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Oxford Economics report highlights Airbnb’s major economic impact on India’s tourism in 2022

India

Airbnb contributed over USD$920 million to India’s GDP and supported 85,000 jobs in 2022, despite the pandemic. The study outlines how guest spending has more than doubled since 2019 and significantly bolstered domestic tourism.

New research from Oxford Economics found Airbnb is an important pillar of India’s tourism industry, contributing over USD$920 million (INR 72 Billion) to the Gross Domestic Product and supporting over 85,000 Indian jobs in 2022* alone. The GDP contribution and jobs supported in India have more than doubled since 2019 despite the COVID-19 outbreak and international border restrictions.

The report also highlighted the powerful multiplier effect Airbnb guest spending has within local communities. In 2022*, Airbnb guests spent a total of USD$815 million (INR 64 billion) in India in areas like purchases on transportation, restaurants, retail stores, and retail stores. The guests spent in 2022* more than doubled the 2019 levels.

In India, Airbnb’s presence was the highest in Goa, where Airbnb guests spending amounted to almost USD$190 million ( INR 14.8 billion), this was followed by Bangalore and Delhi, Mumbai and Manali.

It details the significant contribution made by Airbnb guests to domestic tourism across the nation. In 2022*, domestic Airbnb guest spending totaled USD$670 million (INR 52.6 billion), and accounted for approximately 82% of total Airbnb guest spending in India, around a three-fold increase from 2019.

The report also explores two profound changes in travel behavior since the pandemic: the dispersal of tourism away from urban areas, and long-term stays driven by the emergence of flexible work arrangements.

James Lambert, Director for Economic Consulting in Asia for Oxford Economics said, Airbnb has clearly played a major role in the resilience and rebirth of the Indian travel and tourism sector in the wake of the COVID-19 pandemic.

Airbnb has been at the heart of some of the trends reshaping the nation’s travel and tourism industry, including the shift in travel away from cities and towards more rural communities, and the increase in demand for long-stay trips, exemplified by the life and work anywhere phenomenon, Lambert said.

Domestic travellers have been crucial to the tourism sector’s resilience over the past three years as Indian guests saw opportunities in domestic travel as a substitute for international holidays, with self-drive and regional trips increasing in popularity which led to a wider dispersion of tourism spend outside the traditional or ‘popular’ destinations in India.”

Amanpreet Bajaj, Airbnb’s General Manager for India, Southeast Asia, Hong Kong and Taiwan said, “The economic contribution to both GDP and jobs driven by travel on Airbnb in India has created powerful economic ripple effects that have enabled the growth of local businesses, such as shops, restaurants, bars, and cafes — which are often central to how travellers experience a destination — and created job opportunities for the locals.”

“Travel is now more dispersed, and so the economic benefits are being shared across more destinations, enabling a valuable economic contribution to rural and regional areas. This dispersal is being driven by Hosts on Airbnb and in turn creating economic opportunities for various communities.”

“As destinations across India continue to recover, we are committed to partnering with governments and communities to rebuild their tourism economies in a way that is equitable, inclusive, and sustainable.”, Amanpreet Bajaj continued.

This report explores the twelve months to March 2023 — representing a year since travel restrictions started to be removed across India.

* This report presents results for the twelve-month period up to and including March 2023, referred to as 2022*, which represents the first full year after the reopening of international travel. Prevailing exchange rates at the time of study were applied, using proprietary data from Oxford Economics.

George Diamantopoulos
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George, in his capacity as an intern, diligently oversees the flow of news, assists in the publication of content, and delves into the strategies of social media distribution. He is currently pursuing his studies in Business Administration at the Athens University of Economics and Business.

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