Tourist arrivals in South Africa continue to grow
2012 saw the number of arrivals to South Africa increase by 5%, a higher rate of growth than the 3% growth in arrivals registered during 2012. Rising numbers of arrivals from neighbouring source countries such as Swaziland, Lesotho, Mozambique and Zimbabwe drove growth in arrivals during 2012 the numerous transport alternatives for arriving in South Africa supported growth. Road transport to South Africa from other Southern African countries is relatively cheap and for this reason the bulk of arrivals in the country are by land transportation.
Hotel occupancy levels improve during the review period
Hotel occupancy rates improved in South Africa during 2012 following reports of an oversupply of hotel rooms in the country during 2011. The oversupply of hotel rooms led to low occupancy levels during 2011 across all types of hotels. Many hotels in South Africa were constructed in the build-up to the FIFA World Cup in 2010, which was hosted by South Africa. Soon after the World Cup, however, there was an excess of hotel rooms at a time when consumer confidence took a dip at global level and many travellers were less keen to occupy hotel rooms which carry high room rates. Consumer spending power has since improved in South Africa, although the cost of living growth still outweighs the rate at which average consumer income is growing. As the exchange value of the South African rand continues to slide, it has also become cheaper for travellers from other countries to find travel accommodation at attractive rates in South African hotels and this was a strong driver of growth in the numbers of arrivals in South Africa during 2012.
More information for tourists threatens travel retail sales
Tourists in South Africa are increasingly seeking value for their money each time they pay for travel and tourism products and services. As the range of information sources available to them such as the continues to increase and as price comparison tools can are becoming more popular, many South African consumers are increasingly bypassing travel retailers when seeking travel and tourism products and services. This continues to pose a threat to growth in revenue for South Africa’s travel retailers. For instance, 4% current value growth was recorded in travel retail in 2012, a slower rate of growth than the 6% current value growth recorded during 2012 posted. The use of social media by the direct suppliers of travel and tourism products and services allows them to establish and maintain contact with potential customers and this became increasingly influential towards the end of the review period, particularly in terms of boosting the fortunes of South Africa’s online direct suppliers of travel and tourism products and services.
Opportunities open up for financially fit domestic airlines
2012 saw the closure of several airlines operating in South Africa due to liquidity issues. The first airline to close during the year was Velvet Sky, which was followed by 1Time towards the end of the year. Financial weakness was cited as one of the key reasons for the failure of these airlines to survive the high levels of competition coming from airlines such as Mango and Kulula, which have the backing of their respective parent companies South African airways and Comair Ltd. It has become very clear that domestic airlines can succeed in South Africa only if cash flows are managed effectively and if there is also sufficient financial support amidst high levels of price competition as operational costs often need to be met through external funding.
Middle class growth expected to boost tourism revenue growth
Ongoing growth in the size of South Africa’s middle class population is expected to be the key factor in terms of boosting revenues in the travel and tourism industry over the forecast period. South Africans are expected to adopt a stronger travel and tourism culture as many South African people who were previously disadvantaged economically continue to obtain access to better jobs through the provisions of the BBBEE act. It is expected that as the incomes of these consumers grow, their tastes and lifestyles will also change, resulting in some of them adopting a stronger culture of travel and tourism at both domestic and international level. The South African Department of Tourism has been on a persistent drive to boost domestic tourism growth in South Africa and the country’s middle classes are expected to form the core of the Department’s target audience as it bids to attain the objectives of the official national tourism strategy.
Samples (FAQs about samples):Sample Travel and Tourism Market Research Report
Sample Travel and Tourism Data
Delivery: Files are delivered directly into your account within a few minutes of purchase.
Discover the latest market trends and uncover sources of future market growth for the Travel and Tourism industry in South Africa with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Travel and Tourism industry in South Africa, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in South Africa for free:
The Travel and Tourism in South Africa market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation
- Historic volumes and values, company and brand market shares
- Five year forecasts (of market share, market trends, market growth)
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Travel and Tourism in South Africa?
- What are the major brands in South Africa?
- What are the major brands in South Africa?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Travel And Tourism market research database.
Each report is delivered with the following components:
Report: PDF and Word
Market statistics: Excel workbook