BALANCED BUDGET BUT PRESSURE AHEAD FOR CONSUMERS & BUSINESS
Pretoria, South Africa. “Finally, the message of travel and tourism as a key economic driver is filtering through Government speeches and plans” says Mmatšatši Ramawela, CEO of the Tourism Business Council of South Africa (TBCSA) responding to the 2017 Budget Speech by Minister of Finance, Pravin Gordhan.
“Although not yet regarded as an economic sector by the Department of Trade and Industry which is something we hope will change”, the Budget speech’s strong mention of travel and tourism is a major vote of confidence for the sector” Ramawela said.
In his Speech, delivered on 22nd February, Minister Gordhan made mention of Government’s plans to provide focused support on labour-intensive sectors including tourism-related services. He announced the allocation of an additional R494 million for tourism promotion as one of the short-term measures to boost investment. This is in addition to the 2016/17 budget allocation to the National Tourism Department of just over R2 billion. He further referred to local initiatives in the tourism and hospitality industry being key to economic progress, quoting a budget tip from Lisa Sheard of the Kruger Lowveld Tourism Association.
Within the constraints of the local and broader global economy, TBCSA agrees with the broad view of the business community that the Finance Minister did not have much room to maneuver but nonetheless delivered an overall balanced budget.
The additional highlights for business, from a travel and tourism perspective include:
- National Treasury’s decision to leave corporate taxes unchanged: whilst the Council is mindful of the ongoing debate about the need for corporate South Africa to demonstrate its commitment to the country’s economy by reinvesting their earnings, it is of the view that this measure will go a long way in helping struggling businesses to keep their doors open - thus helping the economy to grow and creating the much-needed jobs and maintaining existing ones;
- The Minister’s pronouncement on plans to strengthen financial management capacity in municipalities: TBCSA views this as an important focus area, considering that travel and tourism activity takes place in the towns, cities, townships and rural areas. In the Council’s view, the success of this initiative will not only benefit residents but business at large; Read more
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Tourism Business Council of South Africa (TBCSA) is the umbrella organisation for business in the travel and tourism industry. We are a non-profit, member-centric organisation representing the unified voice of business. We serve to unite and influence the diverse travel and tourism industry to contribute to a competitive, responsible and inclusive travel and tourism (and South African) economy.
For media enquiries contact:
Mr. Peter Amblianities
1. AHI – Afrikaanse Handelsinstituut
2. AASA – Airlines Association of Southern Africa
3. AAXO - Association of African Exhibition Organisers
4. ASATA – Association of Southern African Travel Agents
5. BARSA – Board of Airline Representatives of South Africa
6. EXSA – Exhibition& Event Association of Southern Africa
7. FEDHASA – Federated Hospitality Association of South Africa
8. NAA –SA - National Accommodation Association of South Africa
9. PHASA – Professional Hunters Association of South Africa
10. SAACI – Southern African Association for the Conference Industry
11. SABOA – Southern African Bus Operators’ Association
12. SATSA – Southern Africa Tourism Services Association
13. SAVRALA – Southern African Vehicle Rental Association
14. SAYTC - South African Youth Travel Confederation
Tel: (012) 664 0120
Travel and tourism trade associations affiliated to TBCSA: