Positive outlook for South Africa’s hospitality sector as business confidence rises

FNB has reported strong growth in South Africa’s tourism industry, with a 55% increase in turnover on its merchant services platform for the industry and a 17% year-on-year increase in transaction volumes. Hospitality and tour operators contributed 35% and 16%, respectively, to the overall increase in travel spending. Airline travel saw the greatest increase, with total spending rising from ZAR 4 billion ($283 million) to ZAR 8 billion so far in 2022. The hotel sector’s income also saw significant growth, with a 118.6% increase in September following a 59.5% increase in August. These positive trends are expected to continue during the festive season, with short stays and experiences, particularly along the coastal regions, predicted to be popular. The reopening of international travel is also expected to boost the industry. Business confidence in South Africa has also reached its highest average in four years.