The latest Statistics South Africa Food & Beverage Survey (May 2026) paints a concerning picture for one of South Africa’s largest employers.

While many may view a decline of only 0.3% in real income as relatively insignificant, those operating restaurants, pubs, coffee shops and food service businesses know that these figures tell a very different story. A story restaurateurs have felt for many months – but is only now being reflected in the stats.  In real terms (constant 2019 prices), food and beverage income declined by 0.3% in May 2026 compared with May 2025.  Looking at the latest three-month period, food and beverage income fell by 0.2%, with restaurants and coffee shops declining by 1.7%, making them the largest contributor to the industry’s decline.

Seasonally adjusted figures tell a similar story, with income decreasing by 0.6% over the latest three months, once again driven primarily by restaurants and coffee shops.

These are not simply statistics.

They represent thousands of business owners who are working longer hours, carrying greater financial risk and employing millions of South Africans while trying simply to survive.

Turnover is Flat – Costs are Not

The greatest challenge facing the hospitality industry is that turnover has remained largely stagnant while operating costs continue to increase at unprecedented levels.

Every significant expense faced by restaurants has increased substantially over recent years, from electricity tariffs to food – to every single input cost.

For many hospitality businesses, these cost increases have far exceeded consumer inflation.  In practical terms, restaurants today generally require annual revenue growth of between 10% and 15% simply to maintain the same profitability.  Any increase below this often means the business is actually going backwards financially.

This is why a real decline of 0.3% is far more significant than it first appears.

Government Must Understand the Reality

The hospitality industry fully supports legislation that protects employees and customers.

However, new legislation must also be practical, affordable and proportionate.

Unfortunately, government departments often introduce new compliance requirements without fully appreciating the cumulative financial impact on businesses that already operate on extremely small profit margins.  Although aimed at improving workplace health and safety, these regulations introduce additional obligations.  Each of these requirements carries a cost.

For larger organisations these costs may be manageable.

For independent restaurants, cafés, pubs and family-owned food businesses already operating on margins often below 5%, every additional compliance requirement places further pressure on their viability.

No individual regulation may appear excessive in isolation.  The problem is the cumulative effect.

When combined with escalating municipal charges, increasing utility costs, higher food prices, rising wages and ongoing economic uncertainty, another layer of compliance can easily become the difference between remaining open and closing permanently.

One of South Africa’s Greatest Job Creators

The irony is that restaurants are among South Africa’s greatest creators of employment.  Few industries employ more people per square metre of trading space than the hospitality sector.  Importantly, our industry creates employment opportunities for people from every educational background.

Restaurants provide first jobs for school leavers, opportunities for individuals with limited formal education, practical workplace training, career development and entrepreneurial opportunities.  In a country where unemployment remains one of our greatest national challenges, this sector should be encouraged – not burdened.  Every restaurant that closes means job losses, suppliers lose customers, farmers lose markets, local economies lose spending.

The ripple effect extends far beyond a single business.

A Different Approach is Needed

FEDHASA believes there is a better way.

Government should actively work with the hospitality industry to create an environment where businesses can grow, invest and employ more South Africans.

This includes:

• Simplifying regulatory compliance for small and medium-sized hospitality businesses.
• Conducting meaningful economic impact assessments before introducing new regulations.
• Recognising hospitality as a strategic employment sector deserving of support.
• Ending the ongoing disruption to essential bulk services that is undermining business sustainability.
• Moderating above-inflation increases in rates and utility charges.
• Creating incentives for businesses that expand employment and skills development.

Hospitality is an Investment in South Africa

Restaurants are far more than places where people eat – they are community gathering places, tourism attractions, training grounds for future professionals and one of the country’s most accessible entry points into employment.

The latest Statistics South Africa figures should serve as a warning.

Our industry remains resilient, innovative and optimistic.

But resilience cannot replace profitability.

If South Africa genuinely wishes to reduce unemployment, stimulate tourism and grow local economies, then the restaurant and food service sector must be recognised as a strategic partner in economic development – not simply another industry upon which additional costs and regulatory obligations can be imposed.

Supporting hospitality businesses is not merely good for the industry.

It is good for employment.

It is good for tourism.

It is good for communities.

And ultimately, it is good for South Africa.

Behind that confidence is a sustained programme of industrial development, backed by public infrastructure investment, special economic zone incentives and private capital. The Richards Bay Industrial Development Zone has R252 billion in pipeline investment across 23 investors, according to the Department of Trade, Industry and Competition. Among the flagship developments is Nyanza Light Metals’ R15 billion titanium dioxide pigment plant. Construction is already under way and is expected to create around 3,000 jobs before employing up to 850 people permanently. Richards Bay is also positioning itself as an energy hub, with a liquefied natural gas import terminal, new power stations and supporting infrastructure representing almost R100 billion in additional investment.

