South African hoteliers score during FIFA World Cup |
London, 6 August 2010 — Analysis by Deloitte reveals that revenue per available room (revPAR), a key performance indicator for the hotel industry, jumped 121.7 percent to ZAR1,099 in South Africa during the month of June, compared with the same period last year, when it became the first African nation to host the FIFA World Cup. This jump in hotel performance was due to a 100.9 percent increase in average room rates, while occupancy increased to 63.7 percent, up from 57.7 percent in June 2009, according to data prepared by STR Global.
Marvin Rust, Global Managing Partner of Hospitality at Deloitte, commenting on the results, said: “Although the full economic impact of the World Cup has yet to be tallied, the tournament brought astounding success to South African hoteliers during the tournament, with revPAR growth in excess of 120 percent. This jump is far greater than the 33 percent increase experienced in Germany, when the country hosted the 2006 World Cup. However, it should be noted that the location of South Africa ensured that supporters stayed in the country for a longer period of time.”
Marvin continued: “As time passes, the legacy of the event will become apparent but so far, South Africa has already seen an overhaul to its tourism infrastructure and improved international perceptions in terms of being a safe destination to visit. The benefits reach beyond the borders of South Africa and the profile of tourism across Africa has also been raised with the flood of media covering its tourism offerings.”
Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “Alongside the Olympic Games, the World Cup is one of the biggest, most prestigious sporting events a country can host. Such a tournament can greatly elevate the global stature of host nations and cities. The media profile a tournament like the World Cup brings to a country is immense – providing a real showcase of the country and culture.”
Hotel performance in World Cup host cities in local currency
| Cities Year-to-May 2010 | |||||||
|---|---|---|---|---|---|---|---|
| Host | Date | Occupancy (%) | Occupancy change (%) | Average room rates | Average room rates change (%) | RevPAR | RevPAR change (%) |
| South Africa | Jun-10 | 63.7 | 10.3 | 1.726 | 100.9 | 1.099 | 121.7 |
| Durban | Jun-10 | 61.5 | -8.6 | 1.456 | 75.0 | 896 | 60.0 |
| Cape Town | Jun-10 | 57.8 | 15.9 | 1.976 | 117.4 | 1.143 | 152.0 |
| Johannesburg | Jun-10 | 80.6 | 27.1 | 1.539 | 96.0 | 1.241 | 150.3 |
| Germany | Jun-06 | 64.6 | -3.2 | 106 | 37.5 | 69 | 33.0 |
| South Korea | Jun-02 | 72.5 | -8.7 | 250.105 | 36.0 | 181.441 | 24.3 |
| Japan | Jun-02 | 73.8 | -5.2 | 16.271 | 6.1 | 12.008 | 0.6 |
Source: STR Global
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