Johan Scheepers
Domestic business in South Africa has been affected by political change and cost-cutting in recent years. This has left opportunities for international corporates to take advantage of competitive rates and strong availability. In Johannesburg bigger, well-established hotel chains are increasing their presence, but we are finding there is migration away from cookie cutter hotels to independent properties.
Independent hotels offer competitive rates and value for money which buyers should consider in their hotel programmes. When negotiating rates buyers should look at options for value add, not only savings on room rates. A hotel is a home away from home for a lot of guests and choosing a hotel that offers more 'value adds' such as complimentary WiFi, easily accessible parking or a vibrant restaurant makes a stay more comfortable. It also saves on the bottom line. Also look for services specifically for business travellers such as business lounges which save on booking extra nights for an early check in.
As a hotel we would like volume preferably throughout the year and not just in certain months. We would be happy offering a lower rate throughout the year if we knew that travel would not only occur in our high demand months, where we could be getting a higher rate from non-contracted business. My advice to buyers is to negotiate when possible on the basis of a number of room nights per month throughout the year.
There is a significant amount of development in Johannesburg particularly in Sandton, which is growing as a recognised business hub. A number of corporate companies are relocating their head offices to the area, particularly those in banking and law. Security has been significantly improved in South Africa since the World Cup and the upscale Sandton neighbourhood is one of the safest areas for travellers to stay. Our rates and business have not really affected by these new developments as they are still set on demand. But with new offices opening in the area against limited new hotel openings, we expect the demand to increase in the next year.
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Sandton is a growing business hub in Johannesburg. ©M_D-A/iStockServiced apartments could be seen as a challenge, and more are opening in Sandton, but we're finding that they are being used more often by long term travellers for convenience and affordability. We have not really felt the pinch as of yet, but believe it could be a factor in the future and something to watch. We still anticipate hotels to be more popular amongst corporate travellers as hotels can cater to all their needs.
There have been some concerns that new visa regulations recently put into effect will make it more complicated to come to South Africa. Visas are now required from some new global destinations, such as China. Travellers need to apply in person and minors must present an unabridged birth certificate to obtain a visa. We do not envisage this impacting business travel to South Africa but buyers must be aware that the regulations are changing.