Airbnb South Africa has written to policymakers to propose a series of measures that will help build a more inclusive tourism economy.

The proposals are aimed at empowering government and the private sector to work together to address important issues, such as systemic barriers to entry and inequality.

In a recent survey, half of the hosts across South Africa said the money they earned from hosting helped cover the rising cost of living, and over a third said the additional income helped them to make ends meet.

What Airbnb is proposing

1. Short-term rental regulation: Airbnb calls for a clear and proportionate national framework for the regulation of short-term rentals and the establishment of a simple online national registration system. New rules that distinguish between professional and non-professional activity will give authorities the insights they need to make data-informed decisions on the tourism industry, protect the everyday hosts who occasionally share their homes, and clamp down on property speculators who damage communities.
2. A clear definition of short-term rentals: The establishment of a clear definition of ‘short-term rentals’ in accordance with international best practice to give clarity to the sector within the tourism industry. 
3. Increased collaboration between public and private sectors: Bring together public and private sector in partnership to create more inclusive industries in South Africa. This includes the development of programmes that lower barriers to entry into the tourism economy and empower historically disadvantaged people, SMMEs and local tourism entrepreneurs to build and grow their businesses. Airbnb calls on the government to further recognise the power of public, private partnerships, and stands ready to contribute to this important work, including through its own programmes such as the Airbnb Entrepreneurship Academy.
4. Further investment in tourism dispersal projects: The implementation of collaborative tourism campaigns that encourage the disbursement of peri-urban and rural tourism to ensure the growth of the sector is spread to lesser-visited destinations and disadvantaged communities.

Velma Corcoran, Regional Lead Middle East Africa at Airbnb, said: “The Airbnb platform can help anyone, anywhere, to become a tourism entrepreneur, and as living costs continue to rise, we want to work together with the government to help more South Africans to participate in tourism, particularly historically disadvantaged people. 

“We’re continuing to invest in programmes such as the Airbnb Entrepreneurship Academy, that support a more inclusive tourism economy, but the private sector alone cannot solve the historic inequality challenges facing South Africa. 

“Now is the time to establish a clear set of rules for short-term rentals in South Africa that create a more inclusive and sustainable industry, and enable more people, in more places, to benefit from tourism.”

In 2021, Airbnb announced a new three-year commitment to South Africa to address barriers to becoming a tourism entrepreneur.

Anderson weighs in

The following, in her own words, was provided to Tourism Update by Rosemary Anderson, National Chair for hospitality association FEDHASA. Besides being Chairperson of FEDHASA, Anderson also runs a hospitality business in SA and in Scotland, so she is able to give first-hand knowledge of how the regulations work.

“There is a delicate balance between ensuring accommodation providers of every size are regulated, to protect their guests and themselves, and ensure acceptable minimum levels of service standards are delivered – versus discouraging small accommodation providers from operating.

When looking at introducing anything new, it is always wise to look at what other countries have done successfully and, particularly, analyse mistakes other countries have made. 

A good example would be the new ‘Short-Term Let Legislation’ implemented this year in Scotland, which affects B&Bs, guest houses, short-term rentals and Airbnb owners. 

In summary, meeting the onerous and costly new Scottish regulations has resulted in many small accommodation providers closing down as it is so onerous and costly to implement. 

Added to this is that part of the new legislation says there will only be a three-year licence extended to successful applicants – very few businesses are prepared to invest capital in a property if they are only assured of a three-year operating licence. 

The other mistake they have made is to have one set of regulations to fit all. They have not taken into account the difference in operating environments, norms and facilities for accommodation providers in rural, village and farm areas vs accommodation providers in cities.

South Africa infamously has the highest unemployment rate in the world, so this is the last thing we want to have happen to us. Small businesses are part of the key to solving our massive unemployment problem. So when there are discussions with Government – we really hope that there will be meaningful engagements with businesses on the ground in our industry who operate in rural, farm, dorpies and township settings, all the way up to city accommodation providers.

We want to continually elevate the standard of service we offer to our valuable tourists and routinely educate our small accommodation providers from A-Z to bring them up to the highest possible level and assist them to grow their businesses. 

This would be best done with an apple and not a rod. Let’s learn from Scotland’s mistakes.”