9th Annual edition: Unparalleled experience
PwC’s team of hotel specialists provide an unbiased overview of how the hotel industry in South Africa, Nigeria, Mauritius, Kenya, Namibia and Tanzania is expected to develop over the coming years.
of total hotel room revenue was accumulated by three-star hotels in South Africa.
increase in number of four-star-hotels rooms in 2017-18.
per room will be the average cost of a five-star hotel room in 2023.
Overall room revenue in South Africa, Nigeria, Mauritius, Kenya and Tanzania rose 7.4% in 2018, up from the 1.9% increase in 2017, principally reflecting a 28 percentage point turnaround in Kenya, a 15.4 percentage point turnaround in Tanzania, as well as a 7.2 percentage point improvement in Nigeria. Mauritius continued to grow at double-digit rates in 2018 but room revenue growth in South Africa fell to only 0.5%.
In South Africa, concerns about the water shortage in Cape Town led to a drop in guest nights and slower growth in ADR (average daily rate), continuing the trend from 2017.
We project South Africa to be the slowest-growing market with a 3.3% compound annual increase in room revenue. This relatively modest increase will reflect the expectation of low ADR growth, as growth in online booking and the increasing use of travel sites promotes price shopping. At the same time, we look for an improvement in guest night growth as tourism increases during the latter part of the forecast period.
(Main picture: Montecasino - Image courtesy of Tsogo Sun)
Image courtesy of Tsogo Sun
Image courtesy of Tsogo Sun
Hotel room revenue for the five markets as a group will increase at a 5.8% compound annual rate to R50.6 billion in 2023 from R38.1 billion in 2018.
The Tourism Amendment Bill 2019 was issued in the Government Gazette on 12 April 2019. The Bill’s stated aim is to provide for the development and promotion of sustainable tourism for the benefit of South Africa, its residents and its visitors; to provide for the continued existence of the South African Tourism Board, and to regulate the tourist guide profession. The most controversial aspect of the Bill is its proposal to regulate ‘short-term home rentals’ under the Tourism Act. This means home-sharing apps such as Airbnb and their hosts will soon be regulated in South Africa.
The proposed legislation would empower the minister of tourism to determine ‘thresholds’ regarding these shortterm home rentals and enforce limits on, for example:
The thresholds would apply to ‘non-businesses’ that do not operate on a full-time basis. The Bill does not specify the exact thresholds that the Act will enforce. The bill was open for public comment until 11 June.
Positioning for future growth: PwC’s team of hotel specialists provide an unbiased overview of how the hotel industry in South Africa, Nigeria, Mauritius, Kenya and Tanzania is expected to develop over the coming years.