ECONOMIC PRESSURES ON TOURISM CREATED BY THE CAPE TOWN WATER CRISIS
by Peter Ferrara
Environmental and Natural Resource Economics
Dr. Tom M. van Rensburg
September 25, 2018
Many countries in Sub-Saharan Africa have seen a rapid boost in population in the last decade and South Africa is not an exception to this list. With a much larger population, countries must make effective changes by which they will manage their resources. Often focus is placed on non-renewable resources such as oil, and renewable resources like water are left out of view. This issue has come to prominence in Cape Town, South Africa in recent years. With a population that has grown by more than a million people since 2010 and one of the worst droughts faced by any African country in the past century Cape Town is faced with a serious water crisis and the possibility of a “Day Zero,” in which the city’s water supply reaches critical lows. For a metropolitan area that survives on revenue from tourism, the city is forced to find the right balance between conserving water to protect the well being of their residents and preserving the tourism sector of their economy. This paper will focus on the proper distribution of scarce water supply.
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