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While local tour operators are expecting increased arrivals in 2017, the overseas trade suggest that price increases may deter tourists to certain destinations.
Local DMCs have a positive outlook for the year ahead based on enquiries and bookings received thus far. Glenn McKeag, CEO of Springbok Atlas Tours & Safaris, said forward bookings were showing good growth, with all signs that 2017 would surpass 2016. Similarly, Katja Quasdorf, Product and Marketing Director at Jenman African Safaris, said enquiries for South Africa had been coming in earlier, with an increase in numbers for FIT tours, self-drive tours as well as guided group tours.
However, Martin Wiest, CEO of Tourvest Destination Management, pointed out that while South Africa could expect shoulder and off-season growth, availability would cap high-season growth.
High-season availability was a concern because of a lack of inventory and infrastructure, said Wiest. He explained that, for this reason no estimated growth was perceived for those periods. He added that Tourvest would focus more on shoulder and off-season growth and hoped to see a 10% increase in these areas.
However, concerns have been raised about South Africa’s biggest market, the UK.
John Haycock, from UK-based Africa Explorer, suggested that travel to South Africa and dollar-based Southern African destinations had become more expensive for the average UK family. He said the after effects of Brexit had resulted in a 20% increase in the cost of living. “The pound continues to get weaker, and airline prices are not going down either.” The pound was recorded at R24.49 on January 11 2016. The South African rand was at R16.61 to the pound on January 11, 2017.
However, Nigel Vere Nicoll, suggested that while the pound had weakened, South Africa was less likely to experience a decrease in arrivals compared with other African destinations that priced in dollars, given the significant devaluation against the dollar. “The fact that South Africa quotes in the rand and not in dollars, is hugely beneficial.”
Patrick Menzies, SAA Manager: Sales and Marketing for Scandinavia, Finland and Baltics, also noted an increase in prices. He said while South Africa remained an inexpensive destination for Scandinavians, overseas travel agents continued to increase the mark-up on packages. “South Africa needs to realise that they are not only competing with tourism in the rest of Africa, but also against the world.”
Travel to Zimbabwe in 2017 was also expected to increase with the opening of Victoria Falls airport and accommodation options available in Victoria Falls and Hwange, said Quasdorf. She added that Kenya Airways flights linking Livingstone and Cape Town would also help to make packaging the areas more interesting.
Sourse: tourismupdate.co.za
