Minister of Tourism Budget Speech & responses by ANC and DA

Minister of Human Settlements, Mr Derek Hanekom gave his Budget Vote Speech on the 03 May 2016.

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Chairperson, Honourable Members

More than ever before, governments around the world are looking to tourism for economic growth. South Africa is no different, and that is why our National Development Plan features this sector as an important economic driver.

However, despite two decades of consistent and impressive growth, 2015 was not a good year for tourism in our country. Global and local economic pressures took their toll and perceptions of health risks discouraged travel to Africa. Visa and other travel documentation requirements had a further negative impact on tourism. The result was that international tourist arrivals declined by 6.8%, compared to the previous year. 

The good news, Honorable Members, is that our tourism sector proved to be remarkably resilient. Government and industry worked together with real commitment and determination to get ourselves back into positive growth.

And indeed, tourism is recovering rapidly from last year’s decline. 2016 promises to be a year of strong growth for tourism in South Africa. This means more jobs for our people, more business for our operators, and more revenue for our economy. The World Travel and Tourism Council estimates Tourism will earn R120 billion in export earnings, and contribute more than R380 billion to the economy this year.

In January, over one million tourists arrived in South Africa, 15% more than in January last year.  February brought an incredible 18% increase.  This is spectacular recovery. And the growth trend is set to continue. This is very good news for our country and our economy. The Department’s work this year will build on this very positive trend, and we will continue working closely with industry to ensure that this growth is sustained, and that the benefits are shared amongst more people.

The 2016/17 budget of just over R2 billion which we present to you today, Honourable Members, is designed to achieve just that. It will go towards improved marketing, further enhancing our destination through improving the visitor experience, and creating economic opportunities for communities. Transforming the sector at every level will remain a top priority in all our work.

Tourism cuts across a range of sectors. Tourists make their decisions after being influenced by accounts of trips from friends and family, as well as by media and marketing campaigns, and perceptions of value for money.

They then make their bookings and acquire the necessary travel documentation, such as visas, if required.  And finally they travel to the country by air, coach, or car.

Once in South Africa, tourists encounter officials at airports and other ports of entry. They meet and interact with staff at accommodation establishments and tourism attractions. In this way, tourism is all about hundreds of small encounters and impressions that are made by all the people that form part of its complex value chain.

Our task is to persuade more tourists to choose South Africa for leisure and business travel, and to make it as easy as possible for tourists to visit us. A whole of government approach is key to unlocking our full tourism potential. For this reason, the Department of Tourism will continue to work with sister departments such as Home Affairs, Transport, Arts and Culture, Environment, Trade and Industry, Sport and Recreation, and others, as well as with the many provincial and local authorities.

Importantly, progress has been made in implementing Cabinet’s decisions on changes to the immigration regulations.  I recently visited China and India, which are key source markets for South Africa. In China we saw the success of the decision to allow travel agencies to apply for visas on behalf of travellers. The Chinese market is now rebounding very strongly. Tourist arrivals from China in January this year nearly doubled compared to January 2015, and in February it grew by more than half on the same month in 2015. All indications are that this phenomenal growth is set to continue.

In India, where there is much enthusiasm amongst travel companies about our country and our tourism offer, the main challenge continues to be the long delays in obtaining visas. India has a booming outbound travel market and has massive growth potential for South Africa. We will work closely with the Department of Home Affairs to find a solution to this challenge.

In allocating its budget, the Department focuses on key initiatives to increase tourist numbers and to enhance their experience of the destination, and the way that the benefits of tourism are experienced by South Africans.

Marketing

Honourable Members, in a highly competitive global environment, our efforts to improve our destination and visitor experience will not translate into increased visitor numbers unless we market our destination well.  It is for this reason that just over 50% of our budget goes towards SA Tourism for marketing.

Last year a panel of experts reviewed the structure and strategies of SA Tourism.  The panel’s recommendation that SA Tourism develop a collaborative culture of working with stakeholders has led to a more strategic alignment with tourism marketing agencies in cities and provinces, improved engagement with Brand SA, and a closer working relationship with the Department of Tourism. In terms of enhanced engagement with the private sector, a number of collaborative tactical campaigns are in place in our priority markets to communicate the tremendous value for money South Africa offers.

The review also called for a re-alignment of the budget to reduce overheads, increase marketing expenditure and improve research. The SA Tourism budget for 2016/17 has been revised in line with these new priorities.

Honourable Members, the Tourism Indaba takes place in Durban this week.  It remains the central travel and trade show in Africa and attracts exhibitors from the continent and buyers from all over the world. I am told by SA Tourism that they are in the final stages of negotiations with a strategic partner for this premier event.  

Infrastructure and Attractions

We already have excellent infrastructure and offerings for all categories of tourism, ranging from safaris to beaches, shopping, major events and wine tourism. And we offer exciting adventure tourism, like zip lining, hang gliding, shark cage diving and bungee jumping. Increasingly, our offerings are also meeting the global demand for socially responsible tourism products that conserve the environment and benefit surrounding communities. 

To further enhance these offerings, the department is supporting three destination enhancement projects this financial year, on SANParks sites: building the Shangoni Gate as a new access point into the Kruger National Park; a Wild Activity Hub at Phalaborwa, and a visitor centre at the Tsitsikamma Big Tree.

Of course, tourism is not just about nature and scenery. Cultural and heritage tourism is gaining momentum around the world, and we have some truly unique attractions that offer great opportunity to be on the bucket list of millions of global tourists.

• At the Cradle of Humankind in Maropeng, where the discovery of homo Naledi last year sent visitor numbers soaring, the department is funding enhancements to picnic facilities and the experience lab.
• At Robben Island, visitor information services are being enhanced, guides are being trained, and crucial information is being digitised. This means that this precious legacy will be preserved for future generations.
• This year, we will enhance signage and information at iconic national heritage sites that symbolise the life of Nelson Mandela: the Nelson Mandela statues at the Union Buildings and Freedom Park in Gauteng, the Nelson Mandela Capture Site in KwaZulu-Natal, and the Drakenstein Correctional Facility in the Western Cape. 

