The Mercury

African states must use digitalisa­tion to accelerate growth, says Siemens report

- KABELO KHUMALO kabelo.khumalo@inl.co.za |

SOUTH African Tourism and the Tourism Business Council of South Africa (TBCSA) have ramped-up the marketing of the country’s prime attraction­s with a 10-day trip across the world to woo visitors.

The two organisati­ons, who visited Switzerlan­d this week, said the global roadshow was meant to engage with key travel and trade stakeholde­rs.

SA Tourism and TBCSA said they had identified Austria, Germany and Switzerlan­d as key markets in central Europe. They said they would also be visiting the UK, US, China, India, Australia and Nigeria as part of a concerted effort to bring more tourists to South Africa.

SA Tourism acting chief executive Sthembiso Dlamini said key partners and stakeholde­rs had raised concerns with some barriers associated with travelling to South Africa.

“By engaging face to face, we are showing our commitment and our willingnes­s to assist our stakeholde­rs to position South Africa as an ideal holiday and business destinatio­n,” Dlamini said.

“Europe had exceptiona­l growth over the three-year period between 2016 up until the start of the water crisis in Cape Town and while we have not seen the growth we would’ve loved from this market since then, we need to understand what other reasons are there for this so we can work closely with our partners in Europe to ensure growth from this market.”

Tourism was flagged by President Cyril Ramaphosa in his State of the Nation address as one of the sectors that could absorb more people into employment.

He said tourism had the potential to more than double internatio­nal tourist arrivals to 21 million by 2030.

Home Affairs Minister Aaron Motsoaledi this month announced visa waivers for four countries in a bid to boost tourism and arrest falling visitor numbers. The waivers meant that visitors from Qatar, Saudi Arabia, United Arab Emirates and New Zealand would no longer require a visa to visit for either holiday, conferenci­ng or business purposes.

TBCSA chief executive Tshifhiwa Tshivhengw­a said the industry needed to work together to achieve 21 million internatio­nal arrivals by 2030.

“With at least 17 airlines connecting directly from Europe to South Africa, the region has huge potential and possesses the biggest source markets for Internatio­nal visitors to South Africa,” Tshivhengw­a said.

The tourism industry currently employs about 720 000 people directly and a further 1.5 million indirectly, accounting for 4.5 percent of all those employed.

The National Tourism Sector Strategy has set a target of creating 300 000 tourism jobs and opportunit­ies by 2026.

Tourist numbers declined 1.1 percent year on year in June with arrivals from Germany and France, Australasi­a and the Middle East declining sharply.

Investec economist Lara Hodes said visa waivers announced by the government was a positive step in arresting the waning visitor numbers.

“While these are positive developmen­ts, extensive work still needs to be done to boost this significan­t industry and substantia­lly increase its contributi­on to the economy,” Hodes said. DIGITALISA­TION offers Africa the opportunit­y to accelerate growth and rapidly expand struggling economies, but decision-makers must get strategies in place quickly in order to succeed, industrial manufactur­ing company Siemens said yesterday.

Experts say the urban population in Africa is expected to grow to 56 percent in 2050 from 35 percent in 2010, and this rapid urbanisati­on will require robust infrastruc­ture to ensure expanding cities are hubs of growth and commerce.

A report put together by Siemens in conjunctio­n with Frost & Sullivan outlined the current state of key industries across the continent, identifyin­g challenges and opportunit­ies with a focus on water, manufactur­ing, mining and minerals as well as food and beverage.

The study found that the adoption of digital technologi­es was expected to remain varied across industries, markets and geographie­s, with the impact favouring businesses and industries that seek relevance and increasing contributi­on in internatio­nal markets in addition to existing domestic markets.

“While advanced analytics and digitalisa­tion are witnessing growing adoption across certain industry sectors, such as the automotive sector, there is a real opportunit­y for adoption of these across industry sectors such as the mining and food & beverage industry which are significan­t contributo­rs to major African economies,” it said.

“Manufactur­ing, while the most mature in its transforma­tion and adoption of digital technologi­es in Africa, remains a marginal player struggling to make a bigger impact on country gross domestic product.

“The question government­s need to ask themselves is how they align a ‘here-and-now’ emphasis on job creation with the necessary focus on digitalisa­tion.”

It said expenditur­e in water infrastruc­ture had been low compared to the global average and had also been accompanie­d by poor water utility management.

The mining industry had seen subdued investment, rising cost pressures and increasing labour issues, the report said.

Siemens said the findings from the study were just a starting point which it hoped would begin a dialogue and provide a framework to some of the opportunit­ies existing for Africa.

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DAVID RITCHIE African News Agency (ANA) ?? THE VIEW of Cape Town from the Lower Cable Station on Table Mountain. The marketing of South Africa’s prime attraction­s will be ramped up.
| DAVID RITCHIE African News Agency (ANA) THE VIEW of Cape Town from the Lower Cable Station on Table Mountain. The marketing of South Africa’s prime attraction­s will be ramped up.

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