Abstract
Airbnb is viewed as an advocate of small micro medium enterprises (SMMEs) in order to boost their revenue. Furthermore, in 2016, Airbnb released a report stating that its community generated R2.4 billion in economic activity in SA, which is the estimated sum of guest spending and host income. It is important to elucidate that SA's tourism fraternity has been amongst the best performing sectors amid the challenges it is faced with. The sharing economy concept requires all tourism stakeholders to work together (public-private partnership) in order to see its fruition. The sharing economy represents the power of the collaborative consumption and become a means to create an additional value chain for the tourism industry by decreasing the barriers of entry. The Airbnb Africa Academy is a pro-poor skills development and support initiative that was piloted in South Africa, and it has increased access and the success of hosts on the Airbnb platform.
TopIntroduction
“The tourism industry has established itself as one of the leading industries in the world economy, being promoted for its economic benefits across all countries. The economic benefits include improving the balance of payments, attracting foreign exchange, in addition to increasing state coffers through the taxation of non-residents. Tourism is an export industry, where the tourism product offering can be consumed at the destination area, which means that the bulk of the value adding happens at the destination area” Henama (2017a: 72). Tauoatsoala et al. (2015) noted that tourism activitties are associated with the hosting of the tourism consumer at the local area, because tourism consumption happens at the destination area. This is due to the simultaneous consumption and production of the tourism product offering. “Tourism has greater impact economic impact on an economy, as the injection of tourism revenue has a direct, indirect and induced impact on the economy” Sifolo & Henama (2019: 198). “Following the first racially inclusive democratic elections in 1994, the South African Government efforts to eliminate poverty have been frustrated by the continued shedding of jobs from the formal economy” Henama (2014b: 1).
“Tourism can catalyze other industries such as manufacturing and agriculture when the tourism industry is planned to be pro-poor and benefit the destination area” Strydom et al. (2019: 9). In the case of South Africa, tourism has been recorded as the “new gold” as the growth of tourism is similar to the mining exploits of South Africa in the 1970s. The tourism industry has grown in leaps and bounds in South Africa (SA) since the first democratic elections in 1994 according to Henama (2018). It has grown in its economic contribution and is now called the “new gold”, and is a major employer within the economy. In South Africa, the National Development Plan (NDP) recognizes tourism as one of the key drivers of employment and economic growth. The NDP envisages the promotion of SA as a tourist and business events destination. Tourism is projected to grow the tourism industry, and is expected to attract 20 million tourists by the year 2030. The direct economic impact of the tourism industry has significant indirect and induced impacts. The Table below depicts the contribution of the sector in 2018.
Table 1. Socio-economic contribution of tourism in 2018
| Economic Indicator | Contribution |
| International arrivals | 10.5 million |
| Direct jobs | 720 000 direct jobs |
| Total jobs | 1.5 million direct and indirect jobs accounting for 4.5 percent total employment in South Africa |
| GDP – Direct contribution | R130 billion, accounting for 2.8 percent contribution to the total GDP |
| GDP – Total contribution | R425.5 billion, accounting for 8.6 percent total contribution to the economy |
| Total Tourism Foreign Direct Spend (TTFDS) | R58.57 billion |
| Domestic Trips | 13 million |
| Total Direct Domestic Spend (TDDS) | R18.29 billion |
Source: Parliamentary Monitoring Group, 2019
Key Terms in this Chapter
Aribnb: It is an online marketplace which deals with offering and demand of lodging, homestays at a convenient price.
Reputation: It means a social entity resulted from the evaluation of others or other groups.
Price Determinants: Elements of the markets which boost or constrain tourism demand and offering.
Tourism: It is defined as the act of traveling for pleasure or business out for home more than one day and less than six months.
Hospitality: It is a rite of passage oriented to welcome and receive strangers as long as their sojourn.