SOUTH AFRICA’s hospitality sector is poised for further growth in the next five years bolstered by inbound travelers amid a difficult and volatile economic climate.
Pietro Calicchio, Hospitality & Gaming Industry Leader for PwC Southern Africa says: “Africa’s hotel sector has remained resilient in the face of strong economic headwinds.”
PwC’s 7th edition of the ‘Hotels Outlook: 2017-2021’ projects that South African hotel room revenue will grow by 10.1% in 2017 to R17.5 billion. Overall hotel room revenue for South Africa is expected to expand at a 9.3% compound annual rate to R24.8 billion in 2021 from R15.9 billion in 2016.
PwC’s report features information about hotel accommodation in South Africa, Nigeria, Mauritius, Kenya and Tanzania. This year we take our African view a step further, with looking into Ghana and Ethiopia as emerging hotel markets.
The outlook for 2017 is positive with an increase in the number of international visitors to South Africa expected. Domestic tourism is also anticipated to increase by 2.2% in 2017.
“One of the positive outcomes for the hotel market in South Africa was the amendment of visa requirements that required foreign visitors from certain countries to provide biometric data in person. International visitor numbers to South Africa rebounded significantly in 2016 with a 12.8% increase as compared to the 6.8% decrease in 2015,” Calicchio comments.
Visits from China and India increased in 2016 as a result of the relaxation in the visa requirements; travellers from China to South Africa increased by 38% and India recorded a 21.7% increase. Of non-African countries, the UK is still the largest source of visitors to South Africa at 447 840 in 2016.
Of the African countries, the largest number of foreign visitors to South Africa in 2016 came from Zimbabwe at two million, followed by Lesotho at 1.8 million and Mozambique at 1.3 million. In addition, visits from East and Central Africa also rose by 11.2% in 2016.
It is promising to note a growing number of new hotels planned for the South African market over the next five years. The overall number of available rooms is expected to increase at a 0.9% compound annual rate, thereby adding 2700 rooms over this period.
Nigeria is expected to be the fastest-growing market from a revenue perspective over the next five years with a projected 14.7% compound annual increase in revenue, benefitting from an improving economy, continued growth in domestic tourism, and expansion in the number of available rooms. South Africa is projected to be the next-fastest growing market with a 9.3% compound annual increase in room revenue, most of which will be generated by rising average room rates and continued but moderating growth in tourism.
The emergence of peer-to-peer inventory from entities such as Airbnb, has bolstered growth in non-hotel accommodation. Ongoing growth in the peer-to-peer sector over the next few years will make the market more competitive, which may limit room-rate growth for hotels.
The revenue for the five markets as a group is forecast to rise at an 8.7% compound annual rate to R59.2 billion in 2021 from R39 billion in 2016.
“Nigeria is expected to be the fastest-growing market from a revenue perspective over the next five years with a projected 14.7% compound annual increase in revenue”
Hotel accommodation: South Africa – Nigeria – Mauritius – Kenya – Tanzania
Overall, room revenue in South Africa rose 12.2% to R15.8 billion in 2016, the biggest increase since 2013. Over the past five years, the occupancy rate has risen, surpassing the 60% level and reaching 61.2% in 2016. This gain has stimulated interest and a number of new hotels are expected to open in the next five years.
Five-star hotels have had the highest occupancy rates in the market at 79.3% in 2016. Room revenue for five-star hotels is expected to expand at an 11.4% compound annual rate to R4.2 billion in 2021 from R2.4 billion in 2016.
The hotel sector in Cape Town flourished in 2016 as it is the dominant tourist destination in the country. Over the next five years, 55% of all the rooms expected to be added in South Africa will be in Cape Town. Durban’s hotel market attracts more tourists than Johannesburg, but fewer than Cape Town. Although Durban benefitted from the pick-up in tourism in 2016 a weak business market held back overall growth.
Elsewhere on the African continent, a number of initiatives have taken place to promote tourism and positively impact the hotel market. The hotel market in Nigeria rebounded in 2016 with a 5.2% increase in total revenue.
