‘Managed Revolution’:
Tourism Development and the Transition in South
Africa
Peter U.C. Dieke
Introduction
South Africa’s recent transition from a racist apartheid society that denied basic human rights to the majority of its citizens to a fully democratic nation is one of the most celebrated political changes of modern times. This change has implications at several levels, not least of which is its impact on the tourism sector. The phenomenal growth in this sector resulting from the end of apartheid has provided a massive boost to the country’s economy (see Table 11.1).
Ahmed et al (1998: 80) have noted however that ‘After years of isolation, South Africa’s reemergence as a tourist destination is marked by serious challenges that may inhibit the industry’s growth and development’. Given the legacies of the apartheid era, much of the concern here centres on the need, among other considerations, to change the ownership structure of the tourism sector, the involvement of local individuals and communities in the tourism development process, its operations and in benefits-sharing (Rogerson, 2003a, 2004a, 2004b).
The apartheid system was complex and intriguing and one which needs some introduc-tion to if its wider significance is to be understood. Thus, the purpose of this chapter is threefold: first, to chronicle the background to the apartheid legacy of discrimination and inequality in South Africa and the peaceful ‘event change’ that ended it, described as a ‘managed revolution’ (Boyd, et al. 2001: 72). Second, the chapter reviews the effects of the change on the tourism sector, not just for South Africa but also for neighbouring countries. The chapter concludes with a discussion of the prospects of South Africa’s tourism if the country is to successfully compete in the globalised tourism marketplace and turn the post-apartheid fallout into an opportunity.
Understanding the nature and scope of the apartheid system: 1948–1994
Apartheid, literally, ‘apartness’ or separateness, describes a policy of separating people by race, with regard to where they lived, they went to school, they worked, and where they died (Clark and Worger, 2004; Eades, 1999; McGarth, 1998). It was a conscious policy to separate physically all races within South Africa in a hierarchy of power with minority whites at the top and the majority black population at the bottom. Its structure rested on four major pillars: (1) the exclusive right to centralized political power by white politicians elected by a white electorate; (2) the division of race relations along spatial lines; (3) the regulation and allocation of coloured labourers to factories, farms and mines in South Africa; and (4) the continuance of social control in urban townships surrounding the key loci of political and economic power (Cohen, 1988: 91). This policy was introduced in South Africa in 1948 by the National Party government. Within one generation the policy wove itself into every aspect of South African life, remaining official practice until the fall from power of that party in 1994.
In the views of McGarth (1990: 92), under apartheid, the market acted ‘like a malevolent invisible hand, working to the advantage of white workers and capitalists, and widening the wage differentials between black and white workers’. Not surprisingly, the ratio of per capita incomes of white to black Africans rose from 10.6: 1 in 1947 to 15:1 in 1970 (McGarth, 1998: 94).
Economic conditions, including the oil crisis of the 1970s caused major problems, and things came to a head in the 1970s and 1980s with the rise of mass resistance, first from trade union workers who organized huge strikes and, when these were crushed, a growing urban proletariat. Blacks violently protested at being shut out of the system, and the African National Congress (ANC), which had traditionally used non-violent means to protest inequality, began to advocate more extreme measures. Mob rule, as reflected in the emergence of street committees and youth groups, replaced the state in many areas and a wave of strikes and riots marked the 10th anniversary of the Soweto uprising in 1987.
By the 1990s the economy was in a real meltdown: growth was negative, capital was leaving the country at a rapid rate, and there were high levels of unemployment. Problems existed on many other fronts, including the dwindling primary product export, unsus-tainable import substitution as export prices plummeted, skilled labour shortage, and an insufficient domestic market. The cost of implementing apartheid was sky-rocketing, worsened by the bureaucracy structure, and further compounded by huge military and security expenditures.
In 1989, De Klerk succeeded President Botha, first as party leader, then as president. De Klerk’s government began relaxing apartheid restrictions, and in 1990, Nelson Mandela was freed after 27 years of imprisonment and became head of the recently legalized ANC.
In late 1991, the Convention for a Democratic South Africa (CODESA), a multi-racial forum set by de Klerk and Mandela, began efforts to negotiate a new constitution and a transition to a multi-racial democracy with majority rule. In March 1992, voters in a referendum open only to whites endorsed constitutional reform efforts by a wide margin.
Despite obstacles and delays, an interim constitution was completed in 1993, ending
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nearly 300 years of white rule in South Africa. It marked the end of white-minority rule on the African continent. A 32-member multi-party transitional government council was formed with blacks in the majority. In April 1994, days after the Inkatha Freedom party ended an electoral boycott, the republic’s first multi-racial election was held. The ANC won an overwhelming victory, and Nelson Mandela became president.
