ROSS VOLK: How to get tourism back on track

As the economy begins to show some green shoots, it’s a good time to start collaborating on the realisation of tourism’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.

Tourism directly contributes about 3.5% of South Africa’s GDP, and hasn’t yet regained pre-Covid levels. It employs about 733,000 people directly, also still below the pre-pandemic level of 777,686.

It’s a good start, but the figures show we could do more. Tourism makes a much higher contribution to GDP in Mexico (8.5%), Morocco (7.1%), Greece (7.1%) and Italy (5.7%). Overall, travel and tourism represent 9.1% of global GDP, which gives an inkling of what we could achieve, especially considering our 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 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 with 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 — 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 Eskom turnaround, it is possible to shift the dial even on seemingly existential problems.

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, the government and citizens. The participation of the government is crucial, as it has to provide the policy framework needed. It also 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.

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 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 the 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 world-beating team that has genuine national support seemed 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 the country. We just have to do it.

* Volk is MD of MSC Cruises South Africa