VOICED : Tourists profit from South African curren

Cape Town's appeal as a tourist destination is enhanced by the weak South African Rand, making it more affordable for foreign tourists. The Rand's depreciation, driven by US economic policies and local labor strikes, has led to increased tourist spending and foreign arrivals. While this benefits the tourism sector in the short term, it poses long-term challenges for local businesses due to rising input costs. The Rand's value loss raises concerns about potential inflation, although prices have not yet increased.

What has made Cape Town an increasingly popular destination for foreign tourists?

• The increase in local consumer prices

• The depreciation of the South African Rand

• The decrease in the number of foreign arrivals

• The strengthening of the South African Rand

What are some of the factors contributing to the depreciation of the South African Rand?

• Increased foreign investment

• U.S. policy changes and domestic labor strikes

• Rising local consumer prices

• Decreased global market share

How do exporters in the Cape Region view the impact of the weak Rand?

• As a means to stabilize the economy

• As a way to reduce input costs

• As a short-term benefit with long-term challenges

• As a long-term benefit for income

What is a potential consequence of the Rand losing 20% of its value against the dollar?

• Increased foreign investment

• Decreased inflation concerns

• Potential for rising inflation

• Stabilization of local consumer prices

Despite fears of inflation, what has not yet occurred in Cape Town?

• A reduction in foreign arrivals

• A decrease in tourist spending

• A rise in the value of the Rand

• An increase in local consumer prices