Tourism: Minister's Budget Vote Speech & Responses by ANC, DA and IFP
Briefing
14 May 2013
Minister of Tourism, Mr Marthinus van Schalkwyk, gave his Budget Vote Speech on the 14 May 2013
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Chairperson, South Africa consists of a tapestry of interwoven cultures, and the world’s eyes have opened up like never before to the beauty, diversity of experiences and the endless possibilities our country has to offer. In 1993, South Africa received a mere 3,4 million foreign visitors.
However, growing by 300% to 13,5 million visitors in 2012, 9,2 million of whom were tourists, South Africa is continuing to entrench its status as a major international tourist and business events destination. These results demonstrate the effectiveness of our economic diplomacy, underpinned by a sound foreign policy. They also indicate our systematic investment as the National Department of Tourism (NDT) in policy and strategy development and implementation.
We are driving double-digit growth, as we received 10,2% more tourists in 2012,when 9,2 million international tourists visited South African shores compared to the 8,3 million tourists who travelled to our country in 2011. South Africa’s tourist growth rate in 2012 was more than double the rate of average global tourist growth, which the United Nations World Tourism Organisation estimated at about 4%.
A few years ago, we made the strategic decision to invest in the emerging markets on our continent, in South America and in Asia.
The results in these markets were astounding. Arrivals from our continent have maintained the solid growth path to which we have become accustomed, with growth of 8,5%. In light of this, we will invest R218 million over a three-year period to grow our share of this market even further. We will also be opening offices in Nigeria, Angola and Kenya in this financial year, and will expand our footprint to Ghana, Tanzania and Uganda through a hub strategy.
From our BRICS partner countries (Brazil, Russia, India and China), we have also seen phenomenal growth. Particularly strong growth was recorded in 2012 from Asia, which was up 33,7% compared to the figures recorded in 2011, driven by growth from China and India. Central and South America recorded growth of 37% thanks to continued good tourism growth from Brazil. Brazil continued to show impressive growth rates, becoming a top ten overseas source market for arrivals for the first time, with almost a 45% increase compared to 2011. With the exceptional growth recorded from Brazil, we have decided to open a South African Tourism (SAT) office in Brazil this financial year. Added to this, we are currently negotiating a joint BRICS memorandum of understanding among tourism ministers.
This financial year will also see the roll-out of SAT’s global e-marketing strategy, “Meet South Africa”. This strategy will focus on the uniqueness and warmth of our people and the emotional benefits of a South African holiday, and we are confident that our strategies and marketing campaigns will yield great success for our destination. Furthermore, to strengthen the country’s destination offering and enhance the overall visitor experience, we have embarked on a process to align the branding and service levels at the more than 240 visitor information centres (VICs) across our country.
Not only have we established ourselves as a leisure destination, but we have made great inroads as a business tourism destination as well. In the first year of the establishment of the National Convention Bureau, it has secured 87 new association meetings for the period 2013 to 2017, which will contribute more than R2,6 billion to the economy. In 2013 alone, the 38 secured association meetings will bring more than 57 000 delegates to South Africa, who will inject R680 million into our economy.
We are working hard to ensure that travel and tourism becomes attainable for ordinary South Africans. At any given time, three quarters of all tourists in South Africa are South Africans, with domestic tourists having contributed R101 billion to our economy in 2011. We are determined to promote and enhance domestic tourism and implement strategies to grow this sector, which is the lifeblood of our tourism industry. Last year, we developed and implemented our first ever Domestic Tourism Growth Strategy together with the “Vaya Mzansi” domestic tourism marketing campaign.
We are thinking innovatively of new ways to ensure that more South African families have access to the places that we have inherited as a nation. To truly deliver on the promise of tourism, we have to create the conditions that render the tourism experience and the treasures of our country accessible and affordable to a much greater share of our population. To this end, I can today announce that, in partnership with the Industrial Development Corporation (IDC), we have just commissioned an audit of underutilised state assets and properties that could be developed into tourist attractions and facilities.
It is simply wrong to have state resources stand vacant while there is cropped-up demand in certain market segments. Pursuant to this, we have also commissioned a feasibility study for a pilot budget resort chain, which could in some or other way be de-risked through partnership approaches. The time has come to remove the final barriers to fully unlock our country’s tourism treasures and the intrinsic value of travel for all South Africans, thereby bolstering our contribution to job creation and poverty alleviation.
In implementing our Domestic Tourism Growth and Cultural and Heritage Tourism strategies, we will also be conducting an assessment of all our world heritage sites, which, as part of the rich heritage of our country, have been identified as products with intrinsic tourism value. From these assessments, it is envisaged that we will identify the various levels of intervention for each of the products and that, together with the Department of Arts and Culture, we will prioritise projects to be initiated from 2014 onwards. We have also developed marketing tools for these sites, which will be distributed at strategic areas, including ports of entry as well as missions and embassies throughout the world, using various languages and media.
The department is also in its first year of implementing regional tourism support packages. We have compiled provincial profiles to better understand the status quo of tourism in the nine provinces. Strategic and critical areas for tourism development were identified for support. The support ranges from tourism infrastructure development and nodal and spatial development zones to skills development programmes, service excellence awareness and training, tourism routes development, rural tourism programmes, and strategic niche tourism market development.
Tourism is also a key sector of the economy, and is making a difference in the lives of ordinary South Africans. The role that tourism plays in our country should never be underestimated. In terms of the latest Tourism Satellite Account (TSA) released by Statistics South Africa, for the period ending December 2011, the direct tourism contribution to gross domestic product (GDP) went up by 5% to R84,3 billion in 2011. Direct employment in the sector as a percentage of overall employment in the country went up from 4,3% to 4,5% between 2010 and 2011. This was as a result of the increase of about 31000 in direct jobs in the sector from 2010, to a total direct employment rate of 598432 in 2011.
During the past financial year, the NDT again exceeded its Expanded Public Works Programme (EPWP) target for full-time equivalent jobs. Training or skills development is of course critical for the tourism sector. Allow me to highlight some of our EPWP programmes. In the 2012/13 financial year, 500 young persons have graduated as chefs and 120 have already been placed with established hospitality institutes, such as hotels, bed-and-breakfast establishments and restaurants, as part of our Young Chefs training programme. Altogether 300 of the mentioned 500 have been enrolled for second-level training, which is equivalent to NQF level five (national diploma) and, owing to the success of the programme, another 500 young people have been enrolled for the first time in the programme for this financial year.
