South Africa’s tourism sector is facing critical challenges that need to be addressed if it is to recover to pre-pandemic levels, let alone see growth.
Other long-haul and African destinations are currently outpacing this country, thanks to the energy crisis, water quality and shortages, safety and security, poor road infrastructure, and the lack of an optimised e-visa system.
Tourism-related businesses are also struggling to keep their doors open as they face tight margins and increased operating costs.
StatsSA figures may have shown a 46,5% increase in the volume of foreign tourist arrivals in June 2023 compared to June 2022, but this figure is coming off a low base due to the decline in tourism during and following the pandemic. Such figures are therefore not accurate reflections of the current state of tourism in South Africa.
“This year-on-year growth rate is really only so extreme because it comes off that low lockdown base, and actually represents a slowing year-on-year growth rate for the sixth consecutive month,” says FNB commercial property economist John Loos.
The reality is that the number of foreign arrivals in June this year is still 26,8% lower than in June 2019, before the pandemic. This latest tourism and migration data for June also shows that the number of overseas tourists dropped by 26,7% from the first quarter of this year to the second.
Number of tourists from overseas countries by month: 2019 – 2023
Of course, just like the rest of the world, South Africa’s tourism sector is in recovery mode following the dips in 2020 and 2021, and this is good news. In May, the United Nations World Tourism Organization’s World Tourism Barometer showed that, globally, tourism was on the up, with international arrivals reaching 80% of pre-pandemic levels in the first quarter of 2023. In Africa, these arrivals reached 88%.
Rosemary Anderson, national chairperson of FEDHASA (Federated Hospitality Association of South Africa) says there has been positive growth this year compared to last, with an increase in visitors to South Africa and a spike in foreign spending. And while the country has not fully recovered to pre-pandemic levels, it is “heading in the right direction”.
“What has also been encouraging to see is that visitors are staying longer – an average of 13 days versus 11 days when comparing Q1 to the same period in 2019.”
But there are challenges that are making recovery and growth difficult, she states.
“We must remove the issues that prevent tourism growth in South Africa so that we can aggressively compete with long-haul and African competitors who are outpacing us currently. There must be a focus on addressing critical issues holding us back, such as the energy crisis, water quality and shortages, safety and security, the lack of an optimised e-visa system, and poor road infrastructure.
“By addressing and finding solutions to these challenges, we will attract tourists, ultimately creating jobs and stimulating economic growth.”
FEDHASA believes that the tourism and hospitality industry is the vehicle for job creation and economic growth, particularly as South Africa has the highest unemployment rate in the world.
“Job creation is key and we must do everything in our power to remove any barriers that stifle the growth of tourism in South Africa,” Anderson says.
The country, she adds, must focus its collaborative efforts on maximising growth potential by showcasing diverse experiences such as wildlife safaris, vibrant cultural experiences, local cuisine, and adventure activities. In addition to this, South Africa is a value-for-money destination where foreign expenditure goes far considering the depreciation of the Rand.
“Almost 500 000 jobs were lost during the first year of the pandemic and we need to consider that tourism once generated 740 000 direct jobs and 1,5 million indirect jobs. We must leverage an industry that remains the largest driver of job creation and skills development in South Africa.”
IOL Business