Putting the Multichoice decline in context
Lindsey Schutters
How tourism entrepreneurship can address SA’s youth unemployment
South Africa’s high youth unemployment presents a challenge, but tourism offers significant job creation and economic growth potential. Christelle Grohmann, director of advisory: strategic and development consulting, BDO South Africa, reflecting on the 6th Africa Youth in Tourism Innovation Summit (AYTIS), notes that tourism could become South Africa’s top foreign currency earner.
Source: Freepik
Recent figures show a strong recovery, with 420,727 European tourists visiting from January to March 2024, an 8.6% increase from the previous year.
Employment potential for young entrepreneurs
Grohmann points out that the rise of tourism startups is a positive sign for the sector. "The growth of the tourism industry is driving a thriving tourism startup revolution in the country," she notes. As of March 2024, over 130 online travel startups are active, with this number expected to grow. This influx of new businesses creates valuable employment opportunities and fosters skill development among young people.
The tourism industry offers diverse job prospects, from tour guides and front-of-house roles to positions in advertising, marketing, design, IT, and tech. Many startups provide training programs and online platforms that help young people acquire essential skills. "Through these programs, we have supported thousands of entrepreneurs," Grohmann says. Social enterprises within the sector also address challenges like poverty and education access, creating indirect job opportunities in local communities.
Challenges and the need for industry support
Despite these opportunities, aspiring tourism entrepreneurs face significant challenges. Grohmann acknowledges that “securing funding, navigating complex regulatory environments, and managing logistics are just a few of the hurdles that startups must overcome.” The competitive nature of the tourism industry, dominated by established players and global booking platforms, requires innovation and a clear value proposition to stand out.
Grohmann emphasises the importance of industry support for startup success. "Collaboration with established players and industry associations is crucial for survival and long-term success," she explains. Startups can leverage the brand recognition and distribution channels of larger companies, while established players can gain access to fresh ideas and innovative technologies.
The role of sustainable practices
Mentorship programs are vital, connecting startups with experienced industry professionals who provide insights into market trends and best practices. Industry associations offer valuable resources, including networking opportunities and training programmes.
Sustainable tourism practices, such as eco-friendly accommodations and community-based initiatives, are also gaining traction. “Leveraging the already established footprint of industry professionals who have an aligned vision for sustainable tourism practices can take both to a new level,” Grohmann says. This approach benefits both the environment and local communities, contributing to the sector’s long-term growth.
A call to action for youth engagement
With approximately 4.9 million unemployed youths aged 15-34 in South Africa, now is an opportune moment to capitalise on the tourism sector’s potential. "We must, as an industry, ensure that we are encouraging youth from all backgrounds to get exposure, develop skills, harness entrepreneurial opportunities and leverage their own cultural experiences," Grohmann concludes. This approach will support economic sustainability and positively impact society and the environment.
