Tourism & Local Businesses: Giving a helping hand with unemployment in South Africa?

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The South African economy grew by 2.2% in the third quarter and is well out of the recession trimester.

However, the country is hoping to recuperate in the business growth. The country also hopes that there will be more job opportunities available and that they will be a good rise in the economy growth. The government of South Africa believes that they will have closed the unemployment gap by 2030. The finance minister Nhlanhla Nene’s has reported that the recession will impact strongly on the government’s fiscal targets.

South African Minister of Finance, Nhlanhla Nene, during a SARS press conference held in Pretoria, South Africa on Tuesday April 3 2018 to announce the financial results of the tax collector. Pic: Waldo Swiegers / Bloomberg

From all across the country, crowds of National Government Organisations (NGO’s) self-owned entrepreneurs are currently owning their own companies and giving back to the community. Whether small or big companies, tourism in South Africa is big during the festive season and one can actually pocket an extra thousand rand from just the festive moment.  This is essentially a good growth in the South African economy and job increase. This opportunity will substitute a vast amount of needy graduates who need corporate experiences from any corporate business.

Even though the country may have a downfall regarding the economic growth, the tourism sector seems to be growing during this tough economic climate. In 2017, the tourism sector had its most successful year of job creation in recent times. It created 31 752 net new jobs in 2017. The road transport agency was more responsible for the bulk of tourism jobs in 2017. The industry was able to generate 16676 new jobs, followed by accommodation and air passenger transport. Statistics South Africa (STATSSA) stated that in 2017 the growth for tourism economy grew by 31 752 new jobs created.

Tourism is one of the biggest contributions towards the economy market of South Africa and a well-established community project that can influence the economy growth. Individuals are now investing more in property, opening a bed and breakfast (b&b), restaurant and even hostel is essential as the demand for accommodation will be high during this festive season.

Mayor Herman Mashaba hopes to release 50-100 buildings annually to the private sector for refurbishment. “The city council has given the go ahead to offer 71 buildings to the private sector to convert into low cost housing and student accommodation. This will attract R16bn to R20bn investment,” Mayor Mashaba said

South African statistics may show an unchanged figure of unemployment in South Africa by 26.7% of the first quarter in 2018. Approximately 6.0 million people are without jobs in the first three months of the 2018 year, and 5.9 million people in the last three months of 2017. In conclusion at least 36.7% have stopped looking for a job compared to the previous quarter. Essentially the first quarter of this year the increase of job opportunity was at 206 000 demand and that’s an equivalent of 100 000 jobs available in South Africa. Manufacturing grew by: 7.5%, agriculture 6.5%, transport 5.7% trade 3.2%, and finance by 2.3%.

The Statistics of South Africa on the 4th of December stated that the nominal GDP is estimated at 1027 trillion for 2018. Therefore, essentially meaning that the different sectors are well equipped and the Manufacturing sector was up by R14 Billion to R154 billion, transport and communication was up by R9 billion to R113 billion.

Study that was conducted by the MasterCard in South Africa said that even though most South Africans believe that Cape Town and Durban were the most popular destination, the country will be shocked to discover that the most popular destination that was visited by tourists in 2017 was actually Polokwane. Therefore, Johannesburg still stands as the most popular destination on average of 10.9% of nights and an equivalent of US$48 per day spent in Johannesburg.

The unemployment in the two provinces (Gauteng and KwaZulu-Natal) showed a substantial decrease.

November 2018, had South Africans screaming with joy when the President of South Africa was able to secure a big amount of investment. The investment deal will also benefit the Tourism chain by this it will make it more sufficient and easier to welcome tourism business from internationals and together with locals. Therefore remodelling the hotels and travel gives the foreigners a leaner spec about the country’s change. The Tourism Business Council of South Africa (TBCSA) CEO Tshifhiwa Tshivhengwa said that “there will be new businesses that will be in demand and that they will be more convenient for travel and accommodation guests.” with this the demand grows for tourist and for those wanting to visit South Africa, it becomes more sufficient for the locals to cash in money.

The SBA is a development used to encourage small businesses around disadvantaged communities. Lisa Ndyalivani, 33 year old female took the award of being the most overall winner of the small business academy (SBA) that were recently hosted by the university of Stellenbosch on Tuesday evening.

Tribal-Dancers-Meropa-Casino. Photo Credit: Babylon_travellers

Many organisations that have built themselves up are encouraging graduates mostly to start their own company and become self-reliant and contribute to denting unemployment in the country by creating an income for themselves. Owning a company is stressful, but a good investment too. The rand went from R14.11 to R13.85. Standard bank shed 3.29% to R172.80 while ABSA lost 3.36 percent t R154.14. The purpose of the small business academy is to make a difference to the lives and businesses of small business owners in low-income communities.

South Africa had welcomed a promising 10.29 million foreign tourists in 2017. The number of the tourists which are up by 7.2% in 2017 were upgraded to the previous year. Every year the numbers increase and therefore the country hopes to review the current tourist statistics for this month.

Phumzile Chifunyise, enterprise development manager, SAB and AB InBev Africa said that, ‘The number of jobs created by this small group of entrepreneurs provides positive evidence that entrepreneurship, if given the appropriate support and guidance to grow can make a meaningful impact on the challenge of unemployment that South Africa is currently facing.”

These jobs were supported by the SAB KickStart boost programme. This helped with the job creation target and giving the people who need jobs, a job. Entrepreneurship should be thought at a young age and learning to take risks should be strength and not a weakness. Local communities have even resorted to lending a spare room for the tourist to enjoy themselves. Many have even opened local restaurants so that the festive season is worth remembering.

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About Author

Lorraine is a South African based junior journalist with Nomad Africa magazine published by 2414 Publishing (Pty) Limited. She is very passionate about travelling and a lover of the African culture. Lorraine had a Diploma in Journalism from Rosebank College in Johannesburg, South Africa and worked as an intern with The Star Newspaper. Fluent in English and other South African languages she is very eager to learn about new cultures and traditions. Though she is still very new in the industry, Lorraine is vibrant and energetic for new travelling experiences.

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