adminJohannesburg. — THE tourism sector is the “rescue operation” in South Africa’s economy in view of the contraction in the mining and manufacturing sectors, Tourism Minister Derek Hanekom said on Tuesday.
Job creation was “uppermost” in his mind in addressing unemployment, poverty and inequality, Mr Hanekom told the annual general meeting of the Tourism Business Council of South Africa.
The tourism sector accounted for more than 600 000 direct jobs and 1.4-million indirect jobs, he said.
Last year the travel and tourism industry contributed 3 percent (R103,2bn) to gross domestic product, according to the World Travel and Tourism Council.
This was expected to grow by 4,3 percent this year, and by 3,9 percent a year from 2014 to 2024.
“It is a sector where if we do the right things, it will grow,” said Mr Hanekom.
Addressing issues of transformation would also boost inclusive growth, he said, citing the tourism support programme, a public fund for tourism enterprises.
Earlier this year, Department of Tourism director-general Kingsley Makhubela said R100m had been set aside for the relaunch of the programme this financial year.
Mr Hanekom said the department was looking at how best to apply the programme as it had “a limited amount of money”.
It was also revealed on Tuesday that the minimum wage rate in the hospitality industry had been increased by 7,7 percent. — Bdlive.
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