Following the busy summer the European travel and tourism industries experienced, there is speculation that the upcoming South African summer will also herald an influx of international arrivals. Hereβs what we do know.
A global perspective
According to the Mastercard Economics Institute Travel 2022 report, if flight bookings continue at their current pace it is estimated that 1.5 billion more passengers (globally) will fly in 2022 compared to 2021. It also highlights that both business and leisure travel have returned to pre-pandemic levels. Leisure travel took the lead in this regard, with flight bookings reaching 25% above pre-pandemic levels by April.
The factors that have been identified as contributing to this rapid bounce-back include a recovery in the labour market, some people having more disposable income (having not been able to spend much during the lockdowns and having paid off debts) and a reduction in commuting costs for many people as they continue to work from home (even if only for some days of the week). And then, of course, people simply want to travel after being confined for so long.
While most of the world has opened its borders, it is also worth noting that China β one of the worldβs biggest travel markets, and a strong source market for South Africa β is still closed to the outside world. Pre-pandemic, more than 100 000 Chinese tourists visited South Africa a year. There are signs that China may open up soon, with Hong Kong ending its mandatory hotel quarantine for inbound travellers late last month.
A South African context
International arrivals have been on the increase throughout 2022. Kruger Gate Hotel, an independent luxury hotel on the edge of the Kruger National Park and next to the popular Paul Kruger Gate, says the rise in international bookings has been pronounced. Anton Gillis, CEO of Kruger Gate Hotel, explains, βLast year some 90% of the business booked online was South African (domestic) compared to a 55% mix now as the international market starts returning slowly.β
βLast year some 90% of the business booked online was South African (domestic) compared to a 55% mix now as the international market starts returning slowly.β
According to Gillis, the hotelβs biggest markets (excluding South Africa) are Germany, the United Kingdom, the Netherlands, France and the US.
βItβs also interesting to note the lead times which have changed in the last year as the market has started recovering and confidence in booking longer ahead of time has returned. Our lead time for bookings has returned to around 60 days out (two to three months) compared to last year when we were looking at 30 odd days out,β he says, adding that another sign of returning market confidence has been a decrease in cancellation rates.
These findings support the data from flight search and booking site Cheapflights.co.za, which shows that the countries that are searching the most for flights to South Africa are the UK, Germany, US, France, and Austria. Of those, only Germany and the US show fewer searches than in 2019, with the rest showing at least double-digit growth.
Potential new markets
Laure Bornet, GM, KAYAK EMEA that manages Cheapflights.co.za, highlights some potential growth markets for the South African tourism sector when she says, βNew Zealand and Zimbabwe flight searches to South Africa for the second half of 2022 are up by around an astounding 222% and 205% respectively compared to the same period in 2019. Pakistan and Saudi Arabia are in the top five destinations that also show the highest growth in flight searches to SA – about 126% and 119% respectively. They are closely followed by Poland, with just over 100% increase in flight searches since the pandemic.β
Due to the growing demand, five new international routes have either opened or are set to open in the final quarter of 2022.
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Interestingly, travellers are also keen to explore more of South Africa, and not only the typical destinations. Bornet says, βA broad spectrum of South Africaβs destinations seems to be attracting global travellers. According to Cheapflightsβ hotel search data, along with Johannesburg, Cape Town and Durban, which are always favourite destinations, there is expanded interest in some smaller and unique places in the country.β
“According to Cheapflightsβ hotel search data, along with Johannesburg, Cape Town and Durban, which are always favourite destinations, there is expanded interest in some smaller and unique places in the country.β
This is an opportunity for these locations to make an impression and gain greater recognition as a tourist attraction.
What does this all mean?
In closing, despite the many challenges South Africa is grappling with (load shedding, water shedding and crime to name a few), the signs are promising that the upcoming summer season will see a healthy increase in international arrivals.
Gillis adds, βSouth Africa has so much to offer international travellers. As a country, we should be doing everything we can to ensure that they experience those things as safely and comfortably as possible. Itβs the only way the industry will keep growing, creating jobs, and contributing to the economy.β
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Cover image by Tommaso Pecchioli and article image by Brianna R., both on Unsplash
