Tourist paradise, investor hotspot
Limpopo has long been a haven for wildlife lovers and hunters, adventure enthusiasts, culture creatures, twitchers (bird watchers) and those looking to recharge their batteries. According to Ndumiso Matlata, chief executive of the Limpopo Tourism Agency, the province’s tourism sector is now poised to grow and attract new investment. “The global growth in tourism presents an opportunity for Limpopo; the challenge is for the province to increase its global share,” Matlala told the recent Limpopo International Investor conference.
Globally about a billion people visit an international destination each year as leisure or business tourists. In 2015, tourism grew by 4.6% and the number of tourists is forecast to reach 1.8 billion by 2030.
Seventy percent of South Africa’s tourists come from the country’s six neighbouring countries, most visiting Gauteng to shop, enjoy the nightlife, and for social and business reasons.
Matlala notes that although Limpopo tourists are increasing their length of stay and therefore average spend, the province still attracts a low proportion of both domestic and international tourists. Tourism is a crucial growth source as it is mainly driven by SMMEs in areas such as transport and accommodation, alongside the large, established players.
He says most of the country’s annual 10 million international tourists hail from the US, the UK and Germany, but Limpopo only captures 2% of this market. “They come to the Kruger [Park] in Mpumalanga, then fly to Cape Town, then leave” is the standard industry joke.
Limpopo captures only 5% of the African market, with 97% of the continent’s travellers being Zimbabweans who primarily come for shopping but, by virtue of being overnight visitors, are regarded as tourists by Statistics South Africa. For the rest of South Africa key tourist markets in Africa are Mozambique, Angola, Nigeria, Kenya and Tanzania. In the domestic market, Limpopo captures just 9% of visitors, 38% of whom come from Gauteng and 4% from the North West.
Matlala says steps to improve tourism to Limpopo include supporting South African Tourism’s international marketing efforts and increasing destination awareness about Limpopo in core markets and neighbouring countries. The province also aims to increase leisure offerings for coastal visitors from KwaZulu-Natal and Cape Town, while offering weekend breaks to those from Gauteng, North West and Mpumalanga.
This aggressive marketing requires investment across the tourism value chain. But what is the tourism value chain and where exactly can one invest? Matlala says this starts with advising tourists about the product — in this case Limpopo — and creating opportunities through the travel agency business.
In South Africa, there are opportunities to invest in road transport but limited opportunities for air travel investment, as there are few privately owned airlines. Transport within the provinces via buses and shuttle services presents another opportunity for transport investment.
Provision of food and accommodation is big business, which is why Polokwane is brimming with hotels and bed-and-breakfast establishments as well as thriving, upmarket eateries such as Asha. Investing in site operators who run facilities can also be yield lucrative returns, especially at popular sites such as private game reserves. All of these investments will be supported by tour operators and the tourism board or agency.
One of the latest key tourism investments in Limpopo is the Park Inn by Radisson Polokwane, which is about to open in the city’s CBD. The hotel, which has about 170 rooms, was jointly funded by the National Empowerment Fund and the Industrial development Corporation (IDC) to the tune of almost R150-million.
Mofasi Lekota and his brother Makgaledisa have harboured a dream to open a classy but affordable hotel in the city since the build-up to the 2010 FIFA World Cup. Although Polokwane was a host city through the Peter Mokaba stadium, the city was bypassed on accommodation because the teams that played there and their travelling supporters drove in and out for matches.
The Lekota brothers nevertheless persisted with their vision, which they have now realised six years after the soccer spectacle. They see the opportunities for Park Inn in both the leisure and business travel segments, as Polokwane hosts both types of travellers. They also note the province’s strategic location to neighbouring countries as a key driver of business, which makes Polokwane a convenient stopover point.
Matlala says areas to think about investing in also include a Northern Kruger National Park concession, a game reserve in Polokwane to save weekend visitors a drive, recreational facilities, improvements in nightlife as well as the creation of a tourism hub in Phalaborwa-Hoedspruit.
He notes that Polokwane aims to grow its business tourism offering through both infrastructure and incentives, noting that only Johannesburg, Cape Town and Durban presently have proper convention centres.
Limpopo’s top tourist destinations are wide-ranging and include the Kruger to Canyons Biosphere Reserve, which was registered in 2001, the Stone Age site Cave of Hearths in Mokopane, Lake Fhunduzi and Thathe Vhondo Forest, Modjadjikloof and Thulamela.