Per­sist­ing tough trad­ing con­di­tions af­fect­ing tourism in Q2 2016

Tourism Tattler - - BUSINESS & FINANCE - Im­age courtesy of South African Tourism

The Tourism Busi­ness Coun­cil of South Africa (TBCSA) re­ports that the per­sist­ing tough trad­ing con­di­tions in the South African econ­omy are af­fect­ing busi­nesses in the sec­tor and have led to be­low nor­mal lev­els of busi­ness per­for­mance as recorded in the 2016 Quar­ter 2 Tourism Busi­ness In­dex. How­ever, the Travel and Tourism in­dus­try be­ing the re­silient sec­tor that it is, both lo­cally and in­ter­na­tion­ally, role play­ers have ex­pressed hope of im­proved per­for­mance go­ing for­ward.

These are the sen­ti­ments high­lighted in the lat­est re­sults of the Tourism Busi­ness In­dex (TBI), pub­lished by the TBCSA.The re­port shows that busi­nesses in the travel and tourism sec­tor were trad­ing under tough con­di­tions in Q2, record­ing an in­dex score of 78.9, sig­nif­i­cantly be­low the score of 100 points, which in­di­cates nor­mal busi­ness per­for­mance lev­els. The score is also 7.3 in­dex points be­low than the 86.2 fore­casted for the sec­ond quar­ter of 2016.

Com­ment­ing on the out­comes of the re­port, TBCSA CEO, Ms. Mmatšatši Ra­mawela, says that the Q2 re­sults is a clear in­di­ca­tion that the trad­ing en­vi­ron­ment is tougher out there hence the re­sults that are even lower than what we were expecting in the sec­tor fol­low­ing on from the im­pres­sive re­sults of Q1. It just shows that our re­cov­ery as a sec­tor 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 market for both our busi­ness and leisure trav­ellers,” says Ra­mawela.

Com­par­ing the TBI with other economic in­dices in South Africa, it is ap­par­ent that there is a gen­eral trend of low con­fi­dence across South Africa's economic land­scape. The Q2 2016 re­sults of the RMB/BER Busi­ness Con­fi­dence In­dex fell to a score of 32, which is be­low the nor­mal con­fi­dence lev­els (a score of 50 in­di­cat­ing nor­mal). On a slightly pos­i­tive note, the SACCI Busi­ness Con­fi­dence In­dex (BCI) showed a slight in­crease in the quar­terly av­er­age (from 93.1 to 94.1) in Q2 2016, although the over­all trend is still down­ward from 2015. This be­ing the case, it is go­ing to be crit­i­cal for role play­ers in the tourism sec­tor to “tighten” their belts and work harder to make South Africa a com­pelling propo­si­tion all around.

Read More: Down­load the Full TBI Q2 Re­port

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