Aug 9th 2024 What stakeholders in the most popular tourism regions think about the buy-to-let model

We are pleased to announce that Tirol Real Estate has been supervising a master's thesis over the past few months. Tobias Florian, a student at the Management Centre Innsbruck, wrote his master's thesis with the research question "How can the attitude of destination stakeholders towards new business/investment models be described?". Fifteen stakeholders from the tourism regions of Zillertal, Serfaus-Fiss-Ladis and Seefeld were asked about their views on the buy-to-let model. The interviewees included hoteliers and hotel managers, political actors, local residents and the managing director of a local company.

The interviews confirmed that although opinions on tourism investments using the buy-to-let model differ in some respects, they are nevertheless positive about the future. In order to present the views of the interviewees as objectively as possible, five subject areas were categorized:
 

Challenges of traditional accommodation providers
 

Discussions with hoteliers and hotel managers revealed that traditional hotels are facing considerable challenges. The international clientele and the demands of guests require high levels of investment in the infrastructure and range of hotel services, which harbours financial risks, especially in uncertain times. In addition, hotels are heavily dependent on seasonal fluctuations and the economic situation, which affects occupancy rates and financial stability. A shortage of qualified labour makes it difficult to maintain high service standards. High operating costs and regulatory requirements also increase the financial pressure. According to the respondents, adapting to changing guest needs and integrating modern technologies are crucial to remaining competitive.
 

Attitudes towards new business models
 

The interviews show that new business models such as buy-to-let are seen by many as an opportunity to diversify and tap into new market segments. One hotelier from the Zillertal emphasised the additional sources of income and risk diversification offered by the buy-to-let model. Some recognise the need for careful planning and regulation of these models in order to ensure market stability. Despite differing opinions, there is a consensus that innovation and adaptability are crucial for long-term success. Technology plays a central role in implementing new models and adapting to changing guest needs.
 

Politics and regulation
 

According to the stakeholders, clear and fair regulations are crucial to ensure balanced competition in the accommodation market. Many interviewees emphasise the role of politics in promoting sustainable business models and supporting small and medium-sized businesses through tax incentives and support programmes. The need for flexible and adaptable regulation is also emphasised in order to be able to react to changing market conditions. In addition, the importance of cooperation between public and private stakeholders and the involvement of the local population in the regulatory process is emphasized in order to ensure transparency and acceptance.
 

Future prospects
 

The majority of respondents expressed optimism about the future of the accommodation market, particularly in terms of innovation and growth. Technological development and digitalisation are seen as the key to future competitiveness. Sustainability is seen as necessary in order to be successful in tourism in the long term. Adaptability to changing guest needs and cooperation within the industry are the top priorities for everyone. 
 

Conclusion
 

To summarise, it can be said that the stakeholders of the buy-to-let model have a consistently positive outlook for the future. They are optimistic about the many opportunities offered by this model. The role of politics in particular is seen as crucial in creating concrete and transparent framework conditions. The buy-to-let model also opens up numerous opportunities for sustainable tourism, profitable investments and international diversification. Overall, there is a positive sentiment that the buy-to-let model will continue to grow and prosper in the coming years.