The outlook for outbound travel from the United States to South Africa in 2010 looks positive, despite the expected “hole” left by displaced traditional business caused by the World Cup.
This is according to captains of the US Tour Operator Association who are in South Africa this week on a ‘Presidents Cup” tour of the country’s best golfing experiences.
Speaking to South African suppliers at a trade workshop in Johannesburg, 12 leading CEOs of preeminent tour operators selling the destination, said interest has shifted from the traditional destinations of Europe and North America to more exotic destinations like South Africa.
“Advance bookings going into 2010 are very strong,” said John Lovell vp Vacation Dot Com. “They’re not at 2007 levels but we do expect moderate growth for luxury destinations like South Africa although yield will remain an issue for some time.”
The weak dollar and rising oil price, added Doug Todd, ceo Todd Travel Promotions had affected the psychology of Americans when it came to traveling in 2009, but that SA was still seen as a value-for-money destination.
The exchange rate is still very good for Americans, says David Mareck, CEO Ker & Downey. “And as long as the exchange rate stays at around R7 to the US$1 it should remain this way.”
Mareck cautioned South Africa to look at how its pricing compares with competitor destinations like East Africa. “South African product needs to look at the competition from other markets. There needs to be a variety of products at various levels to ensure that South Africa remains competitive from a pricing standpoint.”
“We have a very different consumer in the US now,” says Ed Kelly, president American Express Publishing. “There’s a great deal more focus on being resourceful and looking carefully at what they’re buying.”
Kelly says Americans are also looking for authentic experiences. “They want to be treated like a local; they want an experience that will change their life and they want to truly discover a destination.”
Tauck World Discovery’s Scott Supernaw agrees. “US travellers want to get involved and participate in tours with take-away value. They want to come back having learnt something.”
The trend in the US, say these operators, is towards ‘sightdoing’ rather than sightseeing.
Editor’s note: For further coverage on the USTOA’s views, see continued coverage on Tourism Update Online.
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