Despite South Africa’s weakened economy, its hotel industry is set for steady growth in the next five years, with both rooms and occupancy levels expected to rise, according to a report released by PricewaterhouseCoopers (PWC). The growth is driven by an increase in the number of foreign visitors to the African continent. “Although the South African economy has weakened considerably, the overall outlook for hotels in South Africa is expected to remain positive,” said Pietro Calicchio, Industry Leader of Hospitality & Gambling at PWC Southern Africa.
According to the report, the outlook for South Africa between 2016 and 2020 is positive. “There are a number of major hotels expected to open in the next five years and several others are in the planning stage. The number of available hotel rooms are projected to rise at a 0.8% compound annual rate to 63 700 in 2020 from 61 100 in 2015,” says the report. “It is promising to see a growing number of new hotels that are planned for the South African market over the next five years. We are forecasting an additional 2 600 hotel rooms to be added over the next five years,” says Calicchio.