Projects on this scale bring a steady stream of engineers, contractors, consultants, financiers and government officials into the city, some for a few days, others returning repeatedly as work progresses. According to André de Klerk, General Manager of BON Hotel Waterfront Richards Bay, this is translating into increasingly consistent business travel demand.

“We don’t have a high and low season like a typical leisure destination,” he says. “Our business follows industrial activity. Occupancy rises when a plant shuts down for maintenance, a delegation is in town, or a major project reaches a milestone. When that activity slows, so do we. Right now, we’re in one of our busier periods and we have been for some time.”

That level of demand has taken years to rebuild. Richards Bay’s hospitality sector was hit hard by the COVID-19 pandemic, and just as recovery began, the July 2021 unrest in KwaZulu-Natal dealt another blow. De Klerk says the hotel had to rebuild its room rates from a much lower base, with several years spent simply recovering lost ground before new investment started driving demand rather than just restoring it.

“There have already been weeks where you couldn’t find a room in this town because two or three projects needed people here at the same time,” he says. “That didn’t used to happen.”

De Klerk emphasised the hotel’s booking window reflects the same industrial rhythm. During busy periods, guests typically book around a week in advance. At quieter times, bookings are made just four days before arrival, tied to project schedules or maintenance shutdowns.

The mix of guests checking in is changing alongside the volume. “The executive flying up from Johannesburg for a two-day meeting is only part of the picture now,” De Klerk says. “We’re welcoming metallurgical engineers overseeing technology transfer, project finance teams from Johannesburg and Nairobi, government delegations, environmental consultants, construction managers and representatives from development finance institutions. Some are here for a few days. Others stay for the duration of a project, with contracts that can run for several months.”

The hotel’s guests arrive from Europe, Africa, Asia and North America, largely to support engineering, mining, logistics and infrastructure projects, while domestic business travellers provide a reliable year-round base. De Klerk says repeat business is the clearest sign of that consistency, with companies returning on standing accounts for maintenance work, site visits and ongoing projects.

BON Hotels Group CEO Guy Stehlik says Richards Bay stands out against the other secondary cities where the company operates, across South Africa and West Africa. “Corporate demand is rarely the issue in these secondary cities. The infrastructure around it usually is,” he says. “Failing infrastructure is the constraint we run into most often outside the metros. Richards Bay is the exception. Given the scale of investment going into the IDZ, it’s no surprise it works as well as it does. If anything, it’s the market the rest of these cities could  be measured against.”

BON Hotel Waterfront Richards Bay has refurbished its guest rooms, public areas, restaurant and conferencing facilities to keep pace with demand. Its largest venue seats around 120 delegates, with most bookings coming from technical workshops, project briefings and training sessions.

Much of the investment pipeline has yet to move from planning into delivery. Stehlik believes the opportunities will extend well beyond the industrial sector. “Richards Bay has always had the industrial base. What’s changing is the consistency of business travel around it. As more investment moves from planning into delivery, we’ll see more people travelling to the city, staying longer and returning more often. That creates the kind of demand that gives airlines, hotels and the wider visitor economy the confidence to invest.”

The invitation was extended by Gustav Pieterse, FEDHASA Inland Chairperson, which represents the hospitality sector across Gauteng, the Free State, North West, Mpumalanga, and Limpopo. It reflects FEDHASA’s ongoing commitment to ensuring that every segment of the hospitality industry, and every professional within it, has a seat at the table.

The South African Concierge Forum will be represented within FEDHASA Inland by Masood Sadulla, Golden Key Member and Chief Concierge and Guest Experience Manager at the Saxon Hotel, Villas & Spa, together with Deon Prinsloo and Kagisho Ditira, co-founders of D&D Concierge Consultancy.

“The concierge is often the first and last point of contact a guest has with a property, and in many ways, with South Africa itself,” said Pieterse. “Bringing concierge professionals formally into FEDHASA’s structures is a natural and necessary step. Their expertise in guest experience, their role in shaping perceptions of our destinations, and their contribution to service excellence make them an integral part of this industry. We are proud to welcome them.”

Founded in 1949, FEDHASA is South Africa’s recognised national trade association for the hospitality industry, representing hotels, guesthouses, restaurants, conference venues, and catering establishments under one banner. Recognised by government as the official voice of the sector, FEDHASA advocates on behalf of its members on legislative and policy matters, supports skills development and transformation, and works to create a favourable operating environment for businesses of all sizes.

