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The Accommodation Industry in South Africa
BY Natalie Bryden
South Africa
21 July 2020
R 14 400.00 (ZAR)  
estimated $ 867.79 (USD) *
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The Accommodation Industry


The tourism sector accounted for approximately 709,000 jobs in 2019. Income from accommodation grew by over 2% in 2019 despite a decline in international tourists. Even before the coronavirus pandemic, South Africa’s travel and tourism industry was facing challenges due to a weak economy, competition from neighbouring countries, safety and security issues and the water crisis. 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.


Travel trends and Challenges


South Africa is a popular meetings, incentives, conferencing and events destination and travellers who combine leisure and business travel are a growing market. Wellness and medical tourism are popular, along with township and sports tourism. Government has implemented austerity measures, resulting in less travel for government employees. The quality of infrastructure and road networks, especially in rural areas, affects tourism growth while load-shedding affects tourism and the daily operations of accommodation establishments. The cancellation of international and domestic routes by South African Airways decreased demand for accommodation.


Coronavirus Effects


It is expected that international tourist arrivals will decrease by 58% to 78% in 2020. A recent survey indicated that a large percentage of accommodation businesses did not believe they would survive the pandemic. Significant retrenchments have already taken place. Many accommodation establishments are taking forward bookings for when the tourism industry opens up again.


Report Coverage


This report on the Accommodation Industry includes information on the size and state of the sector and the factors that influence it including the coronavirus crisis, travel and tourism statistics and trends, and corporate actions. There are profiles of 39 companies including Marriott International, the owner of Protea Hotels, which announced that it will stop operating some well-known South African Hotels, major players such as Sun International and Tsogo Sun, Moroccon-based Onomo, which is expanding its footprint on the African continent, and small players such as Cradle Boutique Hotel.


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