Horwath HTL Market Report: South Africa Market Update & COVID-19 Impact
On 26 March 2020 as we said our goodbyes to colleagues, we did not foresee that six months later many hotels across South Africa would remain closed.
On 26 March 2020 as we said our goodbyes to colleagues, we did not foresee that six months later many hotels across South Africa would remain closed.
Airbnb has announced the launch of #GetBehindTheMask, a host led movement to support communities struggling with the impact of COVID-19. In partnership with the Western Cape Government's Maskathon and Afrika Tikkun, the initiative will kickstart with an Online Experience on how to create face masks, alongside a call to action from the host community to challenge others to make masks. In addition, a relief fund will support tourism entrepreneurs who participated in the Airbnb Africa Academy and who have been hit hard by the COVID-19 crisis.
Consumer uncertainty is one of the greatest barriers facing the travel industry, and despite cases of COVID-19 stabilizing across South Africa, 70% of South African respondents in a recent survey by GlobalData, a leading data and analytics company, say they are still extremely concerned about the impact of COVID-19 - in comparison to the 1% that declared they are not concerned. In addition, 74% believe that conditions will worsen over the next six months. This highlights the extent of uncertainty surrounding this global pandemic in the country, which is bad news for the country's travel industry.
Solomon (Sol) Kerzner, one of the world's most innovative hoteliers, founder of the Southern Sun hotel group, Sun International and Kerzner International, has died of cancer at the Kerzner family home, Leeukoppie Estate, in Cape Town, South Africa. Always a maverick, Kerzner was a titan of the hotel and resort industry who redefined the scale and scope of integrated destination resorts worldwide. He was 84.
WE announces the expansion of the organization's sustainable development efforts through a new community partnership with Kabolwo, a rural region in Bomet County, Kenya, made possible by Marriott International's travel program Marriott Bonvoy. With a history of more than 20 years working in the Maasai Mara area, WE is embarking on a new journey of sustainable change with Kabolwo through its holistic sustainable development model, WE Villages. The unique model, designed to meet the basic needs of developing communities, works to end poverty by focusing on five pillars: Education, Water, Health, Food and Opportunity—when implemented together, these pillars are key interventions that empower a community to help build a brighter future for themselves and future generations.
Is it possible to capture the majesty and splendour of the Serengeti's endless plains and renowned wildlife reserves in a single image? Through original photography, Canadian artist Nicolas Ruel does just that, telling the story of his transformational Envoy by Four Seasons journey to Savannah's sanctuary, Four Seasons Safari Lodge Serengeti. Using a unique in-camera double-exposure method, the Montreal-based photographer merges distinct subjects to create unique perspectives. Watch here as Ruel uncovers the power of storytelling through his art, truly connecting to the people, experiences and natural wonders of the Serengeti.
When travelers consider a trip to Morocco, their planning may only focus on the most well-known cities - Marrakesh, Casablanca or Fes - but they would be missing out on one of the country's hidden gems. The hillside port city of Tangier, once a favorite destination of the Beat Generation (writers like William S. Burroughs, Jack Kerouac and Allen Ginsberg), is a multicultural mecca with rug-draped souks (open-air marketplaces), art deco architecture, eclectic cafes, modern boutiques and unparalleled views across the Strait of Gibraltar and the Mediterranean Sea.
Akpuoga Primary School in southern Nigeria is an institution which is very close to Deutsche Hospitality's heart. It is now set to undergo expansion over the coming weeks as an additional pre-school facility is built. This will provide six more classrooms accommodating around 180 extra pupils and will take total capacity to 500 children. All construction works have been entirely funded by Deutsche Hospitality, which has invested approximately €130,000 in this latest project. The school is located in the village of Akpuoga on the edge of Enugu, a city of a million inhabitants. Children in Years 1 to 6 are taught in twelve classrooms across two storeys.
AC Hotels, the carefully curated lifestyle brand from Marriott International marked the African debut of the global thought leadership series, AC Unpacked at AC Hotel Cape Town Waterfront on 26 September with a lively panelist discussion between local experts shaping the world of Art and Design in The Mother City.
Dynamic independent hotel management company Aleph Hospitality has entered the Tanzanian market with the signing of a management agreement to operate two boutique resorts, the Moja Tuu and Hakuna Majiwe, in Zanzibar.
