Airbnb, domestic tourists a significant pillar of India’s tourism economy, says research

Friday, October 6, 2023

According to new Oxford Economics analysis, Airbnb is a significant pillar of India’s tourism economy, providing more than USD$920 million (INR 72 billion) to GDP and sustaining over 85,000 Indian employment in 2022 alone.

Despite the Covid-19 epidemic and international border restrictions, India’s GDP contribution and job support have more than doubled since 2019.

The research also emphasized the significant multiplier effect that Airbnb tourist spending has on local communities. In 2022, Airbnb visitors in India spent a total of USD$815 million (INR 64 billion) on goods such as transportation, restaurants, retail shops, and retail stores. The amount paid by guests in 2022 was more than twice that of 2019.

Airbnb’s presence in India was strongest in Goa, where guests spent almost USD$190 million (INR 14.8 billion), followed by Bangalore and Delhi, Mumbai, and Manali.

It explains how Airbnb visitors contribute significantly to domestic tourism around the country. Domestic Airbnb visitor expenditure totaled USD$670 million (INR 52.6 billion) in 2022, accounting for around 82 percent of overall Airbnb guest spend in India, nearly tripling from 2019.

The paper also investigates two significant shifts in travel behavior that have occurred since the pandemic: the distribution of tourism away from metropolitan areas and long-term stays caused by the growth of flexible job arrangements.

According to James Lambert, Oxford Economics’ Director of Economic Consulting in Asia, Airbnb has definitely played a big part in the resilience and resuscitation of the Indian travel and tourist business in the aftermath of the Covid-19 outbreak.

“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, Lambert said.

“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.”

Amanpreet Bajaj, Airbnb’s General Manager for India, Southeast Asia, Hong Kong and Taiwan said, “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.”

“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.”

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