The economic impact for Conway is estimated to be $45-$50 million, with only $12 million of that being accrued by property owners says UNH Professor Daniel Innis. Professor Innis teaches at UNH’s Paul College of Business and Economics and has owned several inns and hotels on the Seacoast of NH. He currently teaches classes in Hospitality Management and Marketing. 

 

Innis was hired by the MWV Association for Responsible Vacation Rentals after the Town of Conway management refused to fund the economic impact study before beginning regulations and proceedings against STR homeowners this year. The MWV Assoc. for Responsible Vacation Rentals is a volunteer based group that has formed “To provide support, advocacy for property owner’s rights, standard-operating procedures and community representation to vacation rental operators & affiliates in the Mt. Washington Valley region.”

 

Now that other $33-$38 million? It is a direct benefit to the local economy! Innis cites three major types of expenditures that have impact locally: 

 

  • Direct Expenditures – This is the money spent on goods and services at hotels, local shops, and other tourism related activities like the Conway Scenic Railroad. 
  • Indirect Tourism Expenditures – This includes the transactions that result from Direct Expenditures, an example being the  food and beverages the Conway Scenic Railroad purchases to service their guests. 
  • Induced Tourism Expenditures – These expenditures are those related to increased consumption resulting from an increase in Direct Tourism Expenditures. This is when a Conway Scenic Railroad employee goes to local Delaney’s Hole in the Wall Restaurant, this is because the resulting expenditure is determined by an individual whose income comes from a tourist expenditure. 

 

As Innis very clearly explains in his report, tourist dollars do have a trickle down affect that results in millions of dollars for the local Conway economy. STR guests spend an average of $131 per day according to the NH Dept. of Business & Economic Affairs. That money is spent at local shops, restaurants, and tourist activities, then these businesses in turn spend money to pay their staff but also to purchase goods/supplies/services from other businesses in the community or region. 

 

To ban STRs in Conway is going to have a major economic consequences that I personally don’t believe the Town Management and some local citizens have considered. Innis goes further to describe why surging home prices are not directly correlated to STR homes, and his belief is supported by national data in many different tourist towns and cities. 

 

If you want to learn more about the STR economic impact read the full report HERE. 

 

Interested in purchasing in Conway or MWV, but concerned about the STR regulations? I can help navigate you through the current regulations and issues. CONTACT ME TODAY.

This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.