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RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSA #3678/01 2911458
ZNR UUUUU ZZH
R 181458Z OCT 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 2322
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE

UNCLAS SECTION 01 OF 03 PRETORIA 003678 
 
SIPDIS 
 
DEPT FOR OES/PCI, OES/ENV, AND AF/S 
DEPT PASS EPA/OIA, 
 
SIPDIS 
 
REF:  Pretoria 3431 
 
E.O. 12958:  N/A 
TAGS: ETRD EINV EAIR SENV SOCI CASC CPAS SF
SUBJECT: SOUTH AFRICAN TOURISM INDUSTRY ON A POSITIVE AND RAPID 
GROWTH PATH 
 
¶1. (U).  Summary:  The South African tourism industry has shown 
significant growth since the country was democratized in 1994.  Over 
8.4 million people visited South Africa in 2006.   Tourism 
contributes more to the economy than the gold sector and that it 
employs over half a million people.  South Africa is expected to 
host over 400,000 people during the FIFA World Cup soccer tournament 
in 2010.  Various government departments and organizations, 
including the Department of Environmental Affairs and Tourism, the 
Department of Transport, South African Police Service (SAPs), and 
South African Airways are preparing for the World Cup.  Crime and 
skills shortages represent serious challenges for the industry. End 
Summary. 
 
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Tourism Booming 
---------------- 
 
¶2. (U) Hobbled by sanctions and domestic turmoil during the 1980s, 
tourism in South Africa rebounded after 1994 and is today one of the 
fastest growing sectors of the economy, contributing more than 8 
percent of GDP. (Note Post arrived at USD values by using the 
average annual rand/dollar exchange rate of 7.56 (2003), 6.45 
(2004), 6.36 (2005) 6.77 (2006).  Tourism contributed 8.3 percent of 
the GDP in 2006, making tourism significantly larger than the gold 
sector (which contributed 1.5 percent). End Note. 
 
 
 
 
 
 
Tourist Arrivals   Tourist Spending  Percent GDP 
 
2003 6,504,890       $7.13 bn      8.1 
2004 6,677,839       $7.41 bn      7.4 
2005 7,368,742       $8.79 bn      8.15 
2006 8,395,833       $9.75 bn      8.3 
 
 
¶3. (U) Most tourists come from Africa and the Middle East, followed 
by Europe.  Tourists from North America are relatively few.  The 
table below illustrates the tourists' arrival numbers by region of 
origin in 2005 and 2006: 
 
Arrivals by Region 2005    2006    Percent 
Of Origin         Increase 
 
Africa and ME  5,356,576  6,267,576  17.0 
Central Americas     47,818     54.421  13.7 
North America    274,281    303,675  10.7 
Australasia      95,818    108,425  13.2 
Europe   1,308,634  1,381,881   5.6 
 
-------------------- 
Government Priority 
-------------------- 
 
¶4. (U) Tourism Business Council of South Africa (TBCSA) CEO Matsatsi 
Marobe recently told EST Assistant that the industry employs over 
500,000 people and is well aligned with the economic priorities of 
the South Africa Government's Accelerated and Shared Growth 
Initiative for South Africa (ASGISA), an initiative established to 
increase GDP growth to six percent by 2010.  The industry is job 
intensive, women and small business friendly, geographically 
disbursed, and an excellent launching pad for BEE and small-scale 
entrepreneurship. 
 
¶5.  (U) The South African cabinet approved an International Tourism 
Growth Strategy (ITGS) and a Domestic Tourism Growth Strategy (DTGS) 
in 2003 and 2004.  ITGS was established to increase the number of 
foreign tourists, encourage longer stays, encourage and facilitate 
transformation (empowerment of the previously disadvantaged people) 
in the industry.  ITGS funded tourism market studies which 
identified Africa, North America, Europe and Asia as priority 
markets.  The government is now aggressively marketing South Africa 
in these regions. 
 
--------------------------------------- 
What Attracts Tourists to South Africa? 
--------------------------------------- 
 
¶6. (U) Tourists come to South African for various reasons.  Many 
Europeans come for safaris or business conferences.  Africans can be 
lured by shopping or medical care.  South Africa has eight world 
heritage sites, and ecotourism is one of the fastest growing tourist 
attraction areas.  All tourists can enjoy an "African" experience in 
a country where they can drink the water. 
 
