The hospitality landscape in South Africa is experiencing a significant turnaround as the latest data from StatsSA reveals a remarkable uptick in the tourism accommodation sector.

The data revealed that in January 2025, the overall income from this sector surged by 12.1% compared to the same month in the previous year, showcasing a revitalisation as the country strides beyond the pandemic's shadows.

This comprehensive survey, which encompasses a variety of accommodation types including hotels, motels, inns, houseboats, caravan parks, camping sites, guest houses, guest farms, and other accommodations, highlights an impressive 16.7% year-on-year increase in income.

This growth can be attributed to a 4.5% rise in occupancy rates, and an 11.7% increase in average income per stay. Hotels led the charge, accounting for an astounding 24.6% increase in revenue, contributing 14.1 percentage points to the overall growth.

“These positive trends reflect growing traveller confidence, strong demand for accommodation, and a resilient hospitality sector,' expressed Rosemary Anderson, national chairperson at FEDHASA.

"It was a busy accommodation season, and we’re pleased to see the hard work has paid off! We are encouraged by the steady rise in international arrivals and increased spending within the accommodation industries. It’s great for our members and critical for the industry overall," Anderson noted.

The quarterly figures further emphasise this positive trajectory, revealing a 14.1% increase in accommodation income over the three months ending January 2025 when stacked against the same period last year.

This consistent growth signals that the recovery is not only a fleeting moment but potentially a lasting improvement.

Looking ahead, Anderson is optimistic that recent initiatives from the Department of Home Affairs (DHA) - designed to streamline entry processes for travellers from India, and China, two of the world’s fastest-growing tourism markets - will further bolster this growth.

Along with proposed visa reforms and an enhanced marketing strategy from South African Tourism, coupled with improved air connectivity, these strategies are poised to propel SA to exceed its inbound tourism figures from 2019.

In contrast, the food and beverage sector appears to be navigating a more challenging path.

While the overall sector reported a modest 1.8% income boost for the three months ending January 2025, compared to the previous year, an analysis indicates a stark disparity in consumer spending.

Growth within the food sector was largely fuelled by takeaway, and fast-food establishments, which enjoyed a strong 7.4% increase, contributing 2.8 percentage points to the overall income rise.

Meanwhile, traditional dining venues like restaurants, and coffee shops suffered a 4.0% decline, negatively impacting the overall growth by 2.0 percentage points.

This shift underscores a growing trend of consumers leaning towards more affordable takeout options as financial pressures mount.

The data also points to sluggish momentum in the food sector, with seasonally adjusted income rising by a scant 0.1% in January 2025, compared to December 2024.

Following a 1.3% increase in December and a slight decline of 0.5% in November, these figures highlight the pressing need for both awareness and adaptive strategies among food industry operators, as consumers increasingly gravitate towards budget-friendly dining solutions amidst economic constraints.

Despite these challenges, Anderson highlighted that the body remains unwavering in its commitment to collaborating with industry stakeholders to maintain momentum and address ongoing issues, ensuring that the hospitality and food sectors can effectively navigate the evolving landscape ahead.

fedhasa

Tourism accommodation sector in South Africa sees outstanding growth as pandemic recovery gains momentum