Africa -  South Africa - Durban

The total amount of tourists arriving in South Africa went up by about 13% in 2016 to 10,044,163 and the trend continues with an all-time high of 1,040,534 tourists (excl. tourists in transit) in January of this year, according to Statistics SA. The number of tourists travelling to South Africa has been increasing since the strict visa restrictions were eased and the devaluation of its currency. However, South Africa still needs to address a few challenges to keep the positive growth of tourist arrivals.

A continuing drought, low commodity prices and weak demand from the nation’s main export partners caused South Africa’s economy to experience a GDP growth of 0.3% in 2016 (the lowest GDP growth since 2009 recession), followed by a decline of 0.7% during the first quarter of this year. The removal of deputy finance minister Mcebisi Jonas and finance minister Pravin Gordhan from the governments’ Cabinet by President Jacob Zuma in March, resulted in the Rand’s exchange rate to drop and Standard & Poor’s to downgrade South Africa’s investment status to “junk”.


The future of SA’s tourism is looking promising though as the Rand has recently strengthened again and more than 2500 rooms are expected to be added over the next 5 years, of which a new Radisson Blu, Radisson Red, Sun International, Marriott, Tsogo Sun and Ibis are part of. The World Bank predicts a GDP growth of 1.1% in 2017 and 1.8% for 2018.

Durban is a historically stable economy and known as the sleepy third big city of South Africa, but that may change; new supply came in at the end of 2016. Protea Hotel by Marriott® Durban uMhlanga underwent a two-year expansion and a massive development called “Oceans Umhlanga” is on its way, which will include a 207-room Radisson Blu Hotel and a shopping mall. The Hilton Durban just finished their extensive renovations in May this year and a new settlement is under development just outside of Durban called Cornubia, which will change the skyline between Umhlanga and King Shaka Airport over the next 15 years. King Shaka International Airport is expected to become the city centre of Durban and expected to grow from 7.5 Million passengers to 45 Million passengers over the next 40 years.South African Airways announced a new code-share route with Air Seychelles between Seychelles and Durban offering direct flights between Durban and the Seychelles since the end of March this year. Furthermore, Durban’s network was boosted by four new airlines; Qatar Airways, Turkish Airlines, Ethiopian Airlines and Proflight Zambia.

Exchange Rate:

Exchange Rate 2015 Exchange Rate 2016 Change 2015/2016 Exchange Rate 2017 Change 2016/2017
US$ 1 1 1
South Africa - Durban 0.0666 0.07246 8.8% 0.07077 -2.3%

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

South Africa - Durban RevPAR Change

South Africa - Durban RevPAR

Year RevPAR
2010 60.09
2011 63.51
2012 56.57
2013 58.02
2014 50.77
2015 42.56
2016 48.37
2017 (f) 51.18

For more information, please contact:

Tim Smith, MRICS
tsmith@hvs.com
  • +27 797 342296 (w)
Laura Dutrieux
ldutrieux@hvs.com
Sofie Otto
sotto@hvs.com