The Tourism Business Council of South Africa’s latest quarterly Tourism Business Index (“TBI”), report, produced and published in conjunction with partner Grant Thornton, shows an overall improvement in business performance in Q3, buoyed by a positive showing in the accommodation sector.
TBCSA represents businesses operating in South Africa’s travel and tourism industry, whose total contribution to the country’s GDP in 2015 stood at R375bn or 9.4%. In the same period, the industry’s total contribution to employment, including jobs directly supported by the industry was 9.9% of total employment or 1,554,000 jobs – this is expected to rise to 1,557,000 jobs this year.
The latest Q3 TBI report shows a slight uptick in the industry’s overall business performance, buoyed by positive results in the accommodation sector. However, the index score is still somewhat below ‘normal’ levels of acceptable performance.
‘Normal’ is calibrated to an index of 100 and results higher than 100 are an indication of better than normal performance (and vice versa). In Q3 the industry recorded an overall index score of 92.6 – achieving an index score which is below normal performance levels but was better than the forecast score of 84.7. The index score achieved in this quarter is also an improvement from an index score of 78.9 that was achieved in Q2 2016.
TBI comprises two sub-indices namely: accommodation and ‘other tourism businesses’ and the positive results achieved in this quarter are largely thanks to the positive performance score of 109 recorded by the accommodation sub-index, against the anticipated score of 105. The ‘other tourism businesses’ sub-index (all other tourism businesses excluding accommodation) recorded lower than normal business performance, recording an index score of 80 in this quarter