The local tourism industry is truly on a path to recovery as income from tourist accommodation continues to increase though it was still falling short of pre-Covid numbers.
Data from Statistics South Africa (Stats SA) on Wednesday showed that the total income for the tourist accommodation industry increased by 191.6% in July compared to the same month last year.
Stats SA said that income derived from the tourist accommodation sector rose sharply year-on-year on base effects, intensified by the riots and unrest that took place during July 2021.
Tourism activity was severely affected by the political unrest that took place in KwaZulu-Natal, one of South Africa’s popular tourist destinations, which saw shopping malls, industrial parks and other business places vandalised and set alight.
This was coupled with the tighter lockdown restrictions imposed during that period as the prohibition on interprovincial leisure travel to and from Gauteng weighed heavily on the already battered sector.
However, a year later the industry has put this unfortunate period in the past and is trying to pick up the pieces.
Stats SA said income from accommodation increased by 140% year-on-year in July, following June’s 61.4% year-on-year rise, buoyed by a 116% surge in the number of stay unit nights sold and a 10.8% increase in the average income per stay unit night sold.
In July, all accommodation types recorded positive year-on-year growth in income from accommodation but a disaggregation of the headline reading indicates that the hotels segment of the market was largely responsible for the notable uptick.
Hotel occupancy rates picked up significantly, recording an occupancy rate of 35.6% in July, up from 32.9% in June, though they remained below pre-Covid levels.
South African hotels saw income from accommodation increase by 81% in the three months to July, compared to the same period last year.
During this tourism month, the government has placed strong focus on recovery and rebuilding the sector through initiatives to revive domestic tourism, saying that it was critical in the recovery of the sector that contributes greatly to South Africa’s GDP and job creation.
South Africans have been encouraged to travel and explore their country to help revive the sector as well as to promote nation-building and social cohesion through the iconic Sho’t Left campaign.
At the recent tourism conference this month, industry stakeholders agreed that the sector was on the right path to recovery after it was severely battered by lockdown restrictions.
Meanwhile, Stats SA said that tourist arrival numbers were also up notably as indicated by the tourism and migration figures from January-July as the number of ‘overseas’ tourists entering the country rose by 430.3% when compared to the same period last year.
Visitors from Europe made up the largest share of overseas travellers, specifically those from the UK, while the number of tourists from North America has also increased notably.
The industry has, however, revised downwards its annual target for 21 million international tourist arrivals to 15.6 million by 2030 after the pandemic shaved off more than two years of activity.
Investec economist Lara Hodes said while domestic travel remained imperative and would continue to support the tourism industry, international tourism spend was vital for many domestic operators.
Hodes said South Africa’s tourism industry had a way to go before it returned to pre-pandemic levels and continued to face a number of headwinds.
“Indeed, capacity constraints and heightened costs continue to plague the airline industry, while heightened load shedding and logistical constraints impede local operators,” Hodes said.
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