South African Business 2021

OVERVIEW Tourism and

OVERVIEW Tourism and events The MICE sector faces special challenges. SECTOR INSIGHT Tsogo Sun Hotels has increased its stake in three hotels post-lockdown. Credit: AfriCamps at Ingwe Although all projections about the tourism sector and its potential for growth and for job creation were shortcircuited by the Covid-19 pandemic, the fact remains that the sector can grow quickly and it is a good job creator. In the short term, domestic tourism will be the focus but the potential of the sector, and South Africa’s riches in terms of what it can offer, remain significant. According to John Loos, a property strategist at FNB Commercial Property Finance, an overlooked factor in many analyses of the Covid-19 lockdown has been how technology has shown that some business travel can be avoided altogether. Corporate travel budgets will be cut, and fewer physical conferences will be held, he predicts, which will put the meetings, incentives, conferences and events (MICE) sector under even more pressure. A relatively small market currently, but one with massive potential, is Muslim tourism. The Western Cape has already started doing research in its agricultural and tourism sectors and there is no doubt that with good marketing, South Africa could start gearing up for a growing number of Muslim tourists. The fact that most of the country’s major cities have a proportion of Muslim residents and mosques are widely spread across the country means that travelling around the country is easy. The 16 units that comprise the Buckler’s Africa Lodge by BON Hotels on the banks of the Crocodile River overlooking the Kruger National Park has halal certification. A coastal option that allows for selfcatering is AfriCamps Boutique Glamping site at Ingwe near Plettenberg Bay. Situated on a hilltop with great views of the ocean and the Tsitsikamma Mountains, the luxury tents have fully-fitted kitchens. Virtual tours have been taken up by heritage operators such as Constitution Hill and Liliesleaf Farm and this option is likely to grow as people in other countries seek out a South African experience free from any worries. When the Marriott International hotel group closed three of its South African hotels during the Covid-19 lockdown, Tsogo Sun Hotels, which owns a controlling stake in all three hotels, stepped up its commitment by agreeing to bring them into its portfolio, keep them open and run them. Two of the affected hotels were the Protea Hotel by Marriott Hazyview in SOUTH AFRICAN BUSINESS 2021 82

OVERVIEW Mpumalanga and Durban’s Protea Hotel by Marriott Durban Edward. The third hotel, the Mount Grace in the Magaliesberg, was originally developed by the Brand family and was the sister hotel to The Grace in Rosebank. Tsogo bought and restored The Grace in 2015 and it currently operates as 54 on Bath. The Tsogo group believes that demand for conferencing, weddings and shorter family getaways will grow and that the Mount Grace, with its close proximity to Johannesburg, is in a good position to respond to those markets. Tsogo Sun Holdings split its casino and hotel operations in 2019 in order to unlock value in the two sectors. With a market cap of R25-billion, Tsogo is the country’s biggest hotel group. It has 36 hotels and three casinos in Gauteng. The hotel brands cover four market segments, and they include a handful of stand-alone hotels such as the Palazzo (at Montecasino) and the boutique hotel in Rosebank. SunSquare, Southern Sun Hotels, Southern Sun Resorts, Garden Court and StayEasy are among the group’s brands. The move by Marriott International into the South African market was seen as significant, and it retains most of its properties. In partnership with the Amdec Group, Marriott spent about R1-billion on the Marriott Hotel Melrose Arch and Marriott Executive Apartments Johannesburg Melrose Arch. Buying into Protea Hotels has also given Marriott access to other African countries. A three-billion-year-old micro-fossil found in the Makhonjwa Mountains in Mpumalanga is thought to be the oldest sign of life on the planet. The Makhonjwa Mountains were declared a World Heritage Site by UNESCO in 2018. Culture and heritage accounts for 40% of world tourism and is one of the fastest-growing subsectors. In Durban, a joint venture between MSA Cruises SA and Africa Armada Consortium is spending R175-million on the financing‚ construction‚ maintenance and operation of a cruise terminal for a 25-year concession period. The Port of Cape Town has launched its dedicated cruise-ship terminal, and the area between the terminal and the Cape Town International Convention Centre is being developed as a multi-use precinct called the Yacht Club. On the western edge of Cape Town’s Foreshore, an ambitious plan envisages two new hotels, flats, retail space and offices rising out ONLINE RESOURCES African Business Travel Association: www.abta.co.za South African Golf Tourism Association: www.sagta.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net South African Tourism Services: www.satsa.com Credit: Buckler’s Africa Lodge of ground currently occupied by three car dealerships and a roadworthy station on Christiaan Barnard Street. The Harbour Arch concept is based on Johannesburg’s Melrose Arch, with seven tower blocks to be constructed on 200 000m², roughly half the footprint of the V&A Waterfront. Peermont Hotels, Casinos and Resorts has added the Emerald Resort & Casino to its portfolio of properties. Peermont purchased the Vanderbijlpark property from US company Caesars Entertainment Corporation, which brings to 11 the number of casino resorts it runs on the subcontinent. There are 711 745 people employed in the tourism industry nationally, with road transport (29%), food and beverages (20%) and accommodation (19%) absorbing the largest numbers. The sector contributes 9% to South Africa’s gross domestic product (GDP). ■ 83 SOUTH AFRICAN BUSINESS 2021