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Jun 20, 2008:
South Africans overseas are investing their Pounds and Canadian Dollars on guesthouses back home in anticipation of a 2010 boost in the hospitality industry.
Executive director of Pam Golding, Richard Day, said they have "recognised there is a shortage of accommodation (and that) it is a viable investment".
He added that South Africans working overseas form part of a "niche market of South Africans that will gain on a commercial opportunity".
According to information recently released by Pam Golding, Pam Golding Lodges & Guesthouses (PGLAG) have concluded transactions to the total value of over R130m over the past 12 months, and "some 70%" of the guest lodges went "to overseas buyers or South Africans returning to the country".
Peter Bruil of PGLAG said international buyers have adopted a longer planning horizon in regard to capitalising on this forthcoming high-profile event.
"In light of the fact that we know we will have a room shortage for 2010, this is a profitable economic venture which South Africans earning stronger currencies are capitalising on," Day said.
The former manager of Cape Town Tourism, Sheryl Ozinsky, however warned that the Soccer World Cup was likely to leave a vacuum in its wake if developers and buyers over-capitalise on the hospitality industry.
Huge events like the world cup tended to displace more visitors than they attracted, she said. "It's not going to make money for lots of people…I think it's important that people see this event in its context."
Gerlinde Moser, broker owner for City Bowl and Sea Point RE/MAX, said South Africans are definitely coming back.
"Of course South Africans are coming back…from Dubai and countries like Canada and Australia to buy property in light of 2010, but they are coming back for many reasons, not just money."
Often, they "have to come back" when their work contracts expire and they are unable to renew their permits or get residency, or in order to be closer to family. "It's a necessity in a way for them to come back and invest here."
Other South Africans are bringing their Pounds back because they feel their "duty is to (their) country", or because "the grass wasn't greener", she added. – Anita Funke, West Cape News
