Business 5.7.2018 12:11 pm

Africa hotel sector offers potential for further growth over next 5 years – PwC

The Ritz Hotel in Sea Point. This picture is used for illustrative purposes only. Picture: Supplied

The Ritz Hotel in Sea Point. This picture is used for illustrative purposes only. Picture: Supplied

PwC says South African hotel room revenue is expected to expand to R21.8bn in 2022, up 5.6% from R16.6bn in 2017.

Africa’s hotel sector has the potential for further growth over the next five years, with an increase in the number of foreign and domestic travellers, as well as an expansion in a number of hotel chains on the continent, reinforcing the industry’s untapped potential, a report by PricewaterhouseCoopers (PwC) showed on Thursday.

The report says South African hotel room revenue is expected to expand to R21.8 billion in 2022, up 5.6% from R16.6 billion in 2017. The total number of travellers in South Africa is expected to reach 19.5 million, an increase of 4% from last year.

“Overall, room revenue in South Africa is expected to expand at a 5.6% compound annual rate to R21.8 billion in 2022,” it said.

While the fundamentals affecting tourism to South Africa remained favourable, helped by an improving global and local economy, it was negatively affected by other factors such as the water shortage in Cape Town, the country’s tourism capital, added PwC.

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