De Lille has little time to save the day for struggling industry
The tourism industry in SA is at a critical juncture, which coincides with the recent appointment of Patricia de Lille as the new tourism minister. While De Lille’s energy and fighting spirit are encouraging, the challenges facing the industry are significant and the time frame for action is limited.
As the founder of a hotel group, I have witnessed the significant effect our industry has on the SA economy, contributing up to 6% of GDP. This is higher than the construction industry and more than agriculture, utilities and construction combined. With such a significant effect, I believe we have a right to insist that the industry receives the attention and resources it deserves.
In her first week as tourism minister, De Lille highlighted job creation in the industry as a priority. However, many in the tourism industry are sceptical of her ability to deliver on that promise. The reality is that the tourism and hospitality industries in SA are not operating in a growth environment. With tourism numbers down (with the exception of Cape Town) and margins under constant pressure, job creation in the current environment is unlikely, if not impossible and perhaps even “pie in the sky”.
Despite the enormous challenges we face as an industry, I am optimistic that De Lille’s fighting spirit and energy will help drive the industry forward. Her history as a whistle-blower in the early 2000s is evidence of her determination and willingness to take on controversial issues. However, the question remains whether there is enough time to make a significant effect on the industry. With elections coming up in 2024, there is the possibility of a new government and a new tourism minister, meaning De Lille has just one year to make a difference.
To make the most of her limited time, I suggest that the minister focuses on the areas that will have the greatest effect on the industry. Her first port of call should be a meeting with the Southern Africa Tourism Services Association (Satsa). This organisation is well positioned to provide the most accurate picture of the challenges facing the industry, including inbound and domestic travel, hotels and restaurants.
De Lille can get a sense from Satsa of the transport issues, visa problems and other challenges that need to be tackled to help tourism grow. If they have a frank conversation Satsa CEO David Frost will be able to give the minister a good overview of the 10 points he has been highlighting for the past decade, with little or no support from the government.
Since De Lille has limited tourism experience, it will be crucial for her to appoint a properly constituted board that includes people who are now in the industry and who understand the challenges it faces. This board can provide the necessary advice and perspective, including on ideas such as tiered pricing structures.
While De Lille has indicated that the government is considering making tourism more affordable for locals with the introduction of tiered pricing, recovering tourism establishments offering further “discounts” would be disastrous. The minister needs to consult widely on this issue before making any decision.
It is unnecessary for De Lille to reinvent the wheel. Instead, she should revisit some of the amazing ideas discussed in 2020 when the Tourism Sector Recovery Plan was launched. This plan, which is for some unknown reason SA’s best-kept tourism
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secret, was developed in consultation with private players in the industry and could be an essential tool for the minister to help the industry recover.
Similarly, she needs to take a serious look at the tourism safety and security programme, which was discussed at about the same time. Law enforcement agencies need to work closely with the industry to improve crime prevention, especially as crime is the number one negative factor affecting SA’s attractiveness as a tourism destination.
I would like to see the government provide tourism industry players with financial concessions, incentives, taxation relief and relaxation of impediments to help provide much-needed tourism-related stimulus. As an industry we are all ready, willing and able to work with De Lille — provided she is prepared to listen and act on the ideas we put on the table.
The new minister has a significant role to play in tackling the challenges facing the industry. By focusing on the areas that will have the greatest effect and working closely with industry players, De Lille can help drive the industry forward and ensure it receives the attention and resources it deserves.