We will soon launch our ‘Working for Tourism’ programme, aimed at improving tourism destinations through public employment.  The programme kicks off this financial year with the employment of 200 young people who will assist in retaining the blue flag status of our beaches, and keeping them clean and safe.

Recognizing the environmental and cost benefits of moving towards renewable energy, the department is supporting major destinations to install renewable energy sources as part of the Tourism Incentive Program. Contractors have been appointed to install renewable energy at various pilot sites, including Robben Island Museum; the Skukuza and Lower Sabi rest camps in the Kruger National Park; and the Karoo Desert, the Hantam and the Free State National Botanical Gardens.

The retrofitting incentives will be expanded to the private sector in the course of this financial year. An agreement is already in place with the Industrial Development Corporation. Seed funding of R30 million has been provided for the first tranche of grants.

Enterprise Development

Honourable Members, the South African destination experience relies on the breadth and diversity of many enterprises. While large enterprises play an important role in the tourism economy, by far the largest number of businesses that operate in tourism are small and medium sized.

Our incentives to improve access to international markets for small businesses are starting to pay off. Last year, 80 South African product owners were taken to 10 international trade platforms.

One of them is Mnqobi Mahlangu, owner of Ubuhle Be Narha Tours, a small shuttle company operating in Tshwane. He also conducts bicycle tours through Mamelodi.  After exhibiting his products in Spain and in the Netherlands, he has already hosted two tour groups from Spain and four from Holland. This market access program is expected to yield strong returns in the long term, and more small businesses will be supported in the future.

Skills and service excellence

Tourism is about the whole experience, every part of it. One bad experience can negate all the good.  The experience we offer visitors through our warmth, hospitality, great service, specialist and general skills is critically important. Our Service Excellence training program helps equip our hotels, restaurants and attractions with staff who are skilled at providing the high level of service will go a long way towards making us the preferred destination we strive to be.  Deputy Minister Xasa will tell you more about our skills development programs.

Transformation

Honourable Members, we have just commemorated Freedom Day. In these past 22 years of democracy our country has blossomed in many ways. But more needs to be done to translate this freedom and democracy into real economic opportunity.

Transforming the tourism sector is central to our aspiration for inclusive growth and addressing our inherited inequalities. We are proud that our tourism department was the first to have its amended sector code gazetted last year. The Amended Tourism Sector Code will assist in creating inclusive economic growth by increasing the number of historically disadvantaged individuals who manage, own and control tourism enterprises.

Given the particular characteristics and dynamics of the tourism sector, I am pleased to announce that the role of the incoming Tourism Charter Council will be expanded to include guiding the sector on transformation matters, compiling reports on the status of transformation, and sharing information with the public. We believe this increased role will assist us in a positive way to change the inherited legacy of racially skewed ownership patterns in our industry.

The SRI programme was intended to couple job creation embedded in the EPWP methodology with building tourism infrastructure and empowering local communities.  We will continue this year to finalise and launch some of the projects under our EPWP funded tourism programme. Since 2014/15, 19 projects have been successfully completed, including information centres, cultural villages, lodges and caravan parks. Given the lessons emerging from implementation, we are now reviewing the programme. 

The coordinated set of activities I have outlined – creative and effective marketing, destination improvement and enhancing the visitor experience through skills and service excellence, as well as transforming the sector through supporting small businesses and creating jobs, will undoubtedly translate into South Africa getting a greater share of the rapidly growing global tourism market.

Domestic tourism

One extremely important component of growth in tourism lies in domestic tourism. All South Africans deserve to experience the wonderful country we live in and have access to important sites that commemorate and celebrate our heritage and diverse cultures.

The growth of domestic tourism depends on our ability to make our tourist attractions and facilities accessible and affordable for more of our people, and to improve our communication of the joy and value that travel brings. SA Tourism has been allocated R110 million to promote domestic tourism this year.  Amongst several other initiatives a series of television commercials have been produced telling the stories of South Africans travelling for the first time and how much it means to them. This will inspire others to do the same.

• The Association of Southern African Travel Agencies and SA Tourism are partnering to extend corporate travel into leisure.
• A project has been initiated to take children on visits to our World heritage Sites and attractions operated by SANParks and SANBI.

This will help ignite their curiosity about their country and the many special places to visit. It will also establish as well as their desire to become tourists in their own country.

This is really just the beginning – the promotion of domestic tourism, and the creation of opportunities for lower income South Africans to share in the wonders of our country is so important to us, that there is much, much more to come. 

NTSS

All of the work we undertake is guided by a coherent strategy.

The ten-year National Tourism Sector Strategy was published in 2011. It has recently been reviewed against the current domestic and international environment. The revised NTSS will be gazetted for public comment shortly. One particular recommendation that I am acting upon immediately is the setting up of a Statistics Advisory Panel to address the need for regular, reliable, and consistent information to guide the sector’s activities. The panel will advise on improvements required to current research and information systems, and recommend interventions.

Honourable Members, our continued status as a sought-after tourism destination depends on the protection of our precious tourism assets. Our tourism industry has a good record when it comes to sustainability. Our establishments have won many global awards over the years. These awards shows that our efforts to make tourism environmentally, economically and socially sustainable have made us world leaders in this field.

The potential for this sector is endless. We must tourism creates income and jobs. Indeed, it accounts for about 700 000 direct jobs

I acknowledge and applaud all the people who have played a role in advancing tourism in the past year. You are the people behind our success. You have brought awards like these to our country and it is you who will make us a winning tourism nation.

I thank the Director-General, everyone in the Department of Tourism for their efforts over the past year, and our partners in industry for their dedicated work in support of tourism.  We also appreciate the positive role that the Portfolio Committee, ably chaired by the Honourable Beatrice Ngcobo, has played in ensuring that we fulfil our mandate. Last, but not least, I thank Deputy Minister Tokozile Xasa for her diligence and support.