That the transition occurred relatively peacefully was the result of the exceptional statesmanship of Nelson Mandela and Frederick de Klerk, together with the existence in South Africa of an extraordinary range and depth of civil institutions. The institutions include a free press, independent judiciary, churches, trade unions, non-governmental organizations (NGOs), and a well-developed and socially engaging business community.
Authors have characterised this political change as thus a ‘managed revolution’ rather than a supernatural phenomenon (Boyd et al., 2001: 72). In sum, the dominant global political and economic forces played a significant role in shaping its subsequent political and economic strategy to which we now turn.
Macroeconomic policy adjustments since 1994
There were three main challenges which the post-apartheid government faced on acces-sion to power in 1994. These were (a) economic growth and employment creation;
(b) reduction of poverty; and (c) reduction in inequality. The government’s response to the economic challenges was set out in a macroeconomic strategy document, Growth, Employment and Redistribution: A Macroeconomic Strategy (GEAR) (South Africa, 1996). Boyd et al. (2001: 74-84) have critically analysed the broad outline of this policy adjustment document under eight subject headings: (a) Improved access to global capi-tal; (b) A more open economy; (c) Fiscal policy; (d) Monetary policy; (e) Competition policy; (f) Privatisation; (g) Labour-market policies; and (h) Governance.
Limited space does not allow for a detailed consideration of this and other relevant policy formulations or their outcomes. Suffice it to say that: first, this GEAR policy advocated a neo-liberal approach with a streamlining of state functions and expenditure (calling for fiscal restraint), privatization and deregulation of the financial sector. It was envisaged that this would lead to growth through the attraction of foreign direct investment and redistribution would occur through the ‘trickle down’ of wealth. Second, it would be expected that there would be winners and losers, the latter being declines in employment especially in the textile and manufacturing sectors. On the other hand, GEAR has led to increases in some sectors such as tourism that have been partially reversed following the strengthening of the South African rand.
The case of tourism in post-1994 South Africa
Under apartheid, tourism was essentially anti-developmental in focus and largely centred on the recreation of white South Africans. Since the 1994 democratic transition, tourism has become recognized as an increasingly important sector for South Africa’s economy and achieving the government’s goals for reconstruction and development (Visser and Rogerson, 2004: 201).
This statement prompts five striking reflections. First is the importance that the post-apartheid South Africa places on tourism as a nationally unifying force, and with greater emphasis being placed on the provision of ‘basic needs’ by increasing the nation’s eco-nomic surplus which could then be used to facilitate development.
Second, development connotes an improvement of both economic opportunity and quality of social life and conditions, but includes also human and institutional changes, i.e. changes in behaviours, aspirations, and broader concerns of the quality of life, etc.
In this sense, one is constantly reminded of the gap between the majority black and minority white South Africans, described by Cypher and Dietz (1997: 106): ‘the enigma of extremes of wealth and poverty that attended this process and the lack of authentic development affecting a large segment of the population’. Tourism has a Herculean task in trying to bridge that gap, and it is unclear whether tourism can relieve poverty in this country.
Third, the significance of tourism as a development strategy in less developed countries is well documented (Sharpley and Telfer, 2002; Telfer and Sharpley, 2008). Tourism has been viewed as a means of earning hard currency, a source of employment and therefore income, a stimulus to inward investment, and a means of bringing wider economic benefits to regions with limited economic potential (Dieke, 2008). A fourth, and related, observation is the need to recast or rebrand the country as a shining example of an
‘African Renaissance’. In their classic paper, entitled ‘Repackaging the past for South African tourism’, Witz et al. (2001: 277) advocated for ‘the packaging of images that represent the society and its past. In the 1990s, the tourist industry consolidated an image of South Africa as a “world in one country” ’. This move has led to a flurry of such catchphrases as: ‘discover our new world’, ‘a rainbow nation’. In the main, it is expected that through tourism the wrongs of the past might be put right.
Finally, there is a need to compare and contrast tourism in South Africa in the pre- and post-1994 era and explain variations. This comparative insight will clarify the conten-tion that tourism under apartheid was anti-developmental implying that the much hated system did undermine the cause of tourism.
Tourism in South Africa
The focus in this section will be on three main points: trend patterns; constraints on development; and policy response and the regulatory framework.
Trend patterns
As a basis for analysis, trend patterns examine the way tourism has developed and the nature of tourism activities. This is because such trends are a necessary and influencing parameter to analyse future prospects.
