Asia: Half-yearly Airbnb Market Report 2024
"I think APAC probably has the greatest growth potential of any region in the world," said Chesky. ?China was the world's largest tourism spender in 2021, according to UNWTO , yet there are 0 Airbnb listings. The situation isn't much different in South Korea, the world's 9th biggest tourism spender, yet Airbnb is not as common as in Europe or the US. The share of Airbnb is low in APAC markets compared to Europe and the US. This report will look into 40 key short-term rental markets in Asia, which are rising, and which ones we need to look closely at in the next few years.?
Key Summary?
Notes
Dubai reported the biggest growth in supply and demand for Airbnb in 2024
This graph shows the number of available listings in 2024. The blue bars show the listing count in 2023, and the yellow bars show the number of new listings in 2024. The bars are sorted by the growth in available listings in 2024.?
Dubai recorded 46% growth in active listing count, from 12,665 active listings in 2023 to 18,554 in 2024. During the same period, Seoul and Bali marked 30% and 21% growth, respectively.?
Istanbul and Bangkok are rapidly growing as well, with over 10,000 new listings in 2024. Other notable cities that recorded high growth are Hikkaduwa, a surf town in Sri Lanka; Batam, an Indonesian island popular among Singaporean tourists; and Sapa, a mountain town in Vietnam.
The growth was slow in Sunshine Coast in Australia, Kyoto in Japan, Sokcho in South Korea, Queenstown in New Zealand, and Penang and Cameron Highlands in Malaysia. What's common is that these are already known tourist destinations with a high percentage of domestic tourists.?
Ho Chi Minh City has the biggest potential to be the next highest growth for short-term rental supply and demand.??
Airbnb penetration rate is a percentage of Airbnb stays compared to traditional short-term accommodation stays, such as hotels and resorts. The ones with green dots on the right side of the graphs have a relatively higher Airbnb penetration rate. The Y-axis and the size of a dot show the market's current size. The ones on the lower half are the ones that have a high number of available listings in 2024.?
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We excluded the markets that have a high penetration rate, which are?
In 2023, Ho Chi Minh City (HCMC) welcomed 5 million international and 35 million domestic travelers, whereas Dubai marked 17.15 million international and 1.5 million domestic travelers [source1 source2 ]. Despite the fact that HCMC has double the amount of visitors, it has only half the amount of short-term rentals compared to Dubai. This is why we believe HCMC has a good potential for Airbnb. HCMC indeed has more visitors from China, Korea, and Japan, where Airbnb's penetration rate is low. Still, Airbnb showed the track of growth in these countries in the past 3 years, so it is matter of time for HCMC's Airbnb scene to boom.
Malaysian and Vietnamese cities, Malaka, Penang, Da Nang, and Sa Pa, have good potential for growth in the next five years. These cities have a growing number of visitors from other Asian countries but with a relatively low number of Airbnb supply. These are the cities where tourism is a significant portion of their economy. Will property prices increase as Airbnb gains popularity? Leave your comments!?
Thailand cities have the highest occupancy rate growth: Pattaya, Bangkok, and Phuket.????
This chart shows the changes in occupancy rates and available listings. The cities at the top right in the chart recorded growth in supply and demand. It's mainly Thailand cities. Their supply grew, but their demand for Airbnb even grew faster. The cities at the top left side are the ones with little change in new listings but small growth in demand. The cities at the bottom right side recorded high growth in new listings but the demand didn't catch up, resulting in lower average occupancy rate. You can click the link below to access the interactive chart on Tableau.?
Final thoughts?
Airbnb's growth is happening in Asia, and the potential is indeed high. We are also experiencing growth in new users from Asian countries. Asia is fragmented and is known to be a difficult market for a US-based company to enter. Still, there is no good alternative for vacation rental owners! I'm excited to see the growth and trends.?
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