Bold steps needed to save tourism industry

There is no doubt that the local tourism sector is being subjected to inevitable varying economic strains owing to the international travel bans, lockdowns and restricting measures rightfully imposed by most countries to curb the spread of the Covid-19 pandemic.

The drop to almost zero in international tourist arrivals will negatively affect the balance sheets of everyone in the tourism value chain, thereby threatening millions of jobs.

A recent StatsSA Tourism and Migration Report depicts a 15% increase in the number of international tourists' arrivals recorded between January 2015 and January 2020.

This is indicative of a competitive tourism sector that has the potential to create more jobs and thereby help address the country’s socioeconomic challenges.

Predominantly, SA enjoys visits from the UK, Germany, US, China, France and The Netherlands. 

However, this may soon change owing to the coronavirus, which has badly affected the source markets.

This view buttresses a recent assessment by the Organisation for Economic Co-Operation and Development, which estimates an unprecedented 45% international travel decline in 2020.

Although domestic tourism will experience an equally heavy setback it is likely to recover relatively faster, to the benefit of SA’s economic revival.

To this end, the local tourism destination marketing fraternity needs to explore alternative source markets with similar spending and travel habits without providing low cost as a value proposition. 

This will ensure the diversification of source markets to shore up dwindling local tourism economies.

The post-Covid-19 landscape will be characterised by drastic changes in travel patterns and consumer behaviour.

Trends such as less long-haul travel and more frequent but shorter trips is likely to be a predominant feature of most itineraries.

For our tourism sector to remain resilient, stakeholders need to take bold steps. These should include radically redesigning the sector to promote domestic tourism while gradually building on existing international competitiveness through policy changes.

The year-round nature of domestic tourism should serve as a relief to a hard-hit industry on the verge of demise.

To create a vibrant domestic tourism sector, a policy that promotes dual pricing is required.

Such a policy would cater for both international and domestic markets with clear direct incentives for role players that engage in domestic tourism marketing and promotional campaigns.

Domestic tourism will not only serve as a cushion for the unavoidable effects the sector will be subjected to, but it will also ensure a more diverse and economically sustainable tourism sector.

The degree to which the local tourism sector would radically reform and adapt would determine its resurgence.

The "Do Not Cancel your Trip, Change the Date and Save Tourism" strategy doing the rounds on social media and other communication platforms assumes that Covid-19 is transitory to a point that it can be accurately predicted when it will over.

The reality is that the aftermath of Covid-19 could be characterised by permanent “experience-consumption-behaviour” in the tourism sector.

Even if international tourists were to resume their normal travel habits, which is highly unlikely, the repercussions of Covid-19 for the entire tourism value chain will be far-reaching.

More than ever, the current situation compels businesses to embrace digital technology.

Not only does this prove to be a much more cost-effective method of doing business, but it also expands market presence and footprint, a benefit businesses could enjoy after Covid-19.

This calls for major disruptions in the traditional tourism value chain.

A gradual shift from "brick and mortar" to digital tourism trade could be an answer to the extent to which the sector resuscitates itself.

Where applicable, virtual reality platforms should be seriously explored for selling and consuming tourism experiences.

This would keep local tourism relevant and vibrant while it indirectly addresses issues of environmental degradation and culture commodification, which cost our tourism economy dearly.

While commendable strides are being made to offer a reprieve to local tourism in a form of the Tourism Relief Fund for deserving role players, the sector needs to optimally use this crisis as an interval to reflect on its ability to better withstand future catastrophes.

There is a need for a proactive approach to building a crisis-resilient local tourism sector.

This can be done through the radical introduction of capacity-building programs aimed at local tourism role players; developing a self-sustainable and diversified local tourism sector and strategies to minimise the effects of economic downturns in the local tourism sector.

It cannot be doom and gloom for the local tourism, bold steps and major paradigm shifts are urgently required to move the sector forward.  

Ayanda Sondar is a qualified tourism practitioner. He writes in his personal capacity.

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