Share code: TRT
ISIN No : ZAE 000012472
Johannesburg - Wednesday January 23, 2002
Despite the problems caused by the events of September 11, travel and
tourism group, The Tourism Investment Corporation Limited (Tourvest) is
sharing in the benefits of South Africa's newfound popularity as a cost
effective and safe destination.
Commenting on the impact of the season on Tourvest's operations, chief
executive Carol Scott said that inbound tourism was excellent. "A
significant number of tour operators are switching their programmes from
other destinations to South Africa and certain operators are considering
charter programmes for the first time. We have received very positive
feedback from the operators regarding future growth and have had many
enquiries for quotations for large numbers of passengers for both 2003 and
2004."
Ms Scott said that the USA and Asian markets were significantly affected by
the events of September 11, which resulted in passenger volumes remaining
static for the six months from July to December. "In spite of this decline,
margins and the overall performance of the inbound division improved.
Confirmed volumes for the next six months are heartening and all being well,
this division should finish the year on a good note."
Following the terror attacks certain companies put an embargo on travelling
overseas for three months which caused a decline in outbound passengers, but
Ms Scott reports that the domestic corporate market is showing signs of
improvement. In the past few moths there has been a substantial drop in the
number of outbound leisure passengers which can be attributed to both
September 11 as well as the depreciation of the Rand.
Ms Scott said that it is vital that South Africa extends the tourism season
beyond its current five months, as any marked increase in tourist volumes
will be impacted by the availability of airline seats and accommodation.
"As a country we need to make a concerted and tourism-wide effort to
substantially improve service standards if we want to entrench South
Africa's position as a high quality, affordable destination."
Tourvest's merchandise, duty free, outbound and financial services division
which includes American Express Foreign Exchange is performing well.
"The only division under pressure at the moment is the outbound division but
we are addressing this and are gaining new accounts through more aggressive
marketing and service."
According to Ms Scott, the European market, particularly the British market,
will grow substantially. However, the market with the greatest potential is
the Chinese market, since the Chinese government has awarded South Africa
preferred destination status. "Although we anticipate the main benefits of
this will be felt in the latter part of 2002, we are already experiencing
large increases in numbers from China and other parts of Asia over the
previous year."
Ms Scott concluded that potential exists to grow revenues from all of
Tourvest's businesses, particularly its retail and merchandising division
which secures a large portion of its business from the international
tourist. There is also potential revenue growth in both inbound and foreign
exchange. Tourvest will continue to seek new acquisitions that it could
logically and easily integrate into its fold.
The Tourvest interim results for the six months to December 31 will be
released towards the end of February.
Ends
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