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Sunny skies forecast for tourism
22 April 2004
South Africa has become one of the world's favourite travel destinations, and has recorded the highest number of foreign arrivals in Africa.
The fast-growing industry, attributed to the country's unparalleled scenic and wildlife attractions and its rich cultural and historic sites, has sustained consistent growth through the 1990s.
It is currently the third-largest foreign exchange earner and job creator in the country, and contributes more than R25-billion to the country's economy (8.2% of GDP) per year.
The latest tourist arrival figures are 5.9-million per annum, with 1-million from Europe, 200 000 from North America, 155 000 from Asia and the rest from other parts of Africa.
The World Travel and Tourism Council (WTTC) forecasts the following growth patterns:
- Government spending on toursim is forecast to grow to R4.9-billion.
- The share of private capital expenditure attributed to tourism will rise at about 5%
per year, focused not only on major hotel and resort development but also on game parks and guesthouses.
- Foreign visitor spending will continue to grow at more than 6% per year for the first decade of the 21st century.
- Capital investment should reach R47.8-billion by 2010.
Competitive advantages
The country has several competitive advantages that contribute towards strong growth in the industry.
Value for money
Due to its unique historical past, South Africa generally has first-world infrastructure - at third-world costs.
For example, a typical tourist development such as a game lodge in the Kruger National Park - one of South Africa's best – has a billing rate for tourists ranging from $170 to $500 per night per person, comparable to other developed countries.
In contrast, the cost of land is $4 per square metre, building costs are $270 per square metre, and the average wage cost is $150 per month.
Considerably lower than the first world, these costs make such investments highly attractive.
Tourism offerings
Eco tourism - South Africa has diverse climates, ranging from tropical in the southeast to desert in the central region. The scenery runs the gamut from spectacular mountain ranges to vast grass plains, coastlines on the seaboard to meandering rivers, sub-tropical regions to desert dunes, diverse flora to rich game and bird life.
There are more than 22 000 flora species, an estimated 5.8% of the world's total mammal species, 8% of bird species, 4.6% of the global diversity of reptile species, 16% of the total number of marine fish species, and 5.5% of the world's described insect species.
Cultural tourism – South Africa is home to diverse cultures, ranging from the fierce Zulus of KwaZulu-Natal province, who resisted European conquest, to the nomadic Bushmen
of the Karoo desert.
The many cultures have evolved their own unique and distinctive music, art forms and traditional rituals, symbolising their values and beliefs, and in contrast with those of the European settlers, whose descendants have evolved variations of their European roots. The development of the Afrikaans language, a local variant of Dutch, is an interesting example of this. Tourists interested in the human side of life will find this rich cultural diversity fascinating.
Adventure tourism - Being at the southern tip of a large continent, South Africa offers 3000km of coastline along with breathtaking mountains, often side by side. Water sports such as scuba diving, sailing, and fishing are very popular on several stretches of the long coastline. Mountaineering, hang-gliding, parachuting, bungee jumping, white water rafting, and 4x4 driving routes are available just a few
kilometres inland
Game parks – These have grown substantially in the last 10 years and are extremely popular as most offer a combination of game viewing and hunting. Private game lodges vary in standard from middle to very upmarket, with the luxury lodges catering almost exclusively to foreign tourists.
Paleo tourism – South Africa has numerous sites that have great archeological significance, the best known being the fossil hominid sites of Sterkfontein.
Conference tourism – With a combination of first-world infrastructure and a resort-like environment, South Africa is an excellent location for international conferences. In September 2002 the World Summit on Sustainable
Development, attended by numersous heads of state, was held in Johannesburg.
South Africa currently hosts approximately 80 to 100 international conference events a year, although this could rise to as many as 200 events per annum with appropriate new venues.
Domestic conference demand is estimated at almost 100 000 events per annum, but these are smaller, most with fewer than 100 delegates. In total, the industry is worth some 11.7-million delegates and 14.8-million delegate days.
Sports tourism - South Africa is a nation of ardent sports fans, and hosts as many international sports events as it can. The Cricket World Cup was hosted in 2003, preceded by a successfully hosted Rugby World Cup in 1995. According to tourism statistics, more than 10% of all foreign tourists come to watch or participate in sport events, with spectators accounting for 60% to 80% of these arrivals.
Sources: Trade and Investment South Africa (TISA), South Africa Business Guidebook 2002-2003

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Foreign visitor spending is expected to continue to grow at more than 6% per annum (Photo: dti) |
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