MSC Cruises SA MD calls for national ‘indaba’ to boost South Africa’s cruise economy

Ross Volk, Managing Director of MSC Cruises South Africa, has called for a national indaba to address the key challenges facing South Africa’s cruise industry and unlock its full economic potential. 

Speaking in an interview with MoneyWeb, Volk emphasised that tourism, particularly the cruise sector, can be a significant driver of economic growth, but only if all stakeholders work together urgently and strategically.

Volk outlined the need for a coordinated effort across various government departments, with a focus on infrastructure development, destination management, and safety. He highlighted that while South Africa’s tourism sector contributes only 3.6% to the country’s GDP, it has the potential to match global averages of 8-9%. 

However, he warned that without addressing critical issues like infrastructure and safety, South Africa risks missing out on the full benefits of its tourism industry.

“We need to do more, and I think we need to start looking at a national indaba to drive tourism to the next level because we are behind,” Volk said. “I’m certainly seeing some positivity in the government of national unity at the moment, but it requires greater alignment and action across all departments.”

One of the major challenges facing the cruise industry in South Africa in paticular is infrastructure. Volk noted that while some progress has been made, particularly with the construction of a R300 million terminal in Durban, more investment is needed to handle the large volumes of tourists brought in by cruise ships. 

He explained that the impact of the cruise industry as a “force multiplier” is significant due to the sheer number of passengers arriving at once. MSC’s smallest ship carries 2,500 passengers, while its largest can bring nearly 6,800.

“If they call into a port, the force multiplier effect of the economic impact is massive,” Volk explained, emphasising that improving port infrastructure and transport links is essential to accommodate these numbers.

While Cape Town and Durban have taken steps to improve their port infrastructure, Volk stressed that more needs to be done in other parts of the country, particularly Port Elizabeth, East London, and Mossel Bay. 

He pointed out that South Africa’s 2,800-kilometer coastline is vastly underutilised compared to the Mediterranean, where over 100 ports are available for cruise liners to dock.

In addition to infrastructure, Volk underscored the importance of safety and security, both for tourists and local citizens, noting that a safe environment is crucial for attracting and retaining tourists.

“The biggest challenge facing South Africa is security, but not only the security of foreign nationals coming in, but also our citizens. A happy citizenry and a safe citizenry is a positive one that welcomes people and allows us to grow the tourism sector,” Volk said.

Volk also highlighted the need for better destination management to enhance the overall cruise experience, ensuring that tourists have safe and efficient transport from ports to key attractions. 

He called for greater collaboration between public and private sectors to ensure that all aspects of the tourism value chain are optimised, which would benefit small businesses, which are the backbone of the economy.

“There’s a great opportunity for us to engage and to utilise the effects of SMEs and to multiply the effect of their impact on the economy,” said Volk, and this should be the focus of a national-level conversation involving government and private stakeholders, to address infrastructure, safety, and SME engagement.