Every day, PwC plays a significant supporting role in hospitality businesses across the world. With our local knowledge of culture, laws and business needs, we help clients make the most of changing market scenarios.
We understand how developments in the broader hospitality environment are affecting our client – which is why we work with them as a trusted advisor to provide solutions to help improve organisational effectiveness and long-term success. More significantly, we focus on the issues and challenges that are of utmost importance to our clients. These include restructuring; talent management, changing revenue models, compliance, changing guest requirements and managing capital spend. We’ve made a substantial commitment to understanding the forces that are impacting these issues and continue to develop and deliver solutions to help our clients achieve their financial, operational and strategic objectives.
As business destinations, the economic climate is an important attraction in Nigeria and South Africa.
Nigeria's economy is booming, buoyed in large part by regional and international investment, and hotel room revenue rose 35% between 2008 and 2012.
Although South Africa's economic growth is not nearly as strong as Nigeria's, it has outperformed the global economy.
South Africa's hotel and accommodation market, in terms of capacity and room revenue, expanded rapidly between 2006 and 2008, slowed in 2009 reflecting the global recession, and then picked up in 2010, boosted by visitors to the FIFA World Cup.
Without the FIFA World Cup in 2011, the market declined.increased by 11.4%, helped by exposure related to the 2010 FIFA World Cup.
In 2012, however, hotel room revenue hotel room revenue in South Africa rose by 50% between 2006 and 2012 and total spending on all accommodation, including guest houses, game lodges, camping sites and other accommodation, increased 66% over the same period.
Slow growth in Mauritius over the past five years was in part due to price discounting, particularly by five-star hotels, to sustain business. With global economic conditions improving, we expect foreign tourism to increase,prices to rise, and spending on hotel rooms to grow by 10.4% on a compound annual basis.
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