SHOCKING statistics released by StatsSA in
May revealed that unemployment in SA has risen from 24.5% in the last
quarter of 2015 to 26.7% in the first quarter of 2016. That dramatic
rise in unemployment can be contrasted against the growth in employment
in the tourism sector. While manufacturing and agriculture are shedding
employees, tourism is steadily gaining them.
These eye-opening figures provide a snapshot of the situation:
• 5.714-million people were without jobs in the first quarter of 2016 compared with 5.2-million in the previous quarter.
• The tourism industry employs about 4.4% of all people employed in SA.
• One in every 12 jobs is in tourism.
• The manufacturing sector shed 331,000 jobs between 2008 and 2014.
• Agriculture shed 117,000 jobs in the same period.
• Tourism provided 48,000 more jobs in the same period.
• The total contribution of the tourism sector including wider investments and the supply chain is projected to grow from 9.5% of the GDP in 2015 to 10.5% of the GDP by 2025.
Globally tourism is seen as an opportunity for economies, and SA is well-placed to exploit this opportunity. The continued growth, albeit moderate over recent years as a result of the visa and birth certificate debacle has survived the current economic climate.
According to Stats SA’s Tourism Satellite Account (TSA), domestic visitors contributed 57% (R124.7bn) of total tourism spend in 2013, while international visitors contributed 43% (R94.2bn). Total tourism spend in 2013 was R218.9bn, a growth of 9.7% on R199.4bn in 2012. To make the mistake of only focusing on the international market would be grave.
Having worked in tourism for many years as an entrepreneur I have had many opportunities to experience and observe what works and what doesn’t: just entering the sector is no guarantee of success, and those stats about unemployment are about human beings who have lost their income.
A tandem approach works well: to highlight that which attracts international visitors as well as offering domestic travellers a value proposition. The exchange rate — favourable to international visitors — is not an extended opportunity. Exchange rates fluctuate and pricing will be adjusted to address international supply costs. This, in itself, presents a challenge — local tourism businesses, such as accommodation venues, risk pricing themselves out of the domestic market if they market themselves to the international exchange rate.
Keeping one eye on the economy is essential in the tourism sector, but, for entrepreneurs and innovators, the other eye must be looking for those unexploited gaps. This is the not-so-secret secret to tourism growth: the space allows for creativity and expansion with a heavy weighting on services rather than commodities. A business proposal need not rely on massive capital investment, and, with the right implementation and support, can gain in popularity and grow quickly.
Sustainability is central to this growth: while temporary employment is of benefit, year-round, full-time employment is far more attractive. Tourism should not be seen as a "summer only" opportunity, but those working in the industry must drive year-round initiatives that provide job stability. Skills and talent retention are the results of this, but the secondary goal of transformation is also extremely valuable: providing opportunities and support to historically disadvantaged individuals creates a wider growth opportunity than limiting the growth to formally-trained professionals.
Consider those in the industry: working with visitors (or even behind the scenes), how much more rewarding is tourism on a personal level than, say, back-breaking labour over an assembly line? Those working in manufacturing are to be valued, but tourism offers so many more opportunities for expansion and personal growth. It’s this inclusive growth that contributes to job sustainability and, ultimately, transformation. For those entering the industry right at the bottom, there is room for expansion and to work your way up to a point where you have more options concerning your career path.
The sheer scope of opportunity is exciting: hospitality includes working in front-of-house positions with guests; cleaning, security and maintenance are also vital roles. Then you have the more sophisticated jobs such as concierge, personal assistant, butler and chauffeur. All of these provide experiences which can be a stepping stone to the next level. For entrepreneurs, the range is even bigger; on starting your own company, you may have to do almost everything on your own until you can gradually employ others to carry the load.
I’d encourage successful entrepreneurs and business owners in tourism to pay it forward. Share how you messed up along the way and how you recovered, provide mentoring to those starting out. This experience is an invaluable resource.
One thing we have done as an organisation is to reach out to other entrepreneurs by establishing the Board Development Partnership. Each year the board of directors selects two historically disadvantaged individuals as entrepreneurs and supports their unique business proposal. In 2016 we have been fortunate to expand this to three individuals with Thebe Tourism Group coming on board to provide a third award.
Central to the success of this endeavour is not just the R50k cash injection for each recipient, but the support in kind they receive, including mentoring, website development and other practical means of support.
It’s not that tourism is seen as one big happy family, the sector is made up of hardworking business people taking risks, supporting families and focusing on however their business benefits visitors, but, I believe, this willingness to give others a foot up along the way is indicative of how inclusive our industry is. The ripple effect that SMEs have extends to businesses outside of tourism, the more tourism grows as a sector, the bigger the demand for local suppliers and manufacturers. Hotels are shifting to ordering fruit and vegetables from local growers, so this has the benefit of providing job security within the smaller agricultural sector, for example.
Another example is that of township tours: these rely on the partnership and participation of local businesses to provide the holistic experience visitors want. The tour operator may include fruit and food vendors, artists, musicians and other local businesses on one tour. One example of this is Sabu Siyaka, whose Ubizo tour in Langa includes and benefits eight other businesses. Thus, the tourism rand is distributed throughout a community.
It’s a personal investment. Tourism at its most successful is about people, both the visitors and those providing experiences and services for them. It’s easy to forget this when taking a look at dense statistics about employment, those devastating unemployment stats represent individuals, families and their lives. When we work together we are able to lift each other up and help to overcome challenges we face.
