The growth is powered by travellers seeking more local and authentic experiences

by LYDIA NATHAN/ pic by RAZAK GHAZALI

THE home-sharing platform Airbnb registers 73% year-on-year (YoY) jump to 3.25 million guests last year, generating RM3 billion in estimated direct economic impact on the local economy.

Its GM for South-East Asia, Hong Kong, and Taiwan Mike Orgill said Malaysia remains the fastest growing country for Airbnb businesses with over 53,000 listings.

Orgill said the growth was due to tourism powered by travellers that have been seeking more local, unique and authentic experiences.

“In 2018, guest arrivals visiting ‘off-the-beaten-path’ destinations in Malaysia grew by 98% YoY while we saw some areas experience very fast growth.

“For example, both Sibu and Semporna saw a 290% growth, Alor Setar came in second with a 214% growth and Tanjung Tokong at 177%.

“It has generated more economic opportunities for local businesses and communities all across Malaysia. We want to provide experiences that are not conformed to the typical touristy hotspots but instead give people a chance to get a feel of the real Malaysia,” Orgill said.

In the platform’s recent survey, more than half of 2,000 Malaysian hosts and guests said Airbnb has helped the local economy.

“The survey also showed 85% of hosts recommended local restaurants and cafes to guests, while 70% of guests said exploring specific neighbourhoods matter in the decision to use Airbnb,” Orgill said.

According to Orgill, the different products offered on its platform include Airbnb Home Business, Airbnb Experiences, Airbnb Transportation, Airbnb Luxe, Airbnb Plus, and Airbnb Adventure.

He said while most are offered in Malaysia, Airbnb Luxe and transportation are something the platform is still working on.

“We’ve demonstrated ‘the where to stay’ and we are working very hard on ‘the what to do’s’, so now we are looking at the transportation side of it. It’s still at its infancy stage but we are talking to various transportation carriers to fully understand the ecosystem,” he said.

Meanwhile, Orgill said the platform is still in discussion with the relevant government bodies for the regulation of its framework.

He said registration for its hosts needs to be online, simple and easy to understand.

He agreed that all listings must be registered.

“The taxes should apply across the board, whether it is a listing or a five-star hotel. The way it is designed right now, it only applies to some, but we want it to be a level playing space.

“We are excited to be working with the government and the Ministry of Tourism, Arts and Culture to explore what the process may look like,” he said.

For now, he said, listings that go above a certain threshold would have to pay tax but the taxation framework will provide clearer guideline for both hosts and guests.