TBI REVEALS WHAT NOT TO LOOK FORWARD TO IN THE REMAINDER OF 2017 / IMPACT OF FISCAL INSTABILITY & DROUGHT ON BUSINESSES
In this week’s analysis of the latest Tourism Business Index, we take a snapshot of what negative contributing factors to tourism business performance we can expect in the remainder of 2017. We also share respondent’s answers when asked what impact the fiscal uncertainty, credit downgrade and drought in parts of the country had on their business in the first half of 2017:
- 47% of respondents in the Accommodation segment expect that Cost of Inputs will have the most negative impact on business performance for the remainder of 2017. This is followed by Cost of Labour (35% of segment respondents) and Insufficient Domestic Business Demand (27%).
- For the Other Tourism Businesses segment, 56% of respondents cited Insufficient Overseas Leisure Demand will be the biggest negative contributing factor to business performance for the remainder of 2017. This is followed by Insufficient Domestic Leisure Demand (54%) and Cost of Inputs at 48%.
Respondents were asked what the current fiscal uncertainty and credit downgrade has had on their business in the first half of 2017. Their responses included:
- 20% of respondents cited a significantly negative impact
- 46% cited a negative impact
- 7% cited somewhat of a negative impact
- 25% cited no / neutral impact
- 2% cited a positive impact
Respondents were also asked what impact, if any, has the continued drought in parts of South Africa had on their business in the first half of 2017. Their responses included:
- 10% of respondents cited a significantly negative impact
- 26% cited a negative impact
- 2% cited somewhat of a negative impact
- 62% cited no / neutral impact
Click here to download your copy of the TBI 2017 Half-Year Review & Outlook Report