Airbnb Contribution to Rural Development

Abstract

The technological developments described in terms of industrial revolutions or disruptive innovations have been shaping economic and social life in rural areas. The global trend towards urbanization presents a major challenge to rural communities. The aim of this article is to study how the peer-to-peer economy influences rural municipalities. On the one hand, in the literature, it is argued that sharing economy may improve accessibility, encourage mobility, attract investments and reduce urban bias. On the other hand, both academics and practitioners are aware of the disruptive effects of sharing economy on e.g., local real estate and labor markets. This qualitative study is based on empirical data from a municipality on the Lofoten Islands of Norway. The results demonstrate that Airbnb has some positive and some negative effects on rural development, but the magnitudes of these effects are modest. Of positive effects, the authors can mention increased local tourism, stimulation of conservation/restoration of traditional houses, and increased recreational mobility for rural residents.