South African gross domestic product (GDP) expanded by 1.9% in the first quarter of 2022, representing a second consecutive quarter of upward growth. 

This is according to data released by Statistics South Africa (StatsSA), noting that the size of the economy is now at pre-pandemic levels, with real GDP slightly higher than it was before the COVID-19 pandemic.

Trade activity was buoyant in the first quarter, with positive results from wholesale, retail, motor trade, and catering and accommodation.

The StatsSA report highlighted that the hospitality sector in particular saw a sharp rise in activity, as consumer spending on restaurants and hotels increased by 6.5%.

Massive growth for accommodation sector 

The accommodation sector, in particular, showed strong results for first quarter (Q1) of 2022, with StatsSA data highlighting that income from tourism accommodation rose 83% over the same period in 2021. 

Furthermore, measured in nominal terms (current prices), total income for the tourist accommodation industry increased by 110.6% in March 2022 compared with March 2021.

Income from accommodation increased by 87.6% year-on-year in March 2022, the result of a 48.7% increase in the number of stay unit nights sold and a 26.2% increase in the average income per stay unit night sold.

Minister of Tourism, Lindiwe Sisulu, expressed optimism following the release of the latest statistics, commenting: “We celebrate the rebounding in hotel accommodation as it strengthens our case for investment and rewards the confidence displayed by investors in our tourism sector as we work hard towards a recovery.

“We are also happy that guest houses saw a 105% increase in incomes in the first quarter of 2022 compared with the same time last year. While other sectors continue to see dampened incomes, tourism continues to show strong recovery. Our efforts are paying off.”