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    • Accommodation Industry South Africa

    The Accommodation Industry in South Africa 2023

    Yasmin Mahomedy | South Africa | 27 March 2023

    The Accommodation Industry in South Africa 2020

    Natalie Bryden | South Africa | 21 July 2020

    The Accommodation Industry in South Africa 2019

    Louise Mitchell | South Africa | 28 March 2019

    The Accommodation Industry in South Africa 2017

    Louise Mitchell | South Africa | 04 October 2017

    The Accommodation Industry in South Africa 2016

    Louise Mitchell | South Africa | 13 June 2016

    The Accommodation Industry in South Africa 2014

    Gareth Barnard | South Africa | 01 October 2014

    Report Info

    Report Summary Table of Contents
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    Report Coverage

    This report focuses on tourism and student accommodation in South Africa. It includes information on the state of tourism, occupancies, influencing factors, notable players, corporate actions and developments. There are profiles of 48 companies including International companies such as Accor and InterContinental, major local players such as Southern Sun, Sun International and City Lodge, and companies operating in the student accommodation subsector such as CampusKey and Citiq.

    Introduction

    • The tourism accommodation industry, one of the sectors hardest hit by lockdown restrictions, is in recovery. \r\n
    • Tourist accommodation income increased by more than 60% in 2022. \r\n
    • Role players are doing well despite energy costs, power cuts, pressure on the discretionary spending of travellers and occupancy still generally lower than pre-pandemic levels. \r\n
    • The United Nations World Tourism Organisation expects the sector to return to pre-crisis levels in 2023. \r\n
    • Student accommodation is a growing subsector as the shortage of student accommodation has long been a challenge. \r\n
    • The Department of Higher Education and Training said there is a shortage of over 400,000 beds at public tertiary institutions.

    Strengths

    • A variety of established accommodation is available.
    • South Africa is a popular destination for leisure and business.
    • South Africa is a relatively low cost destination for international tourists.
    • The industry is a significant foreign exchange earner and creates employment.

    Weaknesses

    • Lack of disposable income affects spending on travel and accommodation.
    • Poor road infrastructure affects access to establishments and deters tourists from wanting to visit.
    • Shortage of skills.
    • The industry is exposed to external macroeconomic, and climatic factors.

    Opportunities

    • Demand and further growth in the aparthotel segment.
    • High demand for student accommodation.
    • Skills development in the hotel industry.

    Threats

    • Crime is threatening the safety and security of tourists.
    • High airfares could deter tourists from travelling.
    • Increasing costs due to loadshedding, especially for small establishments.
    • Rampant power outages.
    • Rising cost of utilities.
    • Russia-Ukraine war’s impact on fuel pricing.
    • South Africa’s attractiveness as a travel destination could suffer due to political uncertainty, unrest, and crime.

    Outlook

    • The industry is recovering well after the pandemic, and tourist arrivals continue to increase. \r\n
    • Occupancy in the general hotel segment is still below pre-pandemic levels and growth is being driven by apartment hotels. \r\n
    • Obstacles to accelerated recovery are inflation, power outages, and an economic slowdown. \r\n
    • Economists said there is a significantly increased probability of a recession since January.\r\n
    • The student accommodation sector offers huge opportunities for investors given the lack of supply and the strong demand. \r\n
    • A key incentive for investors is government support through its funding for low-income students.

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    The Accommodation Industry in South Africa
    The Accommodation Industry in South Africa 2023

