2 weeks Ago
Airbnb has released a report arguing that its platform has had little impact on the Cape Town long-term housing market. Instead, it says it has contributed significantly to the city's economy, reportedly generating R7 billion in income in 2023. This follows complaints made by city residents who are growing increasingly impatient with the lack of government regulations on Airbnb, as they feel they can no longer afford to live in the city.
Airbnb said that hosts in the Mother City received 700,000 guests in 2023, which earned them nearly R2.5 billion. This accommodation, made possible by the platform, contributed an estimated R14.
4 billion in GDP to the city's economy and supported 42,000 jobs. This creates a dilemma for the City of Cape Town. On the one hand, the report found that short-term rentals generate large amounts of revenue for locals and businesses and help 49% of hosts afford their homes.
On the other, citizens feel they are being priced out of the city as no industry-specific regulations are in place to prevent this. This occurred in Barcelona, Spain, where citizens protested following years of overtourism, which resulted in rising housing and living costs. As a result, the city announced that it aims to eliminate all short-term rental listings by 2028 after a partial ban in 2021.
A 2020 study found that rental prices increased by 7% in neighbourhoods with the highest Airbnb activity in Barcelona. However, Airbnb says that Cape Town's Airbnb sector has had an insignificant impact on the rental market. It argues rental prices would only decrease by R69 if all Airbnb listings were converted to long-term rentals.
The report notes that active...
Daniel Puchert.
