The data, released on Monday by Statistics South Africa (Stats SA), indicate that the tourism sector is still rebounding from the lockdowns imposed to contain the pandemic, which is good news as the Christmas holiday season sets in.

But consumers are still not booking rooms at the pace they did before the pandemic hit. At 40.7%, the occupancy rate in October remained well below the 50.4% rate recorded in February 2020. 

A number of factors are probably at play here. South Africa is in the midst of a cost of living crisis with high inflation and rising interest rates – a combination that can keep “pent-up demand” pent-up for a while longer. 

The South African consumer is cash-strapped and cash-strapped consumers forgo luxuries such as hotel stays. 

Still, there is an undeniable rebound. 

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In May and June, hotel occupancy rates were only 32.9%. And income generated by the sector continues to rise, albeit at a slower rate. 

Total income for the tourist accommodation industry increased by 35% in the year to October, after growing 79.3% in September and 55.2% in August. 

In the year to July, it had surged 189.3%, a reflection of the state of lockdowns in July last year, as well as the KZN riots. 

And foreign tourists have been returning in larger numbers, with this Christmas season the first since 2019 when there was either no lockdown regulations or cumbersome and expensive international travel rules such as vaccine requirements and Covid-testing before flights. 

So, hopefully, the growth trend will remain in place and pre-pandemic occupancy levels are eventually reached. 

The tourist accommodation sector is labour intensive, providing badly needed jobs in an economy with an unemployment rate of almost 33%. 

It also provides plenty of opportunities for small and family-run businesses. And it is a sign that consumers have the confidence and means to pay to stay away. DM/BM