Downgrades, travel and tourism

Breaking news from the economic world

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Capital outflows likely if SA downgraded

The Reserve Bank says a further rating downgrade of South Africa could lead to capital outflows. Releasing the Financial Stability Review on Tuesday 3 May 2016, the central bank said for more than a year credit rating agencies have been concerned about South Africa’s rating.

 “The impact of a further ratings downgrade on the South African economy and financial system could manifest in the form of capital outflows and potential spill overs to rand-denominated South African government debt,” said the Reserve Bank.

The review - which aims to identify and analyse potential risks to financial system stability - said the persistent weak economic fundamentals, the current account deficit, budget deficit and other structural constraints led to a downgrade in the economic outlook for the country to negative.

“Rating agencies will closely monitor other factors, including economic growth,” said the bank.

SA, Kenya ease travel regulations

South Africa and Kenya have announced measures that will make travelling between the two countries easier. Home Affairs Minister Malusi Gigaba is in Kenya where he met with Joseph Nkaissery, Kenya’s Minister of Interior and Co-ordination of National Government.

The two Ministers held a meeting where a number of steps were agreed upon to make travelling between the two countries smoother, including the Visa exemption for holders of diplomatic and official passports, the issuing of three-year multiple entry visas for frequent travellers and 10-year multiple entry visas for frequent business travellers and academics.

R110m to promote domestic tourism

Tourism Minister Derek Hanekom says that R110-million has been set aside to promote domestic tourism. The Minister said this when he tabled the department’s Budget Vote in the National Assembly on Tuesday 3 May 2016.

“SA Tourism has been allocated R110 million to promote domestic tourism this year. Amongst several other initiatives, a series of television commercials have been produced telling the stories of South Africans travelling for the first time and how much it means to them. This will inspire others to do the same,” he said.

Minister Hanekom said the Association of Southern African Travel Agencies and SA Tourism are forging a partnership to extend corporate travel into leisure.

The Minister stressed the importance of promoting South Africa as the most sought after destination, protecting tourism’s most precious assets.

“Our establishments have won many global awards over the years. These awards show that our efforts to make tourism environmentally, economically and socially sustainable have made us world leaders in this field.

“The potential for this sector is endless. We must ensure tourism creates income and jobs. Indeed, it accounts for about 700 000 direct jobs.” – www.SAnews.gov.za

 

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