South Africa is projected to be the slowest growing hospitality market, according the PwC Hotels Outlook: 2019-2023, while Kenya’s hotel market, largely as a result of the growth in international tourism, surpassed expectations in 2018 with an occupancy rate of 53,2%.
The report provides data on accommodation revenues for the hotel sector in South Africa, Mauritius, Kenya and Tanzania. Key trends across the continent show that governments are taking steps to enhance their MICE infrastructure to attract more business tourists.
South Africa
Guest nights during the 2018-19 festive season increased, with each of the top-three hotel classes in Cape Town having recorded some recoveries, suggesting that Cape Town may have a more positive year in 2019.
Revenue in South Africa increased by 0.5% to R16,7 billion with an average room rate increasing by 1,2% and an occupancy rate of 59,2%.
The Tourism Amendment Bill 2019 aims to provide for the development and promotion of sustainable tourism for the benefit of South Africa, its residents and its visitors 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.
Kenya
Growth in air connectivity, visa-on arrival policies, and a strong economy can become a significant driver of tourism and business travel. Kenya will benefit from growing demand for experiences and adventure, with mid-scale hotels being the main driver, but growth in Airbnb and the shared economy will cut into the hotel market.
The number of available rooms is projected to increase from 20 100 in 2018 to 23 800 in 2023 with a 3,4% compound annual increase. Guest nights will total an estimated 4,6 million in 2023 with a compound annual increase from 3,9 million in 2018.
Mauritius
A number of new hotel projects have been announced with opening dates in 2019-2021 and in the range of four- to five-star ratings. However, new rooms will have to be added to meet the government’s ambition for 2,5million tourist arrivals by 2030.
Hotel revenue for three- and four-star hotels increased by 13,4% (€186m) in 2018 with an occupancy rate 54% and an ADR of €133. Five-star hotels increased by 13,5% (€369m) in 2018 with an 68,5% occupancy rate and an ADR of €284.
Namibia
Namibia has been targeting the Asian and American markets and has seen a small growth in Chinese arrivals. Leisure tourisma contracted slightly in 2018 and it is expected to decline in 2019.
The industry shows potential in the coming years, but the industry also faces notable challenges, including a lack of funding from the government to maintain infrastructure, lack of technology enablement as well as a strategy to broaden the appeal of the country as a holiday destination among a wider cross-section of international tourists.
