This has been revealed by Stats SA’s December 2022 tourist accommodation report, which found that accommodation income increased by 46.7% compared to the fourth quarter of 2021, and hotels were the biggest contributors.

Hotels contributed 63.3% to this figure, which translates into R3.5bn in monetary terms, while other accommodation contributed 33.4%, translating into R2.8bn.

The figures for December 2022 are equally positive.

The first festive season since the start of the pandemic without Covid-19 restrictions in place, the report shows a strong recovery of 43.5% compared to the year before.

Income was derived from a 19.9% increase in the number of stay unit nights sold and an increase of 19.7% in the average income per stay unit night sold. Here, the biggest contributor was once again hotels at 62.8%, while other accommodation contributed 27.8%.

In terms of hotel occupancy rates for December, Stats SA reported occupancy levels of 41.1%, however, the Federated Hospitality Association of South Africa’s (Fedhasa) national chairperson, Rosemary Anderson, says their members reported significantly higher occupancy levels, of an average of 65%, with many hotels very close to pre-Covid levels and a number exceeding 2019 room occupancy rates.

Included in the December report, the latest food and beverage stats reveal that in the fourth quarter of 2022, total income increased by 13.4% compared to the fourth quarter of 2021. This translates into R18.5bn, with the main contributors being restaurants, coffee shops and catering services.

December 2022 saw an increase of 14.2% compared to the previous year, with the most significant annual growth rates being bar sales at 25.5% and food sales at 13.6%.

Key takeaways for tourism

Indications are that growth and recovery are continuing, although tourism has yet to recover to pre-Covid-19 levels. Several challenges are constraining growth, chief among them the electricity crisis, which is putting pressure on hospitality businesses of all sizes.

“Food and beverage is not showing growth at the level we had hoped. In addition to load shedding, other impediments include the higher cost of living and food inflation,” says Anderson.

Courtesy of Bizcommunity – read full article here.