Although travel restrictions have eased toward the end-of-year holiday period, it is realistically going to take another two or three years before South Africa sees anything resembling pre-COVID visitor numbers and revenues, according to Lee-Anne Bac and Christelle Grohmann, directors of Advisory Services at consultancy BDO.
However, there are ways the travel and tourism sector can make the most of the opportunities created during high season as the sector slowly starts recovering.
Packaging value for money
The pandemic has devastated average consumer disposable income globally. While those who cannot afford to travel will stay at home, those who can will seek out value-for-money experiences that are easy on a cash-strapped wallet. This is an opportunity for regional tourism boards, travel service providers and industry members to offer discounted bundled packages across the tourism chain.
“We need more partnerships that incentivise multi-service provider buy-ups, for example accommodation packages that include preferential car-hire rates, access to nearby tourist attractions, as well as restaurant meals at special prices. This appeals to cost-conscious travellers by helping them budget their holiday spend. It also spreads revenue across the tourism industry and other secondary service sectors,” said Lee-Anne and Christelle.
Maintaining safety
It’s key that travellers and service providers follow (and enforce) COVID-19 protocols like wearing masks in public, maintaining social distancing and washing hands regularly to minimise the spread of the virus.
“Internationally, we’ve already seen how second-wave spreads often mean a return to more stringent lockdowns, which would only strangle the tourism sector further,” Lee-Anne cautioned.
A shift in seasonality
Locally, there is likely to be a seasonality shift or a shorter season in the current holidays. Many companies are expected to close earlier than usual due to a sluggish economy and decreased revenues. Some employees have been asked to use outstanding leave and to consider taking unpaid leave over the holiday season.
The revised school calendar will see public schools close on December 15 and reopen on January 27. While South Africans may have more time to travel, their holiday plans are likely to be more budget constrained than before. It’s unlikely that many people would extend their holidays into late January as a result, said Lee-Anne and Christelle.
More day trips and staycations
There should be more staycations this year as South Africans try to save money and/or avoid the potential risk of infections in crowded tourist hubs. This means more frequent day trips close to home and rediscovering nearby cultural sites, local attractions and nature destinations.
Due to budget, those who have the option will likely stay at their holiday homes and timeshare rather than spend money on other types of accommodation. Self-catering units, B&Bs and Airbnbs are also expected to see more footfall than larger hospitality establishments, which are generally busier during the holiday season.
“Similarly, less-known destinations on the outskirts of major tourist hubs that don’t normally have a tourist appeal are also likely to be the biggest winners, as long as they market themselves well. If travellers don’t know about you, they can’t visit you,” said Lee-Anne.
Shifting marketing strategies
Travel service providers that catered solely to international travellers have realised that targeting the local market can also be cash-generative. Many five-star game lodges and luxury experiences, such as The Blue Train and Rovos Rail, are marketing special packages to South Africans and neighbouring countries.
“While these present once-in-a-lifetime opportunities for locals, ultimately, they are expensive businesses to run and need foreign markets to return as quickly as possible,” added Christelle.
BDO has also seen a marked rise in the use of social media as a marketing channel. “It is quick, easy and affordable to set up and run a campaign. Affordable does not mean free, however, and travel providers will need to invest time and money to build a follower base,” said Lee-Anne.
She pointed out that while it might be too late to do this by December, creating an online community around a brand would always pay dividends. According to her, the use of social media influencers might also play a vital role in re-energising the local travel market.
