Big benefits for KZN property in rising domestic tourism

Tourism continues to have a positive impact on the development of the KwaZulu-Natal economy.

As in many other places, tourism generates many benefits for residents and businesses of KZN by creating employment opportunities and encouraging investment in the area. 

For example, says Chas Everitt International holiday rentals specialist Nicolas Dekker, domestic tourism has positively influenced the property market in Umhlanga, where there has been tremendous investment over the past few years in new hotels and resorts, retail centres and leisure facilities, as well as several multi-billion rand apartment developments that have opened up new short-term and holiday letting opportunities.  
  
KZN is SA’s leading domestic tourism destination

Described as the “activity of resident visitors within the economic territory of the country of reference”, more domestic tourism should be encouraged because it has the capacity to take up the slack when the inflow in international tourists declines and prevent or at least alleviate any resulting economic dip.

According to SA Tourism statistics, the SA domestic tourism market (direct spend) had a total value of R23,6bn in 2016/ 17, with the average stay being 4,2 nights. 

During this period, KZN was the destination for only 750 000 international tourists but more than 4,1m domestic tourists, with the average stay being 4,5 nights. KZN also took in an estimated R4,5bn in direct-spend from this sector in 2016/17.

“These figures underline the fact that KZN is SA’s leading domestic tourism destination – and that tourism is a very important revenue earner for the region,” says Dekker.

“Our most important source markets for domestic tourists are Gauteng, Limpopo and KZN itself, and according to research conducted by Durban Tourism, Durban is our most-visited destination, with nodes along the North Coast seeing increased levels of tourist activity during peak seasons.”

uMhlanga a prime holiday destination for SA tourists
 
The millions of domestic tourists coming to KZN lodge in hotels, B&Bs, guesthouses and self-catering establishments as well as holiday apartments and houses – all of which are to be found in abundance in uMhlanga – and continue to make a strong contribution not only to the growth of the local property market, but also the upkeep of existing properties. 

“Recognising the demand for holiday accommodation in uMhlanga, many home and building owners here see value in ensuring that their properties’ décor and façades are well-maintained and modern,” says Dekker.

The popularity of holiday accommodation in Umhlanga was recently verified in a study conducted by GIW Consulting for Tongaat Hulett, which found that the town accounts for 4% of SA’s hotel market.

The study further found that this node recorded 13% growth in revenue per available room in 2015 and an additional 11% growth in revenue in 2016.

Explaining why Umhlanga is a prime tourist destination, Dekker says the beach, shopping and entertainment amenities such as the giant Gateway mall and local sporting events are the main draw cards.

“Another benefit is the existence of the Umhlanga UIP which not only provides additional private security around many of the apartment complexes in Umhlanga, but also assists in keeping the area clean and beautified.”

Umhlanga and the greater Durban area are among SA’s top tourist destinations and biggest revenue earners for KZN. With the holiday property sector largely being fuelled by domestic tourism, it is clear why it is important to promote and encourage this activity. Specialising in holiday accommodation along Durban’s North Coast, Chas Everitt Property Rentals boasts an impressive portfolio of self-catering apartments and homes with magnificent ocean views and much more. Contact us on 032 586 0154 today to find accommodation during your next KZN holiday.

Author: Chas Everitt International Property Group