What World Cup Has Done For South Africa
Thursday, February 2, 2012 | 9:41 amMany critics have been questioning the benefits to South Africa of the 2010 World Cup, but there is no doubt of the enormous benefit that will accrue to the tourism industry. These critics question whether the World cup 2010 should have taken priority over other social priorities, and if there will be any financial benefits to the country. There is a general agreement that the government will break even on its capital outlay. The President, Jacob Zuma, told a recent conference in Cape Town that the government is satisfied that the 2010 World Cup has been an economic success, with a good return on the investment of R33 billion spent on transport infrastructure, telecommunication and stadiums. This had created an estimated 66 000 new construction jobs and the ZAR1.3 billion spent on safety and security included the permanent addition of 40 000 new policemen and women. South Africa’s Minister of Finance confirmed that the World Cup will add ZAR 38 billion to their country’s economy.
Whilst many argue that the funds could have been better spent on housing or a number of other social priorities, there is very good reason for the tourism industry to be pleased with the outcome of the World Cup, because of the changed perception of South Africa by the rest of the world. There has been surprise and admiration for the country’s ability to host such a successful international tournament, and it has moved up in the perception of the world alongside the developed nations, shedding its stereotype image as a backward country.
The Internet, blogs and social media are full of positive reports from those who have visited South Africa during this tournament. The positive public relations has been massive, and it is now perceived as a safe, friendly and positive place to visit and to do business. The real benefit of hosting the 2010 World Cup is the showcasing of South Africa to the world which will grow their tourism. The enormous amount of social networking has created a public image that almost no amount of government spending could have created and this has been enhanced by the many influential and public figures who visited during the World Cup, including former US President Bill Clinton who stated in Cape Town:
“South Africa has branded itself in this World Cup in a very special way. Lots of people did not think you can pull it off. South Africa is being given a chance to set standards the world can learn from.”
South Africa has much to be positive about- their stock exchange keeps outperforming most of the rest of the world, and the currency has appreciated some 30% in the past year because of the massive inflows of foreign investment capital looking for excellent returns and interest rates when compared to the rest of the world. The country now has an image of a warm, stable and peaceful society and is also one of the most beautiful countries in the world. The many positive reports by people who had been surprised to find that South Africa is not riddled with crime, unlike the negative image that had previously been portrayed, will help to change many perceptions. South African Tourism did an excellent job of ensuring great international coverage on the TV networks during the tournament when the interest in the country was at an all-time high. A prestigious web based hotel booking portal has released information that reveals that Cape Town rates 9th as the most favored destination for 2010 for their clients.
Danny Jordaan, CEO of the 2010 World Cup Organizing Committee sums it up: “They said we could not build the stadiums in time: we did. They said we could not provide the infrastructure in time: we did. They said we could not deliver the TV broadcast capability to the rest of the world: we did.” There were stories of crime and terrorism and even an outbreak of giant snakes, he said. There was even a rumor that a big earthquake would hit on opening night. All this fear-mongering was aimed at suggesting that South Africa was too unsophisticated to host the games. The fact is, the South Africa World Cup is a huge success, among the best run in history–and possibly the most profitable for FIFA ever.”
Tourism brings in about 4% of South Africa’s total GDP; and is a significant employer for a country with a great deal of semi-skilled labor. Growth in tourism will result in growth in job creation, as is shown in the new tourism strategy released by their Minister of Tourism; which seeks to create up to 225,000 new direct jobs and 400,000 indirect jobs in the tourism sector and increase tourism’s direct contribution to GDP from ZAR R64bn or 3.4% in 2009, to ZAR R125bn by 2015.
The official statistics on visitors for the period show an increase in the number of tourists from most of the traditional markets for South African tourism, but there are new markets evolving as a result of the coverage of the World Cup, such as the USA who appears to have discovered South Africa since they constituted the largest number of visitors from any country. The country should exploit this massive and affluent market as a result of the favorable image portrayed of the country during the World Cup. The tournament has been an unqualified success for South Africa, but the most important benefit will not be the immediate economic benefit, but the on-going growth on tourism, such as Germany experienced with a growth of 30% in tourist numbers after they hosted the 2006 World Cup tournament, and this benefit will spread to a wide section of their economy.
