As Airbnb prepares to expand its platform beyond short-term rentals to include services and curated experiences, key stakeholders in Jamaica’s tourism sector have welcomed the move, expressing optimism that it will broaden income opportunities for the island’s bread-and-butter industry.

State minister in the Ministry of Tourism, Delano Seiveright, reacting positively to the development when consulted this week, described it as an opportunity rather than a threat.

“We welcome Airbnb’s planned expansion into experiences and services. It aligns with Jamaica’s ongoing push to deepen the community-based tourism model, where more Jamaicans —from Trench Town to Treasure Beach — can benefit directly from the tourism dollar,” Seiveright told the Jamaica Observer.

“Airbnb has played a vital role in democratising tourism by empowering ordinary citizens to become entrepreneurs, earning from their homes, culture, talents, and unique stories,” he also said.

According to Seiveright, the global platform’s expansion will allow locals to offer tailored experiences, such as food tours, music sessions, and cultural workshops, which will enrich the visitor experience while opening up additional revenue streams.

Acknowledging concerns about Airbnb’s growing local market share — now estimated at about 30 per cent — he believes the expansion will help to spread tourism revenue into previously underserved communities.

“We understand the concerns from some traditional players in the industry and continue to engage them meaningfully. However, we see this evolution more as an opportunity than a threat. Tourism is not a zero-sum game. A more diversified product enriches the destination overall,” he stated.

The state minister further underscored the rise of short-term rentals as being a critical enabler of Jamaica’s continued ability to attract a broader range of visitors, including digital nomads and adventure seekers who might not otherwise choose traditional hotels. In agreement with the need to have greater oversight, he, however, said ongoing regulatory discussions aim to “ensure fairness, safety, quality standards, and data collection — while maintaining the accessibility that makes platforms like Airbnb attractive.”

“The platform’s expansion into services and experiences only underscores the urgency of this effort,” he noted.

Airbnb’s latest expansion marks a significant strategic shift for the company which since its inception in 2007 has largely remained focused on short-term home rentals. It now aims to become a comprehensive travel platform, offering users personalised hospitality experiences and local engagement. The expansion comes amid a softer travel market and tempered revenue projections based on the company’s upcoming second quarter performance.

President of the Jamaica Hotel and Tourist Association (JHTA) Robin Russell, while voicing cautious support for Airbnb’s expansion, also stressed the urgent need for clear and enforceable regulations.

“I welcome the expansion, provided that the necessary regulations, checks, and balances are in place to ensure equity across the industry,” Russell said. “We just want a level playing field — one where all operators listed on the site are legal entities that meet local requirements,” he said during an interview with the Business Observer on Monday.

The JHTA, which has long advocated for greater regulation of the short-term rental sector, continues to argue that the absence of oversight creates an uneven playing field, often to the detriment of smaller, compliant businesses. With Airbnb expanding its scope, Russell agreed with Seiveright that the urgency to regularise the market has increased.

“We can’t wait until everyone jumps on the platform and then try to regulate after,” he warned. “That would be unfair to legal operators, and as such I believe we need to have discussions with Airbnb to understand how they plan to operate in Jamaica and what standards will be applied.”

Russell emphasised that the JHTA’s stance is not about protecting large hotels, but rather ensuring fairness for all players — particularly boutique hotels and villa operators, who are often most affected by unregulated competition.

“My concern is that there are currently no licensing restrictions on what Airbnb is allowed to offer,” Russell said as he noted that, “This opens the door to unlicensed individuals offering services alongside regulated businesses. For example, someone might claim to be a masseuse after having the ability to perform a body rub but without proper certification. That’s a potential danger — not just to tourists, but for the reputation of our industry.”

In relation to these concerns, Airbnb, with its latest expansion, has, however, indicated that service providers will need to undergo the appropriate identity verification and, where applicable, to present the required licences or certifications.

Despite the concerns, Russell, likewise, acknowledged the potential benefits of Airbnb’s expanded offerings. “Some local hotels already offer rooms and services through Airbnb, and the platform’s reach can certainly help them to generate more business. But for smaller operators, the risks may outweigh the benefits. For those larger hotels that have spas and may also want to sell their service on the platform, the difference in prices may further widen unfair advantage.”

Airbnb, as a major player in the global sharing economy earns most of its revenue from service fees charged to guests and hosts. From its humble beginnings hosting two guests, the company now facilitates billions of stays across cities worldwide.

With the roll-out of its redesigned app, Airbnb has introduced a new “Services” tab, featuring 10 categories that allow users to book offerings such as massages, haircuts, catered meals, and fitness sessions. These services will be launched in 260 cities globally.

Additionally, the “Experiences” tab — originally introduced in 2016 — has been revamped with expanded offerings, including live performances, cultural tours, and more. These experiences will be available in approximately 650 cities. Applications are currently open for professionals interested in listing their services or experiences on the platform.

“With this expansion, Airbnb is seeking to become more than a booking platform — it’s moving toward a broader travel ecosystem,” the company said in a statement.

“Seventeen years ago, we changed the way people travel. More than two billion guests later, Airbnb is synonymous with a place to stay,” said Airbnb co-founder and CEO Brian Chesky during the announcement last week. “With the launch of services and experiences, we’re changing travel again. Now, you can Airbnb more than an Airbnb.”

Chesky added, “Until now, our app has really done one thing — helped users book a home. We’ve rebuilt it from the ground up with a new technology stack. Now, we can innovate faster and offer much more than just homes.”

As Jamaica and other tourism-reliant economies continue to evolve, the integration of new service offerings — like Airbnb’s expansion — supports greater diversification and resilience in the sector.

While global economic shifts and policy changes have caused some short-term disruption, the state minister said that the Government remains vigilant and optimistic about the long-term outlook.

“We’re investing heavily in market diversification, tapping into Latin America, the Middle East, and new tourism segments like health and sports,” he said. “That said, we are fully aware of the concerns raised by members of the traditional hotel sector, and we will continue to engage in open discussions to address them,” Seiveright said.

He added, “Our role is to ensure a level playing field while promoting innovation and inclusivity. The continued evolution of the industry demands thoughtful, proactive policy, and that is exactly what we are focused on delivering.”

Airbnb latest expansion marks a significant strategic shift for the company which since its inception in 2007 has largely remained focused on short-term home rentals. It now aims to become a comprehensive travel platform, offering users personalised hospitality experiences and local engagement.