On Friday, 30 October 2026, Minister Dean Macpherson and KwaZulu-Natal MEC for Public Works and Infrastructure Martin Meyer formally handed over leases of nine years and eleven months to the affected operators, bringing to an end a period of prolonged uncertainty that had resulted in business closures, job losses, and vandalised premises. The impact extended beyond individual operators, as deteriorating facilities and closures reduced the appeal of the surrounding destination.

FEDHASA escalated the matter to provincial and national Public Works authorities, engaging persistently on behalf of the affected operators until a resolution was reached. At the handover ceremony, Minister Macpherson specifically acknowledged the contribution of FEDHASA KZN and Eastern Cape Vice-Chair Mandy Massey, recognising her sustained efforts in keeping the matter before decisionmakers.

“Some of these operators watched businesses they had spent years building begin to crumble. They couldn’t plan or invest. They couldn’t even reassure their staff. A lease is the foundation on which a business invests, employs, and grows, and for five years, they were stripped of that foundation. This outcome demonstrates exactly why FEDHASA exists. Advocacy works – and this is proof of that.”

Looking Ahead

With secure tenure now in place, the affected businesses are positioned to access finance, refurbish their premises, and make long-term commitments to their employees. FEDHASA anticipates that the broader South Coast tourism economy will benefit as operators reinvest in their properties and visitor offerings improve.

FEDHASA has commended Minister Macpherson, MEC Meyer, and their teams for their responsiveness and for delivering a tangible outcome for the businesses and employees affected.

Published in Government Gazette No. 55542 on 16 October 2026, the extension is scheduled to take effect on 26 October 2026.

FEDHASA is calling on affected restaurant owners and hospitality employers to participate in the legal application and contribute towards the associated legal costs.

“FEDHASA understands the importance of fair employment practices and the role of collective bargaining in the hospitality sector. Our concern is not with the agreement itself, but with ensuring that the process by which it is extended to non-parties meets the legal requirements that exist to protect all affected parties, including employers who were not part of the original negotiations. We believe these questions deserve proper consideration by the courts,” said Brett Tungay, FEDHASA National Chairperson.

Implications for restaurant operators

The agreement introduces a range of employment-related obligations for affected businesses, including:

• Prescribed minimum wages, ranging from the national minimum wage of R30.23 per hour to R57.23 per hour for certain categories, including chefs and managers.
• Employer contributions of 5% towards the Council’s Provident Fund, in addition to the employee contribution.
• Contributions towards a funeral scheme.
• A uniform cleaning allowance of R17.50 per week.
• A minimum annual bonus equivalent to two weeks’ salary.
• Council levies of R16 per employee per month, shared between employer and employee, and a R25 monthly levy per establishment payable by the employer.

The association recognises that the restaurant industry encompasses a wide range of businesses, from large groups and independent restaurants to family-owned establishments, small cafés and tourism-dependent operators. Regulatory requirements can have meaningfully different consequences for businesses with different resources, turnover and staffing structures, and this diversity warrants careful consideration. FEDHASA encourages members to seek appropriate advice regarding their individual circumstances.

Legal process and next steps

FEDHASA has previously engaged with a similar matter, with the Labour Court granting an interdict on 2 March 2021. The association is now coordinating a fresh urgent legal application in respect of the current extension.

The outcome will be determined by the Labour Court, and FEDHASA will pursue the matter through the appropriate legal channels. The association is committed to engaging constructively with all relevant stakeholders throughout this process.

“FEDHASA has a responsibility to its members and to the broader hospitality sector to ensure that questions of this nature receive proper legal consideration. We are not seeking confrontation – we are seeking clarity. Where legitimate concerns exist about whether legal requirements have been met, it is appropriate to ask the courts to make that determination,” said Tungay.

Industry participation

Given the short period before the extension is due to take effect, FEDHASA is asking affected restaurant owners and hospitality employers to consider joining the proposed interdict application.

