South Africans are anticipated to spend greater than R226bn over the festive season, reducing by 11% this 12 months when in comparison with 2021. SA customers are budgeting a mean of R5,968 every for additional bills over this era, down by 6% from final 12 months.
That is in response to the fifth annual Summer season Spending survey from short-term lender Wonga. As a part of the survey, greater than 8,500 South Africans shared their journey plans for the vacations, the actions they’ll get pleasure from, gifting concepts and the way a lot they intend on spending. In addition they gave a sign of how they had been feeling in regards to the new 12 months.
“Our survey revealed that nearly a 3rd of individuals assume they’ll spend much less this festive season,” explains James Williams, head of promoting at Wonga. “The lower in predicted spend general is critical and the figures this 12 months replicate the impression of the rise in inflation, price of residing and better rates of interest.”
The analysis additionally confirmed that solely 37% of South Africans reported that they’re higher off than they had been this time final 12 months, down from 41% in 2021. Together with this, one other 38% stated they had been worse off than final 12 months, with the rest reporting that they had been in the identical place financially.
Information from the survey additionally indicated that 30% of South Africans depend on an extra supply of revenue, with over 46% reporting that they’ve a facet hustle.
Food and drinks make up chunk of bills
Just like final 12 months, the analysis revealed that meals and drinks will account for over 35% of individuals’s festive season spend. It’s nevertheless notable that the common price of R2,235 per particular person over this era is up from R1,984 per particular person in 2021. That is most probably a direct impression of the dramatic enhance in meals costs within the nation.
That is adopted by transport, which makes up roughly 17% of festive budgets, with South Africans spending a mean of R1,171 every to journey to their vacation locations.
To deal with the additional expenditure over the December interval, the vast majority of individuals surveyed (39%) plan to make use of their financial savings, relatively than draw from their end-of year-bonuses or depend on stokvels. Some plan on taking out a short-term mortgage, and others will use their bank cards to get them by means of the festive season.
Many can not afford to journey this 12 months
As many as 78% of South Africans plan to remain at residence this summer time, with 47% citing affordability as one of many main elements impacting their journey plans. Based on the analysis, 23% of individuals say this is because of having to work over the vacations.
“The sharp enhance in the price of gas has little doubt affected festive season journey plans this 12 months,” says Williams. “Extra individuals are telling us that they’ll keep at residence to get pleasure from their vacation break attributable to affordability causes.”
Of these leaving residence for the vacations, 27% can be travelling to or inside Gauteng, which has emerged for the primary time as the most well-liked vacation vacation spot. Based on the analysis, this can be as a result of individuals are selecting to journey inside their provinces.
“Curiously, this 12 months we see a shift within the locations that folks have chosen to journey to, with the Western Cape coming in second at 18%,” shares Williams. “KwaZulu-Natal, which has come out tops for 4 years working, is down to 3rd place with simply 16% of these surveyed deliberate to journey there. This can be largely attributable to a few of its seashores being closed this 12 months.”
The bulk (50%) can be travelling by automobile, which is down by 10 share factors from 2021. A lot of individuals will use a taxi and only a few will journey by airplane.
“There has additionally understandably been a lower in individuals travelling overseas,” reviews Williams. “Simply 2% of individuals plan to journey outdoors of South Africa this 12 months, in comparison with 5% in 2019, which can be attributed to the steep rise in airfares.”
On-line buying continues to develop
The vast majority of South Africans (77%) can be doing most of their festive buying in retailer this 12 months, up from 70% in 2021 and 68% in 2020. Brick and mortar gross sales are definitely on the rise once more, with extra individuals desirous to enterprise out to their native malls to benefit from the festive cheer.
“Regardless of this, on-line buying has confirmed to be on the rise, with some combining it with a go to to the mall. The e-commerce pattern has grown from simply 11% in 2018 to nearly 26% this 12 months,” notes Williams. “This additionally exceeds the variety of individuals (21%) buying from residence in 2020 in the course of the pandemic.”
Fewer individuals plan on shopping for presents this festive season, and of those that can be gifting, 72% intend to spoil their household. Curiously, a big share plan on shopping for themselves a present. On the prime of individuals’s present lists are cash and present vouchers, which is far the identical as final 12 months.
The rest of respondents intend to make their very own presents, or to buy presents from native craft markets.
Optimism for coming 12 months
South Africans’ favorite technique to rejoice the festive season is by getting along with household and mates (77%). The most well-liked method for greater than half of the respondents is to spend their summer time vacation time sitting round a braai.
For these spending their holidays on the coast this season, time on the seaside is excessive on their checklist. Many have indicated that they’ll eat out at eating places, or attend non secular providers, observing non secular traditions.
“This 12 months has been a considerably tumultuous one for a lot of households, and as end result they’re much less inclined to spend their cash,” says Williams. “It’s nevertheless encouraging that greater than half of South Africans say they’re optimistic or excited for the 12 months that lies forward.”