South Africa’s Tourism Sector: Job Creation and Employment Analysis Using the Least Squares Method

Tourism is one of the fastest-growing sector of the world economy, with a significant impact on the socio-economic development of countries. In the context of South Africa, this sector is showing steady growth, generating new employment opportunities and stimulating economic development. The purpose of this study is to analyze the relationship between tourism revenues and employment, as well as to examine the impact of the tourism sector on the creation of new businesses in the country. To achieve this goal, we conducted a detailed analysis of World Bank data from 2001 to 2020, employing the least squares method for analysis. The results of the study indicate that, despite the growth of employment and the creation of new companies in the tourism sector in South Africa, there is no direct correlation between these indicators and the increase in income from tourism. However, new businesses in this area have a positive impact on the level of employment, which is confirmed by empirical evidence. These findings expand our understanding of the complex mechanisms of interaction between tourism and employment in South Africa. The inclusion of new job analysis in the study adds a new dimension to it, deepening our understanding of the economic processes taking place in this industry.