Airbnb has written to government to accelerate the implementation of a national host registration system to boost transparency on hosting activity and to ensure that Cape Town (and other cities) are equipped to introduce additional targeted rules.

New research from Airbnb, which analyses the impact of short-term rentals on Cape Town’s economy and housing market, shows little to no correlation between Airbnbs and rising rentals.

Dedicated listings on Airbnb (homes shared more than the ‘typical’ listing) accounted for less than 0.9% of all formal housing units in the city – less than 1.5% of the number of additional housing units needed to meet the growing housing demand over the next four years.

The analysis on the impacts of hosting also shows that stays on Airbnb contributed an estimated R14.4 billion to GDP, supporting 42 000 jobs in Cape Town during 2023 alone. Survey data from Hosts also shows that for around half of property owners, hosting is an economic lifeline that assists in affording their homes.

“Hosting on Airbnb provides much needed income to families in South Africa and supports thousands of jobs across the wider economy. As short-term rentals play an increasing role in South Africa’s tourism economy, we are calling on the government to accelerate the introduction of a national registration system that gives authorities better visibility of hosting activity in their area. Data from a register of hosts can then inform targeted and proportionate steps to regulate activity, where there is a clear need. We look forward to continuing our positive work with authorities in South Africa,” comments Velma Corcoran, Regional Lead for Middle East and Africa.

In summary, Airbnb’s report found that during 2023, hosts on the platform welcomed more than 700 000 guest arrivals to Cape Town, contributing an estimated R14.4 billion annually to GDP including 42 000 jobs and R7 billion in labour income:

• Dedicated listings in Cape Town represent just 0.9% of all formal housing units – les than 1 in 100 – in the city which represents less than 1.5% of the number of additional housing units needed to meet the growing housing demand over the next four years.
• Between January 2020 and January 2024, the total number of active stayed listings in Cape Town did not increase significantly. However, rentals continued to climb, implying that there is little to no correlation between Airbnbs and rising rentals.
• Airbnb Hosts in Cape Town earned nearly R2.5 billion in 2023. In Cape Town, a ‘typical’ listing is rented for 38 nights a year with a ‘typical’ hot earning R74 000 per year. Eliminating the revenue earned through Airbnb would be a major economic blow to Airbnb Hosts and in some cases, undermine their ability to afford to live in their areas.
• Almost half of Hosts say that the extra income from Airbnb helps them to afford their homes (48%) and to afford the rising cost of living (50%).
• 47% of Hosts say that the economic climate is driving them to host more.