[vc_row][vc_column][vc_row_inner el_class=”force-row-width”][vc_column_inner width=”1/2″][vc_single_image image=”9441″ img_size=”large”][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]
Plan for economic modernization could boost already-expanding business travel.
Corporate spending on travel to, from and within South Africa amounted to US$11 billion in 2018, according to BCD Travel analysis of data from Oxford Economics. Domestic trips accounted for almost 60%. Growth in spending averaged 6% a year between 2013 and 2018. Watch for acceleration of more than 7% annually through 2023 as domestic business travel spending strengthens.
Ask how BCD Travel can help you get travelers to emerging and established markets all over the world.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner el_class=”force-row-width”][vc_column_inner width=”1/3″][vc_custom_heading text=”Economic environment” font_container=”tag:h3|font_size:20|text_align:center|color:%23ffffff” use_theme_fonts=”yes” css=”.vc_custom_1512610685273{border-left-width: 3px !important;padding-top: 1px !important;padding-bottom: 1px !important;padding-left: 3px !important;background-color: #6a982f !important;border-left-color: #486628 !important;border-left-style: solid !important;}”][vc_custom_heading text=”Economic growth and business travel spending” font_container=”tag:h4|text_align:center” use_theme_fonts=”yes” css=”.vc_custom_1512610591220{margin-top: 0px !important;margin-bottom: 0px !important;border-top-width: 0px !important;border-bottom-width: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column_text]
Click on image to enlarge
[/vc_column_text][vc_gallery type=”image_grid” images=”9439″ img_size=”full”][vc_column_text]
- South Africa ranks just ahead of Nigeria as Africa’s largest economy. It’s 31st in the world, with an economy equivalent to Ireland’s.
- Abundant natural resources are key. Gold production is steadily falling, but output of platinum, coal, nickel and other minerals is rising in response to higher global prices.
- To reduce exposure to commodity price volatility, South Africa is diversifying its economy—particularly by expanding services. The financial, mobile telecommunications, tourism, transport and logistics sectors have all performed well.
- Economic growth is hampered by the urgent need for reform to reduce the cost of doing business; a failure to successfully deal with corruption; and depressed consumer and business confidence.
- In August, South Africa’s finance minister announced a plan of economic modernization, reforms and job creation designed to kick-start growth.
[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/3″][vc_custom_heading text=”Air” font_container=”tag:h3|font_size:20|text_align:center|color:%23ffffff” use_theme_fonts=”yes” css=”.vc_custom_1512610692949{margin-left: 0px !important;border-left-width: 3px !important;padding-top: 1px !important;padding-bottom: 1px !important;padding-left: 3px !important;background-color: #5a88c6 !important;border-left-color: #3764a1 !important;border-left-style: solid !important;}”][vc_custom_heading text=”International travel” font_container=”tag:h4|text_align:center” use_theme_fonts=”yes” css=”.vc_custom_1512659905027{margin-top: 0px !important;margin-bottom: 0px !important;border-top-width: 0px !important;border-bottom-width: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column_text]
Click on image to enlarge
[/vc_column_text][vc_gallery type=”image_grid” images=”9438″ img_size=”full”][vc_column_text]
- International travel expanded 4% annual over the last five years. The annual volume of departing passengers grew 5%, and arrivals increased 3%. Overall growth is expected to stay the same through 2023, although arrivals will expand faster than departures.
- Visitors to South Africa account for 62% of international travel. More than a fifth of overnight visitors arrive from Zimbabwe. Over the next five years, arrivals from the U.K. and U.S. will grow 11% per year, on average; each country will account for 6% of visits.
- Mozambique is the top destination for South African travelers. Zimbabwe, Swaziland, Botswana and Lesotho are popular, too.
- State-owned South African Airways (SAA) is the country’s largest airline, accounting for about a third of flights departing from South Africa’s six largest markets. Combine SAA’s legacy operations with flights operated by its low-cost carrier, Mango, and the airlines account for more than half of departures from Johannesburg (including secondary airport Lanseria) and George, and more than 40% of departures from Cape Town, Durban and Port Elizabeth.
- SAA’s biggest domestic rivals are Comair, which flies British Airways-branded flights between major cities, and low-cost carrier Kulula, also affiliated with BA.
- Rapidly expanding FlySafair is increasing low-cost competition.
[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/3″][vc_custom_heading text=”Accommodation” font_container=”tag:h3|font_size:20|text_align:center|color:%23ffffff” use_theme_fonts=”yes” css=”.vc_custom_1512610700425{border-left-width: 3px !important;padding-top: 1px !important;padding-bottom: 1px !important;padding-left: 3px !important;background-color: #ff9e16 !important;border-left-color: #ef790e !important;border-left-style: solid !important;}”][vc_custom_heading text=”Hotel demand” font_container=”tag:h4|text_align:center” use_theme_fonts=”yes” css=”.vc_custom_1512610603564{margin-top: 0px !important;margin-bottom: 0px !important;border-top-width: 0px !important;border-bottom-width: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column_text]
Click on image to enlarge
[/vc_column_text][vc_gallery type=”image_grid” images=”9437″ img_size=”full”][vc_column_text]
- Demand for hotel accommodation in South Africa dropped 14% between 2013 and 2018. Room nights booked by domestic travelers declined, on average, 7% per year.
- International demand was more resilient, expanding 5% a year over the same period. It’s expected to grow at this rate through 2023.
- Local hospitality, gaming and entertainment group Tsogo Sun is South Africa’s largest hotel chain. It operates 83 hotels under different brands, among them: economy tier SUN1; midscale StayEasy; upper midscale SunSquare; and luxury Maia.
- Following its 2014 acquisition of local chain Protea and subsequent merger with Starwood, Marriott is now South Africa’s second-largest chain with 63 hotels. Most are upper midscale Protea properties.
- City Lodge Hotel Group operates 55 select-service hotels.
[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]
