ALLAN GRAY– Hospitality sector turnaround signals opportunity for local investors
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GUEST – Varshan Maharaj - Portfolio manager at Allan Gray
According to the World Travel and Tourism Council, South Africa’s tourism sector is expected to grow by almost 8% a year over the next decade, significantly outstripping GDP growth. On the ground, many experts are predicting a record turnout this festive season at popular destinations like Cape Town and Durban.
This resurgence is also being felt in terms of foreign tourists, with South Africa welcoming 8.5 million international arrivals, almost 50% more than the previous year. Despite these positive projections, the sector remains undervalued, with many local hospitality and leisure shares still trading at well below their pre-pandemic prices.
Varshan Maharaj, portfolio manager at Allan Gray, joins Kaya Bizz to explore whether the hospitality sector’s turnaround signals present an opportunity for long-term investors.
According to the World Travel and Tourism Council, South Africa’s tourism sector is expected to grow by almost 8% a year over the next decade, significantly outstripping GDP growth. On the ground, many experts are predicting a record turnout this festive season at popular destinations like Cape Town and Durban.
This resurgence is also being felt in terms of foreign tourists, with South Africa welcoming 8.5 million international arrivals, almost 50% more than the previous year. Despite these positive projections, the sector remains undervalued, with many local hospitality and leisure shares still trading at well below their pre-pandemic prices.
Varshan Maharaj, portfolio manager at Allan Gray, joins Kaya Bizz to explore whether the hospitality sector’s turnaround signals present an opportunity for long-term investors.
