Abstract
M.Comm.
South Africa is one of the most promising tourism destinations of the African continent.
There is no doubt that the extremely positive growth experienced in the South African
tourism industry after the elections of April 1994, will continue. The rapid growth in the
tourism industry resulted in a shortage of informal accommodation. This shortage is an
opportunity for potential entrepreneurs to enter the informal accommodation sector and
specifically the guesthouse component. Emerging entrepreneurs however perceive a lack
of information on how to enter the industry.
The aim of this study is to set guidelines for potential entrepreneurs concerning the
strategic decisions involved in the establishing, running and management of a guesthouse.
This study commences with a literature review followed by the empirical research.
With the literature study emphasis was given to the identification of current tourism trends,
specifically regarding the accommodation sector. Entrepreneurship was defined and
related theories analysed. Thereafter, the functional management and the daily running of
the guesthouse were discussed.
The empirical research was of a qualitative nature. A convenience sample was used,
consisting of eight guesthouse entrepreneurs on the Garden Route, Western Cape. A
structured questionnaire was designed with the literature review as a foundation. Personal
interviews were conducted with the eight entrepreneurs.
The main findings of the empirical research are as follows:
Guesthouse entrepreneurs are faced with the unavailability of financial support in the
establishing of the business, numerous staff challenges and a 24-hour owner
responsibility. The location of the guesthouse is the single most important establishing
factor, while the
success of the guesthouse is further determined by the character of the buildings, the
nature of the cuisine and the unique atmosphere of the guesthouse.
Most guesthouse owners are typical entrepreneurs and are extremely creative. Financial-,
marketing- and human resource management are often the responsibility of the owner.
Most guesthouse entrepreneurs do not posses formal knowledge and experience
regarding the management of the guesthouse.
The guesthouse is usually an extension of the entrepreneur's personality; a high level of
owner involvement is required at all times to ensure profitability. Personalised attention is
most often the keyword to the guesthouse entrepreneur's success. The guesthouse is a
most rewarding type of business to be involved in.