FEDHASA Reports Strong Performance for Tourism Accommodation as Sector Sees 12.1% Income Growth in January
The latest data from StatsSA has provided a significant boost to the South African tourism industry, revealing a 12.1% increase in total income for the country’s accommodation sector in January 2025, compared to the same period in 2024.
The survey encompassed a range of accommodation types, including:
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Hotels, motels, inns, and houseboats
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Caravan parks and camping sites
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Guest houses and guest farms
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Other accommodation options
Across the board, the accommodation sector recorded a 16.7% year-on-year increase in income, driven by a 4.5% rise in occupancy and an impressive 11.7% jump in average income per stay. Hotels were the standout performers, contributing 14.1 percentage points to the overall growth with a remarkable 24.6% increase in revenue.
“These positive trends are a clear indication of growing traveller confidence, strong demand for accommodation, and the resilience of our hospitality sector,” said Rosemary Anderson, National Chairperson at FEDHASA. “It has been a busy accommodation season, and we are thrilled to see the hard work paying off. We are encouraged by the steady rise in international arrivals and increased spending across the accommodation industry. This is not only a great outcome for our members, but it’s also vital for the broader industry’s success.”
The upward trajectory is further reinforced by quarterly data, which shows a 14.1% increase in accommodation income for the three months ending January 2025, compared to the same period in 2024.
Anderson expressed optimism about the Department of Home Affairs’ ongoing efforts to streamline entry for tourists from the world’s two fastest-growing tourism markets—India and China. She highlighted that initiatives such as visa reforms, digital transformation, and an enhanced marketing strategy by SA Tourism are poised to help South Africa surpass its 2019 inbound tourism figures. Furthermore, improved air connectivity and strategic partnerships with key international markets are expected to play a pivotal role in sustaining growth throughout 2025.
In contrast, the food and beverage industry is facing a more mixed picture, with varying consumer spending patterns reflecting the financial pressures on many households.
While overall sector income saw a modest 1.8% increase for the three months ending January 2025 compared to the same period in 2024, growth was largely driven by takeaway and fast-food outlets, which saw a strong 7.4% increase and contributed 2.8 percentage points to the total rise.
Conversely, restaurants and coffee shops experienced a 4.0% decline, dragging overall growth down by 2.0 percentage points. This shift indicates that many consumers, facing tighter disposable incomes, are opting for more affordable takeaway options rather than dining out at sit-down establishments.
Short-term trends show signs of sluggish momentum in the food and beverage 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 suggest a growing preference for cost-effective dining solutions in response to economic pressures.
Despite these challenges, FEDHASA continues to work closely with industry stakeholders to maintain momentum and address the sector’s ongoing challenges.
“As the voice of hospitality in South Africa, we remain committed to supporting our members and collaborating with government and industry leaders to foster sustainable growth,” Anderson added.
With positive growth in the accommodation sector and a dynamic approach to navigating current challenges, South Africa’s tourism industry remains poised for continued success in 2025.