PRETORIA 00003678  002 OF 003 
 
 
 
 
 
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Room for Improvement With Business Tourism 
------------------------------------------ 
 
¶7. (U) Eighteen percent of business tourists tour the country before 
attending business meetings or international conferences while 
twenty-two percent tour after these meetings.  Even so, South Africa 
Tourism (SAT) statistics show that only five percent of the 8.4 
million people who visited South Africa in 2006 came on 
business-related travel.  SAT figures show that business tourists 
spend on average USD 203.00 a day compared to the USD 70.20 spent by 
leisure tourists.  The Union of International Associations ranked 
South Africa twenty-third as a conference hosting country in 2005, 
and the International Congress and Convention Association ranked 
South Africa thirty-first in 2006. Cape Town, Durban and 
Johannesburg are the three most important convention sites. 
 
--------------------------------------------- ----- 
Preparing for the 2010 World Cup Soccer Tournament 
--------------------------------------------- ----- 
 
¶8. (U) SAT CEO Moeketsi Mosola stated at a tourism conference in 
Durban in May that over 400,000 people are expected to come to South 
Africa for the 2010 FIFA World Cup.  A FIFA (world soccer governing 
body) contractor Jaime Byron mentioned recently that they have 
already secured 27,000 of the required 55,000 accredited rooms.  The 
Airports Company of South Africa (ACSA) CEO Monhla Hlahla reported 
that preparations for effective air transport are well underway. 
ACSA is progressing with infrastructural developments in major 
airports to deal with the expected crowds during the World Cup. 
Hlahla advised that the Department of Transport drafted an airlift 
strategy in 2006, leading to the opening of new routes, and the 
introduction of new services and operators.  Hlahla said Air France 
and British Airways have increased their flights to and from 
Johannesburg, while China Eastern Airlines has now launched flights 
to and from South Africa.  Delta announced in September that it 
planned to inaugurate a new route between New York and Cape Town in 
March 2008 (REFTEL). South African Police Services SAPs) Divisional 
Commissioner Arno Lamoer stated that the South African government 
has budgeted USD 1.57 million for safety and security during the 
World Cup and that SAPS plans to deploy 193,000 police officers by 
¶2010. 
 
---------------------------------------- 
Challenges Faced by the Tourism Industry 
---------------------------------------- 
 
¶9. (U) DEAT Minister Van Schalkwyk stated in a recent tourism 
meeting that crime remains a serious threat to tourism and could 
have a devastating impact if not addressed.  Tourists have reported 
baggage theft at airports, hotel theft, credit card fraud and ATM 
muggings.  The rate of contact crime incidents such as car 
high-jacking, assault, rape and murder is high in South Africa. 
 
10 (U) There is a concern among travelers about the South African 
Government's policy of requiring two blank pages in travelers' 
passports.  A query to South African Airways (SAA) confirmed that at 
least 12 travelers per month are refused entry at O.R.Tambo 
International airport (Johannesburg) because of failure to comply 
with this requirement.  EST Assistant made enquiries with a 
Department of Home Affairs (DHA) official and was told that the 
Immigration Regulations Act of 2002, 2(e) stipulates that a 
traveler's passport must have at least one unused page for the 
purpose of endorsing a visa or permit, and in the event of extending 
a traveler's stay.  The DHA official also said that to the best of 
her knowledge South African missions overseas and airline carriers 
are adequately informed about this regulation.  The official also 
noted that airlines should screen passengers' passports and refuse 
boarding for those who do not comply with the rule. 
 
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Comment 
------- 
 
¶11. (U) The South African tourism industry is a significant 
contributor to the country's economic growth and employment, and has 
demonstrated the success of the government's tourism investment and 
marketing strategy.  South Africans are very enthusiastic about 
hosting the World Cup in 2010, but South Africa may have to solicit 
external support for infrastructure development from countries such 
as the U.S., Germany and Britain because of the shortage of skilled 
labor.  It remains to be seen weather the South African government 
and the tourism industry will be able to overcome existing 
challenges, such as distance, airline capacity, a relatively strong 
 
PRETORIA 00003678  003 OF 003 
 
 
exchange rate and an unacceptably high level of crime, and continue 
to increase tourism's contribution to the South African economy. End 
Comment 
TEITELBAUM