OTTAWA COUNTY, Mich. — Local businesses say a ban on short-term rentals in Park Township would have "long-term" effects, according to a recent study.
Published by the Frost Research Center at Hope College, the study sent online surveys to nearly 200 randomly selected business in the Holland area and more than 100 short-term rental (STR) owners in Park Township, seeking to determine the economic impact of the township's short-term rental industry.
For three months last fall, short-term rentals were banned in most of Park Township following action from its board. Days after the ban went into effect, Park Township Neighbors — a nonprofit formed by area rental owners — sued the township and won a preliminary injunction, meaning they were again allowed to rent at least until further court action.
Park Township Neighbors (PTN) commissioned the recent study and a "siginificant portion" of its cost was paid for by the local, state and national associations of realtors, according to its website.
The study found 63% of business owners believed a ban on short-term rentals in Park Township would lead to long-term effects, including loss in revenue and layoffs. In addition, 69% perceived STRs as having a positive impact on past business.
"I think it would be devastating," said Leesa Schram, the owner of Tip Toes, a children's clothing store in downtown Holland. "We really rely on our summer months for the revenue that we get from tourists."
While Schram says she noticed a "dip" in Tip Toe's revenue last fall related to the short-term rental ban, more businesses reported no change in customer traffic or revenue (39%) than those who reported a decrease (29%) or an increase (4%), per the study.
The Frost Research Center also estimates the average short-term rental in Park Township produces $14,112 for its surrounding neighborhood and $35,280 total.
"We do have a vote," said Schram, a Park Township resident who lives next door to an STR. "For the other people, for the other merchants [living outside the township], they probably don't. Their hands are tied."
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Regarding the survey sent to short-term rental owners, 64% said they would not plan to further invest in the area if a ban was reinstated and 96% said a ban would have a long-term effect on their business, including layoffs for maintenance and other staff.
While 66% of STR owners responded to the survey, only 20% of local business owners replied. When asked to reveal the location of their business, 22% said they were located within Park Township.
In its conclusion, the Frost Research Center said its work — like "most" economic impact studies — was limited by "generalizations and estimates" and it recommended "further longitudinal research of STRs in this region to determine their long-term impact."
To read the full study, click here.
Park Township declined to comment on this story.
