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2012 tourism outlook positive

14 Mar 2012

The 2011/12 summer season has proved to be a successful period for Cape Town-based hotels, which saw a noticeable year-on-year increase in occupancy figures over the December 2011 and January 2012 period.

This is according to Bruce Deneys, director of Sales and Marketing at Pepper Club Hotel, who says the hotel has recorded year-on-year occupancy increases of 21% and 53% for December 2011 and January 2012 respectively.

"The increased occupancy figures are in line with the December 2011 STR Global South African Hotel review figures which show that Cape Town hotels saw an increase of 18.1% in occupancy figures during the last quarter of 2011 compared to the same period in 2010.

Deneys says they have also noticed a shift in markets visiting the hotel over this period, which has contributed to the positive occupancy figures. "In the past we relied on traditional markets such as the United Kingdom, The Netherlands and Germany, and while we still receive business from these regions, we are now noticing growth in emerging market visitors, from countries such as Brazil, Columbia, Chile and India.

More visitors from China

"We have also seen a significant increase in visitors from China. South Africa Airways' new direct flight from Beijing to Cape Town has contributed to the increase in visitors from the region and will also foster business tourism from the region. The fares are also very competitive, resulting in a favourable response from the Chinese market. It was definitely a loss when Air Malaysia discontinued flights from Buenos Aires to Cape Town as far as Latin America business was concerned, but we hope the new direct flight from Beijing will counter that loss," explains Deneys.

He adds that the quality of business generated over December and January has also improved. "While lead times for bookings continue to be very short, we have experienced a 20% increase in the average daily rate this season, as well as length of stay, which averaged at 4.5 days, up from last year's 3 days.

"It has been a positive start to 2012 and the increase of visitors from emerging markets is a good sign for South Africa as a whole. Visitor numbers are also expected to grow as these economies expand. India, in particular, is expected to be among the top three global economies by 2050," concludes Deneys.