Tourism Summit: Integrated approach: tourism development, growth & transformation: Day 2


28 February 2011
Chairperson: Mr D Gumede (ANC)
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Meeting Summary

The Chairperson summarised the proceedings and conclusions reached on the first day of the Summit, and read out the minutes. Members and delegates queried the emphasis on some points and were asked to raise issues around disaster management, disabilities, and HIV/AIDS during discussions on transformation, as well as further concerns around greening previously disadvantaged areas, and global warming, in the breakaway commissions. The Department of Tourism said that issues of ethnicity had also been raised in discussion with the Department of Arts and Culture but this might have created some misperceptions and the latter department confirmed that it was currently working on social cohesion, as ethnicity perceptions were of concern. 

The meeting then broke into three commissions. The first dealt with inclusive tourism development, and included presentations by the Airports Company South Africa, South African Airways, Professor Kamilla Swart (“Developing and Implementing the 2010 FIFA World Cup”), discussion of the Research Agenda, and a presentation by Brendon Knott (“The Nation-branding legacy of the 2010 FIFA World Cup and implications for future sport tourism events”). The second Commission considered presentations from Mr Brett Dungan of FEDHUSA, Mr Phillip Hobbs (“The environmental effects of mining”), Professor Sabine Marschall (“Sustainable Heritage Tourism: The Inanda Heritage Route in the wake of the 2010 FIFA World Cup”) and Professor Rogerson (“Not working together – Tourism and Agriculture in rural South Africa”)

The third Commission considered presentations from Grand Tourism Enterprise, which defined what transformation meant in the tourism sector, and urged development of new ideas and policy and involvement of youth. Government was urged to work closely with the private sector and create growth opportunities. Tourism was closely interlinked with many other sectors. The trends in tourism predicted that South Africa would become the first choice for long-haul destination by 2020. Domestic markets, however, were also vital for tourism growth, although tolls had a negative effect, and development of high-speed inter-city trains would be a great incentive. Transformation of tourism must take account of the new types of tourism, which were explained. HIV and AIDS also needed to be proactively addressed. Other delegates elaborated on their experiences, raising concerns about monopolies, the fact that township tours were being actively discouraged by many tourism players, governance concerns and lack of upkeep by government of tourism attractions. Questions were also asked on how the Department of Tourism could benefit from the new funding announced in the recent budget, and what the Department was doing to address the lack of transformation. 

The Tourism and Hospitality Sector Education and Training Authority (THETA) noted the proposed amalgamation of various SETAs and set out the composition, the setting up of six chambers, with three committees, and outlined the development of development strategies, skills plans, a strategic and performance plan and chamber strategies for the years 2011 to 2016. The goals, outcomes and outputs were described. There would be an emphasis on research, partnerships, Further Education and Training (FET) Colleges and transformation, and funding would be offered through bursaries and learnerships. These programmes would be rolled out in all nine provinces, and in district and local municipalities. Questions were asked on how the THETA worked with communities, and its criterion.

Ms Nellie Swart gave a very brief oral submission outlining her ongoing research project on the development of scorecards for the tourism industry. 

Meeting report

Tourism Summit: Integrated approach: tourism development, growth & transformation: Day 2
Chairperson’s opening remarks and preliminary discussion
The Chairperson opened the meeting and welcomed members. He outlined the proceedings for the day, noting that after the plenary, there would be a break away into three commissions.

The Chairperson noted that the Speaker of the National Assembly was meant to address the gathering but had not been able to honour his commitment. 

The Chairperson read the minutes from the previous day of the summit, and called for input.

A delegate from South African National Civic Organisation (SANCO) said that the issue of disaster management and disabilities were not provided for in the minutes. He further said that the issue of HIV/AIDS had not been fully addressed.

The Chairperson said that the issue of disability would fall under the discussion on transformation by one of the commissions. He asked the delegate to raise this point to the commission.

Ms C Kotsi (COPE) appreciated the input by SANCO and noted that the issue of disability had been discussed, and provisions had been made for it by the summit yesterday.

Ms Noncedo Pulana, a delegate from Khayelitsha, was pleased to be present at the summit, but was saddened by the fact that she was the only representative from the previously disadvantaged areas. She asked how the summit planned to address the issue of greening previously disadvantaged areas, and to address the issue of global warming.

The Chairperson asked Ms Pulana to raise her concern in one of the commissions.

