
Grant Thornton says that while our country’s tourism growth of 7% over the past two decades is higher than the global average of 4%, there is not enough international marketing. Grant Thornton Head of Advisory Services in Johannesburg, and Global Leader for Hospitality and Tourism International, Gillian Saunders, said that our country has done well as an international tourism destination, the democratic change in our country giving it good international exposure, and renewed interest.
In Grant Thornton’s analysis of the past twenty year history of the Tourism industry in South Africa, it tracked growth as follows:
* the number of hotels has grown from 726 to 1500, probably excluding B&B’s and guest houses, which only took off from about 1996
* the number of casinos grew from 17 to 38
* the total number of cars rented by car-hire firms grew from 25000 to 65000
* the number of luxury coaches grew from 340 to 720
* the number of international airlines servicing our country grew from 21 to 76.
The small growth in the Tourism budget earlier this year by the former Minister of Finance Pravin Gordhan was half of the inflation rate, and did not take the weak exchange rate into account. Saunders makes herself potentially unpopular when she says: ‘We say all the right things about tourism as a priority but we don’t put our money where our mouth is’. Saunders says that if perceptions related to safety and security could be better addressed in our country it would see tremendous Tourism growth and become a leading destination.
The industry seems to echo Saunders’ sentiments, in its reaction to President Zuma’s State of the Nation Address, which he delivered at the Opening of Parliament on Tuesday. Whilst praising his goal of 15 million tourists to be achieved by 2017, it would be unlikely that this goal would be achieved, given the current economic climate.
Critical and outspoken Southern African Tourism Services Association (SATSA) CEO David Frost said that the Arrivals goal set by the President would not be met if there were blockages to Tourism, mentioning the recently announced and highly controversial Immigration Regulations. He and other tourism leaders also highlighted further Tourism issues being air access, airfares, taxes, strikes in popular tourism areas, crime and corruption, and international perceptions of our country.
A current visit to Plettenberg Bay, and our experiences in Franschhoek, Hermanus and Cape Town, reflect that Seasonality is alive and well in the Western Cape, and needs urgent attention. Every winter our tourism authorities promise campaigns to address this serious problem, which appears to be unique to our province, draining all financial gains made by hospitality businesses in summer! But nothing ever is done to address Seasonality!
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Twitter: @WhaleCottage
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