South Africa’s independent hotels see revenue surge despite occupancy challenges

SOUTH AFRICA – Independent hotels across South Africa are experiencing a 12% year-on-year growth in revenue per available room (RevPAR) leading up to the summer season, despite a slight drop in occupancy rates.

RoomRaccoon, a hotel management software provider supporting over 4500 rooms in boutique hotels, bed and breakfasts, and lodges, attributes the growth to higher average daily rates (ADR).

RevPAR climbed from R1,197 (US$65.84) in 2023 to R1,348 (US$74.14) in 2024, driven by a R363 (US$19.97) increase in ADR, which rose to R2,325 (US$127.88) during the same period.

However, occupancy rates fell from 61% in 2023 to 58% in 2024, reflecting a decline in international travel. The latest International Tourism Report revealed a 10% decrease in overseas arrivals in September, a trend impacting the broader tourism sector.

“Maintaining this positive revenue trend while balancing occupancy levels is critical,” said Niels Verspui, Market Head of RoomRaccoon South Africa. “It’s not just about filling rooms but doing so profitably. Tools that automate pricing can help hoteliers remain competitive without overcharging guests.”

Verspui also emphasized the potential of South Africa’s recently introduced remote work visa to attract long-term visitors. “Hotels can benefit from offering packages tailored to digital nomads, encouraging longer stays and stabilizing occupancy,” he said.

Positioning South Africa on the global tourism stage

These developments come as Patricia de Lille, South Africa’s Minister of Tourism, assumes her role as Vice Chair of the United Nations World Tourism Organization (UNWTO) Executive Council.

Sharing the position with Czechia, De Lille’s appointment highlights South Africa’s growing influence in the global tourism landscape.

Minister in the Presidency, Khumbudzo Ntshavheni, noted the significance of this achievement, stating, “This positions South Africa as a leader in advancing economic growth through tourism, not only for the nation but for Africa as a whole.”

Jerry Mabena, Chair of the Tourism Business Council of South Africa, lauded De Lille’s leadership. “Her efforts to strengthen partnerships and showcase South Africa’s tourism potential benefit the entire continent,” he remarked.

South Africa’s preparation to assume the G20 presidency in 2025 further underscores its commitment to driving economic recovery through tourism.

Brett Heron, Secretary General of De Lille’s GOOD political party, added, “Tourism plays a vital role in our economy. Leadership on a global scale creates opportunities to enhance its contribution to economic growth.”

As independent hotels in South Africa focus on adapting to market demands and exploring innovative strategies, the country’s broader involvement in global tourism initiatives reinforces its position as a key player in the industry.

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