Cape Town – Cape Town’s on-going water crisis did little to deter hotel room occupation in the Mother City over the last year.
This is according to the latest findings of the 2018 African Hotel Valuation Index (HVI), which shows that in spite of the drought, hotel room values in the province increased by 25% in 2017.
According to the results, the South African and African hotel markets have been evolving rapidly, growing on the back of the positive effects of economic growth, foreign investment and political stability in a number of countries on the continent.
Tim Smith, Managing Partner at independent global hospitality consultancy firm HVS, said Cape Town International Airport also experienced a growth of almost 10% in international travelers from January to March 2018 – compared to the same period the year before.
“Cape Town’s recovery in the coming years is expected because of a stronger economy, the recent announcement that there would be no ‘Day Zero’ for 2019 if water restrictions are adhered to and an anticipated faster growth in foreign and domestic tourism,” said Smith.
He added that to ensure continued support from local travelers in particular, hoteliers needed to start maximising the markets closer to home by appealing to local interests.
“The ability to better cater to local guests is becoming increasingly important for hotel brands and independent operators across the African continent, with menus, language and culture all being key to welcoming more African guests,” said Smith.
The fifth edition of the HVI analysed the hotel values of 26 markets operating in 19 African countries. The Index surveyed in excess of 75000 existing and 11500 proposed rooms in the upper mid-market and higher space.
“Increase in regional tourism – both business and leisure – improving air connectivity across the continent, evolution in politics, increased room night demand and domestic consumption are all positive steps in the right direction for the fast-developing continent,” said Smith.