THE LAST WORD

Tourism entrepreneurship could be a game-changer for South Africa’s youth

Tourism entrepreneurship could be a game-changer for South Africa’s youth With the country’s soaring youth unemployment rate, the tourism sector holds immense promise to create employment opportunities and drive the economy. After recently attending the 6th edition of the Africa Youth in Tourism Innovation Summit (AYTIS), hosted by Africa Tourism Partners in collaboration with UNWTO and BDO, Christelle Grohmann, director: advisory — strategic & development consulting at BDO, discusses the entrepreneurial potential within the sector for the country’s youth.

By Christelle Grohmann

The tourism sector has the potential to be the biggest foreign currency earner for South Africa. The country offers domestic and international tourists a wide variety of options such as national landscape and game reserves, diverse cultural heritage sites, rolling wine estates, and an abundance of stunning coastlines. From January to March 2024, South Africa saw 420,727 tourist arrivals from Europe, an 8.6 per cent increase compared to the same period in 2023. These numbers prove that the country is well on track to become a sought-after destination once again.

In terms of entrepreneurship, the growth of the tourism industry is driving a thriving tourism start-up revolution in the country. As of March 2024, we have over 130 online travel start-ups and this number seems set to grow. This influx of new businesses is a positive sign for the sector, injecting a dose of innovation and catering to evolving traveller preferences. But how does this bolster youth employment?

From tour guides to front-of-house workers to opportunities for advertising, marketing and design, financial management, IT, tech, and more, the tourism industry has a broad scope for employment. Many start-ups offer training programmes or online platforms that equip young people with much-needed skill development across the board. Start-up incubators and accelerators also often offer mentorship, funding, and workspace to young entrepreneurs. In terms of connections, start-ups are creating platforms that connect businesses with young freelancers for tasks like web design, graphic design, virtual assistance, and content writing. This allows young people to monetise their skills and gain valuable work experience. And, because many start-ups are social enterprises, meaning they focus on creating a positive social impact alongside making a profit, these businesses often address challenges like poverty and lack of access to education, indirectly creating job opportunities for young people in their communities.

However, the allure of becoming a tourism entrepreneur shouldn't mask the inherent challenges. Securing funding, navigating complex regulatory environments, and managing logistics are just a few hurdles that start-ups must overcome. The tourism industry is also an incredibly competitive one, with established players and global booking platforms dominating the market. Catering to niche markets or offering unique experiences can be a differentiator, but identifying and fulfilling specific customer expectations requires market research and a clear value proposition.

This is where the importance of industry support comes to the fore. While the entrepreneurial spirit is commendable, collaboration with established players and industry associations is crucial for survival and long-term success.

Collaborative ventures between start-ups and established players have the potential to be mutually beneficial. As an example, start-ups can leverage the brand recognition and distribution channels of larger companies, while established players can gain access to fresh ideas and innovative technologies. This synergy can drive sustainable growth for both parties.

Start-ups often have an innovative edge and entrepreneurial hunger while established players have the industry experience to offer invaluable guidance. Mentorship programs can connect start-ups with industry veterans who can provide insights into market trends, best practices, and operational expertise. Industry associations can also be vital resources, offering networking opportunities, access to training programs, and advocacy on behalf of the broader tourism ecosystem.

If we consider how sustainable tourism practices are also gaining traction, with start-ups focusing on eco-friendly accommodation, responsible wildlife encounters, and community-based tourism initiatives, leveraging the already established footprint of industry professionals who have an aligned vision for sustainable tourism, can take both to a new level. This responsible approach can benefit both the environment and local communities, contributing to the long-term growth of the industry.

With reports that there are currently around 4,9 million unemployed youths aged between 15-34 in the country, there has never been a better time to leverage South Africa’s abundance of tourism potential than now. We must, as an industry, ensure that we are encouraging youth from all backgrounds to get exposure, develop skills, harness entrepreneurial opportunities, and leverage their own cultural experiences. This is the only way we can make them active players in a resilient tourism ecosystem that is not only economically sustainable but also contributing positively to the social and environmental fabric of the country.

Who is Christelle Grohmann?

Christelle Grohmann is a director in advisory services and has advised extensively in the tourism, hospitality and leisure, property, and infrastructure sectors in her 30year career. Christelle was instrumental in establishing the infrastructure advisory service offering in South Africa and was the lead director for Infrastructure Advisory in sub-Saharan Africa for over 10 years. Chriselle works extensively within South Africa in both the public and private sectors, and has also carried out projects in all southern African countries as well as further afield in Africa includingTanzania, Kenya, Ghana, Madagascar, Guinea, Benin, and the Democratic Republic of Congo. Christelle represents the firm at tourism industry associations such as theTourism Business Council of South Africa (TBCSA) and the Southern AfricanTour and Transport Association (SATSA) as well as infrastructure associations such as the International Project Finance Association (IPFA). Christelle is also a member of the Women’s Property Network and Institute of Directors SA. Christelle has facilitated numerous workshops and large meetings and is proficient in using a range of facilitation approaches and tools.