Airbnb Direct Economic Impact Exceeds $100 Billion in One Year

Airbnb Direct Economic Impact Exceeds $100 Billion in One Year

Over $100 Billion Globally and over $685 Million for South Africa

Airbnb’s mission is to create a world where anyone can belong anywhere. To advance this mission, the company is focused on reimagining travel by building an end-to-end travel platform that combines where you stay, what you do, and how you get there, all in one place.

As Airbnb’s community continues to grow, it is generating substantial economic benefits for hosts and communities. According to new survey findings and an analysis of internal data released recently, Airbnb’s host and guest community generated over $100 billion in estimated direct economic impact across 30 countries in 2018 alone. 

Airbnb in South Africa

Airbnb also brings those economic benefits to South Africa: In 2018 alone, the estimated direct economic impact of Airbnb in the country was more than $685 million – an increase from the previous report.

Unlike other business models that siphon the money they generate out of communities, Airbnb activity directly benefits the communities that hosts call home. Since Airbnb was founded, hosts have earned over $65 billion that many use to pay the bills and pursue their passions. Small businesses – many of which are located outside of the traditional tourist districts – also benefit from guests on Airbnb, many of whom spend the money they save on accommodations at local establishments.

“Travel on Airbnb is helping to spread tourism benefits to more families, communities and local businesses,” says Velma Corcoran, Airbnb Country Manager for Sub-Saharan Africa.

“It’s never been easier to travel to and stay in South Africa’s smaller towns. Visitors are discovering local hospitality and hidden gems that they might otherwise have missed, while supporting new economies and revenue streams that help make local communities stronger.”

Locally, there has been a significant increase in host earnings on Airbnb in smaller towns. Mossel Bay, for example, saw a year-on-year increase of over 80%, while Saldanha Bay in the Cape saw an increase of almost 60% over the same period. Host earnings in Garden Route towns such as Knysna, Plettenberg Bay and George increased by 48%, 58% and 74%, respectively.

On a global level, this growth has come as Airbnb helps spread the benefits of tourism to some of the least visited destinations in the world, as well. Between 2016 and 2018, guest arrivals of travellers on the Airbnb platform increased substantially in places like Moldova (190%), Vanuatu(187%) and New Caledonia (175%).

According to an Airbnb survey of more than 228,000 responses from their host and guest community around the world:

● 84% of hosts on Airbnb say they recommend restaurants and cafes to guests.

● 69% percent of hosts on Airbnb say they recommend cultural activities such as museums, festivals, and historical sites to guests.

● 51% of hosts on Airbnb say hosting has helped them afford their homes.

● On average, guests on Airbnb say 42% of their spending occurs in the neighbourhood where they stay.

● 50 %t of guests say they spent the money they saved by staying in a home on Airbnb in the cities and neighbourhoods they visited.

● 70 % of guests say wanting to explore a specific neighbourhood matters in their decision to use Airbnb.

● 86% of guests say the location being more convenient than hotels matters in their decision to use Airbnb.

● Guests who say Airbnb impacted the length of their stay on average added 4.3 days to their trip.

Airbnb Direct Economic Impact in 2018 

Based on Host Income and Estimated Guest Spending- in USD during trip

1. USA: 33.8 billion

2. France: 10.8 billion

3. Spain: 6.9 billion

4. Italy: 6.4 billion

5. UK: 5.6 billion

6. Australia: 4.4 billion

7. Canada 4.3 billion

8. Japan: 3.5 billion

9. Mexico: 2.7 billion

10. Portugal: 2.3 billion

11. Germany: 2.3 billion

12. China: 2.3 billion

13. Brazil 2.1 billion

14. Greece: 1.4 billion

15. Netherlands: 1.3 billion

16. Korea: 1.2 billion

17. Thailand: 1.1 billion

18. New Zealand: 912 million

19. Croatia: 910 million

20. Ireland: 832 million

21. Malaysia: 734 million

22. South Africa: 685 million

23. Argentina: 664 million

24. Denmark: 654 million

25. Switzerland: 651 million

*2018 estimated direct economic impact is the sum of Homes host earnings and estimated guest spending. Host earnings is based on internal Airbnb data. Estimated guest spending is based on nearly 12,000 responses to a voluntary survey sent to a sample of guests on Airbnb accounts that had taken a trip to those countries in 2018. No payment or other incentive was provided in exchange for completing the survey.

Source: Airbnb.com

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