SOUTH AFRICA: 10044163 International Tourists Visited South Africa 2016

An analysis of Stats SA data shows that more than 10million foreign tourists arrived last year, up from 8.9million in 2015.

The 12% increase coincided with the implementation of a number of changes to the immigration regulations introduced in 2014, following recommendations by the inter-ministerial committee on immigration regulation.

Changes include the scrapping of the requirement that would be visitors apply f or visas in person at South African embassies and have their biometrics recorded.

Now foreigners can apply for visas remotely but are still required to produce an unabridged birth certificate for a minor entering the country with them.

Home Affairs spokesman Thabo Mokgola said 19 amendments to the regulations had been recommended by the inter-ministerial committee but only three had been implemented.

Mokgola said improved tourism numbers could be attributed to the expansion of front-line operations for ease of visa and permit applications within key travel hubs such as China, India, Nigeria and the United Arab Emirates.

The data showed that the relaxed regulations led to an increase in tourist arrivals. Considerable growth was recorded from the UK, the US and Nigeria.

The number of Chinese visitors almost doubled.

The Southern African Development Community provided the bulk of tourists at 7.3million.

Speaking at the tourism Indaba in Durban last week, President Jacob Zuma said tourism contributed 3.1% to GDP at R375-billion in 2015.

Tourism employed more than 700000 people.

Zuma also announced a new campaign, We Do Tourism, and that black entrepreneurs would be targeted to grow the industry.

Tourism now supports about 1.5million jobs and we want it to support more than 2.2million by 2026.

Our aim is to make South Africa one of the top 20 tourist destinations in the world.

The CEO of the Federated Hospitality Association of SA , Tshifhiwa Tshivhengwa, said the increase in international tourists "has to be looked at in the context" of the decrease in domestic tourism between 2013 and 2015 .

As much as international tourism is increasing, it must be coupled with domestic tourism to have any real effect.

At the moment it is only equalising because domestic tourism is down, Tshivhengwa said.

The weak rand and safety concerns in major cities around the world contributed to the increase in overseas visitors.

Terror attacks in major cities have also had an impact. People start to look at safe places to which to travel, and one of those is South Africa.

We are cheap, have brilliant infrastructure, nice hotels and good tour operators. And we look like a very safe destination.

South Africa welcomed 10044163 international tourists last year;

73% were from the SADC, 2% from other African countries and 25% from further afield;

71% arrived by road, 28% by air and 1% by sea;

Visitors spent an average of six days in this country;

97% of visitors were on holiday, 2% on business and 1% studying.

Meanwhile, the Karoo is now becoming a popular holiday spot for tourists — and those with a bit of cash to splash are investing in property as the demand for accommodation grows.

Pam Golding Properties and tour operators Karoo Connections say they have seen a growing interest in tourism and accommodation establishments in the area.

The Karoo has so many different options to offer — not only for tourists but also those wanting to find a relaxing getaway property which can also provide them with a regular income stream‚ said Wayne Rubidge‚ Pam Golding area principal in the Karoo.

In light of the economic constraints domestic tourism has flourished‚ with cost-conscious South Africans eager to visit easily accessible destinations without having to cross the borders or travel overseas.

This has made the acquisition of a tourism or accommodation establishment very attractive for those wanting to relocate permanently to country locations.

Rubidge found that many visitors either come to the Karoo having done their property searches via the Internet or go to a specific town with the intention of buying a property as an investment or holiday house.

The Bergkant Lodge in Prince Albert‚ with its luxurious rooms and lavish gardens‚ recently fetched R11.5-million. Rubidge said other guest establishments on the market ranged in price from R6.87-million to R9.3-million.

Due to the wide range of towns in the Karoo‚ people display diverse interests in properties‚ but the most popular are the properties with historic value built in the classic Karoo style or the larger Victorian style, he said.

David McNaughton‚ owner of Karoo Connections, said the towns of Graaff Reinet and Prince Albert were popular with visitors.

People are rediscovering the Karoo. At one time it used to be a place to travel through. Now we're finding that it's becoming an attractive option in its own right because of its open spaces‚ especially for family-oriented holidays‚ whether it's mountain biking or camping.

