Tourism industry contribution to GDP back up after massive COVID-19 blow
Government’s announcement of the COVID-19 national state of disaster four years ago battered the industry.
Picture: 123rf.com/blasbike
JOHANNESBURG - The tourism industry’s contribution to gross domestic product (GDP) is back up after suffering a massive blow during the COVID-19 pandemic.
The industry was battered after government announced the COVID-19 national state of disaster four years ago.
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Flights in and out of the country were grounded, and borders were closed to curb the spread of COVID-19.
The latest Tourism Satellite Account report now shows that the sector contributed 3.5% to the economy in 2022.
This is up from 2.3% in 2021 and 2.1% 2020.
While this was an improvement, it narrowly missed the pre-pandemic figure.
The report also showed a resurgence in employment in the sector after the pandemic.
Post the pandemic, CEO of Business Unity South Africa Cas Coovadia said interventions were needed to address other economic challenges.
He said this included fixing the logistics and energy issues, as well as clamping down on crime and corruption.
“I think what’s been hampering business growth and businesses from bouncing back significantly from COVID is the broader environment.”
Big business believes better cooperation between the private and public sectors will help boost efforts for overall economic recovery.