Locals predicted to each spend an average of R6326 more during this festive season

South Africans are predicted to each spend an average of R6 326 over and above their usual monthly expenses during this festive season, an annual Summer Spending survey by short-term lender Wonga reveals. Photo: File

South Africans are predicted to each spend an average of R6 326 over and above their usual monthly expenses during this festive season, an annual Summer Spending survey by short-term lender Wonga reveals. Photo: File

Published Dec 2, 2021

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SOUTH Africans are predicted to each spend an average of R6 326 over and above their usual monthly expenses during this festive season, an annual Summer Spending survey by short-term lender Wonga reveals.

Based on Statistics SA’s mid-year population size estimates, the survey said this meant that local consumers were set to pump R252 billion into the local economy.

Some 6 400 South Africans shared their plans for the festive season in the survey conducted last month. This revealed where they planned to be, what gifts they would like and how much they intended to spend. They also gave an indication of how they were feeling about next year.

According to the results, the average spend per person over this period was forecast to be up 12 percent, up from an average of R5 673 last year. This followed a decrease of 15 percent between 2019 and last year, meaning that this year spending was predicted to be back up at pre-Covid levels.

Wonga Content Manager Bryan Smith said their survey revealed that 37 percent of people thought they would spend more this festive season than they did last year, despite the ongoing financial impact that the Covid-19 pandemic has had.

“The increase in predicted spend overall is significant and the figures this year are encouraging, reflecting the upward trajectory of the economy,” Smith said.

The research also showed that 41 percent of South Africans reported that they were better off than they were this time last year, with only 23 percent saying they were in the same position financially.

However, Smith said the survey was conducted before the announcement of the discovery of the new Omicron variant. This had unfortunately dealt a blow to optimistic hopes that the local economy would enter next year on a firmer footing. “We are hoping that the economy proves to be resilient in the face of this new development and that South Africans can enjoy a safe and peaceful festive season.”

The research revealed that food and drink would take up 31 percent of most budgets, at an average cost of R1 984 per person.

This was followed by gifts, which account for approximately 18 percent of festive budgets, with South Africans spending about R1 188 each to spoil their loved ones.

Due to the financial impact of the pandemic, however, 43 percent of South Africans would spend less over the summer holidays than last year, and some 19 percent planned on spending the same.

To cope with the extra expenditure over the December period, the majority of people surveyed of 43 percent planned to draw from their end-of year-bonuses, use their savings (37 percent) or rely on stokvels (28 percent). Some (25 percent) planned on taking out a short-term loan, which was up from 22 percent last year, with 8 percent of respondents spending money on their credit cards to get them through the festive season.

The ongoing pandemic and affordability has influenced people’s travel plans, with 48 percent of people choosing to stay at home over the festive season. According to the research, 22 percent of South Africans said this was due to having to work over the holidays.

Festive gifting was said to have grown as the majority of South Africans planned to buy gifts this festive season. Some 77 percent planned on spoiling their family, which was up from 75 percent last year but down from 83 percent in 2019. Interestingly, 21 percent also planned on buying themselves a gift this Christmas. At the top of 46 percent of people’s Christmas lists was money (the same as last year) and gift vouchers at 19 percent.

Much the same as last year, 21 percent of respondents planned to do all their shopping online, up from 13 percent in 2019, and nearly double the 11 percent of respondents who indicated similarly in 2018. This was said to have been driven by an increase in e-commerce also driven by lockdown and changing purchasing habits influenced by the pandemic.

There was a 2 percent increase in South Africans preferring to shop in-store at 70 percent this year, when compared to last year. This has however declined by five percentage points since 2019 (75 percent) and was down 11 percent when compared to 2018 (81 percent). The remainder of respondents intend to make their own gifts, or to purchase gifts from markets.

South Africans’ favourite way to celebrate the festive season was by getting together with loved ones (71 percent), with 29 percent getting together to exchange gifts. With many people staying at home this summer, Wonga said it stood to reason that the most popular way for respondents at 46 percent to celebrate was by having a braai.

With the majority of South Africans staying at home this year (44 percent), with a number (19 percent) of people choosing to spend their time on the beach and 16 percent planning to eat out at a restaurant, some (22 percent) will attend religious services.

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BUSINESS REPORT ONLINE

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