Sydney becomes South African

With the inaugural South African Trade & Investment Indaba being held at the Four Seasons Hotel in Sydney yesterday, Sydney became South African for the day with leaders of South Africa’s trade and industry meeting to discuss trade between the two countries, including tourism – of course!

ABC’s Tony Delroy, in his role as MC aptly described the conference as being a “Dialogue Day”, focused on exploring how South Africa and Australia can become “better mates”, with the message clear that Australia cannot ignore the emerging market of South Africa, as we have many things in common and understanding that South Africa is the gateway to Africa will open doors for Australian Business.  He added, “The time to build bridges is now!”

This trade and investment conference, Indaba was intended to become an annual event that grows in line with the developing relationship between Australia and South Africa, the conference aimed at profiling the South African environment and how businesses currently operate in South Africa.

With the welcome address given by the South African High Commissioner, H. E. Anthony Mongalo, he stated that the key goal of the conference was to highlight trade and investment between Australia, South Africa and the wider African Continent.  Mongalo noted that already business visits between Australian business people and their South African counterparts were steadily increasing, strong academic links exist between the two nations (currently 560 South African students are studying in Australia, and Monash University has a campus near Johannesburg with over 1600 students), co-operation in several areas goes far past simple bi-lateral relations, the Premier of Queensland recently concluded a successful visit to South Africa and overall there is a good base for going forward.

Significantly for the strength of the role of tourism in this exchange of views and dialogue, the Minister of Environmental Affairs & Tourism, the Hon. Marthinus van Schalkwyk [Pictured right with ABC’s Tony Delroy]  gave the key note address, openeing by dispelling the perceptions that South Africa would not be able to build a non-racial society, nor develop a strongly growing economy, passionately describing how South Africa has astonished the world with its progress on many fronts.

Mr van Schalkwyk identified the signs confirming that the South African economy has good underlying fundamentals, such as a significant fixed investment as part of GDP, with the economy having a target of 6% economic growth. 

He said that Australia and New Zealand need to share this understanding and they can then both benefit from developing a close mutual association with South Africa, with this will most likely requiring a change to the current mindset in order to explore all the new possibilities of business with and in South Africa.

And no surprises for guessing which is the fastest growing sector, where excellent growth prospects are being tangibly realised?

Yep, you guessed – tourism and travel! 

Globally, tourism is growing 4.5% whilst in South Africa the figure is 13.5%, with the African continent currently the fastest growing tourism sector in the world, and tourism investment opportunities in South Africa including, hotels & self-catering holiday resorts, adventure, eco, sport, conference & cultural tourism, infrastructure development, leisure complexes and golf courses, harbour & waterfront developments, transfrontier conservation areas (large tracts of land that cross national borders) and cruise liners & transportation.

As an example of the tourism developments and activity taking place already between Australia and South Africa, The Mole met Roman and Sam Reddy, originally from South Africa, but now living in Sydney, who have just bought their first B&B in South Africa, The Manor in North Durban with plans well in place to acquire 27 to 32 B&B’s in South Africa within 3 to 5 years. 

The B&B’s will all keep their own individual flavour and name, but fit within an overall brand with the very highest standards of quality control and will be luxury boutique properties aimed at the corporate as well as leisure markets.  With a target of only 8 to 12 rooms in each property they are planning on an intimate, luxurious and very special experience at each property, offering sumptuous breakfasts by the pool or in the guest’s room and gourmet dinners on request.

The Minster said that domestically, Africans increasingly want to travel and be tourists, so South Africa is also benefiting from increasing numbers of domestic travellers, as well as international travellers and although the US and European markets are very important, the focus is shifting to the growth markets of the future. 

Both Australia and South Africa will inevitably be competing within these growth markets, however van Schalkwyk [Pictured left talking cricket!] sees this as a healthy positive, with competition bringing out the best! (The Cricket World Cup did score some mentions throughout the day at appropriate points…!!)

Mr van Schalkwyk would like to see South Africa in the Top 10 of long haul travel and convention destinations within the next few years and is encouraging the development of more content, branching out from the traditional tourism products and services. 

With the biggest event ever on the African continent, the upcoming Soccer World cup in 2010, his message was simple – “Yes! We can do it” (in fact South Africa is ahead of schedule in readying everything for the cup, including large scale infrastructure projects), with every angle being reviewed, for example, people staying out in the bush in lodges will be able to travel to a venue, see a game and then return to the bush the same day.

Pretty surreal when you think about it – get up in the morning, perhaps see a croc bring down an antelope over the corn flakes or an elephant wander past over the toast, then see a match and be home in time for the night safari….!

The question of safety was fully answered, the picture is one of categories of violent crime reducing, and by 2010 some 200,000 police will ensure every security angle is covered for the World Cup.

One interesting point came from a question, asking “Do young South Africans see tourism as a lifelong career?”  The answer from the Minister was a resounding Yes! 

The World Cup is not being seen as a get-rich-quick opportunity, it is being seen as a mechanism to allow smaller businesses to share in the success of the cup and provide infrastructure for ongoing use with 30% of the entire World Cup budget being directed to small to medium sized businesses and in a World Cup first, accommodation will also include and rely on graded accommodation.

Another question ended in some merriment, with the Minister being asked whether Tambo Airport (Johannesburg International) would be receiving a much needed makeover and the questioner very passionate about the bad vibe people receive when they enter the Arrivals hall at the airport, very descriptive, concluding with the olde saying ‘First impressions count’.

Van Schalkwyk replied “You’re right!” and then said “I’ll add two more – long queues and lack of information & help facilities!”  Perhaps too much agreement from a government representative….  You sense that South Africa really want to get it right.

Van Schalkwyk concluded by demonstrating how significant investment has been made into infrastructure, with amongst other initiatives, the creation of Industry Development Zones (IDZ’s) around energy, water, airports and sea ports, with each province (there are 9) having a “mega project” that will directly support and grow GDP.

A TravelMole South African Australia Trade and Investment Indaba report