Increased competition on long haul routes.
Good news for consumers. I think both US, EU and Asia will see increased routes especially nonstop routes to and from Cape Town. This will of course put pressure on fares which is great because they are way too expensive as it is now.
You dont need to be a prophet to see what the future holds for the hotelindustry. Most major players will launch deluxe hotels especially in Cape Town next couple of years.
I also think we will have some alternative investments on the tourism/activity side in form of a great theme park in the Western Cape area some time before 2010.
Cape Town will become a major world class destination for congress and large conferences. I think Cape Town is on the verge of an international break through on the congress arena. The city needs great ambassadors, more competition in the air and a more developed infrastructure to get there. 2010 can be the training we need to get there.
Consolidation in the air. I think 2007 will have a couple of airline deals in store.
Why? Private Equity is going wild over travel globally. Somebody has finally realized this sector is undervalued and this spurs deals all across the leisure sector.
Tourism is great for ZA. The governemnt should therefore incourage private entrepreneurial inititives instead discouraging investments in the sector though beeing to political. 2007-2009 will be a test to see weather politics or business os more important.
Anyway the neigboring countries are not late to realize the regions potential and they are standing by to cash in on ZA´s possible failure by making tourism a political wild card tough playing the social engineering game.
Everybody benefits from letting investments flow freely in and out , this will create ventures, jobs and thousands of jobs amongst new suppliers.
The risk I see it now is that billions flow into real estate with profits that will benefit few. We need thousands of micro companies in the sector.