MSC Cruises South Africa is seizing Tourism Month as a key opportunity to kickstart efforts in revitalizing the tourism sector, which holds immense potential for contributing to South Africa’s economic growth. With the South African economy showing signs of recovery, the cruise line’s managing director, Ross Volk, believes the tourism industry can play a vital role in driving further development. Volk stresses that to fully unlock this potential, a new approach and commitment are necessary.
Volk acknowledges that while tourism currently contributes 3.5% to South Africa’s GDP, it still hasn’t returned to pre-pandemic levels. The sector employs approximately 733,000 people, still below the 777,686 employed before Covid-19. However, he sees this as a starting point, with a clear indication that tourism can do much more.
He points to the success of countries like Mexico (8.5% contribution to GDP), Morocco (7.1%), Greece (7.1%), and Italy (5.7%) as examples of what South Africa could achieve. Globally, tourism accounts for 9.1% of GDP, and Volk believes South Africa can aspire to such figures, given its wealth of natural and cultural attractions.
Addressing Key Challenges in South African Tourism
A significant obstacle to reaching this potential, according to Volk, lies in South Africa’s global reputation. Safety is a major concern for both visitors and citizens alike. “To become a preferred travel destination, we must prioritise the safety of our guests and ensure that South Africans feel safe in their own country,” he said. Volk also believes that addressing the issue of crime will not only create a more welcoming environment but will also lead to more positive news stories that could help shift perceptions of the country abroad.
Another challenge facing the sector is inadequate infrastructure. Despite South Africa’s scenic coastline, only about six ports are suitable for cruise liners, compared to the numerous attractive ports in the Mediterranean. Volk notes that even when ships dock in places like Durban, access to beautiful destinations like Phinda, Giants’ Castle, or St. Lucia is hindered by poor infrastructure, including limited roads and public transport options.
Small businesses such as tour operators and accommodation providers could thrive, but without the necessary infrastructure, opportunities are being missed. Furthermore, ongoing issues with water and power shortages add to the complexities hindering tourism growth and broader economic activity.
A Collaborative Effort to Reignite Growth
MSC Cruises South Africa acknowledges that these are multi-layered issues requiring time, investment, and collaborative effort to resolve. However, Volk is optimistic, citing the recent progress made with the Eskom turnaround as an example of how seemingly insurmountable problems can be addressed. He advocates for an open, solution-focused national conversation between stakeholders to tackle the pressing issues facing the tourism sector.
Volk emphasises the need for a renewed partnership between business, government, and citizens to drive sustainable growth. The government, he says, must create the policy framework needed to encourage business as a partner in economic growth. Meanwhile, businesses must recognise the importance of ethical practices, particularly regarding employment, to maintain momentum.
The growing collaboration between business and government to address the country’s challenges is a positive sign. This cooperation mirrors the principles behind the idea of a government of national unity, which reflects a step in the right direction.
Positive Tourism Trends
Despite the challenges, there are signs of recovery. In 2022, nearly 5.7 million tourists visited South Africa, with the country receiving over 2 million visitors in the first quarter alone. This is more than double the number from the same period in 2021. Additionally, there was a 12.3% increase in MICE (Meetings, Incentives, Conferences, and Exhibitions) trips taken in the first quarter of 2022, indicating that the business tourism sector is also picking up momentum.
MSC Cruises South Africa remains hopeful that by addressing key issues, the tourism sector can play a significant role in the country’s economic recovery, creating new jobs and boosting GDP in the years to come.
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