The future of tourism in South Africa is extremely bright.

Turning our country into a successful tourism nation is surely one of the best ways to unite all of us in the joy of discovering our country, discovering each other, and in the dignity of having a job to put food on the table for the family.

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BUDGET VOTE SPEECH BY THE DEPUTY MINISTER OF TOURISM, HONOURABLE TOKOZILE XASA, IN THE NATIONAL ASSEMBLY - 3 MAY 2016

Transformation through Tourism – a catalyst for change

As we celebrate 22 years of our democracy, we celebrate the escalating growth that tourism has contributed to our country. This recognition resulted in the subsequent establishment of tourism being made into a stand-alone department in 2009. Tourism had come into its own!

The growth in this sector has been so steady, yet silently churning in the background while the rest of the economy has been volatile. Subsequently, it has been identified as one of the six key growth sectors in the New Growth Path. This is evidenced by its contribution to the GDP which measures 3.9% - more than most labour-intensive sectors, Indeed, the crowning achievement was the successful hosting of the FIFA World Cup in 2010! What more validation could we ask for?

To reflect, in 1993, the country received just over 3.4 million international arrivals. Last year we welcomed 8.9 million visitors to our shores. While this reflects a good growth curve, the performance of the last two years was below the global average – as the Minister mentioned. Following high level intervention into the visa regulations, we have demonstrated that our democracy is healthy in that we are circumspect enough to carefully balance and not all let our economics overshadow our state security.

Tourism has become so much more than revenue. Apart from being hailed our economic gold, tourism is a great social unifier of what was also once a very elitist activity in this country. The very thing that set us apart from each other is the same thing that is now the catalyst for social cohesion. Since the dawn of democracy and the enactment of the Constitution 20 years ago this month, the way was paved for change in this landscape. Because as this is a people-driven sector, it stands to reason that we should put people first. And this meant advancing the transformation agenda.

To give expression to the National Development Plan, our focus is on inclusive economic growth and job creation. As mentioned in the President’s State of the Nation Address, tourism has been identified as a vehicle for accelerated and sustained economic growth. The National Department of Tourism, together with its sector partners has made transformation an imperative. Through its robust programmes, it is committed to redressing past inequalities.

What does this translate to? Economic development is not possible without people development. By empowering our people, we give them the tools with which to participate in the economy in a meaningful way and take advantage of what South Africa has to offer.

I am proud to say that we were the first sector to establish BBBEE codes for the industry. This has therefore set the tone for redress. Let us take a look at how we have fared. As a social unifier, this sector birthed many niche markets which is indicative of social inclusion and cohesion. These markets include township tourism, culture and heritage tourism, sports tourism and social tourism. All these attractions contribute significantly to domestic tourism – which is the backbone of this industry. This serves to enhance South Africa and to position it as a destination of choice.

Domestic Tourism spurred by these niche markets is an area of high potential for growth from which tourism can benefit. More collaboration with these sectors is necessary to realise the socio-economic impacts with regards to job creation, improved revenue for small business and community beneficiation.

In terms of gender parity, studies show that majority of workers in the tourism sector are women. Yet many of these women are still relegated to menial or junior roles within our tourism establishments. The establishment of the Women in Tourism Forum in 2014 is aimed at addressing the economic inequalities and challenges faced by women within the sector.

To address these disparities, we have, in partnership with the University of South Africa (UNISA) Graduate School of Business Leadership launched the Executive Development Programme (EDP) for Black women tourism managers. The programme is aimed at building strong business skills and leadership capabilities amongst black women in the tourism sector to lead key parts of tourism businesses and form a pool of future top leadership, entrepreneurs and industrialists in the sector. The pilot for the programme will run for a period of 12 months starting with an intake of 20 Black women in July 2016. The response to this has been overwhelming and I appeal to industry to partner with us to increase the subsequent intakes. I also want to further implore industry to absorb graduates of this programme and to enable them to flourish in your organisations.

Our department has been significantly instrumental in building capacity. We started by instilling a love for this industry at secondary school level. This gave birth to the National Tourism Careers Expo (NTCE) which serves as an intrinsic platform for introducing learners who are interested in pursuing a career in tourism. This newfound upsurge in tourism as a career has also resulted in more tourism graduates. To recalibrate the supply and demand ratio, we appeal to our partners to assist to absorb these graduates and enjoy a mutually beneficial relationship.

At this stage, not everyone has the opportunity to be introduced to the tourism sector via the school curriculum. To target the youth, we have developed a series of learnership programmes to bridge the skills gap in this sector as well as address the scourge of unemployment among the youth. And we have done so with much success. Allow to share a few with you.

The National Youth Chefs Training Programme qualification is recognized internationally. It ensures world-class service standards and promotes South African indigenous cuisine. In the 2015/16 financial year, the department has enrolled 577 learners. The programme will continue in 2016/17 and the budget for the programme over the two financial years is R63 million. Since its inception in 2011, this programme produced over 1400 graduates. 712 have been absorbed.

The Tourism Buddies programme is an experiential hospitality training programme targeting the unemployed youth to enable them to acquire skills and gain work experience to enhance employability in the hospitality and tourism sector. There are 2214 learners that have graduated. The budget for the programme is R140 million. Since its inception, this programme has produced 2654 graduates. 688 has been absorbed for 14/15 cycle.

The Sommeliers (Wine Servicing) programme specializes in all aspects of wine service as well as wine and food pairing. The role is much more specialized and informed than that of a wine waiter in fine dining today. There were 245 learners that graduated and the budget for the programme was R15 million. 121 are formally employed.

Food Safety is a scientific discipline aimed at handling, preparing, and storing food in ways that prevent food borne illnesses. This includes a number of routines that should be followed to avoid potentially severe health hazards. As a pilot project, 100 FET hospitality and tourism unemployed graduates were trained and have completed the programme with a 55% absorption rate. In the 2016/17 financial year, the department plans to recruit and place 500 learners in this programme.

