China, India tourist boost for SA

Cape Town - South Africa’s tourism industry outperformed global counterparts in 2009, growing by 3.6% compared to the previous year and representing a 7.4% contribution to gross domestic product (GDP), said Minister of Tourism Marthinus van Schalkwyk.

Delivering his budget vote speech in parliament, Van Schalkwyk said foreign arrivals had grown by 3.6% last year to nearly 10 million, compared to about 9.6 million in 2008. The total foreign direct spend in 2009 grew by 7% compared to 2008 to R79.4bn.

“This is a tremendous feather in the cap of the industry in a time when all other tourism markets worldwide were in a slump,” he said.

Van Schalkwyk said arrivals to South Africa were driven by healthy growth from among others Asia, with a 3.7% increase, African air markets with a 3.3% increase and African land markets, which saw 5.7% growth. 

“The particularly good growth from China (12.4%) and India (17.5%) is considered a good return on South African Tourism’s (SAT's) investment in these markets.

“SAT has recently completed its third review of its portfolio markets and the results point to significant potential in Africa, particularly in Angola and Nigeria. SAT’s international marketing plans will be adjusted accordingly to make sure that we capitalise on this potential and further extend our good relationships in Africa,” said Van Schalkwyk.

When it comes to local tourism, the number of South African adults who went on domestic trips increased from about 14 million in 2008 to about 15 million in 2009. This represents about 48% of the population, undertaking an average of 2.1 domestic trips in 2009.

Locals also taking more trips

The number of trips taken fell from about 33 million in 2008 to 30 million in 2009, and the average nominal spend per trip also declined from R780 in 2008 to R730 in 2009 as consumers tightened their belts. 

This, said Van Schalkwyk, is a continuation of a trend that started in 2007 as a result of economic pressure on consumers.

“Given the volatility of the international market, it is of course vital that any country fosters a healthy domestic tourism industry, and this is one of the aspects of our industry we will address in the Tourism Sector Strategy,” said the minister.

Meanwhile, figures from the World Travel and Tourism Council (WTTC) show that tourism’s direct and indirect contribution to South Africa’s GDP grew by 2.7% to R198.4bn in 2009 compared to 2008. 

This represents 7.4% of GDP and, according to Van Schalkwyk, is a “resounding vote of confidence” in South Africa’s tourism industry. South Africa’s reputation as a world class destination, he said, would only be entrenched after the 2010 Fifa World Cup.

“The World Cup will leave a tangible and lasting tourism legacy in South Africa. We are able to showcase major investments in infrastructure in terms of hotels, transport links, airports, stadiums and facilities,” said Van Schalkwyk.

He is confident that the tourism industry would also benefit from the powerful word-of-mouth marketing when soccer fans return home as ambassadors and advocates for South Africa.