D&D Concierge Consultancy, known for its bespoke concierge training, consulting, and industry development work, has played a significant role in elevating the standards and visibility of concierge services across South Africa. The consultancy works closely with hotels, luxury establishments, and concierge professionals to enhance guest experience and operational excellence – values that align closely with FEDHASA’s own.

“This invitation is not only an honour, but a meaningful step forward for the concierge community,” said Prinsloo. “Being recognised by FEDHASA affirms the vital role concierges play within the broader hospitality ecosystem, and we look forward to contributing to industry growth, strengthening standards, and ensuring a strong, unified voice for concierge professionals.”

For Ditira, the significance of the moment extends beyond the immediate milestone. “This recognition marks a defining moment for the concierge profession, giving us a long-overdue voice within South Africa’s hospitality landscape. We are ready to contribute and to grow alongside an organisation that has championed this industry for more than 75 years.”

The collaboration is expected to open new avenues for professional development, networking, and closer alignment between concierge professionals and the wider hospitality sector, reinforcing FEDHASA’s position as the home of every voice in South African hospitality.

South Africa’s hospitality sector is facing a deepening frontline staff crisis, one that operators say has been building since 2019 and can no longer be deferred. At its heart is a challenge as simple as it is difficult to solve: many of today’s hotel workers have never been a guest in the type of property where they work.

The intuitive service knowledge that previous generations brought to the job through lived experience – knowing what good feels like, what attentive looks like, what a properly set table communicates – can no longer be assumed. It has to be taught, from scratch, often in formats that standard training content does not reach.

It was one of several hard truths that senior operators from Accor, Radisson, Capital Hotels, Southern Sun, City Lodge, Minor Hotels, and the Saxon put on the table together at the inaugural Frontline Workforce Roundtable Series, held at the Saxon Hotel, Villas & Spa in Johannesburg on 13 May. The session was convened by hospitality learning and development company FUEL in partnership with FEDHASA Inland and addressed a conversation the industry had been avoiding for years.

“This is a forum that has been lacking from a FEDHASA perspective for years,” said Gustav Pieterse, General Manager of the Saxon Hotel and FEDHASA Inland Chairperson, who attended the session. “It is critical, not just for the federation, but for the industry as a whole.”

The workforce challenge

The roundtable identified several compounding pressures that operators say have been building since 2019.

The changed labour pool was among the most critical issues addressed. Beyond the experience gap, operators flagged that a matric certificate can no longer be assumed to indicate functional literacy, meaning standard training content is frequently pitched above the level the learner can absorb. The training happens. The knowledge does not land. Standards drift as a result.

Training and L&D budgets have absorbed a disproportionate share of industry cost cuts across the same period. The middle management layer lost during Covid-19 has not recovered, leaving remaining managers to carry functions that once belonged to multiple colleagues, significantly reducing the number of internal voices making the case for staff investment.

“The bar for ‘good enough’ has been moving,” Pieterse said. “Not because anyone decided that was acceptable, but because the day-to-day pressure to keep operations running made it easy to defer the harder work of developing people properly. The room was clear: that trajectory is not sustainable.”

What operators say is working

Operators shared solutions they reported as producing measurable results in their own properties.

Hiring through existing employee networks has proven one of the most reliable retention tools. When a staff member refers a candidate, they carry personal accountability for that person’s success, an effect one participant described as “a bit of indirect blackmail, but it works.”

Structured multi-year progression pathways – from Youth Employment Service (YES) placements through internship to permanent employment, with each stage visible to the staff member upfront – give people a reason to stay. Those who can see where they are going are far less likely to leave for a marginal pay increase elsewhere.

Cross-skilling across departments, widely adopted as a Covid necessity, has become a talent identification tool. Several operators described staff whose potential only became visible once they moved across the property. In one case, a learner who independently completed optional engineering content in her own time surfaced a career direction her manager had never identified.

The room also challenged generic onboarding, with operators increasingly building differentiated induction journeys for different entrant types rather than running all new hires through the same programme.

Perhaps the most counterintuitive finding: operators who invest in staff development and lose those staff to other properties reported better outcomes than those who withheld development. Alumni become ambassadors and many return. “Either way, the investment stays in the industry,” Pieterse said.

Culture as the strongest retention lever

Across every practice the roundtable discussed, a single thread emerged. The properties with the lowest turnover and strongest service were not necessarily those with the best programmes or the highest training budgets. They were the ones where staff genuinely believed someone in the building cared about them.

“If people believe you care about the things they are battling with at home, they are far more likely to care about the things you ask them to care about at work,” one participant said.

Culture of belonging – the felt sense that a person’s future is possible in this place – was named by multiple operators as the single most reliable retention lever available. Not a policy. Not a perk. A daily practice of genuine care.

