Tourism gentrification and P2P accommodation: The case of Airbnb in Bandung City

Abstract

In the accommodation sector, the sharing economy has caused a change of lifestyle that has led to gentrification. This paper chose Bandung City as a case study as the city is one of Indonesia's creative centres and tourism destinations. This study identifies the increasing number of Airbnb listings and how it relates to gentrification. Two sources of data are used: Airbnb and the economic and demographic data in Bandung City. We construct the gentrification index and present the non-parametric tests on the impact of Airbnb on gentrification. The analysis demonstrates the gentrification process in the fringe area near tourist attractions and residential areas, which differs from cities in developed countries. Our findings suggest that Airbnb listings may lead to tourism gentrification in peripheral and residential areas. This study proposes the importance of identification and policies on gentrification development to hinder over-tourism in peripheral and second-tier cities in developing countries.