South African Accommodation Industry Shows Promising Growth in July 2023.
July 2023 continued the growth trend when comparing to July 2022, based on the STR report South African Overview Report the combined accommodations occupancy for July was 60.3% which is a year-on-year increase of 7.45% when comparing to that of July 2022. This surge in occupancy signifies growing demand and interest in the country’s hospitality offerings.
One of the standout achievements in July 2023 was the ADR of South African accommodations. In comparison to the rates recorded in July 2022, the ADR in July 2023 was R139.89 higher, representing a remarkable year-on-year increase of 11.67%. This growth in ADR emphasizes the industry’s ability to not only attract more guests but also command higher prices for their services. With the advent of the peak season just around the corner, there is an expectation of continued growth and rate increases throughout the remainder of 2023. As more visitor’s flock to South Africa during this period, accommodations across various regions are likely to benefit from increased demand and subsequently higher rates.
When comparing the performance of the South African market in 2022 to 2023, one might conclude that the industry is still in recovery. However, a closer look at the year-to-date performance in 2023 compared to the pre-pandemic figures of 2019 reveals that the South African market has not only fully recovered but also exceeded the revenue levels achieved before COVID-19.
Despite the challenges faced during the pandemic, the South African market has demonstrated remarkable resilience. The year-to-date performance for 2023 has shown substantial growth, surpassing the revenue figures recorded in 2019. This exceptional rebound not only signifies a recovery but also highlights the industry’s ability to thrive in the face of adversity.
Although the currently occupancy year to date for is on average 0.91% less than that of 2019 the achieved ADR is currently reflecting a 17.35% increase when compared to that of 2019 resulting in a higher RevPAR and ultimately more profitability.
Comparing the performance of 2023 to that of the pre-pandemic year, it becomes evident that the South African market has achieved remarkable success. The revenues generated in 2023 have surpassed the figures attained in 2019, indicating a significant expansion of the industry. This achievement is a testament to the determination and adaptability of businesses within the South African market.
The South African hotel performance is showing great results and has never been more subject to growth potential than before, are you ready to maximize on the next wave of demand?