Survey shows tourist accommodation industry continues to gradually recover

From left to right: Mayco member for economic growth James Vos, Cape Town Tourism (CTT) chief executive Enver Duminy, Visit Berlin managing director Burkhard Kieker and CTT chairperson Brett Hendricks. Picture supplied

From left to right: Mayco member for economic growth James Vos, Cape Town Tourism (CTT) chief executive Enver Duminy, Visit Berlin managing director Burkhard Kieker and CTT chairperson Brett Hendricks. Picture supplied

Published Jun 7, 2022

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Cape Town - As Covid-19 fears recede among tourists and other travellers, the latest Stats SA release for the tourist accommodation industry shows that the sector continues to gradually recover.

The sector was one of the hardest hit by the pandemic shock as lockdown restrictions and loss of confidence drove business and leisure travel down sharply.

The statistics showed that income from accommodation increased by 83.3% in the first quarter of 2022 compared with the first quarter of 2021.

The main contributors to this increase were hotels and other accommodation, including Airbnb stays.

Statistician-General Risenga Maluleke said that measured at current prices, the income for the sector increased by 110.6% in March 2022 compared with March 2021.

“Income from accommodation increased by 87.6% year-on-year in March 2022, the result of a 48.7% increase in the number of stay unit nights sold and a 26.2% increase in the average income per stay unit night sold.”

Seasonally adjusted tourism accommodation income rose further by 11.4% month-on-month in real terms in March after increasing by a combined 3.8% in the first two months of the year.

However, Absa economist Miyelani Maluleke said: “Despite the encouraging gains in the first quarter of the year, business income in the sector remained 34% below its pre-pandemic levels, showing that the sector still has some way to go to reach full recovery.”

The statistics have been released as a new survey shows that the cost of living crisis is driving people across South Africa to become hosts on Airbnb.

Airbnb regional lead Velma Corcoran said: “As the cost of living crisis bites, people are looking for new ways to boost their income.

“Airbnb was born during an economic crisis to help people afford their homes and 15 years later, more families across South Africa are doing the same.”

The typical South African Airbnb host earns just over R26 000 by renting their space on Airbnb. This is equivalent to about one month’s additional pay for the average income earner.

The survey showed that the vast majority of hosts are “regular people”, and that 1 in 5 South African hosts work in either education, health care or hospitality.

Two-thirds are women and one quarter are over 60.

The survey said the rising cost of living was also pushing guests to seek more affordable family travel on Airbnb.

Meanwhile, a joint delegation from the City and Cape Town Tourism is in Berlin on a travel and tourism mission to attract more international visitors.

One of the high points of the mission is the signing of a partnership agreement with Visit Berlin, the destination marketing organisation for the German capital, which will result in a marketing “twinning” concept, driven by mutual benefits.

Mayco member for economic growth James Vos said: “Germany has long been a key source market for Cape Town, with the city enjoying a lively German-speaking community.”

mwangi.githahu@inl.co.za

Cape Argus