While economists debate whether or not South Africa is heading towards another recession, the drop in the country’s GDP is already impacting the travel industry.
Mike Schussler, director of Economists.co.za, says South Africa is most likely heading towards a recession. “Mining, manufacturing and durable goods are all doing badly and I suspect that transport and tourism on the local side are also down slightly. Local tourists are under pressure and no longer going on holiday, or they’re going for shorter periods,” he says.
Jonathan Gerber, director of TAG, says mining is a massive part of the travel trade. “The strike and wage dispute will ultimately affect us all, not just the miners. I see a large crisis on the horizon – travel, which is the ultimate luxury, has to suffer. The miners get a cold, the travel industry gets pneumonia,” he says.
For more on this story and the full survey report, see TNW June 11.
