The hospitality sector continued to grow in the first two months of 2023, with hotels the driving force behind growth in the accommodation sector when compared with the same period in the previous year. This is according to the latest data released by Statistics South Africa.
The increase on total income for the prior year was 38.9% for January and 34.3% for February.
The increase in income from accommodation was 59.4% in February, which is an increase of 3.6% on January. Income from hotels showed positive growth at 69.1%, an increase of 6.2% on January 2023.
The increase in the two months ended in January 2023/February 2023, compared with last year was at 46.7% in January and 51.5% in February, with hotels contributing 60.3% and 65.1% respectively.
The food and beverage segment remains under pressure, although it is showing signs of growth in some areas. The total income generated on the prior year was 15.5% for January and 14.9% for February.
Rosemary Anderson, FEDHASA National Chairperson, said: "We are delighted to see the strong growth in the hospitality sector as evidenced by the latest Statistics South Africa report. This is a testament to the resilience of our industry and its ability to recover from the challenges of the pandemic.”
‘Data must be viewed within context’
She added that it was important that the data was viewed in context, especially in terms of the positive growth in the food and beverage data.
“Despite this growth, profit margins are being squeezed, due to rising food costs, electricity challenges and the cost of additional overheads, such as diesel for generators. Businesses also have to contend with water shortages or an erratic water supply. The south coast of KwaZulu Natal is particularly struggling with this.
“As a result, businesses must invest significantly in alternative energy and water sources to keep the lights on and ensure a constant and stable water supply,” said Anderson.
She highlighted that basic infrastructural challenges were putting additional pressure on an industry that has had a steep hill to climb in terms of recovery.
“We still have to deliver ‘business as usual’ for our guests, but these challenges are impacting our ability to grow, as well as to contribute to the economy and create jobs.
“It is therefore critical for local municipalities and the government to improve basic infrastructure, such as electricity and water supply, to ensure a positive guest experience and position South Africa as a favourable destination for both local and international visitors,” said Anderson.