This sector is also a fertile breeding ground for entrepreneurs and small, medium and micro-sized enterprises (SMMEs). We will continue collaborating with the Tourism Enterprises Partnership (TEP). TEP was successful in achieving and exceeding its performance indicators over the past year. For 2012, TEP supported 5 003 jobs created by SMMEs, which delivered an increased turnover of R785 million. This raised TEP’s overall contribution to job creation over the past ten years to more than 75 786 jobs and saw a turnover increase of over R6,4 billion. The department will continue to fund TEP with R25 million to support SMME development in this financial year.
The department has also developed the Tourism Accelerated Apprenticeship Programme (TAAP), which is to provide further education and training (FET) to tourism graduates through practical workplace training and exposure through skills development, and to familiarise the graduates with the operational side of the tourism and hospitality sector. In the 2013/14 financial year, the department has been allocated R3 million to roll out the TAAP. As a result, 100 FET interns will be recruited and placed at various institutions across the country.
Transformation in our sector is critically important, because tourism is everybody’s business. Every South African must derive benefit from the industry, and therefore, concerted efforts are made to promote transformation. Recognising that transformation is vital to ensure the sustainable growth and development of the tourism sector, the 2012 Tourism Bill was passed in this House. This legislation heralds the role of tourism as a major force for the economic transformation in our country. During the previous financial year, we established a BEE Charter Council to oversee efforts to ensure effective transformation in the sector. Going forward, the BEE Charter Council will closely monitor compliance with relevant legislation, and will drive initiatives to ensure that effective transformation of the sector leads to meaningful growth and equal distribution of the benefits that tourism brings.
In conclusion, as a tourism industry, we remain committed to working together to grow tourism in our country with the support of all South Africans, all of whom have the power to be important tourism ambassadors.
I would like to take a moment to thank our Deputy Minister, Ms Tokozile Xasa, for her commitment and support. Thank you also to the Director-General, Mr Kingsley Makhubela, and his capable team for bringing our Department this far in a very short period of time.
Furthermore, the unqualified report of the Auditor-General after the 2011/12 audit, which was the NDT’s second audit as a stand-alone department, demonstrates administrative success in establishing a sound governance foundation, which will support the implementation of our mandate.
A special thank you to the board of SAT and the executive team under the leadership of the Chief Executive Officer, Mr Thulani Nzima, for their excellent work and the support rendered to the department to achieve our targets.
In addition, I would like to express our gratitude towards the private sector for the constructive relationship we enjoy. Thank you to all our partners for engaging with us, and for your commitment to our shared growth goals.
To the chairperson and members of our portfolio committee – we value and appreciate the good working relationship with Parliament.
I thank you.
Sayedali Shah , Shadow Deputy Minister of Tourism
Highlights:
- The contribution of the Tourism Sector to the economy of SA must be appreciated, we must locate the potential of the Tourism Sector to be the engine for job creation;
- Will the Department of Tourism be reviewing or extending some of it’s’ indicator targets to 2030, to better coincide or align with the NDP time-frame?
- To improve job creation, The Minister should consider offering the private sector incentives for employing young people; like the Youth Wage Subsidy which the DA government in the Western Cape is implementing successfully.
- More emphasis ought to be placed on eco-tourism as a tourism product;
- SA must leverage its strength as one of the world’s ancient civilizations and leverage our strength as one of Africa's largest economies for business, trade, meetings, conventions, and sports and other events as well as exhibition tourism.
Mr Speaker and Hon. Members,
A labour force survey recently released by Stats SA indicates that South Africa's unemployment rate has increased from 24.9% in the previous year to 25.2% in the first quarter of this year. One may argue that if the number of people who have given up looking for jobs were taken into account the actual figure may easily be in the region of between 36-40%.
The fact is that one in two of every young South African is unemployed. This is indeed a recipe for disaster. Analysts warn that failure to deliver more inclusive growth and failure to generate economic growth at a level required to create sustainable jobs (which the DA estimates should be at least 8%), could see SA facing a serious threat to its social stability. Furthermore, the IMF has predicted that SA's economic growth will only manage to reach 2.8% this year, from 2.5% in 2012 and rise to a meagre 3.3% in the following one. If this poor trend continues to persist it is highly unlikely that the country will meet the targets for creating jobs. Now clearly, this situation is not good enough to meet the challenges of unemployment and poverty alleviation in the country.
Mr Speaker, it is within this context that the contribution of the tourism sector to the economy of SA must be appreciated. It is within this context that we must locate the potential of the Tourism Sector to be the engine for job creation.
Tourism is a major driver of economic growth in most parts of the world. Several countries have transformed their economies by using their tourism potential to the fullest, and so should we. It has the capacity to create various types of employment on a large scale- from the most specialised to the unskilled.
It is labour intensive, has low barriers of entry for entrepreneurs; accommodating to SMME's providing quality employment opportunities; and contributing to a higher quality of life. It also has extensive two-way (backward and forward) economic linkages that build overall income, creates employment opportunities, especially for women, youth and disabled persons; bringing about greater social equity and justice.
Moreover, it helps generate National, Provincial and Local Government Revenue. In short, the tourism industry plays an integral part in the socio-economic progress of the country.
Therefore and rightfully so, Tourism is considered to be the key sector with the potential to grow the economy and to create jobs. The NDP targets are to create 11 million additional jobs by 2030 and to increase the GDP by an annual 5,5 percent over the period; whereas, the National Tourism Sector Strategy targets for 2020 are the creation of 225,000 additional jobs and a total direct contribution to the GDP of R499 billion by 2020.
However, we have some concerns in this regard and they are as follows:
a) Whether the Department of Tourism will be reviewing or extending some of the indicator targets to 2030 to coincide or align with the NDP time-frame?
b) Whether the full-time equivalent jobs created through the Expanded Public Works (EPWP) programme will be counted towards the 225,000 additional jobs to be created by 2020, as many of these are project based and others temporary?
c) That the current growth rate stands at 1.5 percent. If the pace remains the same the NDP target of R 499 billion by 2020 will fall short by R150 billion.
There are also some questions that need to be asked:
1. Given the current contribution tourism is making to the GDP
(Which is around 11%) has the Department estimated the desired growth rate necessary to meet the 2020 targets?
2. Is the Department, given its current performance, confident that it will be able to meet the 2020 targets?
3. Given the fact that:
a) Most of the potential investment money is sitting in the private sector and not in the public sector;
b) Most of the employment in the tourism sector comes from the private sector;
What is the Minister doing to engage with private sector with a view to ensuring continuous infrastructure investment in the Tourism Sector?
