Examining the impact of sharing accommodation on hotel occupancy rate in the Kingdom of Swaziland

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Date
2018
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University of Namibia
Abstract
This dissertation examines the relationship entailed in, and the impact of, sharing accommodation on the hotel occupancy rate in the Kingdom of Swaziland. The entrance of sharing accommodation platforms onto the hospitality marketplace has been characterised by concerns of potential declines in demand for hotel rooms and discrepancies in hotel regulatory controls. Despite considerable research having already been undertaken in this area in the developed countries, a gap remains in the literature regarding the impact of the phenomenon on hotel performance in the Kingdom of Swaziland. Using panel data on the hotel monthly occupancy rate and on the number of Airbnb listings for the periods 2012 to 2016 and 2015 to 2016, respectively, the study applies a hierarchical regression model to respond to the research questions asked. The Pearson Correlation test reveals a strong positive relationship between hotel occupancy rate and Airbnb listings, thus indicating that an increase in the hotel occupancy rate moves along with a rise in the number of Airbnb listings in Swaziland. The results of the F-test show a p-value less than the significance level of 0.05, thus leading to the drawing of the conclusion that the null hypothesis should be rejected. These findings suggest that the Airbnb platform in Swaziland appeals to a different tourist market profile than do hotels, so that the two products might be viewed as non-competitors. However, qualitative findings confirm the existence of inconsistencies in the regulatory provisions in terms of which hotels are required to abide by various legal dictates. The study recommends that the Swaziland Government should undertake stakeholder consultations aimed at developing regulations to manage and monitor sharing accommodation platform participants that will incorporate their innovative and diverse dimensions.
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Occupancy rate
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