Economic Opportunities
What economic and job creation effect does the new visa application regulations have on the Western Cape tourism industry and (b) how does this affect South Africa as a tourist destination?
It is estimated that new visa regulations have cost the Western Cape economy R384 million in the first three months of this year.
Statistics South Africa reported 6% decline in the number of foreign tourists visiting South Africa in the first quarter of this year, compared to same period last year. This translates into a loss of 150 000 tourists.
An independent study by Grant Thornton Advisory Services estimated this cost the national economy R1.6 billion.
Given the fact that the Western Cape’s share of the national tourism industry is approximately 24% by gross expenditure, this represents a R384 million loss to the Western Cape economy.
Tourism directly accounts for 3 % of GDP and 4,6% of employment. When considered at the broader indirect and induced economy level it accounts for 10% of employment; 1 in every 10 jobs is dependent on travel and tourism.
These jobs are on the line. In order to save economic growth, the National Government must withdraw the regulations completely.
- How do the new visa regulations affect South Africa as a tourist destination?
The impact of the visa regulations is evident in the sharp decline in the number of foreign tourists.
In addition, The Tourism Business Council of South Africa released its Quarter 2 Tourism Business Index last month.
It found that in the most recent quarter, the tourism industry recorded its lowest performance in the past four years.
Over 23% of respondents stated they had been impacted negatively by the new visa regulations. A further 18.7% reported similarly in respect of the unabridged birth certificate requirement.
It is clear that the visa regulations are have a disastrous effect on our economy.
