Tourism industry is replacing traditional gold exports as South Africa`s new economic engine, producing 53.9 billion rand…
Tourism industry is replacing traditional gold exports as South Africa`s new economic engine, producing 53.9 billion rand (8.29 billion US dollars) of foreign exchange a year and contributing about 7 percent to the country`s gross domestic product (GDP).
A study of the Standard Bank, one of South Africa`s leading commercial banks, also showed tourism is emerging as a significantjob creator, which is key to the country`s economy pinned down by unemployment rate as high as over 40 percent.
Forex receipts from tourism have topped that from net gold exports, which was 35.3 billion rand (5.43 billion dollars) last year, Tuesday`s newspaper Business Day reported.
Although the resources sector remains South Africa`s biggest export sector and forex earner, the economy has diversified significantly over the past 10 years to make manufactured exports and tourism major forex earners as well, said the report.
The tourism sector contributed about 7 percent to last year`s GDP, compared with 5 percent from the mining sector.
The research also showed the rand plays a much more subdued role in foreigners` decisions to visit South Africa than expected,which implies the sector is more resilient in the face of the rand`s strength.
This is in stark contrast to the damage the rand`s 40 percent gain against the dollar since last year has inflicted on the mining sector, especially gold mining, said the report.
Standard Bank economist Elna Moolman said tourist arrivals could increase by three percent next year, more than double last year`s growth rate of 1.2 percent.
The research showed most of South Africa`s visitors come from neighboring countries such as Lesotho, Swaziland, Zimbabwe, Botswana, Mozambique and Namibia, which accounted for almost 35 percent of tourism spending last year.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
