What the discovery of gold and diamonds did for the South African economy in the past, tourism can do in the twenty-first century. Tourism already provides a substantial source of South African jobs, and still has enormous untapped potential for local broad-based wealth creation, says René Botha, Regional Investment Manager at Business Partners Limited.
One in ten jobs is provided directly by South Africa’s dynamic tourism sector, which celebrates September as national Tourism Month as it gears up for a bumper summer season. In so many ways, tourism is the ideal sector for South Africa to build, develop and nurture, says René. It fits the country’s strengths, which includes stunning natural landscapes and wildlife, beautiful coastlines, mild sunny weather, vibrant modern cities, friendly people, rural hinterlands rich in diverse cultures, and a fascinating history that has become a story of hope for the world.
Our modern infrastructure and ubiquitous use of English make all of these treasures accessible to the world. At the same time, significant global forces are steering increasing numbers of tourists to South Africa. Tensions and conflict in the northern hemisphere help to turn potential tourists’ gaze towards the south. Indications are that European tourism is saturated, causing ports and villages there to introduce limits to the number of tourists allowed.
In contrast, South Africa offers wide, tranquil expanses where many more tourists would still be welcomed. Not least, the relative weakness of the South African rand makes the local luxuries and adventures seem like a bargain for tourists compared to the over-traded and over-priced tourism destinations of the rich world. All of these advantages are turning tourism into the new gold for South Africa. The sector already makes up 8.6% of the South African economy and provides 9.2% of jobs.
The impact of a tourist dollar, euro or yen is felt much wider than just by tourism businesses themselves. Consider a guest house on a tourist route, says René. Its guests eat at surrounding restaurants, buy from local shops and use local transport services to get around. Each of these businesses in turn rely on dozens of other businesses for servicing and maintenance.
Each of the workers employed directly in the tourism sector support other parts of the economy, from education to retail. And the kind of jobs that the tourism sector provides is ideal for South Africa’s unemployment predicament. In contrast to sectors such as manufacturing, tourism generally requires relatively few skills offering ideal entry-level jobs for first-time job seekers.
Apart from these direct economic benefits, René lists a number of indirect advantages of tourism that are less easy to measure, but are just as important for the economy. A third of all tourists are foreigners who bring with them ideas, information, opinions and networks. They forge connections with South Africans that sometimes turn into business relationships.
It could be argued that such an exchange of ideas and the building of relationships driven by domestic tourism are even more important. Everywhere, South Africans from diverse communities meet and learn more about each other’s cultures through tourism, thereby helping to build up levels of trust and social cohesion that are so important to economic growth.
René argues that thirty years since South Africa has opened up to the world, the South African tourism industry and infrastructure has reached a level of maturity and development that provides a critical mass for further growth. Tourism is moving from a pioneering to a scaling-up phase. Databases list more than 7 000 recognised tourist attractions in South Africa, a number that is sure to grow as local entrepreneurs identify more opportunities, and draw an even bigger share of international tourism, which stands at 1.9% of the total.
Unlike the gold rushes of the past, tourism is not extractive where the riches of the country are exported and lost to South Africans, says René. Instead, it is a jewel that not only creates local wealth, but can be enjoyed and celebrated by South Africans themselves.
About the Author: René Botha
