By Julius Baumann

SA’s accommodation industry, particularly hotels, remained under immense pressure in the first quarter of the year as softer occupancy levels dragged down overall revenue.

The latest Tourist Accommodation Survey, released by Statistics SA yesterday, showed that total income for the accommodation industry declined 0,3% to R1,77bn in March this year compared to March last year. Average rates rose 4,3% year on year to R662,30 per room per night.

However, occupancies fell 5% to 1,65-million room-nights sold, despite a 2,4% year-on-year increase in available rooms to 112300.

Quarter on quarter, the hotel sector was hardest hit, declining 4,6% to R2,01bn in the first three months of the year.

Hotel occupancies in March declined to 54,2% from 57,2% at the same time last year, while rates were flat at R799 per room-night sold. Total income fell from R1,309bn in March last year to R1,289bn.

Protea MD Arthur Gillis said it was still too early to say there was a real improvement in trading conditions despite the World Cup being just two weeks away.

“We are seeing many business travellers changing their travel plans to avoid the perceived shortage in flights and hotel rooms over the World Cup. While on average the World Cup will boost averages, the performance of the individual cities and hotels will differ widely.

“We still have some hotels around the country that will be virtually empty, while others in Gauteng are completely booked up.”

Gillis said Protea hotels had traded fairly well in the run-up to the World Cup, but the tourism industry was likely to slow dramatically after the tournament.

While the hotel industry tends to rely on private benchmarking group STR for detailed performance figures for the formal hotel sector, the Tourism Accommodation Survey gives observers a broader view of the industry’s performance.

It is also used to compile estimates for the Tourism Satellite Accounts — a research document that analyses the tourism industry’s contribution to the country’s gross domestic product.

The tourism industry was likely to slow dramatically after the (World Cup) tournament.

Source: Business Day