South Africa’s accomodation sector shows strong growth in early 2025, reports StatsSA

FEDHASA celebrates a 12.1% increase in tourism accommodation income for January 2025 imn South Africa, driven by higher occupancy and revenue, particularly in hotels. The article South Africa’s accomodation sector shows strong growth in early 2025, reports StatsSA first appeared in TravelDailyNews International.

Mar 27, 2025 - 10:43

South Africa’s accomodation sector shows strong growth in early 2025, reports StatsSA

JOHANNESBURG – FEDHASA is buoyed by the latest data from StatsSA, which shows a 12.1% increase in total income for South Africa tourism accommodation sector in January 2025 –
when compared to January 2024. The survey covered:

Hotels, motels, inns and houseboats;
caravan parks and camping sites;
guest-houses and guest-farms; and
‘other’ accommodation.

Overall, the accommodation sector recorded a 16.7% year-on-year increase in income, driven by a 4.5% rise in occupancy and an 11.7% increase in average income per stay. Hotels were the standout performers, contributing 14.1 percentage points to this growth with a 24.6% increase in revenue.

“These positive trends reflect growing traveller confidence, strong demand for accommodation, and a resilient hospitality sector,” said Rosemary Anderson, National Chairperson at FEDHASA. “It was a busy accommodation season, and we’re pleased to see the hard work pay off! We are encouraged by the steady rise in international arrivals and increased spending within the accommodation industries, it’s great for our members and critical for the industry overall!”

The quarterly figures further reinforce this upward trajectory, with accommodation income increasing by 14.1% for the three months ending January 2025 compared to the same period last year.

Anderson expressed optimism that the Department of Home Affairs’ initiatives – aimed at streamlining entry into South Africa for the world’s two fastest-growing tourism markets, India and
China – along with visa reforms, digital transformation, and an enhanced marketing strategy by SA Tourism, will help South Africa finally exceed its 2019 inbound tourism numbers. She further
highlighted that improved air connectivity and strategic partnerships with key international markets are expected to be significant drivers of growth in 2025.

The latest food and beverage industry data suggests a less positive scenario, with a clear divide in consumer spending patterns, reflecting the financial strain on many local households.

While overall sector income saw a modest 1.8% increase in the three months ending January 2025 compared to the same period in 2024, this growth was primarily driven by takeaway and fast-food outlets, which recorded a strong 7.4% increase and contributed 2.8 percentage points to the total rise.

In contrast, restaurants and coffee shops experienced a 4.0% decline, dragging down overall growth by 2.0 percentage points. This suggests that as disposable incomes shrink, many consumers are
opting for more affordable takeaway options rather than dining out at sit-down establishments.

Short-term trends also indicate sluggish momentum in the sector, with seasonally adjusted income rising just 0.1% in January 2025 compared to December 2024, following a 1.3% increase in December and a slight decline of 0.5% in November. These figures reinforce the growing consumer preference for cost-effective dining solutions amidst economic pressures.

FEDHASA, the voice of hospitality in South Africa, continues to work closely with industry stakeholders to momentum and address remaining challenges in the sector.

The article South Africa’s accomodation sector shows strong growth in early 2025, reports StatsSA first appeared in TravelDailyNews International.