Cost advantages will boost tourism in Southern Africa

Subject

Outlook for the tourism sector in Southern Africa.

Significance

Last month, the African Development Bank's Africa Tourism Monitor ranked South Africa third on the continent for international tourist arrivals. In the wider Southern African Development Community (SADC), the travel and tourism industry contributed 20.6 billion dollars to regional economies -- 20.5% higher than in 2010. However, restrictive visa policies and poor coordination between member states mean the industry is performing below potential.

Impacts

• Growth in safari vacation offerings will focus on the luxury market in a bid to tap into resilient high-net-worth spending.
• Preparations for the 2022 Commonwealth Games in Durban will improve the city's tourism infrastructure.
• Protectionist policies will hinder cross-border low-cost airline growth, which will remain restricted to domestic markets.
• Several regional cities will compete to attract lucrative business conferences, increasing pressure to invest in world-class venues.