South Africa’s spending on hotel rooms reached $1.6-billion in 2013

South Africa’s spending on hotel rooms reached $1.6-billion in 2013

The overall spending on rooms in South Africa in all categories rose by 14% to R17.3 billion (about US$1.6 billion) in 2013, reflecting an increase in stay unit nights and an 8.4% rise in the average room rate, according to a report published last week by PricewaterhouseCoopers (PwC).

The pick-up in hotel occupancy rates has stimulated new activity in the industry, with a number of major hotel chains in the process of upgrading facilities, renovating their properties or making plans to open new hotels, the report explained.

The report, titled ‘South Africa’s Hospitality Outlook: 2014-2018’, estimates that by 2018 there will be about 63 600 hotel rooms available up from 60 900 in 2013.

Nikki Forster, PwC hospitality and gaming leader of, said: “Although South Africa’s economy has weakened, growth in international travel and tourism and rising room rates have bolstered the hospitality sector.”

The PwC report also forecasts the following:

•    Overall room capacity is projected to increase at a 1.3% compound annual rate to 123 400 in 2018 from 115 700 in 2013.

•    Guest houses are expected to be the fastest-growing category in respect of the availability of rooms averaging 3.7% compounded annually, with slower growth in other areas.

•    Hotels’ share, which accounted for 71% of total accommodation revenue in 2013, is expected to rise to 73% by 2018.

Photo: The Centurion Lake Hotel near Pretoria, South Africa. Credit:


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