With the country’s soaring youth unemployment rate, the tourism sector holds immense promise to create employment opportunities and drive the economy.

This was highlighted by Christelle Grohmann, Director: Advisory - Strategic & Development Consulting at BDO, after recently attending the sixth edition of the Africa Youth in Tourism Innovation Summit (AYTIS), hosted by Africa Tourism Partners in collaboration with UNWTO and BDO.

According to her, the tourism sector has the potential to be the biggest foreign currency earner for South Africa. “The country offers domestic and international tourists a wide variety of options like national landscapes and game reserves, diverse cultural heritage sites, rolling wine estates, and an abundance of stunning coastlines.”

From January to March, South Africa saw 420 727 tourist arrivals from Europe, an 8.6% increase compared to the same period in 2023. These numbers prove that the country is well on track to once again become a sought-after destination.

Grohmann said: “In terms of entrepreneurship, the growth of the tourism industry is driving a thriving tourism start-up revolution in the country. As of March this year, we have had over 130 online travel startups and this number seems set to grow. This influx of new businesses is a positive sign for the sector, injecting a dose of innovation and catering to evolving traveller preferences. But how does this bolster youth employment?”

Broad scope for employment

From tour guides to front-of-house workers to opportunities for advertising, marketing and design, financial management, IT, tech and more, the tourism industry has a broad scope for employment.

Many startups offer training programmes or online platforms that equip young people with much-needed skill development across the board. Startup incubators and accelerators also often offer mentorship, funding, and workspace to young entrepreneurs.

Grohmann points out that, in terms of connections, startups are creating platforms that connect businesses with young freelancers for tasks like web design, graphic design, virtual assistance, and content writing.

“This allows young people to monetise their skills and gain valuable work experience. And, because many startups are social enterprises, meaning they focus on creating a positive social impact alongside making a profit, these businesses often address challenges like poverty and lack of access to education, indirectly creating job opportunities for young people in their communities.”

However, cautions Grohmann, the allure of becoming a tourism entrepreneur shouldn't mask the inherent challenges. Securing funding, navigating complex regulatory environments, and managing logistics are just a few of the hurdles that startups must overcome. The tourism industry is also an incredibly competitive one, with established players and global booking platforms dominating the market.

“Catering to niche markets or offering unique experiences can be a differentiator, but identifying and fulfilling specific customer expectations requires market research and a clear value proposition.

“This is where the importance of industry support comes to the fore. While the entrepreneurial spirit is commendable, collaboration with established players and industry associations is crucial for survival and long-term success,” Grohmann says.

Collaborative ventures

Collaborative ventures between startups and established players have the potential to be mutually beneficial. Grohmann explains: “As an example, startups can leverage the brand recognition and distribution channels of larger companies, while established players can gain access to fresh ideas and innovative technologies. This synergy can drive sustainable growth for both parties.”

Startups often have an innovative edge and entrepreneurial hunger while established players have the industry experience to offer invaluable guidance. Mentorship programmes can connect startups with industry veterans who can provide insights into market trends, best practices, and operational expertise.

Industry associations can also be vital resources, offering networking opportunities, access to training programmes, and advocacy on behalf of the broader tourism ecosystem.

“If we consider how sustainable tourism practices are also gaining traction, with startups focusing on eco-friendly accommodation, responsible wildlife encounters, and community-based tourism initiatives, leveraging the already established footprint of industry professionals who have an aligned vision for sustainable tourism practices can take both to a new level.

“This responsible approach can benefit both the environment and local communities, contributing to the long-term growth of the industry,” elaborates Grohmann.

With reports that there are currently around 4.9 million unemployed youths, aged between 15 and 34 in the country, there has never been a better time to leverage South Africa’s abundance of tourism potential than right now.

“We must, as an industry, ensure that we are encouraging youth from all backgrounds to get exposure, develop skills, harness entrepreneurial opportunities and leverage their own cultural experiences. This is the only way we can make them active players in a resilient tourism ecosystem that is not only economically sustainable but also contributing positively to the social and environmental fabric of the country,” Grohmann emphasises.