A
                                                          AirBnB shared room                           N/A
                                                          AirBnB entire
                                                                                                       EUR 2,436
                                                          home/apartment

26 Ordonnance relative à l’hébergement touristique 8 mai 2014. Available at:
http://www.ejustice.just.fgov.be/cgi_loi/change_lg.pl?language=fr&la=F&cn=2014050850&table_name=loi. Accessed on 05/05/17.
27 Arrêté du gouvernement de la région de Bruxelles-Capitale portant exécution de l’ordonnance du 8 mai 2014 relative à l’hébergement
touristique. Available at: http://www.ejustice.just.fgov.be/cgi_loi/change_lg.pl?language=fr&la=F&cn=2016032416&table_name=loi.
Accessed on 05/05/17.
28 Impulse paper prepared for the European Commission, DG Grow, 2016. Ranchordas Sofia, Gedeon Zsuzsanna, Zurek Karolina.
“Home-sharing in the Digital economy”.
29 Impulse paper prepared for the European Commission, DG Grow, 2016. Ranchordas Sofia, Gedeon Zsuzsanna, Zurek Karolina.
“Home-sharing in the Digital economy”.
30 The documents required are: a proof of the identity, a civil liability insurance document, a copy of the property document or consent
from the owner, a fire safety certificate, a certificate of compliance with land management and urban planning legal provisions. See:
Brussels economy and employment regional service webpage available at: http://werk-economie-emploi.brussels/en_US/declaration-
hebergement-touristique.
31 Before, the different « commnunes » of Brussels were in charge of this tax, hence a lack of harmonisation.
32 Average rental price for renting an entire property for long-term (more than 90 days) in the urban area considered. The value
      corresponds to the monthly average rent paid in the last reference year considered in this study.
                                                                                                                                           10
Task 4 – Annex 5 - Market Case study – Brussels

 No.       Indicators                      Categories                                                    Value
           Average market rental           AirBnB all listing
                                                                                                         N/A
           prices for short-term           categories
           rentals (2016, monthly)33       Hotel room                                                    EUR 3,284
                                      Rooms                                                              1,452
           Rooms or residences
                                      Entire primary and secondary
  A2       available for short-term
                                      residences or touristic                                            2,978
           rental 34
                                      houses35
  A3       Number of available residences (housing stock) 36                                             558,345
           Number of available properties for long-term rental
  A4                                                                                                     N/A
           (vacant dwellings)37
           Number of available properties offered through
  A5                                                                                                     6,633
           collaborative short-term rental platforms
                                           For short-term rentals
                                                                                                         51%
                                           (AirBnB)
                                           For hotel rooms                                               60.9%
           Short-term occupancy
  A6                                       Number of nights peer
           rate38
                                           providers rent out their
                                                                                                         N/A
                                           property (AirBnB -
                                           median)
                                           For short-term rentals
                                                                                                         3.2
                                           (AirBnB)
  A7       Average length of stay39
                                           For hotels or conventional
                                                                                                         1.93
                                           accommodation providers
                                           AirBnB providers (AirBnB,
                                                                                                         EUR 2,300/year
                                           median)
           Income gained through
                                           AirBnB providers
  A8       short-term rental                                                                             EUR 4,944/year
                                           (InsideAirBnB, average)
           activities 40
                                           Hotels or conventional
                                                                                                         N/A
                                           accommodation providers
           Percentage of total provider revenues accounted for by
  A9                                                                                                     N/A
           short-term rental activities (AirBnB)41
                                           Total number of tourists
  B1                                                                                                     176,500
                                           on AirBnB (2014-2016)42

