SA Tourism and Hospitality Sector Show Positive Signs
The latest report from Statistics SA shows that the number of foreign arrivals into the country increased by 11.4% y/y to 1.56mn in January, with 1.441mn of these arrivals being classified as foreign visitors (up 11.1% y/y). Of the total number of foreign visitors, some 1,012,641 were classified as tourists or overnight visitors, increasing by 15.4% y/y in January. A further analysis of the data showed that foreign visitors from non-African destinations (overseas) increased by 16.2% y/y to 214,903 in January. The recent data shows a fairly robust recovery in inbound tourist arrivals following the slump in early 2015. The recovery, not unexpectedly, has likely been driven by the sharp depreciation of the currency in recent months as well as the relaxation of former strict visa rules.
How stressed are South African households at present?
Despite the poor economic backdrop and the recent increase in interest rates, South African households generally still appear to be in reasonably healthy shape, particularly middle to high-income households. Elevated wage and salary growth and waning demand for credit have helped keep nominal growth in disposable incomes above the growth in household indebtedness since the last recession in 2008/9.