Tourist Accommodation Industry Shows Growth in April 2024
The latest report from Statistics South Africa (StatsSA) reveals a positive trend in the tourist accommodation sector for April 2024. The industry saw a nominal increase of 4.5% in total income compared to April 2023. Specifically, income from accommodation grew by 7.0%, driven by a 3.5% rise in the number of stay unit nights sold and a 3.4% increase in the average income per stay unit night sold.
Hotels were the primary contributors to this growth, with a 7.8% increase, accounting for 4.9 percentage points of the overall rise. Other types of accommodation also saw a significant increase of 6.3%, contributing 2.0 percentage points.
For the three months ending in April 2024, accommodation income surged by 9.1% compared to the same period in the previous year. This was largely attributed to hotels, which grew by 7.9%, contributing 5.1 percentage points, and other accommodation types, which saw a 15.7% increase, contributing 4.5 percentage points. Guest-houses and guest-farms, however, experienced a decline of 11.9%, detracting 0.7 percentage points.
Seasonally adjusted figures showed a 1.7% month-on-month increase in April 2024, following a 0.8% decline in March 2024.
Download addresses –
Tourist accommodation – Key findings – https://www.statssa.gov.za/?page_id=1856&PPN=P6410&SCH=73694
Tourist accommodation – Full publication – https://www.statssa.gov.za/publications/P6410/P6410April2024.pdf
Food & Beverage Industry Faces Challenges
The food and beverages sector did not fare as well, experiencing a 4.6% year-on-year decline in total income at constant 2019 prices for April 2024. The steepest declines were observed in ‘other’ income, which fell by 15.4%, and bar sales, which dropped by 9.2%.
Restaurants and coffee shops were the largest negative contributors, with a 4.6% decrease, accounting for -2.4 percentage points, followed by takeaway and fast-food outlets, which fell by 5.2%, contributing -1.9 percentage points.
Despite the overall yearly decline, the sector did see a slight 1.2% increase in total income for the three months ending April 2024 compared to the previous year, mainly driven by restaurants and coffee shops, which grew by 2.4%, contributing 1.3 percentage points.
However, seasonally adjusted monthly figures showed a 4.0% decrease from March to April 2024, following a 2.0% decline in March and a 6.8% increase in February.
Download addresses –
Food & Beverage: Key findings – https://www.statssa.gov.za/?page_id=1856&PPN=P6420&SCH=73696
Food & Beverage: Full publication – https://www.statssa.gov.za/publications/P6420/P6420April2024.pdf
International Tourism Trends in May 2024
StatsSA’s international tourism report for May 2024 indicated that 2,354,432 travellers passed through South Africa’s ports of entry/exit. This total included 649,610 South African residents and 1,704,822 foreign travellers. Among the foreign arrivals, 857,770 were visitors, comprising 208,316 same-day visitors and 649,454 overnight tourists.
The data revealed a decrease in the volume of arrivals for both South African residents and foreign travellers from April to May 2024. The majority of tourists came from SADC countries (488,299), followed by those from overseas (147,428), and a smaller number from other African countries (12,629). The country of residence for 1,098 tourists was unspecified.
Overall, while the tourist accommodation industry showed resilience and growth, the food and beverages sector faced notable challenges. International tourism saw a slight decline in arrivals, reflecting changing travel patterns.
Download addresses –
International Tourism Full Report – https://www.statssa.gov.za/publications/P0350/P0350May2024.pdf
International Tourism Key Findings – https://www.statssa.gov.za/?page_id=1856&PPN=P0350&SCH=73932
Liquidations & Insolvencies in the Trade, Catering, and Accommodation Sector
The StatsSA Liquidations & Insolvencies report for May 2024 highlighted the financial challenges facing the trade, catering, and accommodation (TCA) sector. From January to May 2024, the TCA sector recorded a total of 128 liquidations, comprising 20 compulsory and 108 voluntary liquidations. In May 2024 alone, there were 36 liquidations, with 4 being compulsory and 32 voluntary.
The total number of liquidations in the TCA sector from January to May 2024 represented 20.1% of the total liquidations across all ten sectors. For May 2024, the 36 liquidations in the TCA sector accounted for 23.8% of the total number of liquidations across all sectors.
Overall, while the tourist accommodation industry showed resilience and growth, the food and beverages sector faced notable challenges. International tourism saw a slight decline in arrivals, reflecting changing travel patterns. Additionally, the high number of liquidations in the TCA sector underscores the financial difficulties still present in the industry.
