Key success factors for developing and managing guesthouses: a case of a touristic town

Abstract

The goal of the study was to identify key success factors (KSF's) that ownermanagers
of guesthouses can apply to develop and manage guesthouses effectively.
This study was urged by the significant growth of guesthouses in South Africa during
the past five years as well as the size of the guesthouse sector as part of
accommodation establishments. Research revealed that there are approximately
26 000 guesthouses in South Africa, employing 78 000 people. It has therefore
become essential to determine why some guesthouses are so successful whilst others
are failing miserably. The goal was achieved through analysing related literature, as
well as completing a survey of the KSF's by established guesthouse owners/managers
by means of a structured questionnaire. Respondents had to rate important aspects
pertaining to guesthouse development and management as well as to indicate which
of those aspects they apply. The touristic town namely George in the Western Cape
was selected as a destination for determining the KSF's, as most of the guesthouses
in the survey have been in existence for longer than six years and employ at least two
fulltime employees – an indicator of success.

Keywords: Guesthouses; Key success factors; Tourism.

South African Journal for Research in Sport, Physical Education and Recreation Vol. 29 (2) 2007: pp. 121-130