South Africa’s tourist accommodation industry recorded a significant 14.1% increase in total income in September 2023 compared to the previous year, and much of the robust recovery can be attributed to hotels.
Hotels help tourist accommodation industry into recovery
The tourist accommodation sector in South Africa has shown a promising recovery in 2023.
Industry Growth Overview
This uptick is especially evident in the income generated from accommodation, which saw an 18.4% year-on-year increase in September 2023.
This growth, Stats SA found, is attributed to a combined effect of a slight increase in the number of stay unit nights sold and a more substantial rise in the average income per stay unit night sold.
Major Contributors to Growth
Hotels have been significant contributors to this growth, marking a 16.0% increase and adding 10.1 percentage points to the overall rise.
Accommodations categorised as ‘other’, which includes various forms of lodgings, also showed a notable increase of 24.7%, contributing 7.4 percentage points.
The revenue statistics paint a clear picture of the industry’s recovery.
Hotels witnessed a leap from R3.79 billion to R4,7 billion, marking a 25.6% increase. Meanwhile, caravan parks and camping sites saw their income rise by 19.8%, from R48.9 million to R58.6 million.
Guest houses and guest farms experienced a more modest growth of 2.3%, and other types of accommodation reported a 27.1% increase in their revenue.
Quarterly and Monthly Performance
The third quarter of 2023 was particularly strong for the industry, with a 24.6% increase in accommodation income compared to the same quarter in 2022.
Delving into monthly performance, hotels showed a steady growth in occupancy rates, reaching 47.4% in September 2023. The average income per stay unit night for hotels was R 1 497.10 in the same month, while caravan parks and camping sites achieved an average income per stay unit night of R 1 165.70.
