Tourism business in South Africa is no longer what it is used to be.
Its performance dipped and went down in the second quarter of this year, the worst than what was expected, a TBCSA FNB Tourism Business Index (TBI) has revealed this week.
The report shows a score of 94.7 across April, May and June, indicating performance just below normal, and almost 18 points below January to March’s 112.4 index reading.
The industry had already shown an expectation of a dip with a projected 103 performance, but actual performance was somewhat worse than expected at 94.7, the TBI says, adding that expectations for the third quarter are at about the same level at 98.
The biggest challenge facing many tourism businesses remains the rising cost of doing business which can also be attributed to government legislation, regulations and input costs as 44% of TBI respondents cited.
Insufficient domestic and international leisure demand, especially from South Africa’s key source markets also featured heavily as constraints on performance,” Mmatšatši Ramawela, CEO of Tourism Business Council of South Africa, said in a statement.