Tourism sector is recovering, but inflation a cause for concern

The latest accommodation figures have shown that the tourism industry is on the rebound, but the increase in inflation and fuel prices could negatively affect recovery.

According to the latest figures from Stats SA, total income for tourist accommodation increased by 53.4 % in April 2022, when compared to April 2021.

On the current trajectory, there is a possibility that some companies will reach full recovery towards the end of the year compared to 2019, according to the Tourism Business Council of South Africa (TBCSA) chief executive, Tshifhiwa Tshivhengwa.

The TBCSA however said that incomes were significantly reduced during April, which could have been a result of the floods that devastated KwaZulu-Natal.

But rising inflation and the liquidation of Comair are causing further disruption to recovery, where rising fuel costs could negate the recovery.

‘The increase in inflation and petrol price will impact domestic and international travel because prices might be impacted. The petrol, food and electricity prices have a direct impact on pricing. The level of the effect is yet to be measured, but it will be there,’ Tshivhengwa told News24.

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