Tourism, Entrepreneurship and the Effects on the South African Economy

By Rachel Krauss 

Some of the experiences I have enjoyed the most were in the markets- specifically the one in the town square near our hotel in Cape Town. I loved walking through the tents and seeing what kinds of products the vendors had to offer. Each stand had similar products (such as elephant pants, wooden animals and artwork), but was different at the same time. I had the opportunity to speak with some of the vendors and employees and heard about their perspectives about tourism, their products and the overall economy in South Africa.

Before going out into the markets, I spoke with a hotel employee who talked to us about his perspective of the South African tourism. Nathan, the employee, had grown up in Cape Town his entire life and was aspiring to open up his own hotel one day. His opinion was optimistic: “Tourism has boosted revenue in the country, which is bettering the infrastructure which is bettering the country as a whole.” While Nathan was attempting to keep a positive mindset, he did note some of the issues that are currently still going on in South Africa. “The country has a lot of underlying problems that have not been resolved yet – the president spends lots of money on his house but there is still so many unfortunate people and the tax money is then using it for himself,” Nathan said. I admired his honesty and how he incorporated the less fortunate community. It was interesting to hear his perspective on government spending, especially having recognized it myself after visiting the townships.
After using the ATM, Linley and I ventured into the markets. I was in search for a gift for my friend, and stopped at a stand after about twenty minutes. The stand mainly had mini sculptures and crafty objects for sale, and I settled on a ceramic hand-painted jewelry box before proceeding to ask Judy, the vendor, questions. In her opinion, tourism has greatly affected the markets. She stressed the significance of the determination that most of the vendors have, and how selling their products is their only way to get an income. With that, she quotes, “roughly 50% of the consumers are tourists,” so in a sense the tourists are contributing to their funds to make a living and put food on the table. The determination, Judy explained, comes from outside pressure. She spoke about how the vendors feel pressure because they have children they need to feed and families they need to support. I connected this thought with an American mindset. It is known that in the United States, there is a lot more pressure to put food on the table and support your family- no matter what it takes. Often in America there are stories – and realities – of people that get a number of jobs just to put their children through school. This is one way I found a similarity of the working culture in South Africa, but also in America.
Judy also touched a bit on government aid, stating, “the aid will never be enough.” This statement resonated with me as I thought back to the townships we have visited. She explained that although the government does assist some people, the more they give the more people need the aid. I completely understand where she was coming from after seeing the extreme poverty that I did in Cape Town.
 In Johannesburg, we attended what seemed to be a huge tourist attraction. We entered what looked like a village and were greeted with fresh fruit juice and song and dance from the “villagers.” After shopping for a bit and watching a short documentary about the South African culture in relation to that village, we embarked on a walking tour. It took only a short time to realize that the entire tour was staged. Although it was staged, however, it was still very interesting to see scenarios of different tribes and their lifestyles. After the tour, we saw a short dance performance from the people of the tribe. The performance was amazing – I was so impressed with their skills! The passion they have for their culture is incredible and I felt so lucky that they shared that with us- even if it was staged. This tour and performance, followed by a homemade meal, is a great tourist attraction, allowing tourists to feel cultured throughout the entire experience.
The tourism in South Africa is detrimental to the citizens of the country. As seen in my experiences in both Cape Town and Johannesburg, people rely on tourism for their general income. Whether it’s selling handmade crafts in a market or working as a tour guide, there are copious amounts of professions that involve tourism. The question I ask is: If the number of tourists decreased in the future, how will this effect the overall economy? And, how will this effect the vendors and others who rely on tourists for income?


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