FEDHASA is also asking members and affected businesses to consider contributing towards the legal costs of the application. Broad participation will be important in enabling the industry to pursue an effective legal challenge within the available timeframe. Details of the appointed attorneys, participation requirements and cost arrangements will be provided directly to interested businesses.

Businesses wishing to participate should complete FEDHASA’s online form by no later than 17:00 on Tuesday, 20 October 2026.

“We recognise that this is a significant ask at short notice, and we are grateful to the members and businesses who are willing to engage with this process. The hospitality industry has shown resilience and solidarity in the face of many challenges. We hope that spirit will carry through here as well,” said Tungay.

FEDHASA will continue to engage with relevant stakeholders and keep members informed of developments as the legal process proceeds.

“These are young South Africans who have chosen hospitality as their career, honed their craft, and earned the right to compete on a world stage. For FEDHASA, backing them is a powerful statement about the kind of industry we are building – one that invests in its youth and celebrates the culinary arts as a desirable and prestigious career. We would love the support of our industry in this effort,” said FEDHASA Inland Chairperson Gustav Pieterse.

The BackaBuddy crowdfunding campaign, initiated by the SA Chefs Association, has set a target of R1.5 million. The campaign is built on the strength of many contributions, not the size of any single donation.

• 500 people giving R100 = R50,000
• 1,000 people giving R100 = R100,000
• 5,000 people giving R100 = R500,000

Contributions of R50, R100, or R200 make a real difference, and for those unable to donate, sharing the campaign is equally valuable.

The nine-strong team of young chefs comes from across South Africa, from Soweto and Rustenburg to Richards Bay, Durban, and the Western Cape. They trained at some of the country’s finest culinary schools and work in some of its most acclaimed kitchens, among them the Saxon Hotel, Villas and Spa, Four Seasons Hotel The Westcliff, and Marriott Hotel Melrose Arch. They are guided by Chef Donaldson Madubela (Technical Head Coach), Chef Marcus Gericke and Chef Catherine Adonis (Technical Coaches), Pieter Malan (Team Manager), Chef Mahlomola Thamae (Head of Talent), Chef Zana Alvarado and Chef Ras Van Gruene (Deputy Team Managers) and Chef Warren Franz (Team Logistics).

Every member of the team carries a deeply personal food story rooted in South African heritage and family. Seswaa and bogobe. Ujeqe with beef stew. A Sunday seven colours. Kalya spiced with saffron and prunes. Pap and pork trotters. Lamb biryani cooked over the fire. These are the dishes and the culinary traditions that have shaped this team, and that they will carry with them to Luxembourg.

For each and every one of them, the opportunity extends beyond competition.

“I am not only going to Luxembourg as Unami Binda the chef; I am going as a young South African woman carrying the flavours and experiences that shaped me,” said Chef Unami Binda, who works at Four Seasons Hotel The Westcliff.

Chef Phenyo Pooe from 54 on Bath, echoed that sentiment: “It’s about showcasing South African cuisine with modern techniques, honouring the past while proving our food deserves to be celebrated and shared with the world.”

Deputy Team Manager Chef Zana Alvarado captured the team’s collective ambition most simply:

“We are not just taking Team Masakhane to Luxembourg. We are taking a piece of South Africa to the world.”

To donate: https://www.backabuddy.co.za/campaign/take-team-masakhane-to-luxembourg
Campaign hashtag: #BackTeamMasakhane

For tailor-made donation discussions or partnership enquiries, contact:
Nwabisa Makumule
Partner Relations Manager, SA Chefs Association
📞 078 272 6909
📧 partners@sachefs.co.za

I recently had the privilege of joining a group of hospitality leaders for a candid discussion about the future of our industry, hosted between FUEL Online and FEDHASA, as well as various other industry engagements that I have attended over the past few weeks, and I wanted to share some observations.

Around the table in these conversations were operators, executives, academic doctors and professors and industry professionals who collectively represent thousands of employees, students and millions of guest interactions every year. While our businesses may differ, one theme emerged consistently throughout the conversation:

The future of hospitality will not be defined by technology, buildings or brands. It will be defined by people.

