Despite growing financial pressure on households, the accommodation sector in South Africa continued to attract more visitors in April. An increase in room occupancy was noted, although the average nightly rate was lower than a year ago.
Despite growing financial pressure on households, the accommodation sector in South Africa continued to attract more visitors in April. An increase in room occupancy was noted, although the average nightly rate was lower than a year ago.
According to the latest Accommodation Industry Survey from Statistics South Africa, total accommodation revenue increased by 6.5% compared to the same period last year in April. This growth was primarily driven by an increase in occupied rooms, rather than higher tariffs.
These figures emerged against a backdrop of difficult economic conditions for consumers. Petrol prices rose sharply in April, contributing to accelerating inflation: it climbed from 3.1% in March to 4% in April, and then reached 4.5% in May. In response, the South African Reserve Bank raised the repo rate by 25 basis points, bringing the base rate to 10.5% by the end of May.
Data from Statistics South Africa indicates that the accommodation sector maintained its resilience despite economic difficulties. The sale of overnight stays increased by 9.0% compared to April of the previous year, and the occupancy rate reached 44.1%.
Nevertheless, the average income earned per sold night of accommodation decreased by 2.3%. This suggests that accommodation businesses were able to increase total revenue by serving more visitors, rather than by raising the cost per night.
Hotels remained the largest contributor to the industry's growth, with their revenue rising by 5.2% year-on-year. Guest houses demonstrated the strongest growth among major accommodation categories, with their revenue jumping by 24.2%, and the 'other accommodation' category also showed solid growth.
However, not all segments of the industry showed recovery. Revenue in caravan parks and campsites fell by 20.5% compared to April 2025, continuing to put pressure on this part of the market.
Overall, the accommodation industry earned 6.5% more than a year ago, with 'other accommodation' and hotels making the largest contribution to this growth. Looking at a longer period, the three months ending in April, total accommodation revenue grew by 9.3% compared to the corresponding period in 2025. This growth was supported by a 10.2% increase in overnight stay sales, although the average income per night for this three-month period slightly decreased by 0.8%.