How the falling Rand currency can affect Tourism in South Africa
South Africa is a popular tourist destination, with around 860,000 arrivals per month, of which around 210,000 is from outside the African continent.
It is reported that in 2012 South Africa received 9.2 million of international arrivals. According to the World Travel & Tourism Council, travel and tourism directly contributed R102 billion to South African GDP in 2012 and supports 10.3% of jobs in the country alone. Now with the falling rand currency, this number has and is likely to drop. Tourism is regarded as a modern-day engine of growth and is one of the largest industries globally. In 2012, G20 heads of state recognised tourism as a driver of growth and development, as well as a sector that has the potential to spur global economic recovery.
South Africa has earmarked tourism as a key sector with excellent potential for growth so even though the government aims to increase tourism’s contribution, both direct and indirectly, to the economy from the 2009 baseline of R189,4-billion (7.9% of GDP) to R499-billion by 2020 (National Department of Tourism, 2012). Other foreign markets in the tourism industry play a role therefore the weak rand will just increase unemployment. It is then safe to say Tourism supports one in every 12 jobs in South Africa.
Regardless of our falling currency, we are still regarded around the world as one of the desired tourist locations in Africa and among the main attractions are the diverse and picturesque culture, the game reserves and the highly regarded local wines. South Africa’s spectacular scenery, friendly people, world-class infrastructure make it one of the most desired destinations in the world.
Read more: http://www.southafrica.info/business/economy/sectors/tourism-overview.