ACSA celebrates it's vital role in SA’s tourism value chain

As the Airports Company South Africa (ACSA) celebrates its 30th anniversary this year, the state-owned entity reflects on the significant socioeconomic impact it's made since its inception.

As a key enabler of economic growth, transformation, and socioeconomic development, the company’s contributions can be seen in the previous financial year’s injection of a staggering R8,4 billion into South Africa’s gross domestic product (GDP) – positioning it as a vital role player in economic stimulation.

At the same time, ACSA has also established itself as a vital part of SA’s tourism value chain by developing world-class airport infrastructure. This infrastructure is designed to meet the needs of its customers and is aligned with industry requirements to support its vision of being a world-leading airport management business.

In South Africa, ACSA's current footprint includes airports in nine key business and tourism hubs, which service routes throughout the country.

“While we're celebrating ACSA’s 30th anniversary, we're also marking Transport Month in October, so it's only fitting that we take this opportunity to reflect on ACSA’s major contributions to the economy of SA and the vital role that it plays in the tourism value chain,” says Laurie Less, ACSA Group Executive of Corporate Services.

At a national level, ACSA’s network is a modal integrator that facilitates trade, tourism and investment. The organisation generates revenue through various sources, including aeronautical, non-aeronautical and commercial activities.

At a macro level, ACSA has developed a new global strategy to: further SA’s foreign and bilateral relations in trade, tourism and air transportation; contribute to the broader continental focus on airport development and management; endorse regional economic integration; and maximize the potential benefit to the Group of the African Open Skies initiative.

Less says ACSA is also exploring the diversification of revenue generation, with cargo being an area where ACSA could expand its role to other parts of the airports business beyond just the facilitation of passengers and aircraft.

In addition to contributing R8,4 billion to the country’s GDP in the past financial year, the organisation also contributed to employment with 16 225 jobs and an income contribution of R2,8 billion.

Less notes that improved connectivity is integral to ensuring that SA remains a competitive investment destination for trade and tourism, with route and traffic development a key part of ACSA’s work to ensure it grows its footprint and enhances its connectivity as an airport network, thereby boosting SA’s connectivity to global markets.

“ACSA has a centralized team that's tasked with looking after traffic development at all nine airports in its network. Our approach to route development is to look at partnerships with key entities and agencies that are within the aviation and tourism value chain,” she says.

“Since the formation of our business development team, we've participated in route development committees in each locality where we have an airport. These committees bring together critical stakeholders within the aviation and tourism value chain, allowing us to pool our resources to enhance our ability to develop traffic in all those regions.”

As such, ACSA not only provides airlines with world-class and secure infrastructure, but it also promotes tourism, economic growth and job creation, she adds. ACSA strives for excellence in all its business undertakings and continues to grow and diversify in an environment of rapidly changing markets, macroeconomic challenges, and a volatile aviation industry.

“While the impact of the Covid-19 pandemic on the global aviation industry has been devastating, we're confident that, with the foundation of a solid balance sheet, a strong reputation and an established competitive advantage, we're well placed to achieve full recovery and long-term growth,” Less says.

She adds that passenger traffic trends show the international tourism segment continues to be dominated by the European market, which accounted for 39% of international tourist arrivals pre-Covid. ACSA has thus identified the African market as a focus for development and ultimately aims to connect SA with every major city in Africa. This will significantly diversify the international source portfolio and support Africa’s integration agenda.

“ACSA remains committed to improving and expanding the infrastructure in our network to unlock both the commercial and development potential inherent in our airports and to grow our footprint, especially in Africa,” Less concludes.