Southern Africa’s pre-eminent tourism and hospitality associations have reacted with wary optimism to the latest industry data released by Stats SA, which reflect the first signs of clear-cut recovery from top European markets but show that the region is still lagging behind global and continental averages. 

The Tourism and Migration data for July 2022 showed that overseas arrivals to South Africa totalled 122 720, a rise of 29% from June and 63% of July 2019’s pre-pandemic figure of 192 277. The figures (which were most notable for their strong surges from European source markets) are the first true barometer of post-pandemic recovery, following the dropping of South Africa’s last COVID-19 restrictions on June 23. 

Surges driven by summer European peak

Top European source markets have recovered at a slower rate than the US in 2022, causing some anxiety amongst tourism stakeholders.  

Arrivals from the US are at 61.4% of 2019’s comparative year-to-date numbers and the UK (South Africa’s traditional top source market) is at 56.8%, while the slowest recoveries have come from France (39.2%) and Italy (39.5%).

The concerns for European market performance were, however, somewhat eased by strong influxes from the UK, France, Italy, Germany, the Netherlands and most other European markets in July.

“July is the start of the traditional summer peak season out of Europe and the Northern hemisphere and after two years of not being able to travel easily, people were keen to get away,” said Chris Mears, Executive Director of ATTA.

Mears said it was particularly encouraging to see UK inbound arrivals leaping from 12 301 in June, to 18 967 in July. 

“Reports from the trade in the UK are that demand remains strong for travel across Africa. For the UK market, July 2022 was the first (Northern hemisphere) summer season that we were able to travel restriction free to South Africa. Even with the declining value of the pound, South Africa still represents great value for money, with the rand compared to other African countries utilising the US dollar,” Mears said. 

Occupancies buoyed by lodges, B&Bs

The July 2022 Tourist Accommodation statistics also highlight recovery for the hospitality sector. Total income for accommodation establishments was just 4% behind that of July 2019, while average income per stay unit night sold was higher, at R1 197 (€68.25) compared with R1 080 (€61.58). Hotels had a poorer showing than other accommodation types, with income 14% less than that of July 2019.  

“When we split the July figures into different accommodation types, we see that accommodation classified as ‘other’, that is lodges, B&Bs and self-catering, has led the charge and achieved almost 26% more income in July 2022 vs July 2019. This type of accommodation has consistently outperformed other types in terms of recovery this year,” said Rosemary Anderson, National Chairperson FEDHASA.

SA losing out to competitor destinations

Anderson said that South Africa needs to do more to keep up with ‘supercharged’ tourism recovery efforts from competitor destinations such as East Africa.

“We should be looking at what other destinations, like those in East Africa, are doing to supercharge their recovery. It’s quite clear that business as usual isn’t going to deliver the fast growth that South Africa and its economy need right now. It’s going to take an extraordinary effort, and the concerted commitment from both private and public sectors to make it,” said Anderson. 

Data from global travel intelligence firm, ForwardKeys, confirms that South Africa’s current and future arrivals are lagging behind East African competitors and the global average. Kenya’s recovery is just 15% behind 2019 levels for Q4 2022, while South Africa is 40% behind, compared with a global average of 38%. 

“We’ve spoken at length about the red tape that Government needs to remove so that the tourism and hospitality sector has the space it needs to create jobs, but we also have a unique window of opportunity as we head into one of our busiest times of the year to promote the destination in such a way that our international visitors see the value that South Africa offers,” said Anderson. 

Busy summer ahead – SATSA

A survey conducted by SATSA of its more than 1 000 members found that South Africa was in for a strong summer season, with traditional markets leading the recovery. 

“Of the total respondents to the survey, 63% said up to 25% of their forward book was postponed business, with a further 24% indicating that between 25% and 50% of their forward book was postponed business,” said SATSA CEO, David Frost.  

“With more airlift and a very favourable exchange rate, we have the makings of a firm recovery and to that end, we encourage members to get behind our Free To Be South African campaign so that together we can make a noise about our incredible value proposition as Destination South Africa,” Frost concluded.