JOHANNESBURG (Reuters) – Slender legs in sparkling stilettos stretch seductively across the billboard at the heart of Johannesburg’s business district, trying to lure South Africans to a smart strip club chain.
Down the road, an entire fake Tuscan village draws thousands of people every day to pour coins into slot machines and slap down wads of cash at its plush casinos.
Strip clubs and gambling — banned until a decade ago under apartheid — are now big business here thanks to a booming economy and the more liberal attitudes that came with the dawn of democracy and an end to international isolation.
And decadence is the name of the game as companies battle to entice a nouveau riche clientele swollen by the growing ranks of the black middle class.
“The old Dutchmen in power had very narrow minds,” said Lolly Jackson, chief executive and founder of South Africa’s most famous chain of strip clubs, Teazers. “When we got democracy people realized this is what they want to do.”
Under stringent apartheid-era censorship laws, magazines were forced to cover breasts with stars, bare legs on a packet of stockings were branded pornographic and casinos were banned by a government dominated by conservative Afrikaners, descendents of Dutch and French settlers.
South Africans wanting a naughty weekend of sex and gambling had to travel to neighboring Swaziland or to one of the nominally independent “homelands” for blacks.
Censorship collapsed with South Africa’s transition to democracy in 1994. Twelve years on, sex is a commodity like any other, and 80 percent of the population gamble regularly if you include playing the national lottery.
“We have the most liberal constitution in the world so people are simply doing what they like to do,” said Derek Auret, chief executive of the Casino Association of South Africa. “Obviously the economy has something to do with it.”
Hard figures are difficult to come by, but anecdotal evidence shows the number of strip clubs and amount of pornography is growing fast.
The biggest boom appears to be at the top end of the market as the once-illicit trade formerly confined to the seedy underground joins the mainstream economy and savvy businessmen seek to capitalize on surging consumer spending.
Under the slogan “the teaze without the sleaze,” Teazers prides itself on its upmarket clientele and inhabits prime real estate in affluent suburbs of the major cities. It has just launched an aggressive advertising campaign in key business hubs aimed at high earners.
The privately owned company has expanded its empire from just one club in 1997 to nine in 2006, with more on the way, and revenues have leapt to around 40 million rand ($6.65 million) a year from 1 million in 1997.
Teazers is not alone. Newspapers feature adverts from a plethora of establishments billed as “executive” or “private clubs for gentlemen,” and a recent magazine survey showed almost nine out of 10 executives had visited a strip club.
“Not that long ago…a wet T-shirt competition held in a neighboring kingdom attracted convoys from Johannesburg,” said the survey in business weekly FinWeek. “Today, visiting a strip club appears to have become mainstream.”
As strip clubs shed their seedy image and move upmarket, South African women are increasingly opting to accompany their boyfriends or husbands when they go out to ogle other women.
“Instead of saying ‘that vixen is going to steal my husband’, women will ask themselves — how do I get those boobs, how do I get that butt?’” said Jackson.
Jackson rebuffs as “nonsense” criticism that the rise of the strip club is fuelling rampant rape levels, and says HIV/ AIDS — which affects one in nine South Africans, the highest single caseload in the world — is not a problem in upmarket clubs since clients are not allowed to touch dancers.
RESPONSIBLE GAMBLING?
The growth of South Africa’s heavily regulated gambling industry is easier to measure in numbers.
Excluding the national lottery, revenues from gambling leapt 21 percent to 9.9 billion rand ($1.66 billion) in 2005 — reflecting a long-term trend since it casinos and bingo were legalized in 1996, according to National Gambling Board figures.
Lottery players account for a substantial number of the 80 percent of South Africans who gamble, many hoping to trade a life of poverty in the sprawling townships for the comparative riches of the suburbs.
Worried about a gambling epidemic when half the population lives below the poverty line, the government insisted on some of the toughest regulations in the world, including obligatory “winners know when to stop” warnings with each advert.
Analysts say the emphasis on responsible gambling has helped smash apartheid-era taboos, and casino operators have chalked up massive growth. The biggest, Sun International, increased earnings by almost 90 percent in its last financial year.
Its Sun City resort — a symbol of apartheid-era repression made famous by the protest anthem “I Ain’t Gonna Play Sun City” — is now packed with middle-class black families with cash to spend, thanks to record low interest rates, subdued inflation and South Africa’s massive affirmative action program.
The Johannesburg index of casino and hotel operators has tripled in value in the past two years compared to a jump of around 90 percent by the all-share index.
And analysts predict more growth for Sun International and rivals Peermont Global and Gold Reef Casino Resorts.
“There is still huge potential in this market and casino operators have hardly touched the townships yet,” said a leisure industry analyst at a major investment bank.