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UNPACKING THE NTSF: NATIONAL TREASURY PRESENTS ON IMPORTANCE OF TOURISM

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UNPACKING THE NTSF: NATIONAL TREASURY PRESENTS ON IMPORTANCE OF TOURISM
The recent National Tourism Stakeholder Forum (NTSF) saw a number of pertinent industry issues being presented and discussed by various stakeholders. Continuing on from last week’s newsletter, we unpack these presentations. In this week’s edition we focus our attention to a presentation on South Africa’s Economic Outlook delivered by a senior Economist at National Treasury, which also included information and trends on factors such as Household and Consumer Confidence, Unemployment, and the Importance of Travel and Tourism for the economy. Key highlights from the presentation:

  • The economy returned to growth in Q2 of 2017 (+2.5%) following sluggish performance and unexpected contraction in Q1
  • The Rand remains susceptible to bouts of volatility and further worsening in sentiment induced by both domestic and global factors
  • The Trade, Catering and Accommodation sector mustered only mildly positive growth of 0.6% in Q2 compared to Q1
  • Consumer confidence remains rooted at multi-year lows, while households remain highly indebted despite declining debt-service costs
  • An increase in indirect and induced contributions highlights the fact that the Travel and Tourism sector has become more interlinked with other sectors. Currently, Tourism is linked to 12 industries in the SA economy. Also due to the sector’s multiplier effect, 1$m spend in Travel and Tourism generates $1.5m in GDP
  • Direct contribution of the Travel and Tourism sector was three times as large as that of the automotive manufacturing industry. Also, the sector’s direct GDP expanded by 185% between 1995 and 2014
  • Economic stagnation and cautions consumer spending is cited as key to decline in domestic tourism over the past two years.

Click here to view the full presentation

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