SA’s tourism business performance exceeded expectations for the third quarter of this year, while strong performance is also forecast for the last quarter, according to the TBCSA FNB Tourism Business Index (TBI) released this week. The TBI is compiled by Grant Thornton on behalf of the TBCSA.
The index showed a performance score of 105.3. This compares with Q2’s 94.7 and exceeds the forecasted Q3 index of 98.9. A score of 100 is regarded as the normal trading climate.
Despite concerns over critical issues for travel, such as the new immigration regulations and the impact of the Ebola outbreak in Liberia, Sierra Leone and Guinea, the industry remained buoyant with both the ‘accommodation’ index and ‘other tourism businesses’ index showing improved business performance. This was attributed to the weak rand and strong overseas leisure demand.
Looking ahead into the next quarter, performance is forecast to remain above normal levels at 109.8 in the last quarter of the year.  Businesses will be exploring various avenues to capitalise on the festive season with both the accommodation and ‘other tourism business’ segments expecting fairly strong demand from overseas, domestic leisure and business. 
TBCSA CEO, Mmatšatši Ramawela, welcomed the latest TBI results, saying the index confirmed the Council’s view about the resilience of the travel and tourism industry.  “Once again, the latest TBI results clearly demonstrate the resilience and immense economic potential of travel and tourism. Q3 was a tough period for us as an industry, fraught with uncertainties in the wake of the Ebola outbreak, which continues to be a worrying issue for the global travel and tourism community.  However, we remain focused and will continue to work hard to create an enabling environment for businesses in our industry to thrive.”
Specific to this quarter, the TBI also probed the industry’s views on the impact of the outbreak and the implementation of the new immigration regulations and revealed mixed results. “When it comes to the Ebola outbreak, the majority of respondents in the accommodation sector (73%) stated that they had not experienced any impact on business as a result of the outbreak,” said Grant Thornton’s Head of Advisory Services, Gillian Saunders. She added that, understandably, the biggest concern relating to the outbreak came from travel agents and tour operators.  
On the issue of the new regulations, the index found that, despite the postponement of the requirement for the presentation of unabridged birth certificates, tour operators and hotel groups still expect this to have a negative impact on their business.  One of the respondents expressed concern regarding resources: “There are simply not enough resources at Home Affairs to attend to the requests of local travellers and, for international travellers, not all countries have such documentation in place.  It has merely created barriers for selling South Africa as a destination.”
Ramawela applauded the industry for remaining single-minded and dedicated to addressing the issue of the new regulations with Government. “A task team made up of representatives from both the public and private sectors has been set up to further review the impact of the regulations and we look forward to engaging robustly with government on this matter  to minimise its unintended negative consequences on business,” she said

Click here for the 2014 Q3 TBI report.