THE recent 0.7% decline in GDP for the second quarter of 2018, resulting in South Africa entering a technical recession, has unsurprisingly left the country reeling. Its effects will be felt for some time to come - and unless something drastic is done - the lifespan of the negative effects might last longer; particularly for the poor.
Of concern is that all of this happens against the backdrop of concerted efforts by President Cyril Ramaphosa’s administration to attract investment into the country to stimulate economic growth and bring about change in poverty, inequality and unemployment.
Agriculture, transport and trade were the largest negative contributors to growth in the GDP. A drop in the production of field crops and horticultural products, and a decrease in land, air and transport support services contributed to the decline.
This followed hot on the heels of a first quarter GDP decline by a massive 2.2% due to a decrease in agriculture, mining and manufacturing.
One sector that provides a window of opportunity in terms of growth is the tourism sector. If exploited tactfully it can attract not only tourists, but investment, employment and improve living standards. For this we need to look beyond the metropolis to the countryside, endowed with tourist attractions and historical sites.
Stats SA’s annual Tourism Satellite Account for South Africa report showed the tourism sector directly
contributed 2.9% to GDP in 2016. Despite its own challenges in the past years, the sector outperformed other key industries in terms of job creation, adding just over 40000 new jobs over five years from 2012-2016.
A recent World Travel and Tourism Council (WTTC) report states that in 2017 travel and tourism supported 1.5million jobs, accounting for 9.5% of total employment in the country. The report estimates that by the year 2028, almost 2.1million jobs will depend on travel and tourism. The tourism industry contributes 9% of the total GDP .
This sector needs nurturing, planning and careful "exploitation" for the benefit of economic growth and job creation. Like Soweto, South Africa is home to a vast array of townships that carry huge potential in attracting tourism and investment.
Soweto is known for its historical significance, including the tragic events of June 16, 1976, and being the only place in the world to have been home to two Nobel Peace laureates - Nelson Mandela and Archbishop Desmond Tutu. Tourists flock to Soweto daily. As a result Gauteng tourism contributes significantly to the GDP due to the interest.
Part of what is the iconic Soweto today may well have developed organically due to its historical significance. But as things stand, most of what attracts tourists has been deliberate planning including investment in infrastructure in the form of vibrant restaurants, historical monuments, annual commemorations, provided on sites like the Mandela house.
If we are deliberate in our efforts in taking advantage of the growing tourism wave, we need to start decentralising tourism attractions to areas like Sharpeville in the Vaal, Egazini in Grahamstown (recently termed Makhanda) and Brandfort in the Free State, among others.
Sharpeville holds historical significance - a great tourism attraction, but that potential is severely under-utilised. The only time you hear about Sharpeville is on March 21.
Grahamstown also holds historical significance, with sites including the battle site known as Egazini (Place of Blood), named after the 1818 battles of resistance. However, today, its streets are in disrepair, there’s an increase in squatter camps, unreliable sources of water and a backlog in modern sanitation facilities.
It has high levels of unemployment. The only time there is an activity is during the annual June National Arts Festival. Brandfort, where Winnie Madikizela-Mandela was banished for years, holds historical significance and is an opportunity to lure tourists.
Paying attention to some of these quick wins could help promote employment. However, we need to employ both soft and hard approaches in making our local spheres attractive for tourism and investment.
In terms of the soft approaches, municipalities need to appreciate the value and importance of branding themselves, starting with simple things such as websites, a gateway to their unique offerings. Developing identities in line with the special features of each locality - and to punt those hard enough to make it difficult for anyone not to visit.
As for hard approaches, we need to promote good governance, professionalism and visionary leadership. The reports of the Auditor-General and that of the Department of Co-operative Governance and Traditional Affairs (Cogta) are both telling in terms of the state of affairs in most municipalities, a situation that can only be overturned in the same manner as what created it - human behaviour.
There is also a need to develop small to medium enterprises and to create market access for them.
If we do these simple things deliberately and purposefully, our efforts would go a long way in ensuring that promoting brand South Africa and attracting investment not only happens at a high or national level, but that we also build from the ground up.
Ntsaluba has been an executive chairman of Amabubesi Investments (Pty) Limited since 2006 and serves as its chief executive officer. He is also a founding member of Amabubesi Investments (Pty) Limited.