TOURISM
A First for Africa
Airbnb’ s partnership with The City of Cape Town
F ew online platforms have been more influential on the local property market than Airbnb. Built on the premise of the sharing economy, Airbnb is active in more than 190 countries, offering tourists an alternative to traditional hotels or guesthouses.
Much has been written about the effects of Airbnb listings on local property prices. The argument goes that, since more and more property owners are choosing to rent out their properties using the online platform, locals are unable to find affordable accommodation within their own cities. According to the company’ s website, a host can make up to R4 442 per week if they were to rent out their home or apartment to a maximum of two guests at a time. This comes down to a monthly average just short of R18 000. Little wonder, then, that many homeowners are taking the sharing-economy route.
In mid-October, the City of Cape Town announced a collaboration agreement with the short-term letting giant, leaving many concerned for the future of housing in the Mother City. But what, exactly, does the agreement entail? And what does it mean for those looking to invest in property?
Earlier this year, Airbnb launched a pilot programme in Cape Town, where they supported the training of locals in hospitality and technology. This forms the basis of the new agreement.
Cape Town currently has 17 600 active listings on the platform, earning hosts and Airbnb a combined income of R762m over the past year.
More than 290 000 visitors stayed in Cape Town Airbnb listings during this time, resulting in an economic boost of around R2.4 billion for the city.
While the fact remains that Airbnb has an effect on neighbourhoods, with an ever-increasing number of homes and apartments vacant apart from occasional short-term lets, it would be naive to ignore the power of this platform. Property owners in highly sought-after areas have the option to make use of Airbnb as an alternative to traditional renting. With the added income comes more work, however:
Short term lets mean you don’ t have a guaranteed income for a long period of time( i. e. a year or more)
Many tourists expect some sort of hands-on host experience, including suggestion of restaurants and activities.
More often than not, you’ d have to be at the property whenever a guest is checking in or out.
With the drought crisis in Cape Town, you have the added responsibility of informing your guests of water-saving measures, something most locals are already well aware of.
Which industry is it affecting?
While many are concerned about the effect of Airbnb on the housing market, it seems clear that the industry being disrupted is that of hospitality. It’ s with this in mind that the new agreement looks to bring about palpable change to locals. By training local residents in tourism and technology, the agreement is set to empower lo-
AIRBNB AND THE CITY OF CAPE TOWN WILL
Join forces to boost the attractiveness of Cape Town and enable Airbnb hosts to become ambassadors of the city.
Work together to bring community-led tourism to townships and support greater economic and social empowerment.
Celebrate Cape Town as an‘ Ideas Capital’ by hosting the Africa Travel Summit and bringing together 80 tourism and technology leaders from across the continent.
Exchange insights and learnings about travel trends and the sharing economy in order to leverage the technology and the Airbnb platform to boost local communities.
Airbnb has committed to investing R13million rand in community-led projects across the continent over the next three years
cals, creating more jobs and a more inclusive tourism industry.
Share your thoughts on the Airbnb agreement with us. Send us an email at editorial @ reimag. co. za or head on over to our Facebook page
42 NOVEMBER 2017 SA Real Estate Investor Magazine