Trickle-

(How) does it happen?)
With South Africa's tourism sector in a distinctly expansionary phase, questions around the distribution of the "fruits of sector growth" have lately figured prominently in public debates about socio-economic issues. In the Southern Cape context these questions may have the following local colouring.
o "All the large homes along the main city arteries (of Oudtshoorn, Knysna, Calitzdorp, Riversdale, etc.) which are most suitable and widely used as Bed-and-Breakfast establishments, were in the past in white-classified areas. How can we, black township home-owners, ever compete with those establishments for profit?"
o "The tourism industry is supposed to create so many jobs. Yet, in the low season we locals cannot find a (semi-skilled) job and in the high season restaurant owners recruit 'experienced waiters' from out of town. How can we get on to the gravy-train?"
We could add a whole string of other complaints which all add up to the wide-spread feeling among local black people (or PDIs) in tourist centres that the benefits of foreign as well as up-country tourist spending do not "trickle down" to their households and do not seem to boost their living standards. "Tourism is a white-centred industry!" is the logical conclusion which, naturally, drives those on the other side of the divide "up the wall".
Does this accusation necessarily hold? And does not the same apply to many other services, which seem to benefit skilled, professional people a lot more than unskilled labourers and those out of jobs?

Let us tackle this issue along three different tracks.
o First, let us encourage the debate and refrain from rejecting any of the accusations out of hand. Of course it is true that most bed-and-breakfast places in Southern Cape tourist centres and coastal villages evolve out of the (different) utilisation of existing, sizeable houses where the core family does not need two or three extra rooms and has space for the installation of further bathrooms. Thus, a "new" B + B is erected at a marginal cost, compared to those who have to buy a complete house of sufficient size.
o Second, we should not underestimate the employment impact which still does apply: maybe only seasonal or lower paid for lower skills, but possibly still higher than in farming or in township self-employment activities. We should also not ignore the circular flow and "multiplier" effects of the injection of tourist spending: hotels employ cleaning and maintenance staff, buy more furniture, curtains and crockery, have more washing and other outsourced tasks and thereby generate employment. The same applies to other services utilised by tourists: insurance policies, photocopying facilities, medical services, repair services, etc.
o Third, the racial involvement scene is changing fairly rapidly in South Africa (and also in the Southern Cape). For example:
o Township tours become increasingly comprehensive, with more and more spending channelled to that local level.
o Black people are increasingly involved in the full range of tourist-contact jobs (like waiters, counter-staff, drivers).
o In the tour guide sector we can see a determined effort to involve more local, black guides, in particular where local cultural characteristics and events are to be explained.
o Black economic empowerment is becoming a factor in the ownership and management of larger investment projects, in particular those dealing with public-sector contracts.
o In the training for tourism-related vocations the racial balance is changing rapidly. This applies to all areas and levels of education.
o In smaller towns regular "events" which draw large numbers of over-night visitors, often create a demand for more "beds" than those available in established accommodation facilities. This draws new players (including PDIs) into the supply net, the KKNK being a good example of such a diffusion process in the Oudtshoorn area.
o Overseas tourists are increasingly looking for the "African" experience in their travel programme, which raises the demand for "African" restaurants, township tours, local crafts and informal contact with local, black people (as it happens during stays in black-owned bed-and-breakfast establishments, also known as "home hospitality").

All these change factors may still be far too weak to bring about a dramatic, short-run change, and may thus fail to satisfy legitimate expectations of black South Africans. That explains why we should expect that in the short run formal aspects of the government's black economic-empowerment and affirmative-action programmes will be pushed with increasing vigour in popular tourism areas. These relate to black co-ownership of larger investment projects, preferential procurement and employment conditions with respect to the public sector, and preferential treatment in the education and training fields. In as far as poor levels of township infrastructure make these areas less attractive for tourists, we should expect increasing pressure to apply some linked development levy on prime tourism sites to partially fund township upgrading. This has been done in other parts of the world and may be the only way to effectively silence the critics of "tourism trickle-down" in the short run.
Should you have comments or suggestions on this article please contact Dr.Thomas at e-mail : birgatom@iafrica.com.

Dr. Wolfgang Thomas, USB