Africa -  South Africa - Durban

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HVS In-Depth Africa Hotel Valuation Index:   2021 | 2016 | 2015 | 2014

Ramaphosa’s proposals to revitalize the country in 2018 sounded promising and following the excitement of a change in presidency, the GDP grew by 2.6% and 1.4% in the last two quarters of 2018 respectively. 2019 saw a sharp decline in GDP in the first quarter of just over 3% reflecting in part the effects of Eskom’s power cuts on mining and manufacturing. While there was a growth of over 3% in the second quarter, the South African Rand and the general economic sentiment remains bleak amidst the global economic slowdown and the USA China trade war.

National elections took place on the 8th May 2019 and the ANC won with 57.5% of the count which was its worst performance by the party in any national election. There were just a few service delivery protests leading up to the elections and on election day, otherwise it was a peaceful turnout.

Durban’s King Shaka International Airport (KSIA) is the fastest growing airport in South Africa with international arrivals increasing by over 10% during the high season (October to April) 2017/2018 to 2018/2019. Even more impressive was the increase of international passengers from November to December 2018: over 42%. British Airways’ direct route between London Heathrow and KSIA that was introduced in October 2018 has been a great incentive for people to choose this route to come into South(ern) Africa. Even with a weak currency, soaring petrol prices and increased VAT, domestic travel to Durban was almost 15 times higher than the international passenger numbers.

Just weeks after the Tourism Indaba in Durban this year landowners Tongaat Hulett Developments signed a R1 billion deal with Club Med to build their first luxury resort in South Africa in Tilney Town 10 km from King Shaka Airport. There are only 3 other Club Meds in three other African countries: Morocco, Tunisia and Senegal. This one in southern Africa is planned to open in 2022 with 350 rooms and 50 villas.

Duban’s beachfront promenade extension is nearing completion. The R35bn Point Waterfront development will be undertaken in three phases over the next 15 years. In addition, a R200 million redevelopment of the Durban Cruise Terminal is on its way and is planned to be completed by March 2020. A Radisson Blu with 207 rooms and a Hilton Garden Inn with 203 rooms are both scheduled to open next year in Umhlanga. All of this will be happening alongside the Oceans Umhlanga project as mentioned in the previous HVI.

Change In Value For Market:

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: More than -10%

For more information, please contact:

Rishabh Thapar, MRICS
[email protected]
  • +27 0 792790584 (m)