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Published on : Tuesday, July 21, 2015
According to the tourism business index South Africa shows a dismal performance in the 3rd quarter of 2015. The report also shows a poor performance for the hospitality sector owing to the stringent visa regulations.
The Accommodation Sector looks pessimistic expecting lower than normal business performance at 85,9, but this is slightly above the actual of the last quarter. Other tourism sectors are also showing a decline. As compared to the earlier years Q3 performances next quarter records a forecast index of 76,6, well below the 84,4 of the last quarter, indicating a very pessimistic outlook as well as is the lowest outlook ever recorded by Other Tourism Businesses.
Going by the rate of progress the performance in the next year’s accommodation sector records a negative balance statistic of – 19, 3% with 27,5% of respondents expecting less than normal business performance next year.
Other than the accommodation sector the rest of the tourism fronts of South Africa show a decrease in the employment level. Other Tourism Businesses recorded a stronger negative balance statistic of – 1,5% with just over a quarter of respondents expecting to decrease employment levels (27,5%) compared to 6% expecting to increase employment levels. The hospitality sector maintains a steady performance.
The negative performance has been attributed to new legislation with regard to biometrics and unabridged birth certificates; visa restrictions; the general state of the economy; labour unrest (i.e. strikes); poor service delivery in terms of electricity and water shortage; the impact of the Ebola virus; reduced demand from government officials; high utility costs; high cost of flights, accommodation and car hire; Xenophobia; and Increase in the cost of fuel. But large summits and long holidays in school may bring a difference to the tourism economy.