Free trade area a boon for KZN
INCREASED international connectivity in the form of direct flights into Durban is set to accelerate tourism and economic growth in the region.
British Airways (BA) commenced in October with three weekly direct flights into King Shaka International Airport to boost the direct international air connectivity to and from the airport that was already provided by Emirates, Qatar Airways, Turkish Airlines, Air Mauritius, Proflight Zambia and Airlink.
The commencement of the direct BA service coincided with the airline listing Durban for the first time among its Top 19 Must-see Destinations for next year. The results of research released by Dube Tradeport (DTP) revealed that tourism into markets where airlines establish direct flights historically experienced a 30 to 40 percent growth within the first year of the route’s establishment.
Hamish Erskine, the chief executive of DTP, said passenger figures had grown significantly since Dubai-based airline Emirates began flying directly into Durban, adding that currently more than 60 percent of the market leaving Durban wanted to travel directly from the city. “The market is telling us that business and tourist travellers in Durban want to be able to fly from King Shaka International Airport and not have to be routed via OR Tambo in Gauteng,” he said.
Rory Wilkinson, the planning director at Tongaat Hulett Developments, who sits on the Route Development Committee that was responsible for developing direct international air connectivity for King Shaka International Airport, said the new route between Heathrow and King Shaka was a significant leap forward not only for the tourism sector, but also as a catalyst for propelling foreign direct investment and improving business connectivity between the two countries as well as with Europe.
Wilkinson added that tourism attractions, such as the proposed new international beach resort on the Kwazulu-natal north coast by Tongaat Hulett Developments, would maximise local participation and job creation, particularly among lower-level skilled people. However, Wilkinson stressed the ability to attract international tourists via direct flights underpinned these types of investments.
BA announced in May that it would include Durban on its direct service when it rolled out a 4.5 billion (R81.1bn) five-year customer investment plan. THE prospect of accessing a market of 1 billion people with a consumer buying power of $3.3 trillion (R46.7trln) is the main driver behind the establishment of the African Continental Free Trade Area (AFCFTA) and will provide a whole range of opportunities for Kwazulunatal businesses.
Trade and Industry Minister
Rob Davies travelled to Egypt this week to attend the third edition of the Africa Forum, which had as its theme “Bold Leadership and Collective Commitment: Advancing Intra-african Investments”, and the inaugural Intra-african Trade Fair which runs until December 18.
At the opening of the South African pavilion at the trade fair, Davies said Egypt was South Africa’s most important trading partner in North Africa and there was plenty of opportunity to grow bilateral trade.
“We believe that during the course of the Intra-african Trade Fair, South African exhibitors will find trading partners with the Egyptian business community and, hopefully, with other African countries too.
“When we look at trade with the continent from the South African point of view, there is an easy way of telling the big story. The story is that two-thirds of South Africa’s trade is with the world, while a third of the trade is with the African continent. Of the latter, two-thirds comprise trade in value-added products,” Davies added.
The UN Economic Commission for Africa estimated that full implementation of the AFCFTA could increase intra-african trade by 52 percent by 2022, compared with 2010, and KZN businesses could naturally benefit from this increased trade volume as KZN is the logistics hub for South Africa.
The AFCFTA aims to remove barriers to trade such as tariffs and import quotas to allow the free flow of goods and services, which should reduce prices for consumers and allow factories to exploit the benefits of scale and increased capacity utilisation. Increased intra-africa trade would also address the triple scourges of unemployment, poverty and income inequality.