The contribution of tourism to local economic development in South Africa : the case study of the Newtown Cultural Precinct in Johannesburg

Abstract

Tourism is recognised as the largest and fastest growing economic sector worldwide. However, many tourism studies in South Africa and elsewhere have investigated the relationship between macro-economic development and tourism. So far, there is little or no research on the contribution of tourism to local development in South Africa. As such, this research project tried to close this gap by critically examining the contribution of tourism to local development of Johannesburg inner-city in South Africa. The main aim was to investigate the extent to which tourism in Newtown Cultural Precinct (NCP) has contributed to Local Economic Development (LED) in Johannesburg in South Africa. Therefore, the specific objectives were to assess the nature of tourism in NCP; establish the role of cultural tourism in enhancing LED; evaluate tourism regeneration and its impact on LED; and to outline the economic and social contributions of tourism in NCP in Johannesburg. The research utilised a case study of the NCP tourist site to generate literature and empirical findings. Research data was mined through a qualitative design process, within the interpretive paradigm lens. Multiple research methods such as social survey, observation and interviews were not only used to explore primary data but also to triangulate research findings. Secondary data was gathered through a literature review process. The study population consisted of 20 interviewees, of whom 5 were business owners, 5 residents, 5 tourists or visitors, and 5 were employees at NCP. The actual sample was selected through a non-probability sampling technique namely: convenience or judgemental technique. As such, only populations units with rich knowledge of the subject being studied were selected. Research data analysis was analysed using manual bi-thematic analysis process of utilising deductive and inductive approaches. This implies that both priori and posteriori codes, categories and themes were generated. Key objective empirical findings which emerged from the study are that the nature of tourism is such that it fosters socio-economic transformation of infrastructures, creates employment, contributes significantly to Gross Domestic Product (GDP), export earning, and promotes human and physical capital investment. It surfaced that the role of tourism is to tap cultural and unique potential, attract tourists, foster inclusive growth, and promote diversity. In terms of tourism regeneration and its impact on LED generated arose that tourism regeneration positively impact LED through job creation; improving the quality of life for residents; promoting economic development; balancing urban and LED; improving city image; attracting private and public investors; improving environment; and attracting new business. Then the economic and social contribution of tourism to LED conceived is such that it boosts the gross domestic product; facilitates community development; alleviates poverty; provides business opportunities; conceive inner-city leisure places – such as casinos, museums, conference centres and sports stadiums. However, there seems to be no commitment and consistency, no events and target planning, no participative engagement, no tourism marketing advertising, and no motivation is done, from government and responsible stakeholders, to effectively promote local development in the context of the poor. Efforts to eradicate these weaknesses will contribute towards fruitful LED and income generation at NCP in Johannesburg.