33 Average rental price for renting a room or entire property on AirBnB or an average hotel on a short-term basis (less than 90 days)
     in the urban area considered. The value corresponds to the average daily rate on AirBnB or an average hotel multiplied by 30.4167
     (in order to represent both months with 30/31 days). Note that the value does not consider potential discounts offered for renting
     a place for more than a day, even though such discounts are common on collaborative short-term rental platforms and in some
     hotels. The rooms considered in this indicator can accommodate up to two guests.
34 The sum of all listings, divided by rooms and entire places, found on the EU-level and local collaborative short-term rental platforms
     considered in this case study. Note that the values do not take into account the possibility of double listings, i.e. the same room
     or property being listed on multiple collaborative short-term rental platforms. The value, however, excludes listings in hotels, but
     it may include rooms in hostels or other type of touristic houses (e.g. B&Bs) that operate as businesses.
35 The information presented on collaborative short-term rental platforms does not allow us to distinguish between primary and
     secondary residences, or between residences (dwellings) and touristic houses. Where available, such distinctions for one or several
     collaborative short-term rental platforms are indicated in the text, while the indicator value corresponds to the sum of all entire
     listings available on the EU-level and local collaborative short-term rental platforms considered.
36 The total number of registered residences (dwellings) available in the urban area under study in the latest reference year considered.
     The number excludes all dwellings serving purposes other than residential ones.
37 The number of vacant residences (dwellings) out of the total number of registered residences (dwellings) in the urban area under
     study in the latest reference year considered.
38 The occupancy rate refers to the percentage of nights a given property is rented out, out of the total number of nights that property
     is available. Note that, depending on local laws, properties listed on collaborative short-term rental platforms may be subject to
     a maximum limit of calendar days of availability. This aspect is considered in the indicator: the ratio refers to the actual occupancy
     rate (i.e. considering the number of days the listing is available), rather than a theoretical occupancy rate, which assumes
     availability up to the maximum limit permitted, or up to the maximum number of calendar days per year.
39 The value refers to the average monthly length of rental for a property, either on collaborative short-term rental platforms using
     AirBnB as a proxy, or in conventional accommodation providers such as hotels.
40 The value refers to the yearly median or average income gained from the rental of an average listing on collaborative short-term
     rental platforms using AirBnB as a proxy, or for an average room rented via a conventional accommodation provider. Note that
     for collaborative short-term platforms, various sources are indicated, so as to provide a more impartial value for this indicator.
41 The value refers to the percentage of annual income of the peer provider accounted for by revenues deriving from their collaborative
     short-term rental platform activities. Due to data availability, the indicator uses AirBnB statistics as a proxy for all collaborative
     short-term rental platforms in the urban area under study.
42 The value refers to the yearly number of individuals that used collaborative short-term rental platforms for accommodation, taking
     AirBnB as a proxy for the industry. Note that this is not the same as the total number of nights spent in AirBnB listings, since
                                                                                                                                              11
Task 4 – Annex 5 - Market Case study – Brussels

 No.      Indicators                                      Categories                                   Value
          Number of tourists using                        Total number of nights
          collaborative short-term                        spent in AirBnB locations                    N/A
          rental platforms                                (2016)43
          Share of collaborative                          Nights spent (2016)44                        N/A
          economy users out of
  B2                                                      Number of tourists
          tourists using conventional                                                                  5%
          accommodation services                          (2016)45

     tourists may rent out properties as a group, rather than as individuals. The value also ignores the number of nights stayed per
     guest, which is considered in the indicator “Total number of nights spent in AirBnB locations”.
43 The value refers to the total number of nights during which listings on the collaborative short-term rental platform AirBnB were
     rented during the latest year considered in this study. The value is computed using the following formula: [(total number of
     tourists using AirBnB listings as accommodation in the given year) x (average length of stay in an AirBnB listing)] / (average size
     of the group renting an AirBnB property).
44 The value refers to the ratio between the number of nights spent in AirBnB listings, taking AirBnB as a proxy for all collaborative
     short-term rental platforms activity, and the number of nights spent in conventional accommodation providers.
45 The value refers to the ratio between the number of tourists using AirBnB listings for their accommodation, taking AirBnB as a proxy
     for all collaborative short-term rental platforms activity, and the number of tourists using conventional accommodation providers.
                                                                                                                                           12
Task 4 – Annex 5 - Market Case study – Brussels

2          Real estate and housing availability
This section gives an overview of the real estate market and housing availability in
Brussels, notably rental prices, number of available properties and occupancy rates.

Due to lack of data on other collaborative short-term rental platforms and given the
comparative size of AirBnB’s offer (almost 4,500, according to AirDNA, compared to
1,100 on GuestToGuest or 653 on HomeAway, its closest competitors), AirBnB is used
as a proxy for the collaborative economy market when no other data are available.

