Weak rand makes SA ideal spot for tourists
June 20, 2008
By AUDREY D’ANGELO
Cape Town - The Tourism Investment Corporation (Tourvest) expected to do well as a result of the weaker rand, which made South Africa more attractive to incoming tourists, Tommy Edmond, the chief executive, said yesterday.
Forecasting that visitors would still come from overseas despite economic difficulties in the US and Europe, and the higher cost of long-haul flights, Edmond said most tourists had planned holidays in South Africa far in advance "and they expect the cost of a long-haul flight to be high".
"The strength of the euro against the rand will help to offset this for people from continental Europe, who will find it far cheaper to be here," said Edmond. "Most of our outbound retail travel business is corporate and this is still holding up well, although leisure travel that has not already been booked will be affected," he added.
Tourvest, whose holding firm, Imperial, wanted to dispose of it as a non-core business, was expected to be taken over by the Bidco group, led by the black-owned Guma package holidays company, for an offer price of R2.08 a share, and to be delisted on September 9.
The scheme meeting, at which shareholders will be asked to vote, is due to be held on July 7, with a court hearing to sanction it due to be held in the Witwatersrand high court on July 15 and the results released on Sens on July 17.
However, these dates may be accelerated if the last remaining condition precedent, the consent of the competition authorities, is obtained earlier.
Edmond said having a strong black economic empowerment partner would help the group.
"It will make a huge difference to us because we shall get government travel and foreign exchange business."
Tourvest's share price gained 4.1 percent to R2.03, while the sector added 0.43 percent.
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