Hotel room revenue in South Africa is expected to reach R21.8 billion (about US$1.6 billion) in 2022, according to a recent PwC report.
This is a 5.6% increase annually from R16.6 billion (about US$1.23 billion) in 2017.
The growth in hotel rooms in South Africa remains similar to that forecast in the 2017 Hotels Outlook with an additional 2 900 rooms to be added over the next five years, the report said. International visitor numbers to South Africa continued to grow with a 2.4% increase overall, the report pointed out, adding that the outlook for 2018 remains positive albeit at lower percentages than experienced in 2016.
The PwC report, its 8th edition of the Hotels outlook 2018-2022, includes information about hotel accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania. The report projects that hotel room revenue for the five markets as a group will increase at a 7.4% compound annual rate to R50.5 billion (about US$3.75 billion) in 2022 from R35.2 billion (about US$2.61 billion) in 2017.
The total number of travellers in South Africa is expected to reach 19.5 million by 2022, a 4% compound annual increase from 16 million in 2017.
“Tourism to the African continent has proven to be resilient in the face of economic and political uncertainty, impacts of droughts and other regulatory changes,” Pietro Calicchio, PwC Hospitality Industry Leader for Southern Africa, said in a statement.
“The opportunities are aplenty for this industry to enjoy further growth albeit at a more modest pace. However, as we continue to see there are also a number of challenges facing each country. This is an industry that is reactive to the smallest change in political, regulatory, safety and sustainability matters.
“There is also continued debate on further relaxation of visa requirements for international visitors and this may impact on our forecast growth,” Calicchio added.