The impact of sharing accommodation on the hotel occupancy rate in the kingdom of Swaziland

Abstract

This paper examines the relationship and impact of sharing accommodation on the hotel occupancy rate (HOR) from a developing country perspective. Using panel data on the monthly HOR and the number of Airbnb room occupancy rate for the periods 2012–2016 and 2015–2016, respectively, the study applies a hierarchical regression model to respond to the research questions. The Pearson correlation test reveals a positive relationship between the HOR and Airbnb room occupancy rate, thus indicating that an increase in the hotel room occupancy rate moves in tandem with a rise in the Airbnb room occupancy rate. Further test revealed that increase in the Airbnb room occupancy rate coincided with an increase in the hotel room occupancy rate. In addition, the Airbnb platform was found to appeals to a different tourist market profile than does that of hotels, and that, therefore, the two products may be viewed as non-competitors. Furthermore, inconsistencies in regulatory provisions, in terms of which hotels are required to undergo various legal procedures as opposed to such platforms, are evident. The study recommends that the Swaziland Government should undertake stakeholder consultations aimed at developing regulations to manage and monitor sharing accommodation platform participants that will incorporate its innovative and diverse dimensions. The study is important as it provides insights into tourism destination managers on the impact of the sharing economy from a developing country perspective where empirically based research that could be useful in policy formulation is scant.