South Africa's Tourism Sector Struggles Amidst Electricity Crisis

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South Africa,Tourism,Electricity Crisis

The electricity crisis in South Africa, caused by the ailing state power entity Eskom's infrastructure issues, is severely impacting the country's tourism sector. Loadshedding has worsened in 2023, with some areas experiencing power cuts for up to 10 hours a day. This crisis has led to a significant contraction in the sector's contribution to the economy and job market.

For the past 16 years South Africans have dreaded rolling power cuts euphemistically dubbed “loadshedding”. These are caused by the ailing state power entity Eskom’s crumbling infrastructure and its over-reliance on ageing and poorly maintained coal-fired power stations. Loadshedding has worsened in 2023, with some areas experiencing power cuts for up to 10 hours a day. This crisis affects every aspect of the country’s economy, including its vibrant tourism sector.

Tourism is a vital contributor to the South African economy. In 2019 the country welcomed over 10 million foreign visitors. The sector contributed up to 6.4% of the gross domestic product along with 1.5 million jobs (9.3% of total jobs). These figures have contracted significantly because of the COVID-19 pandemic. Visitors are returning. But the financial recovery and viability of the sector, which is composed mainly of small businesses, continues to be hampered by the electricity crisi

 

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