A report shows that South Africa’s newly implemented visa regulations have already started impacting the local tourism industry, with a major hotel group estimating that its revenue has decreased by R2.5-million, based on a comparison of total room revenue for the period June 2013 to December 2014.

The report – a comprehensive review of the impact of the visa regulations and compiled by the Western Cape government’s Red Tape Reduction Unit – was submitted to national government, requesting that it be taken into account by the interministerial committee (IMC) convened to assess the new visa rules.

The analysis outlined the impact of the changes for each visa type; the economic impact in key sectors; comparison with the visa systems of other countries; and recommendations to streamline South Africa’s visa application system.

The analysis had also been shared with Home Affairs Minister Malusi Gigaba, Tourism Minister Derek Hanekom and Deputy President Cyril Ramaphosa, who headed the IMC investigating the impact of the regulations.

“Two major international conferences hosted in South Africa recently also reported a 71% and 45% decrease in attendance figures. Taking into account that conference delegates are estimated to spend R3 200 a day during their stay in the country, this drop in attendance is worrying,” Western Cape Minister of Economic Opportunities Alan Winde said.

He added that one of the key concerns remained the Department of Home Affairs’ administrative capacity to support these regulations.

“The population of children in South Africa amounts to almost 17-million. Although it is not expected that all of these children will apply for unabridged birth certificates, based on the existing capacity constraints, the Department of Home Affairs will not be able to deal with any sort of meaningful increase in demand for their services in a timeous and efficient manner,” Winde pointed out.

He further highlighted that medical tourism was one of the sectors that had been hit hardest. “This sector generates R9.8-billion for the national economy and attracts 500 000 visitors.

“Prior to the implementation of the regulations, visitors from the Southern African Development Community region opted to apply for tourist visas, which would allow them to stay for 90 days. Should they need more than three months to recover, they would be able to apply for a temporary residence visa.

“In many cases, medical tourists are not able to preempt the amount of time they will need to recover. Under the new regulations they would have to return to their country of origin, possibly at great risk to their health.”

Winde said the country comparison showed that South Africa’s regulations were far more stringent than its Brazil, Russia, India and China, or Brics, counterparts.

“Brazil and India offer online visa applications, while Russia allows visitors to apply for a 30-day tourist visa on arrival. According to the South African regulations, visitors must apply in person at a South African embassy in their home country and undergo biometric fingerprint scanning,” he added.