GEORGE NEWS - Feedback from George businessowners indicates that for most of them, the December 2024 holiday has not been a bumper season, however a good portion is satisfied and reports growth compared with 2023.

A survey done by Dennis Farrell of the Business Café indicates that 46% of businesses experienced a decrease in feet through their businesses, 44% a decrease in revenue/sales and 37% reported similar profitability. 

"Given the basis of the survey it appears that most of the participants did not experience a bumper economic season," said Farrell.

The survey asked participants regarding three aspects: feet through the business, profitability, and revenue and sales.

The results for George show the following:

• Feet through the businesses: 37% indicated an increase; 46% a decrease; 17% said it was similar to 2023.

• Profitability: 30% experienced an increase; 33% a decrease; 37% indicated similar profitability.

• Revenue and sales: 39% said they experienced an increase; 44% indicated a decrease; 17% said it was similar.

"A minority of businesses said the season saved their business because it made up for the preceding months of 2024. 

"It was also indicated that customers spent on necessities and not extras. There were also more competitors open than in the 2023 season," said Farrell.

Some businesses said their profitability decreased because they did not want to pass on their rising costs to customers. Overheads like municipal taxes, rental, and labour costs had increased dramatically. Red tape, compliance with "outdated rules and regulations", and roadworks preventing direct entrance to businesses were among the factors that impacted business activity.

One happy businessowner said that forward planning and better advertising had brought more people and returning customers.

Graph: Business Café

Mixed performance confirmed

George Tourism manager Joan Shaw confirmed that it was a mixed performance. "A survey of 18 restaurants revealed that 11 performed better than the previous year, with all Wilderness establishments reporting growth. In contrast, George restaurants faced challenges, citing more conservative customer spending, particularly on wine and liquor. Several new restaurants also opened in the George area in December."

She said activity and tour operators fared well overall, with 11 out of 14 reporting improved results.

"The Outeniqua Powervan saw an unprecedented demand, requiring additional trips to accommodate early bookings. The Wilderness section of the Garden Route National Park also had a standout season, with visitor numbers expected to surpass pre-pandemic levels.

"However, some operators observed tighter budgets among visitors, affecting additional revenue streams."

Click here for more on the municipality's feedback.

George Tourism Manager Joan Shaw

Season starts late for retail

George Business Chamber manager Irene Koegelenberg said retail businessowners reported that it was very quiet up until just before Christmas. "Then it suddenly exploded and became so busy that they could almost not keep up. Unlike previous years, businesses in transport and construction stayed open later, which explains the delayed rush. So the season started one week later, but concluded a week later. Markets reported lots of feet but actual spending did not always meet expectations."

George Business Chamber Manager Irene Koegelenberg

Mall beats inflation

Turnover grew at the Garden Route Mall. Manager Rion Olivier said their business turnover improved by 6% year on year, beating inflation.

"Business are generally satisfied, taking into consideration the macro and micro economy. The energy was great. Visits were fair with our foot count straight-lined compared with 2023, however the lovely weather always plays a role with regard to visits."

Olivier said the top five categories were travel, unisex wear, food speciality, and homeware and interior, as well as the cinema. "Men's wear and jewellery were unfortunately down."

Garden Route Mall Manager Rion Olivier

Kloppers experienced significant growth with a lot more feet, said Willem Klopper Jnr. "We are very satisfied. We wondered if the very hot weather would affect us negatively, but it didn't as many people came looking for cooling products. The fact that there was no load-shedding was a plus. Shoppers' upbeat mood positively impacted buying behaviour. It was a cheerful season, and it was great to be a part of it."

Dean Hahn, owner of the two Spur franchises and the local franchises of Panarotti's, Nando's and RocoMamas, said they had a "solid" season, but it was not as good as the previous year. "Most people were on the beach because of the excellent weather and there is also competition that is new to town. But we are happy with the results."

Willem Klopper Jnr

Town Lodge manager Shelley Joseph said they had a quieter season than in 2023.

"We had fewer room nights and were fully booked for only three days. We also experienced that where people booked for a family, they wanted to squeeze everyone into one room instead of booking separate rooms like before. We thought we might have done better because our rooms have been upgraded."

Shaw said occupancy rates from 11 December to 12 January averaged 71%, peaking at 88% on 28 December. From 12 January, occupancies tapered off, dropping to the 40%s. The average length of stay was 3,5 days (dropping by half a day from 2023).

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