Mr B Kompela (ANC) clarified the positions taken by the summit the day before. He answered the question on disability and said that hotels in the industry had to comply with disability requirements. He urged all delegates to give in-depth discussion to the issue of HIV/AIDS in the commissions.

Mr Kingsley Makhubela, Director-General, Department of Tourism, spoke to the issue of ethnicity in the tourism industry, which was discussed on the previous day of the summit. He gave an example of an individual who spoke of people coming from other provinces to take jobs in the Cape. He said he believed that it was a dangerous illusion. He had not been happy with the answer to the issue raised by the Department of Arts and Culture in the summit on ethnicity.

Dr Mbulelo Jokweni, Acting Director-General, Department of Arts and Culture, said that this Department was currently undertaking measures of social cohesion as a means of addressing the issue of ethnicity. He said that he shared the same sentiments as Mr Makhubela.

The Chairperson gave some directions on how the commissions would deliberate. He raised key points around youth development and employment and urged delegates to focus on these issues. 

Commission 3 – Tourism Transformation
Chairperson: Mr B Kompela (ANC)

Documents handed out:
Transformation in Tourism: Grand Tourism Enterprise

The Chairperson of Commission 3 highlighted the importance of the commission on transformation. He said that he wanted to engage on the burning issues of transformation, HIV/AIDS and disability. He invited delegates to actively engage on those issues. 

Grand Tourism Enterprise submission
Ms Loshni Naidoo, Independent Consultant, Grand Tourism Enterprise, outlined what she would cover in her presentation. She defined the word “transformation” in relation to tourism. She said that part of transformation was reinvention, and new ideas and policies which embrace change. She commented that youth had a major role to play in the development in the tourism industry. She urged government to work closely with private sector and create growth opportunities. She questioned whether the current infrastructure was sufficient to cater to the need of visitors.

Ms Naidoo then gave her own definition of transformation and tourism. She noted that tourism comprised an important relationship between many interrelated sectors, industries and resources and their end users. She further noted that tourism was determined by many factors like hospitality, service and friendliness

Trends in tourism, as noted by the United Nations World Tourism Organisation (UNWTO) predicted that Europe would lose its dominance as a preferred holiday destination. By 2020 Europe would see a drop in its share, which had been 60% in 1995, to 46% in 2020. South Africa would gain significantly as a long-haul holiday destination. It was predicted that by 2020 South Africa would be the first choice for long-haul destination.

Ms Naidoo suggested that the international arrivals by tourists should increase to 1 million rather than the current 400 000. Domestic markets were noted as vital for tourism growth. She said that domestic tourism needed to be made more attractive as means of promoting the industry. The issue of tolling tariffs had a negative effect on domestic tourism. She also encouraged the development of high-speed bullet trains in between cities and provinces.

Ms Naidoo said that in order to transform tourism in South Africa there would have to be some changes to the existing methods. She noted the new buzz-words in tourism, such as Medical Tourism, Sport Tourism, Educational Tourism, E-Tourism, Leisure Tourism, Business Tourism and Sustainable Tourism/Eco and Green Tourism.

Ms Naidoo discussed in depth the various tourism types, by given definitions, and how these could be transformed to suit the South African tourism industry. She confirmed that the issue of HIV/AIDS formed part of tourism transformation and needed to be further encouraged by the hospitality industry. She suggested a possible welcome note in hotel rooms, attaching a complementary pamphlet on HIV/AIDS education, and a condom. She concluded that a growing and successful tourism industry required all relevant role players to create an environment and experience that left tourists wanting to come back for more.

The Chairperson encouraged delegates to talk more on how to address the shortcomings of government as noted in the presentation. 

Mr Jonathan Muller, Tour Guide, and leader of Tour Guide Union, elaborated on the nature of the tourism business and how tour guides worked. He raised his concerns that the open top bus business was monopolising the industry in the city and most of the tourist attraction routes. He said that kind of monopoly took away jobs from smaller operators. He noted that the company running these buses was on a mission to outplay smaller operators by taking over their routes. He also noted the negative marketing that predominately white South Africans were giving to prospective tourists. He encouraged the development of local and township tours. He further noted how hotels and guest houses were discouraging their tourists from visiting the townships.

The Chairperson strongly agreed with the views expressed by Mr Muller, and asked that he should discuss these issues with the Director-General of Department of Tourism, to give further insight on grassroots level of the industry

A delegate from SANCO raised concerns on how the industry was governed. He also noted the lack of upkeep of tourist attractions by government institutions.

