VENUE NEWS
Premier Resort Cutty Sark.
Premier Hotel Quatermain.
Investment plans in a struggling SA tourism sector
Throughout 2020, while many hotel groups paused development, there were hotel chains that chose to boost the hospitality and tourism sectors to create more possibilities for guests.
A
nationwide hotel group has emerged from lockdown after a half a billion-rand investment bolstering two new-builds and four refurbished properties across South Africa, boosting the tourism sector after travel restrictions having been lifted. Premier Hotels & Resorts strategically chose to acquire land in Umhlanga and develop during the pandemic. This is certainly reassuring for the revival of the industry and the securement of jobs. Its significant R365-million spend covered the construction of two hotels on one precinct, high up on Umhlanga Ridge in KwaZulu-Natal. The new builds are a
four-star Premier Hotel Umhlanga with 127 bedrooms designed to maximise the use of its location, with all bedrooms having unrivalled Indian Ocean views and balcony access and a three-star Premier Splendid Inn Umhlanga that will feature 63 bedrooms, its own 50-seater restaurant along with a spectacular conference centre. “This marks another milestone as we expand and project the brand’s robust growth in the region, further showcasing the group’s strong commitment to South Africa,” said Samuel Nassimov, managing director of Premier Hotels & Resorts. “Low occupancy rates generated its own set of challenges, but we remain optimistic and
Premier Hotel Roodevalley.
38 Business Events Africa May 2021
relentless in finding efficiencies to maximise future opportunities.” An appetite for travel still definitely exists, with business travellers and travel confidence continuously increasing, but corporate travel can only be expected to recover considerably, to pre-pandemic levels, by June 2022. Covid-19 has pushed the tourism industry to breaking point. Unfortunately, research also indicates that the recovery process may still take years. It is estimated that while the average number of business trips per traveller was six to eight per year in pre-Covid times, this number is forecasted to fall to three to four trips per annum until the year 2023. According to Stats SA, income from accommodation decreased by 66,8 per cent year-on-year in November 2020, the result of a 52,7 per cent decrease in the number of stay unit nights sold and a 29,7 per cent decrease in the average income per stay unit sold. The largest decline in income was reported by hotels, down 69,6 per cent. “Our decision to invest in Umhlanga, even during this difficult time, is testament to the confidence we have in South Africa’s ability to recover economically,” Mr Nassimov said. “The Umhlanga project will position the Premier Group as a firm www.businesseventsafrica.com
