Tag Archives: British Lions

Don’t worry, say tourism bosses

The Minister of Tourism and Environmental Affairs as well as the CEO of S A Tourism are sending out messages of hope to the tourism industry, given the global credit crunch.

Minister Marthinus van Schalkwyk is quoted in TravelHub as follows:   “Our industry is by no means immune to the effects of the international economic crisis, but we are still confident that we will reach our target of 10 million visitors in 2010.    Our country continues to be a value-for-money destination and with international events like the Confederations Cup and World Cup lined up, there will be opportunities in abundance and tourism will retain the important role it plays in our economic growth.”

Tourist arrivals in the first eight months of 2008 showed a 5 % increase, compared to 8 % in the same period a year before.

SA Tourism CEO Moeketsi Mosola urged the tourism industry to not “panic”, even though 2009 will be a challenging year.   He projected tourism growth to reduce to 2 % this year, with hotel bookings already down by 25 – 30 %, reports TravelHub.   “This is a time of opportunity for South Africa to catch up with other destinations. When everybody in the world withdraws (from markets), we must move in,” he said, speaking at a conference in Somerset West.

The first six months of 2009 will be busy, he said, with an Australian cricket tour in February/March; the SAA Open golf championships in February; a British Lions tour in June/July; the Confederations Cup in June; and the elections in April.     Mosola is confident that the 2010 World Cup will the biggest success story ever for South Africa.

Credit crunch creates capital

The global economic crisis may not be such a bad thing for South African tourism after all, given its effect on the Rand exchange rates, and resultant greater affordability as a destination for international tourists.  Domestic tourism too should benefit from the exchange rate volatility, in that locals may switch to local holidays over the festive season, instead of going overseas.

The outlook for 2009 and 2010 is favourable, given the Confederations Cup and British Lions Tour taking place in winter 2009, and the soccer World Cup taking place in winter 2010.  Winter traditionally is a very low income period for the Western Cape in particular.

The past week has seen the US dollar exceed R 10, its weakest ever,  and exchange rates of R 18 to the pound sterling and R 14 to the Euro.   It is the dollar exchange rate volatility that may cost the country a petrol price decrease next month, and also may see an interest rate increase instead of the hoped-for decrease.

The tourism industry appears to be optimistic to date about the effect of the international credit crunch.   Tourism Business Africa quotes Joop Demes of Pam Golding Hospitality as saying that the hotel market grew by 19% in the first six months of this year compared to the same period last year.  Growth is in Gauteng, and particlurly for hotels at OR Thambo airport in Johannesburg.   Revenue per available room has increased by 16 %, and by 19 % for 5-star hotels, and by 25% in Johannesburg.  Demes says that about three-quarters of the country’s 57 000 hotel rooms are booked by locals, driven in particular by the MICE market of conferences and meetings, as well as budget holidays.  

Travel agents are seeing a switch to domestic products. Their international clients are booking accommodation inclusive of meals, as a result of the exchange rate weakening, and are paying more promptly, to avoid further price increases, reports Travel News Weekly.

The credit crunch is also driving locals to game reserves, instead of overseas, says FEDHASA KwaZulu-Natal, as well as to beach hotels in the province.

Southern Sun Hotels is confidently predicting that 2009 will be busier than 2010, not only because of the Confederations Cup and British Lions Tour, but also due to the elections and inauguration of the new President, Soccerex, the Australian and English cricket tours, and the FIFA World Cup Final Draw, which takes place in Cape Town in December 2009, reports Travel News Weekly.   Southern Sun has contracted about 10000 of its rooms to MATCH, the FIFA accommodation agency, and is the single largest accommodation provider for the World Cup 2010.

Petrol price decrease fuels tourism

The significant petrol price decrease of 78 cents a litre, and in the price of diesel by R 1,44 a litre, on 3 September, not only was a monetary relief for every South African, but was also an important psychological boost for the tourism industry, which has experienced the toughest winter season ever.  Coupled with the interest rate being held at the same level, it signalled a turning point, in that things can only get better.

Not only has the winter season been a cold and dismal one as far as the weather as well as accommodation occupancy goes, but accommodation establishments have also seen that forward bookings are far slower than usual.  The UK is in recession, and as the most important source market for South African tourism, this will impact on bookings.   The last-minute booking trend continues, making it hard to predict what the summer season occupancies will be.

Good news for the winter next year is that both the Confederations Cup, a “warm-up” for the 2010 World Cup, and the British Lions rugby tour, will take place in June and July 2009.  Bookings are already rolling in for the rugby tour.