Rising insurance costs push up ticket prices
Long distance travellers are feeling the brunt of the increase in insurance premiums for bus companies
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Long distance bus travel is just one of the industries in South Africa being
affected by the economic slump and bus companies are reporting that a
significantly less proportion of migrants returned home for their annual
holidays this year.
Migrants from the Eastern Cape make up a large proportion of South Africa's
working population. They traditionally leave behind elderly parents, spouses and
children in order to work in the cities and then head off home each year laden
with gifts and money that was saved throughout the year.
However, bus companies have been forced to put up the prices of their long
distance bus fares due to the rising cost of insurance premiums, as well
as petrol prices. The results were obvious this holiday season, when migrants
simply could not afford the steep fares charged.
Gordon Makaluza, from Miyas Transport said that his business had practically
slumped over the past year as migrants searched for cheaper options, such as the
train, in order to reach their homes for the holidays.
A round trip from Phillipi to the Eastern Cape costs around R380 and
travelers are questioning why the prices have not been brought down to reflect
the lower fuel costs.
However, Makaluza and others who own fleets of busses that run the Eastern
Cape route insist that they cannot help putting up prices. He claimed that the
rising cost of insurance, as well as traffic fines that were regularly issued to
drivers and the maintenance of his busses were practically "killing" business.
An executive with the Cape Chamber of Commerce and Industry said that many
travelers were skipping a home visit altogether and spending their money on
basic essentials instead.
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