|
|
 |
|
Viewing report
|
|
|
|
South Africa Tourism Report Q1 2011
Business Monitor International, Jan 2011, Pages: 61
The South Africa Tourism Report provides industry professionals and strategists, corporate analysts, tourism associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on South Africa's tourism industry.
Tourism Overview
Figures for January-August 2010 show a robust increase in foreign tourist arrivals, up by over 17% year-on- year (y-o-y). This was buoyed by South Africa hosting the 2010 World Cup in mid-2010, which attracted more than 1.4mn foreign tourists (a 25% increase compared with June-July 2009). Growth in arrivals from across Africa was strong in the first eight months of the year, up by nearly 14% y-o-y, with arrivals from Zimbabwe dominating the increase, rising over 31% y-o-y (about 234,000 visitors). The increase in Zimbabwean visitors was equivalent to over half the total net rise in arrivals from Africa as a whole. Arrivals from Europe, meanwhile, were up by a healthy 11% y-o-y, or an increase of about 83,000 people. Although the arrival numbers were relatively small, the strongest growth rates were recorded for visitors from the Americas, Australasia, the Middle East and Asia.
Hospitality
Despite the number of tourist room nights increasing by 15% y-o-y in June 2010, boosted by the World Cup, the latest preliminary data for the hospitality sector for the first nine months of the year make for poor reading. The total number of foreign and domestic tourist room nights in all accommodation establishments fell by 1.4% y-o-y in January-September 2010. Moreover, in July (when the World Cup was still underway for part of the month), August and September, growth was -0.6%, -4.3% and -0.3% respectively, compared with the same months in 2009.
Forecast Scenario
BMI continues to estimate that growth in foreign tourist arrivals and tourism receipts in 2010 picked up sharply, largely due to South Africa hosting the World Cup, but also as a result of economic recovery in key source markets. Although growth in tourist arrivals reached a particularly strong 20% y-o-y in H110, a slowdown in the growth rate for the latter part of the year is anticipated, with estimates remaining at 15.0% for the year as a whole. Further upward revisions have also been made to BMI’s exchange rate forecasts, with the South African rand set to extend its recent gains against the US dollar and the euro. The strength of the rand over the long term will act as a constraint to international tourism.
Sun International
In its latest financial results, for the quarter ending September 30 2010, South Africa’s Sun International reported an 11% y-o-y rise in revenue to ZAR2.2bn. Gaming revenue was up by 10% y-o-y, while revenue from rooms increased by 19% on the same period in 2009, primarily due to the World Cup. Overall group occupancy was 4% lower y-o-y, however, at 65%, but the average room rate increased by 16%. Following the football tournament, the company reported that demand for hotels and resorts weakened, resulting in a fall in revenues y-o-y. Sun International believes that demand in the gaming and hospitality sectors will remain challenging for the foreseeable future.
South African Airways
During FY09/10, South African Airways (SAA) recorded total group revenue of just under ZAR22.3bn, a decline of nearly 16% y-o-y. For the third year in a row there was negative growth in total passenger traffic, down by over 2% y-o-y to about 6.7mn. Although domestic and international passenger numbers decreased by 6% and 5% y-o-y respectively, regional passenger traffic increased by 9%. African routes remain the most profitable market segment. Operating costs decreased by more than 14% y-o-y to ZAR21bn, mainly due to lower fuel and aircraft leasing costs. Net profit was ZAR581mn, up by nearly 45% y-o-y. The results were satisfactory, considering a decline in passenger numbers and the continuing challenging conditions for the aviation industry worldwide.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
