'Airbnb has utterly distorted the long-term rental market in Cape Town'
Journalist Mike Wills warns that Cape Town is rapidly becoming unlivable for its residents.
The Airbnb app is displayed on a smartphone. Berlin, 6 October 2023. Picture: AFP
John Maytham interviews Mike Wills, journalist and talk show host.
Listen below.
In a recent opinion piece for the Daily Maverick, Mike Wills argues that Cape Town should closely observe how cities like Barcelona are addressing the challenges posed by Airbnb and implement similar strategies to bolster its long-term rental market.
Wills says Barcelona has become a prime example of the issues caused by overtourism.
While the tourism industry generates 14% of the city's revenue and supports approximately 150,000 jobs, it is increasingly making life unlivable for its residents.
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"Barcelona was absolutely rammed, you couldn't get another person in there."
- Mike Wills, Journalist
Similarly, Wills contends that while Cape Town can continue to attract tourists across various segments, there is a significant issue that needs addressing.
He points out that Airbnb has severely disrupted an already strained long-term rental market.
Remarkably, Cape Town now boasts 23,500 properties listed on Airbnb, which is 40% more than Barcelona and generates an estimated R2.3 billion in income for property owners.
This shift indicates that visitors are being prioritised over residents.
Wills notes that the city faces the highest rental rates in the country, with R25,000 per month now being the entry-level rate in middle-income areas, and the lowest vacancy rates, at just 2% compared to the national average of 6%.
He adds that the problem is escalating as developers focus on constructing tower blocks with small apartments intended solely for short-term rentals.
"I think it has utterly distorted the rental stock market for long-term rentals in the city."
- Mike Wills, Journalist
Wills advises that the City of Cape Town should closely monitor how cities like Barcelona, New York, San Francisco, Paris, and Amsterdam are implementing stringent regulations on Airbnb.
Additionally, Wills recommends that Cape Town should encourage visitors to stay in hotels and guesthouses located in designated accommodation zones.
This approach would not only foster genuine employment opportunities but also improve tax revenue for the state, he says.
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