Tourism a bright spot for SA despite recession

Robben Island, where many of the country's anti-apartheid activists were imprisoned, is one of South Africa's top tourist destinations. Photo: Flickr

Robben Island, where many of the country's anti-apartheid activists were imprisoned, is one of South Africa's top tourist destinations. Photo: Flickr

Published Jul 27, 2017

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Cape Town - South Africa's top tourist

hub Cape Town expects a 13 percent jump in tourist arrivals this

year to 1.77 million, officials said on Thursday, a rare bright

spot in an economy that slid into recession in March.

Cape Town has the country's four most popular attractions,

including Robben Island - apartheid's most notorious jail where

former president Nelson Mandela spent 18 years.

South Africa' economy is in dire need of some positive news.

It fell into recession in the first quarter of the year and

is seen in Reuters polls growing just 0.7 percent for 2017 as a

whole. Unemployment is at a 14-year high of 27.7 percent.

The country's credit rating, meanwhile, has been downgraded

to junk by two of the top three credit rating agencies.

But tourists have been coming, possibly encouraged by the

weak rand. It has falled more than 20 percent against the dollar

since a high last year.

Britain, Germany and the United States were the three

leading sources of tourist arrivals to the Western Cape

province, Alan Winde, regional minister of economic

opportunities in the Western Cape province, said.

"Tourism can help South Africa to course correct its current

economic trajectory," he told reporters.

Arrivals to Cape Town reached 1.56 million in 2016 from 1.38

million in 2014, with foreign spending rising by 3.6 billion

rand to 18 billion rand ($1.4 billion) over the same period,

Winde said.

According to South African Tourism, some 10 million

foreigners overall arrived last year.

Tourists numbers to the Western Cape, which was the

country's best performing region in terms of paid bed nights and

first time vistors, have recovered from 1.32 million in 2015

when strict new visa rules were implemented. The rules have

since been lifted and flights were also increased as tourism

rebounded.

The Treasury said in February that tourism contributed 3

percent to GDP in 2015, and 711,746 people or 4.5 percent of the

total workforce was employed in the sector.

"We believe that the tourism sector, which is not rand

hedged, has the potential to pull us out of recession and to

save and grow jobs," Winde said. 

Reuters

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