A focus on business tourism is the key to unlocking the full potential and profits of Africa's hotel rooms.
PwC’s ninth edition of the Hotels Outlook: 2019-2023 was recently released and includes information about hotel accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania.
Hospitality Industry Leader, PwC Southern Africa, Pietro Calicchio says: “While leisure is an important component of the tourism industry, governments are taking steps to develop more diverse initiatives, fueled by business tourism and conferencing. Business tourism is a critical component to the growth of African economies – business events are increasingly being held in a number of diverse locations across the continent."
In SA hotel room revenue rose only 0.5% in 2018, its smallest increase during the past six years.
And growth is expected to pick up beginning in 2019 and is forecast to expand to R19.7 billion in 2023, up 3.3% compounded annually, from R16.7 billion in 2018.