Final answer:
Large hotels may support an Airbnb tax if they view Airbnb as direct competition, particularly in areas where the Location Quotient indicates a high concentration of hotels. However, the hotel's stance on the tax may also be influenced by other factors, such as economies of scale that can offset competitive pressures.
Step-by-step explanation:
As to whether large hotels would support the Airbnb tax, it is plausible to believe that larger hotels might indeed support such a regulation since it would create a more level playing field by subjecting Airbnb and similar platforms to similar tax obligations as traditional lodging establishments. To understand the impact on the local hotel industry, one can look at the Location Quotient, which can indicate the concentration of hotels in a particular area compared to the state average. If the LQ is high, the traditional hotel market might be saturated, and the addition of Airbnb accommodations could be seen as unwanted competition, prompting support for the tax.
However, if the LQ indicates that the market is not as saturated with hotels, the traditional hotel sector may be less likely to feel threatened by Airbnb's presence. In such cases, whether hotels support the Airbnb tax may depend more on their view of Airbnb as competition or as part of an expanding tourism ecosystem that could benefit all. It is also conceivable that larger hotel chains, who may experience cost savings due to economies of scale, could leverage their scalability to compete with Airbnb without the need for additional taxation on the platform.