DESPITE the perception that
domestic tourism will boom as
a result of the weak rand, local
travellers are being excluded from the
South African market as SA becomes
more attractive to international
markets.
Several high-end, rand-based
accommodation providers have
announced they will raise 2016
rates – some by as much as 20% –
in response to the weakening rand,
citing increased input costs as the
reasoning behind the price hikes.
The weak rand will result in a
buoyant inbound tourism market
and consequently push up prices
in the tourism sector, says Martin
Wiest, ceo of Tourvest Destination
Management. “It will become very
expensive to travel locally but those
travelling internationally will be
spending at least 30% more money
than they used to.”
On the contrary, there are currently
great deals for South Africans
wanting to travel abroad, says
Pentravel ceo, Sean Hough. A holiday
in Thailand and Mauritius is likely
to be cheaper than a holiday in
Cape Town. “Rather than assuming
they need to start selling more
domestic travel, agents should look
for international markets that still
offer value, because they are out
there,” he says. Pentravel’s forward
bookings are up for all international
destinations, he adds.
“Trafalgar has early bird booking
specials and a rand guarantee, while
Club Med is launching 15% off skiing
packages. These are great gestures
and offer excellent value for the
traveller,” Sean says. Air fares are
also good at the moment because of
the low fuel price, he adds.
“I don’t believe there will be a
great resurgence in domestic travel,”
says Sean. “Local restaurants and
accommodation providers have
already started increasing their prices
because of the influx of inbound
tourists, and South Africans will
ultimately lose out as a result. Other
service providers will probably follow
suit and it will become even more
expensive to travel in South Africa
than it already is,” he says.
Selling domestic packages is also
not as lucrative for travel agents. “If
agents contract directly, they can get
good commissions but if they book
through a tour operator, for instance,
they may only get 7% commission
as opposed to 12% on international
bookings.”
“Most South Africans are taking up
camping and self-catering,” says Gill
Maskell, owner of Africa 2000 tours.
“Better value can be found in an
international trip. For example, Mango
has excellent travel specials for
South Africans travelling to Zanzibar,”
she says.
Online travel agency, Travelstart, has
seen a surge in domestic bookings,
with low domestic air fares also
making local travel more attractive.
But there is still scope for people
to travel abroad, says head
of communications, Russell
Jarvis. “Mauritius offers
good packages and South
East Asia offers a range of
well-priced destinations,” he
says. “If someone weighs the
value of a four-star holiday in
Thailand versus Cape Town,
they will likely get more value
from the Thailand trip and
there is not much difference
in price,” he says. “But South
Africa offers options for
people travelling on all kinds
of budgets and if they can’t
afford to go overseas, they
will find something they can
afford within our borders.”
