Disruptive Entrepreneurship using Airbnb: The South African Experience.

Abstract

The tourism industry has grown in leaps and bounds in South Africa, since the first democratic elections in 1994. Tourism has not just been developmental, but has gained prominence as the new gold. The mining sector has lost its lustre as the major contributor to the economy of the country. Mining has declined as a core contributor to the gross domestic product, ravaging the economy of many towns and cities in South Africa. The growth trap that South Africa finds itself in, has meant that there must be a sector that can alleviate the structural challenges and promote entrepreneurship. Tourism has sustained growth and this has meant it has been accepted as the panacea for all of the economic challenges of the country. Additionally, tourism has been associated with distributive responsibilities in line with the principles of empowerment, especially for the previously disadvantages groups. The tourism industry has had limited local benefit even in the face of more inbound tourism arrivals because of the skewed ownership patterns that reflect the colonial legacy of the tourism industry of South Africa. Disruptive technology provided by Airbnb has ensured that more cost effective accommodation is provided for destinations in South Africa, which now use underutilized hosting space for loading as Airbnb hosts. This has driven the growth of the tourism industry especially around the Western Cape Province, including Cape Town. This literature review on Airbnb fills a gap in academic scrutiny on disruptive entrepreneurship provided by Airbnb in the tourism economy of South Africa. Disruptive entrepreneurship will have a profound impact on the South African economy, which is struggling with raising entrepreneurship levels, for a country with an abnormally high rate of unemployment leading to poverty.

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