The state of jobs in South Africa’s hotel industry is the focus in this edition of the Business Day Spotlight.
Host Mudiwa Gavaza is joined by Anton Gillis, CEO of Hospitality Asset Management Company (Hamac).
The conversation centres on the state of South Africa’s hotel industry, focusing on a critical skills gap, the financial pressures on hotel owners, and the evolving role of technology.
According to Gillis, South Africa’s hospitality sector is facing concerns that threaten its long-term stability and growth.
He references Hamac’s South African Hoteliers Report, which shows that 77% of hoteliers are struggling to recruit and retain staff, while 58% report stagnant or declining profitability over the past five years, with 28% performing worse than they were five years ago.
Rising labour and utility costs, electricity instability, red tape and limited access to funding are placing sustained pressure on margins and slowing reinvestment across the sector.
Gillis also observes that the younger generation has different expectations regarding work-life balance and “on-the-job” training, which contrasts with the industry’s traditional high-pressure demands.
The hotelier also details the financial pressure operators are facing.
Despite tourism contributing about 7%-8% of South Africa’s GDP, many hotels are struggling to remain profitable due to rising utility costs (compounded by load-shedding) and red tape.
Through the session, the hospitality executive details the state of employment in the sector; financial strain on it; ways in which businesses can be more efficient; and the growing use of AI in tourism.
Gillis is enthusiastic about AI’s potential to distil data and improve efficiency. He predicts that travellers will soon use AI to book entire trips based on specific, nuanced prompts.
Despite the push for technology, he emphasises that hospitality remains a “people-first” industry. He argues that high-tech solutions cannot replace the value of high-touch human interaction.
Join the discussion:
Producer: Demi Buzo
Business Day Spotlight is an Arena Podcasts Production.
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