How do I turn my Macbook Air into a WiFi Hotspot?

I have a 11" Macbook Air (MBA). While I am able to turn my iPhone4S to turn into a hotspot and connect my Macbook to the internet through this connection, I would like to use it the other way around as well.
At times I connect my MBA to the Internet using a 3G Wireless Modem/Dongle. I tried activating Sharing in network settings, but I do not see the Ethernet/Airport options - only items visible are WiFi, Bluetooth.
Is there a simple way of turning your MBA into a hotspot - something my iPhone can easily latch on to as a WiFi connection?
Thanks!

The only way, and I'm not sure the air models can do this, is to have a ethernet adapter, usb or thunderbolt, and have it connected to a router by ethernet and then you can set the wifi card into the hotspot mode.
But if you have both a iphone with data connection and 3G dongle for the mac what is the purpose of connecting one device to the other for internet access? They both already have internet access and you are paying for both whether you use them or not.

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