• Payment gateway Peach Payments notes a massive increase in tourism-related sales over Black Friday and Cyber Monday.
• The largest purchase took place on Cyber Monday for R132 600 at a travel services company.
• This highlights that the local tourism and travel sectors are recovering after a harsh lockdown.

With both Black Friday and Cyber Monday behind us, local payment gateway Peach Payments has revealed that South Africans are looking to get out and about.

This as retail, leisure and entertainment, and travel sectors emerged as the big winners over the shopping weekend.

According to Peach Payments, sales in the leisure and entertainment sector grew by 81 percent compared to 2021 while sales in the travel and accommodation sector grew 49 percent. This growth is inline with growth we’ve seen across the country.

In September, Minister of Tourism, Lindiwe Sisulu revealed that in the first half of 2022, the number of domestic trips taken increased 114 percent compared to in 2021.

This increase makes sense given that in 2021, lockdown restrictions prevented travel for many. One of the largest transactions Peach Payments saw was for R100 828 at an online travel agent. On Cyber Monday the biggest transaction was R132 600, also at a travel services company.

Looking at other sectors, food and beverage sales increased 51 percent while retail overall grew 126 percent.

These are impressive figures but we do have to wonder how far spending is getting folks these days. Just last week the South African Reserve Bank increased the repurchase rate by 75 basis points to 7 percent. This was done to keep inflation in check according a report from EWN, but many wonder if this is enough to stave off a recession.

“Global growth is slowing sharply, with further slowing likely as more countries fall into recession. My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies,” World Bank Group president, David Malpass wrote in September. He argued that policymakers should boost production rather than reduce consumption to curb inflation.

Here in South Africa with an ailing power utility that’s easier said than done.

Fears of a recession aside, South African’s spent big this Black Friday and Cyber Monday and that trend will seemingly continue into the festive season.

“With the growth we’ve seen in many industries over this Black Friday and Cyber Monday, things are looking bright for a strong festive shopping season,” says Peach Payments’ head of marketing and SME growth, Joshua Shimkin.

Let’s just hope South Africans are spending responsibly this festive season and Janu-worry isn’t doomed to repeat itself.

[Image – CC 0 Pixabay]