He should perhaps consider offering them some form of incentives for employing young people; like the Work and Skills Programme, the Youth Wage Subsidy programme that the DA government in the Western Cape is implementing successfully.
4. Given the fact that most of the Tourism Budget resides in the big cities; how does the Department effectively monitor these funds and evaluates these transfers?
Mr Speaker, now that we have positioned Tourism to be a major engine for economic growth and remain determined to harness it's direct and multiplier effects for employment and poverty eradication; and as we pursue our objective of capturing a fair share of the over one billion annual tourist arrivals from the Global Tourism Market; let us ensure that we do so with a degree of responsibility and in an environmentally sustainable manner.
Sustainability should and must serve as a guiding principle for the implementation of our Tourism Policy.
Our development and management strategies should be implemented in a manner which ensures that Tourism largely acts as a “smokeless" industry and that its ecological footprints remain as soft as possible. No one engaged directly or indirectly in the tourism industry should be allowed to secure short-term gains by resorting to what has been termed the "darker side" of tourism.
South Africa has some of the greatest variety of fauna and flora in the world that has perhaps not been exploited for its tourism potential.
South Africa is also rich in terms of bio-diversity and is therefore a perfect candidate for eco-tourism. Therefore, more emphasis ought to be placed on eco-tourism as a tourism product, whose parameters should be broader than those of nature tourism alone.
Tourism operators need to be encouraged to promote eco-tourism which could also be turned into a grassroots, community based movement, through awareness campaigns, education and training of the local community as guides.
SA has a unique cultural heritage as well as a vast array of natural heritage. We are home to some of the world’s most recognisable heritage sites.
The deep-rooted relationship of tourism and our cultural assets should be fully recognised and provided for. Therefore, special attention should be given to "rural tourism" and tourism in small settlements where sizable assets of our cultural and natural wealth exist.
We also need to actively promote the development of “village tourism" as an important tourism product in order to spread tourism and its socio-economic benefits to people in rural areas.
SA must also leverage its strength as one of the world’s ancient civilizations. We are after all, home to the "cradle of mankind" and in the context of our rich and diverse natural heritage, must seek to increase our share of the huge international travel market especially the long haul segment of this market.
We must also leverage our strength as one of Africa's largest economies for business, trade, meetings, conventions, and sports and other events as well as exhibition tourism.
The slowdown in the global economy, especially in some of our target countries has a negative impact on international arrivals. Therefore, the NDT must place a sustained focus on and make considerable investment in Domestic Tourism.
In most countries, domestic tourism is the foundation of a viable and sustainable tourism industry.
Furthermore, it should be so designed that the infrastructure created to support it serves as a backbone for international tourism in times to come when the global economy recovers.
SA also has some of the greatest “adventure tourism" assets in the world in the form of mountains, rivers, lakes and waterfalls too. All of these must be developed and promoted. A colleague informed me of a waterfall approximately 20 odd kilometres inland from Lusikisiki in the Eastern Cape (in a place called Kwabe) I think, which has great potential to be a major draw card, if it were to be developed and marketed.
A new breed of young tourists, with a marked preference for adventure and distant destinations, in hills, caves and forests is emerging. This young adventure seeking tourist is not looking for 4 or 5 star accommodation, but only for a simple, clean and affordable place to stay. The question is - are we meeting the requirements of this class of tourists and others like the backpackers?
The Department of Tourism must also promote the development of sustainable "beach and coastal tourism" resort products. There is a need to identify a series of Government or even private sites for this purpose. There is great potential for this in the Eastern Cape.
Not too long ago, I visited Port St. Johns, a coastal town, as part of the Portfolio Committee of Tourism's oversight tour to the Eastern Cape and discovered many awesome locations in and around Port St. Johns with tremendous potential for tourism development. However, I was saddened by the neglect of such a beautiful town with so much potential.
In conclusion, Mr. Speaker, South Africa's physical infrastructure is the very foundation on which Tourism is to be built and this ranges from ports of entry to all modes of transport, roads and railway to urban infrastructure supporting tourism facilities such as access roads, power and electricity, water supply, sewage, sanitation and telecommunications amongst others. Therefore, investment in the development and proper maintenance of SA's infrastructure is crucial; especially the road network which is particularly vital to tourism, for most of the passenger traffic is by road.
Furthermore, many of the tourist circuits too are entirely dependent on roads. There is also an urgent need to construct new roads and improve on existing roads especially rural roads linking our heritage sites and other places of tourism interest. I can give the example of the R74 in the OFS and the R66 in KZN which have been since a long time progressively deteriorating, leading to the closure of some businesses like BnB's as well as in the cancellation of some tourism attractions from the tourists itinerary and to the detriment of the local economy.
This further highlights the importance of proper co-ordination and co-operation between relevant sister Government Departments including Home Affairs, the Department of International Relations and Cooperation amongst others and in this case, the Department of Transport.
I wish to reiterate what my colleague, Honourable Stuart Farrow raised earlier: that their needs to be a synergy and alignment of purpose between the 3 spheres of Government, in the absence of which the NDT will fail to meet the targets envisaged in the NTSS and the NDP to the detriment of the economy and country.
Stuart Farrow, Shadow Minister of Tourism
Highlights:
-Tourism’s role in the growth of our economy and as a job creator has been underestimated - the DA sees the countries of China, India, South America and our own continent of Africa as our biggest opportunity and to cope with the potential upsurge, we need to get our ducks in a row;
-With more than 100 missions and embassies abroad and a similar amount of South African Airways (SAA) offices, requests should be made to share tourism information facilities wherever possible;
- Budgets transferred to Provinces and Local governments need to be thoroughly scrutinised to ensure no duplication and wastage takes place;
- Quality assurance is important - Tourist guides cannot operate illegally and must be both accredited and trained. In the DA run Western Cape, the Tourism department is constantly reining in dodgy tourist guides and other Provinces need to follow suit
- More must be done to hold cross cutting Ministries to account - we cannot have a situation whereby the Embassy in Beijing ran out of visa stickers or where tourist facilities are closing down because the road access is not properly maintained.
Speaker
Tourism’s role in the growth of our economy and as a job creator has been totally underestimated judging from the recent figures released by Stats-SA during April 2013.
Figures show that visitors to our country since the staging of the FIFA World Cup have been steadily increasing despite the doomsayers suggesting that it was a once off event.
It certainly placed us on the world map. Visitor numbers have grown steadily to the extent that we doubled the United Nations world tourism organisations global average tourist growth figures of 4%.
