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Of the top-five cities in Africa showing the highest growth in occupancy rates, four were based in Southern Africa, with three of them in South Africa. This is according to STR Global, as compiled in a summary report for 2016 by HTI Consulting.
Cape Town achieved the highest growth (6.5%) in occupancy of the 13 cities assessed. It was attributed to an increase in international leisure tourism and the introduction of additional direct international flights. Lagos showed the second-highest growth, followed by Durban and surrounds (2.4%), excluding Umhlanga. This was driven largely by government business, as well as ICC-related activity and sustained demand from the domestic leisure sector.
Growth in Lusaka was largely due to an unusually high number of conferences hosted by the city in 2016.
A number of Southern and East African destinations experienced reduced occupancy. New government policies in Tanzania and a shift in government demand to more affordable accommodation reduced occupancy in Dar es Salaam by more than 5%. Weakened investor sentiment in Zimbabwe also continued to limit opportunities for growth in the Harare hotel market.
Lusaka and Cape Town were the only cities to achieve Average Daily Rate (ADR) increases in US dollar terms in 2016. In local currency, ADR increased by more than 10%. Local currency ADR also increased in cities such as Dar es Salaam, Nairobi and Windhoek, although these showed declines in US dollar terms. Low levels of demand in Harare drove rates down, while currency fluctuations and new supply in Gaborone, Botswana, influenced lower ADR (in US$ terms). In local currency, however, ADR in Gaborone only declined by 1.1% in the city.
Nairobi experienced a 10% increase in room supply and a corresponding 8.7% increase in rooms sold. Cape Town and Durban experienced a 4.6% and 3.5% increase in rooms sold, with demand growth increasing at a higher rate than supply.
Rooms sold in Dar es Salaam declined due to the aforementioned changes in government policy. Reduction in government accommodation budgets also displaced demand to more affordable hotels outside of the main Dar es Salaam CBD and Peninsula areas.
With regard to future hotel supply, Nairobi has a strong development pipeline, however recovery in the tourism sector is evident. This market is likely to be subdued in the medium term, though the long-term outlook is positive. Cape Town’s market is likely to slow in the short term, particularly in the midscale and upscale space, as new supply comes online. However, should the market continue to grow at its current pace, the impact of new supply will be short term.
Sоurсе: tourismupdate.co.za