ABSTRACT
This chapter studies Airbnb as a form of digital entrepreneurship and its direct and derived socioeconomic effects on local economies in urban and peripheral regions. The study shows that the income generated through Airbnb is used to pay hosts’ housing costs and contributes to increasing private consumption, which has positive impact on value creation in the local economy. The interregional quantity model applied in this study shows the economic value of Airbnb tourism in Denmark and demonstrates that the economic effects are greater in urban destinations than in peripheral areas. This chapter contributes to the scarce literature on the economic impact of Airbnb and attempts to shed light on how the policies and regulations can be applied to diversify economic gains from digital entrepreneurship, so that it becomes favourable to the tourist destinations not only in the urban areas but also in peripheral areas.