In 2016 the number of tourists to Mauritius increased by 10.8%. The hotel market has benefitted from an increase in direct flights and government investments in tourism. Room revenue increased by 15.3% in 2016 due to the 9% increase in guest nights together with an increase in average room rates.
The tourist market in Kenya rebounded in 2016 following four years after decline. The Government has introduced a number of initiatives to boost tourism. Hotel room revenue is projected to grow at 6.2% compounded annually to 2021. Over the last year, tourism increased in Tanzania despite the imposition of an 18% VAT on tourism services. Calicchio adds: “Many destinations have invested in improving and promoting the quality of their tourism offering and are reaping the benefits. In addition, we are seeing the impact of technological disruption play a part over the past year in certain countries.”
Outlook: South Africa 2017-2021
The number of available rooms is projected to rise at a 0.9% compound annual rate to 63 900 in 2021 from 61 200 in 2016. Guest nights are forecast to increase at a 1.8% compound annual rate to 15 million in 2021 from 13.7 million in 2016, with occupancy increasing to 64.3% in 2021 from 61.2% in 2016.
Outlook: Nigeria – Mauritius – Kenya – Tanzania
A number of projects in Nigeria have been delayed or postponed in the wake of the recent economic uncertainty. An 18 month moratorium was placed on hotel construction in Mauritius in November 2015. “Consequently we now expect a smaller expansion in the number of available rooms that we predicted in last year’s Outlook report,” Calicchio adds. Nevertheless, there is still a lot of activity in the market for new hotels which will continue to expand overall hotel capacity.
Nigeria is projected to be the fastest-growing market from a revenue perspective over the next five years. This is mainly due to an improved economy, continued growth in domestic tourism, and expansion in the number of available rooms. Overall hotel room revenue is expected to expand at a 14.6% compound annual rate to US$517 million (R7.6 billion) in 2021 from US$261 million (R3.8 billion) in 2016.
Mauritius is projected to be the slowest-growing of the five countries, with a 6.2% compound annual increase in room revenue. While there is a moratorium on new projects in place in the near term and relatively few rooms expected to be added through 2021, growth in the non-hotel inventory will ease pressure on average room rates.
In Kenya the number of available rooms is projected to increase from 18 600 in 2016 to 21 000 in 2021. Total room revenue is forecast to rise by 7.5% compounded annually. Tourism is the largest industry in Tanzania, accounting for more than 17% of GDP. Total room revenue is expected to rise to $371 million (R4.6 billion) in 2021 from $224 million (R3.3 billion) in 2016.
Calicchio adds: “The hotel market in each country is affected by both the local and global economy, with some countries being more dependent on foreign visitors than others. We are also seeing certain local governments continuing to invest in infrastructure and implementing other plans to unlock the substantial potential that this industry has torevenue”
Engen partners Siba Mtongana for DStv Delicious Food Fest
Engen has signed a three-year sponsorship agreement as the Official Fuel Partner to the DStv Delicious International Food and Music Festival, taking place at the Kyalami Grand Prix Circuit in Midrand on 21 and 22 September 2019.
“Engen are pleased to partner with the DStv Delicious International Food and Music Festival as the Official Fuel Partner, and we look forward to providing experiences of convenience for our customers and festival goers”, commented Bulela Mkandawire, Corporate Brand & Sponsorship Manager, Engen.
Dubbed South Africa’s premier lifestyle event, the two-day festival welcomes the entire family to indulge in the best food and entertainment. Included in this culinary extravaganza is a safe, educational and entertaining designated children’s area sponsored by Engen also known as the ‘Engen Kids Fest’.
This year, the Engen Kids Fest will offer healthy and nutritional food and refreshments throughout the day inspired by multi -award winning culinary expert and food extraordinaire.
An excited Siba Mtongana said: “I am delighted to be partnering with Engen at this year’s DStv Delicious International Food and Music Festival, as we take the kiddies area to the next level, in true Ms Sibalicious style.”