Hospitality trailblazers Smart Hospitality Solutions (SHS) announced the successful management takeover of the Fleuve Congo Hotel by Blazon, formerly known as Kempinski Hotel Fleuve Congo, as of July 1, 2019. The iconic Kinshasa hotel now carries the Blazon Hotels brand and premium service philosophy. Led by the m anagement board and founders, Mr Reto Wittwer, Mr Ulrich Eckhardt, and Mr Avsar Koc, SHS announced the signing of its latest management agreement as part of its strategic global expansion plan. Having successfully opened and operated more than 250 hotels across the world with several major hotel brands the trio of recognised leaders of luxury hospitality management return to Kinshasa to bring new life to the 237 room hotel. Reto Wittwer Founder & Chairman of Smart Hospitality Solutions stated: "Signing the agreement for Fleuve Congo Hotel by Blazon is part of our plan for expanding the Blazon brand in Africa over the next few years. Throughout my career, I have had great success on the continent and remain optimistic about the immense potential for returns from luxury hospitality in Sub-Saharan Africa. By partnering with key players on the continent to secure the best locations for our luxury hotels we will continue to expand into more cities. We are proud to lau nch the Blazon brand in Kinshasa and leverage our unrivaled experience in order to bring genuine five-star luxury to the city." Avsar Koc Chief Operating Officer of Smart Hospitality Solutions added: "By tapping into the natural talent and service culture that already exists in the Democratic Republic of the Congo we are excited to boost the performance of this iconic hotel. Our distinct brand of luxury hospitality and operational know-how makes us a clear leader in all the markets we operate in. We look forward to working with the owner and the hotel team to unveil the true potential of this incredible hotel." Fleuve Congo Hotel by Blazon is the leading venue for conferences, exhibitions, and lavish weddings in Africa's third-largest city. The hotel is ideal for business travellers and groups looking for five-star luxury in close proximity to the country's principal governing bodies, diplomatic and media organizations, and international corporations lo cated in the Gombe area. The spacious rooms & suites, and extensive landscaped grounds provide a welcome respite from the busy mega-city. The Blazon Hotels management team arrived in the city in July to personally oversee the handover and provide hands-on expertise to elevate the hotel's service standards to international 5-star luxury levels. Work is already underway to introduce a new conference and convention centre, upscale bar, as well as a luxury spa and full-service salon. Named after one of Africa's largest river, Fleuve Congo Hotel by Blazon is located near its banks in the heart of the embassy district in the Commune of Gombe. The tallest building in the Gombe area, the hotel's twenty-two floors offer elevated views over the Congo River and the capital cities of Kinshasa and Brazzaville, Republic of Congo which sits across the river.
Addis Ababa, Ethiopia, posted Africa’s highest average daily rate (ADR), according to the most recent 12-month data from STR (https://STR.com/). The market will play host to the Africa Hotel Investment Forum (AHIF) (https://www.AHIF.com/) on 23-25 September at the Sheraton Addis.
The RIU Hotels & Resorts chain has announced the purchase of a 25-hectare site in the Pointe Sarène area on Senegal's west coast, a paradise destination that is in the midst of the tourist development process. With it, the chain strengthens its commitment to the continent of Africa, where it already owns six hotels (five in Cape Verde and one in Tanzania) and runs a further five hotels in Morocco.
Radisson Hotel Group is entering its 32nd African market and second Indian Ocean territory, Madagascar, with the signing of a portfolio deal of three hotels and a total of 254 rooms. The agreement was signed with Groupe Talys. Radisson Hotel Group today, has 89 hotels and 17,000+ rooms in operation and under development in Africa. The Group remains firmly on track to reach 130 hotels and 23,000+ rooms across the continent by 2022. The agreement consists of two hotel conversions and one hotel under construction, with all three hotels scheduled to open in 2020.
BON Hotels announced the acquisition of Die Kliphuis, a boutique hotel located in Standerton, to augment the group's fast-growing portfolio. This elegant, sandstone homestead, steeped in history, has over the past 100 years served as a maternity home, a boarding house for young ladies, an officers' mess in the Anglo Boer war and a parsonage. Set in peaceful surroundings with gracious living and a high standard of comfort and cuisine, the property will be positioned as a 4-star, boutique hotel, and renamed Die Kliphuis Standerton by BON Hotels.
Travel & Tourism in South Africa contributed 1.5 million jobs and ZAR425.8 billion to the economy in 2018, making it the largest tourism economy in Africa, according to the World Travel & Tourism Council's (WTTC) annual review of the economic impact and social importance of the sector released today.
The Africa Hotel Investment Forum (AHIF), which is the premier tourism and hotel investment conference in Africa, attracting many prominent international hotel owners, investors, financiers, management companies and their advisers, will return to the Sheraton Hotel, Addis Ababa in the last week of September, 23-25, 2019. AHIF was previously held in Ethiopia's capital city in 2014 and 2015; the following two years, the conference moved to Kigali and last year to Nairobi.
Radisson Hotel Group, one of the world's largest hotel groups has begun 2019 with the announcement of its new commercial strategy for South Africa. The Group currently operates 11 hotels and 2,200+ rooms across the country and is also one of the fastest growing hotel brands in Africa with 90+ hotels in operation and under development.
"Continued economic growth in many African countries is driving greater interest in the continent from a tourism perspective but it's interesting to see that Ghana, in particular, is proving increasingly attractive as a leisure tourism destination," says Wayne Troughton, CEO of specialist global hospitality and tourism consultancy HTI Consulting."In many ways, this is not surprising," he says, "particularly considering Ghana's natural beauty and unspoiled coastline, its cultural and historical heritage as well as it's relative political safety under the new government elected in December 2016," he states.
Figures released by Cape Town's big attractions, Cape Town International Airport and STR's Destination Report indicate mixed performance for December 2018. The second half of the year has shown that the city's recovery in terms of tourism is stabilising, notwithstanding a poor performance in the early part of 2018.