Travel and tourism to contribute R412.2bn to SA's GDP in 2017
Cape Town - The total contribution of travel and tourism to the gross domestic product (GDP) of South Africa was R402bn in 2016 (9.3% of GDP) and is expected to grow by 2.5% to R412.2bn (9.4% of GDP) in 2017, according to a report by the World Travel and Tourism Council (WTTC).
This includes the wider effects from investment, the supply chain and induced income impacts.
The forecast is that it will rise by 4.2% per year to R624.2bn by 2027 - 11.5% of GDP.
The total contribution of travel and tourism to employment in the country was 1.5 million jobs in 2016. This is 9.8% of total employment.
The forecast is that it will rise to 6.7% in 2017. That would be 1.6 million jobs or 10.2% of total employment.
By 2017, it is forecast that travel and tourism will support 2.5 million jobs or 13.2% of total employment.
By 2027 international tourist arrivals to South Africa are forecast to total 19 million. This is expected to generate expenditure of R271.3bn for the country.
Travel and tourism is expected to have attracted capital investment of R68.9bn in 2016. This is expected to increase by 0.6% in 2017 and by 4% per year over the next ten years to R102.5bn in 2027.
Leisure travel spending (inbound and domestic) generated 66.2% of direct travel and tourism GDP in 2016. This is R183.9bn compared with 33.8% for business travel spending (R94.1bn).
Business travel spending is expected to grow by 1.6% in 2017 to R95.6bn and increase by 2.6% per year to R123.6bn in 2027.
Domestic travel spending generated 53.9% of direct travel and tourism GDP in 2016 compared with 46.1% for foreign visitor spending.Read Fin24's top stories trending on Twitter: Fin24’s top stories