Sport events could save hotels

Johannesburg - The hotel industry is on the threshold of a difficult six to eight months. But several sporting opportunities count in the industry's favour.

This was indicated by Graham Wood, the new managing director of the Southern Sun hotel group, at a media conference on Tuesday.

The 2010 World Cup soccer tournament and its 2009 forerunner, the Confederation Cup, are among these events. The group also expects about 50 000 visitors will stream into South Africa next year as part of the British Lions tour.

He says the first impact of a downturn could already be seen in August.

Southern Sun has noticed a decline in the volume of visitors, visits are shorter and corporate visitors are using cheaper accommodation.

In addition, several competitors have recently opened their doors, contributing to a fall in demand.

Wood expects a level of recovery by the middle of next year and considers it possible for growth to follow.

South Africa has an average 70% room occupancy. Wood points out that certain hotels are therefore full to bursting in peak times, and expansion is therefore still welcome.

Southern Sun has made about 80% of its rooms available to Fifa's booking agency Match for the World Cup. About 20% of these rooms have already been booked and the group is not concerned that the rest of the rooms will not also be occupied.

"It's not like the situation in Germany, where people could drive in for the day," says Wood.

People need accommodation, and Match sells packages extending over at least five days.

Southern Sun is also the "exclusive home of the Miss World 2008".

The 112 participants are already in South Africa and the competition is to be broadcast on December 13 from Southern Sun's Sandton conference centre.

- Sake24