Tourism
From The Report: South Africa 2013
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As South Africa’s visitor numbers pick up, revenues are returning to a tourism industry that suffered a post-World Cup dip compounded by the effects of a tough global environment. Some 4.4m tourists visited South Africa in the first six months of 2012. The government is working to increase the tourism sector contribution to the economy, from a 2009 baseline figure of R189.4bn ($23bn), or 7.9% of GDP, to R499bn ($60.8bn) by 2020. Tourism business performance, particularly in the higher-value segment of the market, remains somewhat muted – however, as traditional target markets continue to be slow, the visitor mix is beginning to shift subtly. As such, businesses will have to develop new strategies to cater to the changing visitor dynamics in the market.
This chapter contains interviews with Thulani Nzima, CEO, South African Tourism; and Arthur Gillis, CEO, Protea Hospitality Group.

Articles from this Chapter

Overview

Making new connections: Increased traffic from emerging markets helps to buoy the industry
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As South Africa’s visitor numbers pick up, revenues are returning to a tourism industry that suffered a post-World Cup dip compounded by the effects of a tough global environment. Tourism performance, particularly in the higher-value segment of the market, remains somewhat muted – however, as traditional target markets continue to slow, the visitor mix is beginning to shift subtly. As such, businesses will have to develop new strategies to cater to the changing visitor dynamics in the market. Centre…

Analysis

Working from within: Despite low income levels, domestic tourism shows great potential for growth
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With core source markets in Europe experiencing weak growth, tourism figures remain fragile. Domestic tourism, which accounts for 72.4% of total trips or visits, could be a boon to the sector given global circumstances, but this segment has also been stifled to some extent in recent times. Indeed, a struggling local economy and income pressure are hampering attempts to maximise the potential of domestic tourism. In the third quarter of 2012, the number of domestic trips in South Africa fell by 12%…

Interview

OBG talks to Thulani Nzima, CEO, South African Tourism
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Interview:Thulani Nzima How much room is there for increasing visitor numbers from African markets? THULANI NZIMA: Our traditional markets of Europe and North America, while starting to show recovery, are not growing as rapidly as emerging markets – with Asia showing double-digit growth rates and Africa contributing around 8.5% of total tourist arrivals. Some people are surprised when talking about African potential because not only is the base large, but Africans are also proportionately…

Interview

OBG talks to Arthur Gillis, CEO, Protea Hospitality Group
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Interview:Arthur Gillis How much of an impact does seasonality have on hotel trade in the leisure segment? ARTHUR GILLIS: Since summer coincides with the festive season in the southern hemisphere, the bulk of domestic leisure travel is over the December-January period with a slightly smaller “season” occurring around Easter. The inbound summer market usually picks up in early November and goes right through to May. Because we’re fortunate to have such a diversity of climate and scenery,…

Analysis

Playing host: Capitalising on infrastructure, the country looks to attract new event and business tourism
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Some momentous sporting occasions have come to pass in South Africa in the post-apartheid era, such as the Rugby World Cup won by its hosts in 1995. However, no previous events have been as momentous for the country’s tourism industry as the 2010 FIFA World Cup, a spectacle that attracted over 300,000 visitors directly for the event and that reached 3.2bn viewers around the globe. Aftermath The World Cup had a substantial direct impact on South Africa’s hospitality industry and its economy…