There are definite signs of recovery in the tourism sector within the traditional tourism source markets in Europe and the United Kingdom.
Most European economies have emerged from the recession that has plagued long haul travel from Europe, however the weakness of the Euro, US Dollar and British Pound in relation to South Africa’s Rand threatens the tentative growth in long haul travel to South Africa.
Speaking at the conclusion of ITB in Berlin, the biggest international tourism trade show in the world, David Frandsen, Executive Manager International Marketing and the Cape Town Convention Bureau at Cape Town Routes Unlimited (CTRU) commented:
“The weakness of the Euro, Pound and Dollar to the Rand was a recurring theme in our discussions with the major outbound tour operators in the German, other European and American markets."
"The Rand has increased in value between 20% and 30% in relation to the Euro, Pound and Dollar over the past year which means that European and American travellers are paying much more for their holiday in Cape Town and the Western Cape than they were a year ago.”
Theresa Bay-Müller, South African Tourism country manager in Germany added, “with the advent of the World Cup many South African suppliers have increased their rates to at least high season levels, and in some instances even higher."
"These increases during a time of significant Euro weakness are undermining our efforts in promoting the destination and are resulting in significantly lower sales than could be expected particularly given the exposure the destination is enjoying in the run up to the World Cup.”
Brigitte Henze, Product Manager for Africa at DerTour, one of Germany’s biggest long haul outbound operators, indicated that there has been a tentative improvement in global long haul sales after the poor performance experienced during 2009 at the height of the economic recession.
“Any increase in rates over the next few months will translate into a 30% plus increase in Euros in comparison to identical packages sold only a year ago. This will definitely impact on the recovery in sales to South Africa in the short term.”
In reaction to this sobering news from ITB, Calvyn Gilfellan, CEO of CTRU had the following to say, “The Western Cape tourism industry is the most dependent of all South Africa’s provinces on international tourism arrivals particularly from Europe and the USA given the profile of our tourism visitors."
"The United Kingdom, Germany and USA are our biggest tourism source markets and all of these markets are affected by the weakness of their currencies. I would urge the local tourism industry, particularly those dependent on international arrivals to be mindful of this in terms of adjusting their rates particularly during the 2010 FIFA World Cup™ and in the months following this event.”
For more information, visit Cape Town Convention Bureau
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