SOUTHERN AFRICA TOURISM REVENUE ON THE RISE?
the global network of luxury travel agencies lists adventure as the primary motivation for travel in 2018. According to their Virtuoso Luxe Report 2017, the forecasted emerging travel developments list South Africa as the number one world-wide destination for adventure. South Africa also received second place for best global destination and fourth for top emerging destination. The report lists that ‘travellers are seeking adventures in less explored areas and exploring new destinations has served as 2017’s top travel motivator. Travellers today crave active experiences that are customised to their interests and abilities, and are venturing all over the globe to find them.’
Tourism plays a vital role in Southern Africa, with benefits spanning into the economic, socio-cultural and environmental sectors. According to a report by the World Travel and Tourism Council (WTTC), the total contribution of tourism to South Africa’s gross domestic product (GDP) was R402bn in 2016 (9.3% of GDP) and is expected to grow by 2.5% to R412.2bn (9.4% of GDP) in 2018. The growth is forecasted to rise by 4.2% per year to R624.2bn by 2027, or 11.5% of GDP. The devaluation of the Rand, alongside the cultural and historical background, the beautiful scenery, relaxed visa regulations and added international air routes have all been the catalyst of South Africa remaining in the forefront as a tourist destination. SADC countries accounted for 73% of all South Africa’s foreign visitors in 2016. Based on tourist arrivals, Zimbabwe comes a close second as the most popular destination, and of the visitors from SADC countries, Angola and Madagascar were the only countries to report decreases in 2016. The WTTC 2016 statistics listed destinations with the strongest growth in international arrivals as Zimbabwe (+177,000), Mauritius (+112,000) and Seychelles (+43,000).
According to PricewaterhouseCoopers (PwC), overall hotel room revenue of foreign overnight visitors in South Africa, Mauritius and Tanzania rose 12.2% in 2016, the biggest increase since 2013. Mauritius and South Africa had the largest gains at 15.3% and 12.2%. Tourism is Tanzania’s largest industry, contributing to more than 17% of the GDP. Tanzania’s hotel room revenue resulted in a growth of 7.7% over 2015 and US$224 million in 2016. The introduction of 18% VAT on tourism services in Tanzania, in an effort by Government to improve infrastructure, will likely account for a decline in 2017; however, bookings that were made in advance of the new tax law resulted in an actual increase in tourism in 2016. PwC predicts that Tanzania will rebound after 2017, with a substantial increase (6.9%) in room revenue due to planned infrastructure investments, such as much-needed road improvement and power outages. There are planned improvements in aviation with upgrades to regional airports and Air Tanzania purchasing new aircraft from Boeing, with the result of increased routes and a stronger economy to support tourism, due to low inflation. The GDP is expected to grow by 7.2% in 2017 and remains one of the
