Tourism drop hits Tourvest

Tina Milton

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The strong rand and a drop in German traffic have hit the South African group's inflight sales

Tough trading conditions and a drop in tourism levels have hit South African company Tourvest. Sales volumes in its inflight duty-free business are holding steady but revenues in rand terms are down, according to CEO Tommy Edmond.

Financial director Ian Hay and Edmond cited a drop in the disposable income of tourists due to the stronger rand, and a fall in the level of German tourists as the root of the problem. Although the number of visitors from the Middle East and China have risen they have not compensated for a 10% drop in German arrivals.

Tourvest issued a trading statement earlier this month indicating company earnings a share for the six months to December 25 this year were likely to be at least 20% higher than for the same period last year. But the expected rise is attributed to tax concessions rather than improved market conditions.