When you follow the timeline of the implementation of the new visa regulations, it is easy to understand why the economy is stumbling and unemployment remains staggeringly high. The fact that for every seven tourists, one new job is created, should mean the government will take the tourism industry more seriously.
David Frost, CEO of the Southern Africa Tourism Services Association, recently reported a 32% year-on-year decline in tourist statistics for June, saying the visa regulations and the recent requirement of an unabridged birth certificate for children were key factors. He said the loss to the economy last year due to these regulations was about R2.6bn, with a potential loss of more than 5 800 jobs in the tourism sector.
Stakeholders across all industries have reported up to a 70% drop in business from China in October last year. In a recent UK poll, 61% of respondents said the new visa rules had put them off visiting SA.
Despite the outcry from all corners of the tourism industry, Home Affairs Minister, Malusi Gigaba, has turned a blind eye. So it is ludicrous that the Department of Home Affairs blames the tourism industry for its drop in ticket sales due to confusion over the new visa regulations. Spokesman, Mayihlome Tshwete, said recently that "if there is any sabotage in tourism, it’s being done by the very same people who claim to be protecting it”.
"Instead of taking the information we have given them and educating their constituencies, they’re … trying to cause confusion."
The Western Cape in particular has for the past year voiced its concern, raising red flags over the negative effect the regulations would have on the regional economy, and tourism in particular, by hosting public hearings in the provincial legislature to intense engagement and lobbying on behalf of affected stakeholders. Perhaps if Gigaba had met the industry, as he committed to, Tshwete would not be making such absurd statements.
In a recent report entitled ‘The Economic Benefits of Implementing the Yamoussoukro Decision’, published by the International Air Transport Association, the significant benefits of a single African air transport market were outlined. It identifies 12 African nations, including SA, and shows that deregulating and opening up regional air services could add 800 000 passengers through our airports, create 14 500 jobs and bring $283.9m to SA.
Transport Minister, Dipuo Peters, has committed fully to a single African air transport market by 2017. It is a welcome step and the economic spin-off will no doubt result in an increase in tourism, trade, investment and general productivity. However, Iata has warned SA that new regulations will be a serious impediment to this opportunity, standing in the way of growth and jobs not only in SA but in the rest of Africa.
It is obvious these regulations are a political hot potato in the government. The Congress of South African Trade Unions has publicly opposed the regulations, saying they will harm unskilled migrant workers, while Tourism Minister, Derek Hanekom, has said it would have a devastating effect on jobs and growth. At the World Economic Forum, President Jacob Zuma said SA was open for business, yet his legislation on travel contradicts him. Minister in the Presidency, Jeff Radebe, says the government has prioritised the revision of the regulations because "they have had an unintended consequence which needs to be addressed". The weekend media, however, reports that no such review is on the cards.
The "unintended consequence" is a failure by the government to act on the concerns raised from the beginning. The failure of the government to see the potential loss to jobs and growth is in itself a great travesty. The only way through this is for Gigaba to repeal the regulations before it is far too late.
