Township guest houses have work cut out

by Priscilla Malinga, 2015-08-21 06:17:30.0

BUSINESS is flat for Lolo’s B&B in Diepkloof extension phase 3. This is despite that Soweto has seen an increase in B&Bs (bed and breakfast guesthouses) since 2003, with most opening in 2006 in preparation for the 2010 Soccer World Cup.

"After the World Cup, getting customers became a challenge," says Lolo Mabitsela, owner of Lolo’s B&B.

But nationally the situation is different, as the industry is looking up. A report by PwC released earlier this year, The African Traveller South African Hospitality Outlook 2015-19, says guest houses and guest farms are poised for growth, with occupancy rates due to rise to 65% this year.

Average rates rose 14.1% to R850 last year while stay unit nights are set to increase 2.6% in the period to 2019, says PwC.

B&Bs in Soweto are rated annually by the Gauteng Tourism Board, with many graded at three stars. Elderly women seem to dominate the sector in Soweto and many plan on leaving a viable business for their children.

Support for the B&Bs, in an environment characterised by tight competition and seasonality, comes from Tsogo Sun.

The JSE-listed hotel group, runs a programme aimed at propping up B&B owners, providing them with skills. "Tsogo Sun’s book a guesthouse initiative is a national initiative and does not favour anyone in particular," says the company’s Candy Tothill.

But among the qualifying criteria is that a beneficiary must be unemployed in order to qualify.

Ms Mabitsela is one such beneficiary. But to date making it in the cutthroat industry has been an uphill battle. She feels Vilakazi Street — on which lies Nelson Mandela’s first house and also a house owned by Archbishop Desmond Tutu — gets all the attention. "I’ve been in newspapers and TV programmes, but still struggle to get clients from that exposure," she says.

But Dolly Hlophe owner of Dakalo B&B, situated in the Vilakazi vicinity, argues that operators are often their own worst enemies. "Most of us here charge from R300 to R400 per person per night to get clients. We tried to regulate the fees so that we are not in competition with each other, but the fight for customers pushes the prices down, thus forcing other B&Bs to charging less so they can secure bookings."

Kate Luthaga of Vhavenda Hills B&B not far from Dakalo B&B shares Ms Hlophe’s sentiments. "It helps us to work as a group and supply each other with customers."

Ms Hlophe also points to security issues. "People who come to Vilakazi for fun, and decide to call for a place to sleep after midnight are a challenge," she says, adding: "I’ve resorted to ignoring late-night callers as they are subjecting me to danger and crime."

Slow payers, nonpayers, marketing and security are some of the big issues that B&Bs face on a daily basis. "The other B&Bs suffer because they are working alone, it would help to get them in groups as they can … share business ideas," Ms Luthaga says.

She says a tour company brought guests who stayed for days and left a bill of about R16,000. "I’ve resorted to never taking those groups anymore because they just won’t pay."

Florence Mondi, owner of Fossil’s B&B in Pimville next to Maponya Mall — who also won the Tsogo Sun Best Guesthouse in 2008 — thinks most B&B owners want to be babysat. "Tsogo Sun is open to people who want to be a part of it. Some people are just not eager to participate and learn about their business."

Tsogo Sun gave her the foundation she needed to make her business a success. "They do not give anyone customers, it’s not their responsibility, we get our own," Ms Mondi says.

She also says she still needs to learn to market her establishment better so that she can get above average daily bookings. But she is concerned about guests who leave without having eaten breakfast because they do not trust her cooking standards.

Connie’s B&B in Diepkloof Extension — just like several others — has had to close shop.

"It was easy to get clients in 2010, but after the World Cup, we were left to continue on our own without getting help from anyone," says the owner, who does not want to be identified.

However, for the establishments on Vilakazi Street, things are different. Their owners meet to discuss room rates and customers among other things. They are still the flagships in Soweto, getting the most out of visitors.

But Ms Hlophe says even for those on Vilakazi Street, business is hard. She would like to get funding for new linen, but state funds are difficult to access. Another setback is load shedding. Any form of help in going solar would be welcome as generators are not affordable, she says.

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Tourists visit the famous Vilakazi Street in Soweto. Owners of establishments in the area, which have the highest occupancy, work together to establish room rates and marketing. Picture: SUNDAY WORLD