Education and Tourism Correspondent

TOURISM Marketing SA (Tomsa) raked in a record R7,1m in tourism levy contributions last month a massive 72% increase over December and a solid 16% more compared with the corresponding period last year.

The boost in collections reflects a 15,7% year-on-year growth in December, allaying some of the fears that SA's muchvaunted tourism boom had come to a screeching halt.

These figures indicate that the tourism industry enjoyed robust growth in December and has managed to recoup some of the losses experienced in the second half of last year.

The tourism industry was hit hard by several market forces including the strong rand, a global slump in travel, availability of airline seats and noncompetitive pricing within the hotel and hospitality sectors.

Tanya Abrahamse, executive director of the Tourism Business Council of SA, said yesterday that the industry had managed to achieve a turnaround in profit.

The council estimated that the sector's business revenue, based on the levy contributions , amounted to about R1bn for December.

Abrahamse said that despite the much-bemoaned economic slowdown during the second half of last year, many tourism businesses in SA "recorded a healthy number of visitors during 2003" a trend confirmed by the percentage increase in the levy collection.

The council is an umbrella organisation representing the tourism business sector. It manages Tomsa, which it established in 1999, to assist with sustainable funding for South African Tourism's international marketing campaign. Last year, Tomsa collected R50m from levies.

The levy is drawn from about 70% of the tourism industry. It is collected voluntarily by members of the industry, including car-hire companies, accommodation providers and tour operators.

The standard practice is that tourism businesses add a fixed amount, in most cases 1%, to the consumer's account, which is then paid to Tomsa monthly.

"Because the levy is generally 1% of the turnover, we can, with some confidence, use Tomsa levy figures to give us a good indication of how the industry is performing," said Tomsa chairman Alan Louw.

He said additional capacity in the hotel industry, particularly in Cape Town with opening of the Arabella Sheraton and the expansion of City Lodge at the V&A Waterfront, added to positive growth recorded by industry.

Also, overseas tourist arrivals at Cape Town International reportedly increased about 6% over December, with domestic travel growing about 4%.

This was another key indicator of robust growth, said Abrahamse. "Although the rand is stronger against the other major currencies, SA continues to provide excellent value for international tourists," she said.

She highlighted the "diversity of experiences" offered in SA as the "key differentiator".

"In terms of growth, it is difficult to predict.

"But it is important to realise the greater the increase in the number of tourists to SA, the less likely we are to see the kind of growth experienced in the past," she warned.

"However, we can unequivocally state that SA is a world-class destination and through industry co-operation, we can expect improved growth figures this year."

Feb 11 2004 07:28:27:000AM Sharda Naidoo Business Day 1st Edition