2.1        Overview of average rental market prices

Brussels-Capital has the most expensive real estate market among the three Belgian
regions.46 According to the Rent Observatory for Brussels-Capital, in 2015, the average
rental market price for long-term rentals47 was EUR 709.48 The median rent was EUR
650, with a quarter of rents below EUR 535 per month and a quarter above EUR 800
per month. The average rental market price for long-term rentals increased by 11%
between 2010 and 2015. According to the Rent Observatory, the increase could be due
to a more active real estate market, and to an increase in property prices.49

See Figure 5, for an overview of the long-term rent of one bed-room apartments in
Brussels inside the city centre and outside of the city centre and Table 2 for the average
monthly rents for long-term rentals in 2016.
Figure 5: Long-term rent of one-bedroom apartments in Brussels (in EUR)

                                 900
                                 800
                                 700
            Rent prices in EUR

                                 600
                                 500
                                 400
                                 300
                                 200
                                 100
                                  0
                                       2012      2013              2014         2015            2016             2017

                                              In the city centre      Outside of the city centre

Source: https://www.numbeo.com/cost-of-living/

While the rental price, on average, was EUR 709 in 2015, rents depend on various
factors, such as location, amenities, surface and number of rooms. A dwelling smaller
than 28 m² was, on average, EUR 432 in 2015, while one larger than 104 m² was EUR

46 In comparison, in 2016 a house in Flanders costed EUR 224.566, EUR 153.595 in Wallonia and EUR 406.943 in Brussels. Note that
the Region of Brussels-Capital is only composed of the 19 Brussels municipalities (“Communes”). See the Statistics Belgium website,
Real estate market, 2016. Available at:
http://statbel.fgov.be/fr/binaries/COMMUNIQU%C3%89%20DE%20PRESSE%20prix%20immo%202016_S1_tcm326-279884.pdf
.Accessed on 10/05/17.
47 In this study, long-term rentals are understood to be rooms or entire properties rented out over a period exceeding any short-term
      threshold imposed by local laws (see definition of “short-term rental”). See sub-section 1.3 for a description of such thresholds.
      Where there is no such threshold, it is assumed to be a period longer than 120 days per year.
48 Observatory for the rent, Brussels-Capital region, 2015. Observatoire des loyers, enquête 2015. Available at:
http://www.slrb.irisnet.be/publications/observatoire-regional-du-logement/observatoire-des-loyers-2015/view Accessed on 10/05/17.
49 Ibid.
                                                                                                                                           13
Task 4 – Annex 5 - Market Case study – Brussels

1,032. Location-wise, the district of Etterbeek is the most expensive, at EUR 12.9/m2,
while Berchem-Sainte-Agathe is the cheapest one with a rent of EUR 9 m2.50
Table 2: Average monthly rents for long-term rentals in 2016
 Categories                                                         Average (EUR)
 One bedroom                                                        626
 Two bedrooms                                                       731
 Three bedrooms                                                     900

Source: Societe du lodgement de la region de Bruxelles-Capitale (2015). Observatoire des Loyers - Enquete
2015. Available at: http://www.slrb.irisnet.be/publications/observatoire-regional-du-logement/observatoire-
des-loyers-2015/view

To illustrate the average market price for short-term rentals, the AirBnB average
nightly rate is used as a proxy. Based on data from AirDNA, average monthly rent prices
on AirBnB were about 3.7 times higher than long-term rentals in 2015. Nevertheless, it
appears that average market prices for short-term rentals have slightly decreased
between July 2015 and April 2017.

This study uses the price of AirBnB entire place average as a comparable alternative to
hotel room (double-bed standard room). This alternative is considered comparable
because it offers the same level of privacy (e.g. own key, own entrance and private
bathroom facilities). Hotel rooms, in this study, are not compared with AirBnB listed
rooms because the level of privacy is lower on AirBnB. AirBnB listings are generally
cheaper than hotels - the average entire property on AirBnB in 2015 costed EUR 80/day,
while the average price for a hotel room was EUR 107.7/day. 51
Table 3: Average daily and monthly rates for AirBnB listings and hotel rooms
in 201652
 Categories                                                         Average daily                 Average monthly
                                                                    (EUR)                         (EUR)
 AirBnB all listing categories                                      N/A                           N/A
 AirBnB entire home/apartment                                       80                            2,436
 AirBnB single room                                                 N/A                           N/A
 AirBnB shared room                                                 N/A                           N/A
 Hotel room                                                         108                           3,284
Source: AirDNA data for AirBnB listings in 2016, calculated as an average of all monthly daily rates

Table 4 summarises the figures presented in this section and shows an overview of the
average rental market prices for long- and short-term rentals in Brussels. As described
above, short-term rentals cost 3.7 times more than long-term rentals, while hotel rooms
were even higher, at 4.6 times.
Table 4: Summary overview of average monthly rental market prices for long-
and short-term rentals in 2015
 No.                Indicators                                Categories                             Value (EUR)
                                                              One bedroom                            626
                    Average market rental                     Two bedrooms                           731
 A1
                    prices for long-term                      Three bedrooms                         900
                                                              All categories                         709

