banner

brexit
1538 Views

Opinion: Brexit Will Benefit South African Tourism, The New Gold


From MoneyWeb. Story by Unathi Sonwabile Henama, tourism lecturer at South Africa’s Tshwane University of Technology.

South Africa has strong political, economic, cultural and social ties with its former colonizer, the U.K.

The financial markets suffered in the aftermath of the historic referendum to leave the European Union. Brexit has implications for the South African economy, and South Africa must focus on what it can control.

South Africa has been experiencing a currency crisis with the rand losing value against major currencies. This has hurt economic growth. South Africa is likely to enter a recession as the economy won’t grow more than 1 percent this year.

South Africa imports more than it exports, and this has led to a huge trade deficit as a percentage of GDP. The economy depends on foreign direct investment to drive growth, in line with the country’s export-led economic policy. The economy is also suffering from job shedding in mining as commodities prices have plummeted, and labor costs have increased, increasing the cost of doing business. The rand’s weakness has increased the cost of living.

The rand’s value loss means that South Africa becomes much more attractive as a value-for-money destination. Tourism is an export product that is consumed at the destination, because it is a service that is simultaneously produced and consumed. This means that the majority of value addition can happen within the country, in contrast to exporting raw materials and importing the final product — so prevalent in the mining sector.

South Africa has adopted a flexible currency model, therefore when the rand loses value, it’s time to sell South Africa more.

Tourism is the only industry that has the ability and potential to create labor-intensive jobs that can change the gloomy reality of poverty. Tourism is the “new gold” — it produces more foreign exchange receipts than gold mining.

The U.K. is the No. 1 international inbound tourism market to South Africa according to Stats SA’s Tourism and Migration April 2016, with 18.4 percent of all tourists. The U.S. is No. 2. Europe as a whole produces 58.8 percent of tourists to South Africa.

South Africa is the third cheapest destination for U.K. tourists after Portugal and Bulgaria. Tourists can counter the decline in the South African economy.

Read more at MoneyWeb.
Earn valuable CPD credits

Redeem your 50% discount

How to use product life cycle analysis to your advantage. (David Baggs)

Source: afkinsider


Follow Alive2Green on Social Media
TwitterFacebookLinkedInGoogle +

Recently Published

CODY FRIESEN
»

Zero Mass Water: Sunshine + Air = Water

According to the US Geological Survey, more than 99.7% of the ...

600x250-Mailer-Header-2018
»

WHAT IS THE AFRICAN REAL ESTATE & INFRASTRUCTURE SUMMIT?

Join us for the third edition of the award winning African Real ...

Schneider
»

Intelligent building operations increase green potential

Schneider Electric’s innovative building management, power ...

robot
»

Will robots enhance or eliminate jobs? SA’s first humanoid robot at Sustainability Week 2018

Science fiction is a thing of the past. Augmented reality has ...

»

Sustainability Week 2018 Newsflash: Robot to assuage labour concerns

All South African industrial stakeholders – companies, ...

Innovation
»

Schneider Electric innovations shine in Germany

In an ever-changing digital world, for everything from new business ...

candle
»

Load shedding highly likely this winter – energy expert

The possibility of load shedding by Eskom in South Africa this winter ...

SAEEC2
»

2nd Call for Papers: 2018SAEEC Conference

The President of the board of the Southern African Energy Efficiency ...

UTILITY WEEK2
»

Start planning your 3 days at African Utility Week now!

With 6 conference tracks, 5 co-located events, 1 breakfast, 4 ...