Africa’s Hospitality Sector to Experience Growth

A report from PricewaterhouseCoopers Inc. revealed that South Africa’s hospitality sector is poised for notable growth over the next five years. 

PwC explained that despite the fact that South Africa’s economy has been weakening, it’s been gaining significantly higher rates of tourists in the past few years, helping to strengthen its hospitality and tourism industry. The report predicted that by 2019, hotel occupancy rates will reach between 58.3 percent and 62 percent, up from 2014’s low of 54.4 percent. In four years, experts believe that five-star hotels in South Africa will reach 80 percent occupancy.

Not only will more people be renting hotel rooms in South Africa, but room rates are expected to increase, helping to bring even more revenue to the sector. PwC reported that South African hotel room revenue is expected to expand at a compound annual rate of 8 percent. The variety of new lodgings being constructed in Cape Town will help lead this trend, explained the study. 

One of the most prominent forces driving tourism to South Africa is the creation of new airline routes. PwC reported that Qatar Airways recently implemented non-stop service from Doha to Cape Town, while South African Airways started offering flights to Abu Dhabi and the United Arab Emirates. 

Although the country’s hospitality industry is set to grow, new visa regulations could present significant setbacks. The revised visa policy requires people to apply for them in person so that officials can accurately collect biometric data. Families or guardians bringing minors into the country must present unabridged birth certificates that show the names of both parents. These new processes are intended to protect South Africa, but they could end up dissuading people from making the nation their next destination.