The World Travel & Tourism Council (WTTC) has revealed that the travel industry will be the driving force behind South Africa’s economic growth over the next decade.
A favourable forecast for the SA travel industry
According to a forecast from WTTC’s Economic Impact Report, the South African travel industry is forecast to grow at an average rate of 7.6% annually over the next decade, significantly overtaking the 1.8% growth rate of the country’s overall economy.
By the year 2032, the travel and tourism industry’s contribution to the national GDP could reach more than R554.6 billion – a whole 7.4% of the total economy – introducing nearly R287 billion into the national economy, reports Tourism Update.
In conjunction to that, the sector is also expected to create more than 800 000 jobs over the next decade, aiming to reach more than 1.9 million by 2032.
By the end of this year alone (2022), the travel industry’s contribution to GDP is expected to grow 37.2% year-on-year, to nearly R268bn – 4.3% of the total economy. Employment in the sector is also set to grow by 38%, reaching more than 1.1 million jobs.
Julia Simpson, WTTC President and CEO, said that with this GDP contribution and jobs on the rise, the long-term forecast for SA looks very positive.
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Recent relaxed restrictions was a welcome for the industry
The industry recently rejoiced and happily welcomed the news from Health Minister Joe Phaahla, when he effectively put an end to the last remaining COVID-19 restrictions.
The Tourism Business Council of South Africa (TBCSA) were particularly jubilant about the news.
“We particularly welcome the decision to suspend the travel restrictions for entry into South Africa, the wearing of face masks indoors and the easing of restrictions on public gatherings. Outdoor activities, as well as large social gatherings are the backbone of the local tourism industry. Many businesses in the industry are yet to recover financially or even get back on track due to the restrictions,” they said.
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