WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2008-06-23 Time: 15:00:04 Posted By: Jan
Tourism in South Africa could be hard hit as the airline industry worldwide braces itself for the big hike in air fares predicted as a result of soaring fuel prices.
Fares could be set to rise by as much as 40 percent, according to a study conducted in Britain by the investment bank Morgan Stanley, and this could lead to a severe downturn in the airline industry.
Such a big hike would further hit the international tourism industry, which is already suffering badly because of the worldwide economic downturn.
The British researchers say the increase threatens to put holidays abroad out of the reach of thousands of families.
They say fuel surcharges have already added as much as ?872 (about R13 700) to the cost of a long-haul flight for a family of four.
British Airways in June announced the biggest fuel surcharge increase in its history, adding ?60 (about R942) to the cost of its long-distance return flights. Virgin and Air France have also announced higher fuel surcharges.
And things are likely get worse, the researchers say, as the oil price moves toward $140 (about R1 120) a barrel, and some analysts predict it could reach $200 soon.
As a result of oil prices the researchers slashed the earning forecasts for several European airlines, including British Airways and easyJet.
In South Africa tour operators report that business has suffered because of the economic downturn, but they are hopeful air fares will not be as badly affected as the British survey predicts.
South African Airways (SAA) said it had plans to increase capacity on a number of existing routes and to add some new ones in a bid to support growth.
SAA’s head of group corporate affairs, Robyn Chalmers, said: “There will be no astronomical increases in airfares for SAA passengers as a result of the rapidly rising oil price.
Balancing act
“SAA will continue to watch the market and adapt prices accordingly, but this is a balancing act, as SAA wishes to remain competitive and obviously does not want to discourage people from flying.
“The fuel levy was specifically introduced by all airlines to contend with the rising fuel price, and this levy is also adapted from time to time.”
Fuel levies have shot up, but this is only one of several factors that have caused a marked drop in tourism this year, said Durban’s Linda Pampallis, chief executive of Thompson Tours.
“I got two tickets to Europe for myself on Sunday,” she said. “I cashed in Voyager miles, so the tickets cost nothing, but I had to pay R7 000 in fuel taxes. This is probably triple what it was last year.”
But, said Pampallis, there were many factors other than the cost of air fares causing the slump in tourism. “There is an economic downturn and business is now probably half of what it was in 2007.”
She was, however, optimistic about the long-term prospects. “We’ve been through this before. I’ve been in the business for 35 years and have seen it all. It will come right again.”
Pampallis said some factors specific to southern Africa were also affecting tourism, such as the television coverage of xenophobic attacks and violence in Zimbabwe.
“This country is greatly loved, but people don’t want to put themselves at risk,” she said. “When they see burning bodies in the street, they don’t want to come here.”
She said it was a “great privilege” to sell South Africa.
“We have the most wonderful tourism here and people won’t stop coming. We will just have to live with the present situation and work round it.”
Her cautious optimism was shared by Amanda Hardy, communications manager of Flight Centre.
Hardy said there had been increases in fuel surcharges recently, but there was “no indication” of an increase of anywhere near 40 percent in air fares.
“We have not experienced a serious drop-off,” she said.