While South Africa’s overall 2022 H2 tourism performance index is projected to be up to 75.7 from the 67.0 recorded in H1, these figures continue to reflect a pessimistic outlook for the tourism industry at below-normal business performance.

Normal business performance – defined as “the level of acceptable business performance in line with the realistic long-term average performance” – is calibrated to an index of 100. An ‘above-normal’ index would be a figure above 100. Below-normal is anything under 100.

This was highlighted in the latest Tourism Business Index (TBI) – an initiative of the Tourism Business Council of South Africa (TBCSA) – which was published in September this year after a two-year hiatus during the COVID-19 pandemic.

“Although the first-half data indicates a below-normal business performance for this sector, it signals a marked improvement following the decreased activity recorded in the two-year period when lockdown regulations were imposed in response to the COVID-19 pandemic,” said TBCSA CEO, Tshifhiwa Tshivhengwa, presenting the TBI during the organisation’s recent Tourism Leadership Forum.

Factors influencing the negative performance of tourism businesses during H1 included crises (looting, flooding and drought), aviation instability and COVID-19 restrictions. The accommodation sector sub-index was further impacted by insufficient overseas business and leisure demand.

Other tourism businesses were further affected by the cost of finance and insufficient overseas leisure demand.

The accommodation sector sub-index was positively impacted in H1 by the lifting of COVID restrictions, improved operational efficiencies and strong domestic leisure demand.

Other tourism businesses were positively affected by the lifting of restrictions, strong overseas leisure demand and improved operational efficiencies.

Editor’s note: The data was compiled on behalf of the TBCSA by advisory company, BDO, based on an online survey conducted with a cross section of tourism businesses, including airlines, travel agents, accommodation providers, coach operators, retail agents, forex traders, vehicle-rental companies, tour operators, attractions, and conference venues.