South Africa is an attractive tourist destination for foreign travellers on the African continent. It ranks 27th out of 128 countries in the world when it comes to visitor arrivals.
Its attractions are its wildlife and cultural experiences, wheretourists engage with the traditions, history and way of life of communities in vibrant urban hubs like Cape Town and Soweto.
Between 2000 and 2018 the number of tourist arrivals increased from 491 439 to nearly 6-million. The Covid pandemic put this trend into reverse. In 2019 over 10-million tourists arrived in the country. In 2021 the number fell to just over 3-million. There were signs of recovery in 2022 when the number went back up to 5.6-million.
There has been some recovery, but not to pre-pandemic levels. This has been devastating for the country. The tourism industry has been a driver of economic growth for the last 30 years. Last year it contributed 3.7% to GDP.
Traders in Cape Town
Informal traders in Cape Town offer an array of unique tourism products such as arts, crafts and leather goods. In the study, men made up 60% and women 40%. Some
followed in a family tradition, while others saw trading as their ticket out of economic hardship.
Several themes emerged: tourist dependency; tourist spending power; a pivot to the local market; and resilience.
Tourist dependency
There was a heavy reliance on tourists for clientele and revenue. Some traders relied on tourists for up to 95% of their business and turnover.
Tourist spending power
Traders said their turnover had not recovered to pre-pandemic levels. One of the traders expressed in follow up interviews in 2022 that her weekly sales were between R5 000 and R6 000 before Covid, but “now sometimes making even R1 000 a week is a struggle”.
Link to local market
The traders had little choice but to pivot towards products appealing to the local market. Some sold their personal possessions to survive, while others switched to selling essential items.
The return of the tourists
Traders firmly believed the return of international tourists was the only solution for the long-term sustainability of their micro-enterprises.
Next steps
Our study was designed to look specifically at the effect of Covid. This was a particularly hard time for many. The insights we gained provide valuable insights into the vulnerabilities of informal traders dependent on tourism beyond the immediate effects, and aftermath, of the pandemic. We conclude from our findings that there’s a need to revitalise the tourism sector with a particular focus on the sustainability and not merely a return to the status quo.
Some interventions we recommend include:
- Access to resources and training;
- Policies that support the contributions of informal traders;
- Access to markets, possibly via an online presence and partnerships with established businesses;
- Safe, affordable overnight storage for merchandise;
- Maintaining law and order – the recent taxi violence in Cape Town was a reminder that informal trade and the tourism sector depend on the quality of formal institutions; and
- Decisive measures to rebuild South Africa’s reputation, combating labels such as “dangerous”.
A bottom-up approach is needed.
- Fourie is a professor at GIBS, University of Pretoria and Blaauw is with the school of econonic science at North West University. The article first appeared in The Conversation
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