The Easter long weekend performance of South Africa’s hospitality industry saw a mixed bag of results, with many areas experiencing slight declines in occupancy compared with last year, according to FEDHASA National Chairperson, Rosemary Anderson.
However, independent hotels in the country experienced a significant increase in revenue per available room (RevPAR) over the Easter weekend.
According to data provided by RoomRaccoon – a leading hotel management platform that monitored hundreds of boutique hotels, B&Bs, and guesthouses across the country – the average RevPAR measured R1 632 (€81) over the long weekend – a 32% increase compared with the previous year – and peaked at R1 908 (€94) on the Saturday (March 30).
The surge in RevPAR comes as a result of a rise in occupancy rate (+6%) and average daily rate, which reflected 26% growth over the Easter weekend holiday year-on-year – climbing from R2 035 (€100) in 2023 to R2 589 (€128) in 2024.
Commenting on the data, Niels Verspui, Market Head of RoomRaccoon South Africa, said: “The significant surge in RevPAR over the Easter weekend reflects a promising sign for the country's hospitality industry as it heads into the quieter tourism season. However, with consumer spending tightening, hotels must explore innovative solutions beyond passing on increased costs to guests to maintain profitability.
“Heading into the off-season, hoteliers should look at adding dynamic pricing tools to their tech stack. These tools can automatically adjust hotels’ rates across all sales channels in real time based on time periods, room prices, and availability with automatic yield rules. As a result, hotels can strike the perfect price point for supply and market demand and avoid turning guests away by pricing themselves out of the competition.”
Mixed results
FEDHASA provided Tourism Update with the below feedback from its members, which is also inclusive of group hotels.
Durban, traditionally a strong performer during holiday periods, reported a decrease in occupancy rates, continuing a downward trend from the previous year. An average of 75% occupancy for Durban’s beachfront hotels was reported over the Easter long weekend period.
Gqeberha reported modest occupancy levels, while the Central Drakensberg and South Coast enjoyed high occupancy rates, highlighting regional disparities in performance. Umhlanga, however, faced a significant decrease in occupancy, dropping by 30% from the previous year.
In contrast, Cape Town emerged as a notable exception, maintaining robust occupancy levels. This resilience is attributed to a high influx of international tourists, underscoring Cape Town's continued appeal as a global destination.
Restaurant members did not report significant increases in numbers, indicating a possible stagnation in consumer spending within this segment. This aligns with observations across the sector, excluding Cape Town, of shrinking disposable incomes among consumers.
“The financial constraints are impacting the traditional spending patterns on dining and hotel stays,” said Anderson.
She added that there must be a concerted effort to ensure key tourism hubs and surrounding areas are fit for visitors.
“Cape Town is a prime example of what can be achieved when key stakeholders work together to ensure the attractiveness and appeal of a destination. We need to be mindful of our delicate ecosystem and how intertwined we are in terms of the tourism and hospitality value chain.”
She said the hospitality industry needed to ensure it bolstered visitor numbers and room occupancy. However, the industry was still reliant on several factors outside of its control, such as water quality, safety and security, reliable power and water supply, infrastructure, road conditions, visa reform “and so much more”.
“We need to attract key source growth markets that have the potential to fast-track tourism recovery and enhance affordability across the hospitality sector for a broader demographic,” Anderson concluded.
