COVID-19 – What is the Impact for Tourism as a Vehicle of SMME Development and Incentivizing Environmental Management in South Africa?

Abstract

The tourism sector is regarded as a modern-day engine of growth and has significant potential to serve as a vehicle for socio-economic upliftment. Evidence also illustrates the potential that pro-poor tourism has for incentivising natural capital protection and ecosystem restoration. This paper explores the impact of the decline in global tourism, as a result of the Covid-19 pandemic, on incentivising environmental management. This is analysed in conjunction with emerging literature on the impact of environmental degradation on exacerbating risks of zoonotic diseases such as Covid-19. A causal loop diagram was developed to map the system and reflect its structure and functioning and capture interactions. The behaviour of the system was used to explore the impacts of the Covid-19 pandemic on SMME development. This informed the re-examination of the key constraints identified as currently limiting development and growth of pro-poor tourism SMMEs. The results re-emphasise the tourism sector’s vested interest in investing in the protection of natural capital and restoration of degraded ecosystems. It highlights the need for the sector to act collectively to support recovery from Covid-19, and build resilience by developing a strategic vision for tourism that is more sustainable and equitable, and balances the needs of people and the environment.