“That is also the reason for optimism,” Pieterse said. “The most powerful tool available to this industry is not something that has to be bought or outsourced. It is something hospitality has always known how to provide.”

Download the discussion report HERE.

The Employment Services Amendment Bill was tabled in Parliament in May 2026. The Revised Draft Business Licensing Bill arrived even more quietly, uploaded to a government website with no gazette notice and no opportunity for public comment. Both Bills hand significant new powers to government ministers, and both could make running a hospitality business in South Africa considerably harder.

“For years, FEDHASA has been calling on government to reduce red tape and the burden of regulatory oversight placed on all levels of business,” said Brett Tungay, National Chairperson of FEDHASA. “This legislation is further bureaucracy on bureaucracy. It is not what industry is calling for.”

Employment Services Amendment Bill

This Bill gives the Minister of Employment and Labour the authority to set quotas on the number of foreign nationals a business can employ, broken down by sector, occupational category, or geographic area. Non-compliance carries penalties of up to R1 million or 10% of annual turnover.

Hotels, lodges, and restaurants across South Africa rely on a mix of local and international expertise, in kitchen management, front-of-house operations, conferencing, and tourism services. Quotas imposed without clear criteria or proper industry consultation would make it harder to fill specialist roles, slow down hiring, and add compliance costs that many businesses cannot absorb.

The Helen Suzman Foundation described an earlier version of the Bill as “unworkable and, in all likelihood, an unlawful interference in South African labour markets and in the lives of foreign nationals lawfully residing in South Africa and who have been granted the right to work here.” FEDHASA agrees.

The Bill is expected to be published for formal public comment in the coming months.

Revised Draft Business Licensing Bill

The bigger concern may be the Business Licensing Bill, and the way it was introduced. The Department of Small Business Development added a significant new clause to the Bill on its website in May 2026, without gazetting it, without the Government Printer, and without inviting public comment. Industry only found out because someone was watching closely.

That new clause – Clause 17 – would allow the Minister to declare certain business activities or entire industries off-limits to foreign-owned or foreign-controlled businesses. For hospitality, where international hotel brands, foreign franchise operators, and cross-border investors play a direct role in job creation and tourism growth, this is a real and immediate concern.

“We are a country in dire need of employment,” said Tungay. “Why can’t we have foreign nationals create that employment alongside local South Africans, rather than legislating them out of the picture?”

FEDHASA has made formal submissions on both Bills and will engage at every stage of the parliamentary process. The association is calling on the relevant departments to conduct full economic and constitutional impact assessments before either Bill proceeds further.

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Johannesburg – Travel buyers and travel managers are, once again, navigating interesting times. The Middle East crisis has meant new routes, new hubs and a renewed focus on duty of care. Volatile oil prices and capacity constraints are squeezing costs at the same time. Travellers themselves are warier than they were a year ago, and the journeys they are being asked to take are often longer, with more stopovers and less margin for error.

Against that backdrop, travel perks carry more weight than usual. A flat bed, a lounge shower and a late checkout matter more when you have just flown an extra five hours via a new connection.

What makes this moment especially interesting is the picture sitting just behind it.

Before tensions escalated in February, airlines were betting big on premium economy and business class cabins – overhauling their fleets and offering passengers more space, connectivity, state-of-the-art inflight entertainment and, in some cases, hotel-like privacy. Hotels themselves are pouring investment into luxury and lifestyle properties, with the global luxury hotel market forecast by Skift to more than double to $369 billion by 2032.

All while travel programmes are balancing safety and traveller wellbeing against value and cost management. Competing priorities, all playing out in the small print of what your company will and won’t cover.

The airline perks you might not know about

Status used to mean miles flown. Today, it increasingly means money spent. As The Points Guy puts it, the “hamster wheel” of chasing flights is being replaced by credit card spend, shopping and bookings through an airline’s network of partners (including car rentals) rather than simply bums in seats. 

The perks are varied too – many unseen and underused. Most major programmes now let you extend priority boarding to companions, share lounge access with a plus-one, and occasionally use complimentary upgrades on partner airlines. Lounge access through the right credit card sits in the same category: a perk most eligible travellers underuse.

The biggest unseen perk, though, is corporate. As Herman Heunes, GM of Corporate Traveller South Africa explains, two passengers in the same business class cabin may have paid wildly different fares, depending on how the corporate fares were negotiated behind the scenes.

“Corporate contracts often come with soft ‘perks’ the retail flyer rarely sees,” says Heunes. “Including guaranteed availability, waived change fees, volume rebates, and sometimes even chauffeur transfers on carriers like Emirates and Qatar Airways. This is exactly where a managed travel programme adds value beyond rate.”

