South Africa: Western Cape finance and economic opportunities on tourism post pandemic

Data from the South African Hotel Review, complied by STR, which gathers data directly from hotels across South Africa, has confirmed that hotel occupancy for the Western Cape stood at 72% in December 2022, representing a full recovery rate of 106% when compared to December 2019 (68.1%).

The report further states that in December 2022:

• The Average Daily Rate (ADR) for hotels in the Western Cape grew to R2 302.37, exceeding December 2019 levels, recovering to 114%;
• Revenue Per Available Room (RevPAR) for hotels in the Western Cape reached R1 657.17, recovering by 121% against December 2019; and
• With respect to year-on-year growth, RevPAR in the Western Cape increased by a remarkable 74%compared to December 2021.

“As more and more data and insights on the performance over our summer season emerge, the more excited I get that our expectations for a bumper season may be confirmed and, in some cases, exceeded” said Minister for Finance and Economic Opportunities, Mireille Wenger.

Wrenelle Stander, Wesgro CEO, said: “I am pleased that the latest hotel data indicates that Western Cape tourism growth has surpassed pre-pandemic levels. The positive hotel occupancy figures follow the data we’re seeing emerge from Airports Company South Africa (ACSA), which shows that Cape Town International Airport’s domestic terminal recorded a year-high of 570 000 two-way passengers for December. International passenger performance hit 96% last month – compared to December 2019 – with 270 000 two-way passengers passing through the terminal. These positive figures indicate that the province is on a growth trajectory and Wesgro is confident that this will continue upwards into the remainder of the year.”

Minister Wenger continued: “I am keenly watching out for further confirmation of a bumper summer tourism season, including forward booking numbers as we hope to attract even more domestic and international visitors to our destination so we can move from recovery to impressive growth in tourism.”

“More visitors mean more jobs and so we will continue to work hard to ensure that Cape Town and the Western Cape’s tourism economy continues to grow in the months ahead” concluded Minister Wenger.

source: Travel Daily News