The oversupply is so bad that Gillis predicts that some hotels will go out of business, or will be converted into flats or old-age homes. Gillis says his company has been approached by hotels, to be taken over by Protea. Branded hotels with international marketing arrangements will be the only ones to survive the hotel accommodation glut, Gillis said. According to Gillis, the recessionary depressed America and Europe will make itself felt in the local accommodation industry for another twelve months.
The Protea Hotel’s 15 on Orange is only now starting to attract larger numbers of tourists, including film crews, having been open for a year already.
Gillis says that delighted World Cup soccer fans that visited Cape Town three months ago will not be coming back this season, but they will recommend the city to friends and family. “People in the UK are getting fed up with austerity and some will probably decide they would like to go abroad this year, to somewhere different, particularly if airfares stay at reasonable levels” he said.
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.comTwitter: @WhaleCottage