What business class actually gets you

The world’s top airlines are getting very serious about their business class offering. Qatar’s QSuite offers sliding doors, “Do Not Disturb” indicators and customisable ambient lighting – not to mention a turndown service complete with pillows, a quilted mattress, plush blanket and PJs. Cathay Pacific’s Aria Suite (winner of the World’s Best Business Class in the 2026 AirlineRatings Awards) has privacy pods, plenty of cubby storage, a 24-inch, 4K in-flight entertainment screen, free Wi-Fi and a 5-star, restaurant-style dining experience.

For Heunes though, business class is often misunderstood.

“While lie-flat seats are great, what corporate buyers are really paying for is productive time: the space to work on a laptop, sleep on an overnight flight, and arrive functional,” says Heunes. “For staff travelling on the long-haul routes that South Africans know so well, rest, productivity and morale means business class pays for itself before the seatbelt sign goes off.”

Hotel perks worth knowing

Hotels are arguably winning the perks race – with many designed around health and wellbeing.

The Wall Street Hotel in New York, for example, has partnered with the ness, a trampoline-based movement studio, to bring intentional, low-impact wellness directly to your room (complete with trampoline and sessions streamed on your in-room smart television). Shangri-La Singapore’s Horizon Club Business Rooms come with adjustable standing desks, dual 4K monitors on request, and complimentary pressing of business clothes. IHG (InterContinental Hotels Group) has implemented acoustic doors and heavy soundproofing, while Hyatt’s premium properties supply white noise machines.

Quieter perks are worth knowing about too. Pillow menus, once an outlandish luxury, are now pretty mainstream at upper-tier establishments. The Benjamin Royal Sonesta has a 10-choice pillow menu, and guests can choose from anti-snore, buckwheat, cooling pillows, and Swedish memory foam tailored to their sleep positions.

More mainstream? Most hotels are happy to offer all sorts of things if you only know to ask: chargers, adaptors, sewing kits, toothbrushes and toothpaste, yoga mats, boardgames and even weighted blankets, sleep masks and slippers. Kimpton Vero Beach Hotel in Florida, USA, even runs a “Forgot it? We’ve got it!” programme, letting guests borrow accessories like sunglasses and handbags.

Again, for Heunes, it’s the more practical perks that make the difference.

“Early check-in and late check-out are huge for long-haul travellers,” says Heunes. “Flights out of South Africa often seem to land at unfriendly times. Always check with your travel management company what’s possible, and what can be negotiated. Some hotels also provide a complimentary shuttle service, which is a big perk in anyone’s language!”

What your company will and won’t pay for

Luxury hotels’ concierge services are well-versed in special – often eccentric – requests (including Evian baths, egg-free omelettes and VIP access to shows and events) but, in truth, when it comes to business travel things are far more boring.

As Heunes notes, internal scrutiny of spend has increased and buyers are expected to show financial control while supporting productivity, safety and traveller wellbeing.

Depending on the size of your company (and travel programme) the budget could expand to premium economy or business class on flights over six hours, full board, hotel Wi-Fi, laundry, reasonable tips, and increasingly, properties that support hybrid work with ergonomic desks and good connectivity.

What companies almost universally will not pay for is the minibar, in-room movies, spa treatments outside an approved wellness stipend, seat upgrades without pre-approval, alcohol outside client entertainment, traffic fines, anything for a travelling partner, and direct bookings outside the managed channel.

Which could leave modern business travellers in a slightly awkward position: flown upfront to Heathrow, ergonomically supported at the hotel, and quietly paying for their own packet of cashews from the minibar. “This is where travel policies are so important,” says Heunes. “Even companies with small travel programmes need to agree on perks and spend – and how reimbursements are managed. It is a core part of any travel programme.”

Johannesburg – Business travel is holding its own, even as global conditions shift. New data from FCM Consulting’s inaugural hotel-focused research report shows that while the routine internal meetings that once generated high volumes of corporate trips have given way to more purposeful travel, demand into key markets, including London, Dubai and Johannesburg itself, remains strong.

FCM Consulting’s Insights Report 2026, released ahead of the global corporate hotel RFP season, reveals that hotel occupancy in major business hubs averaged 73.7% globally in 2025, up 1.3 percentage points on the prior year.

Key corporate cities tell a similar story: London held at 81.2%, a top destination for South African corporate travellers, while Sydney reached 81.5% occupancy (up 4.0 points), Singapore hit 79.2% (up 2.0), and Tokyo led the Asia-Pacific region at 82.9%.

