World Cup boosts popularity of Africa holidays
The world is buzzing with football euphoria and this seems to be having a positive effect on the country in which the World Cup is being hosted this year, as South Africa enjoys an unprecedented tourism boom with all the world's attention being drawn here
Confirming the expectations of many in the Africa travel and tourism industry, the FIFA World Cup 2010 being currently held in the African continent has significantly boosted the popularity of Africa holidays among football and non-football fans alike. As much attention has been turned to the southern continent, South Africa hotels are enjoying a great momentum as rooms started to fill up very quickly before the games started, signalling a bright summer for Africa holidays and putting South Africa holidays firmly on the map.
South Africa has now officially greeted and welcomed the world as the FIFA World Cup kicked off on 11th June 2010 and in doing so it received millions of football fanatics coming to enjoy sporty South Africa holidays. Data from STR Global, the leading provider of market information to the global hotel industry, showed that prior to the start of the tournament and in-line with many other parts of the world, the country’s revenue per available room (RevPAR) had began to trend upward during 2010. Nationwide RevPAR registered a small increase of 1.3 % between April 2010 and April 2009. Furthermore, whilst the supply of available rooms has been increasing steadily compared with the previous year as hoteliers gear up to host fans from all over the world, the change in demand, measured as occupied rooms, has also begun to trend upwards in 2010 as seen in the graph below. The peaks for RevPAR and demand during June 2009 coincided with the hosting of the Confederation Cup, the prelude to this year’s competition.
The additional new supply in host cities has negatively affected year-to-date RevPAR results.. All markets reported year-on-year occupancy declines, which drove the RevPAR decreases. Despite falling occupancies Cape Town, Nelspruit and Pretoria have still managed to register modest increases in average daily rate (ADR).
As experienced by other host nations in the past, the long-term influence of the FIFA World Cup on the image and promotion of South Africa holidays to the millions watching on TV should provide a positive boost for future hotel demand of hotels in South Africa.
“The immediate impact of the thousands of visitors on the hospitality industry will be reported by STR Global”, said Elizabeth Randall, managing director of STR Global. “With a sample of hotels covering more than 40,000 rooms in South Africa, we are the ‘go to’ resource when it comes to understanding the performance of the South African hotel market”.
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