Through the storm clouds of a distressed economy, the South African tourism industry stands out as a ray of sunshine. And, with travel and tourism expected to contribute 9.4% to the GDP of South Africa in 2017 – according to the PwC’s Hospitality outlook: 2017-2021 – small business owners operating in the sector need to be taking heed of the sector’s gaps and opportunities if this goal is to be realised, and exceeded in years to come. This is according to Anton Roelofse, regional general manager at Business Partners Limited , speaking in light of National Tourism Month. He points to the latest Tourism and Migration report from Statistics SA, which reveals that the number of overseas visiting South Africa was up 12,4% year-on-year in the second quarter of 2017. Roelofse believes that the continued increase in overseas tourism remains largely driven by the favourable exchange rates that keep the country’s tourism experience affordable, but adds that South Africa is also increasingl...

Josiah Montsho While a weakened rand has many negative implications for the country’s economic growth and wellbeing, it is proving to boost tourism numbers and revenue as South Africa becomes an even more attractive holiday destination amongst international travellers. It is also positively impacting domestic travel figures as locals are increasingly opting to take “staycations” to save on travel costs. This is according to Josiah Montsho, General Manager at Pepperclub Hotel & Spa – a five star hotel in Cape Town – who was speaking in light of the upcoming 2016/17 holiday season. “While the continued favourable exchange rate for international travellers is set to positively influence the increase of inbound tourism to the country, there is a clear shift of domestic travellers seeking local holiday destinations in South Africa, especially towards the end of the year over the holiday period. “The weak exchange rate of the rand to other currencies, such as the dollar and the euro,...

Anton Roelofse As many sectors within the South African economy continue to struggle with growth projected to be low, one sector that continues to thrive is the local tourism industry. Anton Roelofse, regional general manager at Business Partners Limited (BUSINESS/PARTNERS), says that recent figures show the tourism sector to be one of the country’s best performing and consistently stable industries - growing faster than the local economy. Despite tough economic conditions, the sector highlights the opportunities that exist for ambitious, determined entrepreneurs. The local tourism industry is producing a sizeable, positive contribution to South Africa’s GDP – forecast to grow from 9.5% contribution to national GDP in 2015, to 10.5% of national GDP by 2025.  Roelofse says that tourism is similar to an export company as it largely operates with foreign currencies. “The weakened rand is favourable for local businesses within the tourism sector as it makes South Africa an even mo...

Tourism sector remains resilient irrespective of increasing food costs Rising food price inflation which is currently driving the increase in operating costs will not severely affect the tourism sector due to its continued resilience and increasing foreign arrivals boosted by the weak Rand.   The latest figures from the TBCSA Tourism Business Index (“TBI”) revealed that the sector performed steadily in the first quarter of the year regardless of tough business conditions. Charnel Kara, Tourism Specialist at FNB Business, says the recent drought which has led to a surge in food prices, coupled with broader economic challenges are placing strain on the bottom line of many tourism operators. The situation is further exacerbated by a drop in domestic tourism activities and high operating costs, driven by factors such as increasing electricity tariffs and high labour costs. “Despite the current challenges, the travel and tourism sector is still showing strong performance, especia...