Sharing Economy and
the impact on tourism industry
“case of Egypt”.
By: Mazen Abdunabi
Current Issues in Management
BUSINESS ADMINISTRATION PROGRAM
Economy “peer-to-peer platforms” as a new
business model explain the phenomena of sharing and exchange unused goods and
services between one individual and another , allowing one part getting access
and use of it whether free or agreed value. Under this new model it is not
clear how this will affect the traditional tourism industry especially the
relation between the tourists and visited cities locals. And therefore a lot of
new companies as a model of sharing economy start acting in the tourism
industry especially in the transporting, arranging rips, and accommodation service.
This study will investigate and understand
the affect sharing economy might cause to the traditional Egyptian tourism
market. And the importance of this study comes because sharing economy still at
first stages and not much research in the effects it might cause done so far
and. In this study we will try to
introduce sharing economy as a new way of doing tourism services in the
Egyptian market, explaining the challenges it will cause to the tourism
companies from one side and the tourism as all .
A secondary data from a case of study
conducted in this field will be used, these data collected through surveying a
sample of 50 Egyptian tourism
specialists from different sectors in the year 2017.
Sharing economy explains the phenomena of
sharing and exchanging goods and services between one and another, and it is
expected to change the role of tourists and there local guides (Cheng 2016). It
has been considered that tourism industry is one of the most supportive sectors
to invention ideas, therefore sharing economy find it the best place for its
growing, (Airbnb, Uber) are the common
features for its rapid emerge.
Sharing economy in details, is that
economic pattern where people use computer networks and technologies to, rent,
loan, exchange, and share personal goods, services, and experiences. And this model
start affecting peoples life activities due to the remarkable fast development
of technology, social networks, and mobile phones. And these are some terms
related and sometimes used to refer to it ” Collaborative
Consumption”, ” Albinsson
and B2P Trade”, ” Peer-to-Peer/ P2P Trade” (Ivanova, 2015).
The relation between sharing economy and
tourism industry is very complicated and interacted, and there are
characteristic development will affect tourism in the next 25 coming years due
to the huge amount of touristic information provided by social networks and
computer technologies. sharing economy noticing a rapid growth, and it is
expected to reach 335 billion in year 2025 (Queensland
Tourism Industry Council, 2014).
In this context, the development of tourism industry changing according to the tourist preferences and behaviors, they become more aware of other tourists experiences and they use computer technologies to plane and buy the service since that Believed to decrease cost and increase touristic value. From the other side there are factors limiting the growth of this sharing economy such as security, safety issues, and limited demand by some touristic bundles such as old people.
Examples of some sharing economy models:
exchange personal experiments in travel and ourism.
touristic trip arrangement.
exchange transport services for short trip.
exchange transport services for long trip.
tourism and traditional cooking.
exchange food and drinks.
traveling and short time renting.
accommodation for vacations.
As sharing economy still in its first
stages the government respond to it still not clear and differs from one country
to another, as some car manufacturers in Germany, Calgary Canada, and
Massachusetts USA made some role to limit the use of ” Uber”. Some
other governments like in Amsterdam
support the growth calling itself Sharing city, putting some lows to help companies like “Airbnb” (Cheng, 2016).
impact of sharing economy on the tourism industry ”Egypt” :
The impact of Sharing economy different
from one country to another, have
negative and positive effects. positive side of sharing economy considered to
be allowing tourists to reach a wide range of new products and serves with
decent price, and causes job creation for local touristic guides and services (Cheng, 2016).
Sharing economy playing a complementary role with the traditional tourism industry,
as an example countryside resorts that is not easy to reach by traditional
means (Juul, 2017) . From
the negative side, the rapid growth of sharing economy creates more unsecure
temporary jobs, many companies will use
it to compete traditional companies and might be used to avoid
legal and tax commitment
(Cheng, 2016) . another issues must be considered such as:” secure
electronic payment, personal security, and health conditions”.
