Major entities in the hospitality industry in South Africa have called for government to step in and regulate Airbnb, an online marketplace that allow people rent out their properties or spare rooms to guests, claiming it is killing the country’s tourism industry.
South African news brand, City Press, reports that local hotels in the rainbow country are worried that unregistered accommodation establishments listed on Airbnb, which has seen impressive growth in South Africa by 65 percent, are taking away business from established bed-and-breakfasts and hotels in the country.
The Federated Hospitality Association of South Africa (FEDHASA) calls for government to crack down on Airbnb and smaller organisations have echoed raised the concern.
According to Port Elizabeth Metro Bed and Breakfast Association (PEMBBA), Airbnb brought in over R6 million in Nelson Mandela Bay last year, 65 percent up on the previous period. However, the formal hotel sector only saw an increase of 0.08 percent in the same area.
“The city must come up with a plan to regulate Airbnb. The tourism industry, which pays taxes in the city is not happy, they are saying the Airbnbs – which is not regulated and can afford to undercut prices since they do not have overheads. They are killing the industry,” said Anele Qaba, Executive Director, Nelson Mandela Bay Metro Economic Development.
PEMBBA chairperson, Sheena Wilmot called Airbnb a ‘massive problem’, adding that the playing field between traditional accommodation and Airbnb must be levelled.
However, while hotels may be against unregulated competition, the Airbnb app is an attractive platform for South Africans looking to make money from their property. This is especially true for locals who live in areas of high tourism, such as Cape Town.
In October 2018, figures showed that South African hosts had earned over $ billion (R14 billion) since the platform was first founded in 2008.
Airbnb said it supports over 22,000 jobs across South Africa, and the popularity of the platform is growing quickly each year compared to traditional tourism sectors such as the hotel industry. Guardian
