FEDHASA is buoyed by the latest data from StatsSA, which shows a 12.1% increase in total income for South Africa tourism accommodation sector in January 2025 –
When compared to January 2024.
The survey covered the following:
- Hotels, motels and inns;
- Caravan parks and camping sites
- Guest-houses, guest-farms and other accommodation
- ‘other’ accommodation.
Overall, the accommodation industry recorded a 16.7% increase in income year-on-year, driven by an increase of 4.5% in occupancy and a 11.7% increase in average revenue per stay. The hotels were the top performers, contributing 14.1% of this growth through a 24.6% revenue increase.
Rosemary Anderson said, “These positive trends are a reflection of growing traveler confidence, a strong demand for accommodations, and a resilient tourism sector. It’s been a busy season for accommodation, and we are pleased to see that the hard work has paid off! We are encouraged by the steady increase in international arrivals, and the increased spending within the accommodations industries. It’s great for our member and critical for the overall industry!”
The quarterly figures confirm this upward trend, with the accommodation income for the three-month period ending January 2025 increasing by 14.1% compared to last year’s same period.
Anderson expressed optimism that the Department of Home Affairs’ initiatives – aimed at streamlining entry into South Africa for the world’s two fastest-growing tourism markets, India and China – along with visa reforms, digital transformation, and an enhanced marketing strategy by SA Tourism, will help South Africa finally exceed its 2019 inbound tourism numbers. In 2025, the expected growth will be driven by increased air connectivity and strategic partnerships between key international markets.
The latest data from the food and beverage industry suggests a less optimistic scenario. There is a clear division in consumer spending patterns that reflects the financial strains on many local households.
Takeaway and fast food outlets contributed 2.8 percentage point to the overall rise. The growth rate was slowed by 2.0 percentage points due to the decline in restaurants and coffee shops. This suggests that many consumers are cutting back on spending as disposable incomes decline. Choosing to eat out rather than ordering take-out food.
Short-term trends show a sluggish pace in the sector. The seasonally adjusted income rose just 0.1% from December 2024 to January 2025, after a 1.3% growth in December, and a slight drop of 0.5% in Novembre. These figures confirm the increasing preference of consumers for cost-effective solutions to dining in times of economic pressure.
FEDHASA, as the voice of the hospitality industry in South Africa, continues its close collaboration with industry stakeholders, to help the sector gain momentum and overcome remaining challenges.
