The Airbnb community generated R2.4 billion ($182 million) in total economic activity in South Africa in 2016, which is an estimated sum of hosts income and guest spending, this according to Airbnb's 'Overview of the Airbnb community in South Africa' report. In the report it read that local households earned R817 million ($62 million) in 2016.   

CEO of Cape Town Tourism, Enver Duminy said there had been a mixed response to “disruptive businesses such as Airbnb”, and their effects on tourism, the wider economy and how to regulate this sector in line with local best practice and guidelines.

He said this included where there was lack of grading and benchmarks, which extended to ensuring the safety and health of visitors.

“Some cities have found a favourable space where working in collaboration with sharing economy businesses has mutual benefits. Opportunities exist for tourism businesses (other than accommodation) to partner with accommodation disruptors to offer tours and experiences. This can help to create employment and sustainability in employment. Airbnb and similar environments can provide income for more locals,” said Duminy.

Is Airbnb intimidating the hotel industry?

Danny Bryer, Area Director, Sales, Marketing and Revenue Management for Protea Hotels by Marriott, said it was unclear what the impact of Airbnb was on the hotel industry.

“The arrival of Airbnb in SA in 2015 coincided with the significant increase in inbound tourist numbers. Statistics for last year show that 10 million international tourists visited SA, which was a 13% increase on the 2015 numbers,” he said.

“The hotel industry had fallen behind on new hotel construction in cities like Johannesburg and Cape Town, so there may well have been a shortage of hotel rooms to cater for the new influx of travellers from around the world. It is possible that, at least to some extent, Airbnb accommodation filled the gap.”

He mentioned that in smaller nodes, hotels would probably feel the effect, as there was less incentive for the hotel industry to develop new properties, especially where ones already existed. Investing in a new hotel is substantial and the probable flow of travellers to the region must be large enough to justify the cost.

“Airbnb accommodation could well draw business away from the larger hotels, especially where the growth in tourism is not as marked as in the larger destinations,” he said.

Choosing accommodation depends on the traveller and what he needs.

In some cases the tourist would never have opted to stay in a hotel. A young student group for instance, might choose Airbnb as hotel prices are out of their reach.  People travelling for business would opt for all-inclusive packages at hotels.

“It would be wrong to view Airbnb as the biggest threat to the hospitality industry in the country.  Hoteliers need to monitor the situation on an ongoing basis and to learn from what the customer of the new business model wants and adapt the offering accordingly,” Bryer concluded.

SA-based Marketing Executive for Airbnb, Velma Corcoran, commented: “Travellers are evolving in their expectations. Across the globe, the hunger for experiences as part of travel has created opportunities for local businesses to provide those, as well as added value for visitors. We’ve noted that this is becoming the norm in South Africa, too. Visitors want to share immersive local experiences that take them deep into the heart of communities, connecting them with unique personalities and businesses,” she said.

This article has been updated since first published.