That may sound obvious in an industry built on service, yet many of the challenges currently facing hospitality stem from exactly that reality.

Across the country, employers are navigating a changing workforce landscape. Experienced employees are retiring, leaving the industry or pursuing opportunities elsewhere. New talent is entering our businesses full of potential, but often without the benefit of the mentorship and operational exposure that previous generations received.

At the same time, guest expectations continue to rise.

Guests today expect seamless technology, personalised service, immediate responses and memorable experiences. They want efficiency, but they also want genuine human connection.

The challenge for hospitality leaders is therefore not simply finding people.

It is developing people.

And that is where I believe some of our biggest opportunities lie.

South Africa Does Not Have a Talent Shortage

One of the most important takeaways from our discussion was that South Africa is not lacking talent.

What we often lack are the pathways that connect talent to opportunity.

As an industry, we frequently talk about skills shortages while operating in a country where millions of young people are actively seeking employment and career opportunities. The question we need to ask ourselves is whether we are doing enough collectively to bridge that gap.

• How do we expose young people to hospitality careers?
• How do we create meaningful workplace experiences?
• How do we ensure that education and industry remain aligned?
• How do we make career progression visible from the day somebody enters our industry?

These are not questions for individual businesses alone. They are questions for all of us as industry stakeholders.

Hospitality Must Become a Career of Choice

Hospitality offers something incredibly unique.

Few industries provide the same combination of human interaction, leadership development, entrepreneurship, international mobility and personal growth.

Yet many young people still see hospitality as a temporary job rather than a long-term career.

Changing that perception may be one of the most important responsibilities we have as industry leaders.

We need to celebrate the success stories more often.

We need to highlight the people who started as waiters, receptionists, porters, stewards and trainees and went on to become leaders and business owners.

I know this journey personally.

Having started my own career as an intern, I have seen first-hand what this industry can do when people are given opportunity, mentorship and support.

Hospitality changes lives.

We should never underestimate the impact our industry has on individuals, families and communities.

The Role of Technology in a People Business

No discussion about the future workforce is complete without talking about technology and artificial intelligence.

For some, AI creates uncertainty.

For me, it creates opportunity.

The reality is that hospitality has always evolved alongside technology. From reservation systems and online bookings to mobile check-in and guest apps, technology has consistently enhanced the way we operate.

Artificial intelligence is no different.

The future is not about replacing people with technology.

It is about empowering people with technology.

AI can assist with training, communication, knowledge sharing, translation, operational support and administrative tasks. It can help our people access information faster and perform their jobs more effectively.

But it cannot replicate genuine hospitality.

It cannot replace empathy or emotional intelligence.

And it certainly cannot replace the feeling a guest gets when they are welcomed by someone who truly cares.

The most successful businesses of the future will combine technology and human connection, not choose one over the other.

Rethinking Workforce Development

Another strong theme from our discussion was the need to evolve how we approach learning and development.

Traditional training methods still have a place, but the future requires more flexible, accessible and scalable solutions.

Learning needs to happen continuously.

It needs to happen on the floor, in real time and in ways that meet employees where they are.

Fortunately, we now have access to tools and platforms that can support learning in multiple languages, provide ongoing development opportunities and create more inclusive pathways into the industry.

The opportunity is not simply to train more people.

It is to train people better.

Our Greatest Opportunity

Despite the challenges discussed around skills development, labour mobility and workforce retention, the overall tone of the conversation was remarkably positive.

Why?

Because South Africa possesses something incredibly valuable.

• We have passionate people.
• We have a globally admired tourism offering.
• We have resilient businesses.
• And we have an industry that genuinely wants to create opportunity.

Rather than lamenting what has been lost, the task ahead is to invest in what can still be built.

If we can strengthen the pathways between education and employment, embrace technology responsibly, develop future leaders and continue investing in our people, I believe South Africa can build one of the most capable hospitality workforces anywhere in the world.

After all, hospitality has never been about buildings.

It has never been about systems.

It has always been about people.

And if we get that right, the future of our industry remains exceptionally bright.

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.

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.

Table of Contents

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.