In real terms this means that tourism is slowly becoming a major direct contributor to our Gross Domestic Product (GDP) which shows a growth of 5% from last year, and due to its intrinsic link to job creation the industry now employs about 600 thousand people.
This is a remarkable achievement considering the world recession which was in play in many countries of the world during 2011/2012.
If our figures are correct and, I must say they do need more refinement, then we are moving into exciting times. However, we cannot take our tourism successes for granted for although our growth in international tourism is the main driver of job creation we have to increase domestic tourism in order to sustain these jobs.
To see a 10.2% increase in international tourists from 8.34 million to 9.2 million is no mean feat considering also the small budget that the national department of tourism has to operate on and the current trends coming out of our non-traditional countries.
The DA sees the countries like China, India, South America and our own continent of Arica as our biggest opportunity and to cope with the potential upsurge we need to get our ducks in a row.
In China some 100 million people travelled abroad and from India 50 million during 2011.
With that in mind it was little wonder that visitors to South Africa from these countries increased so dramatically.
China increased by 55.6%, India by 18.2%, Brazil by 44.7% and Africa as a whole by 8.5% between 2011 and 2012.
If we want a similar growth pattern in 2013/14 then there is no doubt the Minister and his Department will have to ensure that every cent of his marketing budget is optimised in order to tap into these potential tourists groups
However, international marketing is an expensive business when one considers the devaluation of the rand against the major currencies of the world and this doesn’t go far where office premises, staff salaries and language services are required.
I say this in the knowledge that if a South African tourism office in Angola can cost in excess of R 10 million to set up, then an office in Europe, India or China could be at least double or more.
We have over 100 missions and embassies abroad and a similar amount of South African Airways (SAA) offices so until more funds can be found requests should be made to share these facilities wherever possible.
SAA as the national carrier should therefore also play its part in promoting South Africa as a destination and in so doing get the “bums in the seats” that every airline is looking at. A similar arrangement could also be done for other airlines that have co-share or alliances agreements with SAA.
Furthermore Minister, budgets transferred to provinces and local governments need to be thoroughly scrutinised to ensure no duplication and wastage takes place. I have mentioned this concern before and I will mention it again - monies cannot flow into municipalities that don’t have the necessary tourism directorates, are not properly capacitated or are not seen to be part of the overall provincial package on offer.
My oversight visits to these municipalities and provinces particularly in the Eastern Cape brought this issue to the fore. What I experienced and can be often seen in the local media is the continuous duplication of destination adverts and at their tourist centres a large number of poor quality brochures which not only lack full and clear information but also are often poorly edited.
Minister, I would appeal to you and your relevant marketing directors to involve themselves in a more hands on coordination and guidance role in these more problematic areas in order to avoid the waste of scarce resources.
In the very same light, neither can you let your Department spend scarce funds on artwork and cars or expensive furnishing for extravagant staff so called “pause areas”.
Our recently held tourist showcase the Indaba needs a re-looking. It appears as though it is losing its impact and is seeing a decline in the number of buyers attending every year. The costs for the exhibitor are also becoming exorbitant with the provinces and local government taking up most of the space.
In my constituency the Buffalo City Metro spent R 430 000 on last year’s Indaba with no visible benefit to the city. This is according to the local Chamber of Business. Their presence there was done despite them having no effective front of house tourism office or strategy in place.
I question how many other municipalities or provinces spent similar amounts with limited return.
Quality assurance is one of your Department’s goals and although the Tourism Bill will deal with this matter in a more formal way, there is still an urgent need to put in place the necessary checks and balances until the act is finally assented to.
Tourist guides cannot operate illegally and must be both accredited and trained. In the DA run Western Cape, the Tourism Department is constantly reining in dodgy tourist guides and other provinces need to follow suit. We cannot let these illegal operators give the industry a bad name.
Also in the Western Cape, WESGRO’s strategic focus in increasing tourist numbers to the significant beautiful diversity and splendour of the Western Cape Province has made massive strides with recent figures revealing double digit growth to many of the more famed destinations like Table Mountain, Kirstenbosch, and Cape Point Nature Reserve - the latter of which showed an increase of 24%. It is no wonder therefore that President Zuma was quoted as saying “God resides in Cape Town”.
Overall though, the province saw a decrease in the number of international arrivals through Cape Town International due to the cancellation of SAA’s flights to the United Kingdom and the grounding of low cost airlines 1-Time and Velvet Sky.
To this end dedicated engagement with airlines and charter companies is taking place in order to once more secure direct flights into Cape Town International.
For your Department to reach its goals Minister, more must be done to hold cross cutting Ministries to account. We cannot have a situation which recently occurred whereby the embassy in Beijing ran out of visa stickers, we cannot have tourist facilities closing down because the road access is not properly maintained, we cannot afford to have bad media because of a breakdown in law and order or the safety of our tourist are threatened, nor can we have unscrupulous operators charging what they like at our parks, restaurants and accommodation.
South Africa has a wonderful diversity of people, landscape and wildlife and with 8 World Heritage Sites to our credit; it has all the opportunities and potential to make this country a sought after and affordable destiny of choice. We cannot let these so called “challenges” get in our way. It’s in your hands Minister - so let’s make it happen.
Finally to ensure that we become the world’s Top 20 tourism destination by 2020 we strongly recommend that your Departments budget be increased during the medium term review.
Unfortunately I won’t be part of that process next year but I trust that the new Portfolio Committee in 2014 will make this happen, for without the extra funds your task will be more arduous.
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Vote 35 - Tourism Budget Vote Debate |
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Speech by Hon Xoliswa Makasi during the National Assembly Debate on Tourism Budget Vote
14 May 2013
Topic: Rural Tourism and Women
Honourable Chairperson
Honourable Minister Van Schalkwyk
Honourable Deputy Minister Xasa
Honourable Members
One of the immediate priorities of the ANC government when it came to power in 1994 was to redress the imbalances of the past and, in particular, to improve the quality of life of the poor.
It is a well known fact that, in rural South Africa, more than half of households are headed by women who, together with children, make up the poorest of the poor. Tourism being a labour intensive sector, should logically allow for the rural population to share in the benefits of tourism development which promote a more balanced and sustainable form of living development and has the capacity of providing an alternative to urbanisation, while enfranchising both women and the youth. An important economic objective set out in the Tourism White Paper is that tourism should be used to aid the development of rural communities with women, in particular, being mentioned as having an important role to play in the development of responsible tourism in rural areas.
