Airbnb releases report on Cape Town to 'set record straight' amid concerns about its impact on housing market
The report outlines the estimated economic benefits of the Airbnb community in the city and its impact on the housing market.
John Maytham discusses the report with Airbnb's Velma Corcoran, Director of Policy Strategy (EMEA).
There have been calls for more regulation of Airbnb in the City of Cape Town as the growing number of listings causes concern that residents are being priced out of the market.
In a recent interview, urban policy researcher Nick Budlender questioned whether the costs imposed on Capetonians are worth the economic spinoffs that come from visitors who may have stayed in a hotel otherwise.
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Airbnb has now released a report on its impact on the Mother City, which will help to 'set some of the record straight', says Velma Corcoran.
John Maytham interviewed the online marketplace's Director of Policy Strategy for Europe, Middle East, and Africa (EMEA) on The Afternoon Drive.
Corcoran says their data shows that Airbnb has had a significant positive economic impact, with R14 billion added to GDP and 42 000 jobs supported in 2023.
"In a city like Cape Town which is very dependent on tourism, this is important."
Velma Corcoran, Director of Policy Strategy: EMEA - Airbnb
In terms of the platform's impact on housing in Cape Town, Corcoran says Airbnb listings accounted for less than 1% of housing stock in 2023.
"We looked at what we term 'dedicated rentals', and this is important because these are the kind of listings that are rented more intensively and could arguably take stock off the long-term rental market."
"Over the last four years we've seen no significant increase in the number of Airbnbs in Cape Town, while at the same time we have seen rising rents."
Velma Corcoran, Director of Policy Strategy: EMEA - Airbnb
KEY FINDINGS:
- Around half of hosts say the extra income helps them afford their homes and afford the rising cost of living.
- Hosts on Airbnb welcome guests in a wide range of neighborhoods, including those that do not typically benefit from tourism. These include Plumstead, Monte Vista, Bothasig, amongst others.
- In 2023, hosts on Airbnb welcomed more than 700,000 guest arrivals to Cape Town who contributed an estimated R14.4 billion annually to GDP1,
including:
42,000 jobs supported
R7 billion in labour income - Dedicated rentals hosted on Airbnb in Cape Town represent just 0.9% of all formal housing units - less than 1 in 100 - in the city.
- If dedicated rentals4 hosted on Airbnb were suddenly added to long-term rental supply (an unrealistic assumption), it would lead to an average reduction in rent of only R69 per month5.
- In the four years from January 2020 to January of 2024, the total number of active stayed listings in Cape Town did not increase significantly.
Corcoran says the release of the Cape Town report is also partly aimed at accelerating its call on national government to set up a national host register.
This will help government at both national and local level to make informed decisions driven by data, on what kind of regulations are needed, she explains.
Scroll up to the audio player to hear more from Corcoran