A vital aspect of hospitality is service excellence as this has a huge effect on the visitor return rate. Our programme on Service Excellence is increasingly becoming popular among the provinces and institutions because it equips attractions with skilled staff to render high quality services to tourists.

Transformation is not just about community beneficiation but also creating an enabling environment to redress social inequality in the multi-layered geopolitical landscapes. It means taking ownership of what we are custodians of – our beautiful country. The department realises the importance that entrepreneurship plays in job creation and transformation and is establishing a dedicated programme within the department to drive enterprise development. We are proud to announce that we will be showcasing this as part of our Tourism Incentive Programme at the annual Tourism Indaba in Durban next week.

The Tourism B-BBEE Portal was also developed for black owned enterprises to accelerate SMMEs empowerment in the tourism sector, to facilitate matchmaking and monitor compliance to the Amended Tourism B-BBEE Sector Code. All of these initiatives will be further advanced in this financial year.

Transformation is also about inclusivity and removing access to barriers. Prior to the birth of our democracy, tourist activities have not been enjoyed by all South Africans. Our department, in collaboration with the other spheres of government and related government agencies, plans to develop an inventory of all government owned parks and resorts and discounted rates will be offered to designated groups. This Social Tourism initiative not only aims to boost domestic traveller numbers but more importantly to inculcate a culture of love for travel.

South Africa is renowned not only as a sought after leisure destination because of our vast array of products but also as a business and events destination. This robust industry includes meetings, incentives, conferences and exhibitions. Business tourism has a higher economic impact as travellers usually spend time on leisure activities pre or post their business event. Hosting these events not only generates revenue but also contributes to our knowledge economy. The National Conventions Bureau is expertly helmed by Amanda Kotze-Nhlapo, who recently was awarded the IMEX academy award for outstanding service to the meetings industry – for the Africa Middle East region. I wish to heartily acknowledge and congratulate Amanda! She and her team have already secured 66 international conferences between 2017 and 2022 as well as 45 bids pending outcomes.

Most importantly, transformation is about willingness to embrace change and I would like to sincerely thank all our partners – in trade, government and civil society – for their invaluable contribution in transforming this industry and subsequently making it the vibrant, dynamic sector that it is. I especially want to thank Team Tourism led by the Honourable Minister Hanekom for his visionary leadership. I look forward to continue our collaboration as we plot the way forward for the next twenty years.

 

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Responses

Hon LS Makhubela (ANC) Tourism Budget Debate - International Tourism


Prospects for growing and consolidating international tourism
Leveraging business tourism for destination competitiveness
House Chair

Let me before submitting my input to this Budget vote debate, say The ANC supports Budget Vote 33.

House chair, allow me to borrow words from the Vision Statement of the National Development Plan- vision 2030.

"We, the people of South Africa, have journeyed far since the long lines of our first democratic election in 1994, when we elected a government for us all.
We began to tell a new story then. We have lived and renewed that story along the way."

Even today as we debate the budget of the Department of Tourism we continue to renew our

South African story highlighting the importance of Tourism.

Travel and Tourism has become an important economic driver for many governments around the world. Its contribution to GDP growth has become a catalyst that induces economic growth.

The tourism sector has encountered sustained growth and widespread diversification and has developed into one of the most rapid economic growth sectors worldwide. Current contemporary tourism is intimately connected to development and embraces an increasing expansion of different and new tourist destinations.

These structural characteristics have turned tourism into an important and significant strategic determinant of social and economic development.

World Tourism Organization in their Second Global Report (2011).

However:

The performance of South Africa with regard to international tourist arrivals has been of concern in the last two years as the country slipped from performing above international average to a downward spiral.

In 2015, there was a positive growth but contrary to the positive global performance, South Africa performed badly. The number of international tourists to South Africa declined by 6.8 percent or 645 463 in 2015 with a total visitor figure of 8.9 million.

The recommendations of the Inter-ministerial Committee on immigrations are most welcome, as they have contributed to the recovery of the tourism industry.

If the 15 percent increase in tourist arrivals experienced in January of this year is anything to go by, there is hope of a tremendous increase in tourist arrivals in 2016.

This policy certainty has assisted tour operators to include South Africa in their Africa packages again.

Developments such, as that Brazil does not need visas and that the Russian citizens who want to travel to South Africa for leisure reasons would be exempted from Visa requirements will boosts numbers to South Africa.

This new dispensation will address the difficulty of travelling from Russia, which has been a large visa requiring geographical area.

Furthermore, the accreditation of tour operators, is no longer a requirement from visa exempt countries for leisure tourists.

The two outstanding matters are the capacity of Home Affairs to process Visa applications in India, and changes in the requirements for the unabridged certificates. The Minister is urged to continue working with his counterparts to ensure that all barriers to international tourism and international business tourists are removed.

The work of the South African National Conventions Bureau is highly applauded as it has ensured that South Africa is ranked number one in the African continent and the Middle East with regards to business tourism.

This is an important ranking by the International Congress and Convention Association (ICCA) and it reinforces the position of South Africa a preferred business tourism destination.

It is however of concern that the Conventions Bureau channels most of the events to the three major cities, namely, Johannesburg, Durban and Cape Town. It is acknowledged that the average size of business events in South Africa is 700 to 800 delegates and that not all cities in the country have the capacity to host such huge events.

The Conventions Bureau is therefore urged to channel smaller events to other provinces to ensure
geographic spread and mitigate seasonality in smaller cities and towns.

South African Tourism has incurred foreign currency losses to a tune of R350 million in the past five years. The proposed new model of using the hub strategy and virtual offices is welcome. This is a cost-effective model that will assist South African Tourism to curb costs on operating brick and mortar offices and redirect budget to marketing activities.

The work done by the International Tourism management Branch of the Department in the current financial year must include, amongst other things, recruitment of tourist guides and frontline staff for foreign language training in Russian and Mandarin.

