By Bob Kernohan

The Eastern Cape has been identified as a key target for the increasing demand from up-country and international investors to buy properties in the growing tourism industry.

The relatively new sector in property sales has accounted for R4,2-billion in turnover for the Pam Golding group, which has opened a specialist office in Mandela Bay to concentrate on these opportunities.

“We are experiencing an increasing trend among domestic and global investors seeking lifestyle purchases in areas offering a better quality of life away from high-crime areas,” company hospitality division chief executive Joop Demes said yesterday.

The trend was spreading to the Eastern Cape, particularly among Gauteng business people, but with increased interest from overseas investors.

“Boutique hotels and top-level guest houses enable new owners to combine an improved lifestyle in a better environment with earning potential, but the prime motivation, we have found, is generally the lifestyle aspect.”

Demes said the hospitality division had achieved successes in the region, having facilitated one of the largest hospitality transactions ever in the Eastern Cape with the sale of Shamwari, Sanbona and Jock Safari Lodge to Dubai World.

Other major transactions involving Middle East clients were the sales last year of the former Edward Hotel in Port Elizabeth and the Blaauwbosch Game Reserve, near Jansenville.

“The strong interest in the region is fuelled by good growth in the hospitality industry, with last year‘s overall occupancy in the Eastern Cape at 76,7 per cent,” said Demes. The standard measure of “revenue per available room” (revpar) rose by 10,8% last year compared to 2007.

“The region has also had an exceptional start to the new year with January, 2009, revpar up by 20,6% when compared with January last year.”

Louis van Niekerk, who heads up the hospitality division‘s new Port Elizabeth office, said the 2010 World Cup would be an opportunity for the region to draw repeat visitors.

“The event will provide a short-term injection, but, from that, sustainability and growth will be attained due to future diversified commercial economic activity in the region.”

Van Niekerk said the office would serve a 300km radius from Port Elizabeth.

Source: Weekend Post