Honourable Chairperson, there is a dire need of a drive towards increasing economic participation by the historically marginalised, with the tourism sector having much to gain from transforming itself and the benefits of this transformation. Then, certainly one of the objectives of this budget vote is to do more to develop tourism within rural areas as a way of dispersing the benefits of tourism and increasing its anti-poverty impact.
If more tourism can be developed in rural areas, particularly in ways that involve high local participation by women in decisions and enterprises, especially in small-scale operations and culturally-based or farm-based products, anti-poverty impacts will be enhanced.
In this regard I cannot fail to mention Ms Judy Stuart who was nominated for 2012 Women of the Year for a seven year old Future Farmer Project which provides platforms for young people in agriculture and farming to become successful commercial farm managers or farmers in their own right. Dairy farming has traditionally not been an attractive industry for rural and impoverished communities, but with this apprenticeship project Ms Stuart has made inroads into the communities by mentoring young people for a future in the dairy farming industry.
South Africa`s top tourism destinations, including national parks, wilderness areas, mountains, lakes, and cultural sites, are generally located in rural areas. Thus tourism is already an important feature of the rural economy in these specific sites. The aim of promoting tourism is to increase the net benefits to rural people and increase their participation in managing the tourism product.
A number of key tourist attractions such as Mapungubwe National Park located in rural areas which are not receiving the benefits stemming from the tourism industry; and the limited involvement of local communities being a major constraint in developing tourism in rural areas.
There are establishments that are white elephants because communities were never mentored and trained on how to maintain their establishments.
Minister, what mechanisms have you put in place to ensure that communities are provided with the necessary support to sustain their businesses?
2012 Rural Tourism Strategy aims to address the following objects:
to create a platform for the sharing of knowledge of best practice, development opportunities and challenges in rural areas for tourism development;
to facilitate the coordination of rural tourism development initiatives amongst relevant stakeholders;
to create an enabling environment for rural tourism development to stimulate job creation;
to identify and recommend strategic areas for tourism development in rural areas within the sector; and
to guide strategy development within key documentation generated for tourism development and management in South Africa.
The Honourable Minister has also identified the inadequate resourcing and funding of tourism in rural areas as one of the problem-areas hampering rural tourism development. Although budget vote 35 makes provision for domestic tourism to the tune of R 369.8 million for the present fiscal year, no specific amount is earmarked for the purpose of rural tourism. It is known that the Department of Touris`s poverty relief projects promote the development of community-owned tourism products and infrastructure development, capacity-building and training and the establishment of SMMEs and business development projects, but one would still like to see that rural tourism is appropriated specific amounts and performance indicators on an annual basis.
Rural tourism is primarily aimed at tourists who are encouraged to explore the route and its offerings in their own vehicles. Most secondary rural roads to these destinations are gravel roads which, when well maintained, add to the whole feeling and experience of going to a rural area. However, if not maintained, gravel roads become a liability to tourism as potential visitors are diverted away from the area by the state of the roads, especially in deep rural areas.
With the introduction of the outcomes-based approach, the Department of Rural Development and Land Reform revised its 2010/13 Strategic Plan to take into account the need to create vibrant, equitable and sustainable rural communities. The outcome is linked to, amongst others, improved rural services to support sustainable livelihoods; rural job creation linked to skills training and promoting economic livelihoods; and an enabling institutional environment for sustainable and improved growth.
Honourable Chairperson, the ANC government recognises the vital role of the tourism sector`s potential to bring about economic growth and employment creation. It is, therefore, encouraging that the Honourable Minister of Tourism recently said that community beneficiation is at the heart of the National Rural Tourism Strategy and that an emphasis of the strategy is the understanding that the development of rural tourism can make a powerful contribution to poverty alleviation in areas that are often characterised by poverty and under-development. The strategy is an endorsement of the Department of Tourism commitment to the development of rural economies in general, and to rural tourism in particular.
The ANC supports budget Vote 35.
I thank you.
Speech by Hon Regina Lesoma during the National Assembly Budget Vote on Tourism
14 May 2013
Topic: International Tourism
Honourable Chairperson
Honourable Minister Van Schalkwyk
Honourable Deputy Minister Xasa
Honourable Members
The 2013 January 8th Statement mentions that the goals of economic transformation, growth and development require decisive action to thoroughly and urgently transform the economic patterns of the present, in order to realise South Africa`s vision for the future.
To eliminate poverty, ensure a sustainable increase in employment and reduce inequality, the economy must grow faster and in ways that benefit all South Africans. The ANC government-endorsed policy frameworks and programmes to drive this forward include the National Development Plan and the National Growth Path, which identify tourism as one of the job driver.
Honour arable chair may I express our revolutionary appreciation of the work well done once again by our Hour arable Minister , Deputy Minister supported by well capable administration and ANC together with fellow south Africans.
The growth trend indicates that there was more tourists from outside the African continent in 2012, with Europe remaining the highest source of overseas tourists to South Africa. The strongest growth was recorded from Asia with up to 33.7 percent, driven by growth from China and India. Central America and South America recorded 37.0 percent with most of the growth coming from Brazil.
When releasing the tourism statistics for 2012 on the 25th April 2013, the president of the Republic of South Africa, his Excellency Jacob Zuma said; I quote;
"The BRICS summit held in Durban last month highlighted the economic potential that our affiliation with this bloc has for South Africa and the tourism industry is no exception. Tourist arrivals from the BRICS countries accounted for 330 834 of our international tourist numbers in 2012 and the potential for further growth is huge. Greater collaboration at this level will no doubt go a long way in making South Africa a more accessible destination for visitors from these markets and ensuring that these countries continue to fuel our industry`s success going forward";
"Regional Africa remains the pillar of our tourism economy and we are happy to see that arrivals from the region have maintained the solid growth path we have become accustomed to. Africa`s importance to our tourism industry will continue to grow, as African economies are amongst the best performing economies in the world at the moment," Close quote.
This clearly indicates that Regional tourism growth is really important and must be facilitated. We therefore need to understand the context within which regional tourism takes place. The tourism industry experts indicate that the modern tourist is more environmentally conscious and discerning on the type of tourism packages they purchase. There is also heightened awareness about carbon footprint from aviation, with tourism being the main reason for travelling. It is therefore envisaged that growth will come from source countries within a four-hour flight radius. South Africa is a long-haul destination and most international tourists who visit the country come from outside the four-hour flight radius.
It is therefore incumbent upon the National Department of Tourism and South African Tourism to attract more visitors from the African continent as most of these are within the four-hour radius and we are happy to say there are already doing exactly that Chair person..