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    2.3. Size of the Industry 4
    3. LOCAL 5
    3.1. State of the Industry 5
    3.2. Key Trends 19
    3.3. Key Issues 19
    3.4. Notable Players 19
    3.5. Corporate Actions 22
    3.6. Regulations 23
    3.7. Enterprise Development and Social Development 23
    4. AFRICA 25
    5. INTERNATIONAL 28
    6. INFLUENCING FACTORS 30
    6.1. Loadshedding 30
    6.2. Economic Environment 31
    6.3. Input Costs 32
    6.4. Safety and Security 33
    6.5. Labour 33
    6.6. Environmental Issues 35
    6.7. Technology, R&D, Innovation 36
    6.8. Government Support 36
    7. COMPETITIVE ENVIRONMENT 37
    7.1. Competition 37
    7.2. Ownership Structure of the Industry 38
    7.3. Barriers to Entry 38
    8. SWOT ANALYSIS 39
    9. OUTLOOK 39
    10. INDUSTRY ASSOCIATIONS 40
    11. REFERENCES 40
    11.1. Publications 40
    11.2. Websites 41
    APPENDIX 1 42
    Summary of Notable Players 42
    COMPANY PROFILES 51
    Accorhotels South Africa (Pty) Ltd 51
    Adowa Property Managers (Pty) Ltd 53
    African Elite Properties (Pty) Ltd 55
    African Sky Hotels and Resorts (Pty) Ltd 57
    An African Anthology (Pty) Ltd 59
    And Beyond South Africa (Pty) Ltd 62
    BON Hotels (Pty) Ltd 66
    CampusKey (Pty) Ltd 70
    Capital Apartments and Hotels (Pty) Ltd (The) 72
    Citiq Students (Pty) Ltd 74
    City Lodge Hotels Ltd 76
    Cradle Boutique Hotel (Pty) Ltd 83
    Extraordinary Resorts Holdings SA (Pty) Ltd 85
    Forever Resorts (Pty) Ltd 88
    Good Hope Palace Hotels (Pty) Ltd 91
    Gooderson Leisure Corporation (Pty) Ltd 93
    Growthpoint Properties Ltd 96
    Hilton Worldwide Holdings Inc 102
    Hunter Hotels (Pty) Ltd 105
    IFA Hotels and Resorts Ltd 107
    InterContinental Hotels Group PLC 110
    Kat Leisure (Pty) Ltd 119
    Kharafi Hospitality (Pty) Ltd 122
    Legacy Hotels and Resorts (Pty) Ltd 124
    Legend Hospitality Group (Pty) Ltd 128
    M I H Ventures (Pty) Ltd 130
    Marriott International Inc 132
    Millat Investments (Pty) Ltd 150
    MORE Family Collection (Pty) Ltd 152
    Newmark Hotels (Pty) Ltd 154
    One and Only Cape Town (RF) (Pty) Ltd 157
    ONOMO International LLC 159
    Orion Hotels and Resorts (South Africa) (Pty) Ltd 161
    Peermont Global (Pty) Ltd 163
    Premier Hotels and Resorts (Pty) Ltd 167
    Pulse Property Group (Pty) Ltd 171
    Radisson Hospitality South Africa (Pty) Ltd 173
    Respublica Group (Pty) Ltd 176
    South African National Parks 178
    South African Student Accommodation Impact Investments (Pty) Ltd 181
    South Point Management Services (Pty) Ltd 183
    Southern Sun Ltd 185
    Stag African Observatory (Pty) Ltd 193
    Sun International Ltd 195
    Tintswalo Classic Collection (Pty) Ltd 202
    Tourvest Holdings (Pty) Ltd 204
    Valor Hospitality Partners Africa (Pty) Ltd 210
    Vexicure (Pty) Ltd 212

    Introduction

    This report focuses on the tourism accommodation sector. According to the latest stats from the World Travel and Tourism Council (WTTC), the tourism sector in South Africa directly accounted for 2.8% of real GDP (R139bn) in 2018 and it was predicted that the industry could reach R145.3bn in 2019. The tourism sector accounted for approximately 709,000 jobs in 2019. The number of available stay units in December 2019 increased by 0.6% across all types of accommodation compared to 2018 and income from accommodation (excluding restaurant and bar sales and other income) grew by 2.3% from R24.8bn in 2018 to R25.4bn in 2019, despite a 2.3% decline in international tourist numbers in 2019. Due to the coronavirus pandemic and lockdowns in most countries, 2020 will be devastating for the travel and tourism and accommodation sectors, with massive industry layoffs and consolidation taking place as foreign and inter-provincial travel stopped and as the industry effectively shut down. The industry lost R4.6bn in lost revenue in March, April and May 2020 according to Stats SA figures.

    Strengths

    • Available government funding for tourism infrastructure and SME development.
    • South Africa is a popular destination for leisure and business.
    • The government is focused on growth in tourism and South African Tourism is effectively marketing the country as an international destination.
    • There is a variety of established accommodation, ranging from backpackers to five-star luxury hotels run by global hotel groups.
    • Visa waivers will contribute towards increased tourist numbers.

    Weaknesses

    • Constrained growth in government travel.
    • Establishments that rely on domestic tourism depend on road infrastructure which is poor in rural areas and sometimes prevents people from travelling.
    • Fixed cost nature of the business
    • Lack of disposable income translates into low growth in domestic travel and accommodation.
    • Oversupply in certain markets – occupancy rates hovering at 50% during peak periods.

    Opportunities

    • Affordable packages for local tourists.
    • Create virtual tours during lockdown to stimulate future demand.
    • Eco-friendly travel provides an opportunity for accommodation with a low impact on the environment and which can be inexpensive to set up and run.
    • Professional cleaning crews (trained in sanitation protocols) for vacation rentals.

    Threats

    • Crime is threatening the safety and security of tourists.
    • Cutback in travel for business and leisure travel.
    • Possible increasing cost of airline tickets as airlines leave middle seats empty post-pandemic.
    • The combination of low occupancy and stagnant and falling revenue per available room is unsustainable.
    • The sharing economy is taking market share from traditional accommodation.
    • Unreliable and rising cost of utilities.

    Outlook

    The coronavirus pandemic is having an unprecedented negative impact on accommodation establishment revenues and occupancy rates. Small establishments may close down or be absorbed into large groups, resulting in industry consolidation. \r\n\r\nIn the short-term, travellers will be sensitive to factors such as hygiene and will want familiarity. This will suit the large brands over independent hotels. Tourists will seek out hideouts in small towns and rural areas. Large hotels may find it difficult to integrate social distancing requirements due to their design.\r\n\r\nAccording to a survey conducted by booking company Tourlane, South Africa has been voted the top country for post-coronavirus travel. Over 600 respondents, mostly from Europe, said South Africa’s outdoor adventures, safaris and beaches were what they were looking forward to once the pandemic subsides. Travellers said they would mostly likely travel in 2021.

