The addition of hundreds of hotel rooms in urban centres like Cape Town, Sandton and Umhlanga in the past year has led to an oversupply in the market and an overall 13,3% decline in occupancy for SA hotels, says Deloitte Southern Africa tourism, hospitality and leisure leader, Moray Wilson.

“Although South Africa’s tourism industry showed some resilience during 2009, attracting 3,6% more tourists and bringing the total number to 9,9m despite a contracting global economy, the increase in the number of visitors did not outweigh the increase in hotel room supply.” Moray says while hosting of the soccer tournament should boost hotel performance for 2010 in the short term, there are at least 10 new hotels or 1 525 rooms expected to open in 2010. “It remains to be seen if improvements in performance will be sustained through to the end of the year.”  The perception of price gouging over the 2010 World Cup, adds Moray, also appears to have been addressed.