Tour operators anticipate another bumper year

Source: tourism update, 11/01/2017

Concerns have been raised about British propensity to travel to South
Africa due to price increases.


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.