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    The Accommodation Industry in South Africa 2020

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 9
    4.1. Local 9
    4.1.1. Regulations 11
    4.1.2. Corporate Actions 12
    4.1.3. Government Initiatives 13
    4.1.4. Enterprise Development and Social Economic Development 17
    4.2. Continental 19
    4.3. International 21
    5. INFLUENCING FACTORS 23
    5.1. Coronavirus 23
    5.2. Economic Environment 25
    5.3. Cyclicality 26
    5.4. Environmental Concerns 26
    5.5. Rising Operating Costs 27
    5.6. Airline Woes 28
    5.7. Sharing Economy 28
    5.8. Terms and Conditions 29
    5.9. Crime, Physical Security and Cybersecurity 29
    5.10. Land Reform 30
    5.11. Information Technology (IT), Research and Development (R&D) and Innovation 30
    5.12. Labour 32
    6. COMPETITION 34
    6.1. Barriers to Entry 35
    7. SWOT ANALYSIS 35
    8. OUTLOOK 36
    9. INDUSTRY ASSOCIATIONS 37
    10. REFERENCES 38
    10.1. Publications 38
    10.2. Websites 38
    APPENDIX 1 40
    Summary of Notable Players 40
    COMPANY PROFILES 48
    ACCORHOTELS SOUTH AFRICA (PTY) LTD 48
    AFRICAN ELITE PROPERTIES (PTY) LTD 50
    AFRICAN SKY HOTELS AND RESORTS (PTY) LTD 52
    AN AFRICAN ANTHOLOGY (PTY) LTD 54
    AND BEYOND SOUTH AFRICA (PTY) LTD 56
    BON HOTELS (PTY) LTD 59
    CITY LODGE HOTELS LTD 62
    CRADLE BOUTIQUE HOTEL (PTY) LTD 69
    EXTRAORDINARY RESORTS HOLDINGS SA (PTY) LTD 70
    FOREVER RESORTS (PTY) LTD 73
    GOOD HOPE PALACE HOTELS (PTY) LTD 76
    GOODERSON LEISURE CORPORATION (PTY) LTD 78
    HILTON WORLDWIDE HOLDINGS INC 81
    HUNTER HOTELS (PTY) LTD 84
    IFA HOTELS AND RESORTS LTD 86
    INTERCONTINENTAL HOTELS GROUP PLC 89
    KAT LEISURE (PTY) LTD 97
    KHARAFI HOSPITALITY (PTY) LTD 100
    LEGACY HOTELS AND RESORTS (PTY) LTD 102
    LEGEND HOSPITALITY GROUP (PTY) LTD 107
    M I H VENTURES (PTY) LTD 109
    MARRIOTT INTERNATIONAL INC 111
    MORE FAMILY COLLECTION (PTY) LTD 126
    NEWMARK HOTELS (PTY) LTD 128
    ONE AND ONLY CAPE TOWN (RF) (PTY) LTD 131
    ONOMO INTERNATIONAL LLC 133
    ORION HOTELS AND RESORTS (PTY) LTD 135
    OXFORD ROSEBANK HOTEL SERVICES (PTY) LTD 138
    PEERMONT GLOBAL (PTY) LTD 139
    PREMIER HOTELS AND RESORTS (PTY) LTD 143
    RADISSON HOSPITALITY SOUTH AFRICA (PTY) LTD 146
    SOUTH AFRICAN NATIONAL PARKS 148
    SUN INTERNATIONAL LTD 152
    TINTSWALO CLASSIC COLLECTION (PTY) LTD 159
    TOURVEST HOLDINGS (PTY) LTD 161
    TSOGO SUN HOTELS LTD 166
    VALOR HOSPITALITY PARTNERS AFRICA (PTY) LTD 174
    VEXICURE (PTY) LTD 176
    WILDERNESS HOLDINGS LTD 178

    Introduction

    This report focuses on tourism accommodation which includes hotels, caravan parks and camping sites, guest houses and guest farms, bed and breakfast (B&B), lodges and self-catering establishments. According to Stats SA, the direct contribution of the travel and tourism sector to GDP in 2017 was R130.25bn, increasing by 4.2% from R124.96bn in 2016. This represented 2.9% of national GDP in 2016 and 2.8% of GDP in 2017. Macroeconomic factors leading to increases in operating costs kept the performance of the accommodation sector in 2018 at similar levels as in 2017. The number of available stay units in December 2018 decreased across all types of accommodation compared to 2017. Income from accommodation (excluding restaurant and bar sales and other income) stayed flat in 2018 at R24.96bn compared to R24.97bn in 2017. This was in spite of international tourist numbers that increased by 32.5% to 3.26 million in December 2018 compared to May 2017. The sector has the potential to be a major contributor to the economy and enterprise development, especially among women and youth. The Department of Tourism aims to transform the sector to exceed the requirements of the amended Tourism B-BBEE sector code of 2015.

