CONTENTS SHOW HIGHLIGHTS PARTNERS SHOW REGIONS ABU DHABI PARTICIPATING EXHIBITORS SOUTH AFRICA I SUB-SAHARA AFRICA I INTERNATIONAL I TRAVEL TECH SHOW I AROUND THE SHOW & RESPOSIBLE TOURISM


of visitors that are projected to arrive in the coming years.


SOUTH AFRICA


For example, OR Tombo International Airport in Johannesburg is Africa’s busiest airport, serving 19 million passengers a year – with capacity already in place to take many more. In terms of income generated, overseas visitors from countries such as the UK, China, Germany and other European countries are the biggest spenders, compared to other visitors from the African region who make up the bulk of arrivals in South Africa. As is the case elsewhere in the world, technology is playing an increasingly important part in the travel industry is South Africa, Euromonitor says. The increased presence of smartphones in South Africa has led to an increase in overall online sales for tourism products and services for both local and international visitors. Suppliers of tourism services have embraced


this trend by developing mobile applications which provide various services or information for travellers.


The world in one country


An impressive number of inbound and outbound travel industry professionals from the host country are waiting to do business in the South African region of WTM Africa 2016. Meet major hotel brands, game reserves, tourism boards and marketing representation companies, among other exhibitors, who are keen to introduce visitors to this wonderful country.


You only have to do a quick online search for South Africa and the adjectives that come up for this fascinating country underline exactly why it’s on many a traveller’s wish-list. Words such as ‘iconic’ and ‘epic’ regularly come up. ‘The world in one country’ is another description for this vast destination, the 24th largest in world by land and sea. Not surprising, then, that Euromonitor


International’s latest Industry Overview named South Africa as one of the most preferred destinations among tourists – both inbound


wtmafrica.com and domestic.


As well as its huge range of attractions, covering wildlife, adventure, forward-thinking cities and magnificent coastlines, Euromonitor says South Africa is also considered a value-for-money destination due to its highly competitive tourism market in terms of tourism products and services available. Competition continues to be stimulated by increased support from the South African government and infrastructure is already in place to welcome an increased number


Smartphone devices also help tourism services suppliers to keep in touch with their customers through social media channels as these continue to grow as an effective marketing tool for various businesses. For a country that attracts so many visitors for its wildlife, game reserves and eco-tourism, the caravan/camping site, bush lodges and other accommodation market (such as bed and breakfast, lodges and self-catering establishments) is hugely important. This segment attracts young people in the


leisure market who often spend more time in South Africa than other tourists and also appeals to families who go camping and to people from lower income levels, as room rates are relatively low at ZAR 505 on average. Stay unit nights rose 10% in 2014, accounting for most of the growth in overall stay unit nights for the accommodation market as a whole. Average room rate growth, however, was only 2% in 2014, much lower than room rate growth in other sectors. Euromonitor expects stay unit nights will expand at a 2.5% compound annual rate and room revenue will increase at a 6.9% rate compounded annually to ZAR 5.4 billion in 2019 from ZAR 3.9 billion in 2014.


CONTACT THE TEAM


6-8 April 2016 Cape Town


The future of the South African accommodation sector


THREE-STAR HOTELS The three-star market is expected to see an increase in stay unit nights at a 3% compound annual rate by 2019. Occupancy is predicted to rise to 70.9% in 2019 from 63.1% in 2014. The average room rate will rise to a projected ZAR 1,125 in 2019, growing at a 5.6% compound annual rate, comparable to the projected 5.5% rise in consumer prices over that period. Room revenue in three-star hotels will expand at a projected 8.8% compound annual rate to ZAR 6.5 billion in 2019 from ZAR 4.3 billion in 2014.


FOUR-STAR HOTELS Available rooms and stay units nights were both flat for four-star hotels in 2014. As with three-star hotels, revenue growth for four- star hotels was generated by an increase in the average room rate, which rose 5.3% to ZAR 4.7 billion.


The number of available rooms is expected


to grow only 0.8% compounded annually, resulting in an increase in the occupancy rate from 62.5% in 2014 to 70.8% in 2018. Average room rates are expected to


increase at a 5.5% compound annual rate, keeping pace with projected inflation, to an estimated ZAR 1,565 in 2019. Room revenue will increase from ZAR 4.7 billion in 2014 to ZAR 7.2 billion in 2019, a 9.0% compound annual gain.


FIVE-STAR HOTELS


Five-star hotels had the highest occupancy rates in the market at 70.7% in 2014, yet accounted for only 5% of all hotel rooms – with availability dipping 3.1% or by just under 100 rooms in 2014.


The five-star hotel market is expected to continue to grow faster than the rest of the market, in large part reflecting above average rate increases of 7.2% compounded annually. Occupancy rates are expected to rise to a projected 80.6% in 2019 and the average room rate will reach ZAR 3,110. Five-star hotels will increase their share of the market to 16% by 2019.


GUEST HOUSES AND GUEST FARMS The guest house and guest farm market was the best performing sector in 2014. Room revenue rose 19.5% driven by a 14.1% increase in the average room rate and 4.8% growth in stay unit nights. Room rate growth is expected to slow to a more modest 7.1% rate compounded annually, rising to ZAR 1,200 in 2019 from ZAR 850 in 2014. Overall room revenue will rise from ZAR 1.9 billion in 2014 to ZAR 3 billion in 2019, a 9.9% gain compounded annually.


Source: PricewaterhouseCoopers Hospitality Outlook 2015-2019


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