Question NW4103 to the Minister of Tourism

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21 December 2023 - NW4103

Profile picture: Matumba, Mr A

Matumba, Mr A to ask the Minister of Tourism

What is the implementation interface between the Tourism Sector Masterplan and the National Tourism Sector Strategy 2016-2026 with regard to the SA Tourism plans; (2) Whether SA Tourism has developed audit action plans to deal with financial management and the cash flow challenges; if not, what is the position in this regard; if so, what are the relevant details; (3) Whether SA Tourism has started to develop a business optimisation strategy; if not, why not; if so, what are the relevant details; (4) What measures has SA Tourism put in place to achieve its employment equity targets with the current moratorium in place?

Reply:

  1. What is the implementation interface between the Tourism Sector Masterplan and the National Tourism Sector Strategy 2016-2026 with regard to the SA Tourism plans?

The Tourism Sector Masterplan (TSMP) was approved by Cabinet in October 2023.

It was derived from, among others, the three-year Tourism Sector Recovery Plan (TSRP), which comprises interventions that extend beyond its immediate implementation time period of 2023–2024 and was approved by the Cabinet in April 2021.

The plan primarily aims to galvanise government, industry and labour to collectively share a common vision that will position the tourism industry on an inclusive and sustainable competitive path for the benefit of all South Africans.

The Masterplan is anchored on three interlinked pillars or strategic themes:

  • Protect and Rejuvenating Supply;
  • Re-ignite Demand;
  • Strengthen Enabling Capability for long-term sustainability.

Within these pillars, there are seven Strategic Interventions that address key areas of focus. These interventions include enhancing education and skills development, promoting entrepreneurship and economic growth, improving infrastructure and connectivity, fostering social cohesion and well-being, preserving the environment and natural resources, strengthening governance and institutions, and promoting regional cooperation.

Additionally, there are three Enablers that support the implementation of the plan, namely, to form targeted, strategic partnerships between government and industry; partnering with relevant departments to ensure improved travel facilitation through the implementation of e-visas, tourist safety, airlift capacity and quicker turnaround times in the processing of tour operator licences; and stimulate domestic demand through Government Consumption expenditure.

The plan indicates that South African Tourism is the lead partner in destination marketing of South Africa as a key destination and the entity will continue leading in the stimulation of demand in collaboration with the industry and provinces through the following programmes:

  • Targeted domestic initiatives and campaigns through domestic tourism seasonal campaigns.
  • Domestic business events and B2B campaigns.
  • Regional tourism campaigns to increase the number of tourists from the continent/region.
  • A global marketing campaign targeted at high-value source markets.
  • A global business events campaign to drive an increase in the number of events and business events hosted in SA.
  • Drive the number of international bid submissions.
  • Facilitation through the National Association Project to host Business events in VTSDs.
  • Drive the growth in the number of quality-assured establishments.  
  • Confirming and implementing the brand management protocol.

SA Tourism is the lead on the Effective Marketing Pillar of the NTSS, which is aligned to the strategic interventions of the Tourism Master Plan. The effective marketing is done through engagement with tourism bodies and provinces through a coordinated approach.

(2) Whether SA Tourism has developed audit action plans to deal with financial management and cash flow challenges; if not, what is the position in this regard; if so, what are the relevant details?

With regard to audit action plans; for the current financial year South African Tourism has compiled an audit action plan resulting from findings by the Auditor General and Internal Audit services. The plan is monitored on a monthly basis by internal audit to ensure implementation by management. Moreover, SAT has set up an “operation clean audit committee” comprising various business unit managers to ensure that compliance and financial management is achieved throughout the organisation.

Stringent cashflow management is in place given the current cashflow challenges. Controls are to monitor cash flow daily and report more frequently. Measures also include deferring non-urgent payment and transfer of funds to the international office been rationed to transfer only what is required on a monthly basis.

3. Whether SA Tourism has started to develop a business optimisation strategy; if not, why not; if so, what are the relevant details?

The budget optimisation strategy which was identified as a deliverable in the approved Annual Performance Plan, is at an advanced stage of development. A change in the approach to strategy development in the beginning of the financial year, and extensive work required in research and benchmarking has resulted in delays in the targeted dates. However, management will ensure that sufficient progress is achieved at the end of quarter 3.

4) What measures has SA Tourism put in place to achieve its employment equity targets with the current moratorium in place?

Two targets have not been met during the period, namely Women in Senior management positions and employment of person with disabilities.

1. Ordinarily the action would be to identify roles for purposes of meeting the Employment Equity targets as part of recruitment planning.

2. Persons with disabilities were prioritised through the recruitment of interns with disabilities,  as well as awareness sessions and management training on reasonable accommodation.

 

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