Market Trends of Hospitality Industry in South Africa
This section covers the major market trends shaping the South Africa Hospitality Market according to our research experts:
Growth in Tourism Sector in South Africa is Expected to Outpace Hospitality Industry
South Africa has been gaining more significance as the leading convention destination in the continent as Cape Town, which is known as the Events Capital of Africa, was listed as one of the top 50 convention cities across the globe. According to the World Travel & Tourism Council (WTTC), South Africa's travel and tourism GDP is expected to drive the country's economic recovery over the next decade. According to the WTTC's Economic Impact Report (EIR), the South African Travel & Tourism sector is expected to grow at a 7.6% annual rate over the next decade, far outpacing the country's overall economic growth rate of 1.8%. By 2032, the sector's contribution to GDP could reach more than ZAR 554.6 billion (7.4% of the total economy), injecting nearly ZAR 287 billion into the national economy. The sector is also expected to create more than 800,000 jobs over the next decade, to reach more than 1.9 million by 2032.
Advancements of Technologies in the Hospitality Sector is Propelling the Market
Like their global counterparts, South African hotels are accelerating technology adoption to meet customer-driven demand in the hospitality sector. Although, the COVID-19 pandemic hard hit the hospitality industry. However, this allowed business introspection and the acceleration of innovation and technology. With the industry showing signs of an uptrend, there are opportunities to capitalize on prevailing trends through these technologies' continued, enhanced use. Hotels are implementing technology that is transforming the consumer experience. Certain technologies result in major benefits and cost reductions in the hospitality industry. The use of near-field field communication (NFC) advanced technologies, infrared technologies, and robots are by far the most important trends in this market. Hotel owners and operators are investing in systems and technologies that automate processes and personalize the guest experience. For instance, in 2021, the Hotel Sky in Johannesburg was the first African hotel to employ robots. It is the first hotel in Africa to use automated attendants. Incorporating technology in the hotel industry is expected to increase the number of visitors in South Africa. This is expected to surge growth in the hospitality industry.
