Hospitality Industry in South Africa Market Size (2024 - 2029)

Hospitality in South Africa Market Analysis

The Hospitality Industry in South Africa Market size is estimated at USD 1.36 billion in 2024, and is expected to reach USD 1.68 billion by 2029, growing at a CAGR of 4.43% during the forecast period (2024-2029).

South Africa has been of the top tourist destinations in the African continent. However, the COVID-19 pandemic has had a severe economic impact on South Africa's hotel sector, with several hotels facing bankruptcy and permanent closure. As governments implemented extraordinary measures to contain the virus, such as travel restrictions and physical separation, the hotel industry halted during the pandemic. Job losses, reduced pay, and layoffs have all had a significant impact on employment. Concerns for hotels include cash flow, travel restrictions, guest cancellations, low consumer spending, and the industry's overall economic uncertainty during the COVID-19 pandemic. However, the measures were lifted in April 2022, and the tourism industry has started recovering. As per the Bureau for Economic Research, since all COVID-19 restrictions have been lifted, there has been an increase in the number of patrons from the previous quarter, which caused this growth in the hospitality sector in South Africa in 2022.

The hospitality industry in South Africa is emerging, with a rising number of travelers visiting the country for business and leisure purposes. According to Stats SA, in the ports of entry and exit into and out of South Africa in April 2022, 1,696,851 travelers (arrivals, departures, and transits) passed through South African ports of entry/exit. A comparison of movements in April 2021 and April 2022 shows that the volume of arrivals, departures, and transit travelers increased for South African residents and foreign visitors. Arrivals grew by 145.4% for South African residents (from 117,557 in April 2021 to 288,430 in April 2022). To accommodate rising travelers, the hospitality industry is expanding rapidly in the country and is scoring dynamic key performance indicators. Africa is at around 2.8 million for 2020 and 2.5 million for 2021, far from the 2019 figure of 10.2 million, let alone the projected figures for the two respective years had the pandemic not occurred. Furthermore, the growth of hotel rooms and keys is growing, with an additional 3,500 rooms, which will be added in the coming years. Short-term home rentals like Airbnb have been growing rapidly in the region.

Hospitality in South Africa Industry Segmentation

South Africa is geopolitically unique, with natural and cultural diversity that supports a globally compelling tourism proposition. The country has a sizable tourism industry and is one of the world's most popular long-distance destinations. The market is segmented by Type (Chain Hotels and Independent Hotels) and Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels, and Luxury Hotels). The report also covers a complete background analysis of the hospitality industry in the South African market, including the assessment of the economy and the contribution of the sectors in the economy, a market overview of key segments and emerging trends in the market segments, market dynamics, insights, and key statistics. The report offers market size and forecasts for Hospitality Industry in South Africa in value (USD million) for all the above segments.