This is truly insightful information which allows those of us in this profession to see and communicate the large ripple effect our business operation has on the surrounding community's economic environment.
Basalt, Colo. (PRWEB) September 17, 2009
Instant Software, Inc.'s (ISI) research department, in conjunction with participating in a Vacation Rental Managers Association (VRMA) committee, has released a comprehensive White Paper laying out a blue print for identifying the economic impact of vacation rentals on state and local economies. While it targets state and local officials, it also hones in on educating vacation rental managers on how their industry plays a prominent role in resort economies.
This research outlines the many ways that vacation rentals generate substantial economic benefit in areas outside of the tourism segment, such as driving local construction, real estate, finance and insurance industries. In addition, it shows that economic contributions of vacation rentals are not fully understood and are poorly documented in analytical methodologies commonly used by state planners.
"Instead of vacation rentals being stereo-typed as inconsequential to the tourist economy, the research shows the many positive influences this sector of the market has on any community in which they reside," says Alex Risser, president of the VRMA. "This is truly insightful information which allows those of us in this profession to see and communicate the large ripple effect our business operation has on the surrounding community's economic environment."
Unlike owners of hotels and motels, investors in vacation homes expect to subsidize rentals. For example, they expect mortgage and management costs to exceed rental revenue. This subsidized lodging can facilitate tourism growth and enhance tax revenues in resort areas where large hotels are not economically sustainable. State and civic leaders will be better poised to manage their communities by understanding this and the other investment dynamics that tie vacation homes to a resort community's economic health.
"The vacation rental industry is complex and its enormous dollar value is not adequately profiled by the standard economic forecasting models today used by most states," states Dave Hopcroft, CEO of Instant Software. "Public policy debates over community growth seldom include any financial analysis of how tax increases or restrictions on vacation rentals will affect a resort's construction, real estate, finance and insurance industries, or the related tax revenues. We hope this white paper will provide public officials with a better understanding of how this occurs."
Officials can identify the numbers needed to calculate the economic impact on their community by using the research provided. These numbers serve to better inform state and local governments, who in turn will perhaps be more willing to recognize and support this industry as a major source of growing its economy.
The White Paper outlines how a better understanding of vacation rental homes can affect debates typically arising in resort communities over ideas such as distribution of tax burden among property owners, residents and tourists, large rental homes and other high-density accommodations, as well as tourism growth where hotels are not economically sustainable.
About Instant Software
Instant Software Inc. (ISI) (http://www.InstantSoftware.com) is the nation's leading provider of technology solutions for the Vacation Rental Management industry. Instant Software's complete end-to-end solutions include the market leading Reservations and Business Management Solutions; First Resort Software™, PropertyPlus™, Entech™, and V12.NET™, plus Online Solutions integrated through ISILink™, the most powerful web distribution system in the industry. ISI has installed software at more than 2200 property management companies and vacation rental resorts throughout North and Central America and the Caribbean. ISI was the first in the vacation rental industry to bring real-time online booking, serves more than 200,000 vacation rental properties and services more vacation rental management companies than any other in the U.S.
For more information, please contact:
Amy R. Regnier
Director of Marketing
Instant Software, Inc.
About the Vacation Rental Managers Association
The Vacation Rental Managers Association (VRMA) is a professional trade association for the short-term, vacation property management industry. Headquartered in Santa Cruz, Calif., the VRMA has more than 600 property management and associate members in the United States, Canada, Mexico and the Caribbean representing approximately 150,000 vacation rentals, condos and villas. Often costing less than a single hotel room, professionally managed vacation rentals afford travelers an accommodations lifestyle unlike any other, providing considerably more space, amenities, guest services, and privacy than other lodging options.
For more information, visit http://www.VRMA.com.
# # #