Occupancies in Cape Town have recovered following an oversupply that resulted from a building boom around 2010.
However, members of the hotel sector have cautioned that new hotel developments could lead to another oversupply and dip in occupancies. Guy Stehlik, CEO of BON Hotels, says there are currently six new projects earmarked for Cape Town over the next two years. He believes they are “dangerously flirting with a repeat of the oversupply scenario of the past eight years”.
Do you think Cape Town is at risk of an oversupply? Let us know by voting in the poll to the left of the screen.
Last week’s poll: Arrival figures – good or bad news?
In last week’s poll, we asked readers what they thought the arrival stats showed about SA’s tourism performance. The results showed that the majority of readers do not have faith in the stats – 75% said that until Stats SA properly defined transit travellers, a proper analysis was not possible. Only 3% of readers said SA's tourism industry was performing well, with growing arrival figures. The rest were evenly split – 11% said SA should be concerned about a decline from its largest source market (the UK) and 11% said it was worrying that SA's growth rate was lagging behind the continent.
