Visa card spending still up post 2010

Research shows that spending continues in the three weeks after the final and is up 55% over 2009 levels with 49 000 Visa transactions a day, on average, from the start of June until the end of July.

Overall, the South African economy saw a boost in foreign visitor spending on Visa cards during the lead-up to and during the 2010 FIFA World Cup, according to cardholder spending data from Visa Inc.

During the period leading up to the kickoff of the FIFA World Cup and the end of July (Tuesday, 1 June through Saturday, 31 July), spending by international visitors in South Africa on Visa-branded payment cards exceeded US$426.2 million (R3.1 billion). This is an increase of 55% or US$150 million (R1.1 billion) from US$276 million (R2 billion) during the same period in 2009. The number of transactions from 1 June through 31 July was 3 million (49 000 per day on average), up 58% from approximately 1.9 million (31 000 a day on average) during the same 61 days in 2009.

Visa spending data indicates

• Spending during the period of the 2010 FIFA World Cup (11 June - 11 July) was 82% higher than in 2009 ($258 million vs. $142 million),
  
• The United Kingdom (19%), followed by the United States (18%), Australia (4%), Brazil (3.7%) and France (3.4%) have been the strongest contributors to visitor spending to date. These five countries alone accounted for 49% of spending.
  
• Over 90% of spending was in typical leisure and business travel categories - accommodation, restaurants, retail, auto rental and air travel.
  
• The biggest increases among the top 25 countries (ranked by spending) were from Mexico (3,300%), Argentina (1,600%) and Brazil (570%).
  
• The biggest spenders from the African continent were Mozambique (US$12.4 million or R91 million), Botswana (US$12 million or R90.8 million) and Angola (US$9.3 million or R68 million).

"While the tournament came to an end on the 11th July, spending continued well after the final match as visitors extended their stays to explore and experience South Africa" said Charles Niehaus, general manager, Visa Sub-Saharan Africa.

"While Visa saw a total increase in visitor spending during the FIFA World Cup period of 55%, the direct economic benefit to date in 2010 has been significant and the spending on Visa cards by foreigners confirms the immediate economic benefits of hosting major international events", Niehaus said.

Table 1: Total spending in the three phases of the 2010 FIFA World Cup as compared to spending during the same dates in 2008 and 2009

Table 2: Top Contributors to Visitor Spending in South Africa from 1 June 2010 to 31 July 2010, as Measured by Spending on Visa-Branded Payment Cards (US$1 = R7.5)

Visa provides what is claimed to be the most widely accepted payment card in the world, meeting the needs of mobile consumers reaching for credit, debit and prepaid cards wherever and whenever they travel. According to the 2010 South Africa Tourism Outlook report recently released by Visa Inc., international travellers using their Visa payment cards spent US$566 million (R4.1 billion) during the first quarter of 2010 (January to March), an increase of 34% on the same period in 2009.

Visa is one of six global FIFA partners with exclusive global category rights through 2014, and was the exclusive card for the 2010 FIFA World Cup. In recognition of Visa's sponsorship of the 2010 FIFA World Cup South Africa, Visa credit, debit and prepaid cards were the only payment cards accepted, along with cash, at all FIFA stadiums and the Onsite Stadium Merchandise Booths.

For more information go to www.corporate.visa.com.