South America: an emerging market for SA’s tourism

Source: Tourism Update, 22/09/2018

The South American market has grown significantly for South Africa, we
take a look at why.
Following the release of South Africa’s July arrivals stats, Tourism
Update spoke to experts in the trade about the continued growth coming
out of the South American market.
According to the trade, there are a number of factors driving the
growth out of South America.
André Laget, Managing Director at Akilanga DMC & Events says: “As
emerging markets, these countries are affected by a stronger Dollar
and Euro, the same as the Rand. So when the Dollar strengthens, USA
and Europe become expensive for South American tourists, and South
Africa is a good option after that.” Sonia Fernandez Carralero, Key
Accounts Sales Manager �` Latin America, S Europe, Scandinavia,
Australasia at Thompsons Africa says: “Although these countries have
their respective currencies, (which is not the dollar), their trips
are worked out in dollars, making South Africa very competitive in
comparison to other typical destinations. Often South American agents
request itineraries to be priced in dollars.”
Air access has also been a key factor for South America, particularly
after the introduction of direct flights from Sao Paulo to
Johannesburg by Latam. Victoria Rodenacker, Market Manager at Tourvest
DMC agrees, saying: “With more flight options on Latam Airlines, and
the shorter connecting times in Sao Paulo it has made it easier for
travellers to reach South Africa. This is a deciding factor when they
plan their trips.”
Ederval Carbonaro, Sales and Marketing Manager at Kobo Safaris says:
“When SAA removed the flights from Argentina to South Africa it was
terrible. We lost many passengers to other destinations, because the
connection from Argentina, Chile and Peru was quite difficult. The
passengers had to fly to Sao Paulo for their connection to SA. The
layover at the airport was quite long, and clients had to overnight in
Sao Paulo, which added to the expense. We have seen an increase in
business with Latam flying to South Africa from South America.”
Laget notes that although Latam flies via Sao Paulo, it is a large
regional carrier in South America, with many routes for connections
out of Brazil and Argentina. “It is also a trusted name,” he explains.
Carbonaro adds that the connection via Sao Paolo seems acceptable, as
Latam is the biggest airline in South America, “so they have great
credibility”.
Laget also notes that TAAG is a growing carrier between the two
continents. “It flies to Luanda, via Sao Paulo, and is very well
priced. The big drawcard is that they fly direct to Cape Town, so
passengers no longer have to connect via Johannesburg. They can go Sao
Paolo-Luanda-Cape Town, whereas with SAA they previously had to fly
via Johannesburg to get to the Western Cape.”
In terms of what kinds of travellers are choosing South Africa,
Fernandez Carralero says: “We have received groups as well as FITs
(Free Independent Travellers), family travel and older age groups
(especially during their school holidays, which is their travelling
high season, from December to March). They like child-friendly places;
this is a market that travels in big families including three
generations at times.” Laget notes that Akilanga has a large
Portuguese-speaking group tour of around 35 guests leaving every week.
“Family travel is popular and group tours in their home languages. The
Brazilian market does not appear to do much self-drive.”
Laget also notes that there is a growing demand for holidays in South
Africa from a younger group of tourists who tend to book everything
themselves online.
It appears that factors affecting other key source markets have not
had the same effect on South America. While European and Asian markets
took a knock when the Western Cape water crisis was at its worst,
South America did not. Laget says: “Brazil and Argentina have also had
water problems over the last few years, so they are also more
comfortable with restrictions and know how to continue enjoying
themselves.” Carbonaro agrees, saying: “The water restrictions were
not a big issue, because most of these countries have been in this
situation before.”
In terms of the visa situation that has plagued the industry, the
trade agrees that the South American market was initially affected and
then appeared to settle down. Carbonaro says: “The visa situation for
South America was an issue in the beginning, especially the unabridged
birth certificate which needed to be translated, and all the extra
paper work that is required. With time the agencies and passengers
have learned how to deal with this situation.”
Carralero also notes that key South American countries often tour more
than one country at once and that a new visa regime in Zimbabwe opened
the region up for Argentina, Brazil, Mexico, Chile and Peru. “These
are actually the countries that travel the most to southern Africa.
Often South American countries do more than just one country when
visiting Africa. South Africa and Vic Falls or Botswana has become
very popular, thus the new visa regulation in Zimbabwe opens more doors.”
In terms of exposure for the destination, Laget notes that
particularly for Brazil, the press has been dominated by news of the
upcoming election, “so anything negative about South Africa is not
really making headlines there, which is good for us. However, it does
also mean slow bookings for October when the election is due to take
place.”
Finally, it appears that destination marketing has been key for South
America. Carralero notes that SA Tourism and private tour operators
have been investing time in marketing to South America. Carbonaro
says: “I have just come back from a roadshow in South America and SA
Tourism is doing a great job there.”