“I have curated an interactive, educational, and entertaining food explosion experience for kids of all ages ranging from healthy treats, baked goodies and cooked masterpieces by the mini chefs who will be cooking along with me. Moms and dads don’t let your little people miss out on this fun activity”, added Mtongana
Designed and curated with every child in mind, the Engen Kids Fest will boast a range of fun areas to explore for all kinds of bright-eyed explorers. It’s a world of play and learning combined into one memorable experience that shows how much Engen cares.
“The sponsorship of the DStv Delicious International Food and Music Festival provides Engen with a platform to actively engage and connect with our current and future market in a relevant and purposeful way”, added Mkandawire.
Children aged between 3 – 13 years old will enter a mini fest of their own and can enjoy a range of cool activities from art classes, drawing and colouring, interactive Lego area for building, live shows and entertainment, outdoor activities, healthy food and refreshments, a mini library, slot car racing to F1 gaming simulators and much more.
The Engen Kids Fest will close at 19h00 on both nights with trained child minders and security onsite through the course of the two days. Parents will be requested to register and will receive a barcode that tags adults to children enabling updates to be sent throughout the day to the parents.
Ooni urges world leaders to invest in humanity rather than nuclear weapons
The Arole Oodua, cum Ooni of Ife, Ooni Adeyeye Enitan Ogunwusi(Ojaja II) has urged world leaders to invest in humanity through researches and documentation of historical facts rather than spending on nuclear weapons.
The Co-chairman of National Council of Traditional Rulers of Nigeria (NCTRN) made the call Sunday evening at his Ile-Oodua Palace in Ile Ife while playing host to a team of researchers led by the French Ambassador to Nigeria, Mr. Jerome Pasquier.
The foremost African monarch who decried the huge amount of resources invested in the procurement of war weapons which he described as items of destruction, posited that the world will be a better place for all if such is spent to advance nature through archeological and historical researches that can establish the links connecting various nations in the world as one family.
“We are one people regardless of our cultural, racial, religious and social beliefs and the earlier we recognize this fact the better for us. Let us use our God given resources and potentials to document our history and research on archeology linking all of us together as one family even though separated by artificial national boundaries. These archeological items are useful for the unborn generations, rather than destroying ourselves with our own resources.” Ooni said
On the visit of the French’s Ambassador and other researchers to the ancient city, Ooni Ogunwusi revealed that there is a strong cultural relationship between France and Nigeria especially on the basis of kingship. He commended the visiting Ambassador and his team members for their commitment to the promotion of the prestigious African culture.
“Just recently, the French’s President, Mr. Emanuel Macron, visited Nigeria during which he stopped at some notable heritage sites including the famous musical shrine originated by the late Afro legend, our own Fella Anikulapo Kuti”.
“I have always said we are of one family source, the Europeans too are now corroborating me. The French government has been wonderful especially in ensuring that all our artifacts are returned to us in this part of Africa, they are working with us on this here in Ile-Ife, they are also working with the Benin kingdom. Of course you all know the strong relationship between the Benin Kingdom and we Yoruba people as direct descendants of Oduduwa who pioneered kingship in the world with this sacred throne I currently occupy as the AROLE OODUA and natural head of the Yoruba race worldwide.” The Ooni added.
Earlier in his address, Ambassador Jerome Pasquierwho was flanked by the French consular general, Mrs. Lawrence Nonnayrant, and other personalities admitted that the Ife kingdom occupies a huge place in history, adding that such historical relevance could be a source of economic gain if maximized.
“We in the Europe, especially the French love this king and we follow his unity and peace efforts. It is good to embrace civilization, but it is much more important to keep the traditional culture intact and I am very happy to see that culture and tradition are well kept in this kingdom of Ife which is the ancestral home of the great Yoruba nation despite its current civilized state.”
The ambassador said.
One of the researchers from the US told journalists he is in the town to join his colleagues from Europe and America who have been working on different archeological sites in Ile-Ife to corroborate the historical facts pointing to Yoruba race with Ile-Ife being its spiritual headquarters as cradle of mankind.