The growth trajectory in international tourism has compelled the National Department of Tourism to establish a branch that deals specifically with International Tourism Management. This was done to provide international tourism market analysis to inform strategic interventions that will ensure South Africa harnesses maximum benefits from this growing trend. To perfectly do this, this branch has been divided into four, namely, Americas and Caribbean; Europe; Africa and Middle East; Asia and Australia. In the current financial year the Department will develop 16 briefing reports from the 221 country profiles developed in 2012. This will be done to ensure that the countries are analysed properly to then structure appropriate intervention packages.
There will also be126 missions supported. This will include business planning model for institutionalizing tourism. It is reported that the Department will also be looking at developing some policy positions to enhance tourism competitiveness. Consultation with other Sector Departments such as Department of Home Affairs will more important to explore possibilities of e-visas and other strategic destination competitiveness measures. A concern has however been raised about the number and coordination of missions that different sectors have to foreign countries. It is therefore imperative for the National Department of Tourism to work closely with other sector departments such as the Department of International Relations to coordinate these missions.
In strengthening Regional Africa and international collaboration and partnership, there will be a number of bilateral and multilateral engagements with targeted countries. These bilateral and multilateral engagements will be conducted to negotiate and facilitate implementation of international agreements related to tourism and facilitate participation in multilateral flora. These will include amongst others, participation in the World Tourism Organization structures and the World Travel and Tourism Council. Caution must also be exercised with bilateral and multilateral agreements and ensure proper follow-up on the implementation of the signed agreements.
Honournarable Chair person it will be wrong for us not to acknowledge and say in this house that Local Government is one of the beneficiaries of tourism through regional and international conferences/ events, thus it will be in order to encourage municipalities to include tourism in their IDPs, Spatial Planning and Budgets.
As may witness at Tourism Indaba opening of Mama Lolo`s BB in Soweto which largely attract international visitors which bearers as testimony that township hospitality industry does have a room in changing the tourism landscape of our country . Then the next question Honourable Chair is how we focus our energies towards Rural Urban Tourism nodes, Small African food outlets, EPWP, South Africa as a preferred honeymoon and the likes place and International preferred production sites for filliping industry.
Some of the Metros have twinned with International Cities which also seeks to boost international tourism in general in our country. In line with Rural Development, traditional leaders, African churches need to be encouraged to preserve their areas and buildings as one of their tourist attractions, ie. Bloemfontein Catholic Church where people`s organization ANC was founded.
Manje ke Mgcini situlo omunye umbuzo okumele sizibuze wona ukuthi yini le ehlukile okumele siyenze ze kuqikeleleke ukuthi izindawo ezingamagugu esizwe sonkane zihlala ziseqopheleni eliphezulu, zikwazi ukuheha izivakashi kuleli lasemzansi. Yilapho ke singuKhongolose sithi Sisonkana Singenza Kangcono ekuthuthukiseni izwe nabahlala kukulo.
It is reported that in the current financial year 2013/ 2014, the National Department of Tourism will be transferring an amount of R829 973 million to South African Tourism to market South Africa Internationally. The international marketing campaign for South African Tourism has been divided into four categories. These are Core markets targeting attractive and easier markets; tactical markets targeting less attractive but easier markets; watch-list markets targeting less attractive and difficult markets; and lastly Investment markets for attractive but difficult markets. This was a result of a carefully crafted Portfolio Review Process for international markets.
The growth of international tourism is positive and all of us in the country need to show a united front when we try to attract new international markets. Our media must also tell positive stories about South Africa and not only bombard the world with negative information which portrays a violent South Africa. Positive reporting will assist in growing and protecting South Africa as a brand and a preferred international tourist destination.
Honourable Chairperson, over time an ever increasing number of destinations globally have opened up and invested in tourism development, turning modern tourism into a key driver of socio-economic progress and the creation of employment. The United Nations World Tourism Organisation estimates that 6 to 7 per cent of the global workforce earns a living either directly or indirectly through tourism. In 2010, 940 million people traversed the globe as tourists, generating some 919 billion US dollars in export earnings.
Over the past six decades, tourism has experienced continued expansion and diversification, becoming one of the largest and fastest-growing economic sectors in the world. Globally, as an export category, tourism ranks fourth after fuels, chemicals and food. For many countries it is one of the main sources of foreign exchange income.
According to the WTO`s recently updated, long-term outlook and assessment of future tourism trends, the number of international tourist arrivals worldwide is expected to increase by 3.3 per cent a year on average from 2010 to 2030. This represents some 43 million more international tourist arrivals every year, reaching a total of 1.8 billion arrivals by 2030, of which Southern Africa is projected to receive 37 million.
The WTO`s figures, furthermore, indicate that South Africa welcomed 8.3 million international tourists in 2011, or 25.2 per cent of that year`s tourist arrivals in Africa, which earned our country a 29.3 per cent share of Africa`s tourism earnings. Foreign tourists spent a total of R76.4 billion in South Africa last year, which is 7.6 per cent more than the total foreign direct spend in the country in 2011.
Honourable Chairperson, it is absolutely essential that South African tourism should capture even a bigger slice of the projected tourist arrivals in Africa over the coming years. This is by no means a pipe dream. The figures for 2012 already indicate that 9.2 million tourists have arrived at our shores. At the recent occasion of the Annual Tourism Statistics Launch in Cape Town, President Zuma mentioned that our National Tourism Sector Strategy envisions South Africa as among the top 20 world tourist destinations by 2020 and that our objective is to grow our share of more than one billion annual tourist arrivals from the global tourism market, contributing about half a trillion rand to the country`s GDP by 2020.
An amount of R 1.5 billion is being appropriated in this fiscal year to promote South Africa as a major tourist destination with unique features, in order to boost tourist numbers and enable tourism to contribute to sustainable economic growth and poverty reduction. Of this amount barely R49.6 or 3.3 per cent of the tourism budget is earmarked for the International Tourism programme that must develop and support South Africa`s tourism potential throughout the various regions of the world. In view of the stated goal I have alluded to of increasing South Africa`s share of the international tourism market, it is doubtful if this amount, or the reduced 3.1 per cent of the budget in 2014/15, or the even further reduced 2.8 per cent in 2015/16, will be sufficient to realise the target.
South Africa has the resources, the offerings and the potential to exceed the already mentioned African market share of 25.2 per cent in 2011. The evidence is there that we are already successfully setting ourselves apart in a competitive marketplace and that South Africa`s reputation as a friendly, welcoming, inspiring and unique tourism destination continues to grow. The2012 tourist growth figures confirm that our tourism marketing efforts are on track, backed by a strong, professional tourism industry that offers a wide variety of tourist offerings to suit every experience and every budget.
