BUSINESS MAVERICK OP-ED: Progressive Prosperity:Turbocharging employment creation is within easy reach, and tourism is a great example

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BUSINESS MAVERICK OP-ED: Progressive Prosperity:Turbocharging employment creation is within easy reach, and tourism is a great example By Miriam Altman MiriamAltman

Employment creation is clearly possible in SA. Unemployment can be solved. The evidence? Between 2001 and 2008, there was economic growth, 2.4 million jobs were created, unemployment rates fell from 30% to 23% and about 20% of the population was pulled out of poverty.

The NDP employment targets would have required the creation of about 450,000 jobs annually, as compared to 141,000; About 300,000 fewer youths were working. Although there was job creation, almost all of these jobs went to those over the age of 35. ByThere are two temptations that must be resisted. The first is blaming it all on global dynamics. SA is deeply affected by global movements. The end of the commodity boom and other growth dampeners do not help. But SA underperforms relative to peer countries since 2008.

Tourism speaks to almost all the objectives of the NDP. About 60% of jobs go to youth and up to 70% to women. It is geographically dispersed, stimulates small firms, increases global commercial presence, injects foreign demand and earns foreign exchange, creates awareness for investors and fosters cultural understanding. SA already has a competitive advantage as recognised by the World Travel and Tourism Council .

The multipliers are significant, stimulating food and agriculture, the sales of vehicle, fuel, household articles and appliances; and finance and retail, among others. For everySo, tourism is an industry that seems a perfect antidote for many of our problems.There was considerable success initially, remembering that SA was a fairly closed economy under apartheid. International arrivals grew from around one million in 1990 to almost five million by 1997, reaching about 9.

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