ABN – South Africa’s hospitality industry looks set to grow over the next five years with Cape Town generating a large majority of the growth.
Although the country’s economy has weakened recently, the hotel industry had an increased number of visitors in 2014, which led to a rise in room rates.
However the country continues to face challenges from load shedding, strikes and xenophobia.
PwC Hospitality Industry leader Nikki Forster said: “The South African hotel market faces a number of challenges, but we are very optimistic in its ability to compete, adapt and succeed, especially as the global economy continues to improve following the recent economic uncertainty.
“Growth in travel and tourism is also expected to boost growth in the accommodation industry across the African continent during the next five years.
“The hotel occupancy rate reached its highest level in 2014 of 59% since 2008.
“The hotel occupancy rate is expected to increase to 62% by 2019 but still remain lower than the 68.4% achieved in 2008.”
The country has also recently revised its visa regulations.
Forster added: “Under the revised regulations tourists to South Africa will have to apply in person for visas to visit South Africa so that biometric data can be reliably collected.
“In addition, parents and guardians travelling with minors must have an unabridged birth certificate that shows the names of both parents.
“Although the new regulations are intended to protect South Africa they could have unforeseen consequences for the tourism and hospitality industries.
“Furthermore, the regulations may be onerous for tourists to comply with. It still remains to be seen as to how they will affect the tourism and hospitality sectors.”