GENERAL spikes around big events, but overall, South Africans are cautious, and disposable income is still tight. Relying on one market is no longer sustainable – diversification is key, going forward.”
Though domestic travel didn’ t drive growth in 2025, it played a crucial role in keeping businesses afloat during quieter months.“ The reality is that locals still want to travel, but their wallets don’ t always allow it. The sector’ s performance is tightly linked to the health of the broader economy. When the economy struggles, so do everyday travellers.”
The Covid-19 recovery
We all remember that first wave of the Covid-19 pandemic in 2020, which led to global lockdowns and severely impacted the travel sector. Now, nearly six years later, how has the industry fared? According to Singer, we’ re essentially seeing two different industries in one country.
“ Destinations with strong international appeal, particularly Cape Town, are outperforming 2019 in terms of Average Daily Rate( ADR) and Revenue Per Available Room( RevPAR). This demand is giving operators the space to reinvest and upgrade,” she says.
“ Guests want to feel connected to the destination and expect technology to make their stay frictionless.”
Elsewhere, however, the picture is quite different.“ In provinces that rely heavily on domestic and corporate markets, occupancy rates and prices are under pressure – in some cases, even slipping backwards. This is a warning sign we can’ t ignore.”
Getting back on track
What lies ahead for the hospitality industry in 2026? Singer points to three key priorities: 1. Fixing the operating environment:“ We’ ll continue pushing to reduce unnecessary red tape. The win with the Bargaining Council was significant, but there’ s still work to be done. Liquor licensing reform, local bylaws and other constraints on SMEs are ongoing challenges.”
2. Developing talent and rebuilding the pipeline:“ Skills shortages are our biggest long-term threat. We’ re strengthening partnerships with initiatives like the Future Leaders Challenge, universities, and the Department of Tourism’ s graduate placement programme. Growing talent is not negotiable.”
3. Securing reliable infrastructure and service delivery:“ We will continue engaging municipalities and government departments. Water, electricity, and basic services aren’ t‘ nice to haves’, they are the backbone of every hospitality business in South Africa.”
For the year ahead, Singer identifies three major trends in guest expectations: authenticity, sustainability, and digital experience.“ Guests want to feel connected to the destination and expect technology to make their stay frictionless,” she explains.
And what do guests not want?“ Anything generic. Businesses without a clear story, identity or meaningful community connection are losing favour,” Singer cautions.“ Your brand, your partnerships, and your digital touchpoints are just as important as your physical property.”
The tools to thrive
To help operators work smarter, not harder, there are plenty of tools available to assist.“ AI-powered revenue management and communication tools that support pricing decisions and personalise guest interactions at scale are essential,” says Singer.“ Integrated Property Management Systems( PMS) now give operators a comprehensive view of the guest journey. Additionally, smart energy and water systems are crucial in South Africa, where utilities can be unpredictable.”
Community engagement remains vital as well.“ We placed 250 youth trainees with our members in partnership with the Johannesburg Tourism Company( JTC), and we continue driving uptake of the Department of Tourism’ s graduate placement programme,” Singer shares.“ In the Western Cape, our Skills Development Fund with Bestinvestin is providing real support and access to opportunities for SMMEs in indigenous communities. These aren’ t tick-box initiatives – they’ re building blocks for genuine inclusion and long-term growth.”
Lessons for 2026
Looking back on 2025, Singer offers simple but powerful advice for the year ahead:“ Stay curious. Learn everything – not just about your own department. Understand AI, digital marketing, compliance, and finance. Build your network early and use platforms like FEDHASA Young Professionals to connect with people who’ ve built long, resilient careers.”
Hospitality is a challenging industry, but it can also be one of the most rewarding if you stay committed to continuous learning and service excellence.
“ Your growth is your responsibility,” Singer says,“ and your relationships will shape your future.” TT
2026 / TRADE & TASTE 9