MSC Splendida Cruise in Durban harbour. Picture: Doctor Ngcobo/Independent Newspapers
MSC Cruises South Africa yesterday said it sees Tourism Month offering a good opportunity to start collaborating about how to realise this sector’s enormous potential as the economy starts to show some green shoots.
The cruise line’s managing director, Ross Volk, said he did not think it was an exaggeration to say that tourism was the rocket fuel the local economy needs but, igniting it will mean a commitment to doing things differently.
“Today, tourism directly contributes around 3.5% of South Africa’s gross domestic product (GDP), and hasn’t yet regained pre-Covid-19 levels. It employs around 733 000 people directly, also still below the pre-pandemic level of 777 686,” Volk said.
He added it was a good start, but the figures showed the sector could do more. Tourism in countries like Mexico (8.5%), Morocco (7.1%), Greece (7.1%) and Italy (5.7%) makes a much higher contribution to GDP.
Overall, travel and tourism represent 9.1% of global GDP, giving an inkling of what we could achieve, especially given our generous endowment of natural and cultural attractions, he said.
“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 themselves 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 on addressing crime, and over time, more positive news stories will help shape a better narrative.
MSC Cruises South Africa said another important challenge was the lack of infrastructure. It said that for example, while the local coastline was stunning, there were only a handful of ports that cruise liners might consider attractive-around six in total.
In contrast, the Mediterranean said it has significantly more.
“Even when ships dock at places like Durban, getting guests to beautiful destinations such as Phinda, Giants' Castle, or St Lucia is difficult due to limited roads, trains, and vehicles. There's clearly potential for small businesses, like tour operators and accommodation providers, but without the necessary infrastructure, we may miss out on those opportunities,” Volk said.
Additionally, it said ongoing infrastructure issues such as water and power shortages posed further challenges for tourism and broader economic activity.
The cruise liner said these were complex and interconnected problems that would take time and concerted action to change.
“But, as we have already begun to see with the ongoing Eskom turnaround, it is possible to shift the dial even on what seemed like a pretty much existential problem a year ago. Perhaps the place to start is a transparent, frank national conversation between the main stakeholders, a conversation that focuses strictly on solutions.”
Volk said what was absolutely necessity will be a new compact between business, government and citizens.
“The government is crucial as it has to provide the policy framework needed and, in addition, it has to see business as a valued partner in achieving its goal of economic growth,” he said.
“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.”
The company said the growing collaboration between business and government to tackle significant issues that have stunted the growth of the country was a positive example just as the very idea of a government of national unity reflected a step in the right direction.
According to South African Tourism, in 2022, nearly 5.7 million tourists visited South Africa, and in the first quarter of last year the country received over 2 million visitors, more than double the amount in the same period last year. There was a 12.3% increase in MICE (Meetings, Incentives, Conferences and Exhibitions) trips taken during January and March last year.
BUSINESS REPORT