THE ROLE OF THE ACCOMMODATION SECTOR, AND, BED AND

The hospitality sector of the tourism industry is the biggest operational component of the industry in South Africa and consists of accommodation, food service and gaming (Lubbe, 2003: 114; and Rogerson, 2005: 3) and according to Keyser (2002:178-179) and Statistics South Africa (2009: 30-34) refers to the central sector of the tourism industry that provides accommodation and catering to the tourist. These two functions may co-exist in one independent operation or may exist in two separate enterprises.

Accommodation is seen to contribute up to just over one-fifth of spending of an average tourist in South Africa with food and beverage making a 1.8 percent gross value contribution, indicates Statistics South Africa (2009: 41), towards the tourist expenditure of a destination. Accommodation is a critical component of the tourism product since the type, nature and scale of accommodation available at the destination generally determine the type and scale of tourism possible at a destination (Bennett, 2000: 50). The nature of accommodation supplied is a function of demand mostly, namely, tourists determine what type of accommodation will be found at a destination. In Europe the accommodation sector is dominated by SMMTEs. Compared with other tourism sub sectors, the concentration of the sub sector is less explicit; major hotel operators own only 10 percent of the total number of rooms, but their share is increasing through direct ownership, franchising, leasing, joint businesses and management contracts. There are clear trends for dominance by larger companies who seek to take advantage of the international opportunities offered by globalisation and the EU (Europe Direct, 2003: 25).

Accommodation, writes Bennett (2000: 50) is not homogenous and ranges in Southern Africa from thatched roofed rondavels and caravan parks to ultra luxurious hotel accommodation. Accommodation can be classified into 3 broad categories: those in the serviced sector, self- catering accommodation, and a combination of the two. Bennett (2000: 50) provides a further classification of the accommodation sector into 4 categories: serviced and self-catering accommodation; homes of friends and relatives and other accommodation.

Grading of accommodation has traditionally been only of hotels in South Africa and all hotels were by law compelled to register as hotels. Other accommodation types were not subjected to any grading or classification. This was changed with the promulgation of the Tourism Act of 1993 that provides for a voluntary grading and classification of all types of accommodation. The current classification schemes make provision for grading based on physical features, services offered and service levels. The accommodation product is diverse and product experiences are complex. It involves physical elements (food and drink), sensual benefits experienced (sight, smell, sound, touch, taste) and psychological benefits experienced, such as states of well- being, status and satisfaction. The accommodation offering exhibits a number of unique characteristics, making it extremely difficult to manage and market. Amongst these are: location, permanence of premises, cost structure, peaks and troughs in demand, contact dependence (Bennett, 2000: 51-54).

Hotels, writes WTTC (2002: 17) remain the most popular form of accommodation in South Africa, used by 63 percent of international air tourists to South Africa in 2000. The home of friends and relatives is the second most popular, with 31 per cent share, game lodges with 23 percent and bed and breakfasts, guest houses and self-catering with 18, 17 and 14 percent respectively.

The Internet and computerised central reservations systems (CRS) have had an enormous impact on the tourism industry, in general, and on the accommodation sector in particular (Mill & Morrison, 1992: 274). Globally, there is a tendency to form larger groupings of hotels. Larger hotel chains share central reservations and marketing systems, centralise their purchasing and are positioned to compete more effectively. Tourists are looking for greater freedom, more adventure and hence a desire for informality (no regulated arrival and departure times etc.).

Tourists are becoming more discerning and demanding when it comes to accommodation. They do not see accommodation as merely a room to sleep in but as a total experience consisting of wide range of services and emotional experiences that together make up the holiday or business stay (Bennett, 2000: 55). The main trends in the accommodation sector are identified by Keyser (2002: 186-188) as the increasing use of technology, differentiation through branding and positioning, and, emphasising environmental concerns.

Bed and breakfast accommodation (B&Bs), according to Lubbe (2003: 119), Nuntsu, Tassiopoulos and Haydam (2004: 515-7), is growing in popularity in South Africa, especially with more budget conscious tourists. These establishments are basically smaller accommodation businesses that do not exceed 20 to 30 rooms. Their growing popularity has seen the major hotels chains enter this market segment for limited service accommodation. There are many privately owned accommodation establishments in private homes that are of a high quality. The level of service varies from establishment to establishment and is dependent on the room rate charged. In the 1980’s there were considered to be no B&B establishments in South Africa and in the early 1990’s there were only a few. In the last 10 years there has been a significant growth of B&Bs. Although there is still a noticeable B&B growth rate, the level of growth is levelling off with only more serious operators now entering the market (WTTC, 2002: 19-20).

The WTTC (2002: 19) underscores that there are no compulsory registration of tourism accommodation facilities in South Africa and that the actual number of accommodation establishments is not known. It is estimated that there are just over 11 000 establishments and the total number of units in all types of accommodation is 168 700. It was estimated that there are about 3 700 B&B establishments with about 13 000 rooms.