50 The data are retrieved from the website Rentswatch which compares the average price for rental contracts within the last 6
months rent of several European cities. SSo far 21,507 flats prices were analysed. See:
http://www.rentswatch.com/#!/city/brussels. Accessed on 29/05/17.
51Visit Brussels, 2015.Observatory of the hotels. Available at:
https://visit.brussels/binaries/content/assets/pdf/baro_hotels_2015_12.pdf
52 Average rental price for renting a room or entire property on AirBnB or an average hotel on a short-term basis (less than 90 days)
in the urban area considered. The value corresponds to the average daily rate on AirBnB or an average hotel multiplied by 30.45 (in
order to represent both months with 30/31 days). Note that the value does not consider potential discounts offered for renting a place
for more than a day, even though such discounts are common on collaborative short-term rental platforms and in some hotels. The
rooms considered in this indicator can accommodate up to two guests.
                                                                                                                                         14
Task 4 – Annex 5 - Market Case study – Brussels

 No.                Indicators                               Categories                             Value (EUR)
                    rentals (2016,
                    monthly)53
                                                             AirBnB single room                     N/A
                                                             AirBnB shared room                     N/A
                    Average market rental
                                                             AirBnB entire
                    prices for short-term                                                           2,436
                                                             home/apartment
                    rentals (2016,
                                                             AirBnB all listing
                    monthly)54                                                                      N/A
                                                             categories
                                                             Hotel room                             3,284

2.2 Overview of number of vacant properties

As an indication for the current housing stock, please see the figure below, where the
number of registered residences in Brussels is given for the years 2012-2015 from
EUROSTAT.

Figure 6: Number of registered residences (housing stock) in Brussels

             600.000

             400.000

             200.000

                     0
                                  2012                   2013                   2014                   2015

Source: Eurostat (urb_clivcon, urb_cpop1)

As of June 2017, there are 6,633 available properties for short-term rental in
Brussels, including the listings from the following collaborative short-term rental
platforms (as mentioned in section 1). Note that, as explained in sub-section 1.1, the
overall figure does not make any provision for potential double listings, i.e. properties
listed on more than one platform, and therefore double counted:
      AirBnB: 4,489 available listings, among which:
                 - 1,452 private rooms (32.3% of all listings),
                 - 2,978 entire homes/flats (66.3% of all listings); and
                 - 59 shared rooms (1.3% of all listings)55.
      Wimdu: 214 available listings, among which 29 private rooms, 182 flats and 3
        houses56.
      9flats: 139 available listings, among which 5 studios, 127 flats, 4 houses and 3
        B&B-type accommodations57.
      Homeaway: 619 available listings, among which 67 studios and 552 flats58.
      Home exchange: 28 listings, among which 12 flats, 12 houses, 1 villa and 3
        lofts59.

53 Average rental price for renting an entire property for long-term (more than 90 days) in the urban area considered. The value
     corresponds to the monthly average rent paid in the last reference year considered in this study.
54 Average rental price for renting a room or entire property on AirBnB or an average hotel on a short-term basis (less than 90 days)
     in the urban area considered. The value corresponds to the average daily rate on AirBnB or an average hotel multiplied by 30.
     Note that the value does not consider potential discounts offered for renting a place for more than a day, even though such
     discounts are common on collaborative short-term rental platforms and in some hotels. The rooms considered in this indicator
     can accommodate up to two guests.
55 According to data retrieved from AirDNA on 09/06/2017. Available at: https://www.airdna.co/city/be/brussels
56Listings available the 29/05/17 on the Wimdu website. Available at: http://www.wimdu.com/. Accessed on 29/05/17.
579flats website available at: https://www.9flats.com. Accessed on 29/05/17.
58HomeAway website, availabe at: https://www.homeaway.co.uk/. Accessed on 09/06/17
59Homeexchange website available at: https://www.trocmaison.com/fr/. Accessed on 29/05/17.
                                                                                                                                        15
Task 4 – Annex 5 - Market Case study – Brussels

        GuestToGuest: 1,100 available listings60.
        Bedycasa: 44 available listings, among which 25 rooms and 19 flats61.