Closer to home, Africa has seen the steepest price change globally, with a rolling 12-month average room rate (ARR) decline of 19.8% by late 2025. Bucking this trend? Johannesburg and Cairo with an ARR up 23.6% and 12% respectively in Q4 of 2025.

On the opposite end of the scale, cities where prices eased include Ghana (-42.2%), Ethiopia (-31.1%) and Kenya (-22.2%).

FCM Consulting reports that while corporate demand remains stable across the continent, it remains highly price-sensitive, with businesses shifting from premium tiers to 3- and 4-star properties, where monthly rates fell by up to 23%.

“Average daily rates can differ widely,” says Mummy Mafojane, GM of FCM South Africa. “As an example, Johannesburg, Cape Town, Nairobi, Cairo and Rabat were all up on 2024 rates – while Windhoek, Gaborone, Lagos and Luanda were all down year-on-year. South Africa was boosted by the G20, while North Africa (notably Egypt and Morocco) is seeing robust leisure tourism growth.”

For Mafojane, it requires targeted, proactive management as buyers head into RFP season.

“Where rates are softening, buyers have a genuine opportunity to consolidate volume and push for preferential corporate rates. Where rates are climbing, the focus has to shift to compliance and getting travellers to book further ahead, because that’s what protects the budget.”

Importantly, the global data reflects a fundamental change in how and why organisations travel. The report, authored by FCM Consulting’s global team of hotel programme specialists, finds that hybrid working has not killed business travel, it has made it more intentional, with teams coming together for client work, revenue conversations, project assignments and physical presence events.

• 77% of organisations say face-to-face meetings are essential to business objectives
• 73.7% global hotel occupancy in 2025 – up 1.3pts year-on-year
• 81.2% hotel occupancy in London, near multi-year highs
• 81.5% hotel occupancy in Sydney, up four points in a single year.

“Travel is now more focused on bringing people together with purpose, whether for client work, revenue generation, or internal alignment,” said Rachel Newns, Global Hotel Practice Lead, FCM Consulting. “The organisations recognising this are approaching the RFP season very differently from those still measuring success by reducing trip volumes.”

The research draws on data from managed travel programmes across the Americas, EMEA and Asia-Pacific, combining proprietary booking data with regional market analysis.

It finds travel patterns are diverging sharply by traveller type: sales teams prioritise location and consistency; project teams are making longer stays in fewer cities; and senior leaders expect a combination of reliability and discretion that legacy hotel programmes often fail to deliver.

“Hotel programmes tend to evolve gradually,” said Newns. “Suppliers change, targets move, policies are amended, yet the overall programme design can remain largely unchanged. Taking time to revisit its foundations often reveals where adjustments are needed.”

FCM Consulting’s data shows that contracted and consortia rates continue to deliver significant savings against the best available rate, with public rates fluctuating by up to USD$62 globally.

Fixed negotiated rates in high-demand markets provide meaningful protection – but only when programmes are actively managed, and travel patterns are understood at the city level rather than at the regional aggregate level.

The report also highlights a frequently underutilised lever in hotel programme management: corporate loyalty. Major hotel groups have continued to expand their loyalty ecosystems, and travellers holding status with preferred brands represent both a compliance risk and a genuine opportunity for buyers who manage it well.

Complimentary breakfast, lounge access and room upgrades can meaningfully improve the traveller experience at no incremental cost to the corporate account. The challenge is integrating loyalty strategically into programme design – and having frank, early conversations with suppliers about recognition and status support during transition planning. “Ultimately, internal scrutiny of spend has increased,” explains Mafojane. “In today’s climate, buyers are expected to show financial control, while ensuring hotel programmes support productivity, safety and traveller well-being.”

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JOHANNESBURG, SOUTH AFRICA – Following February’s Middle East airspace crisis, South African corporates with the right travel programme infrastructure have a narrow window to lock in favourable long-term hotel rates if they act now.

While the sudden airspace closures across the UAE, Qatar, and Jordan sent hotel occupancy in hubs like Dubai and Doha plummeting, the aftermath has created a counter-intuitive reality. According to FCM Consulting’s Insights Report 2026 published this month, average daily rates in the Middle East have softened significantly, creating a rare procurement window for South African corporates to lock in long-term deals before a projected 4% rate recovery kicks in.

However, the report reveals that only companies with robust, actively managed travel programmes are in a position to exploit this drop.

“We are seeing a clear divide in how South African businesses are reacting,” says Mummy Mafojane, General Manager of FCM South Africa. “Companies relying on unmanaged travel or outdated hotel lists are still spooked because they couldn’t locate their people during the February chaos. Meanwhile, companies with proper duty-of-care infrastructure are stepping in right now to negotiate highly favourable hotel terms while prices are down.”

