South Africa, Pretoria, 16 October 2014: The quarterly TBCSA FNB Tourism Business Index (TBI) has ticked-upwards in the third quarter, exceeding performance expectations with a score of 105.3. Considering that a score of 100 is regarded as the normal trading climate, this is an improvement to the Q2 index of 94,7 and the forecasted Q3 index of 98.9.
TBI is an initiative of the Tourism Business Council of South Africa (TBCSA) and is compiled on behalf of the TBCSA by Grant Thornton. TBI tracks actual business performance in the South African tourism industry and provides an indication of the current and likely future performance of the various businesses. The index is made up of two sub-indices: ‘accommodation’ which encompasses all types of accommodation establishments within the sector and‘other tourism businesses’ which includes responses from the tourism transport sector, retail, forex traders, business tourism and attractions.
Despite concerns over critical issues such as the new immigration regulations and the impact of the Ebola outbreak in Liberia, Sierra Leone and Guinea on travel, the industry remained buoyant with both the ‘accommodation’ index and ‘other tourism businesses’ index showing improved business performance. Within the ‘accommodation’ index, the hotel sector recorded slower performance compared to other types of accommodation over this period, whilst in the ‘other tourism businesses’ index, the transport, retail and forex traders showed improved performance.
A large proportion of the respondents from both accommodation and other tourism businesses cited no specific positive contributing factors but the weak Rand exchange rate and strong overseas leisure demand are some of the key factors influencing the industry’s overall good performance.
TBCSA CEO, Mmatšatši Ramawela welcomed the latest TBI results, saying the index affirmed the Council’s view about the resilience of the travel and tourism. “Once again, the latest TBI results clearly demonstrate the resilience and immense economic potential of travel and tourism. Q3 was a tough period for us as an industry, fraught with uncertainties in the wake of the Ebola outbreak which continues to be a worrying issue for the global travel and tourism community. However, we remain focussed and will continue to work hard to create an enabling environment for businesses in our industry to thrive”.
Specific to this quarter, the TBI also probed the industry’s views on the impact of outbreak and the implementation of the new immigration regulations and revealed mixed results.
“When it comes to the Ebola outbreak, the majority of respondents in the accommodation sector (73%) stated that they had not experienced any impact on business as a result of the outbreak” said Grant Thornton’s Head of Advisory Services, Gillian Saunders. She added that understandably, the biggest concern relating to the outbreak came from travel agents, and tour operators.
On the issue of the new regulations, the index found that despite the postponement of the regulation relating to the presentation of unabridged birth certificates tour operators and hotel groups still expect this regulation to have a negative impact on their business. One of the respondents expressed concern regarding resources, saying “There is simply not enough resources at Home Affairs to attend to the requests of local travellers and for international travellers, not all countries have such documentation in place. It has merely created barriers for selling South Africa as a destination.”
Ramawela applauded the industry for remaining single-minded and dedicated to addressing the issue of the new regulations with Government. “A task team made up of representatives from both the public and private sectors has been set up to further review the impact of the regulations and we look forward to engaging robustly with Government on this matter to minimise its unintended negative consequences on business” she said
Looking ahead into the next quarter, performance is forecast to remain above normal levels at 109.8 in the last quarter of the year. Businesses will be exploring various avenues to capitalise on the festive season with both the accommodation and ‘other tourism business’ segments expecting fairly strong demand from overseas, domestic leisure and business.
For further information please contact:
Ms. Kagiso Mosue
TBCSA :Corporate Communications Manager
Tel: (012) 654 2660 / 073 015 4530
Grant Thornton: Communications Advisor/Media Relations Consultant
Tel: 083 27 27 313
ABOUT TOURISM BUSINESS INDEX (“TBI”)
TBI is an overall indicator of the “health” of businesses trading in the tourism sector. This is a business tool that can assist particularly independent and small businesses to understand their operating environment, while large businesses are able to use the index to interact with their various stakeholders. Visit www.tbcsa.travel to download all index reports.
Tourism Business Council of South Africa (TBCSA) is a member-based organisation, made up of Tourism Associations as well as leading businesses operating in the Travel and Tourism sector. The Council seeks to ensure that the industry is unified and speaks with one voice when engaging relevant stakeholders on macro-economic issues affecting the sector.
Sector associations affiliated to the TBCSA are as follows:
1. AHI – AfrikaanseHandelsinstituut
2. AASA – Airlines Association of Southern Africa
3. ASATA – Association of Southern African Travel Agents
4. BARSA – Board of Airline Representatives of South Africa
5. EXSA – Exhibition& Event Association of Southern Africa
6. FEDHASA – Federated Hospitality Association of South Africa
7. NAA –SA – National Accommodation Association of South Africa
8. PHASA – Professional Hunters Association of South Africa
9. RASA – Restaurant Association of South Africa
10. SACA – South African Chefs Association
11. SAACI – Southern African Association for the Conference Industry
12. SABOA – Southern African Bus Operators’ Association
13. SATSA – Southern Africa Tourism Services Association
14. SAVRALA – Southern African Vehicle Rental Association
15. SAYTC – South African Youth Travel Confederation
16. VOASA – Vacation Ownership Association of South Africa
ABOUT GRANT THORNTON SOUTH AFRICA
Grant Thornton South Africa is a member firm of Grant Thornton International Ltd (GTIL). Grant Thornton South Africa was founded in 1920 (previously Kessel Feinstein). We are leaders in our chosen market, providing assurance, tax and specialist business advice to dynamic organisations – listed companies, large privately held businesses and private equity backed organisations. In addition, public sector professionals from Grant Thornton are dedicated to providing specialised advisory services to government at all levels.
We employ 933 people in South Africa with 100 partners and directors. Grant Thornton has a national presence with offices in Bloemfontein, Cape Town, Durban, Johannesburg, Nelspruit, Polokwane, Port Elizabeth, Pretoria, Rustenburg and Southern Cape. South Africa is a major force in Africa, alongside 20 member firms on the continent. We operate in Algeria, Botswana, Côte d’Ivoire, Egypt, Ethiopia, Gabon, Guinea, Kenya, Libya, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Senegal, Togo, Tunisia, Uganda, Zambia and Zimbabwe and are ideally positioned to facilitate clients’ expansion plans in these countries.