LOCAL PERSPECTIVE

Tourism has the potential to be a gateway to economic growth

As the economy begins to show some green shoots, Tourism Month offered a good opportunity to start collaborating on how to realise this sector’s enormous potential. I don’t think it’s an exaggeration to say that tourism is the rocket fuel our economy needs, but, igniting it will mean a commitment to doing things differently.

By Ross Volk, managing director, MSC Cruises South Africa

Today, tourism directly contributes around 3.5 per cent of South Africa’s gross domestic product (GDP), and hasn’t yet regained pre-Covid-19 levels. It employs around 733,000 people directly, still below the pre-pandemic level of 777,686.

It’s a good start, but the figures show that we could do more. Tourism in countries such as Mexico (8.5 per cent), Morocco (7.1 per cent), Greece (7.1 per cent) and Italy (5.7 per cent) makes a much higher contribution to GDP. Overall, travel and tourism represent 9.1 per cent of global GDP, giving an inkling of what we could achieve, especially given our generous endowment of natural and cultural attractions.

What’s stopping us from realising the potential gains from an unleashed tourism industry in terms of increased GDP and, crucially, the new jobs we 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.

With the right focus and determination, we 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. Even when ships dock at places like Durban, getting guests to beautiful destinations such as Phinda, Giant’s Castle, or St Lucia is difficult, due to limited roads, trains, and vehicles. There’s clearly potential for small businesses, such as 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.

A new compact needed

These are complex and interconnected problems that will take time and concerted action to change. But, as we have already begun to see with the ongoing Eskom turnaround, it is possible to shift the dial even on what seemed like a pretty much existential problem a year ago.

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.

Conversely, business has to recognise that profitability is not the only metric; ethical employment (and other business) practices are vital in creating and maintaining the right momentum.

Individual South Africans, too, must play their part by accepting that advancement requires hard work — jobs and subsequent promotions need to be earned.

It may sound straightforward, but it’s certainly not. However, there are encouraging signs that we’re beginning to recognise the need to move beyond our past, and focus on the future.

The growing collaboration between business and government to tackle significant issues that have stunted the growth of our country is a positive example — just as the very idea of a government of national unity reflects a step in the right direction.

One of the remarkable things about South Africa is that how we look on paper is not a true reflection of the reality on the ground. The rebirth of the Springboks as a worldbeating team that has genuine national support seems improbable — but bold, positive leadership from the coach and captain has shown what can be achieved. The other piece of the puzzle is the dedication and work ethic of the team, but that is a consequence of the quality of the leadership.

The same ‘miracle’ can be achieved in tourism — to the benefit of the economy, and of the country as a whole. We just have to do it.