South Africa’s tourism industry has the potential to be a gateway for economic growth, however, certain steps need to be taken to reach this potential.
As the country celebrates Tourism Month, Ross Volk, MD, MSC Cruises South Africa said that tourism is the rocket fuel South Africa’s economy needs but igniting it will mean a commitment to doing things differently.
“Today, tourism directly contributes around 3.5% of South Africa’s gross domestic product (GDP), and hasn’t yet regained pre-Covid-19 levels.
“It employs around 733 000 people directly, also still below the pre-pandemic level of 777 686. It’s a good start, but the figures show we could do more,” said Volk.
He highlighted that tourism in countries like Mexico, Morocco, Greece and Italy makes a much higher contribution to GDP and since travel and tourism represents 9.1% of global GDP, South Africa could gain a greater piece of the pie especially given the country’s generous endowment of natural and cultural attractions.
Volk noted that the country has some challenges stopping it from realising the potential gains from an unleashed tourism industry in terms of increased GDP and, crucially, the new jobs it so desperately need.
“A key concern is our reputation. To become the preferred travel destination, we have the potential to be, we must treat the safety of our guests as one of our most critical priorities.
“Moreover, we must ensure that South Africans themselves feel safe in their own country, to offer a warm and welcoming environment to tourists,” he added.
Volk highlighted that with the right focus and determination, SA can make progress on addressing crime, and over time, more positive news stories will help shape a better narrative.
“Another important challenge is the lack of infrastructure. For example, while our coastline is stunning, there are only a handful of ports that cruise liners might consider attractive — around six in total. In contrast, the Mediterranean has significantly more,” he stated.
The MSC Cruises SA MD noted that even when ships dock at places like Durban, getting guests to beautiful destinations such as Phinda, Giants' Castle, or St Lucia is difficult due to limited roads, trains, and vehicles.
“There's clearly potential for small businesses, like tour operators and accommodation providers, but without the necessary infrastructure, we may miss out on those opportunities.
“Additionally, ongoing infrastructure issues such as water and power shortages pose further challenges for tourism and broader economic activity,” he said.
Volk noted that South Africa’s challenges are complex and interconnected problems that will take time and concerted action to change, however, it is possible to shift the dial even on what seemed like a pretty much existential problem as the country has seen with the ongoing Eskom turnaround.
“Perhaps the place to start is a transparent, frank national conversation between the main stakeholders, a conversation that focuses strictly on solutions.
“An absolute necessity will be a new compact between business, government and citizens. Government is crucial as it has to provide the policy framework needed and, in addition, it has to see business as a valued partner in achieving its goal of economic growth,” he added.