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New tourism trend hits Adelaide

Oct 28, 2013
US actress Molly Sims at the US launch of Airbnb

US actress Molly Sims at the US launch of Airbnb

Adelaide’s empty-nesters are joining the boom in the online private accommodation tourism market.

It’s been just over a year since online marketplace Airbnb started operating in Australia, and already it has generated $214 million in economic activity in Sydney alone, an independent report shows.

Economic forecaster BIS Shrapnel’s review of Airbnb shows it processed 30,480 guests.

Airbnb is an online marketplace that connects people who have a spare room or empty house with those seeking a place to stay.

One of the surprising things to come out of the study was that tourists who used Airbnb were far from cheap students unable to afford the standard hotel rate –  a trend reflected in Adelaide where the idea has started to take hold.

Instead, people who used Airbnb, tended to be affluent, with 77 per cent holding a university qualification and 75 per cent coming from another country.

They weren’t young either. The average age of Airbnb users was 42, and 42% were visiting Sydney for the first time.

Adelaide home owner Gosia Hill told InDaily the Airbnb experience has been about more than money.

“I was referred to it by a friend in Melbourne, just by chance,” the former diplomat said.

“The kids had left home and we had two rooms to spare; often the space just goes to waste.

“Our experience has been interesting.”

Gosia and her husband posted their details on Airbnb in April.

“I had too many queries initially, so we’ve been able to be a bit choosy,” she said.

“The income is handy but more importantly we’re enjoying the experience.

“The system itself is very sophisticated, but you also have to use your intuition.

“Since April we’ve had about 12 couples or singles stay and all of them have been very good. We’ve actually made some good friends.”

Gosia’s experience mirrors the findings of the BIS Shrapnel study.

“The stays vary from 3-4 days to a week.

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“Some are here for business, but mostly it’s for family events such as weddings or funerals.

“Others are tourists just passing through.

“We had one family from overseas come here to see if Adelaide was suitable for their children to come and study at university.

“Around the world, the whole sharing economy is on the rise.”

The BIS Shrapnel study of the Sydney market found one of the effects of Airbnb’s growth has been a large tourist spend outside the areas where it’s traditionally goes.

Four in five stayed outside the local tourist areas, and 98 per cent of hosts suggested their guests visit local cafes, restaurants, bars and shops.

“Airbnb is helping more people see Sydney in a whole new light, by visiting new suburbs they may have never seen before,” Airbnb Asia-Pacific Regional Director Ole Ruch said.

This is driving the tourist dollar to places it doesn’t traditionally go, an effect that’s strengthened by the high spend of the average Airbnb user.

According to BIS Shrapnel, Airbnb guests spend, on average, $1822 over the course of their trip, compared to the average tourist spend of $1071.

The major winners from Airbnb, apart from the hosts, were cafes, restaurants and bars, BIS Shrapnel economist Kurt Lemke said.

“Almost 30 per cent of every dollar spent went towards those sorts of businesses.

“Following that, retail was the second largest winner – gaining a quarter of the total spend.”

Overall, the percentage of visitors to Sydney using Airbnb was very, very small. But comparing to other major cities that have had Airbnb for a number of years, such as Paris, the economic impact was far larger.

“The economic impact of Airbnb in Paris was ten-fold that of Sydney, and Sydney’s twice the size of Paris,” Lemke said. “We’re operating from a very low base here. There’s still a lot of room to grow.”

Adelaide has clearly joined the trend with more than 60 properties listed when InDaily first inquired.

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