Teaching South Africans How to Become Successful Hosts on Airbnb: The Case of the Airbnb Africa Academy

Situational Analysis: South Africa

The major structural challenges facing South Africa are poverty, unemployment and inequality. ‘’South Africa faces persistent challenges of inequality, unemployment and poverty. These challenges have overtime been worsened by sustained low levels of investment and growth’’ The Presidency (2021:3). The labour instability in South Africa, characterised by high wages, violent strikes and antagonistic labour-employer relationships has further stifled investments into South Africa. The high rate of crime in South Africa can be regarded as an additional tax, as companies have to allocate additional resources into safety and security, instead of investing in the economy. World Bank (2018) noted young people are particularly affected by unemployment and the youth unemployment rate in the last quarter of 2017 was 51.1 percent – down from 52.2 percent in the previous quarter. The high unemployment rate experienced by South Africa does not bode well because of the demographic dividend, where the vast majority of citizens are young people. This happens when the labour absorption potential of the South African economy is at its lowest, meaning that the unemployment will be a reality for many South African youth. South Africa has a skill deficiency that is stifling the growth of the economy. The World Bank (2018) noted that the legacy of “Bantu education” continues to deprive South Africa of the skills it urgently needs, resulting in low competitiveness, high unemployment, and wage inequality. Improving access to quality education for all in South Africa is critical, however, the schooling system produces poor educational outcomes.