Top five tips for launching a successful hospitality business during the G20

As South Africa gears up to host the G20 Leaders Summit in November – the first ever on African soil – the spotlight on our hospitality sector has never been brighter. The event is expected to generate over R1.2 billion in direct tourism revenue, putting local hotels, guesthouses and restaurants to the test on a global stage.

The stakes are high, but so is the potential. For entrepreneurs ready to seize the opportunity, here are five practical tips for launching or running a hospitality business in South Africa - guidance that will serve you well in 2025 and beyond.

1 Invest in your digital presence

With 66% of hotel bookings now made online, having a compelling, visible digital profile should be at the top of your priorities. You can strengthen your online presence by showcasing seasonal offerings and unique experiences, encouraging guests to share reviews, and running targeted promotions, such as G20-themed packages or weekend escape deals.

In today’s digitally driven world, strong online visibility not only boosts discovery but also keeps your business top of mind for both local and international travellers.

2 Prepare for surges and seasonality

 An international forum like the G20 will drive a significant spike in accommodation and restaurant demand, but maintaining high standards through quieter months is what builds long-term guest loyalty. In Cape Town, for example, hotel occupancy was around 53% in June 2023, climbing to a full house by December. Plan ahead by improving infrastructure during quiet periods and use downtime to stay on top of maintenance like deep cleaning and servicing cooling systems.

3 Leverage partnerships for reach and resilience

During high-profile events like the G20, strategic collaborations can be game-changers – whether with local tour operators, event planners, travel platforms or nearby businesses. Keep in mind that business-to-business partnerships can widen your distribution, share marketing resources, and help deliver a consistent guest experience.

4 Know your market and manage finances

The South African hospitality sector is projected to grow by over 4% annually, with revenues expected to reach R30 billion by 2029. Sustainable growth, however, requires knowing where demand lies, be it business travel, leisure tourism, or domestic weekenders. Plan your offering accordingly and make financial decisions that account for both slow and busy seasons.

5 Use smart finance to build capacity

 Regardless of whether your hospitality business is experiencing a boom or not, operating costs like utilities, staffing and maintenance continue. Consider flexible financing options - such as asset finance for energy-efficient upgrades (like solar hot water or battery backup) or working capital facilities such as the Business Partners Limited Short-term finance solution to manage cash flow.

South Africa’s upcoming G20 summit is more than a chance to champion the country’s interests on the world stage – it’s a strategic opportunity for local businesses to showcase their innovation and global competitiveness. If your hospitality business can deliver under global scrutiny, it’s poised to succeed for years to come. After all, hospitality isn’t just about welcoming guests; it’s about creating experiences that leave a lasting impression. Now is the time to start shaping your customer experience.

Jeremy Lang, Managing Director at Business Partners Limited

*** The views expressed here do not necessarily represent those of Independent Media or IOL

BUSINESS REPORT