Airbnb says it contributed over USD 920 million to Indian economy in 2022
Airbnb has seen a dramatic growth in business in India
New research by Oxford Economics says that online marketplace for accommodation rentals Airbnb is an important pillar of India’s tourism industry, contributing over USDD 920 million or INR 72 billion to Indian Gross Domestic Product and supported over 85,000 Indian jobs in 2022 alone.In a press statement, Airbnb says that its contribution to the GDP and the number of jobs supported in India has more than doubled since 2019 despite the Covid-19 outbreak and international border restrictions.
The report also highlights the powerful multiplier effect Airbnb guest spending has within local communities. In 2022, Airbnb guests spent a total of USDD 815 million in India in areas like purchases on transportation, restaurants, retail stores, and retail stores. The guests spent in 2022 more than doubled the 2019 levels.
In India, Airbnb’s presence was the highest in Goa, where Airbnb guests spending amounted to almost USDD 190 million, this was followed by Bangalore and Delhi, Mumbai and Manali. The statement details the contribution made by Airbnb guests to domestic tourism across the nation. It says that domestic Airbnb guest spending totalled USDD 670 million and accounted for approximately 82 pc of total Airbnb guest spend in India, around a three-fold increase from 2019.
The report also explores two profound changes in travel behaviour since the pandemic. One is the dispersal of tourism away from urban areas, and long-term stays driven by the emergence of flexible work arrangements.
“Airbnb has clearly played a major role in the resilience and rebirth of the Indian travel and tourism sector in the wake of the Covid-19 pandemic. Airbnb has been at the heart of some of the trends reshaping the nation’s travel and tourism industry, including the shift in travel away from cities and towards more rural communities, and the increase in demand for long-stay trips, exemplified by the live and work anywhere phenomenon,’’ says James Lambert, Director for Economic Consulting in Asia for Oxford Economics.
“Domestic travellers have been crucial to the tourism sector’s resilience over the past three years as Indian guests saw opportunities in domestic travel as a substitute for international holidays, with self-drive and regional trips increasing in popularity which led to a wider dispersion of tourism spend outside the traditional or ‘popular’ destinations in India,” Lambert adds.
“The economic contribution to both GDP and jobs driven by travel on Airbnb in India has created powerful economic ripple effects that have enabled the growth of local businesses, such as shops, restaurants, bars, and cafes, which are often central to how travellers experience a destination and created job opportunities for the locals. Travel is now more dispersed, and so the economic benefits are being shared across more destinations, enabling a valuable economic contribution to rural and regional areas. This dispersal is being driven by hosts on Airbnb and in turn creating economic opportunities for various communities,” says Amanpreet Bajaj, Airbnb’s General Manager for India, Southeast Asia, Hong Kong and Taiwan.
“As destinations across India continue to recover, we are committed to partnering with governments and communities to rebuild their tourism economies in a way that is equitable, inclusive, and sustainable,” he adds.
The statement adds that the report explores the 12 months to March 2023, representing a year since travel restrictions started to be removed across India.
