Mail & Guardian

Tourist paradise, investor hotspot

- Thebe Mabanga

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.

 ??  ?? Limpopo’s striking natural beauty makes it a tourism destinatio­n with a lot of potential. Photos: Limpopo Tourism Agency
Limpopo’s striking natural beauty makes it a tourism destinatio­n with a lot of potential. Photos: Limpopo Tourism Agency
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