South Africa is at the convergence of several powerful long-stay demand signals, and the hospitality sector is not keeping up with any of them.
The Digital Nomad Visa, formally implemented in March last year, allows foreign remote workers to reside in the country for up to three years while earning income from international employers, says Anthony Batistich, the general manager for @Sandton Hotel.
He says Cape Town alone is projected to contribute approximately $3.78 billion to GDP by 2026 through this segment.
“These are not transient tourists. They need accommodation that functions as a working home over months rather than days, and a standard hotel room, regardless of its quality, simply does not answer that brief,” says Batistich.
The GM says corporate relocation adds further weight to the argument. He says research by Crown World Mobility found that 89% of companies deploying assignees in Africa are doing so on long-term projects.
“The executives, consultants and specialists arriving in Johannesburg, Cape Town and Durban for weeks or months at a time are not looking for a room for the night. They are looking for a stable, functional base.
“Gauteng holds the largest share of South Africa’s hospitality market, and business travel already generates a disproportionate share of revenue relative to its volume. The demand, in other words, is already here.”
Extended-stay hotel occupancy
The extended-stay market is not a niche, says Batistich.
He says that globally, it was valued at $57.7 billion in 2024 and is projected to reach $98.8 billion by 2030, at a compound annual growth rate of 9.5%. In North America and Europe, where operators recognised this shift early, extended-stay brands now account for roughly one-third of the hotel construction pipeline, he adds.
“Extended-stay hotels have maintained an occupancy premium of around 12 percentage points above the overall hotel industry for four consecutive years, and even during the contraction of 2020, their average occupancy held at roughly 60% while the broader industry fell far below that.
“The model works because it mirrors how guests actually use the space: fewer daily turnovers, lower housekeeping intensity and guests who have made a considered decision to be where they are rather than simply passing through.”
The SA hospitality sector is largely absent from this conversation
Part of that is down to how most hotels measure performance, according to Batistich. He says that when the entire commercial model is built around average daily rate and short-stay occupancy, a guest seeking a monthly rate looks like a revenue dilution problem rather than an occupancy stability solution.
“That framing is worth examining. Extended-stay room revenues generated through traditional hotels have been found to run 21% higher than those from purpose-built extended-stay properties, suggesting that hotels prepared to adapt their offering, rather than build from scratch, can compete strongly in this segment without wholesale reinvention.”
The product question matters too, says @Sandton Hotel.
The local multi-use, high-rise lifestyle development says extended-stay guests require in-room cooking facilities, reliable high-speed connectivity, dedicated workspace and access to amenities that support a full daily routine.
It adds that a hotel that offers none of these cannot simply adjust a rate band and position itself as an extended-stay option. “The offer has to be genuine, and that means making design and amenity decisions upstream, not retrofitting them as an afterthought.”
The SA government is said to have recognised the opportunity, with the remote work visa and rising demand for long-stay accommodation both flagged as key growth drivers for the accommodation sector.
However, what has not kept pace is the industry’s willingness to build products and commercial strategies that speak directly to this guest.
Rate structures, booking windows, amenity packages and corporate agreements all need rethinking with the long-stay traveller in mind, not as a variation on the existing offer, but as a distinct and deliberately designed one, says the development.
On Monday, SubmitMyVisa, an online platform designed to simplify the process of applying for and renewing visas in SA, said relationships matter, and family unity matters too. It said SA’s Relative Visa renewal process should reflect this.
Yet too often, this is not the lived reality for applicants. Many are left in limbo and under a cloud of uncertainty, the platform said.
It says that the renewal of Relative Visas remains one of the biggest stumbling blocks in SA’s immigration system.
“Designed for spouses and immediate family members of South African citizens or permanent residents, this visa is typically issued for two years and can be renewed from within the country, provided the applicant already holds a Relative Visa.
“Straightforward as it sounds, the process is frequently marred by setbacks, resulting in derailing people’s everyday lives because of ongoing processing delays in certain visa categories at the Department of Home Affairs (DHA).”
There is demand
The demand is here, says Batistich. He says the policy infrastructure is being built. However, he says what is still missing is a genuine commercial commitment from the sector to meet this guest properly.
“The operators who make that commitment will not simply capture additional revenue from a growing segment. They will secure a more predictable occupancy base, a lower cost-per-occupied-room and a guest relationship that extends well beyond a single booking.”
A more serious response is needed
South Africa’s hospitality sector has shown real resilience over the past few years, says @Sandton Hotel.
It adds that the extended-stay market is one of the most clearly signposted growth opportunities in front of the country.
“It deserves a more serious response.”
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