When disruption hits, infrastructure is everything

For South African companies with staff travelling to the region, the questions during the airspace closures arrived immediately: where are our people? Can we reach them? What are our contractual positions with the hotels they’ve booked?

The answer depended almost entirely on one factor: whether the organisation had an  actively managed travel programme built with disruption in mind.

“A hotel programme that simply lists preferred properties is not a risk management tool,” Mafojane notes. “Duty of care means knowing where your people are, having the relationships to move them quickly, and building flexibility into your programme before you need it – not after the crisis has already started.”

Companies that navigated the February disruption most effectively shared a common set of characteristics. Their travel management company (TMC) had real-time visibility of traveller locations and bookings. To maintain this level of control, FCM Consulting’s report sets out a practical framework for travel programmes operating in complex and volatile regions. This includes flexible rate agreements that protect against sudden cancellations, hotel safety standards calibrated to location risk and developed in consultation with corporate security teams, regular reviews of regional conditions, and a TMC relationship that provides genuine crisis coordination, not just booking administration.

South African companies relying on direct bookings, unmanaged travel, or outdated preferred hotel lists had none of these protections. In an environment where booking lead times in the Middle East had already compressed significantly as risk awareness grew, the absence of programme visibility was a significant duty-of-care failure.

The broader procurement opportunity

The broader message from the analysis is not that South African companies should retreat from the Middle East. Commercial momentum in the region remains significant, supported by:

• 177,281 hotel rooms currently in Saudi Arabia’s inventory, with nearly 50,000 more under construction.
• USD$234 Middle East average room rate for 2025 (up $27 year-on-year).
• A projected 4%+ Average Daily Rate (ADR) recovery in the region once stability returns.

For SA buyers with the programme infrastructure to act, the current interim softening in rates represents a genuine opportunity to lock in favourable long-term agreements, securing enhanced terms before rates climb again on the back of the region’s structural growth.

“The companies navigating this most effectively are not the ones that stopped travelling. They are the ones who invested in the right programme infrastructure before the crisis and are now positioned to move quickly as conditions normalise,” said Mafojane.

The Middle East disruption is the most acute example in the report of a theme that runs through FCM Consulting’s entire 2026 analysis: the growing importance of programme agility in an unpredictable operating environment. “Strong demand does not always mean stable conditions,” the report notes. “Programmes must account for disruption as well as growth.”

Research from the EHL Group’s Food and Well-being Trend Report 2025 shows that between 60% and 70% of consumers now expect food-service operators to offer meals that are both healthy and sustainably sourced.Yet, according to Africa Travel Week’s 2026 State of African Tourism Report, only 4.3% of Southern and East African properties currently hold third-party sustainability certification. The gap between market expectation and industry delivery is wide, and closing it requires access to the right suppliers, frameworks, knowledge, and conversations.

 “Our role is to create the conditions in which our members can thrive. Sustainable food, beverage, and wellness are dramatically influencing guest choices, buyer decisions, and investment criteria right now. Our partnership with The Good Life Show Africa is just one of the ways we’re ensuring FEDHASA members have access to the platforms and partnerships they need to move forward with confidence,” said Lee-Anne Singer, FEDHASA Cape Chair.

The urgency is underscored by the EU’s Directive on Empowering Consumers for the Green Transition (Directive 2024/825), which becomes binding across European member states from 27 September 2026. European buyers will be required to substantiate every sustainability claim made about the destinations and properties they sell, meaning South African hospitality businesses without verified sustainability credentials risk losing access to one of their most valuable source markets.

Among FEDHASA’s membership, operators are already demonstrating what is possible when sustainability is treated as an operational commitment rather than a communications exercise. Caron van Rooyen, General Manager of Hotel Verde, Africa’s first hotel to achieve Net Zero Waste certification from the Green Building Council of South Africa, speaks directly to the commercial case:

“There is a persistent assumption that sustainable food costs more and squeezes margins. Our experience tells a different story. Sustainability forces operational discipline. When done properly, it results in a more efficient kitchen rather than a more expensive one.”

Van Rooyen’s broader call to the industry is equally direct: “The industry needs to move from viewing sustainability as a marketing initiative to treating it as an operational standard. The operators who succeed will be those who integrate sustainability into the core of their business model rather than treating it as a separate strategy.”

It is a shift FEDHASA is committed to supporting across its full membership through advocacy, knowledge sharing, and strategic partnerships – such as with The Good Life Show Africa – that connect operators with everything they need to make sustainable practices measurable, verifiable, and commercially viable. 

