National carrier South African Airways (SAA) is an enabler for tourism and a driver of economic growth through trade, acting CE Nico Bezuidenhout said on Monday, adding that the movement of people and goods by air was more important than ever before.
Speaking at the Durban Tourism Indaba, Bezuidenhout highlighted SAA’s continued support of the economy and tourism through the effort the airline made in stabilising the company through the implementation of its 90-Day Action Plan.
“Tourism has always been and remains an important catalyst for growth in South Africa. It supports one in every 12 jobs in South Africa, either directly or indirectly,” he noted.
“Tourism numbers are staggering. The Oxford Economics study estimates that about 615 000 people are directly employed by the tourism industry, while a further 451 000 jobs are indirectly linked to the sector and 312 000 people are directly supported through the household spend of tourism workers.
“It is no surprise that [it is then] one of the six key drivers of the South African 2011 National Growth Path Framework. It is a key sector for growth and, from a tourism baseline of R189.4-billion in 2009, the contribution of tourism to the local gross domestic product is expected to exceed R500-billion over the next decade,” Bezuidenhout pointed out.
He further described the carrier’s 90-Day Action Plan as an instrument to return the business to a stable point for full implementation of the long-term turnaround strategy.
In March, SAA successfully completed the plan and the company achieved significant milestones during that time. Lossmaking routes, such as Mumbai and Beijing were culled, but as important sources of tourism, SAA expanded its code reach in these source-markets, now providing more than ten points in India through codeshare operations.
The carrier’s new service into the United Arab Emirates also provided a presence in one of the busiest air hubs in the world with forecasts indicating that beyond the stemming of losses in its business, the actual potential for growth in tourism through this move was “exceptional”.
Going forward, the company would focus on growing from a stable base and platform. SAA plans to grow its capability to better connect South Africa with key trade and tourism partners. By achieving business stability and continually being mindful of managing costs, a strong foundation was set to gear for growth in a measured way.
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