For SA to rebuild its tourism industry amid the ravaging effects of Covid-19, it will need a “tourism for dummies” approach – ensure the safety of tourists, have a coherent strategy and create an enabling business environment. In other words, let’s get back to basics.
There are three things SA has going for it as a tourism destination: a year-round mild climate, welcoming people and authentic cultural diversity. But there are three things that go against it: an absence of safety, a lack of coherence between all tourism role players and the unwillingness to be open for business on a global scale.
All of these cracks need to be addressed if we are to rebuild tourism. It really comes down to the government getting the basics right first. It needs to create an environment in which tourism businesses, particularly global brands, can thrive.
I come from an immigrant family who came to these shores seeking a better future. Over the years we have seen the country evolve from the euphoria of 1994 to the urgent need for constructive economic growth. As a family, we are deeply committed to playing our part.
However, spurts of xenophobic attacks over the past decade, and the recent riots, have made SA a destination to avoid. Racism is still embedded in our structures. All of these issues have made us insular, effectively cutting us off from the global tourism ecosystem. We do not even consider Africans coming into our country as inbound tourists yet they make up nearly 80% of our foreign arrivals before and during the Covid-19 era.
In addition, the vaccination rollout has been slow. To date, just 17m vaccinations have been administered since it started in February. As a result, the UK placed SA on the red list for travel. This meant British tourists wishing to visit SA had to undergo 10 days of quarantine when they return. It makes SA an unattractive destination. Estimates put the loss of revenue at R26m per day.
Our traditional major source markets, Germany and the US have only made travel to and from SA easier of last month. We need to act and look for alternative markets.
We can attract tourists from countries in the Middle East, China and India – all of which have a growing middle and upper class that is hungry to travel and consume our authentic offerings. We just need to start focusing on bringing them here.
The forthcoming new age of tourism will not be kind to countries that have lacklustre safety policies. Conscious travellers will be looking for destinations that are crime-free, family friendly, politically stable and adherent to Covid-19 regulations
The government claims to recognise tourism as one of the economy’s crucial industries that can lift the country out of its quagmire. This sentiment is clear in its Economic Reconstruction and Recovery Plan. Yet the government's actions are contrary. A R4.1bn budget for tourism is not sufficient.
It has been reported that foreign tourists put off travel to SA for a later stage as it is seen as a long-haul, once-in-a-lifetime destination. I believed this too until Australia made that reason irrelevant. Statistics show that of the 9.4m international arrivals Down Under in 2019, more than 370,000 were from the US and 344,000 were from the UK. The industry contributed almost A$61bn (R660bn) to the country’s GDP.
It is also time that we have an open skies policy, at least for our fellow African countries. It would make SA an airline hub for the rest of the continent
For a vibrant tourism market, we need to look beyond politics and what other parts of the world have done.
Tourism is a super-sector. It is the only industry that involves other sectors such as manufacturing, information technology and transport. To effectively tap into this opportunity, there needs to be a willingness to do business on the global stage. SA cannot remain insular any longer.
We could start by building our domestic market as a base. Studies have shown that South Africans mainly travel within the country to visit family and friends. This does not need to be the only reason any longer.
While Sho’t Left travel week is admirable in its intentions, dedicating one week every September is not going to entice the average South African to visit her own backyard. In addition, travel for South Africans should be made accessible and affordable.
Big local brands still dominate the tourism landscape with an outdated product and service culture delivered as if they are doing the customer – and the tourism industry on the whole – a favour. Such arrogance continues to make tourism inefficient. The need for global brands to bring a change, competition, agility, skills and global best practice is even more relevant today.
In addition, the introduction of such brands will generate an international presence and awareness of SA as a destination. They are a driver for destination marketing.
When tourism rebounds, it will recapture its capability to be a major employer. Pre-Covid statistics show it contributed 4.5% of total employment in SA and remained resilient in tough economic times. We will, once again, look to tourism to mend the current 34% unemployment rate.
The private sector, particularly global brands, will play a part in developing the employees’ skills. It can partner with tertiary institutions in growing a workforce fit for the industry.
But the government would first need to create an enabling environment for these businesses to exist and thrive. We need less talk and more action.
In 2019, we only attracted 15.8m foreign tourists. That is almost 10m less than what the city of Venice receives in a year. And with Covid-19, SA’s figures dropped by 71% to just 5m foreign arrivals.
We need to be smarter when it comes to attracting tourists. We need to find a way to place the country high on the global agenda. SA needs to stop being arrogant. Not every tourist is eager to visit our country. SA is not the only destination from which to choose. The sooner we understand this, the sooner we will be able to attract an abundance of tourists, create jobs and revive the tourism industry.
• Hamza Farooqui is the founder and CEO of Millat Investments
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