Southern Sun said yesterday that corporate and leisure travel demand has rebounded post the May 29 election and subsequent consummation of the government of national unity (GNU), although government activity was still lagging behind.
Formerly Tsogo Hotels, Southern Sun has previously said leisure travellers were more resilient to economic headwinds such as high inflation and elevated interest rates. However, like most South African businesses, the company was somewhat affected by the uncertainty that dogged the pre-election season.
There was a slow-down in travel and accommodation demand from the corporate, government and leisure segments in the lead up to the national elections in May 2024, said Southern Sun in a trading update yesterday.
Although the demand for corporate and leisure travel had returned after the elections, the government segment has been slower to normalise. The company, however, anticipates recovery from the category to entrench in the second half year period to March 2025.
It is also banking on recent announcements by the Department of Home Affairs regarding simplification of South Africas work and remote working visa processes. The company has described this move as encouraging development for the South African tourism industry.