One thing’s for sure, there are opportunities for employment in tourism, especially if you create them and partner with those who have already worked in the trenches and know what challenges exist.
• Mally is chairperson at Cape Town Tourism and an entrepreneur
These eye-opening figures provide a snapshot of the situation:
• 5.714-million people were without jobs in the first quarter of 2016 compared with 5.2-million in the previous quarter.
• The tourism industry employs about 4.4% of all people employed in SA.
• One in every 12 jobs is in tourism.
• The manufacturing sector shed 331,000 jobs between 2008 and 2014.
• Agriculture shed 117,000 jobs in the same period.
• Tourism provided 48,000 more jobs in the same period.
• The total contribution of the tourism sector including wider investments and the supply chain is projected to grow from 9.5% of the GDP in 2015 to 10.5% of the GDP by 2025.
Globally tourism is seen as an opportunity for economies, and SA is well-placed to exploit this opportunity. The continued growth, albeit moderate over recent years as a result of the visa and birth certificate debacle has survived the current economic climate.
According to Stats SA’s Tourism Satellite Account (TSA), domestic visitors contributed 57% (R124.7bn) of total tourism spend in 2013, while international visitors contributed 43% (R94.2bn). Total tourism spend in 2013 was R218.9bn, a growth of 9.7% on R199.4bn in 2012. To make the mistake of only focusing on the international market would be grave.
Having worked in tourism for many years as an entrepreneur I have had many opportunities to experience and observe what works and what doesn’t: just entering the sector is no guarantee of success, and those stats about unemployment are about human beings who have lost their income.
A tandem approach works well: to highlight that which attracts international visitors as well as offering domestic travellers a value proposition. The exchange rate — favourable to international visitors — is not an extended opportunity. Exchange rates fluctuate and pricing will be adjusted to address international supply costs. This, in itself, presents a challenge — local tourism businesses, such as accommodation venues, risk pricing themselves out of the domestic market if they market themselves to the international exchange rate.
Keeping one eye on the economy is essential in the tourism sector, but, for entrepreneurs and innovators, the other eye must be looking for those unexploited gaps. This is the not-so-secret secret to tourism growth: the space allows for creativity and expansion with a heavy weighting on services rather than commodities. A business proposal need not rely on massive capital investment, and, with the right implementation and support, can gain in popularity and grow quickly.
Sustainability is central to this growth: while temporary employment is of benefit, year-round, full-time employment is far more attractive. Tourism should not be seen as a "summer only" opportunity, but those working in the industry must drive year-round initiatives that provide job stability. Skills and talent retention are the results of this, but the secondary goal of transformation is also extremely valuable: providing opportunities and support to historically disadvantaged individuals creates a wider growth opportunity than limiting the growth to formally-trained professionals.
Consider those in the industry: working with visitors (or even behind the scenes), how much more rewarding is tourism on a personal level than, say, back-breaking labour over an assembly line? Those working in manufacturing are to be valued, but tourism offers so many more opportunities for expansion and personal growth. It’s this inclusive growth that contributes to job sustainability and, ultimately, transformation. For those entering the industry right at the bottom, there is room for expansion and to work your way up to a point where you have more options concerning your career path.
The sheer scope of opportunity is exciting: hospitality includes working in front-of-house positions with guests; cleaning, security and maintenance are also vital roles. Then you have the more sophisticated jobs such as concierge, personal assistant, butler and chauffeur. All of these provide experiences which can be a stepping stone to the next level. For entrepreneurs, the range is even bigger; on starting your own company, you may have to do almost everything on your own until you can gradually employ others to carry the load.
I’d encourage successful entrepreneurs and business owners in tourism to pay it forward. Share how you messed up along the way and how you recovered, provide mentoring to those starting out. This experience is an invaluable resource.
One thing we have done as an organisation is to reach out to other entrepreneurs by establishing the Board Development Partnership. Each year the board of directors selects two historically disadvantaged individuals as entrepreneurs and supports their unique business proposal. In 2016 we have been fortunate to expand this to three individuals with Thebe Tourism Group coming on board to provide a third award.
Central to the success of this endeavour is not just the R50k cash injection for each recipient, but the support in kind they receive, including mentoring, website development and other practical means of support.
It’s not that tourism is seen as one big happy family, the sector is made up of hardworking business people taking risks, supporting families and focusing on however their business benefits visitors, but, I believe, this willingness to give others a foot up along the way is indicative of how inclusive our industry is. The ripple effect that SMEs have extends to businesses outside of tourism, the more tourism grows as a sector, the bigger the demand for local suppliers and manufacturers. Hotels are shifting to ordering fruit and vegetables from local growers, so this has the benefit of providing job security within the smaller agricultural sector, for example.
Another example is that of township tours: these rely on the partnership and participation of local businesses to provide the holistic experience visitors want. The tour operator may include fruit and food vendors, artists, musicians and other local businesses on one tour. One example of this is Sabu Siyaka, whose Ubizo tour in Langa includes and benefits eight other businesses. Thus, the tourism rand is distributed throughout a community.
It’s a personal investment. Tourism at its most successful is about people, both the visitors and those providing experiences and services for them. It’s easy to forget this when taking a look at dense statistics about employment, those devastating unemployment stats represent individuals, families and their lives. When we work together we are able to lift each other up and help to overcome challenges we face.
One thing’s for sure, there are opportunities for employment in tourism, especially if you create them and partner with those who have already worked in the trenches and know what challenges exist.
• Mally is chairperson at Cape Town Tourism and an entrepreneur
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