Education and Tourism Correspondent

SA's hotel sector did not enjoy robust growth in December as expected, according to Statistics SA (Stats SA) figures, raising doubts about whether the tourism industry did have a bumper festive season.

Figures released by Stats SA yesterday showed that hotel room occupancy levels were up slightly at 0,4% for December compared with the same period in 2002, but dipped 0,4% for the three-month period ending December.

Although the hotel sector does not reflect total tourism growth, the figures do indicate that SA's tourism sector has failed to recoup most of the losses incurred through declining foreign tourist arrival numbers in the second half of last year.

It also questions the validity of statements from tourism authorities that SA still maintained significant growth in foreign visitors despite the strong rand, a global slump in travel and relatively high prices hitting businesses.

Figures from Cape Town International Airport showed that overseas tourist arrival numbers (excluding Africa) were up 6% in December last year compared with the corresponding period in 2002, while domestic numbers climbed 4%.

But the December hotel statistics issued yesterday showed a 16,8% drop in room occupancy levels and a 10,2% loss in total income at five-star hotels, which are usually occupied by foreign tourists.

Similarly, occupancy levels at four-star and three-star hotels dipped 8% and 0,5% respectively over the same period.

As expected, Western Cape saw a 2,4% drop in room occupancy levels and a 2% loss in total hotel income.

Growth was constrained mainly by the extra supply of hotel beds in Cape Town compared to previous years, and increases in accommodation rates.

Occupancy levels in Limpopo and Free State also declined 2,3% and 0,5% respectively.

However, the figures showed that the domestic tourism market ended on a high note, reflected in the 9,8% rise in total income and the 5% increase in occupancy rates at one- and two-star hotels in December.

Increases in the room occupancy levels were recorded in 13 of the 25 tourism regions. The largest growth was recorded by Northern Cape (4,2%), followed by KwaZulu-Natal (2,9%) and Mpumalanga (2,1%).

Gillian Saunders, head of tourism and hospitality at Grant Thornton, said domestic growth was boosted by hotel groups, mainly Southern Sun, selling discounted packages for December.

She said hotels performed poorly because domestic tourists opted for timeshare accommodation, chalets and camp sites.

The Tourism Business Council of SA said the hotel industry performance should not be used an indicator to measure the growth of the whole tourism sector as it formed only a small slice of the tourism pie.

Feb 13 2004 07:21:06:000AM Sharda Naidoo Business Day 1st Edition