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COMMENT An Eye on West Africa Trevor Ward MD: W Hospitality Group There is no doubt that the arrival of so-called disruptive business models like Uber and Airbnb has generated more heated discussions on government regulation, ethics and the limits of free enterprise than any business model in history. Not surprising, as these business models question the very foundations of commerce as we have always experienced it. Well… as we have always experienced it… that’s probably a very subjective statement given that we evolved from trading by barter to the use of standardised, universallyaccepted currency, a change which must have been quite disruptive in its days. So what exactly is disruptive about renting an apartment in Arequito, Bansko or Calapan, anyway? I’ll wager my $10 that you’d be hard pressed even to find these cities on a map. But that’s the point. From a consumer’s perspective, perhaps a disruptive business model is what is needed to find flexible, convenient and affordable accommodation in a little corner of the world. That’s the whole idea. Airbnb, quite simply, is a means for homeowners to connect with bargain seekers for short stay accommodation. The statistics bear witness to the fact that more and more people are buying into the idea. Airbnb currently operates in 191 countries (heck, there are only 196) with in excess of 200 million users to date. That’s roughly the population of Brazil! And where does Africa feature in all of this? There are an estimated 77,000 property listings in Africa, according to Airbnb CEO Brian Chesky. With around 17 countries in Africa operating on the Airbnb platform, South Africa is by far the largest market, where the concept has had a presence since 2015. Today the list of African locations includes a host of cities in Kenya, Morocco, Nigeria, Ghana, Mozambique, Namibia, Rwanda…and yes, even Somalia. Talk about expanding a global brand into the unknown – as many people refer to business in Africa. If South Africa is the key player, what do the numbers say about the West African region? Well, there are an estimated 2,600 properties listed in the sub-region, with new ones added on a daily basis. When you look at W Hospitality Group’s 2017 dataset of rooms in the hotel chain development pipeline in West Africa, it stands at a little over 20,000. Working the maths, that means that the since the launch of Airbnb on the continent in 2015, the platform has grown to be over 10% of the planned hotel rooms. If the number of listings continues to rise as is predicted, then in the next two years Airbnb could be a significant competitor for the traditional hotel sector. There are questions about how sustainable this model is, but also several reasons why Airbnb will continue to work in Africa. The opportunity for homeowners, up-and-coming entrepreneurs, to share easily in the economic benefits of a global brand by offering their apartments is one, bringing income direct to the individual. Nigeria, for instance, has one of the youngest techsavvy demographics in the world, and can readily take advantage of an online business platform such as Airbnb. Secondly, adventure seekers can have a real feel of what life is like in Africa at the grass roots, living ‘just like the locals’. And not every city has a hotel that appeals to the international traveller, so with Airbnb visitors have access to secure and trusted accommodation almost wherever they choose to travel. Nicola D’Elia, Airbnb’s Regional Manager for Africa and Middle East comments: "We want to bring tourists to parts of the continent that aren't covered by traditional accommodations — only places where you could stay in other people's homes". The highly successful model of sharing one’s personal space with virtual strangers can raise issues, at least in more developed countries. In an age when terror attacks are frequent, communities which now find themselves hosting strangers, who have no ties nor accountability to those communities, express concerns relating to the safety and security of their permanent residents. This is, of course, not only an African issue – the Department of Business Affairs and Consumer Protection in Chicago recently announced plans to register Airbnb hosts, with penalties for non-compliance. Opposition from governments has been rising over the years, as the number of Airbnb listings increases. Evidence of this was clearly shown recently with new legislation passed in New York protecting local housing, a move which is set to redefine the very business model on which Airbnb is built. The main reason for the Nee York law was the misuse of Airbnb by commercial landlords, and the loss of badly-needed residential space in the city centre. Such regulation has been seen in other cities such as Berlin and even San Francisco, the home of Airbnb. And the hotel sector complains about the entry into the market of accommodation providers who are not regulated, encounter very few barriers to entry, and are largely untaxed. Whilst Airbnb claims to be increasing its penetration of the corporate market, its real role in Africa is to expand the reach of product available to the leisure market. Sadly, many traditional hotels which are ‘off the beaten track’ in West Africa are sometimes unappealing even to the hardy backpacker, and the home stay, with an endorsement from Airbnb, has the potential to readily fill that gap, without the capital investment required to build a new hotel. C www.w-hospitalitygroup.com 16 | SEPTEMBER2017 Visit businesstravellerafrica.co.za
COMMENT Does South Africa need its own ‘travel warnings’? The recent release of Stephen McGowan has prompted security experts to call upon the government to do more to warn South Africans about the dangers when travelling abroad. Terrorism expert Jasmine Opperman told Business Day she believes the government should be issuing travel warnings and advisories to South Africans travelling to countries such as Mali and Somalia. Ryan Cummings‚ Director at Signal Risk‚ agreed with Opperman‚ saying the South African government should be providing information to citizens about "where it is safe to travel and where it isn’t". However, the Department of International Relations and Co-operation (Dirco) says South Africa doesn’t have a policy to issue travel warnings to fellow African countries. Although the government might not have a policy in place to issue travel warnings, travel consultants and TMCs associated with the Association of Southern African Travel Agents have a duty to divulge information about ‘dangerous’ destinations as well as unusual threats to their clients. Your peace of mind when travelling is a top priority for any ASATAaccredited travel consultant. That is why they will make sure they disclose any red flags or warnings about a destination, including terror threats and tropical diseases. Business travel has grown significantly over the last decade with businesses sending employees to a wider range of territories including high risk or extreme risk regions. In these cases, your travel consultant will be able to update you on the latest security measures and highlight risks. However, the truth is that today even the most low-risk destinations can become high-risk in a matter of just a couple of hours. When disaster strikes in what is considered a ‘low risk’ destination, it is a huge relief for the traveller to know that their ASATA travel consultant is available to assist with advice and solutions. The modern 21st century travel agent has the right expertise and will endeavour to resolve travel issues if they arise, including making alternative travel arrangements, or at least provide the traveller with useful information to manage travel issues and reduce the travellers’ levels of uncertainty and feelings of helplessness. So, although travel warnings are invaluable for business travellers, what’s more important still, is to have a true travel professional at their side at all times. C Otto de Vries ASATA CEO Walkersons Hotel & Spa has captivated visitors to Dullstroom for more than twenty years – the stunning views, the wellstocked trout dams, the spa, accommodation with all the modern comforts and fine country dining, make Walkersons a charming and memorable destination. This haven of serenity in Mpumalanga, with elegant dining rooms, a gorgeous terrace, the cosy Peggy’s Bar and lovely lawns leading to the hidden swimming pool and a stylish, old world country atmosphere, has the perfect balance of proximity and distance (both Johannesburg and Pretoria being three hours away), making it an ideal location to hold a conference. The hotel has two dedicated conference venues available for use, with the Walker Room able to accommodate a capacity of up to 100 delegates. Alternatively, retreat to the seclusion of the Tapestry Room for a more private and exclusive meeting. Day and overnight special packages are available. Tel: 013 253 7000 • Email: reservations@walkersons.co.za • Web: www.walkersons.co.za Visit businesstravellerafrica.co.za SEPTEMBER2017 | 17
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