Can South Africa's Tourism Boom Survive Its Own Government's Regulations?

David Cogswell
by David Cogswell
Last updated: 3:15 PM ET, Tue August 19, 2014

PHOTO: Cape Town has become one of the most popular tourist destinations in the world.. (Photo by David Cogswell)

New regulations imposed by South Africa's Department of Home Affairs are landing a body blow on the country's tourism industry, according to some members of the industry.

The new regulations, which will become effective Oct. 1, require tourists with children under 18 years of age to present copies of unabridged birth certificates upon entry into the country. Single parents will have to present an affidavit of consent from the other biological parent.

David Frost, CEO of the Southern African Tourism Services Association (SATSA), said that the regulations threaten the viability of the tourism industry.

"During my 18 years in the tourism industry, I have often reminded myself how fortunate we are in South Africa," wrote Frost in an open letter. "Other destinations are sometimes plagued by exogenous shocks - think of acts of terrorism in Kenya, floods in Mozambique or tsunamis in Asia. Yet we now face a moment in which the viability of the South African tourism sector is under threat. The irony is that this is not from terrorism or acts of nature, but from regulations imposed by our own Department of Home Affairs."

The regulations were designed to help fight child trafficking, a human rights issue that remains largely under the radar because of its covert nature. According to ECPAT (End Child Prostitution and Trafficking), an organization leading the fight against child sex trafficking, 1.2 million children are abducted by underground trafficking networks every year. According to the Polaris Project, 27 million people are now held in modern-day slavery.

RELATED: Tour Guide Breaks Guinness Record to Fight Human Trafficking

Killing the Goose

But as well intentioned as the regulations may be, they could affect the rapid upward trajectory of South Africa's growing tourism industry, one of the most vital economic drivers in South Africa.

The industry has grown by 337 percent in 20 years and has provided employment and improved standards of living for thousands of South Africans.

In 2009 the South African government prioritized tourism as one of six economic growth sectors on which to focus its efforts to support investment and facilitate growth.

The government intends to increase tourism's contribution to the economy from the 2009 baseline of $17.8 billion (7.9 percent of GDP) to $46.9 billion by 2020. Tourism directly contributed $3.32 billion into the economy between January and June, 2013, more than gold exports during the same period.

The new regulations could change all that. According to the consultancy Grant Thornton, the new regulations will cost the country 270,000 tourists, more than $900 million in tourism revenue and 21,000 jobs annually.

The International Air Transport Association (IATA) has weighed in on the subject, asserting that "The processes envisaged by far surpass those established in the Minors Best Practice document adopted by the IATA/Control Authorities Working Group, to which South Africa was a party."

SATSA's Frost says the regulations are the most onerous of any country in the world. The Board of Airline Representatives of Southern Africa estimates that up to 20 percent of air travel to South Africa includes children.

"That these regulations will have a profound effect on tourism to South Africa is indisputable," wrote Frost. "We are losing forward bookings and the goodwill of trade partners as we speak. Key overseas associations and operators have sent an unequivocal message: the new regulations present an extra hurdle, an inconvenience, a cost barrier and a level of uncertainly that will divert tourism from South Africa to other destinations."

Effects Already Showing

The TUI Travel Group issued a statement saying, "Today we can already say with certainty that family tourism to South Africa will collapse and possibly even come to a complete halt. We know of no other country that requires the submission of an unabridged birth certificate for the entry of children."

SATSA's Frost calls for a 12-month moratorium on implementation of the new regulations to provide time for a comprehensive economic and regulatory impact study. Frost claims the government will have to undertake a $4 million public relations campaign to attempt to repair the damage of the regulation.

Meanwhile, Malusi Gigaba, the Minister of Home Affairs, has shown no sign of budging. At a briefing last week, Gigaba said, "With regard to Immigration Regulations, I think when people are finished with complaining, they must comply. Let me be very clear about this. There is absolutely no way that we are going to change these regulations. I think we need to balance and that is what we are trying to do, to strike a correct balance because South Africa will never have tourism if we become a society of mass crimes."

Gigaba questions whether the regulations will really hamper tourism.

"The interesting thing is that the countries that are sending South Africa more tourists are those that require visas to come to South Africa and those that have visa exemptions are sending fewer tourists. If the argument, therefore, is that applying for a visa is a deterrent to tourism, why is it that countries with visa exemptions are sending fewer tourists than those where they must apply for visas?"

'Tear Down This Wall'

American tour operators are watching apprehensively.

"It is a big challenge for families," said Karin Jones, managing director of Anastasia's Africa. "We are concerned they will not bring the correct birth certificate documents and they will be denied boarding."

Dave Herbert, owner of Great Safaris, said his company is already losing family bookings because of the new regulations.

"It is obvious that the Minister of Home Affairs has taken a serious decision without prior consultation with the South African tourism industry and even more importantly, the South African Tourism Minister and even the South African Department of Tourism," said Herbert. "His refusal to even meet with any representatives of the South African industry displays a level of arrogance that is the opposite of the 'open government' we expect in South Africa, these past years."

Herbert advocated a delay in the implementation of the law until further studies and discussion can take place.

"The implementation is fast approaching, and many stakeholders predict negative consequences for tourism and the economy," said Herbert. "It makes sense to delay implementation of this unique law for one year, to provide full dialogue between the parties.

"Mr. Minister, tear down this wall... between your department and the tourism industry."


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