Dur­ban

Tourism Tattler - - BUSINESS & FINANCE - For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/South_Africa_-_Dur­ban

Dur­ban is the only Com­mon­wealth coun­try city that agreed to play host to the 2022 Com­mon­wealth Games. Prepa­ra­tions have started with the an­nounce­ment of many com­mer­cial projects. Dur­ban ho­tel per­for­mance was more or less in line with that of the other two South African cities we are cov­er­ing with growth in both oc­cu­pancy and ADR.

Ho­tel val­ues in South Africa rose im­pres­sively in 2015 in Rand terms, due to a steady in­crease in rev­enue per avail­able room. How­ever, in dol­lar terms the coun­try has not done so well, with a 16% drop in value for Jo­han­nes­burg and Dur­ban in 2015. Cape Town bucked the trend with only a mar­ginal de­crease in US$ terms. This per­for­mance is con­sis­tent with the cur­rency cri­sis that was ev­i­dent through­out all the emerg­ing mar­ket economies.

Dur­ban is still a grow­ing mar­ket with strong oc­cu­pancy growth com­bined with a 12% in­crease in ADR in 2016 will lead to an 18.7% REVPAR in­crease. With a low amount of sup­ply com­ing in and a grow­ing demand, the ho­tels' per­for­mance is ex­pected to keep grow­ing at a steady pace. In line with the two big other South African cities, Dur­ban ben­e­fit from the ex­change rate and the in­crease in value is 29% in 2016.

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