McNaughton said tourists — both domestic and foreign — appreciated the Karoo as a destination because it was "off the beaten track".

It's not the busy Garden Route. They want to break away and the Karoo offers them this.

He has seen an influx of German and Dutch tourists.There's a smattering of all other nationalities‚ Americans are also coming through strongly.

Tourism has encouraged the development of restaurants‚ arts and craft centres and craft beer breweries things considered to be trendy‚ that are bringing tourists here‚said McNaughton.

SOUTH AFRICA: Hotel Groups Explore Beyond South Africa

With the visa and immigration rules continuing to hurt the travel and leisure sector, you would expect investors to pause or pull back. But a quick look at shares in City Lodge Hotel Group tells a different story.

The stock, amid what FNB Securities says is a depressed local economic environment”, and with “several challenges facing the international tourism industry”, is north-bound.

It has gained 22% since January, making it the sector’s second-best performer behind Wilderness Holdings. Wilderness, which operates 45 safari camps and lodges in Botswana, Namibia, South Africa, Zambia and Zimbabwe, climbed by almost a third on the JSE.

However, even in the wake of relaxation rules announced by tourism minister Derek Hanekom last week, industry players remain cautious, and it could take time for SA to reclaim its appeal.

“There is no doubt that the visa regulatory framework has been damaging to tourism in South Africa,” asserted Sun International CEO Graeme Stephens in an email to finweek. In addition, he said “the number of direct flights has been reduced”.

This echoes the view of new Federated Hospitality Association of South Africa (Fedhasa) CEO, Tshifhiwa Tshivhengwa, who this month told the association’s Western Cape members that the likes of Australia and Thailand were “eating our lunch because we’re scoring own goals”. He said that SA already had its fair share of problems, adding, “now another hurdle has ?been added”.

Compounding the impact of these regulations – which, hitherto, required visitors from most countries to apply for visas in person and all minors entering or leaving the country to possess unabridged birth certificates – is a 7% year-on-year slump in overnight trips in the domestic market, to 47m, recorded by Stats SA.

That blip can be ascribed to what Colin Anthony, general manager at research firm Intellidex, terms “anaemic economic growth” that’s forcing consumers to spend less.

The industry’s losers

•Cullinan Holdings, Tsogo Sun and Sun International

Unlike their luckier peers, Cullinan Holdings, whose brands include Thompsons, Pentravel and Hylton Ross, and Tsogo Sun, owner of Montecasino and Gold Reef City, are losing ground. Its results, with profits falling, are not inspiring.

The same goes for Sun International – renowned for grande dame Sun City, among other assets – which tanked 4% the same day it unveiled its bid for unlisted rival Peermont, owner of money-spinning Emperors Palace, for R9.4bn. That was in March.

The ensuing seven months of uncertainty over whether the deal will be approved by the competition authorities (it was, with strict conditions), dragged the listed firm’s market cap to R10.3bn with the stock crashing 30% to trade at R95 at the time of writing.

That is markedly lower than the almost R140 it commanded pre-Peermont news. At a reduced P/E of 15, the stock is cheap but punters are playing wait-and-see as Sun International continues its engagement with the Competition Commission. Among other factors, Sun International’s boss links the stock’s performance to problems in the sector.

Meanwhile, the group’s South America strategy is long-term but “not rewarding it Closer to home, the planned Peermont deal has spurred an “overhang of the potential equity raise”, Stephens adds.

“The potential acquisition of Peermont is extremely significant and has major connotations for the group – including the possibility of a R5bn equity raise,” he said. “It is also completely uncertain as to whether the deal will be approved, be declined or be consummated in a form other than a full acquisition.” The deal is set to expire on 31 March 2016.

Sun International initially planned to issue 10.5m shares in a rights offer for R120 each, which represented a negligible discount (given the plunge to current levels, that scenario is academic now) and take on a further R575m in debt facility.

Stephens is disappointed that the investment community does not seem to be pricing what he feels is the upside of the relocation of Morula Casino to Pretoria’s eastern suburb of Menlyn.