Staffing shortages and rising costs threaten hospitality sector

SOUTH Africa's hospitality sector may be welcoming guests back, but behind the scenes, many operators say the industry is still fighting for survival.

- SIPHESIHLE BUTHELEZI

A new industry survey shows that staffing shortages, rising operating costs, and limited confidence in key tourism institutions are combining to slow what should have been a post-pandemic recovery. According to the inaugural South African Hoteliers Report by Hospitality Asset Management Company (HAMAC), more than three-quarters of hoteliers now see human capital as the single biggest threat to long-term sustainability.

The report, based on a nationwide survey conducted by HAMAC in association with Tourism Update, finds that 77% of hoteliers are struggling to recruit and retain staff, while 58% say profitability has either stagnated or declined over the past five years, even as travel demand has returned.

“The findings confirm what many hoteliers experience daily: recovery on paper is not the same as recovery in practice,” says Anton Gillis, CEO of HAMAC.

The Federated Hospitality Association of Southern Africa (Fedhasa) said the survey findings broadly reflect what the association is seeing across the sector, particularly around staffing and skills challenges.