To better understand the economy of the tourism industry, it is essential to look into the historical developments of tourism in South Africa over the last two decades, and to evaluate the current structure of the tourism industry as indicated in Figure 3.1 on page 30.
3.4.1 Tourism in South Africa pre-democracy
Although a number of publications, like the tourism 10 year review publication, and an article by Sharpley and Roberts (2004:119-121) focus on the tourism industry in South Africa from the 1990’s and after democracy, the industry in South Africa was well established before this point. Grundlingh (2006:104-107) explores the beginnings of tourism in South Africa,
indicating that it was begun in an atypical manner through military movement to the country and exploration.
Tourism during the National Party’s rule in the 1950s experienced a decline in international travel, but a growth in regional travel, with travellers from Rhodesia and Mozambique, as well as certain international countries like Germany. This increase was attributed to migration due to the increasing South African economy (Turok, 2012:8-11). This was also a time in South Africa when segregation was heightened and tightened, and the Reservation of Separate Amenities Act, (Act No 49 of 1953) was introduced. The Act aimed to separate the use and allocation of resources, education and jobs, as well as to offer higher quality of these resources to the white population of the country (South African History Online, 2014). As Burger (2004:205-215) states, this time saw the increase in boycotts and activities in the country mainly motivated by the African National Congress (ANC) for social change, as many of the acts passed in the 1950’s excluded black South Africans from economic participation in this decade.
The world was going through a change during this period resulting from increased levels of manufacturing, which affected how countries interacted and conducted business. The introduction of Boeing 747 aircraft in the late 1960s reduced cost and time of travel. Global demand for air travel was increasing, and it was at the time when international tourist arrivals in South Africa saw a spike (Noland, 2015). The type of tourism that was increasing at this time was retailers mostly travelling to major cities (Lubbe, 2000:29).In the period between 1963 and 1964 the Department of Tourism was established, focusing on policy development and increasing interest in South Africa as a tourist destination. To improve quality of the tourism and hospitality offerings, a Hotel Board was also established, which focused on grading lodging establishments for standardising services in the hospitality sector (Lubbe, 2003:27-28).
In the 1970stechnological advances which helped improve the transportation industry, resulted in a boom in the international tourism market (Gartner& Lime, 2000:5). This upward trend in South Africa suffered from policy resistance movements, like the 1976 turbulent Soweto uprisings and 1980s states of emergencies (Grundlingh, 2006:114;South African History Online, 2014). The Labour Relations Acts introduced a different climate in 1987 to1988, during which the first black women qualified as air hostesses on South African Airways. This phase in the country was critical as there was a move to deregulate the Group Areas Act in order to allow black individuals to operate businesses in the then African residential areas (Cooper, Shindler, McCaul, Hamilton, Beale, Clemans, Kruger, Markovitz, Seimon, Brouard & Shelton, 1998:68 & 589).
3.4.1.1 Political impact and racial discrimination effects on tourism
Under the apartheid rule, tourism in South Africa was considered as “anti-developmental” (Rogerson & Visser, 2004:4). As racial segregation escalated, access and the experience of tourist attractions, national parks, and SAA remained exclusive for white South Africans. Policies were adopted in which black South Africans were labelled a “threat to wildlife” (Rogerson & Visser, 2004:4). Communities were uprooted from the traditional homelands, which were earmarked for national parks, which would later operate as tourist attractions (Carruthers, 2007:294). As laws were put in place to regulate land and business ownership, it prevented the black population of South Africa from participating in business opportunities or accessing tourist attractions. These segregation laws coupled with the lack of business skill transfer over the years delayed the entry of previously disadvantaged individuals into the tourism business arena (Rogerson & Visser, 2007:63).
3.4.1.2 Tourism education
At the 1998 Job Summit (Rogerson & Visser, 2004:4), real developments in tourism education and awareness in South Africa began to take place as the tourism sector emerged as a possible solution to the unemployment crisis. Tourism education leading to higher education needed to strike a balance of educating prospective graduates on their own venture management, while training future employees, as the latter is the status of tourism education in South Africa (Pinar, 2010:57).
Previously disadvantaged citizens are new entrants into the service industry in terms of venture ownership. They struggle to develop and grow successful tourism ventures due to a number of reasons, with the main one being the legacy of apartheid on the tourism and hospitality industry where previously there were policies put in place which strictly controlled and prohibited black ownership of business ventures (Binns & Nel, 2002:236-237).
3.4.2 Developments in the tourism industry post democracy
At the 2014 Tourism Indaba, the then Minister of Tourism, Marthinus Van Schalkwayk, highlighted developments that the country had seen in the tourism industry 20 years into the country’s democracy; most importantly, the increase in the number of tourist arrivals having tripled from 3.6 million in 1994, to 9.6 million (Indaba Daily News, 2014b:1). This growth reveals a shift of traveller preferences in accommodation establishments from traditional large hotel groups, to B&B’s and guesthouses, which big role-players in the industry are helping to coordinate (Indaba Daily News, 2014a:15).
Even with these developments, SMME structures have not improved greatly since 1994, and policy implementation is lacking in assistance of start-up businesses, especially for the previously disadvantaged (South Africa, 2014a: 97-98), where limited access and knowledge of creating business start-up funds exist (Cumming, 2012:690). There is hope, however, as local communities are beginning to realise the potential of tourism for business, which in time will provide work and training opportunities not only in major cities, but in smaller communities across the country (Morning Live, 2014).