Ruan’s Budget Speech

The recent Budget Speech has given us plenty to consider when it comes to the travel industry, from economic forecasts to potential tax changes, the budget directly impacts travel demand, pricing, and operational costs.

 We break down the key takeaways from the speech and what they mean for us as travel specialists, whether it’s updates on VAT, fuel levies, or tourism incentives, the below will help you navigate the road ahead – please see 3x segments focussing on: 1) the relation between the Budget Speech and demand for travel, 2) other impacts on the industry as well as a 3) general and wholistic overview of the 2025/26 Budget.

Consumer confidence and demand for travel and impact of the Budget Speech

 In our industry consumer confidence is absolutely critical – demand for travel (especially outbound) are directly linked to consumer confidence – the Budget Speech has a direct impact on consumer confidence, the main factors would typically be the following:

 Economic Growth – the current outlook can be summed up as “cautious optimism” which could lead consumers to feel more secure about their financial future and are more likely to book international trips, there’s also a fair amount of uncertainty which naturally results in people cutting back on non-essential expenses.

 Inflation & Cost of Living Adjustments – low to modest inflation has increased disposable income, making outbound travel more affordable, continued measures to control inflation and stabilize prices, will increase consumer confidence in planning trips abroad.

 Exchange Rate Fluctuations – ZAR currently very sensitive due to both local economic policies as well as global events, a strong local currency naturally makes outbound travel cheaper, encouraging more international trips.

 Taxation & Travel-Related Costs – the General Fuel Levy and Road Accident Fund Levy remain unchanged, providing some relief to transportation costs. However, a carbon fuel levy increase of 3 cents per liter is scheduled for April 2025, which may have a marginal impact on travel expenses.  ​ The budget outlines a VAT increase of half a percentage point in 2025/26, with a further half-point rise in 2026/27, bringing the rate to 16%, these increments could result in higher costs for travel-related services, potentially affecting consumer spending in the tourism sector.

 Interest Rate Adjustments – lower interest rates mean lower loan and credit card costs, people may be more willing to spend on international travel using credit.

Budget Speech – other direct impacts on the Travel Industry (mostly inbound):

Infrastructure Investment – The government has committed over R1 trillion to public infrastructure over the next three years, with R402 billion earmarked specifically for transport and logistics. This includes substantial upgrades to roads, rail networks, and ports, aiming to enhance connectivity and efficiency within the travel sector.

Public-Private Partnerships (PPPs) – New regulations effective 01 June 2025, are designed to streamline PPPs, these regulations aim to reduce procedural complexities, encourage private sector participation, and improve infrastructure delivery. Such collaborations are expected to modernize transport services, benefiting both domestic and international travellers.

Air Access Strategy – Continued focus to attract more air services, aims to increase direct flights to and from the country, enhancing accessibility for international tourists and promoting growth in the sector, measures are expected to enhance infrastructure, streamline travel processes, and promote South Africa as a prime tourist destination, thereby positively impacting the travel industry.

Budget Speech – general and broader overview of the highlights:

In a nutshell:

  • Significant emphasis on 1) increasing revenue (taxes to the state) mainly by means of increasing VAT, 2) substantial investment in education, healthcare and infrastructure as well as 3) managing national debt responsibly.
  • General consensus is that Joe Public’s, especially the middle-class, dissatisfaction with the budget in general evolves around the VAT increase as well as the failure to adjust the personal income tax brackets (both affecting the poor and middle class and directly linked to erosion of purchase power).

1) Revenue (taxes / inflow to the state) summary:

  • Personal Income Tax – makes up more than 40% of the total revenue
    • Rebates remain unchanged
    • Tax brackets remain unchanged
      • Not adjusted for inflation, effectively increasing the tax burden on individuals
    • VAT – makes up more than 25% of the total revenue
      • Increase (proposed – subject to approved from Parliament – to fund growing spend budget)
        • 01 May 2025 = +0.5% (to 15.5%);  01 April 2026 = +0.5% (to 16.0%)
      • Company Tax – makes up roughly 20% of the total revenue
        • Tax rate to remain at 27%
      • Excise Duties
        • Increase higher than inflation
          • Alcohol = +6.75%
          • Cigarettes = +4.75%
        • Fuel Levy & Road Accident Levy
          • These remain unchanged

2) Government Spending (outflows) summary:

  • Total budget 2.59 trillion
    • Education = 509 billion (priority and 6% higher than previous budget)
    • Healthcare = 299 billion
    • Social Grants = 422 billion
      • Old Age Grant = Increase by R130 per month
      • Disability Grants = Increase by R130 per month
      • Child Support Grant = Increase by R30 per month
      • Foster Care Grant = Increase by R70 per month
      • “COVID” Social Relief of Distress Grant = extended by a year to end in March’26 (R350 per month)
    • Infrastructure = over 1 trillion (next 3 years)
      • Transport & Logistics (Roads & Railway) = 402 billion
      • Energy (Electricity shortages & renewable energy projects) = 219 billion
      • Water & Sanitation (Dams & water supply systems) = 156 billion
    • Economic Initiatives
      • Electric Vehicles = 1 billion (support local production)
      • Job Creation = 24 billion (initiatives to create jobs especially in agriculture)
    • Eskom Debt Relief
      • Reduced by 20 billion (to 50 billion)

3) Debt and interest / financing costs summary:

  • Interest at a staggering 425 billion
    • Limits ability to invest in infrastructure & job creation initiatives
  • Debt expecting to peak at 76.2% of total GDP during 2025/26

The eHolidays team turned up the heat with an epic kitchen cook-off!

From Left – Bronosha (temp), Maree, Amy, Nadia, Yusra, Shelley (back), Alyssa, Anthonia, Mumtaz (back), Quanitah & Robyn

  • Two eHolidays ladies have buns in the oven—one pink, one blue, both baking to perfection!
Mumtaz (left) and Quanitah (right)
  • Please join us in welcoming Anthonia Scott to the eHolidays team!
Anthonia (left) and Robyn (right)

Travelport Award

eTravel’s visits around the Country with ITCs

Updates from Leopard’s Bend Bush Lodge

From Left – Mariska (Lodge Manageress), Darryn (Section Ranger), Kellé (Guide & Lodge administrator)

Welcome to Mariska, Darryn & Kellé

We would like to welcome Mariska, our new lodge manageress who joined the team in November 2024.

Darryn & Kellé joined us in mid-March. Darryn will be the Section Ranger for Leopard’s Bend and look after the three properties which Garth owns in terms of road and dam maintenance, bush clearing, conservation projects etc. and Kellé has filled the position as the Guide and Lodge administrator.

All three have years of experience in the lodging and hospitality industry, as well as conservation, and bring a wealth of knowledge with them.

Leopard’s Bend now All Inclusive

As a reminder the following drinks are now included in the rates.
Guests can enjoy house wine, local beers, soft drinks and water as part of their package.

In addition our “high tea” offering has changed to a “light lunch” which is served under the shade of the beautiful Jackalberry tree or around the swimming pool.

Special offers

Don’t miss out and make use of these special offers.
Valid for travel 01 March to 30 April 2025: Stay 3 Pay 2
Valid for travel 01 May to 30 June 2025: 20% Discount

Contact bookings@leopardsbend.com for more information and availability

New additions to the wildlife family doing well

The 2 cheetah cubs which were born in September are growing by the day.

They will be relocated to a bigger enclosure in due course, where they will learn to hunt and fend for themselves with the help of their mom. 

Another set of happy guests leaving for an afternoon safari on the Blue Canyon Private Game Reserve