Airbnb in Sri Lanka
Background
Digital disruptors like Airbnb in sharing economy domain have expanded globally and reshaped the tourism and hospitality industry. It has been found that around 50% of tourists visiting Sri Lanka choose informal tourist accommodations over traditional tourist accommodations (Miththapala and Tam, 2017), and these establishments have gained massive popularity due to the rise of sharing accommodation platforms like Airbnb (Ellepola, 2017). In addition, the gradual increase in room rates and hotel prices with the sudden boom in tourism due to the end of the civil war has contributed to the rise in demand for supplementary and informal tourist accommodations (Ellepola, 2017). This change is further strengthened by the evolving tourist preference for independent travelling in search of authentic local experiences instead of packaged holidays (Paulauskaite et al., 2017).
Previous studies indicated that informal tourist accommodations driven by online booking platforms increase the cost of living and diminish local residents’ quality of life (Lee, 2016; Nieuwland and van Melik, 2020). Furthermore, there are public health concerns, including congestion and hygienic concerns in residential areas, due to the industry's lack of control and regulation (Lee, 2016; Nieuwland and van Melik, 2020).
Likewise, in Sri Lanka, the most significant threat to the country posed by informal accommodation is its lack of conformity to taxation and hospitality standards (Daily Mirror, 2015). In contrast, it has been argued that these establishments are advantageous for tourists, local businesses, and local governments (Zervas, Proserpio and Byers, 2017; Hamilton and Zaiac, 2018; Nieuwland and van Melik, 2020) and homeowners can earn extra money using these platforms (Gottlieb, 2013; Farronato and Fradkin, 2018).
While local and state governments recognise the economic impact that tourism makes (Grimmer, Massey and Vorobjovas-Pinta, 2018), these online booking platforms are being increasingly targeted for regulation and resulted in many legislative skirmishes over attempts to limit that development (Moylan, 2016). Policymakers are thus encouraged to strike a compromise between regulatory frameworks to safeguard local communities and those that are intended to capitalise on the value offered by these platforms. Therefore a fascinating topic for scholars and the most difficult question for policymakers is how to regulate these peer-to-peer accommodations to minimise negative consequences while maintaining economic benefits (Dolnicar, 2019).
Amidst these findings, it was observed that no study to date had examined the landscape, drivers, barriers and regulation of these rising informal or peer-to-peer accommodations in Sri Lanka. This has resulted in an urgent need and significant research gap that led to this study.
Purpose
Accordingly, this study explored the landscape, drivers and barriers of informal tourist accommodations driven by sharing accommodation platforms to devise appropriate policy responses in regulating these peer-to-peer tourist accommodations in Sri Lanka.
Findings
The study's findings have been presented at two international conferences and published in several indexed journals. Furthermore, the researcher developed two interactive applications: an Interactive Dashboard and a Web GIS Platform. These resources can be accessed using the tabs below.
Research Team
Mr. Lasika Madhawa Munasinghe
Mr. Terans Gunawardhana
Prof. Nishani Wickramaarachchi
Snr. Prof. (Chair) R.G. Ariyawansa
Acknowledgement
This study was supported by the Research Grant awarded by the University of Sri Jayewardenepura (ASP/RE/MGT/01/2018/48) and the Center for Real Estate Studies (CRES), University of Sri Jayewardenepura.
Contact