South Africa`s comparative advantages, including natural beauty, well-managed national parks, the domestic aviation sector, hotel capacity and the personal-services industry, position it as an area of global niche tourism. South Africa should and can do more to develop the region as an international tourist destination by emphasising, and making it easier for tourists to travel to this tourist haven at the foot of Africa.
Can positive tourism growth and positive projections in our tourism figures be attributed only to this broader biodiversity, cultural diversity, scenic beauty and range of tourism products and the contributions and efforts of the industry and those of the various role players?
The answer is a resounding no. The magnificent growth in tourism figures is a positive outcome of the ANC-led transition to a democratic dispensation. The results clearly also demonstrate the effectiveness of South Africa`s economic diplomacy, underpinned by a sound foreign policy. The positive trend is continuing due to the ANC government`s systematic investment in policy and strategy development as well as effective implementation.
Chairperson, at the ANC`s Mangaung National Conference we became aware that South Africa is on the right track as far as tourism is concerned when President Zuma informed the delegates that some of the instruments the government is using within the National Development Plan framework, is the New Growth Path which identifies tourism amongst others as a driver of job creation. Also, when the ANC`s 2010 National General Council recognised that profound shifts in the global economy bring not only risks, but also opportunities with the concomitant emergence of new "tourist pools". These developments open new tourism opportunities.
The ANC supports budget vote 35.
I thank you.
Speech by Hon Johanna Mule Maluleke during the National Assembly Budget Vote Debate on Tourism
14 May 2013
Honourable Chairperson
Minister of Tourism, Hon Marthinus Van Schalkwyk
Deputy Minister Tourism, Hon Thokozile Xasa
Chairperson of the Portfolio Committee on Tourism, Hon Donald Gumede
Stakeholders of the Department of Tourism
Ladies and Gentlemen
All protocol observed
Honourable Chairperson, these are exciting moments in the country, indeed the light at the end of the tunnel is getting closer and closer. Tourism is finally receiving the attention it longed for years, as one of the fastest growing sectors in the country, tourism promises more for the people of this country.
Honourable Members, Domestic travellers account for more than 70 percent of South Africa`s tourism volume, injecting R20 billion into the economy and this country and in turn results in creation of jobs and goes a long way in cushioning the country in times of global economic downturns. This is why it is important that we strengthen domestic tourism.
Honourable Chairperson, In line with this vision, the Department developed a domestic tourism strategy that will work not alone but with the National Tourism Sector Strategy and leverage even more from the domestic market.
Honourable members, Trends in the sector reveal that there is more to be leveraged out of a business traveller as compared to a leisure traveller, this is what the National Conventions Bureau, and the Department intend their focus. And will forge forth to and try to achieve the set target of increasing the number of domestic business and leisure travellers to 18 million by 2020. This honourable members, says that we are more aggressive in stressing the need to grow domestic tourism in addition to attracting more visitors from other countries.
Honourable Members, the development of domestic tourism in the country, with an emphasis on rural development will go a long way in reviving some infrastructural investments that have not been successful; reinvestments into Resorts such as Zithabiseni have proven successful as demand grew.
Furthermore Honourable Members, these initiatives cannot happen overnight yet require extensive research in order to develop and update provincial and regional tourism profiles; and these profiles will provide insight on products, travellers and inform packaging.
Honourable chairperson, South Africa is home to a vast range of tourist attractions that draw millions of people every year to the country. However there are still many areas that remain undiscovered by tourists and these areas range from the cultural villages in deep rural areas to the heritage places that define the new democracy and the wilderness which is the heart of Africa`s attractions. It is important to note that South Africa is home to eight world heritage sites and one recently named one of the seven wonders in the world and all these places are of outstanding value to humanity.
Honourable Chairperson, It would be an unfortunate occasion when we as members of Parliament do not give credit where is due, in many occasions we have expressed our discontent with the work done to improve domestic tourism numbers in the country and indeed the Department has heed our call.
Honourable members, the department with the entity have taken stock of the challenges; analysed them and subsequently came up with solutions. I will give an example to this, in years past a campaign called Shot` left was launched. however it didn`t do that well cause it was not inclusive of all South African travelers, yet mostly the young South African. In realizing this, a new route was taken and a new initiative called Vaya Mzansi will be lauched fully during the tourism month.
Honourable Chairperson in this campaign they showcase products for families, young people, the old, the adventurous and South Africans from most walks of life and reaffirms that indeed all our travel needs are here, through a slogan that says "it is here".
Honorable Chaiperson through discussions with parliament the department revamped their programs during the 2011/12 financial year to come up with an even aggressive portfolio with, a programme called Domestic tourism.
This programme honourable members intends to develop and nature the potential of South Africans in the domestic market. be it travellers looking for a destination to suite their needs, be it enthusiastic South Africans with great plans to expand the offering we have in the country, be it patriotic businesses in the country looking towards joining in the struggle for the fight against the rate of unemployment. This programme is envisaged to do such and in the course of its success bring back our national pride through a culture of knowing your country through travel.
Honourable Chairperson, ndzi tsundzuka nkari lowu nga hundza loko ihari xwihlangi, loko hari namayendzo yofana nakuya Gold Reef city, Pretoria Zoo, Table mountain, Botanical gardens, i xwi nyanyula, andzi kombela kuva na pfuxelelo ya xwilo yi ndlela yo vulavulisana navakorokeri vahina hile xwale mandleni.
Honourable Chairperson, I remember the times when we were still kids and it was exciting to take trips to places like Cape Town; Gold Reef City and the list is endless. It is time to revive that culture through the offering of competitive pricing from our service providers,
At the same time this challenge honourable members is an issue of a chicken and an egg, demand commands supply. However, we should be aware that without demand competitive pricing will remain a dream and without competitive pricing demand will remain dream, this is why this agenda should be a collective effort, where industry and clients meet halfway.
Honourable members, it is along those lines that i challenge all present here to join me on this new journey of knowing my country. As I create a trail of a true South African who enjoys the biltong and admires the diamonds in the Northern Cape. As I remember the struggle icons in Soweto and confer with human existence in Maropeng. As I cherish the soil of Mvezo for bestowing a true selfless leader upon us. As I marvel at the flora and fauna of UKhahlamba. I would not have done justice if i don`t touch base with the big five and indulge on some Mopani worms, the list honourable members is endless so let us explore cause it is all here.