This study does not make a distinction between primary and secondary residences, and
between residences and holiday homes. This is because there is no indication on the
collaborative short-term rental platforms of the type of residence the listing is. Even
though platforms may indicate whether the listing is an apartment, house or other (e.g.
castle, boat, bungalow, etc), it is not clear whether they are the owner’s primary or
secondary residences. The same is true for rooms, which could be in a primary or
secondary residence.

The sum of short-term rental properties in Brussels should be taken as an
approximation. First, it is difficult to list all collaborative short-term rental platforms due
to the size of the accommodation offer. Second, attention must be paid to the duplication
of listings, as hosts may advertise the same room or property across multiple platforms.
Unfortunately, no adequate proxy as to the percentage of duplicate listings could be
found for Brussels.

AirBnB, in its review spanning from September 2014 through August 2015, found that
85% of hosts have a single listing62, which suggests that the short-term rental activity
is an occasional one. InsideAirBnB puts the same figure, in June 2017, at 64% 63.

One interviewee from the Economics and Employment department of the Brussels-
Capital Region indicated that several firms in the city help hosts advertise their
properties on several collaborative short-term rental platforms at once.64

In line with the Ordinance related to tourist accommodations, the touristic
accommodation need to be registered before the activity starts. To date, according to
our interviewees, around 2,000 forms have been submitted.65

The number of available properties offered through collaborative short-term
rental platforms is, therefore, 6,633. This is the sum of all rooms and properties
offered through the collaborative short-term rental platforms considered in this study.
The figure generally excludes accommodation provided via traditional means, such as
hotels, hostels or bed and breakfasts. However, in certain circumstances, hostel and
bed and breakfasts managers list their properties on collaborative short-term platforms
(e.g. AirBnB), and it is difficult to immediately distinguish between peers and
professionals. While the figure for the number of available properties offered through
collaborative short-term rental platforms tries to exclude professionals (e.g. by avoiding
hotels/hostels from the counting on websites such as Booking.com, or by only
considering “holiday rentals”, rather than “hotels” on TripAdvisor), it may nevertheless
include some.

There is no data concerning the number of available properties for long- and short-
term rental in Brussels-Capital region, understood as the number of vacant dwellings.
According to the Brussels Statistics Office, in January 2016, there were 162,645
residential dwellings in the region.66 Another report from the national statistics office
from 2001 (latest available) indicated that 41% of residents in the Brussels-Capital
region owned their own house, thus leaving a substantial percentage of residential

60 Information retrieved from GuestToGuest during a phone interview on 24/04/2017.
61 Bedycasa website available at : https://fr.bedycasa.com/ . Accessed on 29/05/17
62 AirBnB, 2015. Overview of the AirBnB Community in Belgium available at: https://www.AirBnBaction.com/wp-
content/uploads/2015/11/Belgium-V3.pdf. Accessed on 29/05/17.
63 Inside AirBnB, 2015, Brussels available at : http://insideAirBnB.com/brussels/#. Accessed on 12/06/17.
64 Interview with a representative of the Economics and Employment department of the Brussels-Capital Region conducted the
18/05/17.
65 The figures given by the two contacts we interviewed vary between 1,800 and 2,000.
66 Institut Bruxellois de Statistique et Analyse (2017). Aménagement du territoire et immobilier. Available at:
http://ibsa.brussels/themes/amenagement-du-territoire-et-immobilier#.WTrajMa1vIU
                                                                                                                             16
Task 4 – Annex 5 - Market Case study – Brussels

dwellings for the rental purposes.67 It is unclear, however, what percentage of such
dwellings is vacant. To counteract the data gap, an informal platform, sponsored by the
region, was launched where people can indicate the housing that seem to be
unoccupied. Even if the tool has an informal feature, at least 200 places were identified
as vacant at the time of drafting.68

Although the link between short-term accommodation offers and housing supply is
difficult to be clearly identified, stakeholders interviewed for this case study estimated69
that the principal negative impact of collaborative short-term rental platforms on the
housing market is the shortage of available dwellings for permanent residents.
Table 5: Summary overview of number of available properties -Brussels
 No.          Indicators                                                                            Number

 A2           Number of rooms in primary residences (Airbnb)                                        1,452

              Number of entire primary and secondary residences
 A2                                                                                                 2,978
              (Airbnb)

              Number of available properties for short-term rental
 A2                                                                                                 6,633
              (sum of platforms)

 A3           Number of available residences (housing stock)                                        558,345

              Number of available rooms/properties offered through
 A5                                                                                                 6,633
              online means (sum of platforms)

2.3 Overview of occupancy

Data regarding the short-term occupancy rate for collaborative short-term rental
platforms are only available for AirBnB, which is used as a proxy for the sector.
According to InsideAirBnB, the short-term occupancy rate of AirBnB listings in
Brussels was 22.9% in June 2017.70 AirDNA puts the same number, using a different
calculation technique, at 64.6% in April 2017.

