South African Tourism and Hospitality Sectors Show Mixed Performance in June 2024
Recent reports from Statistics South Africa (StatsSA) reveal a complex picture for the country’s tourism and hospitality industries in June 2024, with the accommodation sector showing growth while the food and beverage industry faced challenges.
Tourist Accommodation Sees Modest Growth
The tourist accommodation industry experienced a 5.7% increase in total income compared to June 2023, when measured in nominal terms. Income from accommodation specifically rose by 8.9% year-on-year, driven by a slight 0.2% increase in the number of stay unit nights sold and a more substantial 8.7% increase in the average income per stay unit night.
Other accommodation and hotels were the main contributors to this growth, with increases of 12.2% and 6.7% respectively, each contributing 4.1 percentage points to the overall rise in accommodation income.
The second quarter of 2024 saw a 7.7% increase in accommodation income compared to the same period in 2023, with hotels and other accommodation again leading the growth.
Seasonally adjusted figures show a month-on-month increase of 5.8% in June 2024, following a 9.4% rise in May.
Food and Beverage Industry Faces Headwinds
In contrast, the food and beverage industry experienced a decline, with total income decreasing by 1.8% in real terms compared to June 2023. The most significant drops were seen in ‘other’ income (-9.6%) and bar sales (-8.2%).
Restaurants and coffee shops were the largest negative contributors, with a 3.9% decrease contributing -2.1 percentage points to the overall decline. Takeaway and fast-food outlets provided the only positive contribution, with a 2.0% increase.
The second quarter of 2024 saw a 1.2% decrease in total income compared to the same quarter in 2023. Restaurants, coffee shops, and catering services all experienced declines, while takeaway and fast-food outlets showed marginal growth of 0.1%.
Seasonally adjusted income for the food and beverages industry fell by 1.6% in June 2024 compared to May, following a volatile period with a 4.7% increase in May and a 4.7% decrease in April.
These figures suggest that while the accommodation sector is showing signs of recovery and growth, possibly due to increased domestic and international tourism, the food and beverage industry continues to face challenges, potentially related to economic pressures on consumer spending.
Industry analysts will be closely monitoring these trends in the coming months to gauge the overall health of South Africa’s tourism and hospitality sectors.
Download addresses –
Food & Beverage: Key findings – https://www.statssa.gov.za/?page_id=1856&PPN=P6420&SCH=73714
Food & Beverage: Full publication – https://www.statssa.gov.za/publications/P6420/P6420June2024.pdf
Download addresses –
Tourist accommodation – Key findings – https://www.statssa.gov.za/?page_id=1856&PPN=P6410&SCH=73712
Tourist accommodation – Full publication – https://www.statssa.gov.za/publications/P6410/P6410June2024.pdf
