What Impact Did the World Cup have on Hotels in South Africa?

The 2010 FIFA World Cup in South Africa ended 11 July with Spain crowned as the new champions, but which hotel market came out on top? STR Global now provides its daily benchmarking service to hotels in the Rainbow Nation and the results show a picture of mixed performance among the various host cities across South Africa and between match and non-match days.

 Sandton hotels reported the highest occupancy levels during the World Cup period (11 June – 11 July), growing by 22 percentage points to 84% in occupancy compared to the same period last year and increasing by 28 percentage points to 90% occupancy on the match days themselves compared to the same days last year. Sandton’s RevPAR, driven by both occupancy and ADR, grew 259% for the period and 296% during the 15 match days in Johannesburg as compared to the same respective time frame in 2009.

Sandton and the entire Gauteng Province profited most significantly from the World Cup as three of 10 venues, Soccer City and Ellis Park Stadium in Johannesburg and Loftus Versveld Stadium in Pretoria, were easily accessible from hotels within the province. Gauteng achieved the second highest occupancy (81%) during the period and 86% during match days as well as the second highest RevPAR with 2379 ZAR for the period and 2610 ZAR during match days.

In Cape Town, RevPAR increased 220% for the period and 245% on match days. The driving factor for these results was strong ADR. Occupancy in Cape Town was lower than in Gauteng Province with an average 67% for the period and 79% on the eight match days.

Durban, host of seven matches, experienced the most significant difference between match and non-match days. During match days, occupancy reached 82% but only 61% during the full four-week period. The achieved RevPAR for Durban was 1286 ZAR for the World Cup period and 1919 ZAR during match days.

“The legacy of the World Cup should continue to provide an opportunity for South African hoteliers,” said Elizabeth Randall, managing director of STR Global. “The nation’s warmth and hospitality was experienced by international spectators in the stadia and projected on television screens worldwide. This goodwill coupled with significant investments to the infrastructure, Durban’s new King Shaka International airport, new express bus services, new high-speed train connecting Greater Johannesburg with the airport and Pretoria, will contribute ongoing benefits to the South Africa hotel industry.”

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