Ms M Njobe (ANC) agreed with the point that government institutions were not maintaining tourist attractions, and blamed local and provincial governments for the lack of upkeep of the historical monuments. She asked how the Department of Tourism (DOT or the Department) planned to benefit from the Job Fund of R9 billion, announced by the Minister of Finance. She encouraged the Department to take its share of the fund and use it to create jobs for youth. She further raised the complete lack of transformation of the industry, noting that it was still predominately owned by white males, and there was no inclusion of black woman in the industry apart from those who owned small Bed and Breakfast (B&B) facilities in the townships.

Mr Faruk Robertson, Black Management Forum, said that the industry did not embrace young graduates and educated persons. Graduates and black professionals tended to be relegated to the back rooms of the industries. He said that local government should do more to encourage and promote tourism growth. 

Ms Naidoo said she would try to respond to questions, although she stressed that she was an independent consultant and could only comment on a few issues. She said that she agreed with the need for more township tours as a means of transformation. She further suggested that government needed to support people in the tourism industry, and educate them on how to operate and start businesses located in the industry. 

The Chairperson asked the Director General of the Department to address the commission.

Mr Makhubela said that transformation in the industry translated to the changes in the consumption patterns. He added that transformation also needed to be addressed by policy changes. He noted that even now, after 17 years of democracy, most hotel managers were expatriates and that local talent was not being tapped. He said that the Department had undertaken an initiative to train local managers abroad, then bring them back to take up managerial positions at home. However, he advised that the Department itself was not a training institution, and that there were some stumbling blocks in terms of its organisational capacity. The Department was working closely with universities and higher education institutions to address the issue of training. 

Tourism and Hospitality Sector Education and Training Authority (THETA) submission 
Mr Muzi Mwandla, Executive Manager: Skills Development, THETA, noted at the outset the proposed amalgamation between the Culture, Arts, Tourism, Hospitality and Sports SETA functions, to create a CATHSSETA. This would comprise three members from organised business, three members representing organised labour, the five respective National government departments, the Bargaining Council, three ministerial appointees and an independent Chairperson.

The new SETA would have six chambers with three committees instead of the current five. Mr Mwandla noted these chambers as Tourism and Travel services, Hospitality, Gambling and Lotteries, Conservation and Cultural Heritage. Mr Mwandla said that the SETA had developed the National Skills Development Strategy 2011/16 (NSDS III), Sector Skills plan 2011/16 (SSP), 5-Year Strategic Plan, 5-Year Performance Plan, and 5-Year Chamber Strategies. There would be an annual Service Legal Agreement with the Department of Higher Education and Training. An Annual Performance Plan with quarterly targets, and quarterly monitoring reports, would be provided.

Mr Mwandla said that the National Skills Development Strategy III had eight goals, sixteen Outcomes, 38 Outputs, five key players, and outlined key developmental and transformational imperatives. There would be an emphasis on research, partnerships, Further Education and Training (FET) Colleges and transformation. 

Mr Mwandla named all the goals of the NSDS III, together with the strategic objectives. He said that the strategic objectives collectively would be taken further by fifteen programmes. He said that over the next five years the programmes would be worth over R2 billion. He further said that the SETA planned to target mainly institutions of higher learning as part of its strategic plans. He added that there were learners who went abroad to gain valuable expertise. Mr Mwandla said that the SETA planned to fund learners with bursaries and learnerships, which had never been done before.

Mwandla said that the SETA planned catalyst grants of R1.63 billion over the period of five years, in order to fund its fifteen programmes. He said that these programmes were going to be rolled out in all nine provinces, and in district and local municipalities.

Ms Nellie Swart oral submission
Ms Nellie Swart gave an oral submission on the development of scorecards for the tourism industry. She said, however, that she could not make her presentation available in writing, as it was still part of an ongoing research project. She outlined the key points of developing scorecards for the industry. She furthermore said that service excellence was pivotal in developing the industry. Due to time constraints she could not expand on this much further, but asked anyone who was interested in getting further details to contact her.

The Chairperson noted that there was very little time for questions, and only permitted two to be asked.

The SANCO Delegate asked for clarity on how the THETA conceptualized the term “community”.

Mr Mwandla said that the THETA did not work with individuals, but rather with organisations within a community, and these would be made up of members of the community.

Mr Muller asked what criterion was used by the THETA to award learning programmes for those employed in the large firms

Mr Mwandla said that any company that employed more than 150 people could be considered.

The Chairperson thanked everyone for participating in discussions.

The meeting was adjourned.



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