And with those words i move for the adoption of the Budget.
Thank You.
Speech by Hon Vatiswa Bam-Mugwanya during the National Assembly Budget Vote Debate on Tourism
14 May 2013
Topic: Enterprise development and transformation in tourism
Honourable Chairperson
Honourable Minister Van Schalkwyk
Honourable Deputy Minister Xasa
Honourable Members
The New Growth Path has prioritised tourism as one of the six economic sectors with the potential to create new jobs. The National Tourism blueprint sets bold targets for tourism growth with the target of 225 000 new jobs to be created and a contribution of R499 billion to the Gross Domestic Product by 2020. These targets have since been aligned with the National Development Plan.
Though a fairly new department, the NDT has made phenomal developmental strides:
Tourism drove a double digit growth in international arrivals
Made tourism tangible to South Africans
It championed new products
Has real authentic success stories
Has demonstrated that tourism is every bodies business
It creates jobs, develop skills and offer other opportunities
Tourism is positioned as mainstream business
How?
As one of the key economic drivers to help reduce unemployment and poverty, the tourism sector provides opportunities for investment in infrastructure, skills development, jobs and ownership. Being instrumental in creating much-needed jobs and developing skills for young South Africans, the tourism sector contributed 8,7 per cent to South Africa`s GDP in the year 2009.
It has been recognised that there is a shortage of small and micro enterprises in the industry to boost the process of job creation. The industry is, however, challenged by a lack of funding for emerging tourism by the development finance Institutions and the commercial banks, with reasons varying between the seasonality of the industry the inability of SMMEs to provide collateral. The enterprises in rural areas are mostly affected with most of them struggling to even manage to be graded as they do not meet the grading criteria.
Other challenges for enterprise development relate to emerging entrepreneurs themselves who cannot package bankable business plans that can attract investment. In other instances, there is lack of information at a local level about where aspiring entrepreneurs can access information about funding and other support packages for emerging tourism enterprises. This is a cause of frustration amongst aspirant tourism entrepreneurs who find it extremely difficult to enter the market.
Despite these challenges, there are a number of successful emerging tourism enterprises that are doing well from the interventions received from government and through own funding. These include, amongst others, Kulengxaki yokunga.....................
Tour guiding has become a lucrative tourism business. In line with the Tourism Bill that has been tabled, the NDT will continue to make improvements to the regulatory environment for tourist guiding that will greatly assist in professionalizing this important link in the tourism value chain. Renewed emphasise was place on the efforts to professionalise the tour guiding industry.
In making tourism tangible, the NDT helped to strengthened the intergovernmental relations, the IGR which responded to provincial and local needs using the NTSS as well as the new growth path. Among other support systems, this strategy affords the provinces the niche tourism market development, service excellence, awareness and training.
Through the Tourism Enterprise Partnership programme, the NDT continues to support the emerging SMMEs tourism businesses to ensure SMME support takes place to improve the performance and increase profitability by focusing on skills and product development, quality assurance and access to finance.
By so doing, thus actively supporting the creation of jobs and the maintenance of existing jobs.
Emerging tourism enterprises indicate a great appreciation for the support given by the TEP, including facilitating their attendance to the prestigious African Tourism Trade Show.
It further increases participation of black tourism enterprises in the economy by focusing on enterprise development and market access by predominantly black owned business.
It should, however, be our objective to ensure that the benefits of tourism are equitably shared amongst the people of South Africa with initiatives planned for empowerment of youth, women and people with disabilities through enterprise, entrepreneurship and people development.
Also, South Africans of low income levels, can travel their own country like those who can afford by introducing a pilot project of a holiday budget resort. This is to be done in partnership with the IDC. As the Minister said in the 2013 Indaba in Durban, I quote "The time has come to remove the final barriers to fully unlock our country`s tourism treasures and the intrinsic value of travel for all South Africans, thereby bolstering our contribution to job creation and poverty alleviation".
Chairperson, the challenges of unemployment, poverty and inequality require that accelerated growth takes place in the context of an effective strategy of economic redistribution that builds a new and more equitable growth path. Over the last 19 years significant progress has been made in meeting the basic needs of our people, including through the growth of the social wage and the provision of social infrastructure. However, the redistribution of economic assets and ownership, the democratisation of economic power, the empowerment of black people, women and workers, and the growth of job creating industries have not met the expectations we had 19 years ago.
In the immediate and long term, there is a need to deal with the reality that the sector remains largely untransformed in respect of a range of broad-based black economic empowerment factors, including ownership and management.
Sector transformation remains key on the agenda of an inclusive economic participation. In contributing to this goal, the National Development Plan calls for the focus to be on increasing compliance with the gazetted tourism charter through the promotion and implementation of the charter; alignment of the Preferential Procurement Policy Framework Ac; Broad-based Black Economic Empowerment and verification of compliance by tourism accredited agencies.
The pathway of economic transformation necessitates an energised, coherent and effective approach by all South Africans, working together in partnership in order to free our people of poverty and unemployment.
We will therefore need a major up-scaling of our efforts towards economic emancipation, consistent with our vision of a better life for all. Of importance is that economic emancipation should be placed at the centre of development.
In this regard President Jacob Zuma, in his 2009 address to the Tourism Business Council, said that ANC government policies such as black economic empowerment and affirmative action have contributed to the growth of South Africa`s black middle class by 2.6 million in 2007. He indicated that the ANC government will vigorously implement broad-based economic empowerment and affirmative action policies and adjust them to ensure that they benefit more broad sections of our people, especially the workers, youth, women and people with disabilities. Policies will, in addition, actively promote skills development and equity at the workplace. Opportunities for the effective transformation of the tourism industry are available and small business support must be streamlined and expanded.
Within the tourism sector, the TBCSA has an obligation to ensure that the Tourism Black Economic Empowerment Charter successfully transforms the industry. Working together with the Tourism Empowerment Council, it will be able to ensure significant progress in realising the objectives of the charter.
Honourable Chairperson, we have an obligation to review the entire education and training sector to ensure that it is responsive to service delivery and transformation needs of a growing South African tourism industry.
Most importantly, to transform this industry in a meaningful way, we need to invest in equipping our people with skills and knowledge to manage tourism business enterprises. We must train and develop more black managers and owners of tourism establishments, to make the industry more representative of the population. South Africa`s success and that of the tourism sector will be determined by how the industry will respond to the need for transformation in the sector.
The ANC supports budget vote 35.
I thank you.
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