Airbnb's Significant Contribution to South Africa's Economy: A Closer Look

A newly-released report reveals that Airbnb has made a significant financial contribution to South Africa's Gross Domestic Product (GDP) over the past two years. According to the short-term rental platform, a staggering R23.5 billion was added to the country's economy in 2021 alone. The disclosure was announced in the course of the Airbnb Africa Travel Summit that aimed to develop efficient, sustainable, and collaborative strategies for regional tourism growth.

The study, delivered by Genesis Analytics for Airbnb, suggests a promising outlook for South Africa's tourism industry courtesy of the Californian-based company. Showing a doubling of Airbnb's financial input since 2019, it also reports an apposite 70% climb in job creation within the same timeframe.

In an unexpected twist, domestic travel has emerged as a major force behind Airbnb's success in the country. In spite of South Africa's international appeal, a robust 60% of Airbnb guests in 2021 have been identified as locals. This domestic travel surge appears to have fortified the tourism sector throughout the enduring Covid-19 pandemic.

Economic gain is not confined to traditional metropolitan areas; visitor interest is increasingly shifting to lesser-known regional locales. Of the 10 swiftest-growing Airbnb destinations in South Africa, six derive from areas beyond the typical touristic hotspots. Correspondingly, hosts in these regional areas have enjoyed a communal income of around R4 billion, exhibiting a significant 25% increase from 2019.

Airbnb, which has long advocated for stronger regulation, anticipates a continuous growth trajectory fuelled by investment in local tourism. Airbnb's regional lead for the Middle East Africa, Velma Corcoran, emphasised the imperative need for more comprehensive and supportive measures, characterising increased regulation as a catalyst for sustained inclusivity and diversity in global tourism.