LIFT IN RSA TOURISM PERFORMANCE
Weak rand, leisure demand lift tourism performance
The weak exchange rate and strong overseas leisure demand have played a significantly positive role in lifting business performance, according to first-quarter results of the Tourism Business Index (TBI).
The industry recorded an overall index of 112.4 for the first quarter of 2014, slightly lower than last quarter’s 114.6 but still above normal trading performance levels.
The accommodation sector performed slightly better than expected with an index of 116.1 compared with the forecasted index of 107.3. This is the sector’s second-highest recorded performance level achieved since TBI’s inception in 2010. The highest level was reached in the first quarter of 2013, when the index peaked at 120.9. Expectations for the second quarter of the year remain close to normal at 103,2 with an anticipated strong positive performance forecast for self-catering and camping, timeshare and hotel establishments.
Other tourism businesses, which include the tourism transport sectors, travel agents, retail outlets, conference venues, attractions and forex traders, experienced a slightly weaker performance of 109.6. In this sector, travel agents recorded a significantly worse than normal performance. However, operators in this sector remain fairly optimistic going into the next quarter. TBCSA CEO, Mmatšatši Ramawela, welcomed the results, saying that some of the industry’s good performance can be attributed to improved economic conditions in the global environment, as well as current efforts to promote the destination in new source markets. “Over the past two years, we’ve seen constrained overseas leisure demand, particularly from our traditional source markets such as the United Kingdom,” said Ramawela. “We are encouraged to see a rebound in the market but also recognise that there is growing demand for both leisure and business travel in emerging markets within regional Africa and the BRIC countries.”
Ramawela said the organisation was pleased to see that business performance in the sector remained buoyant and was responding well with the rebound in international travel demand. Respondents to the quarterly index highlighted improved marketing and positive media coverage as contributing factors. The TBI is an initiative of the Tourism Business Council of South Africa and is compiled by Grant Thornton, in association with FNB.
