Cape Town - Over the past 60 years, the tourism sector has grown to become a pillar of the global economy, driven by political co-operation, social change and far-reaching advances in technology.
More recently, we’ve seen how global growth has lost momentum across the developing world and analysts believe the global economy (and hence the tourism industry) will never reach the same growth levels it experienced during 2007/8.
The US, for instance, will experience gross domestic product (GDP) growth of two percent to 2.5 percent for the foreseeable future, compared to growth of more than three percent in the past. And even China, global economic power that it is, has slowed. Instead of GDP growth above 12 percent, the metric is now below eight percent.
The monumental shift in the global economy is having a dramatic impact on the travel industry. Some of the joy has been taken out of living and travel because of political, environmental, social and financial challenges. Despite all of this, travel remains a priority, a needed respite, and people are seeking to “put the joy back into living and travelling”.
The quest for travel is no longer centred on mindless consumption; most consumers, especially from South Africa’s established tourism markets, want a simple, sustainable, and self-sufficient life. People hunger for community and yearn to get involved with causes larger than themselves. They want to engage in meaningful conversations and relationships. They want to get off the bus, linger and get lost in the hearts and homes of the places they visit.
There is an increased need for personalisation, with travellers demanding a central place in the planning and buying of their next trip. Destinations and companies that provide flexibility; immediate, personalised information; and people-centred, authentic experiences are the ones that will stand out from the crowd in the next two years.
A surge in last minute, impulse-driven bookings, shorter stays and more frequent trips closer to home demand that the industry becomes more flexible – reviewing their booking and cancellation policies and investing in digital marketing and communication solutions.
IPK International, the consulting group responsible for World Travel Monitor, the world’s largest international tourism market study with more than 500 000 participants, anticipates a three percent worldwide growth in tourism this year.
It also predicts further division in the sector with a seven percent growth in tourism demand in Asia’s emerging markets, moderate growth of two percent for Europe and no growth for North America. Social media will gain relevance, with 14 percent of outbound European travellers using it for travel information.
There was a dramatic rise in mobile communications last year, and 75 percent of the world’s population now has access to a cellphone. Last year, 16 million Americans booked trips via mobile, 33 percent up on 2011. Adults now spend more time on mobile than newspapers and magazines combined.
With the rise of mega cities in developing countries and urban tourism accounting for 80 percent of the world’s travellers, city trips grew 13 percent last year.
Countries outside the euro zone are booming, led by Russia; large source markets are stagnating, with France showing no growth and Germany and Britain only one percent growth. Crisis countries like Spain, Portugal and Greece are weakening further with negative growth.
Continuous innovation has to become part of the fundamental DNA of the destinations and tourism companies that will ultimately survive. Companies and destinations constantly have to rethink their strategies, keep innovating and take risks to gain ground on their competition.
Perhaps the biggest hurdle in the global macroeconomic recovery is consumer confidence. Violence and political unrest dominating the headlines in popular destinations like Egypt, Greece and South Africa has led to travellers staying away droves. Travellers are much less likely to travel if they lack confidence in the social, political and economic foundations of the destinations they want to visit.
This is significant for South Africa at a time when there has been a burst of negative international publicity around violence and labour unrest. In an industry where perceptions determine whether to travel or not, it is important to understand and counter economic, political and social instability and its effect on inbound tourism.
I believe that in this year and next tourism – and its affiliate public and private partners – should bunker down to put some serious strategy into action – a long-term vision for the decade and beyond.
The support of our national, provincial and local governments is pivotal to the success of tourism. Tourism should not only be concerned with attracting visitors to our shores, but more importantly should be recognised and used effectively as a vehicle to improve the lives of the people who live here.
Tourism will only weather the storms of global financial, political and environmental uncertainty if it appeals to different markets through well-packaged, quality-driven propositions in several source markets, new markets and our domestic market.
As a destination, South Africa has to be future-fit to ensure its relevance and effectiveness in a world that has changed forever. We need to build on our reputation as destination that is responsible, sustainable and offers non-generic, authentic people-centred experiences.
Importantly, we have to position tourism as a major economic engine and a viable career for inspiring young leaders – the kind we need to guide us through tumultuous change to a brighter and more sustainable future.
After all, nostalgia is the worst business model and we should never waste the opportunity that comes with a crisis. - Cape Argus
l Mariette du Toit-Helmbold is the chief of Cape Town Tourism, Cape Town’s official tourism marketing organisation.