Travel and tourism: A key sector in unlocking the economy and creating jobs

Source: Tourism Update, 11/02/2019

Tourism created more jobs than manufacturing and mining between
2014 and 2017. It is critical that the industry is protected from
forces that could impede its growth and sustainability.
In 2017, travel and tourism contributed R412bn (€291m) to SA’s
GDP, and its direct and indirect contribution to employment is 1
530 500 jobs, according to World Travel and Tourism Council. This
is a sector that government must fully embrace, and nurture its
growth with the intent to further contribute to the economy and
employment.
The tourism sector created 31 752 nett new jobs (total jobs
created within the sector less jobs that disappeared) in 2017.
This is the greatest number of nett new jobs generated by tourism
within a year in at least the last eight years. This also
represents the second year of employment growth after the sector
saw a nett loss of 12 262 jobs in 2015. This highlights the
strength of the industry and why it is imperative to build and
strengthen the sector in a country that is suffering a
significantly high unemployment rate.
To realise the full potential of the tourism industry’s impact on
the economy and job creation, the departure point must be the
urgent removal of regulatory barriers that are impacting growth.
This includes immigration regulations, national public transport
regulations, and sharing economy concerns.
President Cyril Ramaphosa recognised tourism as one of the key
sectors in stimulating the economy and creating jobs. In his
inauguration speech, he said tourism was an area that provides our
country with incredible opportunities to, “quite literally,
shine”. He acknowledged that the industry was performing better
than most other growth sectors and that there was no reason why it
couldn’t double in size.
However, this sentiment is yet to translate into the industry
itself. The Tourism Business Council of South Africa (TBCSA)
believes that government policy is a crucial area that can make or
break the industry. Being sensitive to socio-political
developments, the tourism industry can struggle to be profitable
and sustainable if these developments are not in its favour, as
was proven by government’s decision that travelling minors had to
carry an unabridged birth certificate, without consulting the
sector.
This regulation continues to have a significantly negative impact
on tourism as South Africa is perceived as an unfriendly family
travel destination. The recent amendment of the regulation still
has not inspired confidence in airlines, tour operators, and
travel agents to promote South Africa in their offering. The
statistics show that key markets’ arrivals are stagnant and the
industry forward bookings have not improved.
Travel and tourism is a low-hanging fruit that can stimulate the
economy and create more jobs. Unlike many industries that need the
building of factories and buying of equipment, and many other
capital expenditures, tourism is about our culture, food,
wildlife, iconic mountains, breath-taking scenery, our cities and,
most importantly, who we are. We already have tourism
infrastructure that surpasses many competitors.
To boost the economy and create jobs, the TBCSA suggests that the
following actions must be taken urgently by government in
consultation with the industry:
1. Urgent introduction of online visa application with fast
turnaround time
2. Urgent granting of visa waivers to more countries
3. Suspending the confusing travel requirement for minors to
promote family travel
We have seen many countries around the world that have introduced
these systems, granting visa waivers and simplifying immigration,
which have significantly grown their tourist arrivals. These
measures will go a long way in increasing tourist arrivals. When
we implement these suggestions, we could increase arrivals by 6%
every year where we could see 14.5m arrivals in 2014 and possibly
21m arrivals in 2030. This will have a significant impact on job
creation in a country that has a high unemployment rate.