“The latest Confidence Index paints a vivid picture of a vibrant, positive industry in which the majority, at 80%, of hotel, bar and restaurant operators, along with industry suppliers are looking to the future with growing confidence and optimism,” says Margaret Peters, Event Manager for Hotel & Hospitality Expo Africa at dmg events South Africa.
“Many businesses have recovered from the pandemic and are entering a new growth phase encompassing greater technological development, increased access to financing and a focus on nurturing industry talent, whereby 55% of respondents now have systems to foster employee satisfaction and loyalty.”
Key among trends is implementing Artificial Intelligence (AI), where almost 1-in-4 businesses are reportedly using AI tools to enhance operations. AI offers a wave of innovation, transforming how businesses are operating and easing revenue management and security, among other operational efficiencies. “Rising interest in AI is part of a wider acceleration in digitisation, emerging during the pandemic, with early adopters seeing great results,” adds Martin Takacs, Global Sector Leader: Hotel and Leisure, Moore Global.
An overwhelming 92% of respondents say ‘bleisure’ accounts for a significant amount of customers. Business and leisure, or ‘bleisure’ tourists have become increasingly popular, fuelled by a mix of pent-up travel demand post-pandemic and growing remote working patterns. The greater emphasis on work-life balance is set to shape the tourism and hospitality industry even further over the next decade, with the value of the global bleisure market expected to more than double from 2022 levels to $731.4 billion globally by 2032, at a compound annual growth rate (CAGR) of 8.9%.
The Confidence Index provides a deeper understanding of emerging trends from those directly involved. “The intention is for the industry to have a point of reference of their peers,” adds Peters. This is ideal through the emergence of AI, alongside a more intense focus on Environmental, Social and Governance (ESG) factors amidst the search for customers in a more competitive market.
Some 89% of respondents believe ESG action is vital for the long-term success and viability of the sector, but there is still work to be done to see this take shape. Those that have implemented ESG measures, such as green or renewable energy as well as increased recycling acknowledge the business benefits, with 57% reporting a positive impact on customer satisfaction and loyalty.
The Confidence Index is the most comprehensive, authoritative, and up-to-date snapshot of the African hospitality industry. In its second year, put together by dmg & Kaoun and Moore Global, this new, annual research endeavour captures the evolving perceptions of the industry over time. Responses grew from 315 respondents in 2023 to 537 (+70%), with the number of African countries represented almost doubling from 17 last year to 30 this year. The Confidence Index added suppliers to the participating respondents for the first time this year, enabling this crucial segment of the industry to share its views.
The African continent is forecast to be the world’s second fastest-growing economic region this year, after Asia and it also has the world’s youngest and fastest growing population, set to reach 2.5 billion by 2050. A growing middle class and the emergence of megacities hosting more than 10 million people are anticipated, all of which will drive demand for hospitality.
“This growth will lead to an increasingly complex operating environment, particularly as digital transformation and modern measures can boost the bottom line and improve guest experiences,” adds Moore’s Takacs.
“The industry across Africa remains ambitious, optimistic, and determined to overcome challenges and embrace opportunities.”
The 2024 edition of the Hotel & Hospitality Expo Africa, taking place from 11-13 June 2024 at the Sandton Convention Centre will unite the industry to grow, network and thrive.
To download the Confidence Index, please click here.
About dmg events & Kaoun
dmg events have joined together with KAOUN International, the international event organizing company of the Dubai World Trade Centre (DWTC) to establish a joint venture company, dmg & KAOUN Ltd. This collaboration is aimed at organizing market-leading international events in high-growth geographies that are fueled by customer demand.
dmg & KAOUN are strategically leveraging their international infrastructure and existing brands such as GULFOOD Global, the world's largest F&B event hosted in Dubai and The Hotel Show hosted in Dubai, to create a synergistic portfolio of food, hotel, and hospitality events. This approach is designed to optimize the value proposition for customers while driving business growth in these and other key sectors.
About Moore Global
Moore is a global accounting, audit and advisory network of over 34000 people across more than 228 independent firms and 112 countries. Moore Global is ranked by the International Accounting Bulletin as the 11th largest accountancy network in the world.
Moore Global hotel and leisure sector group comprises network member firms with established track records of providing business advice to hotel, leisure and tourism owners and operators. Our understanding of key market drivers helps clients to add value to their business and gain a competitive edge.
Our sector experts specialise in industry-specific strategic and development advisory, working closely with owners, developers, financiers, operators, and other industry stakeholders. We produce quarterly global reports on key trends and performance indicators in the sector, based on an analysis of select leading international branded hotel companies.
We lead innovation in everything we do, promoting growth and cooperating with stakeholders, from credit institutions to innovative start-ups. We use our global reach, extensive local industry knowledge and networks, to identify practical solutions in every situation. Our member firms have a strong reputation for providing insightful and integrated advice to this dynamic sector.