    Strengths

    • Available government funding for tourism infrastructure and SMME development.
    • Government’s goal to increase tourist numbers will benefit the accommodation sector.
    • South Africa has an abundance of natural attractions which makes it a popular destination for holiday and business travel.
    • The government is focused on growth in tourism and SA Tourism is effectively marketing the country as an international destination.
    • The implementation of government’s eVisa regime in 2019 will contribute towards increased tourist numbers.
    • There is a variety of established accommodation, ranging from backpackers to five-star luxury hotels run by global hotel groups.

    Weaknesses

    • Africa is not always considered as a destination because of stereotypes of the continent and negative perceptions that may deter investment.
    • Establishments that rely on domestic tourism depend on road infrastructure which is poor in rural areas and sometimes prevents people from travelling
    • Increasing cost of airline tickets is deterring local travellers from travelling.
    • New entrants, especially women and youth, lack business acumen and access to resources.
    • Some government tourism policies are not updated and performance is not publicised.

    Opportunities

    • Development of urban, township and rural cultural accommodation experiences.
    • Eco-conscious tourists are driving demand for eco-tourism accommodation.
    • Growing demand for budget accommodation.
    • Growth in the sub-Saharan African hotel rooms pipeline.
    • Home sharing is available to SMMEs and home owners with extra space through online services like Airbnb, Afristay or Wimdu.
    • Millennials will be a key target segment and they demand personalisation through the use of their smartphones or tablets.
    • Online booking is making bookings more accessible.
    • The expected growth in the coastal and marine tourism sector.

    Threats

    • Crime is threatening the safety and security of tourists.
    • Increasing costs like high food, utility, transport and labour costs impact on profitability.
    • Low growth in the local economy translates into low growth in domestic travel and accommodation.
    • The ongoing drought in the southern parts of the country has a negative effect on the sector.
    • The sharing economy is driving growth in private and alternative accommodation which is taking a share of the market from more traditional types of accommodation.
    • Unreliable electricity and water supply and quality of drinking water.

    Outlook

    The growth forecast for accommodation is dependent on that of the local and global economy. Commentators have a positive outlook for the South African hotel sector, in line with government’s growth forecast for the tourism industry. JLL Sub-Saharan Africa expects hotel trading to remain under pressure during 2019, as new rooms continue to be absorbed into the market. Xander Nijnens, executive vice-president, said: “New segments such as serviced apartments and branded economy hotels hold strong returns prospects”. The rise in food inflation and operating costs are amongst the factors that could curb growth in the accommodation sector. Talk of further relaxation of visa requirements for international visitors and the eVisa system may contribute towards growth in international tourist numbers. Local economic conditions that are straining consumer spending will continue to influence the choice of accommodation by cost conscious domestic tourists.

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    The Accommodation Industry in South Africa 2019

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    The Accommodation Industry in South Africa 2020-07-21

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    The Accommodation Industry in South Africa 2017-10-04

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    The Accommodation Industry in South Africa 2014-10-01

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 4
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 17
    4.1.2. Regulations 18
    4.1.3. Enterprise Development and Social Economic Development 20
    4.2. Continental 23
    4.3. International 26
    5. INFLUENCING FACTORS 27
    5.1. Economic Environment 27
    5.2. Government Initiatives 28
    5.3. Private Sector Initiatives 29
    5.4. Land Reform 29
    5.5. Tourism 30
    5.6. Marketing 30
    5.7. Rising Operating Costs 31
    5.8. Information Technology (IT), Research and Development (R&D) and Innovation 32
    5.9. Labour 33
    5.10. Cyclicality 36
    5.11. Environmental Concerns 37
    5.12. Crime and Security 38
    6. COMPETITION 39
    6.1. Barriers to Entry 40
    7. SWOT ANALYSIS 41
    8. OUTLOOK 42
    9. INDUSTRY ASSOCIATIONS 42
    10. REFERENCES 43
    10.1. Publications 43
    10.2. Websites 44
    APPENDIX 1 46
    Summary of Notable Players 46
    COMPANY PROFILES 52
    AND BEYOND SOUTH AFRICA (PTY) LTD 52
    BON HOTELS (PTY) LTD 55
    CITY LODGE HOTELS LTD 58
    DEVKOM SOUTH AFRICA (PTY) LTD 64
    FOREVER RESORTS (PTY) LTD 66
    GOOD HOPE PALACE HOTELS (PTY) LTD 70
    GOODERSON LEISURE CORPORATION (PTY) LTD 72
    IFA HOTELS AND RESORTS LTD 75
    INTERCONTINENTAL HOTELS GROUP PLC 78
    KAT LEISURE (PTY) LTD 87
    KHARAFI HOSPITALITY (PTY) LTD 89
    LEGACY HOTELS AND RESORTS (PTY) LTD 91
    M I H VENTURES (PTY) LTD 96
    MARRIOTT INTERNATIONAL INC 98
    ONE AND ONLY CAPE TOWN (RF) (PTY) LTD 113
    PEERMONT GLOBAL (PTY) LTD 115
    PREMIER HOTELS AND RESORTS (PTY) LTD 120
    RADISSON HOSPITALITY SOUTH AFRICA (PTY) LTD 123
    SOUTH AFRICAN NATIONAL PARKS 125
    SUN INTERNATIONAL LTD 129
    TSOGO SUN HOLDINGS LTD 135
    VALOR HOSPITALITY PARTNERS AFRICA (PTY) LTD 144
    VEXICURE (PTY) LTD 146
    WILDERNESS HOLDINGS LTD 148

