The Influence of Uber on the Tourism Industry in Sub-Saharan Africa

Abstract

An unreliable and inefficient public transportation system can be a barrier to the successful development of a destination's tourism industry. Uber, a convenient ride-hailing service, can complement underdeveloped public transport and play a significant role in stimulating the tourism economy by increasing tourists' mobility and accessibility to attractions and service facilities. Using the data of 48 sub-Saharan African countries, this study conducted propensity score matching and differencein-differences analysis to empirically examine the influence of Uber on a country's tourism industry. The results showed that Uber contributed $20 million annually in total tourist spending-$24 per tourist spending-on average, to a country's economy between 2013 and 2016. However, it did not have a significant influence on the number of international arrivals. The findings of this study provided insights into the benefits of Uber service in promoting per tourist spending by providing a reliable and efficient means of travel.

Keywords: Uber, sharing economy, sub-Saharan Africa, difference-in-differences, propensity score matching, tourist expenditure