Figures just released by Statistics South Africa, paints a grim picture of the South African tourism industry.
In sharp contrast to the increase of nearly 5% in the arrival of tourists from across the world in 2014, South Africa has experienced a drop of more than 13% in the number of holiday makers from abroad.
The dominant role of the member states of the Southern African Development Community (SADC), is a feature of the official tourism statistics in South Africa. The grouping of 14 countries last year accounts for 74% of all tourist arrivals (more than 7 million visitors), but the majority of them travel to South Africa simply to shop, and without having to stay overnight.
Zimbabwe, Lesotho and Mozambique occupy the first three places in terms of visitors to South Africa. Overseas visitors are obviously most beneficial for the tourism industry because they often stay more than a week for a visit and spend much more money on a variety of goods and services.
In 2012 and 2013, the number of overseas tourists to South Africa was the highest by far compared to the world average, with growth rates of 15.2% and 5.9%. It is clear that 2014 was a watershed.
Obvious reasons for the recent weakening of South Africa’s image as a tourist destination include the following:
- The continued high incidents of crime. The strong propensity to violence in South Africa with crime associated, is of particular concern.
- Militant unions. South Africa has been beset by prolonged strikes last year which were often characterized by inflammatory statements by union leaders. Hence the frequent occurrence of violence during strikes, including intimidation, assault, arson and damage to property.
- The government’s intention to limit foreign shareholding in private security companies to a minority stake, fears that other industry sectors in the future will be subjected to the same type of regulation.
- The recent decision by the government to ban foreign land ownership.
- Social unrest in poor neighbourhoods in South Africa displayed all over the world.
- Combination of incompetence, nepotism, corruption and theft at government and local government level.
The government will have to decide soon on the desirability of new legislation that goes against the principles of economic freedom.
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