Examining The Impact Of Sharing Accommodation On Hotel Occupancy Rate In The Kingdom Of Swaziland.

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.