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  • Chidozie Uzoezie

Africa’s Hospitality Withstands Economic Headwinds


South Africa’s hospitality sector is poised for further growth in the next five years bolstered by inbound travelers amid a difficult and volatile economic climate.

Pietro Calicchio, Hospitality & Gaming Industry Leader for PwC Southern Africa (www.PwC.co.za), says: “Africa’s hotel sector has remained resilient in the face of strong economic headwinds.”

PwC’s 7th edition of the ‘Hotels Outlook: 2017-2021’ projects that South African hotel room revenue will grow by 10.1% in 2017 to R17.5 billion. Overall hotel room revenue for South Africa is expected to expand at a 9.3% compound annual rate to R24.8 billion in 2021 from R15.9 billion in 2016.

PwC’s report features information about hotel accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania. This year we take our African view a step further, with looking into Ghana and Ethiopia as emerging hotel markets.

The outlook for 2017 is positive with an increase in the number of international visitors to South Africa expected. Domestic tourism is also anticipated to increase by 2.2% in 2017.

Visits from China and India increased in 2016 as a result of the relaxation in the visa requirements; travellers from China to South Africa increased by 38% and India recorded a 21.7% increase. Of non-African countries, the UK is still the largest source of visitors to South Africa at 447 840 in 2016.

Of the African countries, the largest number of foreign visitors to South Africa in 2016 came from Zimbabwe at two million, followed by Lesotho at 1.8 million and Mozambique at 1.3 million. In addition, visits from East and Central Africa also rose by 11.2% in 2016.

It is promising to note a growing number of new hotels planned for the South African market over the next five years. The overall number of available rooms is expected to increase at a 0.9% compound annual rate, thereby adding 2700 rooms over this period.

Nigeria is expected to be the fastest-growing market from a revenue perspective over the next five years with a projected 14.7% compound annual increase in revenue, benefitting from an improving economy, continued growth in domestic tourism, and expansion in the number of available rooms.

South Africa is projected to be the next-fastest growing market with a 9.3% compound annual increase in room revenue, most of which will be generated by rising average room rates and continued but moderating growth in tourism.

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Comments (25)

Guest
Sep 21, 2022

We just booked our QATAR 🇶🇦 HÔTEL yesterday for 2 différent short stars of 2 nights and 3 nights for the Final… https://www.14sb.com/fifa-world-cup-hotels.html . Not exactly cheap but ok price for 4.5 Stars luxury and in Doha Center City! Thanks and Good Luck everyone! Vamos MEXICO!

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Guest
Sep 30, 2022

Wow! Stunning! Hilton seems to be taking Africa by storm. Just a couple of years back, they opened the first ever in Eswatini.

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kasarokcaesar
Oct 24, 2022

Wonderful event and topics discussed, hopefully we see the manifestations in our African airline businesses in the nearest future. Kudos to you all.

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Guest
Nov 10, 2022

Hi, I'm Lucy. Please how do I embark on my travel/ tour business. I am newbie and help..

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Guest
Nov 18, 2022

Prices in the Sol Torremolinos Don Pablo are the same than two weeks ago.

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Guest
Dec 04, 2022

Good location astounding but the staffs are rude and they make me wait so long for the service. They charge me more than what is on the website and did not refund me the manager is not helping with the issue


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Guest
Dec 15, 2022