New Delhi: Airbnb contributed over US$320 million (INR 22 billion) to India’s Gross Domestic Product and supported close to 50,000 local jobs in 2019 alone, according to the Oxford Economics’ The Economic Impact of Airbnb in India report released today.
The landmark report explores the total economic impact of Airbnb in India between 2015 and 2019. The report found that between 2015 and 2019 Airbnb guest spending grew at an annualized rate of 83.4% and Airbnb’s contribution to the Indian economy grew more than tenfold in real terms.
Importantly, the report also highlighted how Airbnb is spreading the benefits of tourism to local communities and supporting micro-entrepreneurship and small businesses. In 2019 alone Airbnb guests spent more than USD $249 million (INR 18 billion) in India, including more than USD $94.3 million (INR 7 billion) in local shops and restaurants. 6500 Rs out of every 10,000 Rs spent outside accommodation by Airbnb guests in India went on shopping or food.
Ashish Kumar, Co-Chairman of FICCI Travel Technology Committee, said “Travel and tourism is not only one of India’s highest foreign exchange earners, but also one of the largest employment generators in the country. We are in an ever-changing situation due to the COVID-19 pandemic, which is reorienting and re-defining our relationship with the outside world, resulting in a new definition of social togetherness. This report mirrors and reflects that travel has progressively resonated with more consumers each year, as well as benefiting the local economies & communities. Tourism spends have continued to go up in the past few years, and understanding this pattern is the key to maintaining business interest, driving business transformation, innovating with continued investment in this sector, especially during the current critical times of recovery. Airbnb’s model is primed for supporting recovery through the mode of enabling communities.”
James Lambert, Oxford Economics’ Director of Economic Consulting in Asia, said: “Airbnb is well-placed to play an important role in bringing tourists, and their spending, back to destination economies, and in supporting the earlier recovery of domestic travel by helping households, particularly those who seek to substitute an international trip with a domestic one, discover new areas in their own country to visit.”
Amanpreet Bajaj, General Manager – Airbnb India, Southeast Asia, Hong Kong and Taiwan, said “The recovery of tourism and the recovery of the Indian economy are inextricably linked. The report shows how the authentic, affordable, and sustainable travel experiences offered by Airbnb can help accelerate recovery and create value for local micro entrepreneurs, businesses and local communities. Looking forward, we want to continue to work closely with local governments to grow high-quality, sustainable tourism, support micro entrepreneurship and help communities recover as quickly as possible. Our focus will continue to be to drive unique connections between our hosts and travel communities across segments.”
The economic activity supported by Airbnb’s presence in India sustained 49,900 jobs in 2019.
This employment footprint has grown rapidly in recent years, with an average increase of 75% pe year since 2015. Furthermore, these jobs paid a total of USD 58 million in wages and salaries to their employees. The distribution of Airbnb’s employment impact across different sectors of the Indian economy reflects the broad range of industries that were engaged in sustaining Airbnb’s tourism activity.
The sector with the most jobs supported by Airbnb was the agriculture, forestry and fishing sector. Around 17,500 workers were engaged in this sector to sustain Airbnb guests’ consumption of food and beverages, plus the additional consumption induced in the wider labour market, derived from the earnings of hosts and other employees supported by Airbnb’s economic footprint. Sectors more directly related to tourism activity were also big job beneficiaries from Airbnb; 10,200 jobs were supported in the transportation and storage sector, and a further 5,500 in restaurants and accommodation. An additional 5,200 jobs were sustained in the distribution sectors and 4,100 in providing arts, entertainment and recreation services.
Other Highlights:
- New report from Oxford Economics shows the important role Airbnb can play in supporting India’s tourism recovery
- In 2019 Airbnb contributed over USD $320 million (INR 22 billion) to India’s Gross Domestic Product and supported close to 50,000 local jobs
- Airbnb guests spent more than USD $249 million (INR 18 billion) in India in 2019
- 6500 Rs out of every 10,000 Rs spent outside accommodation by Airbnb guests in India went on shopping or food
- Around 83% of the guests staying in Airbnb’s India listings in 2019 were domestic visitors, 34% higher than 2015