    Report Coverage

    The detailed Accommodation report includes statistics for the sector and describes current conditions and key developments including the growth of Halal tourism. The report profiles 24 companies including global group, Marriott International Inc which owns 60 properties in South Africa and which recently rebranded Protea Hotels to capitalise on the travel aspirations of Africa’s growing middle class and the increased presence of international hotel brands in Africa. Also profiled is Rezidor Hotel Group South Africa (Pty) Ltd which expects to open Africa’s first Radisson Red hotel situated at the V&A Waterfront in Cape Town during the course of 2017.

    Introduction

    This report focuses on tourism accommodation which includes hotels, caravan parks and camping sites, guest houses and guest farms, and bed and breakfast (B&B), lodges and self-catering establishments. Income from accommodation at current prices was R22.8bn in 2016, an increase of 12.3% over the previous year, which excluded restaurant and bar sales from \'other\' income. The growth trend, driven mainly by rate increases, continued during the three months from March to May 2017 when a 6.5% year-on-year increase was recorded. Total revenue for 2016 was R45.5bn (2015: R41.6bn), which included income from restaurant and bar sales of R7.4bn, and R15.5bn from \'other\' income. The accommodation industry as a whole is extremely sensitive to the effects of the weak economy as increases in property rates, electricity, water, salaries, food and operating materials are reducing margins.

    Strengths

    • South Africa has an abundance of natural attractions which makes it a popular destination for holiday and business travel.
    • The government is focused on growth in tourism and SA Tourism is effectively marketing the country as an international destination.
    • There is a variety of established accommodation, ranging from backpackers to five-star luxury global hotel groups.

    Weaknesses

    • Africa is not always considered as a destination because of stereotypes of the continent and negative perceptions that may deter investment.
    • New entrants, especially women and youth, lack business acumen and access to resources.
    • The local sector is dependent on poor road infrastructure, especially in rural areas, which sometimes prevents people from travelling, as well as increasing cost of low-cost airline tickets.

    Opportunities

    • Development of urban, township and rural cultural accommodation experiences.
    • Eco-tourism accommodation.
    • Growing demand for budget accommodation worldwide.
    • Growth in the MESE sector is expected.
    • Growth in the SSA hotel rooms pipeline.
    • Home sharing is now available to SMMEs and home owners with extra space through services like Airbnb, Afristay or Wimdu.
    • Millennials will be a key target segment and they demand personalisation through the use of their smartphones or tablets.
    • Online booking technology is making bookings more accessible.
    • Tailoring accommodation more to the needs of people from other African countries.
    • The expected growth in the coastal and marine tourism sector.

    Threats

    • Economic challenges in South Africa’s inbound markets are contributing to lower numbers of foreign arrivals.
    • Increasing costs like high food, utility, transport and labour costs impact on profitability.
    • Low growth in the local economy is likely to mean that growth in domestic travel and accommodation will also be slow.
    • Terrorism threats and attacks overseas have an impact on international travel.
    • The private and alternative accommodation market is growing quite rapidly and is taking a share of the market from paid accommodation.
    • Unreliable electricity and water supply and quality of drinking water.

    Outlook

    The rise in food inflation and adjustments in corporate and government travel spend are amongst the factors that could curb growth in the accommodation sector. As a result of difficult economic conditions there has been more growth in the budget accommodation segments and this is expected to continue. The MESE segment is likely to continue growing at a moderate rate and will have a significant impact on the industry because of the high spend on accommodation per visitor. Business travel spending is expected to grow by 1.6% in 2017 to R95.6bn and increase by 2.6% per year to R123.6bn in 2027. At the Tourism Indaba in May 2017 Thabi Leoka, Economic Strategist at Argon Asset Management, stressed the importance of identifying industries that support the tourism sector and investing in these businesses which will, in turn, feed into tourism growth. She added, “We need to be creative and take advantage of this status”, and she believed South Africa could avoid a recession if opportunities that can assist the local economy to grow are identified.

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    The Accommodation Industry in South Africa
    The Accommodation Industry in South Africa 2017

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    The Accommodation Industry in South Africa 2020-07-21

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    The Accommodation Industry in South Africa 2019-03-28

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    The Accommodation Industry in South Africa 2016-06-13

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    The Accommodation Industry in South Africa 2014-10-01

