New immigration regulations can hurt the economy

STATISTICS SA has revealed a 6 percent decline in foreign tourists visiting our country. That translates to 150 000 tourists fewer compared with the same period last year entering South Africa.

One of the reasons given for the decline is the implementation of South Africa’s new immigration regulations in respect of children’s unabridged birth certificates. Although it is a step in the right direction to eliminate child trafficking, it also serves as a deterrent to single parents who travel with their children.

According to a report by Grant Thornton, the loss of revenue to South Africa is R1.6 billion. Travel agencies have also reported a decline in people leaving the country to go on holiday. The effectiveness of the immigration regulations is proving to be a disadvantage to the economy. It has to be monitored very closely. With a loss of 150 000 tourists in a single quarter, this figure needs to stabilise over the longer term as tourists become familiar with the new law.

Could it be that tourists visiting Africa are giving South Africa a miss because of its new rules? Will the government re-evaluate its new immigration policies if tourism continues to decline?

Tourism brings into the country foreign exchange and it creates employment. With the unemployment rate in South Africa at approximately 25.3 percent, job shedding due to declining tourists will be devastating for our economy. A clearer picture will soon unfold.

The determining factor from a South African perspective will be how to balance the effects of child trafficking with the decline of tourists if this trend continues. Will there be a balancing act or will the new immigration law be repealed? Only time can answer this question.