News Articles

It’s time to take tourism seriously

Source: Tourism Update, 10/08/2019

South Africa’s unemployment rate hit 29% in the second quarter of 2019, an increase of 1.4 percentage points compared with the first quarter. The number of unemployed persons in the country has increased by 455 000 to 6.7m over the same period. This is according to the results of the Quarterly Labour Force Survey, released by Stats SA on July 31. Despite this, tourism as a sector is often overlooked as being key to transforming South Africa’s economy. “Tourism is often misunderstood and underrated, both as an intrinsic sector with its own potential and as a lever for economic growth,” says Gillian Saunders, Tourism and Hospitality Adviser. She says this is because of the multi-faceted nature of tourism, which makes it harder to appreciate and quantify as a sector. Saunders says it is worth keeping in mind that tourism is an export sector. “Tourism’s greatest areas of potential growth are in exports, and in bringing in more, higher spending overseas and African air tourists with their forex spending. Tourism imports high spending customers,” she says. Tourism is also an ‘apex’ sector, Saunders says, with a long and deep supply chain. This allows it to stimulate economic activity in other sectors, such as manufacturing and agriculture. “Think of buses, cars, linen and towels, crockery and cutlery etc. Just imagine how many chickens and eggs Sun City consumes in a year. If you want to stimulate demand in manufacturing and agriculture, and other industries such as finance, marketing, retail, or logistics, tourism is your industry.” According to Saunders, almost one additional rand of value is added to the rest of the economy for each rand of tourism direct spend. And for every direct job supported in tourism, an additional 1.1 jobs are supported in other sectors of the economy. She also points out that, not only does tourism bring in foreign exchange and stimulate other sectors, but it is an employment- intense industry. She says while the industry must embrace the digital and shared economies, it will remain a people-intensive industry and a high employer. “Tourism employs people across the skill levels and, even better, across the country, often in rural areas.” Tourism is also a high employer of women and young people, at 70% and 60% of tourism employment respectively falling into these two demographics. The tourism industry also supports high levels of indirect employment. Saunders says: “In total, 1.53 million jobs are supported by tourism currently; some 726 000 direct and more than half, at around 800 000, through the multiplier effect.” Saunders says if South Africa reaches the target of 21 million arrivals in 2030, tourism will support in the order of two million more jobs in total throughout the economy. “Tourism is an amazing industry. It is one in which you can still enter unskilled at the bottom, and make it to the top. There are many stories of cleaners, rangers, bar staff, and the like making it to lodge owner, hotel general manager, restaurant owner etc. Motivated people can make it to the top with no formal qualifications,” she concluded. www.samigration.com


Search

  •    SA`S NEW travel rules prevented our minor children from attending a family funeral. My wife and children were on holiday in Florence, Italy, and I had returned early to our home in Singapore when we received the tragic news that our three-year-old niece had passed away. We wanted to return to SA immediately, in time for the funeral last Friday.... Read more...
  •    Calls for investigation into outsourced immigration services after The Independent revealed Home Office profits on UK visas surged by millions of pounds a week under private firm accused of exploiting applicants... Read more...
  •    Chantel* was only 15 years old when she hopped the Eswatini-South African border in early 2007. She says she lived her whole life in an orphanage in Manzini, never knew her biological parents and never saw her birth certificate... Read more...
  •    We, as South Africans, always complain about government service, however, I am extremely excited to report that my son arrived at Home Affairs on Wednesday morning on July 31 with an expectation of long queues, disinterested staff and very little help.... Read more...
  •    President Cyril Ramaphosa has signed into law the controversial National Credit Amendment Bill which is geared to provide relief to over-indebted consumers... Read more...
  •    South Africa seeks skilled individuals to live and work in SA.... Read more...
  •    The International Monetary Fund’s (IMF) senior resident representative in South Africa Montfort Mlachila has confirmed that South Africa has not requested an IMF loan and he added that, “We will not see a balance of payments (support programme) for South Africa.”... Read more...
  •    Herewith find a clear understanding of this often misunderstood section of the Act . When one looks at specifically the definition of a relationship as defined in the Act and The Regulations which is quoted below we wish to draw your attention to specifically to point 3 (2) ( a) (i) and (ii) which must be read very carefully and we highlight and bold the relevant sections and in particular wish to point out all the Act requires is that evidence of the relationship is for 2 years... Read more...
  •    The US government has announced that an increase in the investment threshold for foreigners to access a US Green Card via the Immigrant Investor EB-5 Programme will come into effect from November 21, 2019, when the amount will increase from $500 000 (about R7.5m) to $900 000 (about R13.5m).... Read more...
  •    CAPE TOWN, - Two immigration officials and an alleged `middleman` are in police custody after being arrested this week in connection with a bribery scheme, the Directorate for Priority Crime Investigation (Hawks) said on Wednesday.... Read more...

Get the latest Immigration News