South African Tourism, has again achieved record-breaking growth, as total foreign arrivals grew by…
South African Tourism, has again achieved record-breaking growth, as total foreign arrivals grew by 6.9% to 1 616 027, during the period from April to June 2005. In addition, more than 8 million domestic trips were undertaken during the same period.
This represents the fourth successive quarter in which the highest number of foreign arrivals to South Africa has been posted, and it reflects the significance and potential of the domestic travel market.
According to Mr. Moeketsi Mosola CEO of South African Tourism: “The positive trend in foreign arrivals mirrors both the global resurgence of travel that took place last year and the continued efforts of all our stakeholders”.
Mosola noted that: “Compared to the same quarter last year, we have seen a 19.7% increase in total foreign direct spend (TFDS) in Rand terms. This means that every visitor to South Africa spent, on average, R408 more.
The TFDS increase from R8.6 billion to R10.3 billion is both impressive and encouraging, as a key element of the Tourism Growth Strategy is to grow both volumes and value”. Growth in this quarter has been driven out of Africa and the Americas, while Europe remained steady.
Only Asia recorded losses. Increased arrivals out of Africa came from both air and land markets. In the air market, a significant growth of 35% came from Nigeria. This was due to an improved visa regime; and with an increase in airlift at the end of this year – with Virgin Nigeria coming on line – further growth is expected.
In African land markets, the most significant growth came from neighbouring countries. While Botswana reported a decline of 10%, there was 53% growth out of Mozambique and 62% growth out of Zimbabwe. Mozambique arrivals have increased since the visa regime was resolved last year, and with the border post at Ressano Garcia being open 24 hours, this positive trend is likely to continue.
Africa also drove the increase in the total value of TFDS to South Africa. Mosola says that: “While some tourism product owners might question the value of this expenditure to their own businesses, it important to understand that this huge financial injection brings value to the overall South African economy and impacts significantly on the key issue of job creation across all sectors”.
Arrivals from the Americas have shown consistent annual growth of 8% since 2002, with more than 5 000 more visitors arriving from the United States. South Africa also welcomed more Brazilian and Canadian travellers during this period.
Growth out of Australasia was largely due to two key markets, those being Australia by 2%, and Japan 21%.
There was however a 4% decline in arrivals from China and India. Decline out of China reflects negative reporting regarding safety and security issues in South Africa in the Chinese media following a number of crimes involving Chinese people.
Arrivals out of Europe were flat for the quarter, but are up 2.5% for the year to date. In fact, 14 927 more European tourists have visited South Africa for the year-to-date. It must also be noted that this quarter is the lowest valley in the seasonal pattern of travel out of Europe in general. Significantly, there was growth out of France for the first time since 2003.
In addition, Europe was the second highest contributor to TFDS. Mosola believes that the currency has stabilised and we are seeing growth in revenue. “This confirms that tourism has the potential to significantly improve the living standards of all South Africans.”
On the domestic front, the incidence of travel remains consistent with the first quarter of 2005, but the number of trips taken in this quarter is higher than expected, due to public holidays. We started to survey domestic travel in 2005”, comments Mosola.
“The total domestic direct spend captured in the quarter was R2.93 billion”. VFR travel was the largest generator of revenue, followed by religious and business travel. “The potential of domestic tourism is the foundation on which we can build a proud, authentic, truly South African brand, enhancing our position as a highly sought after destination in the global arena.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
