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Club Travel


Date published 25.07.2016

TOURISM businesses performed below normal levels during the second quarter, according to the latest Tourism Business Index. The Tourism Business Council of South Africa attributed the results to tough trading conditions but was optimistic that the situation would improve.

The report showed an index score of 78.9. A score of 100 would show normal business performance levels. The score is 7.3 points below the 86.2 previously forecast for the second quarter.

TBCSA Chief Executive Officer, Mmatšatši Ramawela, said the sector’s recovery was going to be challenging. “[It] is going to be an even bumpier ride, considering all the added pressure inherent in the broader economy, which will no doubt affect our sector. We still have the after-effect of Brexit to contend with, considering that both the EU and the UK are amongst our primary source markets for both our business and leisure travellers.”

The council said there was “a general trend of low confidence” in South Africa’s economy, with other global economic indices also showing below normal confidence levels. The council said it was critical for role players  to “tighten their belts and work harder to make South Africa a compelling proposition all around”.

Original estimates of a 1.6 percent growth by most forecasters, including the government,  in the South African economy this year have now been downgraded to zero percent.

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