Sameera Casmod | sameerac@radioislam.co.za
27 September 2023 | 12:21pm SAST
1-min read

Picture: African Business and India Times

On World Tourism Day, concerns arise within the South African hospitality industry as the South African Treasury implements restrictions on government travel, conferences, and catering. Alan Campbell, ANEW Hotels and Resorts’ sales and marketing director, expressed the industry’s apprehension during an interview on Radio Islam International.

Campbell initially emphasised the importance of fiscal responsibility and reducing government spending, welcoming any effort in this direction. However, he raised concerns about the lack of engagement and clarity regarding the cost-cutting measures and their potential impact on the industry.

Campbell pointed out that the South African government is the largest employer in the country and plays a substantial role as a procurer of accommodation, conferencing, transportation services, and event management. This decision’s ripple effect is expected to be felt widely across the industry.

With youth unemployment hovering at around 51%, the hospitality sector has historically served as a gateway to employment due to its relatively low skill requirements, Campbell said. However, the uncertainty created by these restrictions may result in businesses being cautious about hiring new employees and investing in training and development.

Campbell highlighted the importance of a consultative approach, suggesting that industry bodies should collaborate with the government to plan for and assess the long-term consequences of these restrictions. Such cooperation would enable businesses to weather the storm effectively and prepare for the future.

In the short term, there is a sense of unease within the industry. While major job losses are not anticipated at the moment, businesses may slow down in terms of new appointments and job creation as they await a clearer understanding of the situation’s impact.

Listen to the full interview on Sabaahul Muslim with Apa Annisa Essack here.