Hospitality group Southern Sun says the heightened anti-immigrant sentiment in South Africa in the first half of the year hurt transient travel, with travellers from the Southern African Development Community (Sadc) being cautious to travel.However, the group on Wednesday said it saw an uptick in occupancy levels for the five months ended August from 57.8% to 60.2%, with the month-long tour of the New Zealand rugby team contributing to the increase.“The group’s South African operations delivered strong ebitdar [earnings before interest, taxes, depreciation, amortisation and restructuring] growth over the five-month period, driven by continued demand for eventing, as well as groups and conferencing in the Western Cape and Gauteng with the Rugby’s Greatest Rivalry tour in August 2026,” the company said.“There have been reassuring signs of growth in … conferencing demand in KwaZulu-Natal driven by sports and associations business; however, transient travel and domestic leisure travel in particular remain subdued, impacted by disposable income pressure and anti-immigration protests impacting Sadc-related travel.”South Africa was on edge before the June 30 deadline set by the civic movement March and March for illegal foreign nationals to leave South Africa.The civic movement, which campaigns against undocumented immigration and advocates for stricter border enforcement, led several marches across South Africa’s big cities to make their point, putting law enforcement and foreign nationals on the edge.President Cyril Ramaphosa sent special diplomatic envoys across Africa to explain South Africa’s new immigration measures. Southern Sun’s offshore business was aided by the relaunch of Paradise Sun, which the group closed for refurbishment, while trading volumes increased in Mozambique and Tanzania, helping push the offshore segment’s total revenue to grow by 54%.The group, worth R13.4bn on the JSE, however, faced cost pressures in the form of above-inflation cost pressures in IT after various system upgrades, higher utility costs affected by electricity tariff hikes, water outages and “significant increases in property rates”.This has not stopped the group from pursuing its strategy to revamp its key facilities.“The group’s strategy remains internally focused, with several refurbishments in progress during the first six months of the financial year, including Southern Sun Newlands, Hazyview Sun, Mount Grace Hotel & Spa, Birchwood Hotel & OR Tambo Conference Centre, Southern Sun Waterfront and Southern Sun Hyde Park,” it said.Read: Tourist numbers to South Africa surge 17% in JulyThe hospitality group told shareholders to expect at least a 20% increase in headline earnings for the six months ending September.“This guidance is based on management accounts to August 31 2026 and an estimate of September trading and excludes any potential impact of management’s assessment of investment property fair values or impairments,” the company said.“Shareholders are reminded that the group’s peak trading months are weighted to the second half of the financial year, and the comparative period included significant events such as the B20 and G20 conferences in the third quarter of the 2026 financal year resulting in a higher comparative base.”Business Day