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 7
    4. STATE OF THE INDUSTRY 15
    4.1. Local 15
    4.1.1. Corporate Actions 22
    4.1.2. Regulations 23
    4.1.3. Enterprise Development and Social Economic Development 24
    4.2. Continental 27
    4.3. International 29
    5. INFLUENCING FACTORS 32
    5.1. Economic Environment 32
    5.2. Government Initiatives 33
    5.3. Marketing and Advertising 35
    5.4. Rising Operating Costs 36
    5.5. Technology, Research and Development (R&D) and Innovation 37
    5.6. Labour 38
    5.7. Cyclicality 41
    5.8. Environmental Concerns 42
    5.9. Crime and Security 44
    6. COMPETITION 45
    6.1. Barriers to Entry 46
    7. SWOT ANALYSIS 47
    8. OUTLOOK 48
    9. INDUSTRY ASSOCIATIONS 49
    10. REFERENCES 50
    10.1. Publications 50
    10.2. Websites 51
    COMPANY PROFILES 53
    ACCOR SOUTHERN AFRICA 53
    AND BEYOND SOUTH AFRICA (PTY) LTD 55
    AP ARABELLA (PTY) LTD 59
    BON HOTELS (PTY) LTD 61
    CITY LODGE HOTELS LTD 64
    FOREVER RESORTS (PTY) LTD 70
    GOOD HOPE PALACE HOTELS (PTY) LTD 74
    GOODERSON LEISURE CORPORATION (PTY) LTD 76
    IFA HOTELS AND RESORTS LTD 79
    INTERCONTINENTAL HOTELS GROUP PLC 82
    KAT LEISURE (PTY) LTD 92
    KHARAFI HOSPITALITY (PTY) LTD 94
    LEGACY HOTELS AND RESORTS (PTY) LTD 96
    MANTIS INVESTMENT HOLDINGS (PTY) LTD 101
    MARRIOTT INTERNATIONAL INC 103
    ONE AND ONLY CAPE TOWN (RF) (PTY) LTD 125
    PEERMONT GLOBAL (PTY) LTD 127
    PREMIER HOTELS AND RESORTS (PTY) LTD 132
    REZIDOR HOTEL GROUP SOUTH AFRICA (PTY) LTD 135
    SOUTH AFRICAN NATIONAL PARKS 137
    SUN INTERNATIONAL LTD 140
    TSOGO SUN HOLDINGS LTD 146
    VEXICURE (PTY) LTD 154
    WILDERNESS HOLDINGS LTD 156

    Report Coverage

    The detailed Accommodation report describes current conditions, corporate activity and new developments in the sector. Statistics regarding the size of the industry and projections for the success of the different accommodation types are included. The report profiles 24 companies including major players Sun International Ltd and Tsogo Sun Holdings Ltd, which between them own 132 hotels worldwide. Also profiled are leaders in the safari lodge sub-sector, ranging from South African National Parks which employs 4,742 people at its 19 parks, to exclusive Phinda Private Game Reserve (Pty) Ltd t/a & Beyond.

    Introduction

    This report focuses on short-term, paid accommodation such as hotels, motels, inns, lodges, guest houses, bed and breakfast (B&B), dormitories, camping and caravan sites and self-catering apartments. It also includes restaurants, bars and off-licences when they are run as part of the accommodation. Income from accommodation at current prices was R20.1bn in 2015, an increase of 8.2% over the previous year, which excluded restaurant and bar sales from \'other\' income. The growth trend, driven mainly by rate increases, continued during the first quarter of 2016 when a 13.7% year-on-year increase was recorded. Total revenue for 2015 was R41.6bn, which included restaurant and bar sales of R6.4bn and R15.4bn from \'other\' income. According to the Tourism Satellite Account (TSA) published in February 2016, there were 9,748 establishments in 2014, employing 115,289 people. The current difficult economic conditions which are leading to increased costs resulted in the average occupancy rate in 2015 dropping to 50.6%, compared to an occupancy rate of 51.5% in 2014.

    Strengths

    • South Africa has an abundance of natural attractions which makes it a popular destination for holiday and business travel.
    • The government is focused on growth in tourism and SA Tourism is effectively marketing the country as an international destination.
    • There is a variety of established accommodation, ranging from backpackers to five-star luxury global hotel groups.

    Weaknesses

    • New entrants, especially women and youth, lack business acumen and access to resources.
    • Poor road infrastructure, especially in rural areas, sometimes prevents people from travelling, as well as increasing cost of low-cost airline tickets.

    Opportunities

    • Development of urban, township and rural cultural accommodation experiences.
    • Eco-tourism accommodation.
    • Growing demand for budget accommodation world-wide.
    • Growth in the MESE sector is expected.
    • Home sharing is now available to SMMEs and home owners with extra space through services like Airbnb or Wimdu.
    • Millennials will be a key target segment and they demand personalisation through the use of their smartphones or tablets.
    • Online booking technology is making bookings more accessible.
    • Tailoring accommodation more to the needs of people from other African countries.

    Threats

    • Africa is challenged when it comes to stereotypes of the continent and negative perceptions, which is exacerbated by outbreaks like the Ebola virus and it affects travel to all countries.
    • Changes to visa requirements.
    • Economic challenges in South Africa’s inbound markets are contributing to lower numbers of foreign arrivals.
    • Increasing costs like high food, utility, transport and labour costs impact on profitability.
    • Slow growth in the local economy is likely to mean that growth in domestic travel and accommodation will also be slow.
    • Terrorism threats and attacks overseas will have an impact on international travel.
    • The private and alternative accommodation market is growing quite rapidly and is taking a share of the market from paid accommodation.
    • Unreliable electricity and water supply.

