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Boosting South African tourism through visa reform

Genesis Analytics has played an important role in addressing inefficiencies in South Africa’s visa system, which have hindered the growth of the tourism sector. Appointed by Operation Vulindlela, a joint initiative between the Presidency and the National Treasury, we examined pain points in the visa regime, particularly for Chinese and Indian tourists, and advised the government on actionable reforms.

Tourism is vital to the South African economy and people’s livelihoods. In 2019, the tourism sector contributed 8.6% towards South Africa’s Gross Domestic Product (GDP) and supported 733,385 jobs, constituting 4.7% of total employment. Using a Social Accounting Matrix-based multiplier model, Genesis estimated that around R1 million in GDP is generated for every 29 overseas tourist arrivals in South Africa, and around one job is created for every 12.

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The inefficiency of South Africa’s visa system in handling large volumes of tourist arrivals has become a significant barrier to the sector’s growth and development. This has put a brake on short-term tourism from high-growth markets such as India, China and Nigeria. It has also affected long-term tourism from groups such as English as a Foreign Language (EFL) learners and “swallows”, that is, people who hope to break away from the cold winter of the Northern Hemisphere by coming to South Africa.

As part of the project, Genesis also identified challenges and explored solutions for EFL learners and “swallows”. The ultimate purpose of the project was to unlock opportunities in South African tourism, create employment and stimulate economic growth.

Combining desktop research, international benchmarking and wide stakeholder consultation, Genesis evaluated the pros and cons of different visa reform options. Adjudicating these reform options, Genesis recommended that the Department of Home Affairs develop a South African Electronic Travel Authorisation (ETA) system. This would be linked to the relevant security/risk engine, and be capable of automating visa verification and adjudication for improved efficiency and reduced human discretion.

Genesis also provided interim recommendations to address South Africa’s visa-handling inefficiency. These included a roadmap for implementation timelines, legislative/regulatory changes and refining the mechanisms for the Trusted Tour Operator Scheme (TTOS).

Based on the recommendations, Genesis supported the Presidency in setting up three multistakeholder workstreams. Each of these was charged with reform efforts related to streamlining visa regulation, launching the TTOS and developing a fully fledged ETA system.

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