South Africa should follow Croatia’s example and become a world tourism leader

I’m reading a fascinating book by Bob Woodward called Fear in the White House which gives some insight into the chaos that has been created by Donald Trump.

In an early chapter, before he took on the presidency, Trump requests a briefing from Gary Cohn, a former Goldman Sachs president who went on to serve as Trump's economic adviser before being fired along with most of Trump's other lieutenants. In the briefing, Cohn paints a fairly positive picture for the US economy but warns that open global trade is the key to its success. Clearly, the red-headed loose cannon didn’t listen to this advice. Populist leadership and nationalistic, protectionist policies are now the flavour of the day globally. And in South Africa, it has created another reason for angst regarding the well-being of our already fragile economy.

I’ve been fortunate to have been involved in businesses of travel and tourism for most of my career. Kulula was a disruptor which made air travel accessible to a much broader market. My focus over the past few years has been building a unique new boutique hotel offering in South Africa. I’ve always found business to be complex and challenging yet highly stimulating and rewarding. One of the hardest things is to figure out what you’re really good at relative to everyone else and how you can build on those strengths and build new ones.

Croatia is an interesting case study. Like SA, This country has had a violent and troubled recent history. Its population of 4 million people live in a tiny country of 56 thousand square kilometres (SA 1,2 million). Over the past two decades, it has more than tripled it’s tourist visitors to 18 million in 2017, making tourism one it’s main economic contributors. Croatia has built itself one of top 20 tourist destinations in the world and offers year-round attractions including a growing skiing industry in the winter.

Here is why South Africa is positioned to be a world beater at Tourism:

We have the most beautiful and diverse natural attractions – pristine coastline, dramatic mountains and of course the African bush;

We have a weak currency and offer a “premium” tourist experience on a “value” budget ;

Middle Eastern airlines like Emirates have made access from anywhere on the globe easy and affordable (Emirates flies into SA eight times every day);

We have people that are perfectly suited to hospitality and can easily train many more – South Africans generally are hospitable and kind;

We have water in Cape Town.

Competing effectively in a global economy means we can’t rely only on our superb natural and human resources. We also need to continuously tap into our creativity to invent and re-invent our offerings. The Cape Town International Convention Centre compares with the best in the world and recently added a massive new wing to the precinct. The SLOW airport lounges also compete with the best in the world in terms of design and experience. The Citysightseeing Hop-On Hop-Off bus company is magnificently run in Cape Town and recently opened up in Johannesburg as well. South African businesses know how to innovate and deliver.

We have in the palm of our hands an opportunity to capture a delicious slice of a massive and growing global industry insulated from trade wars. Our country’s leadership see it – Cyril mentioned tourism as a key contributor to the economy in his first State of the Nation address. We also have generous tax incentives like Section12J that make investing in tourism and hotels very attractive.