Could tourism be the answer to SA Youth Unemployment?

The tourism sector in South Africa has been growing in the past years, from seeing a spike in holidaymakers to more tourism-related businesses being established.

The country continues to offer domestic and international tourists a wide range of options. These range from game reserves to diverse cultural heritage sites, rolling wine estates, and an abundance of stunning coastlines.

Christelle Grohmann, director for advisory – strategic and development consulting at BDO says the sector received 420 727 tourists arriving from Europe between January to March 2024.

This is an 8.6% increase from the same period in 2023. “These numbers prove that the country is well on track to once again become a sought-after destination.”

The sixth edition of the Africa Youth in Tourism Innovation Summit (AYTIS) held from 28 May to 31 revealed numerous opportunities for people to take advantage of in the sector.

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Tourism startups

Due to the recent growth of the sector, she says tourism is a pool of opportunities for employment and entrepreneurship.

When it comes to entrepreneurship growth, there has been a growth in the number of tourism startups. She says as of March 2024, there were over 130 online travel startups and she believes this number is still going to grow.

The new businesses opening in the sector bring innovation and cater to the evolving traveller preferences. But is this enough to bolster youth employment?

There is a range of opportunities in the sector, from tour guides to front-of-house workers, to advertising, marketing and design, financial management, IT, tech and more.

When it comes to connections, she says startups are creating platforms that connect businesses with young freelancers for tasks like web design, graphic design, virtual assistance, and content writing. This way the youth can monetise their skills and gain valuable work experience.

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Challenges faced by tourism entrepreneurs

She says becoming a tourism entrepreneur can come up with challenges. This can include securing funding, navigating complex regulatory environments, and managing logistics.

However, the challenges must not scare anyone from entering the sector. She describes the tourism sector as a competitive sector, as it has established players and global booking platforms dominating the market.

“Catering to niche markets or offering unique experiences can be a differentiator, but identifying and fulfilling specific customer expectations requires market research and a clear value proposition.”

Collaboration can come in handy

One other to reach the top is through collaboration. Ventures between startups and established players can be mutually beneficial. She says, for example, that a startup can leverage the brand recognition and distribution channels of larger companies, while established players can gain access to fresh ideas and innovative technologies.

“Startups often have an innovative edge and entrepreneurial hunger while established players have the industry experience to offer invaluable guidance.” It is through mentorship programs that collaborations can be born, which will provide insights into market trends, best practices, and operational expertise.

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Unemployment rate in South Africa

The latest available statistics from Stats SA note an increase in unemployed people in the first quarter of 2024. The youth unemployment rate at the time stood at 45.5%, these are individuals between 15 to 34 years old. The national average stood at 32.9%, which was an increase of 0.8% compared to the fourth quarter of 2023.