According to the International Tourism
Organization in the year 2016, the number of tourists visited Egypt are 9.139
millions, in decrease of 5% from the previous year with sector national income
of 6.065 billion
Examples of sharing economy companies start
acting on the Egyptian tourism industry :
1. Transporting services and activities are the
most common use of sharing economy in Egypt, and Uber the company has built in 2009 are the most
popular one. This company is an electronic platform contain a group of
applications that allow users to get access to private cars providing
transporting services. This company acting in 45 countries and Egypt is one of
them (American University in Cairo,
trip arrangements and activities become one of sharing economy use in Egypt. Peek, Touristlink, and Vayable are some of the companies now acting in the
market, allowing local Egyptian people to put untraditional personal touristic experiences, guides, and
services information on the application so they start provide new type of
this study a secondary data will be used from a case of study was conducted in
this field by the researchers “Doa Hamza, and Germen Hosein” in February 2017 under the name of ”
Sharing economy and its impact on Egyptian tourism industry”.
data has been collected by surveying 50 Egyptian tourism specialist from both
privet and public sectors, 37
questionnaires fully completed with 74% of the sample.
1Sample represents :
Sample represents : no. percent%
academics 4 participants 10%
business managers 8 participants 21%
work industry 3 participants 8%
data will be used to represent the idea of sharing economy and from these data
we will try to evaluate the impact of
sharing economy on the Egyptian tourism industry, and how it might affect the local
and weak factors sharing economy provides to the Egyptian tourism industry:
sharing economy opens a new direction on the tourism industry, trying to
explore new touristic resources through subjective internet advertisement. 83%
of the sample think this new model of business in Egypt provide a new touristic
choice deep in the local culture to the touristic lovers.
another strong factor sharing economy give to the industry 48.6% of the
specialists think it provide anew financial resources to the service providers,
and it can solve some of the national unemployment. While 35% of them believe
that sharing economy allow the industry to get access to unused touristic
resources, and this will improve the national economy.
weak points of sharing economy over the Egyptian industry might be unfair
competition these companies will have comparing to traditional companies. 83%
of the sample think there is no roles to control and guarantee the quality of
the service these companies will provide. While 27% of the specialists think
sharing economy providers might not commit to their financial and legal
current impact of sharing economy on the egyption tourism industry:
the data we are trying to analyze 75% of the sample think transport sharing
economy providers like Uber can succeed, where 64% of them agreed trip
organizers like Vayable will be succeed in the market.
the industry improvement side 35.1% of the specialists said it is improving the
market, while 54.1% of them think sharing economy will improve the industry in
the data collected 16.2%of the sample said sharing economy will affect
negatively on the local Egyptian companies, 56% think it will affect on them to
some extent, while 27% of the respondents said it will not affect the local
companies since it will target new business segments.
more details, 37% of the questioned sample said transporting provieders like
Uber hase no effects on the traditional tourism companies, while 55% of the
sample think touristic trip organizers will have negative effect on them.
accommodation sector 32% of the sample think sharing economy has no effect in
the local companies since it will not affect the traditional reservations on hotels.
new models of services by sharing economy
like EatWith will have no impact on the local
companies 60% of the sample said, while 20% of the them said it will have
positive impact on them.
Sharing economy play an important role in
changing touristic behavior, affecting
their choices and the way they make their vacations. All this will have impact
on the traditional tourism industry in Egypt .
In respond to sharing economy Egyptian government must acknowledge and
support its activities’, while it seems still suspend and do not agree so far.
rapid growth of sharing economy provide Egyptian government with a chance to
rethink about the tourists interests and behaviors which has been changing
according to the new services and activities the model provide.
Sharing economy play a complementary role
to the traditional tourism industry. as in beak seasons where no space for
extra tourists, even more it can be a good strategy for countryside resorts
Some activities of this new model
allowing tourists to reach a wide range of new touristic products and
activities with decent price, and cause a real interactions with local
From the negative side, the rapid growth
of sharing economy creates more unsecure temporary jobs, and many companies might use it to avoid
legal and tax commitments.
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