The historical context
Before 1994, South Africa was relatively unknown as a tourist destination. The low priority given to the sector was not surprising, in part because of the apartheid system
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and in part also because conventional mass tourism in this country is barely 40 years old (Ahmed et al., 1998; Visser and Rogerson, 2004). It was small-scale and very domestic in scope (Table 11.1).
This situation was exacerbated by the economic sanctions by Western countries against the country because of the apartheid regime. The effect was to depress demand for South Africa’s tourism. Visser and Rogerson (2004: 202), citing Cassim (1993), summed up the crucial moment thus: ‘the period of the early 1990 represents a crucial watershed for it is at this important juncture of South Africa’s development history that tourism first enters the realm of policy debate’.
Table 11.1: Overseas visitor arrivals to South Africa, 1987–97. Source: Central Statistical Services (CSS), cited in Ahmed et al. (1998: 82)
Year Annual Arrivals Change from
previous year (%)
1987 339,307 14.2
1988 388,102 14.4
1989 472,076 21.6
1990 498,712 5.6
1991 521,257 4.5
1992 559,913 7.4
1993 618,508 10.5
1994 704,630 13.3
1995 1,071,839 52.0
1996 1,172,394 9.5
1997 1,400,000 19.4
The current situation
South Africa’s current tourism situation can be described by reference the product, market mix and expenditure profile.
The tourism product is defined as facilities, amenities and services which attract visitors, and includes: game viewing, beaches, conferences and seminars, activity/adventure pur-suits, shopping, cultural events, hotel-based gambling and sports events. Game viewing based on wildlife and its natural habitat is the most significant asset of the natural endowments, and is available within the 212 national parks and reserves, of which 17 are major ones, such as the 2 million hectare Kruger National Park.
The product spectrum merits some brief comments about the distinction between pri-mary and secondary attractions vis-à-vis market fit and the competitive environment. In the first place, the products reflect specialist interests, for example, adventure pursuits appeal to the youth market; wildlife appeals particularly to American tourists, many of whom are travelling on multi-destination tours. Second, these features are not unique;
the product elements (with the exception of gambling, sports events) are available in neighbouring countries (Kenya, Zambia, Botswana, Tanzania). Many of these desti-nations will be competing with South Africa. Third, as tourism marketers (Jefferson and Lickorish, 1991; Seaton and Bennett, 1996) suggest, no one activity is adequately attractive to motivate visitors, but together, they provide a basket of options available to tourists.
Data from United Nations World Tourism Organisation (UNWTO) (2008: 8) indicate the extent and impact of the South Africa’s tourism (between 2005 and 2007), in terms of market mix and earnings profile. It is estimated that 9.090 million tourists visited South Africa in 2007, a growth rate of 8.3% compared to 2006 and 13.9% over 2005.
It is further estimated that $8.418 million were generated in international receipts in 2007 (or $543,000 more than 2006).
Rogerson (2007) indicates the main tourist flows to South Africa, in order of impor-tance, include: Europeans; residents of African countries; visitors from the Americas, from the Middle East, and from Asia. Long-haul visitors comprised about 80% of the total arrivals in 2007 most from the United Kingdom (22%), the USA (18%), Germany (18%), France (8%), the Netherlands (7%), and the Republic of Ireland (3%). Residents of other African countries constituted about 30% of arrivals.
A synthesis
Based on the demand figures, we can draw the following brief conclusions. First is the extent to which South Africa has now become a significant tourist destination for for-eign travellers following the end of apartheid, and the competitive nature of the tourist activity in which it is fiercely competing to increase its share of the market. Second, there is the recognition that international tourism has become a high-volume industry and a major feature in the South African economy and society. Third, Western European countries and the USA maintain their dominance of both visitor arrivals and receipt figures. Fourth, there is recognition of the importance of regional tourism for the tour-ism economy of post-apartheid South Africa as demonstrated by government policy.
Regional tourism is defined here as: ‘tourism flows, by land or air, from other countries in sub-Saharan Africa’ (Rogerson, 2004c).
In conclusion, there are two basic questions which need addressing: (1) what are the constraints hampering the development of tourism in South Africa? (2) how are the new relevant authorities responding to these constraints through the policies formulated for the tourism sector?
Constraints on tourism development
There were a number of structural challenges facing the South African economy and society after the country’s democratic transition in 1994. While the factors were common or generic and can be found in most young democracies, they were also supplemented by the special situation in South Africa, and collectively, they were themselves barriers to development of the tourism sector. These problems can be summarised as:
1 The need to re-integrate South Africa into the global economy and to establish new