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Brexit's effect on SA tourism

Source: News24, 19/07/2016

Johannesburg - The United Kingdom`s recent vote to leave the European
Union coupled with the UK leadership race have had a major impact on
the pound.

However, experts are divided on how this will impact the local tourism
industry. Some are saying that with the weaker Sterling, UK tourists
will opt to travel to South Africa in order to take advantage of a
weak rand. Others have said that the current situation will result in
a decline in the number of tourists from the UK with those that do
travel outside the country spending less money.

Pierre Roux, group financial manager for Premier Hotels & Resorts,
agrees that UK tourism to South Africa will drop and believes that as
a result of the weaker pound, South Africa will see more tourists from
countries with stronger currencies such as the dollar and euro.

"Despite this, we will not be able to make up the loss of the Sterling
we have come to expect from the UK which is our number one
international inbound tourism market according to Stats SA`s Tourism
and Migration April 2016," he explains.

"It is our hope that more countries with solid currencies will see
South Africa as an attractive tourism destination and that by visiting
our shores in bigger numbers, they will positively impact the
rand."

In his view, the weak rand bodes well for local tourism as it makes
exploring one's own country a more viable option than travelling
internationally.

"Furthermore, Tourism Minister Derek Hanekom has said the government
had ring-fenced R110m to spend on supporting domestic tourism this
year and would be working with the private sector to try to make
domestic travel more affordable for South Africans. The combination of
these will result in an increase in domestic tourism and consequently
stimulate the local economy," says Roux.

"In the coming months, we will have clearer picture of just how Brexit
has affected the local tourism industry."

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