Tourism industry plays crucial role in growing GDP

The Tourism Business Council of South Africa (TBCSA) says the tourism sector contributed 3.7% to the national Gross Domestic Product (GDP), prior to Covid 19. Picture: Armand Hough / Independent Newspapers

The Tourism Business Council of South Africa (TBCSA) says the tourism sector contributed 3.7% to the national Gross Domestic Product (GDP), prior to Covid 19. Picture: Armand Hough / Independent Newspapers

Published Sep 18, 2024

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The Tourism Business Council of South Africa (TBCSA) says the tourism sector contributed 3.7% to the national Gross Domestic Product (GDP), prior to Covid 19.

TBCSA chairperson, Jerry Mabena, said the country was making steady progress as it was recovering by injecting some 2.3% in the year 2021.

“Our industry has a huge impact on the services sector, manufacturing, and agriculture.

“It employs a significant number of young people in both urban and rural settings. Tourism has very few barriers to entry for both skilled and unskilled workers.

“For many years, tourism has been in the top three export earnings levels for the country. This is a critical industry that needs to be leveraged better by all of us in both the private and public sectors.

“In recent times, we have seen some of our sector’s listed establishments realising significant revenue growth as they released their financial results.

“These results demonstrate the strength of tourism, and therefore, the need to give the sector more attention and support,” Mabena said.

He said all this translated to real jobs for people.

“As the private sector lobby, we have partnered with organisations such as the Youth Employment Service (YES) to provide workplace experience for young people interested in tourism as a career.

“The entire value-chain of the industry is committed to this initiative. We are walking the talk.

“Our TBCSA office, for example, has transferred skills through interns who have graduated to full-time members of staff in the past four years.

“One of our interns has taken her on-the-job training to a work opportunity overseas. Many of our partners have similar stories to tell, and we continue to recruit more young people across the value chain of the tourism industry.”

The TBCSA chairperson said like many of its African peers, South Africa had a large population of young people, who through their skill and talent, can significantly contribute to economic growth.

According to him, the United Nations (UN) highlighted the benefit of having young people as part of the workforce, which it referred to as the “youth dividend”.

“Many of these young people are found in rural settings of South Africa. These areas would thrive if proper support was given to grow our rural economies.

“We need to be a country where people on the outskirts do not think moving to urban areas is their only solution to putting food on the table. The tourism sector is perfectly poised to function in these under-served hinterlands.

“We can offer not just cultural tours, but jobs for those who reside in these areas. What these remote areas are crying out for, is undivided attention that’s purposeful.

“We are committed to this cause and believe that we need to hold hands to intentionally employ as many young South Africans as possible,” Mabena added.

Another key area the sector was keen to advance in the tourism sector, was to establish a robust working relationship with some of the country’s development finance institutions (DFIs).

“We appreciate the support we have received from players such as the DBSA, IDC, and Sefa on our journey so far. However, more support is needed.

“The launch of the Tourism Equity Fund, together with other incentive programmes that are administered through the Department of Tourism, is critical for SMME development, entrenching transformation and inclusivity.

“These programmes are critical and need continuous funding and support. The jobs we create rely on our tourism businesses having sufficient capital investment to survive and thrive for future generations.

“We need investment in infrastructure, especially in the age of energy supply challenges and scarce water supply.

“Many businesses lack the funds to buffer themselves against these mountains that seem insurmountable at times,” said the chairman.

The agency is expected to hold its annual tourism leadership conference from September 18-20, where all these issues would be discussed.

The Star