GENERAL
SOUTH AFRICA’ S HOSPITALITY SECTOR SAW BIG WINS, BIGGER CHALLENGES AND A SHARPLY DIVIDED RECOVERY IN 2025. FEDHASA CAPE’ S LEE-ANNE SINGER BREAKS DOWN WHAT REALLY HAPPENED, AND WHAT MUST CHANGE IN 2026.
FEDHASA Chairperson Lee- Anne Singer
Describing 2025 as an“ interesting” year for South Africa might be an understatement. Despite the numerous challenges, the country managed to emerge stronger than ever before, earning the admiration of global leaders.
For Lee-Anne Singer, Chairperson of FEDHASA Cape, the most significant achievement of 2025 was seeing years of relentless advocacy finally translate into tangible results.“ These weren’ t just symbolic victories – they’ ve fundamentally changed the operating environment for businesses on the ground.”
One of the most notable breakthroughs was the withdrawal of the Bargaining
Council extension.“ Removing these blanket regulations gives non-party businesses a fighting chance again,” explains Singer.“ Another win was the approval of 20-year leases for coastal properties in KZN. This kind of certainty is essential for unlocking investment and creating jobs.”
However, as Singer points out, the country’ s dual-track economy has become even more pronounced.“ Cape Town is thriving; international spending is strong, and demand remains steady. But many domestic-reliant businesses in other provinces are facing real pressure. When municipal services collapse, the divide only widens. You can’ t run a hotel or restaurant without water, electricity, and basic infrastructure – it’ s as simple as that.”
Recovery has been uneven, with some sectors and regions still struggling. Singer describes the situation as“ truly K-shaped”, with some sectors seeing growth while others remain stagnant.
A tale of two economies
“ International leisure, particularly in the Western Cape’ s higher-end market, is performing exceptionally well,” Singer explains.“ Spending is high, the length of stay is healthy, and there’ s a real sense of confidence. The MICE( Meetings, Incentives, Conferences, and Exhibitions) sector is also bouncing back strongly, supported by major global events choosing South Africa once again.”
On the flip side, domestic leisure and corporate travel remain soft.“ We see
8 TRADE & TASTE / 2026