2010 to help SA 'ride out the storm'
16 July 2009
Hosting the 2010 Fifa World Cup will contribute up to R50-billion to the economy from construction investment alone, with a further R15.6-billion being spent by tourists, Tourism Minister Marthinus van Schalkwyk says, all of which could help South Africa ride out the recessionary storm.
Addressing tourism and business leaders at the Sainsbury African Galleries at the British Museum this week, Van Schalkwyk pointed out that the country's successful hosting of the Confederations Cup, the Indian Premier League and the British Lions Tour recently confirmed its readiness to host the football world cup.
"The British Lions tour attracted 40 000 international supporters, mainly from the UK, with an estimated revenue of over R1-billion to the fiscus," he said.
According to a statement by the Department of Tourism this week, South Africa expects 3.5 million participants during the 2010 World Cup, including 1.3 million tourist participants - a third (445 000) of whom are expected to be foreign arrivals.
"In South Africa, we have more than 100 000 rooms that are star graded in line with international grading standards and these will be far more than sufficient to meet the expected demand for graded rooms," he said.
"The World Cup affords us an once-in-a-lifetime chance to showcase the best we have as a tourism destination, namely our people, our natural heritage, our world class infrastructure and a sense of place that fills all of us with pride."
Global marketing campaign
Van Schalkwyk said that South African Tourism had made significant investments in global media deals that include advertising, online marketing, editorial endorsement and targeted promotional campaigns.
"Together with exposure to billions of television viewers, 2010 provides an unparalleled opportunity to enhance the brand awareness of South Africa as a premier tourist destination."
He said that South Africa already had world class physical infrastructure and access, but this would be taken to new heights in the next eleven months.
"We are witnessing not only huge public sector investment in stadium and precinct development, transport, telecommunications, safety and security and ports of entry infrastructure, but also massive new investment adding up to some R20-billion in hotel and resort developments by the tourism industry itself," he said.
"These investments will also leave a lasting legacy beyond 2010. Likewise, 2010 brings a myriad of opportunities for [small, medium and micro-sized enterprises] and emerging tourism entrepreneurs."
South African tourism sector
Van Schalkwyk cautioned that while the tourism sector in South Africa had proved to be more resilient than some other economic sectors - it recorded a 5.5% growth in foreign arrivals in 2008 - it was not immune and some of the impacts would only be visible in the coming months.
He pointed out that during the last six months of 2008, at a global level, international tourist arrivals decreased to 2007 levels and hotel occupancy rates declined by close to 10%. During the second half of 2008 global tourism declined by some 2%, following the outstanding growth of 6% during the first half of last year.
By year end the best case scenario would seem to be a decrease in international tourism of 4%, with more realistic forecasts predicting a decline of at least 6% in global tourism in 2009, he said.
"Early indications point to negative growth in foreign arrivals in the first quarter of this year and subdued occupancy rates," he said.
He said it was important for the local tourism sector to learn from the current crisis, by building on its solid foundations of a strong domestic and African tourism market, its stringent quality control that ensured value for money, and the country's unique selling points of natural heritage.
"But we understand that we can do even more through improved market analysis, product diversification, skills development, maintaining and expanding affordable and more competitive air access and sound long term policy," he said. "From a risk management perspective we will continue to build, in a balanced way, our domestic, regional and long haul markets."
SAinfo reporter
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