South African Hotel Managers Optimistic of Continued Growth After the World Cup
A recent survey of Hotel Managers in South Africa by Horwath HTL, the World’s largest firm of hotel consultants, shows that they are optimistic about growth continuing after the World Cup.
The survey, which is run on a quarterly basis, asked 86 hoteliers to forecast the likely market demand in their hotels for the next quarter, compared to the same period last year. The information is then analysed on the basis of size, star rating and location to achieve the most balanced results.
Overall, 79% of Managers thought that Average Room Rate would stay the same or increase (57% thought it would increase) and the same number thought that Occupancy levels would stay the same or increase, (39% increase, 40% stay the same). Altogether 84% of respondents think that Total Revenue in their hotels will increase or stay the same (60% increase, 24% the same).
Broken down by star rating, all four categories felt confident that Average Room Rate would increase, with the 3 Star and 5 Star segments standing out as the most confident. The majority of respondents from the 3 and 5 Star segments predicted a rise in Occupancy with the majority of responses from both the 1-2 Star and 4 Star properties leaning towards Occupancy levels either remaining static or falling.
Michele de Witt, Director of Horwath HTL South Africa who is responsible for the survey said, “It is encouraging that so many participants feel confident about the immediate future. There was uncertainty in the press and the market before the World Cup about the event, and whether or not Hotels would cope with the demand. As it turns out, those fears were never realised. It’s too early to tell what the lasting legacy will be, but the early signs are promising”