Report Coverage
This report on travel and tourism, travel agencies, tour operators and related services industry in South Africa focuses on the state of tourism and travel and its effect on the industry including travel and tourism statistics, the major players, corporate actions and developments, key trends and influencing factors. There are profiles of 61 companies including major players such as Tourvest, Flight Centre and Rennies, tour operators such as African Eagle Cape Town Day Tours and Egoli Tours and booking companies such as Booking South Africa
Introduction
• South Africa's struggling tourism industry is slowly recovering from the pandemic, where border closures, flight cancellations, and onerous entry requirements cut nearly 500,000 jobs.
• The travel and tourism sector has an extensive value chain and labour creation capacity, and is a vital contributor to the economy and a significant foreign exchange earner.
• Demand is volatile and seasonal and supply is fragmented, inflexible and dominated by fixed investment costs.
• The disruption caused by the pandemic has been unprecedented.
• Many travel agents and tour operators’ operations diminished to almost nothing, flights came to a standstill and hotels and restaurants lay empty.
• Countless jobs in the industry have been lost and a growing number of companies and organisations have been forced to permanently close their doors.
• Revenue loss and ongoing operational costs have resulted in substantial cash flow problems for many companies.
• Some experts are expecting the situation to normalise by 2024.
Strengths
• Improved levels of professionalism across the industry.
• Pricing competitiveness of the industry.
• South Africa has a diverse tourism offering and has attractive natural and cultural resources.
• The industry is a driver of the economy, is a significant foreign exchange earner and creator of employment.
• Variety of operators and packages leading to more competition and better pricing.
Weaknesses
• Profit margins are narrow and travel agencies, tour operators and tour guides are highly dependent on commission and gratuities.
• Lack of environmental sustainability of natural resources.
• Lack of skilled and trained people, including shortages of multilingual travel practitioners and tour guides.
• The industry is highly exposed to external macroeconomic, political, geopolitical, social, health and climatic factors.
• The industry is volatile, seasonal and has irrational demand and is supported by supply that is fragmented, inflexible and dominated by fixed investment costs.
Opportunities
• Acquisition of distressed assets from insolvent entities or businesses under business rescue.
• Efficiencies and cost reductions, including the promotion and facilitation of regional value chains.
• Increase in domestic tourism marketing.
• Key hospitality and meetings, incentives, conventions and events are returning as the world normalises.
• Rebranding and marketing of attractions and destinations and access to new marketing channels through social media.
• Skills development.
• Technology allows SMEs to compete with large travel agencies and tour operators and improve customer experience.
• The demand for travel should normalise and return to pre-pandemic levels.
• The development of online travel products, apps and services.
• The facilitation of intra-African travel and trade offers various opportunities for leisure and business travel.
Threats
• Funding constraints
• Further events such as COVID-19, unrest, floods, geopolitical crises.
• Travel demand and accommodation oversupply, including reduction in business travel and a shift from international to domestic tourism.
Outlook
• The travel and tourism sector has shown positive signs of recovery.
• The sector is forecast to grow at over 7% annually over the next decade, significantly outstripping GDP growth.
• The sector’s contribution to GDP and job creation are expected to improve.
• Consumer appetite for travel is growing and bookings and enquiries are slowly increasing.
• The biggest obstacles to more accelerated recovery are persistent inflation, high energy prices, severe supply chain challenges, labour shortages, economic slowdown and lockdowns in China, the war in Ukraine and sustainability considerations.
• In Africa, lower vaccination rates have dampened the region’s air travel recovery, but it is likely to catch up to the rest of the world this year.
