Tourists better than gold

By Staff Writer


From FIN24.com
November 1 2007
I-Net bridge

Tourism has become a lucrative business in South Africa, bringing in more than R66bn to the economy annually and overtaking gold as the country's largest export earnings.

Tourism's estimated contribution to GDP increased from 4.6% in 1993 to 8.3% in 2006. The record-breaking 8.4 million tourists who visited South Africa in 2006 created some 947 530 job opportunities. For every seven tourists who visit South Africa, one permanent job is created.

T-Sec economist Mike Schüssler says Gauteng's tourism sector is one of the best performing sectors in the province, as it experiences annual growth of more than 10%.

"Over 9.4 million people walked through the turnstiles at the OR Tambo International Airport for the year to end of September.  This represents annual growth of more than 12.5% if compared to the corresponding period a year earlier," says Schüssler.

"Gauteng is by far SA's largest tourist destination, although the majority of the visitors are business tourists. The average stay of these tourists is around three days."

Standard Bank economist Danelee van Dyk says that although the SA economy has entered a softer growth trajectory characterised by higher inflation and higher interest rates, the influx and spending patterns of foreign tourists will not be affected.
Foreign tourists are not sensitive to these factors or growth restraints, but are more affected by the performance of their own economies.

The current strong rand will also not have a material negative impact on the number of visitors."Gauteng tourism businesses should focus on the development of a magnitude of opportunities such as the 2010 World Cup and other cultural, historical and heritage sites.

"Gauteng is largely seen as a business hub, but also offers promising and exciting leisure sites and activities. It is important for these business owners to develop product offerings in the run- up to 2010 specifically to magnetise foreign arrivals to these sites and activities.

"Related opportunities also exist in transport and logistics, as well as accommodation.

"South Africa's own income growth dynamics in our own developing middle class also provides attractive opportunities for businesses targeting local tourists and those of other African countries.

"Gauteng has a developed commercial and leisure shopping infrastructure and this attracts many local and African tourists. These individuals' needs differ significantly from their foreign counterparts and business owners should cater for these needs specifically."

Recent Articles

Featured Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift