A guide to some key risks wellness tourism operators should be mindful of

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South Africa has been and is well placed to benefit from wellness tourism in the coming years, as evidenced by the uptick in eco-lodges and the country’s long-standing relationship with nature-orientated tourism. The country is blessed with a wide diversity of natural settings that global tourists are already familiar with, such as the Kruger National Park, the Garden Route, the Winelands, the Midlands, and the Karoo, to name but a few.

Amid these opportunities, risks exist, including South Africa competing against every other tourism location worldwide, including those vying for dominance within the global wellness tourism market. This high level of competitiveness magnifies the negative impact of operator mistakes or oversights on customer experience.

In a market where first impressions matter to the point of permanence, South African operators within the wellness tourism space and the sector are encouraged to be mindful of creating areas of risk due to inattention.

Based on our experience working with operators in the industry, below is a selection of categories that we have seen tourism operators and businesses fall short to their detriment.

Managing and mitigating the risk of injury

A critical part of the wellness tourism value proposition is providing products and services in a safe, unique setting, at an affordable price. In South Africa, that could be a hike up Table Mountain, riding dune buggies in the Kalahari, doing the Otter Trail in the Tsitsikamma National Park, or a bush drive in a national park in KwaZulu Natal.

An immediate area of concern for operators in the sector is falling foul of health and safety legislative requirements, particularly when certain of the activities offered carry with them an inherent risk.

Legislation seeks to provide a healthy and safe working environment for employees and persons who may be impacted by the undertakings of a business (such as clients, visitors, or third parties in the vicinity).

It further protects persons, such as wellness tourists, against hazards to their health and safety that may arise in surroundings managed by others.

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In addition to the ethical considerations associated with ensuring the safety and avoidance of harm to employees and the public, there are real business continuity risks associated with legislative non-compliance, with regulators having the powers under appliable statutes to halt operations where these may expose persons to harm.

If wellness tourists injure themselves during an activity offered by a tourist business and that business has not followed appropriate health and safety protocols and acted reasonably in preventing any foreseeable harm, as well as creating the potential for reputational harm, this opens the operator up to legal liability – both statutorily (ie criminally) and in terms of potential civil action suits for damages.

Mitigatory measures can be employed to help managers to manage the risks. In addition to understanding and complying with the appropriate legal requirements, having contractual indemnities and appropriately drafted waivers in place can minimise risks for operators to the extent competent in law.

In addition to complying with legislation, it is helpful (and in some sectors or services may be required) for wellness tourism operators to be accredited with the necessary councils, bodies, and representative associations in the sector in addition to the activities they offer (where appropriate).

While accreditation, more often than not, requires the paying of membership and compliance fees, these associations are validators of quality in the market and add a layer of legitimacy.

Privacy and data use

The mushrooming use of online booking portals and other associated digital systems within the wellness tourism and broader tourism space has allowed operators to lower costs and optimise the efficiency of their operations.

However, while wellness travel to South Africa is a click away, these systems mean that tourism operators are responsible for handling, using, and protecting tourist privacy and data, including banking information.

A data breach can spell the death knell of a wellness enterprise for several cycles, and with tourism, in general, a game of cash flow and foot traffic, significant disruptions in patronage represent a severe threat to any tourism business, wellness or otherwise.

Operators in the sector are advised to review relevant industry policies and guidelines and familiarise themselves with the Protection of Personal Information Act (POPI), which lays out how private user data should be handled in general. POPI breaches can result in criminal action or fines of up to R10m, both fatal penalties for most tourism businesses.

Insurance and liability

Similar to understanding the relevant legal framework and the risks associated with non-compliance, tourism operators, especially those within the wellness space, are well served to understand the risks they need to manage within their business and which of those risks can be appropriately mitigated through appropriate cover.

Increasingly we are seeing risks posed by contaminated food which can have horrendous consequences such as listeria outbreaks or accidental poisoning. The ingestion of suspected methanol by tourists in Laos resulting in deaths is an example that is front of mind.

If an incident occurs at a wellness tourism establishment, the operator is not insured, and the guest or guests seek damages, it can be ruinous because of the high costs civil claims attract, in addition to attaining legal representation.

Labour law and relations

Tourism is a crucial driver of employment in South Africa, contributing 9.2% to total employment and 8.6% to gross domestic product in 2023. As a key employer, wellness tourism operators and the industry must comply with legislation governing employment in South Africa, with the Labour Relations Act the centrepiece of the employment landscape.

It is essential for any business to comply with sector and general employment legislation, guidelines and governance practices to cultivate and sustain a productive workforce, which in turn will enhance the company's competitive edge in the sector.

In addition, if a wellness operator runs a franchise model, it is advised to check in with franchisees regularly. All it takes to turn away wellness travellers is for one franchisee to cut corners and their lack of professionalism to become public.

As Webber Wentzel, we have supported our clients in dealing with the challenges raised above and others. While such support comforts those seeking legal advice, wellness tourism operators should heed the adage “prevention is better than cure.” If legal advice is sought, in a sense, it is already too late.