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(posted in Africatralerighe)
Sudan and South Sudan in fierce oil border clashes
Tuesday, March 27, 2012 | 1:59 pmClashes have broken out in oil-rich border areas between Sudan and South Sudan in what has been called the biggest confrontation since the countries split last July.
South Sudan President Salva Kiir said his forces had seized a key oil field – a claim denied by Sudan.
Sudan state radio says President Omar al-Bashir has put off next week’s visit to South Sudan for a summit.
The countries fought a long civil war before the South seceded from Sudan.
The clashes were first reported late on Monday and continued for a second day on Tuesday.
Gideon Gatpan, information minister for South Sudan’s Unity state, told the BBC a Sudanese plane dropped two bombs 35 kilometres from the town of Bentiu.
He said he had no reports of casualties, adding that he believed the real targets were the nearby oil fields inside South Sudan.
The vice-president of the Greater Nile Petroleum Operating Company, Chom Bol, said a further bomb had landed near a camp for his staff inside the Unity oil field – in the South.
But a Sudanese armed forces spokesman denied there had been an air raid, saying there had been no fighting so far on Tuesday.
The nations disagree over several issues, of which the biggest is oil.
Continue reading the main story
Analysis
James Copnall
BBC News, Khartoum
The timing of this latest fighting – which South Sudan’s military spokesman believes is the “biggest confrontation since independence” – must surely be linked to the summit that was due to take place in early April.
Early reports suggest President Omar al-Bashir will not now travel to Juba.
That would represent a victory for the hard-liners in Khartoum, who have criticised the recent steps taken in the negotiations, and queried why President Bashir should attend the summit.
South Sudan believes this latest fighting was triggered by Khartoum, to sabotage the talks. Khartoum puts the blame squarely on Juba.
One analyst in Sudan thinks the dimensions the fighting took actually reveals the tensions within South Sudan’s political elite about how to handle Sudan.
It will take time for a more complete picture of the clashes – which an international security source told the BBC reached the oil fields in Heglig – to emerge.
But it is clear that the recent optimism created by negotiations in Addis Ababa and Khartoum has completely collapsed.
The two leaders had been due to hold talks at next week’s summit in Juba, which had been billed as sign of improved relations.
Mr Kiir reportedly said his army had repulsed a Sudanese assault, and then taken over the oil fields in the area of Heglig, which is claimed by both sides.
The BBC’s James Copnall in Khartoum says an international security source claims there had been fighting in the oil fields and oil workers were being evacuated.
Our correspondent says it is clear that, despite appeals for calm from UN Secretary General Ban Ki-moon and others, tension between Sudan and South Sudan is still very high.
Sudanese officials blamed a rebel group from the western Darfur region – the Justice and Equality Movement – for taking advantage of the situation to attack the Heglig area. A Sudanese army spokesman denied there had been any fighting inside the oil fields.
A spokesman for the South Sudan army said the clashes were the biggest confrontation since independence.
The fighting prompted Mr Kiir to warn of war.
On Monday evening he said: “This morning the [Sudanese] air force came and bombed… areas in Unity state.
“After this intensive bombardment our forces…. were attacked by the [Sudan army] and militia.”
Mr Kiir added: “It is a war that has been imposed on us again, but it is [Sudanese] who are looking for it.”
The South also reported Khartoum had attacked the disputed areas of Jau and Pan Akuach, and Teshwin inside South Sudan.
Sudan’s army spokesman, Sawarmi Khalid Saad, confirmed fighting in the border area of Sudan’s South Kordofan state and the southern Unity state on Monday, without giving the exact locations.
When the South seceded, it took most of the former Sudan’s oil fields but all the pipelines still flow north, to the export terminal in Port Sudan.
In January, South Sudan shut down all of its oil fields in a row over the fees Sudan demands to transit the oil.
South Sudan depends on oil sales for 98% of state revenues, but pledged not to restart production until a deal was reached.
Parts of the countries’ common border also remain in dispute.
In February, the two states agreed to demarcate most of the border within three months, although this would exclude five disputed areas.
And the two countries agreed a framework agreement to give their citizens basic freedoms in both nations.
They agreed to allow citizens of the other state to live, work and own property on either side of the border, and travel between the two nations.
The UN says about 350,000 southerners have moved to South Sudan since October 2010, after decades living in the north, but some 700,000 southerners remain.
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(posted in News From Africa)
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