The Brussels tourism observatory notes that the occupancy rate for hotels in Brussels
was 70.5% in April 2017.71 In an interview, local stakeholders highlighted the risk of
the occupancy rate, namely the fact that the property remains empty for a considerable
period, and therefore is off the market for residents.72 Based on AirDNA, Figure 7 below
shows the occupancy rates of AirBnB all listings and hotel rooms in Brussels.

67 The data are available on the website of the Brussels Institute for Statistics and Analysis at:
https://monitoringdesquartiers.brussels/indicators/analysis/part-des-logements-occupes-par-le-proprietaire/. Accessed on 29/5/17.
68 The map is the result of a collaborative work from citizen and sponsored by the Brussels-Capital Region. See the website of
logementsvides.be available at: http://www.logementsvides.be/index.html. Accessed on 29/05/17.
69 Interviews with a representative of the Economics and Employment department of the Brussels-Capital Region conducted the
18/05/17 and with a representative of the Brussels Tourist Office conducted the 10/05/17.
70 Inside AirBnB website available at: http://insideAirBnB.com/brussels/#. Accessed on 12/06/17.
71Visit          Brussels            (2017).             Hotel            Barometer              2017.       Available          at:
https://app.powerbi.com/view?r=eyJrIjoiZjgzZWQ4ZTgtZDRlZS00Nzc2LTgzY2YtMmY2MjliN2QwYWRhIiwidCI6IjQ2MDgzNGE2LTYyZTg
tNDNiYS1hOTQ0LTllMGI5ZjAzNGZmYyIsImMiOjh9. Retrieved on 12/06/2017.
72 Interview conducted with a representative from the Brussels Tourism Office the 10/05/17.
                                                                                                                                      17
Task 4 – Annex 5 - Market Case study – Brussels

Figure 7: Occupancy rate AirBnB all listings and hotel rooms73

            80,00%
            70,00%
            60,00%
            50,00%
            40,00%
            30,00%
            20,00%
            10,00%
             0,00%

                                                                                                                                                                                 nov-16
                       juil-15

                                                                                                                                          juil-16
                                 août-15
                                           sept-15

                                                              nov-15

                                                                                                              avr-16

                                                                                                                                                    août-16
                                                                                                                       mai-16
                                                                                                                                juin-16

                                                                                                                                                              sept-16

                                                                                                                                                                                                                                 avr-17
                                                                                janv-16

                                                                                                                                                                                                   janv-17
                                                     oct-15

                                                                       déc-15

                                                                                          févr-16
                                                                                                    mars-16

                                                                                                                                                                        oct-16

                                                                                                                                                                                                             févr-17
                                                                                                                                                                                                                       mars-17
                                                                                                                                                                                          déc-16
                                                                           Brussels AirBnB                                                Brussels Hotel

Source: AirDNA
On average, tourists who visited Brussels between September 2014 and August 2015
and used AirBnB stayed 3.2 days.74 In comparison, in 2014, even if the year of reference
is different, a tourist stayed on average 1.93 day regardless of the accommodations
type other than AirBnB.75 The data suggest that collaborative economy users tend to
stay longer than users of traditional accommodation services, as confirmed in London
by Quattrone et al (2016).76

Table 6 provides an overview of the findings presented in this sub-section.

Table 6: Summary overview of occupancy -Brussels
No.      Indicators                                                                                                                                                                                Value
         Short-term occupancy rate for rooms/properties
                                                                                                                                                                                                   51%
         advertised online (AirDNA)
         Short-term occupancy rate for rooms/properties
A6                                                                                                                                                                                                 22.9%
         advertised online (InsideAirBnB) (2017)
         Short-term occupancy rate for hotels                                                                                                                                                      60.9%

         Average length of short-term rentals (AirBnB)                                                                                                                                             3.2
A7
         Average length of stay of overnights visits in 2014                                                                                                                                       1.93

