More guests are travelling again, but hotels and hospitality businesses are under pressure. Costs are rising. Skilled staff are hard to find. Many upgrades are on hold.

South Africa’s hospitality sector is seeing stronger travel demand, but many operators are under pressure behind the scenes. A recent industry report shows that hotels and hospitality businesses are dealing with rising costs, staff shortages, and delays in upgrading their properties. Many businesses say profits have stayed flat or dropped over the past few years, even as guests return.

Staffing remains a key concern. Operators are struggling to find and keep skilled people, and many feel new graduates are not ready for the job. Costs such as labour, electricity, and food continue to climb, making it harder to plan and invest. As a result, many hotels have postponed upgrades that could improve service and efficiency.

Despite this, there is a clear appetite to invest in people, tools, and better ways of working. Hospitality businesses are looking for practical solutions that help them manage costs, train staff, and run smoother operations.

Source: IOL Business Report
https://www.iol.co.za/business-report/economy/2026-02-06-south-africas-hospitality-sector-faces-mounting-pressures-despite-rising-tourism-demand/