Belt-tightening, even on food, for 2023 festive season

Fewer South Africans are travelling this festive season, and even the budget for food and beverages over the holidays will be trimmed.

This is according to a survey of 12,000 people by short-term lender Wonga, for its sixth annual Summer Spending Survey.

There is a 4% decrease year on year in predicted average festive spend, coming in at R5,707 per person compared with last year. This is the second year of festive spend shrinkage and is down by R619 per person from 2021.

Food and beverages will account for more than 33% of people’s festive season spend, with an average spend of R1,907 per person versus R2,235 in 2022.

“This is a clear indication of the growing cost-of-living crisis, with households needing to spread their budgets to pay for essentials and cover debt,” the report states.

Gifting will make up only 16% of the festive budget and of that, money (43%), shopping vouchers — including for groceries — and clothing (12%) are the most popular.

People are planning to spend on family (74%), themselves (21%), friends (15%), a Secret Santa gift (5%) and charities (3%).

Seventeen percent do not intend to buy any gifts.

Only 21% of the respondents will be travelling over the festive period, the lowest proportion since the survey was first run in 2018.

Travel abroad is affected by the level of the rand against other currencies, with less than 2% of respondents indicating they plan to travel outside the country this year. This is down from 5% in 2019 and 4% in 2021.

Locally, Gauteng comes in as the most popular festive season destination for the second year, with 27% respondents travelling to or within the province. This is followed by 18% saying they will spend their holidays in the Western Cape and 16% in KwaZulu-Natal.

A braai at home celebrating with family and friends is the most popular way South Africans will be celebrating the festive period. Only 16% will be eating out at restaurants and cafes.

There is less reliance on savings to cope with the festive season.

Only 37% of people will use their savings to see themselves through the festive season (40% in 2022). The growing reliance on credit cards and loans to fund festive expenses indicates the impact of inflation on consumers’ pockets, according to the report.

TimesLIVE