By Ritesh Narsai (GRIPP ADVISORY – CHIEF EXECUTIVE OFFICER)

The Hospitality Think Tank convened by Touching Dreams in conjunction with several industry associations and
supporters recently held their annual conference at the Maslow Convention Centre in Sandton. These are my takeaway perspectives.

Tourism and Hospitality Landscape

Notably the Cape Town node is attractive to local and foreign tourists, however, more could be done to promote the rest of South Africa. Appealingly, South Africa markets two key destinations: 1. Cape Town, and 2. The Kruger. Limited marketing is directed to educate tourists on the rest of South Africa’s offering and appeal. Ailing infrastructure and security issues across the country is a key repellent that needs attention. South Africa has an employment crisis. The Tourism and Hospitality sector can be one of the key catalysts to increase youth employment given its largely “low barrier” entry to employment. Tourism is a key sector to attract foreign tourists and investment because of the high quality of product on offer for a relatively low price point; however, government seemingly have the sector lower down their list of priorities.

SETA Support

Accessing SETA funding is administratively difficult and limited. Targeting applications solely to CATHSSETA would be limiting organisations simply to the industry SETA they are involved and registered with. There may be room to direct applications towards other SETA’s that are more specific and aligned with the skills set of the employees. For example, MERSETA for maintenance type roles, CETA for development and construction roles, FoodBev SETA, etc. However, SETAs are facing an existential crisis themselves, and some are currently facing possible administration.

Tourism on the Continent

Tourism in Africa is increasingly appealing with foreign travelers seeking more luxury, experiential, nature, and adventure type of travelling.

Botswana’s economic contraction and employment challenges seem to mirror that of South Africa, while currency risk, geopolitical issues, and nodal competition across African countries remains a continued challenge.

Emergingly over-tourism in Masai Mara and environmental risks in Zanzibar are on the rise and these areas are seeing limited upside for local communities and their economies.

Operations

Artificial Intelligence (AI) has arrived. The Tourism and Hospitality sector is not immune to the efficiencies that could be unlocked through its use. However, the use of AI, and in particular generative AI, should be adopted as an intentional gamechanger for operators and not deployed purely for the hype. Generative AI can be strategic in the completion of routine tasks or “frictionless touchpoints” so that human time can be redirected to enhancing the customer experience.

AI can have other advantages such as in “upselling” of hospitality services. For example, easier booking of Spa services for guests, locating directions for trips, pre- ordering meals for in-room dining, booking of meeting rooms for business guests, and other concierge services, etc.

Investment Funding

Sourcing of funds for investment is always a hard topic to digest given the South African economic and socio-political landscape. Whilst government funding agencies like the National Empowerment Fund and the Industrial Development Corporation, amongst others are available, they do come with strings attached and investors or operators would need to partner wisely.

Accessing funding through non-traditional methods like tokenisation, crowdfunding, Stokvel type options are trending for smaller startups.