Other countries, such as Mozambique, have tourism attaches stationed at their embassies. The Department and South African Tourism are urged to explore the possibility of using South African Tourism attaches to maximize on a partnership already established with DIRCO. This may minimize costs of marketing the country abroad.

The work of the Department on regional integration and international cooperation on tourism is also recognised.

The work done with the Regional Tourism Organisation of Southern Africa (RETOSA), Organisation for Economic Cooperation and Development (OECD), the United Nations World Tourism Organisation (UNWTO), and the World Trade Organisation
(WTO) is important to create linkages with the international community.

Foreign governments and international organizations will account for 11.5 per cent of the budget for Programme 3.

Hon Members

It is of importance that all South Africans become ambassadors of their own country.

Have we ever given it thought on how should we market our own country when we are abroad or when we meet foreign visitors, at the airports, mall or streets of Mzansi.

Have we seen how South Africa is packaged when marketed?

I encourage us all to view the #MeetSouthAfrica Momments. And I promise you after viewing #MeetSouthAfrica,

You will #LoveSouth Africa.

Every South African should fall in love with our countries beauty and diversity. This will encourage you to discover more about Our Country, you are guaranteed to feel a sense of pride and belonging, thus giving effect to the
statement,

'South Africa Belongs to all its people.'

We, the people, belong to one another.

Lastly

The World is a book and those who do not travel read only one page.

Hon ST Xego (ANC) Tourism Budget Debate - SMMEs and Rural Tourism

Honourable House Chair.
Ministers and Deputy Ministers present here.
Honourable members of the house.
Members of the Board present here/ members of advisory council
The Management of the Dept and South African Tourism
Our guests
South Africans.

I greet you this afternoon.

Honourable house chair allow me to remind all South African about what was agreed upon in 1955 in Klip Town, that the National wealth of our Country the Heritage of South Africans shall be restored to the People. The NDP which is the country's 2030 vision as adopted by the 4th Parliament recognises tourism as one of the main drives of employment and economic growth.

It has been proven beyond doubt that our common challenge as South Africa is poverty, inequality and unemployment and tourism is strategically placed to address such challenges as it is a pillar of economic growth.

The ANC welcomes the declaration by His Excellency the PRESIDENT of the Republic that 2016 is a year to promote domestic tourism not just by word of mouth but with an injection of one hundred forty nine million(R149mil) as stated in the SONA.

Domestic Tourism acts as a vehicle for tackling unemployment creating sustainable livelihoods and substantially reducing inequality by ensuring meaningful black participation in the ownership, control and management of the economy.

We also welcome the commitment by the President to establish a functioning inter Ministerial committee as led by the Head of Government Business to look into any un-intended consequence including amongst others immigration regulations.

The ANC is in full support of Budget vote number 33 of the Department of Tourism having looked at the strategic objectives and annual performance plans of both the Department and its entity SAT with their targets that are smarter than ever before.

The allocation to Domestic Tourism of 22.1% out of the Total Budget is appreciated. In ensuring value for money the committee on Tourism observed the following achievements in the previous Budget of 2015/16.

The History of clean audit in both the Department and the Entity.
The transformation Program of the Department- the reviewal of Policies with regard to appointment of Board Members to SAT and the establishment of an advisory council to the Minister.
The commitment to address Gender balance issues and having exceeded set targets with regard to less abled individuals .
Having considered recommendations by Auditor General and addressed such issues.
The special focus to coastal and marine tourism.
The close monitoring of its entity SAT which is mandated mainly with Marketing the country abroad.
The funding of 100 rural enterprises.
The ability to bring to country business events to be hosted with up to 800 delegates, INDABA AND MEETINGS AFRIKA.
The focus on graded establishments and benefits provided to maintain the numbers.
The commitment to look across 9 Provinces and direct other business events to smaller cities.
Siyazifuna ezo ntlanganiso zoshishino phaya koma-Monti in the Easter Cape nako-Bloemfontein in the Free State nakwezinye idolophana ezincinci zalo Mzantsi Afrika zingasoloko zilapha eKapa naseRhawuteni. Ukwenzela ukuba uqoqosho nokhenketho lunyuke nakwe zixekwana zincinci.

Honourable House Chair it cannot be correct not to mention the contribution of the Tourism Department to Youth Employment through the following Programmes :

The Chefs Training programme targeting 577 trainees
300 youth enrolled in the Sommelier training course
2000 learners trained in hospital service training programme
500 learners recruited and placed in food safety assurers programme
The 3488 full time equivalent jobs through EPWP.
This confirms South Africa as a developmental state which plays a strategic role in influencing and guiding the economy and decisively intervening in the interest of the people particularly the works and the poor.
SASITSHILO sathi sakudala amathoba emisebenzi silwe nendlala

Honourable Chair in welcoming this Budget we pride ourselves as ANC with the above achievements made so far. (Yinto Yethu Le) In this 2016/17 Budget allocation, we appreciate the 149 Million allocation to Domestic Tourism which will assist South Africans to discover and experience their own country, Interacting with different People of different cultures, different languages in different Provinces in a way that can also address any difference including racist elements and statements.

South Africans let us not underestimate the potential in tourism that we have as a country, our natural resources, our landmarks, wildlife, heritage sites, national parks, establishments, municipal parks, attractions to mention a few places us as the best tourism destination of choice.

Departmental Programmes such as Study Tours involving community members to go and draw lessons from countries like Malaysia on how to implement homes stays. A program that is already practised in Muruleng community in the North West Province and in Provinces of Kwa Zulu Natal where the Program was launched by Deputy Minister.

The continued enterprise development and support program funding 100 rural enterprises and the continued incubation and business support services.

The continued implementation of a local government tourism induction program through which the Department of Tourism pays particular focus and resource 8 District Municipalities with high tourism potential as municipalities are strategic partners in Tourism development. This investment to Municipalities have direct spin offs to other support services such Tour operators, Tour Guides, Cultural Groups, Story Tellers, Owners of establishments and many more.