    Outlook

    Although the sharing economy is seen as a contributor to business disruption in the accommodation industry, Tshifhiwa Tshivhengwa, CEO of FEDHASA believes there is still scope for travel and tourism to grow and for occupancies to increase going forward. However he stated, “Given the rise in food inflation and adjustments in corporate and government travel spend amongst other issues we remain cautious going into the next quarter [2nd quarter 2016].” As a result of difficult economic conditions there has been more growth in the budget accommodation segments and this is expected to continue. The MESE segment is likely to continue growing at a moderate rate and will have a significant impact on the industry because of the high spend on accommodation per visitor. Globally, challenging economic conditions are likely to result in takeovers and partnerships in the hotel industry, as was emphasised by the theme, “Growth through partnership” at the Hotel Investment Conference Africa (HICA), held in Johannesburg in September 2015.

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    The Accommodation Industry in South Africa
    The Accommodation Industry in South Africa 2016

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    R 1 900.00(ZAR) estimated $108.67 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    3. SIZE OF THE INDUSTRY 9
    4. STATE OF THE INDUSTRY 22
    4.1. Local 22
    4.1.1. Corporate Actions 26
    4.1.2. Regulations 27
    4.1.3. Enterprise Development and Social Economic Development 29
    4.2. Continental 31
    4.3. International 35
    5. INFLUENCING FACTORS 39
    5.1. Economic Environment 39
    5.2. Government Initiatives 40
    5.2.1. Marketing and Advertising 42
    5.3. Rising Operating Costs 43
    5.4. Technology, Research and Development (R&D) and Innovation 44
    5.5. Labour 45
    5.6. Cyclicality 48
    5.7. Environmental Concerns 49
    5.8. Crime and Security 51
    6. COMPETITION 51
    6.1. Barriers to Entry 53
    7. SWOT ANALYSIS 54
    8. OUTLOOK 55
    9. INDUSTRY ASSOCIATIONS 55
    10. REFERENCES 56
    10.1. Publications 56
    10.2. Websites 57
    COMPANY PROFILES 60
    Accor Southern Africa 60
    AP Arabella (Pty) Ltd 62
    BON Hotels (Pty) Ltd 64
    City Lodge Hotels Ltd 67
    Forever Resorts (Pty) Ltd 73
    Good Hope Palace Hotels (Pty) Ltd 77
    Gooderson Leisure Corporation Ltd 79
    IFA Hotels and Resorts Ltd 82
    InterContinental Hotels Group Plc 85
    Kat Leisure (Pty) Ltd 96
    Kharafi Hospitality (Pty) Ltd 98
    Legacy Hotels and Resorts (Pty) Ltd 100
    Mantis Investment Holdings (Pty) Ltd 105
    Marriott International Inc 107
    One and Only Cape Town (RF) (Pty) Ltd 123
    Peermont Global (Pty) Ltd 125
    Phinda Private Game Reserve (Pty) Ltd 130
    Premier Hotels and Resorts (Pty) Ltd 133
    Rezidor Hotel Group South Africa (Pty) Ltd 135
    South African National Parks 137
    Sun International Ltd 141
    Tsogo Sun Holdings Ltd 147
    Vexicure (Pty) Ltd 156
    Wilderness Holdings Ltd 158

    Introduction

    This report focuses on short-term, paid accommodation such as hotels, motels, inns, lodges, guest houses, bed and breakfasts, dormitories, camping and caravan sites and self-catering apartments. It also includes restaurants, bars and off-licences when they are run as part of the accommodation. Income from room bookings was R16.1bn in 2013, an increase of 12.8% over the previous year, and total revenue for the year was R34.88bn, which included restaurant and bar sales of R5.5bn and R12.7bn from \'other\' income. According to the Tourism Satellite Account (TSA) there were 9,831 establishments employing 152,309 people. Between 2011 and 2013, and since the 2010 FIFA World Cup when extensive capacity was created, occupancy rates have increased by about 10% and room rates alone increased by 10.2% in 2013. The recent the Hotel Investment Conference Africa (HICA) 2014, held in Johannesburg from 14 to 16 September “confirmed the increasing focus and appetite by global hotel operators as well as investors in sub-Saharan Africa, including South Africa.”

    Strengths

    • South Africa has sound infrastructure and an abundance of\nnatural attractions which makes it a popular destination for\nholiday and business travel.
    • The government is focused on growth in tourism and South\nAfrican Tourism is effectively marketing the country as an\ninternational destination.
    • There is a variety of established accommodation, ranging\nfrom backpackers to five-star luxury global hotel groups.

    Weaknesses

    • A shortage of skilled staff and experienced black managers.
    • High food, utility, transport and labour costs impact on profitability.
    • Hotels have a low profit margin of only 1%. This means\nthat large international chains which have proven systems and structural advantages are able to dominate the market.
    • Smaller operators find it difficult to tap into a global market and there is a shortage of skills in social media management and online marketing.

