Well-timed boost for hospitality
ALTHOUGH the short-term outlook for the hospitality industry is challenging, the World Cup will provide a much-needed boost to hotel profits, and the medium-to long-ter m outlook for the industry remains positive.
So says Gerald Nelson, the chief executive of Hospitality Property Fund, which invests exclusively in hotel and leisure properties and has interests in 23 hotel and resort properties in South Africa.
The fund last year issued a trading statement that its total distribution and linked unit for its next distribution period, ending December 31, 2009, was likely to be between 30 percent and 40 percent lower than that of the previous corresponding period.
“ Hospitality Fund’s forward bookings suggests that the corporate and conferencing market segments should pick up from February, but foreign leisure travel is likely to remain depressed in the early part of the new year and Government conferencing bookings so far have remained substantially below historic numbers,” says Nelson.
“In this environment, the World Cup is superbly timed and placed to revive South Africa’s hotel profits,” he says.