Accommodation platform Airbnb estimates that it contributed R14.4 billion to the GDP and supported 42 000 jobs in Cape Town last year.
Releasing a study on the impact of its short-term rentals on the Cape Town economy and housing market, Airbnb reports that business owners and their staff in Cape Town also benefitted to the tune of R7 billion during the period.
Moneyweb has suggested that the research was a “pre-emptive strike” after several global cities such as New York and San Francisco imposed restrictions on short-term rentals, which it has been argued displace housing that would otherwise be available for city residents to rent for long-term residence.
In August 2024, Gustav Visser, Professor of Geography and Environmental Studies at the University of Stellenbosch, argued that short-term rentals are driving up property prices in Cape Town neighbourhoods because these property values are being measured against their Airbnb-ability.
Lee-Anne Singer, Cape chair of the Federated Hospitality Association of South Africa (Fedhasa), argued for a balanced approach. “If unchecked, the growth of short-term rentals could risk transforming vibrant neighbourhoods into transient zones, potentially diminishing a city’s unique charm. To mitigate over-tourism and ease tensions between visitors and residents, a balanced approach is necessary.”
Rosemary Anderson, Fedhasa national chair, told Daily Tourism Update: “Short-term rentals may offer a solution in regions where hotels or guesthouses may not be available, resulting in economic upliftment for communities that may not have benefited from tourism before. This could be in the form of tourism spending at local restaurants, coffee shops, pubs, general retailers, local transport, entertainment venues and more.”
The new Airbnb report concludes that dedicated rentals hosted on Airbnb in Cape Town represent fewer than 1 in 100 housing units in the city.
“If dedicated rentals hosted on Airbnb were suddenly added to long-term rental supply (an unrealistic assumption), it would lead to an average reduction in rent of only R69 a month,” the report says.
Of the 2 million people who used the platform in 2023, 700 000 stayed in Cape Town, the report says, with a typical host earning R74 000 in a year.
On the back of the report Airbnb has reportedly written to government to start implementing a national host registration system to boost transparency on hosting activity and to ensure that Cape Town (and other cities) are equipped to introduce additional targeted rules.
“Hosting on Airbnb provides much-needed income to families in South Africa and supports thousands of jobs across the wider economy,” says Velma Corcoran, Airbnb’s regional lead for Middle East and Africa.
“As short-term rentals play an increasing role in South Africa’s tourism economy, we are calling on the government to accelerate the introduction of a national registration system that gives authorities better visibility of hosting activity in their area. Data from a register of hosts can then inform targeted and proportionate steps to regulate activity, where there is a clear need.”
Follow African Insider on Facebook, Twitter and Instagram
Picture: Pixabay
For more African news, visit Africaninsider.com
Compiled by African Insider