Honourable Chair as the Minister and Deputy Minister of Tourism continue to walk the talk, they continue to forge relation with Tourism Businesses and Tourism stake holders advising, assisting, taking concerns and building working relations that takes our country forward. We are a people's government and a government at work.

I invite all the People of South Africa to take opportunity of this budget allocation to increase the numbers of domestic trips taking a short left to various attractions experiencing the beauty of our fore fathers land.

The ANC supports this budget as tabled by the Minister of Tourism.

This Budget talks to the challenges faced by the country and is in line with all guiding policies and the ANC LOCAL GOVERNMENT MANIFESTO which has been launched in Nelson Mandela Bay in the Eastern Cape on the 16th of April 2016 to those ANC volunteers who lost their lives on their way to and from the Manifesto launch; 2 from eNgcobo in the Chris Hani region Eastern Cape late NOSAYINILE MDE and NOKHUSELO NTABEKO and 10 from Gauteng Province. We are with those families and we assure the ANC community out there that the fallen heroes and heroines died serving an organisation that will never die. There was ANC before, there is ANC today and there will be ANC moving forward. MAY ALL THEIR SOULS REST IN PEACE.

To my colleagues in the Tourism committee, parliamentary staff and my caucus staff, it is worth noting the working relations with the Department and co-operation amongst ourselves and for being equal to the task. I acknowledge the relations built with other strategic Departments.

Honourable House Chair it is evident that the ANC's objectives has been and will ever be to change people's lives for the better through this Tourism as we grow the Economy we are also building a Nation with responsible and caring citizens, Citizens that welcomes and protects Tourists, Citizens that leave up to the principles of Ubuntu. Together with our communities we build better communities, better South Africa, Better Continent and a better World.

On that note Honourable Chair, we must all buckle up our seatbelts as the car will be moving at high speed; the 3rd of August 2016 for Local Government Elections is around the corner.

The ANC lives the ANC leads.

The ANC supports this budget

I thank you.

Debate - Tourism Budget Vote 33 by Comrade PE Adams (ANC)

Focus Area: SMMEs and Transformation in the Tourism Sector

Tourism is one of the key economic pillars and contributes significantly to the Gross Domestic Product (GDP) and is also highlighted in the New Growth Path and National Development Plan (NDP) as a catalyst to create jobs, alleviate poverty and eliminate inequality.

Die toerisme sektor ondersteun 679 000 direkte werksgeleenthede en 'n totaal van 1.5 miljoen toerisme-verwante dienste. Die totale toerisme beleggings in 2015 was nagenoeg R60.5 biljoen. Hierdie bedrae en getalle is bewyse van die sosio-ekonomiese belangrikheid van die toerisme sektor in Suid-Afrika, en meer spesifiek hoedat hierdie sektor kan bydra en help om werkloosheid te beveg.

Maar, Agbare Voorsitter, die voordele wat hierdie sektor inhou, moet nog deursyfer na die voorheen benadeelde gemeenskappe, want dit sluit nog die meerderheid van die inwoners van die land uit, veral met betrekking tot eienaarskap van toerisme besighede en ondernemings.

The ANC believes that this sector holds great potential for job creation, especially in rural areas, and is committed to continue to removing barriers of entry into the value-chains of the sector that are faced by SMME's, Black-owned enterprises, particularly the youth and co-operatives.

Advancing transformation across the value chain of the tourism sector is paramount, given its exceptionally strong linkages with critical areas, such as food and beverage production, financial services, printing and publishing, security services and others.

Through the National Department of Tourism, the ANCis committed to further leverage the sector's Broad-Based Black Economic Empowerment (BBBEE) codes of good practice.The seven elements of BBBEE are: ownership, management control, employment equity, skills development, enterprise development, preferential procurement and socio-economic development.

It was against this background that on 20 November 2015, the Amended Tourism B-BBEE Sector Code in terms of Section 9 (1) of the Broad-Based Black Economic Empowerment Amendment Act No. 46 of 2013 was gazette, and this made tourism the first sector in the economy of South Africa to develop and align a B-BBEE Sector Code.

In essence, the amended Code is meant to tackle among others, the two main challenges in the tourism sector - the need to become more globally competitive and the need to include Black people in the tourism sector.

The B-BBBEE Charter Council established by the Minister is also important and its work is eagerly anticipated to change the face of tourism in South Africa. If the codes are implemented effectively and efficiently, they may lead to the creation of employment opportunities in the sector that will contribute towards transforming the lives of our people and communities.

Agbare Voorsitter, die tasbare transformasie in die toerisme sektor sal alleen merkwaardig word indien daar nuwe en suksesvolle toetreders inkom, en dit kan bereik word deur samewerking tussen die Regering en al die ander rolspelers in die sektor om te verseker dat geleenthede en die voordele van die toerisme sektor ook Swart Suid-Afrikaners bereik. Transformasie in hierdie sektor behoort meer te fokus op entrepreneurskap en nie net op die skepping van werksgeleenthede nie. In 'n poging om transformasie in hierdie sektor verder aan te help, het die ANC Regering in Februarie 2016 die Universiteit van Suid-Afrika (UNISA) se Skool vir Besigheidsleierskap (SBL) aangestel om 'n kursus vir Executive Development (EDP) te ontwikkel en aan te bied vir swart vroulike bestuurders in die toerisme sektor.

The tourism SMMEs are facing numerous challenges and these include amongst others:

lack of marketing skills and tools;
competition from dominant large enterprises;
inconsistent cash flow;
lack of resources to upgrade or purchase new equipment;
high cost of inputs;
limited market and customer base in rural areas;
lack of market-related information and industry data;and
difficulties in meeting tourism grading and accreditation standards,
and seasonality.
Ten einde die uitdagings in hierdie sektor aan te spreek, het die ANC-geleide Regering begin met die implementering van 'n aantal programme deur die Tourism Incentive Programme in die 2016/17 boekjaar. Hierdie program is daarop gemik om toerisme aantreklikhede en gegradeerde akkommodasie aan te spoor tot die gebruik en aanwending van skoon en hernubare energiebronne. Hierdie program is verder daarop gemik om toegang tot markte, toerisme-graderings en energie-effektiwiteit te verseker.