As the only event of its kind on the continent, The Good Life Show Africa gives hospitality operators direct access to Africa’s most innovative producers – across food and beverage, wellness, eco-luxury personal care, and hotel amenities – through live culinary demonstrations, masterclasses, and a curated marketplace where products can be experienced firsthand.

“The show serves as a vital platform for businesses in the booming sustainability market, connecting them with influential buyers, investors, and conscious consumers,” said Heidi Warricker, Chief Events Officer at Live Events, organiser of the Good Life Show Africa. “Visitors have the opportunity to see first-hand how Africa’s producers are revolutionising the better-living space, and to taste, touch, smell, see, and take home all of this innovation.”

The 2026 edition has significantly expanded its trade infrastructure. Live Events has partnered with Ndarama Works, a Pan-African economic advisory consultancy, to facilitate market entry and export growth through targeted trade matchmaking and a hosted buyer programme drawing participants from across Africa, Europe, the Americas, and beyond. Operators attending the show can register to participate in curated matchmaking, connecting directly with buyers aligned to their product offering.

The exclusive 15% attendance discount for FEDHASA members is available on registration. Full details are available at www.goodlifeshowafrica.com.

I sat on a panel at WTM Africa this week titled “Skills 2030: The Tourism Jobs That Don’t Exist Yet But Should.” It is a provocative title and it sparked a conversation I want to be honest about, because I don’t think we say it loudly enough in this industry. We are not ready.

South Africa’s tourism sector contributes nine percent to GDP. Two million jobs directly and indirectly. Eleven million arrivals in 2025. Seventy five percent of those from the African continent itself. By any measure this is a sector of enormous consequence to this country. Yet when I look at how we are preparing our people for the next four years I find myself genuinely concerned.

Three weeks ago I was at ITB in Berlin. I stayed at a full service, deluxe, 220 bedroom Courtyard by Marriott in the heart of the city. I asked how many permanent staff they employed. Eleven. Eleven permanent people running that entire property. They outsource maintenance. They outsource aspects of housekeeping. They have had absolutely no choice but to completely reimagine what a hotel operation looks like because Europe is in the grip of an acute staffing shortage that forces their hand every single day.

Now come back to South Africa. We have a steady labour supply. Relatively low minimum wages. A hospitality industry that frankly remains pretty poor paying in proportion to other sectors. Because of all of that we have not been forced to adapt the way our European counterparts have been forced to adapt. We have been comfortable. That comfort is building a skills crisis beneath the surface that is going to catch a lot of us off guard.

Our hotel schools, learnerships and many accredited institutions are doing what they have done for the last twenty years. Producing a steady supply of waiters, receptionists and barmen. I am not dismissing those roles. For 2030 we need something different though. We need people who are hybrid, technical and human simultaneously. People with soft skills, genuine commercial understanding and leadership capability. As an industry we are guilty. Guilty of not adopting, not training and not investing nearly enough in the futures of the young people coming through our ranks.

So what does 2030 actually look like in terms of the roles we need to prepare for in hospitality?

I don’t believe every hotel needs a permanent AI specialist sitting on their payroll. What I do believe is that AI consultancies are going to do very well indeed contracting with hotels, independents and BnBs, coming in and conducting proper AI audits. Taking honest stock of where a business actually is versus where it thinks it is. Most of us would be quite frightened by what that audit reveals.

The second role I think is coming whether we are ready for it or not is the sustainability manager at hotel level, or at least on a nodal level. The EU compliance requirements are already knocking on the door of any operator who wants the big European tour operators sending business their way. Dedicated sustainability roles embedded in our properties are coming. People working across community engagement, water and electricity management, feeding back into the grid, bridging the gap between the business and the environment it operates in. That is a real job and a critically important job. Right now we are training nobody for it.

Here is the thing I feel most strongly about though. We have created a generation of office jockey General Managers. Our GMs are drowning in data that needs to be engineered, analysed, compiled and sent upward through layers of corporate reporting. It is keeping brilliant, passionate, hospitality-born people trapped behind desks when they should be out on the floor.

“Management by Walking Around”, which should be the most fundamental instinct of any hotelier, has been slowly strangled by administrative burden that technology should already be handling for us. By 2030 there will be no excuse. The data engineering, the reporting, the analysis is by and large automated. When that happens our General Managers get to go back to doing what they came into this industry to do.

That is what 2030 looks like to me. Not robots replacing people. A General Manager back in the lobby where they belong.

Guy Stehlik is the Founder and CEO of BON Hotels and spoke on the panel “Skills 2030: The Tourism Jobs That Don’t Exist Yet But Should” at the WTM Africa 2026 Future Stage in Cape Town.