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The Accommodation Industry
BY Louise Mitchell
South Africa
28 March 2019
R 14 400.00 (ZAR)  
estimated $ 1 016.14 (USD) *
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the Accommodation Industry


South Africa’s accommodation industry is highly seasonal and its success is dependent on the economic well-being of local and international tourists. Income from accommodation (excluding restaurant and bar sales and other income) stayed flat in 2018 at R24.96bn compared to R24.97bn in 2017. The number of available units in December 2018 decreased across all types of accommodation compared to 2017. The sector has the potential to be a major contributor to the economy and enterprise development, especially among women and youth.


Constraints and Challenges


South Africa’s domestic tourism industry remains the driver of the country’s tourism sector, sustaining most of the facilities and services, especially in the accommodation sector. The main challenges faced by the sector include the drought, which affected tourism to the Western Cape in particular, and visa regulations for minors entering the country, which affected international arrival numbers. The personal safety and security of tourists is one of the biggest obstacles to inbound tourism while the quality of infrastructure and unreliable electricity and water supply affects tourism growth. The growth of Airbnb has significantly changed the face of the accommodation sector.


Report Coverage


This report focuses on tourism accommodation which includes hotels, caravan parks and camping sites, guest houses and guest farms, bed and breakfast, lodges and self-catering establishments. The report describes the size and state of the industry and the factors influencing its success. There are comprehensive profiles of 24 companies in the sector including those listed on the Johannesburg Stock Exchange such as City Lodge Hotels, Sun International, Tsogo Sun Holdings and Wilderness Holdings as well as a number of international companies operating in South Africa such as InterContinental Hotels and Marriott International.


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