GEORGE NEWS - Figures from a document recently published by Wesgro show the enormity of the impact of the Covid-19 pandemic.
It turned a fine economic growth of 3,8% in the Garden Route between 2016 and early 2020 upside down, leading to the district recording a sharp decline of -2,5% in 2020.
The tourism sector took a huge knock in 2020 with a decrease of 61,9% in visitors compared with 2019. This is according to figures collected from establishments in the Garden Route and Klein Karoo participating in a regional visitor tracking survey in 2019.
A total of 278 062 visitors was received from January to December 2020. Throughout the second quarter and most of the third quarter, all tourist attractions were closed due to the nationwide lockdown that started on 26 March 2020.
There was a slow recovery over the remaining months, but the 46 668 visitors recorded in December 2020 was still 54% less than in 2019, according to Wesgro's destination sector fact sheet.
Tourism a big economic driver
The Garden Route was the region with the fastest economic growth in the Western Cape before the lockdowns began last year, and one of the biggest determining factors was tourism, says Dr Willie Cilliers, chairman of the AHi Western Cape. He attributes this to the fact that the Garden Route is the preferred tourist destination in South Africa, even bigger than KwaZulu-Natal's South Coast.
According to Wesgro's document, the top reason for travel to the region was for holiday /leisure (77,4%) and the top source countries during 2019 for visitors were Germany (37,4%), the United Kingdom (19,6%), and the Netherlands (7,8%).
Investment and employment
The Garden Route also attracted seven foreign direct investment (FDI) projects to the value of R21,69bn between January 2003 and December 2020. Five projects were in Mossel Bay, one in George and one in Hoogekraal and they created 625 much-needed jobs.
According to 2020 figures there were 39 372 unemployed people and 149 861 were not economically active (not working and not looking for work) in the district. The unemployment rate was 15,38%, with 216 584 people employed from a working age population of 405 818 people (calculated after deduction of the economically inactive numbers). A total of 159 015 was formally employed and 57 569 informally employed.
Cilliers says the figure in the rural areas and smaller towns such as Kannaland, Calitzdorp and Prince Albert are definitely closer to 40% or even higher, especially among the youth.
Biggest employers
The wholesale and retail trade, catering and accommodation sector was the largest employer in 2020 with 54 778 people, followed by finance, insurance, real estate, and business services, which employed 39 902 people.
The community, social and personal services sector employed 30 679 people.
In addition to trade and investment-related statistics for the Garden Route and Klein Karoo district, the Wesgro destination sector fact sheet provides information on the district's area and trends in population, employment, trade, investment and tourism.
Although the average employment rate is 15,38%, it is closer to 40% in rural areas and small towns, according to AHi Western Cape chairman Dr Willie Cilliers.
The wholesale and retail trade, catering and accommodation sector was the largest employer in 2020 with 54 778 people.
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