Full Report
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Industry Landscape
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Historical Reports
The Travel and Tourism: Travel Agencies, Tour Operators and Related Services Industry in South Afric 2021-11-07
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View Report Add to CartThe Travel and Tourism: Travel Agencies, Tour Operators and Related Services Industry in South Afric 2018-08-31
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View Report Add to CartThe Travel and Tourism: Travel Agencies, Tour Operators and Related Services Industry in South Afric 2016-09-07
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View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 3 |
2.2. | Geographic Position | 6 |
2.3. | Size of the Industry | 6 |
2.4. | Key Success Factors and Pain Points | 12 |
3. | LOCAL | 13 |
3.1. | State of the Industry | 13 |
3.2. | Key Trends | 22 |
3.3. | Notable Players | 25 |
3.4. | Corporate Actions | 26 |
3.5. | Regulations | 29 |
3.6. | Enterprise Development and Social Economic Development | 32 |
4. | AFRICA | 33 |
5. | INTERNATIONAL | 38 |
6. | INFLUENCING FACTORS | 44 |
6.1. | COVID-19 | 44 |
6.2. | Russia-Ukraine War | 45 |
6.3. | July 2021 Civil unrest in KwaZulu-Natal | 45 |
6.4. | April 2022 Flooding in KwaZulu-Natal | 45 |
6.5. | Economic Environment | 46 |
6.6. | Political conditions | 48 |
6.7. | Societal trends | 48 |
6.8. | Safety and security | 48 |
6.9. | Labour | 48 |
6.10. | Environmental Issues | 50 |
6.11. | Infrastructure | 51 |
6.12. | Electricity supply restrictions and loadshedding | 51 |
6.13. | Technology, Research and Development (R&D) and Innovation | 52 |
6.14. | Government Support and initiatives | 52 |
6.15. | Input Costs | 55 |
6.16. | Cyclicality and seasonality | 55 |
7. | COMPETITIVE ENVIRONMENT | 56 |
7.1. | Competition | 56 |
7.2. | Ownership Structure of the Industry | 57 |
7.3. | Barriers to Entry | 58 |
8. | SWOT ANALYSIS | 58 |
9. | OUTLOOK | 60 |
10. | INDUSTRY ASSOCIATIONS | 61 |
11. | REFERENCES | 62 |
11.1. | Publications | 62 |
11.2. | Websites | 65 |
APPENDIX 1 | 67 | |
Summary of Notable Players | 67 | |
COMPANY PROFILES | 76 | |
Abercrombie and Kent Safaris (Pty) Ltd | 76 | |
African Eagle Cape Town Day Tours (Pty) Ltd | 78 | |
African Eagle of Southern African Territories (Pty) Ltd | 80 | |
African Impact Safari Operator CC | 82 | |
African Safari Collective (Pty) Ltd | 83 | |
Akilanga (Pty) Ltd | 85 | |
And Beyond South Africa (Pty) Ltd | 87 | |
ATC African Travel Concept (Pty) Ltd | 90 | |
Beachcomber Marketing (Pty) Ltd | 92 | |
Beekman Holidays (Pty) Ltd | 94 | |
Booking South Africa (Pty) Ltd | 95 | |
Club Leisure Group (Pty) Ltd | 97 | |
Club Travel SA (Pty) Ltd | 99 | |
Coega Development Corporation (Pty) Ltd | 101 | |
Compass Odyssey Travel CC | 106 | |
Computravel CC | 107 | |
Cullinan Holdings Ltd | 108 | |
Discover Africa Group (Pty) Ltd | 112 | |
Egoli Tours (Pty) Ltd | 113 | |
Embassy Travel (Pty) Ltd | 115 | |
ERM Tours (Pty) Ltd | 117 | |
Escape 4 Africa Travel CC | 119 | |
Flame of Africa (Pty) Ltd | 121 | |
Flight Centre Travel Group (Pty) Ltd | 123 | |
Flightsite (Pty) Ltd | 127 | |
FlyCastaway (Pty) Ltd | 129 | |
Flyinsafarico (Pty) Ltd | 130 | |
Giltedge Travel (Pty) Ltd | 131 | |
Global Travel Alliance (Pty) Ltd | 133 | |
Harvey World Travel Southern Africa (Pty) Ltd | 134 | |
Holiday Travel Group (Pty) Ltd | 137 | |
IGO Travel (Pty) Ltd | 139 | |
ILIOS Travel (Pty) Ltd | 141 | |
ITT Inspirations Travel and Tours (Pty) Ltd | 143 | |
June De Wet Trading Solutions CC | 145 | |
Karridene 112 CC | 146 | |
Ker and Downey Africa (Pty) Ltd | 147 | |
Lebo's Backpackers CC | 148 | |
MoAfrika Tours (Pty) Ltd | 149 | |
MORE Family Collection (Pty) Ltd | 151 | |
Mzanzi Bus Adventures (Pty) Ltd | 153 | |
New Frontiers Tours (Pty) Ltd | 154 | |
Nomad Adventure Tours and Holidays CC | 156 | |
Overseas Visitors Club (Pty) Ltd | 158 | |
Quadrel Travel Management (Pty) Ltd | 160 | |
Rakoma Travel (Pty) Ltd | 162 | |
Reed Park Trading (Pty) Ltd | 164 | |
Rennies Travel (Pty) Ltd | 166 | |
Rhino Africa Safaris (Pty) Ltd | 168 | |
Safari Online CC | 170 | |
Seeza Tourism Growth Network NPC | 171 | |
Siviwe Tours (Pty) Ltd | 172 | |
Soul Traveller Tourism SA (Pty) Ltd | 173 | |
Sure Travel (Pty) Ltd | 174 | |
Tourvest Holdings (Pty) Ltd | 177 | |
Trafalgar Tours (Pty) Ltd | 182 | |
Travel Vision (Pty) Ltd | 184 | |
Travelingcheapskates (Pty) Ltd | 186 | |
Travelstart Online Travel Operations (Pty) Ltd | 187 | |
Wilderness Safaris (Pty) Ltd | 189 | |
XL Travel (Pty) Ltd | 191 |