Does Airbnb matter to the domestic tourism market? Empirical evidence from Airbnb supply and tourism demand in South Korea

The growth of Airbnb has given rise to changes in tourist behavior and tourism-related industries. However, research on domestic tourism demand (DTD) for Airbnb supply has been limited. Thus, this study uses the autoregressive distributed lag model and Granger causality analysis based on the tourism demand theory to investigate the relationship between Airbnb supply and DTD. Expenditure on tourism-related products, number of visitors, and search volume of tourism destinations are applied to measure the DTD. The results indicate that expenditure has a positive relationship with Airbnb supply in the short term, while the number of visitors and search volume have positive relationships with Airbnb supply in the long term. The findings show differences depending on the types of Airbnb listings and property hosts. Results of the Granger causality analysis indicate Airbnb supply Granger-causes DTD. Theoretical and practical implications regarding tourism demand are discussed based on the findings.