South Africa's Hotel Industry

Abstract

South Africa's hotel industry is in a state of flux, especially due to uncertainties surrounding the nation's upcoming (1999) elections, the current international financial crisis, and the logistical difficulties of implementing South Africa's 1996 Gambling Act. Nevertheless, South Africa has a relatively developed infrastructure and the most advanced economy in sub-Sahara Africa. Some 12,500 new hotel rooms may be needed by 2000, although some areas are or soon will be overdeveloped. Hotel development in South Africa historically has been left to domestic companies and consortiums. Today, however, most major international hotel groups have or are seeking a foothold in South Africa. Room rates are growing substantially, after years of being kept low, but some travelers are balking at such rapid rate increases. The prospects for legal casino gaming were expanded in 1996, but new controls, a cumbersome bureaucratic governing system, and provincial turmoil and lethargy have created bottlenecks in implementing the plan. Education and training of line-level workers is an ongoing problem, and college-trained hospitality managers are urgently needed.