Leading up to the seventh edition of the Hotel & Hospitality Expo Africa in June, the African Hospitality Confidence Index 2024 offers key insights into the trends shaping the hospitality sector on the continent.
“The latest Confidence Index paints a vivid picture of a vibrant, positive industry in which the majority, at 80%, of hotel, bar and restaurant operators, along with industry suppliers are looking to the future with growing confidence and optimism,” says Margaret Peters, Event Manager for Hotel & Hospitality Expo Africa at dmg events South Africa.
“Many businesses have recovered from the pandemic and are entering a new growth phase encompassing greater technological development, increased access to financing and a focus on nurturing industry talent, whereby 55% of respondents now have systems to foster employee satisfaction and loyalty.”
An impressive 92% of respondents highlight the significance of ‘bleisure,’ with business and leisure tourists constituting a substantial portion of customers. The rising popularity of ‘bleisure’ is driven by a combination of pent-up travel demand post-pandemic and the increasing prevalence of remote work. The emphasis on achieving a better work-life balance is poised to play a pivotal role in shaping the tourism and hospitality industry in the coming decade. Projections indicate that the global bleisure market’s value will more than double from 2022 levels, reaching $731.4 billion worldwide by 2032, with a compound annual growth rate (CAGR) of 8.9%.
The Confidence Index offers a profound understanding of emerging trends from industry insiders. Peters adds that it serves as a valuable reference point for peers in the industry, particularly with the integration of AI and a heightened focus on Environmental, Social, and Governance (ESG) factors amid increased competition for customers.
A significant 89% of respondents stress the importance of ESG action for the sector’s long-term success, although there is ongoing work to bring this commitment to fruition. Those who have implemented ESG measures, such as green or renewable energy and increased recycling, report positive business outcomes, with 57% noting enhanced customer satisfaction and loyalty.
The Confidence Index, now in its second year, is a comprehensive and up-to-date snapshot of the African hospitality industry. Jointly conducted by dmg & Kaoun and Moore Global, this annual research initiative captures evolving industry perceptions. Participation has grown from 315 respondents in 2023 to 537 (+70%) in 2024, with representation from almost double the number of African countries compared to the previous year (17 to 30). Notably, suppliers were included as participating respondents for the first time, enabling this crucial industry segment to contribute their perspectives.
With the African continent projected to be the world’s second fastest-growing economic region and boasting the youngest and fastest-growing population globally, reaching 2.5 billion by 2050, there is anticipated growth in the middle class and the emergence of megacities with populations exceeding 10 million. These factors are expected to drive increased demand for hospitality services.
“This growth will lead to an increasingly complex operating environment, particularly as digital transformation and modern measures can boost the bottom line and improve guest experiences,” adds Moore’s Takacs.
“The industry across Africa remains ambitious, optimistic, and determined to overcome challenges and embrace opportunities.”
The 2024 edition of the Hotel & Hospitality Expo Africa, scheduled for June 11-13, 2024, at the Sandton Convention Centre, aims to bring together industry players to foster growth, networking, and overall success.
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