Steady Travel and Tourism Business Performance Results For Q1 2016
Notwithstanding the rising inflation and slow economic growth, overall business performance levels in South Africa’s travel and tourism sector have remained steady in the first quarter of 2016.
This is highlighted in the latest results of the TBCSA Tourism Business Index (“TBI”), published today by the Tourism Business Council of South Africa (“TBCSA”).
The report shows that businesses in the sector experienced almost normal business performance levels in Q1, recording an index score of 97.8, slightly below the score of 100, which would indicate normal performance levels. It is important to note that this result is very close to the anticipated index score of 94.6, which was forecasted in the last quarter. Although there was a small decline in performance compared to Q4 2015, businesses in the sector performed closer to normal levels in this quarter, buoyed by strong performance in the accommodation sector.
Delving deeper into the two main components that make up the TBI, the report shows that Q1 performance levels came in higher than expected in the accommodation segment at 119.3, compared to the anticipated index score of 100.8. This is one of the strongest performances for this segment, only surpassed previously in Q1 2013. In contrast, the other tourism businesses segment, recorded lower than normal business performance levels, at 81.2, an index score that is below the forecasted score of 89.9.
Commenting on the outcomes of the report, TBCSA CEO, Mmatšatši Ramawela, says it is clear from the results that businesses, particularly in other tourism sectors are facing pressures in the operating environment. However, she emphasised that overall the travel and tourism still faired far better than other economic sectors in the first quarter of the year. “This is the second lowest Q1 TBI score recorded since 2011, but when we compare our results with other recognised economic indices in the country, it is quite apparent that travel and tourism remains far more resilient which is very comforting and encouraging”.