# Professor Arun Sundararajan explains the impact of local governments banning Airbnb rentals on tourism

1 Faculty News August 23, 2016 ![Wall Street Journal logo](/sites/default/files/styles/246w/public/assets/images/wsjlogo.jpg?itok=5Qt0z3WX)>

Excerpt from [The](https://www.theguardian.com/technology/2016/aug/06/uber-chinese-deal-ride-sharing-india-taxis)[ Wall Street Journal](http://www.wsj.com/articles/want-to-book-an-airbnb-stay-not-so-fast-1471953600) -- "Stifling short-term rentals isn’t always in a city’s best economic interest, said [Arun Sundararajan](http://www.stern.nyu.edu/faculty/bio/arun-sundararajan), a New York University professor of information, operations and management sciences. If cities crack down too hard on Airbnb, they run the risk of losing out to other tourism destinations with a more robust supply of rooms for rent. 'If a city is deeply dependent on tourism, there’s a huge expansion that can come from being a city who has a huge number of affordable and interesting Airbnb listings,' he said."

[Read more](http://www.wsj.com/articles/want-to-book-an-airbnb-stay-not-so-fast-1471953600)