In the 2016/17 financial year, the ANC Government will also support 100 enterprises through the Enterprise Development Programme that promote entrepreneurship and sustainability of small tourism businesses, through mentorship, coaching, developing a business plan and access to the market. This should include rural communitiesas well.

The Enterprise Development Programme will also include incubation and business support services.Cooperatives and small business support are an important means to draw more South Africans into economic activities and ensure more equitable development. Small businesses are a further instrument to promote entrepreneurship and combat economic exclusion.

Die ANC glo dat ondersteuning aan klein besighede en ko-operatiewe verenigings verhoog moet word om te verseker dat hul impakregoor die totale toerisme sektor gevoel kan word.

It is encouraging to see the continuation of capacity building programmes that include Chefs training which is targeting 557 chefs. 2000 learners that will be trained in hospitality service programmes; and 500 learners will be recruited as food assurers.

Other capacity building programmes will include placing tourist guides at the Cradle of Human Kind and Isimangaliso Wetland Park, which are two of our World Heritage Sites.

In pursuing transformation, the ANC Government has on February 2016, appointed the University of South Africa (UNISA) Graduate School of Business Leadership (SBL) to develop and run a course on the Executive Development Programme (EDP) for black women managers in the tourism sector.

The pilot programme will run for a period of 12 months starting with an intake of 20 black women in July 2016. Close to 100 black women managers will be trained over a five year period. Tuition fee and other study materials for the EDP will be fully covered by the Department of Tourism.

This programme is targeted at black female employees who are at junior or middle management levels. Upon successful completion of this programme, graduates will be conferred with a National Qualification Framework (NQF) level 8 qualification. This is in line with the ANC's 2012 Mangaung Conference resolution calling for Government to absorb or secure black graduates without work experience into the tourism industry.

The budget vote for the Department is therefore aligned to the priorities of the ANC Manifesto, Medium Term Strategic Framework (MTSF) and the National Development Plan (NDP).
 

SA Tourism has the potential to create jobs, economic freedom: James Vos (DA) Shadow Minister of Tourism

Good afternoon, Madam Chair, Honourable Members and guests.

I am delighted to welcome and congratulate all of the winners of the Cape Town Tourism Development Fund.

The winners are Maboneng Township Arts Experience in Langa (Siphiwe & Ngwenya), Turning Point B & B (Doris & Isaac Manini) and Lungi’s B & B  (Lungi Sotyingwa-Pango).

They are all seated in the gallery.

The aim of the program is to assist emerging SMME’s to develop their businesses and by doing so placing tourism development at the heart of their businesses.

Madam Chair, today’s budget debate is an important opportunity to take stock of trends and developments in our tourism industry, as we look ahead to new opportunities.

Our submission is that government support for tourism should focus on three areas:

 

1)    Product development to ensure that South Africa remains a destination-of-choice for visitors and investors;

2)    Technology adoption and innovation to improve productivity; and

3)    Enhancing workforce capabilities to ensure that our people have the right skills to benefit from industry growth.

 

First, we must invest in products and infrastructure that will ensure our country’s tourism landscape remains attractive. Some of these investments must be directed to niche sectors with high growth potential, like the cruise industry, which also generates significant spillover economic benefits for ground handling services, bunkering, and ship repair.

 

Given the fact that the cruise ship industry has been the fastest growing segment in the travel industry globally, the DA has made several proposals for this to be included in the National Development Plan.

 

I am pleased that an amount of R7 billion is earmarked for new port facilities throughout the country, which will also include the construction of cruise terminal facilities at the V&A Waterfront.

 

Secondly, the use of technology in tourism is well established. For example, where Electronic-Visas have been implemented, they have proven to be extremely effective, so it makes perfect sense to implement it here, given the recent visa debacle in South Africa. Without fail, our government must now consider this method to streamline tourist facilitation to our country.

 

Speaking about visa regulations, I’m delighted that some of our submissions are included in the latest concessions – although in some instances perhaps a case of too little too late. The key now is for the regulations to be amended to reflect the changes.

 

Turning now to the role of municipalities in Tourism.

The truth is that we are faced with a situation where many municipalities have allowed for the decay of tourism sites and related infrastructure.

This is deplorable because if these attractions were properly managed, they could draw more visitors to the towns, leading to the prosperity of small businesses and increased employment opportunities.

The fundamental concept of establishing tourism routes is to link all stakeholders together to promote the local economy and supporting a greater geographic spread of tourism offerings.

Madam Chair, addressing the issue of affordability, the NDT should specifically tackle the growing reality for so many South Africans that tourism is just too expensive.

 

I have previously pointed out that more should be done to make government-owned resorts, parks, nature reserves and the like affordable to our citizens. Our proposal would allow for all South Africans to gain free or discounted entry to such facilities on non-religious public holidays.

 

There are already some great examples of this model, such as the free entry onto the Table Mountain Cable Car on the day of your birthday. We need to expand this further if we are to get South Africans to experience their country.

 

I am pleased that the proposals I put to committee in terms of discounted access to government owned parks is currently being investigated by SANPARKS. We will closely monitor the rollout of this scheme.

 

Subsequent, government must look into the numerous poorly developed and maintained government-funded tourist sites.

 

Replies to Parliamentary questions I submitted, point to an audit, which has identified about 700 resorts that are not being optimally utilized.

My oversight visits have demonstrated that many resorts in small towns have become dysfunctional. This is reprehensible. These resorts, built with taxpayers’ money, are a huge liability for these municipalities.

Madam Chair, this brings me to an important question. Why did government not implement the budget resort concept, despite commissioning a study into this model, which resulted in the government announcing in May 2013 that it would in partnership with the Industrial Development Corporation and private sector, convert underused state properties into tourist facilities? The plan was to initially run between three to five resorts as a pilot project.

