AIRBNB, which offers vacation stays in rented residences as an alternative to resort holidays, says that spending by guests who made bookings on its platform totalled US$16.4 billion in 2021, equivalent to nearly 4.9 per cent of all direct tourism activity in the Latin American and Caribbean region, citing analysis by Oxford Economics .

In a company update issued recently, Airbnb cited World Tourism & Travel Council (WTTC) estimates that nearly US$4.5 trillion in travel and tourism-related gross domestic product (GDP) was lost last year due to the pandemic, affecting more than 61 million jobs.

The company states that economic activity directly stimulated by Airbnb guests has rebounded quickly, helping support the recovery of Latin America and the Caribbean tourism overall, with over 4.3 million more Airbnb guest stays in 2021 than in 2019.

Airbnb guest spending (excluding host earnings) directly supported US$8.9 billion of GDP; 416,000 jobs in Latin America and the Caribbean; and generated US$4.5 billion of wages, salaries and other labour income across a range of sectors, the company states.

During a IV CEO Summit of the Americas panel discussion entitled on ‘Economic Recovery through Tourism’, held recently, Airbnb Global Head of Hosting Catherine Powell shared data from a new Oxford Economics report demonstrating how Airbnb is powering tourism recovery in the region.

She said that guest spending associated with 1,000 Airbnb guest check-ins during a year directly supports 15 jobs in the region, with wages, salaries and other income totalling US$158,000 (excluding host earnings).

Overall, spending by Airbnb guests increased by an estimated US$8.1 billion in 2021, reaching a level more than one third higher than 2019 (41.9 per cent above), even as broader tourism spending in the region was still one-fifth lower than in 2019 (22.7 per cent below).

Powell stated that for each US$10 spent on accommodations, Airbnb guests spend an additional US$45 at other businesses during their trip like restaurants, transportation, and other activities.

Tourism supported 8.5 million jobs and contributed over US$180 billion to GDP across the region in 2021.

The sector is rebuilding from pandemic impacts and Oxford Economics’ forecasts anticipates visitor spending in LAC will approach US$500 billion in 2025 (US$492.6 billion) — over 16 per cent above its pre-pandemic level.

The company notes that hosts on Airbnb keep up to 97 per cent of what they charge for their listing, and unlike many big hotels, hosts keep the money they earn in the community.