Research done by short term lender Wonga in their second annual Festive Spending Survey has shown that South Africans will spend an average of R6,585 during the festive season, over and above their usual budgets. This means that a total of R254 billion will be pumped into the economy, which is an increase of 24% from last year.
Wonga has said that 60% of people think they will spend more this festive season than they did in 2018, despite the tough economy. Most people have either saved throughout the year, or else plan on using their bonuses in order to cope with this expense.
Gifts make up about 20% of festive budgets, with many people treating themselves to a gift this Christmas as well as spending money on others. In terms of gift choices, money and vouchers are at the top of the list. Although traditional stores have dropped in popularity by 6% since 2018 thanks to online shopping, 75% of shoppers have said they plan to visit stores to buy their festive gifts.
Many South Africans are not travelling this festive season as they perceive it to be too expensive, and the favourite way for most South Africans to spend the festive season is with family and friends – but for those who are going away, Durban is the most popular destination.
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