“There are facts pointing to this town as the source of humanity and it is through this archeological efforts like this the facts can be corroborated. Several of our colleagues have been working here in Ile-Ife for the past 4 years and a lot of positive mysteries of archeology have been discovered, that is why my university has sent me to come and join the work”. He said.
Also at the event, Dr(Mrs) Nokuthula Khumalo, an African cultural festivals researcher from Zulu in South African who is in Ile-Ife to witness this year’s forthcoming OLOJO festival admitted Yoruba race as the possible oldest race in the world saying the historical facts available to her confirm Ile-Ife as the cradle of mankind.
“3 years ago, precisely 2016, I was at the Lambeth Palace of the Archbishop of Canterbury in England when this Ooni of Ife and other Nigerian kings visited the Archbishop Justin Welby who told the visiting Ooni and his large entourage that the world actually originated from Africa. Highly fascinated by this, I thereafter engaged with some international archeologists and historians in Europe, America and Africa most of whom confirmed to me that the world started from a native tribe in the tropical part of Africa with emphasis on Yoruba race in West Africa. I went to the palace of the king of Acra in Ghana last year from where I was directed to Ile-Ife in Nigeria. What I have seen here in the last one week is so amazing and incredible. Africa must unite”. Dr Bhekumbuso said.
Director, Natural History Museum at the Obafemi Awolowo University, Ile-Ife, Professor Adisa Ogunfolakan led the French ambassador and the international researchers to the Ooni’s palace while student-historians from Ahmadu Bello University Zaria, University of Jos, University of Ibadan and representatives of the National Museum were also in attendance.
It would be recalled that the Ooni of Ife in conjunction with the Brazilian government recently unveiled the Oduduwa Mobile Museum for the purpose of showcasing the African arts and culture to the world.
The first of its kind mobile museum which already has a building called Yoruba Heritage House in Rio De Janeiro, Brazil donated by the Brazilian government also being planned unveiled in Paris, France next year in conjunction with the French embassy in Nigeria.
Ogundare Foyanmu To Resurrect As Oyo Celebrates Ijala Festival in October
Oyo State government has assured of its readiness to support the 2019 Ijala festival initiated by Ona-Ara Development Council in Ibadan, the State capital.
Ijala rendition is an African oral poetry that is chanted by the Yoruba people to celebrate and commiserate and foremost among the major Ijala chanters was Late Chief Ogundare Foyanmu.
The Commissioner for Information, Culture and Tourism, Dr. Wasiu Olatunbosun disclosed this while hosting members of Ona-Ara Development Council, led by its President, Alhaji Kola Bolomope at his office.
According to the Commissioner, Ijala festival would be given adequate publicity by the media during the celebration slated between October 17th to 19th 2019.
Dr. Olatunbosun called on members of Ona-Ara Development Forum to always support the state government in its determined efforts at providing the dividends of the democracy for the people.
The Commissioner ordered that the Director of Tourism along with its official be part of the steering committee for the proposed Ijala Festival in order to enhance a successful celebration.
“This is a the type of events that promotes the culture and tradition of the Yoruba people and we have to support the group to bring it to life. Many of the Yoruba traditional literary genres have been long abandoned as they were not practiced like it used to be in the old and we are the one paying for it today.
“This event will bring about memories of yesteryears as we all used to listen to Ijala from the great Yoruba poets like Baba Ogundare Foyanmu and others.
“It is a thing of joy that we still have individuals that can chant the Ijala poetry and we will give adequate support to this group to have a successful outing, come October.”
Earlier in his speech, the President of the Forum, Alhaji Bolomope informed the Commissioner that their main purpose of for the proposed festival is aimed at attracting tourism across the world to showcase the cultural potentials in Yoruba land.
He the solicited for the Ministry support to ensure a successful festival and other activities of the Forum in th overall interest of the people of Ona-Ara and Oyo State in general.
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