South African Business 2018 edition

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OVERVIEW Tourism Ten-million tourists visited South Africa in 2016. Growth of close to 4% propelled South Africa’s incoming tourist arrivals to over 10-million in 2016, with year-on-year statistics from China showing an increase of 38%. The Indian market grew by 22% and Africa accounted for about 7.5-million of the visitors. The UK remains the number-one source of overseas tourists with more than 400 000 visitors in 2016, followed by the US and Germany. There are 711 745 people employed in the tourism industry, with road transport (29%), food and beverages (20%) and accommodation (19%) absorbing the largest numbers. The sector contributes 9% to South Africa’s gross domestic product (GDP) and the national tourism ministry wants to increase that. The rise in tourist numbers follows determined efforts by national and provincial tourism bodies to promote the country. In Mpumalanga, links to BRICS countries have yielded results and in KwaZulu-Natal there has been a strong focus on the meetings, incentives, conference and exhibition sector (MICE). A dedicated unit within the KZN Tourism Authority, the Convention Bureau, has booked more than 50 events and conferences since 2012, bringing about R3-billion into the provincial economy. A Western Cape project to increase the number of seats on routes to and from Cape Town called Cape Town Air Access has been spectacularly successful. Cape Town International Airport’s capacity has increased by more than 600 000 seats in the two years that the programme has been running. Destinations include Turkey, Dubai, SECTOR INSIGHT The R500-million Zeitz Museum of Contemporary Art will attract international visitors to Cape Town. • Cullinan Holdings has expanded its tourist offering. • Cape Town Air Access has added 600 000 new aeroplane seats. Ethiopia, Victoria Falls and the Netherlands. A big push has been made to increase access to the US. Cape Town Air Access is a partnership between investment agency Wesgro, the City of Cape Town, the Western Cape Provincial Government, Airports Company South Africa, Cape Town Tourism and South African Tourism. SOUTH AFRICAN BUSINESS 2018 116
OVERVIEW The Port of Cape Town has launched its dedicated cruise-ship terminal, and the area between the terminal and the Cape Town International Convention Centre is being developed. The precinct, called the Yacht Club, includes a hotel, residential and commercial complex owned by the Amdec Group, and will be linked to the Waterfront by the extension of the existing canal. Elsewhere on the Foreshore, a major development is in the works which will include two Marriott hotels. In the Cape Town CBD there are going to be 500 new rooms, courtesy of two Tsogo Sun hotels, plus a smaller hotel in the De Waterkant (Capital Mirage). Tsogo Sun already operates several hotels in greater Cape Town, including three full-service hotels in the city centre, the Cullinan, Southern Sun Waterfront and Southern Sun Cape Sun. The other seven hotels cover five brands in the Tsogo Sun stable. Elsewhere in the Western Cape, Tsogo Sun has hotels in Caledon, Beaufort West, Mossel Bay and Plettenberg Bay. The opening of the R500- million Zeitz Museum of Contemporary Art in the Victoria & Alfred Waterfront in Cape Town made a huge impact in 2017. With a footfall of 24-million visitors going through the Waterfront every year, the Zeitz is well located to attract good crowds. It is expected to attract global art lovers as well. The conversion of the old grain silos which created 6 000m² of gallery space was paid for by the owners of the Waterfront, Growthpoint Properties and the Public Investment Corporation. The Waterfront has two new hotels: Radisson Red and the Silo Hotel attached to the Zeitz Museum. The Port of Durban envisages a 32 000m² area that will cater for two ships and at least 5 000 passengers. South Africa attracts 0.5% of the world’s cruise-ship market which comprises about 15.4-million passengers annually. South Africa is bidding for the Rugby World Cup 2023. The bidding committee claim that the tournament will produce an economic effect of R27.3-billion (direct, indirect and “induced”). The plan envisages using seven cities where existing infrastructure already exists. No major building will be necessary as South Africa has good stadiums. The international HSBC Rugby Sevens tournament was held for the first time in Cape Town in 2015 and has been successful. The City of Cape Town says that the tournament attracted more than 100 000 fans, at least 25 000 of whom were international visitors. The local economy benefited to the tune of R539-million. Trends The newest global trend in tourism, Airbnb, has come to South Africa. A total of 394 000 visitors stayed in Airbnb accommodation in South Africa in 2016, something that hoteliers and managers of guest lodges will have to take into account for planning purposes. Roughly 50% of the bed nights were taken up by foreigners with the majority visiting the country’s three big metropolitan areas. Cape Town and Durban showed the most growth, with 29 000 reported for Johannesburg. The Airbnb visitors in South Africa are estimated at have engaged in R2.4-billion worth of economic activity. Another trend that is being explored is Halaal tourism, a global market that is expected to reach $300-billion by 2026. The Western 117 SOUTH AFRICAN BUSINESS 2018
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SOUTH AFRICAN 2018 EDITION BUSINESS
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SANSA provides stateof-the-art grou
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Doing business in Durban Durban has
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O&M CAPE TOWN 2382/E IT‘S NOT JUS
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A city so good you’ll want to inv
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EPC IN POWER GENERATION Leaders in
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SOUTH AFRICAN BUSINESS 2018 12
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SPECIAL FEATURE Trends There are se
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SPECIAL FEATURE The Orange and Vaal
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MESSAGE City of Ekurhuleni Message
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PROFILE a powerful distribution cen
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Business expands into Africa Manufa
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SPECIAL FEATURE Automotive opportun
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FOCUS Export Credit Insurance Corpo
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SPECIAL FEATURE beneficiation of al
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SPECIAL FEATURE committed investmen
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Skills development Job-relevant tra
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SPECIAL FEATURE Roof maintenance sp
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INTERVIEW Training at Work Founder
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The hardest workers You shouldn’t
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INTERVIEW Meeting national developm
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PROFILE College of Cape Town The fo
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SPECIAL FEATURE 47 SOUTH AFRICAN BU
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SPECIAL FEATURE Local economic deve
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SPECIAL FEATURE Cape, the Small Har
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Western Cape The Port of Cape Town
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SPECIAL FEATURE KwaZulu-Natal With
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KEY SECTORS Overviews of the main e
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OVERVIEW of about four-million tons
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O&M CAPE TOWN 2382/E www.vwcommerci
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Page 87 and 88: OVERVIEW The national Minister of W
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Page 97 and 98: OVERVIEW The National Department of
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Page 134 and 135: FOCUS Positive change through enter
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Page 145 and 146: REGION The Provincial Government of
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