INTERVIEW
Sisa Ntshona
CEO of SA Tourism
The tourism industry in South Africa is growing domestically and internationally, and solidifying a positive image of the country. Sisa Ntshona, CEO of SA Tourism, talks about the importance of South Africa's tourism industry and South Africa's role on the African continent.
"It is important to understand that Africa has a risk premium attached to it. Many economies around the world grow by 0 or 1 percent, where Africa’s economy grows by double digit numbers. However, the risk premium may in fact erode that margin. Investors will rather go to countries like the United Kingdom and America, because they feel unsure about the legal environment or the possibility of a civil war. If South Africa can be part of the solution to what makes investors feel unsure, everyone benefits. We do not operate in a vacuum."
FDI Spotlight: What do you think South Africa’s role is in marketing Africa to the international investing community?
South Africans look at the continent and see 54 different countries – the rest of the world does not necessarily see it the same way. More often than not we are seen as one, which is why it is important for South Africa to get involved with the rest of Africa and the issues the countries may face. What happens in the rest of the continent reflects on us. Ebola is a good example: we saw our arrival statistics from foreign markets decrease, with the percentage being in the double digits. The reason, essentially, was because of the Ebola outbreak. However, the disease was in West Africa, which is closer to London than it is to South Africa. Therefore, it makes sense to say that the disease is not just a West African issue, but an African issue.
FDI Spotlight: How important would you say South Africa’s tourism industry is to investor confidence regarding Africa?
We have what we call the tourism economy and the tourism industry. The economic impact of it is just enormous, which is why we have to ask questions such as ‘how do we shape this industry to run like a business so that its contribution to the GDP is higher?’ and ‘how do we use this space as the catalyst to kick-start the economy?’ At the moment, South Africa’s potential has not been tapped, and what we have showcased to the world has only been about 30 percent of what is available. There is space where we can really develop and bring in new players, and eventually bring in the townships into the tourism. SA Tourism is very clear around the 2 drivers that are there: economic growth, but inclusive growth. We live by that word all the time, so that we can transform the economy to reward those that have as well as those that have not.
FDI Spotlight: Do you agree with the word ‘Afropessimism’ and that the tourism industry can change the perception of Africa – considered the fastest growing continent in the world?
The industry’s presence, contribution and ripple effect on the economy has always been overlooked. In my opinion, tourism is the vessel that brings people into a country to stimulate economies. It educates its locals and the international community, which is what people need to understand. It is our duty to inform people about how we can bring new players into the economy and how we can expose new markets. Cultural tourism is a growing market, which is something the everyday South African does not necessarily know. They are still ashamed of their townships, even though it is probably the next biggest trend. Our country offers something for everyone on every day of the week, and we need to come up with a solution that holds policy makers, businesses and the average South African responsible and that benefits everyone.