Clearly there is a lackluster approach by government to implement this plan. Just imagine if this plan gets implemented, it could go a long way in terms of managing these resorts more effectively, boosting domestic tourism and growing small town economies.

 

Moving on, 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 Home Affairs issues visa regulations without considering the tourism impact, we cannot have tourist facilities closing down because road access is poor and we cannot afford to have bad media because the safety of tourists is threatened. Nor can we have unscrupulous operators and guides doing what they like without following standards.

 

Given the job losses in the mining and manufacturing sectors, we need tourism to keep South Africans working.

 

It is only through job creation and robust economic growth that we will unlock opportunities for all South Africans and give life to the freedoms on which our democracy is based.

Minister Hanekom’s dithering on tourism signage increases poor’s suffering: Greg Krumbock (DA) Shadow Deputy Minister of Tourism

Behind the tourism statistics, the millions of visitors, the billion rand budget, spin and glossy reports, there are individual human faces.

It is a story of triumph against the odds, dashed expectations, undreamed of potential and wasted opportunities because of bureaucratic deadlock.

Today I want to tell you about a South African patriot, Londi Ngcobo, a young mother of a seven year old daughter and a two year old toddler son.  She works at the tourism information kiosk at Howick Falls, a premier tourism spot managed by the Howick and uMsunduzi Community Tourism Organisation (HUCTO).

Both the Howick Falls and the Nelson Mandela Capture Site Exhibition Centre are a handful of kilometres from the Howick N3 North turnoff, where close to 4 million vehicles pass every year.  Yet incredibly there are no road signs informing motorists of the R55 million Capture Site, or Howick Falls.  So in 2012, the “Friends of the Falls”, an NGO which cares marvellously for the Howick Falls site, wrote to uMngeni municipality to gets signs erected on the N3 to boost tourism and create many more jobs.

At the same time, Londi had her second child and became a tour guide at the falls, earning R2, 500 per month. Twenty cents of every rand she earns goes on her taxi transport to work. Often she does not have enough left over to entrust her son to caregivers at the local crèche.

Therefore Minister, I wrote to you on 31 July 2014 urging you to fast track this utterly uncontroversial and worthy initiative, as the bureaucratic foot dragging was smothering opportunity and crushing potential jobs.

You replied to me 13 months later, on 27 August, advising HUCTO to work with the KZN department of Tourism and Economic Affairs and the Municipality.  You also referred to Road Signage Task Team whose job is to “facilitate collaboration with other responsible authorities on matters of tourism signage”.

Almost a year later to the day, on 25 August 2015, your office telephoned the municipality asking them to support the application they had received three years before.  A month later, on 22 September, you got your letter of support.

Your National Tourism Planning and Co-Ordinating Forum committee (emphasizing they were only a consultative body) then advised in November that the matter was receiving attention from the province as well as a project steering committee which was addressing the issue, but also advising that ultimately the department of Transport would have the final say.

Well, what actually happened?   The KZN official listed on your Tourism Road Signage Task Team has in fact not been a member of the committee for some time.  His replacement was invited to meetings, but never attended.  His replacement desperately wants to attend, but is never invited.  And so both the Project Steering Committee meetings in December and March this year were rendered meaningless as no decision could be taken because nobody from the KZN department of Tourism and Economic Affairs attended. So much for “receiving attention”!

While these well-paid officials were dithering, Londi and her team of six had clocked up 962 358 tourists from 158 countries guided at the Howick Falls.  On R2 500 per month!

Then, in March 2016, the N3 Toll Concession cut HUCTO’S funding.

HUCTO is actually expected to pay six employees, clean the resort, repair and maintain gutted toilets and infrastructure on a municipal grant of R10 000 a month.  So by November, 40% of HUCTO’s tour guides may have to be retrenched.

All of this can be prevented.  For a minimal investment in a few road signs, we can increase the tourism traffic to both the Howick Falls and Capture Site by hundreds of thousands every year.  We can create new jobs and secure jobs at risk.  We can open new restaurants and expand opportunities for new vendors in safe public parks sustained by new tourists pouring off the N3.

Cut through this suffocating bureaucracy, Minister.  Restore hope to Londi and unsung patriots like her.  Get the road signs up.  You’ve had nearly five years.

Nelson Mandela Bay needs a revitalised tourism industry that can deliver jobs: Andrew Whitfield DA member of Tourism Portfolio Committee

Nelson Mandela Bay (NMB) is a Metro with massive tourism potential that could create thousands more jobs in a municipality with the highest unemployment rate of all metros in the country.

Tourism in NMB can be an economic game changer that turns the metro into a city of abundant opportunity.

Unfortunately, NMB has become an arrivals and departures lounge rather than a destination. Tourists travelling up and down the garden route by-pass NMB because, and I quote a local tour operator – “there is a perceived lack of value”.

This perception is a direct failure of local destination marketing and the municipality’s failure to maintain its products and promote the visitor experience.

NMB has neglected its tourism products, under capacitated its own tourism entity and sidelined the industry stakeholders – this is not a model for success.

NMB is a classic example of the many local authorities that do not put tourism at the top of their economic growth agendas.

Local government is where the tourism rubber hits the road but unfortunately it has not been fully embraced in NMB where the potential still far exceeds the benefit.

On an oversight visit to NMB last year the portfolio committee was scheduled to meet with part-time Mayor Danny Jordaan but he failed to pitch – clearly tourism is not a priority for this Mayor.

We were taken to a so-called “tourism” project that turned out to be more about environmental affairs than tourism while a few kilometers away tourism products such as the Red Location Museum and Bayworld Oceanarium, among countless others, lay in a state of devastating disrepair.

The national department needs to spend much more time and money on building capacity at the local level to ensure that we are capitalizing on our full potential.

NMB needs a DA government that truly appreciates and understands the benefits of tourism and embraces industry stakeholders and tourism experts to turn tourism potential into tourism capital.

We need less lip service and more service delivery.