73 Booked Listing Nights divided by Available Listing Nights.
74 AirBnB, 2015. Overview of the AirBnB Community in Belgium available at: https://www.AirBnBaction.com/wp-
content/uploads/2015/11/Belgium-V3.pdf. Accessed on 29/05/17.
75 Visit Brussels, 2014. Annual report of the tourism observatory in Brussels. Available at:
https://visit.brussels/binaries/content/assets/pdf/rapport_2014.pdf. Accessed on 30/05/17
76 Quattrone, G., Proserpio, D., Quercia, D., Capra, L., Musolesi, M. (2016). Who Benefits From The ‘Sharing’ Economy of AirBnB.
International World Wide Web Conference. WW2016, April 11-15, 2016. Montreal, Quebec, Canada.
                                                                                                                                                                                                                                          18
Task 4 – Annex 5 - Market Case study – Brussels

3 Income and other tourism indicators
This section highlights the impacts of the collaborative economy accommodation market
on providers’ income and tourism in the city. In doing so, it aims to estimate the broader
economic potential of the sector.

3.1 Income indicators

The revenues that Brussels short-term accommodation providers earn from their
collaborative economy activity are often additional to their main source of income. This
section uses the income earned by typical AirBnB hosts as a proxy, given the limited
data availability on other collaborative short-term rental platforms.

AirBnB found that, from September 2014 to August 2015, its Brussels hosts welcomed
176,500 guests, and hosted 39 days on average. This inflow of AirBnB guests helped
the typical host earn EUR 2,300 a year, or EUR 191.6 per month (median). InsideAirBnB,
however, estimates that in 2016 an AirBnB host in Brussels earns, on average, EUR 412
per month, or EUR 4,944 per year77.

Revenues from collaborative rental activities typically account for a small part of hosts’
overall income levels. Nevertheless, in the case of AirBnB hosts in Brussels, according
to an AirBnB report, 44% of hosts use AirBnB income to make ends meet, while 44%
use it to cover regular household expenses. In addition, 67% of AirBnB hosts in Brussels,
according to the platform, report rent and mortgage as their largest monthly expense.78

Table 7 provides a brief overview of the income indicators identified in this section
concerning AirBnB hosts in Brussels.
Table 7: Summary overview of income indicators – Brussels
 No.          Indicators                                                                Value (EUR)
              Income gained through short-term rental
                                                                                        4,944/year
              activities (Inside AirBnB)
 A8
              Median income gained through short-term rental
                                                                                        2,300/year
              activities (AirBnB)

3.2 Tourism indicators

In 2015, the Brussels tourism sector suffered the negative consequences of that year’s
terrorist attack in Paris in November. VisitBrussels, the city’s Tourism Office, highlighted
that in terms of occupation, the 10 first months were better than in 2014. The Paris
terrorist attack that followed, as well as the Brussels lock-down lead to a drop in the
city’s November occupancy rate of 14.8 percentage points compared to the same period
in 2014.79

Brussels registered 3.54 million hotels arrivals in 2015 for 6.79 million overnight
stays. Not all neighbourhoods benefitted equally from the tourism inflows: the Airport
and city centre areas (Grand Place, Midi Gare station) were the suburbs with the highest
hotel occupancy rate.80

77 Data from May 2017. Inside AirBnB website available at: http://insideAirBnB.com/brussels/#.Accessed on 20/09/17
78 AirBnB, 2015. Overview of the AirBnB Community in Belgium available at: https://www.AirBnBaction.com/wp-
content/uploads/2015/11/Belgium-V3.pdf. Accessed on 29/05/17.
79 Visit Brussels (2015). Annual report of the Brussels tourism observatory 2015. Available at:
https://visit.brussels/binaries/content/assets/pdf/annual_report_2015_en.pdf. Retrieved on 30/05/17.
80 The hotel occupancy rates were respectively of 77%, 77%, 76% for this neighbourhood compare to an average of 72%. Ibid.
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Task 4 – Annex 5 - Market Case study – Brussels

In comparison to traditional touristic accommodation, 176,500 tourists used AirBnB
from September 2014 to August 2015. Therefore, circa 5% of tourists stayed in Brussels
using collaborative short-term rental platforms rather than traditional means.

The impact of the collaborative economy on the traditional hospitality industry is difficult
to single out. However, a representative from Visit Brussels estimated that the overall
impact of collaborative short-term rental platforms was weaker in Brussels than
in other cities. The presence of the European institutions partly explains this trend:
before AirBnB’s arrival, a market of short-term accommodations was already present in
Brussels due to the institutions meetings and other related events.81

The table below summarizes the tourism indicators for Brussels.

