50% increase
"What is true is that despite the fact that over the past three years the five-star room inventory in Cape Town has increased by in excess of 50%, a number of prominent five-star hotels have increased occupancies during 2010 as well as for the six-month period ended 31 March 2011," he says.
"Anywhere in the world, hotel markets seeing such a significant increase in room inventory will experience a dilution in overall occupancies and Cape Town has been no exception. This has been exacerbated by the global and local economic slowdown, however, overall the Cape Town five-star hotel market has performed remarkably well and is in a far better shape compared to that in many international cities and destinations.
"Many hotels in global destinations would have been pleased to maintain overall occupancies during the past six months compared to the previous year, and with the available five-star room inventory increasing by over 50% in the last few years, one would have expected occupancies to have halved for quite a few hotels, and yet the contrary has occurred.
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