Influence of Short-Term Rentals and Gig Economy on Tourism in Kodaikanal, Tamil Nadu

Abstract

This study explores the intersection of short-term rentals (STRs) and the gig economy within the context of tourism, focusing on how platforms like Airbnb, Home stays, Bed and Breakfast accommodations influence local economies, tourism demand, and the labor market in the popular tourist destination Kodaikanal, Tamil Nadu. With the rapid rise of STRs, many individuals have transitioned into the gig economy, offering their properties or services to tourists in exchange for flexible income opportunities. Using semi-structured interviews with hosts, guests, and tourism professionals, this qualitative study investigates the economic, social, and regulatory impacts of STRs. Thematic analysis is employed to identify key themes and patterns from the interview data, which include economic impact, flexibility and work conditions, regulatory concerns, and demand uncertainty. The findings reveal that STRs provide significant economic benefits for hosts but also contribute to housing market inflation in urban areas, leading to tensions with local communities. The study also highlights the flexibility and autonomy that gig workers experience, although these benefits are tempered by risks such as income instability and the lack of formal worker protections. Additionally, concerns regarding regulations and the sustainability of STRs are raised, especially in the face of over-tourism. The paper concludes by suggesting that effective policy development is essential to balance the benefits of STRs with the challenges they pose to housing markets and local communities in Kodaikanal. This research contributes to a deeper understanding of how STRs and the gig economy are reshaping tourism demand, work conditions, and urban landscapes.