Table 8 Summary overview of tourism indicators – Brussels
 No.          Indicators                                                                    Number

              Total number of tourists using traditional
 B1                                                                                         3,540,000
              accommodation

              Total number of tourists using AirBnB between
 B1                                                                                         176,500
              September 2014 – August 2015

              Ratio of tourists using AirBnB accommodation to
 B2           tourists using traditional accommodation locations                            5%
              in 2015

81 Interview with a representative of the Brussels Tourist Office conducted the 10/05/17.
                                                                                                        20
Task 4 – Annex 5 - Market Case study – Brussels

4 Impact on local communities
This section describes positive and negative implications of the collaborative economy
accommodation offer on local communities in Brussels.

4.1 Development of ancillary services

The tourism inflows and Airbnb arrivals mentioned in section 3.2 represent a potential
important source of revenues and economic development for Brussels.

According to Eurostat, in 2014, there were 1.263 million of local units active (this term
relates to enterprises or part thereof82) in Belgium83. The same year, with 166.467 units,
the region of Brussels-Capital gathered 12% of the total local units. In the only
accommodation sector84, in 2014, there were 3,634 local units active in Belgium for 390
in the Brussels-Capital region itself85. This represents an increase of 14% compared to
201086.

There are no available studies or data about the direct impact of collaborative short-
term rental platforms on the development of local businesses in Brussels.
However, AirBnB, in its economic impact study on several cities estimates that tourists
using the platform will spend an average of 2.1 more money than other tourists while
42% of the expenditures per visitor stay in the same area in which they stay87.

It can be assumed that the phenomenon is similar in Brussels. For instance, the vice-
president of the Federation of Hotels, Restaurants and Coffees of Brussels stressed the
increase of income in local services due to the arrivals of tourists via AirBnB.88

Besides, the collaborative short-term rental platforms may also diversify the touristic
offer. As 70%89 of the AirBnB listings are located outside the centre of Brussels it can
help to develop outskirts areas. Our interview conducted with a member of the
Economics and Employment department of the Brussels-Capital Region tends to confirm
such a trend. It seems that according to some remote areas municipalities, the local
businesses have noticed a growth of customers90.

4.2 Housing supply changes

Based on data from Eurostat, the total number of nights spent in holiday or other short-
stay accommodation in Belgium (other than hotels, not including collaborative economy
platforms either), increased by 3.4% between 2015 and 2016, while it dropped by 9.9%

82 Eurostat defines local units as “an enterprise or part thereof (e.g. a workshop, factory, warehouse, office, mine or depot) situated
in a geographically identified place. At or from this place economic activity is carried out for which - save for certain exceptions - one
or more persons work (even if only part-time) for one and the same enterprise”. See Eurostat, structural business statistics, available
at: http://ec.europa.eu/eurostat/cache/metadata/en/sbs_esms.htm. Accessed on 14/06/17
83 Data extracted from Eurostat (2017), SBS regional data for all activities by NUTS 2 regions and NACE Rev2, available at:
http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=sbs_r_nuts06_r2&lang=en. Accessed on the 15/06/17. We selected the
broadest sector of activity available for Belgium and Brussels-Capital as well. The sectors of activity represented are: mining and
quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply, sewerage, waste management and
remediation activities; construction; wholesale and retail trade, repair of motor vehicles and motorcycles; transportation and storage;
accommodation; information and communication; real estate activities; professional, scientific and technical activities; administrative
and support service activities.
84 The Nace code l55 is used as a reference. The latter covers hotels and similar accommodation, holiday and short-stay
accommodation, camping grounds, recreational vehicle parks and trailer parks.
85Eurostat (2017), SBS regional data for all activities by NUTS 2 regions and NACE Rev2, available at:
http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=sbs_r_nuts06_r2&lang=en. Accessed on the 15/06/17
86 According to the above mentioned Eurostat source those local units were of 342 in 2010.
87 AirBnB. Les conséquences économiques du partage de domicile dans les villes à travers le monde. Available at:
https://fr.AirBnB.com/economic-impact. Retrieved on 30/05/17
88 AirBnBcitizen (2017). Le partage du logement à Bruxelles. Politique, économiste et professionnel du tourisme prennent la parole.
Available at: https://brussels.AirBnBcitizen.com/fr/le-partage-du-logement-bruxelles/. Retrieved on 30/05/17.
89 Ibid.
90 Interview with a representative of the Economics and Employment department of the Brussels-Capital Region conducted the
18/05/17.
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