select
|

Why improved tourism is positive for property

Two years ago, SA was gearing up to host the Soccer World Cup – and looking forward to a major economic injection from the thousands of tourists who flocked into the country to watch the games and support their favourite teams.

“But since then,” says Aida CEO Young Carr, “there has not been nearly as much said about tourism or its value to the country, even though hosting the World Cup undoubtedly helped SA to weather the effects of the worldwide financial crisis better than most.

“A thriving tourism industry is still, however, vital to all of us, and especially the real estate industry, as it is an important catalyst for the creation of new jobs and thus a means to help more South Africans realise their dream of owning a home.”

Responding to the release of the latest tourism statistics, he said it was thus very encouraging to see that both domestic tourism and the number of foreign visitors to South Africa appeared to be on the increase once more, following a decline during most of 2011.

The latest Department of Home Affairs figures show, for instance, that some 3,7m travellers moved in and out of SA during December – with more than 2,5m of these people being foreigners, mostly from other SADC countries, the UK, the US and Germany.

Meanwhile, the Western Cape Tourism Marketing Agency reported recently that the province’s tourism industry had been flourishing since December, and that the rise in domestic tourism was especially noticeable.

In addition, the latest results of the Tourism Business Index backed by the national Tourism Business Council (TBCSA) and FNB show a marked improvement in business performance for the last quarter of 2011. The index registered 87,3 in the quarter, up from 70,0 in the previous quarter and well ahead of the 80,7 expected by the industry. What is more, the expected index for the first quarter of this year is 82,2, despite the fact that these are usually the slowest months for the tourism industry in the aftermath of the festive season.

“TBCSA head Mmatsatsi Marobe recently appealed to private sector players in the industry to pay more attention to attracting domestic and SADC tourists,” notes Carr, “and we agree that given the current economic problems in Europe and other parts of the world, this is probably where the most potential for growth lies.

“And once again, that growth is vital in SA’s campaign to create employment. Tourism provides both the motivation and the means for many people to start their own businesses - including guesthouses, craft and curio shops, restaurants and specialist tour companies – and in due course to create jobs for others.

“It has certainly been a lifesaver for many small towns in the past few years and from a real estate point of view, we have seen that there is always an increase in home buying activity in areas where new jobs are being created through tourism.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      If you are looking to sell your home this year, Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, says that there are five crucial things to do before the ‘for sale’ sign goes up.
    • 01 Feb 2018
      February is the month of love and to celebrate we will be posting about all the things we love this month. Follow the #MyPropertyLoves hashtag to keep up with our favourite things.
    • 01 Feb 2018
      After saving up and months of searching for the right home, applying for a bond and patiently waiting for the keys to the front door, it is finally time to cross the threshold and move into your new home. Now what?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK