In an interview with the Business Report, de Lille said her focus in this new role was to drive greater implementation of the Tourism Sector Recovery Plan and destination development and marketing and accelerate efforts on all fronts to help the sector create more jobs.
“Globally there are indications that tourism is recovering and people are beginning to travel, while airlines are also returning to South Africa. Last year was a promising year for the tourism sector as the first year when people really started travelling again after the Covid-19 pandemic.
“The numbers are encouraging, and the success of the tourism sector is a result of efforts and collaboration by both the public and private sector,” de Lille said.
The Minister said they are optimistic about this year as last year ended slightly higher than 2021, but still lower than 2019.
“The efforts by stakeholders in the tourism sector are notable, with recovery already well under way. This is evident in the fact that tourist arrival numbers between January and December 2022 reached 5.7 million. This represents an increase of 152.6% from January to December 2021.
“It is also encouraging to see that the biggest number of arrivals was from Africa, with an increase of over 4 million arrivals, a 126.6% increase between January and December 2022 compared to 2021.
“In 2022, arrival numbers from the Americas increased to 326 200, a 228.2% increase from 2021. In 2022, arrivals from Europe increased to over 900 000, a 314.6% increase from 2021. Arrivals from Asia, Australia and the Middle East increased to 223 768, a 265.9% increase from 2021.”
De Lille, however, said that the negative publicity around the country’s safety and the subdued South African economy, which impacted on the disposable income of would-be travellers, posed challenges for the sector.
She said the tough economic times affected the amount of discretionary expenditure for travellers. She added that another lowlight was the country’s limited aviation capacity, which has seen prices increasing.
“The cost of doing business is increasing and the costs are passed on to the consumer in an environment where there isn’t much disposable income which compels us to promote offerings that give value …
“To mitigate this, we must promote value-for-money products and travel. We are committed to navigating challenges by working in strong partnership with the sector and not dictating solutions.
“Solutions must come from the industry as they are the stakeholders on the ground and dealing with operations and challenges on a daily basis,” de Lille added.
She said that another highlight in the sector was the fact that business events were picking up, with business travellers spending more than leisure travellers.
“Business traveller visits also often lead to repeat visits with family and friends,” she said.
The Ministry said that it did foresee a growth potential in the sector going forward. However, it said that factors that may stifle growth were the continued stagnation of the global and national economies and perceptions about the destination.
It added that the destination brand strength should be maintained and bolstered.
“In terms of ensuring growth, we will be working harder on all fronts and with all stakeholders to increase visitor numbers and cost-effective tourism offerings in line with the objectives of the Tourism Sector Recovery Plan, approved by Cabinet in March, 2021, and which forms a central part of the country’s Economic Reconstruction and Recovery Plan,” de Lille said.
In Investec’s SA Economic’s Tourism Update, released on Monday, Lara Hodes said income derived from the tourist accommodation industry (accommodation only) fell by -0.4% (nominal terms) in January when measured on a month-on-month seasonally adjusted (mmsa) basis, when compared to an increase of 4.0% mmsa (revised) in December.
She said that calculated on an annual basis, however, receipts from the accommodation industry remained notably up when compared to the same period last year.
Hodes added that routine data gathered by the Department of Home Affairs (DHA) indicates that 2 746 648 travellers (arrivals, departures and transits) passed through South African ports of entry/exit during the month of January. This represents a -4.7% m/m decline from the seasonally significant December period. However, on a y/y basis, a 128.6% increase was logged.
“Looking at tourist numbers specifically, there was a 152.6% annual increase in January 2023. Those emanating from ‘overseas’ countries rose by 284.0% y/y, with travellers from Europe making up the largest share (around 69%). Specifically, tourist numbers from the UK and Germany climbed by 518.3% y/y and 290.1% y/y respectively to 40 044 and 29 363,” Hodes said.
De Lille said she will be outlining specific programmes and projects in the Budget Vote speech in May, which she said she will focus heavily on the Tourism Sector Recovery Plan.
“I don’t intend to reinvent the wheel, I intend to accelerate the Tourism Sector Recovery Plan and work with broader stakeholders in the tourism sector to accelerate implementation of the Plan.
“The Tourism Sector Recovery Plan contains a set of interventions to protect and rejuvenate supply, reignite demand and strengthen enabling capability to support the sector’s recovery,” de Lille explained.
“The goal is to preserve jobs and livelihoods within the sector, facilitate the creation of new job opportunities, match demand and supply, as well as strengthen transformation in the sector, including empowerment of women, youth and people with disabilities in the sector.
“The effective implementation of the Plan will be anchored on seven strategic interventions supported by catalytic programmes with specific actions, time frames and an indication of those responsible for the implementation of each strategic intervention,” she added.
BUSINESS REPORT