Malaysia and Airbnb ‘a match made in heaven’, boost for tourism

COLLECTIVELY, Airbnb hosts in Malaysia earned US$48.1 million last year, more than double the US$23.3 million they earned in 2016. And that is just 97% of receipts (3% is kept by Airbnb).

Robin Kwok, Airbnb country manager for Southeast Asia, Hong Kong and Taiwan, says the home-sharing platform is not out to steal business from hotels, many might see that as the “official spin” to placate hoteliers and owners of the businesses the technology platform has disrupted.

“We believe that for us to win, no one has to lose. There have been more than 260 million guest arrivals at Airbnb listings worldwide since it was founded in 2008, and even as more people share their homes, traditional hotels around the world continue to make robust profits. Home-sharing helps more people travel, meet new people and experience different cultures, and that should be good news for everyone,” Kwok says.

Travel and tourism today account for 10% of global gross domestic product and 1 in 10 jobs, and Malaysia is no exception. In 2016, Airbnb supported an estimated 4,300 jobs in Kuala Lumpur and injected US$150 million into the local economy through host earnings and guest spending. While travel to advanced economies is projected to grow 2.2% per year, travel to emerging economies, such as Malaysia, is projected to grow even faster at 4.4%.

With 1.5 million guest arrivals in Malaysia, growing at an average rate of 139% year on year, Airbnb has generated an incredible RM200.4 million (US$50.2 million) for the Malaysian economy in the last year alone. More people are becoming Airbnb hosts and most of the money earned is being injected into local communities, bringing benefits to ordinary people all over the country

Sure, there are probably many price-sensitive tourists who book Airbnb to save money, but users also include multi-millionaire celebrities like Lady Gaga (US$280 million net worth), Britney Spears (US$215 million net worth) and Shah Rukh Khan (US$38 million), who each stayed at different luxury vacation homes available via the platform. And it is not just about the castles or six-room mansions with private pools — among Airbnb’s most wish-listed homes in Southeast Asia is a treehouse by Taal Lake in Balete in the Philippines, according to its website. Airbnb also caters to those who want to live like locals or want to stay in a haunted house.

In Malaysia, unique favourites among Airbnb travellers include Malay kampung houses “on stilts” in Kampung Baru, Kuala Lumpur,

Jonker Street in Melaka and Yong Yi Yuen,

a 100-year-old pre-war heritage house in the middle of George Town, Penang

According to Kwok, there are about 300 listings within Kampung Baru and Airbnb estimates an economic impact of about US$7 million there last year — US$1 million in host earnings and US$6 million in guest spending. “By being part of the fabric of their local communities, they drive increased footfall and tourist spending to local neighbourhoods, meaning the vast bulk of the money generated by the platform stays within the community.

We are seeing incredible growth in Southeast Asia and Malaysia is a huge driver of that growth. That is no surprise when you consider the incredible variety of traditions and cultures available to explore, and the hospitality deeply ingrained in Malaysian society. All of this makes Malaysia and Airbnb a match made in heaven

As more and more people — especially young people — look to travel in new, unique and more authentic ways, we anticipate that Airbnb will continue to grow here, as travellers seek to experience the true magic of Malaysia,” she says, adding that her company is all set to promote the country to the world.

“While the average night stay decreased slightly last year, Malaysia saw an incredible 139% year-on-year growth in guest arrivals overall, with 1.5 million curious travellers using Airbnb to experience Malaysia through a local’s eyes.

That shows us that the appetite for a new and authentic kind of travel is greater than ever, and that people all over the world want to see the true character and beauty of Malaysia, away from the traditional hotel districts and cookie-cutter tourist trails,” she says. “While there are multiple factors that can impact average host earnings, including an increase in the supply of listings, what we are particularly proud of is the fact that Airbnb is enabling hosts to earn vital supplementary income that helps them pay the bills.”