South Africa’s tourism sector set for more turbulence

Significance

Tourism has been identified as a priority sector to drive economic recovery in the government’s recent strategy, as well as in the recovery strategies agreed by business and labour, but the sector’s revival will likely take time.

Impacts

• The government will face growing pressure to accelerate long promised reforms such as e-visas and visa waivers to boost overseas tourism.
• Efforts to create a more enabling environment for international tourists could be undercut by worsening crime levels amid rising employment.
• Industry proposals to create a new ZAR15bn (USD1bn) enhanced tourism support fund between government and business have yet to materialise.