    Opportunities

    • Development of urban, township and rural cultural\naccommodation experiences.
    • Eco-tourism accommodation.
    • Economic growth in the region and in BRICS countries,\nwith whom South Africa is aligned.
    • Growing demand for budget accommodation world-wide.
    • Growth in the MICE sector is expected.
    • Tailoring accommodation more to the needs of people from\nother African countries.
    • The strong growth in international travel.

    Threats

    • Proposed changes to Visa requirements.
    • Slow growth in the local economy is likely to mean that growth in domestic travel and accommodation will also be slow.
    • The Ebola virus has created a negative impression for the whole of African and will affect travel to all countries.
    • The private and alternative accommodation market is growing quite rapidly and is taking a share of the market from paid accommodation.

    Outlook

    Industry analysts and stakeholders predict that there will be very little creation of new capacity in the next three years but this will allow for continuing improvement in occupancy and room rates. Within this low rate of growth there has been more growth in the budget and luxury segments and this is expected to continue. The MICE segment is likely to continue growing at a moderate rate but it will have a significant impact on the industry as there is a high spend on accommodation per visitor. Traditional business travel may also increase as the international economy recovers but domestic business travel is likely to remain subdued until the local economy improves. International trends also indicate that leisure travel is growing far more than business travel due to the influence of a growing Asian middle class. According to a PricewaterhouseCoopers report, guesthouses will experience the most growth in capacity but occupancy will decline while hotels will see the highest growth in occupancy and room rates. In order to meet the needs of an international market which is rapidly changing, there is a need for diversification in the South African tourism offering and analysts believe opportunities exist for innovative accommodation in rural and township areas. Global hotel brands are showing great interest in the rest of Africa and although South Africa will not attract the same levels of funding, confidence in the South African accommodation sector is increasing.

    The Accommodation Industry in South Africa
    The Accommodation Industry in South Africa 2014

    Full Report

    R 1 900.00(ZAR) estimated $108.67 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 76.07 (USD)*

    Buy Now +

    Historical Reports

    The Accommodation Industry in South Africa 2023-03-27

    R 9 500.00(ZAR) estimated $543.34 (USD)*

    View Report Add to Cart

    The Accommodation Industry in South Africa 2020-07-21

    R 1 900.00(ZAR) estimated $108.67 (USD)*

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    The Accommodation Industry in South Africa 2019-03-28

    R 1 900.00(ZAR) estimated $108.67 (USD)*

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    The Accommodation Industry in South Africa 2017-10-04

    R 1 900.00(ZAR) estimated $108.67 (USD)*

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    The Accommodation Industry in South Africa 2016-06-13

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF INDUSTRY 1
    2.1. The Industry Supply Chain 2
    2.2. Geographic Position 3
    3. SIZE OF INDUSTRY 6
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 12
    4.1.2. Regulations 13
    4.1.3. Enterprise Development and Social Economic Development 14
    4.2. Continental 15
    4.3. International 17
    5. INFLUENCING FACTORS 19
    5.1. Economic environment 19
    5.2. General Trends 19
    5.3. Input Costs 20
    5.4. Cyclicality 20
    5.5. Labour 21
    5.6. Environmental Concerns 22
    6. COMPETITION 22
    6.1. Competition Commission Rulings 23
    6.2. Barriers to Entry 23
    6.3. Research and Development (R&D) and Innovation 23
    7. SWOT ANALYSIS 24
    8. OUTLOOK 24
    9. INDUSTRY ASSOCIATIONS 25
    10. REFERENCES 26
    10.1. Publications 26
    10.2. Websites 26
    ORGANOGRAM 27
    COMPANY PROFILES 30
    ACCOR SOUTHERN AFRICA 30
    AND BEYOND SOUTH AFRICA TRAVEL (PTY) LTD 32
    AP ARABELLA (PTY) LTD 36
    BON HOTELS (PTY) LTD 37
    CITY LODGE HOTELS LTD 38
    FOREVER RESORTS (PTY) LTD 42
    GOOD HOPE PALACE HOTELS (PTY) LTD 45
    GOODERSON LEISURE CORPORATION LTD 47
    IFA HOTELS & RESORTS LTD 49
    ISO LEISURE (PTY) LTD 52
    KAT LEISURE (PTY) LTD 53
    KHARAFI HOLDINGS (PTY) LTD 55
    LEGACY HOTELS & RESORTS (PTY) LTD 57
    MARRIOTT INTERNATIONAL INC 60
    NO 1 WATT STREET (PTY) LTD 73
    ONE & ONLY CAPE TOWN (PTY) LTD 74
    PEERMONT GLOBAL LTD 76
    PREMIER HOTELS & RESORTS (PTY) LTD 80
    REZIDOR HOTEL GROUP SOUTH AFRICA (PTY) LTD 82
    SOUTH AFRICAN NATIONAL PARKS 83
    SOUTHERN SUN HOTEL INTERESTS (PTY) LTD 86
    SUN INTERNATIONAL LTD 88
    THREE CITIES MANAGEMENT LTD 92
    TSOGO SUN HOLDINGS LTD 94
    WILDERNESS HOLDINGS LTD 97

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