SA's festive tourism, hospitality dealt a blow by online gambling: FEDHASA

The Federated Hospitality Association of South Africa (FEDHASA) has expressed disappointment over the tourism sector’s festive performance.

It said while hotspots like Cape Town performed well, mid-sector tourism peaked later than usual.

The association’s national chairperson, Brett Tungay, said the country’s middle class is under financial strain.

He added that while South Africa is a popular international tourist destination, festive spending is still driven mostly by domestic tourism.

“At the end of the day, yeah, going away on a weekend or going out for a meal, it's a luxury spend. And if you don't have that extra spare cash, then you hold back.”

Tungay noted that much of consumer recreational spending is being channelled to online gambling.

He also mentioned that the restaurant sector has also suffered from the rerouting of funds for gambling.

“The effect of online gaming in terms of that discretionary spend, which would have gone to having a weekend away, is now getting spent on online gambling. It's many billions that are now being spent, and that's all discretionary income.”