ATC200716: Report of the Portfolio Committee on Tourism on Adjusted Budget Vote 38: Tourism, Dated 16 July 2020




The Portfolio Committee on Tourism, having considered the Special Adjustment Appropriation for Vote 38: Tourism, and the implications for the Department of Tourism (Department) and South African Tourism, reports as follows:


  1. Introduction


The tourism sector remains one of the vital economic industries in South Africa. The latest statistics indicate that South Africa received 10.4 million international tourism trips and contributed R273.2 billion into the South African economy. The tourism sector currently supports 740,000 direct jobs and over 1.5 million jobs across the economy value chain. The paramount importance of the tourism industry is that it has less barriersto entry and,therefore, supports a myriad of micro and small enterprises. The nature of the tourism sector is such that it has potential to stimulate economic activity in the Villages, Townships and Small Towns. However, the advent of the novel corona virus has regressed the gains made by South Africa in growing tourism and penetrating international markets. The budget appropriated to tourism has been revised downwards and this has put the sector in a precarious position. The Committee, therefore, conducted hearings for the revised budget with the Department of Tourism on the 9th July 2020 and with South African Tourism on the 14th July 2020 to ascertain the impact to the tourism sector.


  1. The necessity of the Special Adjustment Budget


The Minister of Finance tabled the Adjustments Appropriation Bill to Parliament when he delivered the supplementary budget on the 24th June 2020 in response to the impact of the novel corona virus (COVID-19). This was done to effect adjustments to the appropriation of money from the National Revenue Fund for the requirements of the State in respect of the 2020/21 financial year. In summary, the National Treasury noted that over the past several months, the COVID-19 pandemic and the emergency health response have brought about a severe global recession. The real GDP growth in South Africa is expected to plummet by 7.2 per cent in 2020, primarily due to restrictions on economic activity to contain the spread of the virus. Strengthening South Africa’s competitiveness in a post-pandemic world will, therefore, require a new social compact, decisive action to stabilise debt and narrow the budget deficit, and determined implementation of reforms that improve the structure of the economy. In combination, these measures will enable millions of South Africans to participate in building a more productive and prosperous society.

On 15 March 2020 President Cyril Ramaphosa declared a national state of disaster in terms of the Disaster Management Act, 2002. This was in response to the declaration of the global Covid-19 pandemic by the World Health Organisation. On 21 April 2020, the President announced a R500 billion fiscal support package that includes spending towards Covid-19 priorities. Part of the funding sources for this package is a R130 billion baseline reprioritisation in the 2020/21 financial year. The Special Adjustment Budget provides an outline of the modified 2020/21 budget, where current baseline allocations will be utilised towards fighting the Covid-19 pandemic. Departments were required to identify programmes or activities that can be temporarily suspended without negatively impacting the longevity of such programmes.

The Special Adjustment Budget provides for changes in the main appropriation owing to the categories of expenditure specified in Section 30(2)of the Public Finance Management Act, 1999 (Act No. 1 of 1999), by programme and economic classification. The following technical financial amendments are included in the adjustment budget process:

  • Adjustments due to significant and unforeseeable economic and financial events: when unforeseeable economic and financial events affect the fiscal targets set by the budget, adjustments may need to be made.
  • Section 16 of the PFMA: the Minister of Finance may approve the use of unappropriated funds, if it is for spending of an exceptional nature. This happens if postponing the spending to a future parliamentary appropriation would seriously prejudice the public interest. The Minister of Finance must subsequently provide a report to Parliament and to the Auditor-General.
  • Virements and shifts within the Vote/Department: the use of unspent funds from amounts appropriated under one main division (programme) to defray excess expenditure under another main division (programme) within the same vote/department. The sum of funds vired from a programme may not exceed 8 per cent of the total amount appropriated, in the main appropriation, as well as in any other subsequent adjustment/special appropriations, for a programme for the 2020/21 financial year. Section 43 of the PFMA, read in conjunction with Treasury Regulation 6.3 and Section 5 of the Appropriation Act, 2020, sets out the current parameters within which virements may take place.

The purpose of this report is to provide the analysis and implications of the 2020 Special Adjustment Budget on Vote 38 and the impact on the allocated budget. The Special Adjustment Budget seeks to modify the 2020/21 budget to utilise current baseline allocations to provide for the rapidly changing economic conditions and enable spending on the COVID-19 response. This report, therefore, provides the implications for the Department of Tourism and South African Tourism’ programmes whose allocations were reduced or suspended in the Supplementary Budget. The amendments outlined in the revised budget have significant implications for the Department’s planning and programmes for the 2020/21 financial year.


  1. The implications of the COVID-19 pandemic on the mandate of the Department


Travel and tourism, along with the transport sector, is one of the sectors most affected by the Covid-19 crisis. Decimated is one of the many terms used to describe the impact of the pandemic on the tourism sector. Initial priorities identified by the Department of Tourism in its planning for the 2020/21 financial year included the following:

  • Accelerating Transformation: under Programme 4: Tourism Sector Support Services, the Department planned to incentiviseprogrammes that increase the ownership value, management control and skills, enterprise, supplier and socio-economic development of previously disadvantaged people. In this regard, the Department had set aside R856.4 million over the medium term for the implementation of 31 capacity-building programmes and 15 incentives to transform the sector and provide development support to rural tourism enterprises.
  • Creating Employment: through the Working for Tourism initiative the Department sought to create jobs through the development of tourism infrastructure and skills. The Department was targeting creating 15 946 work opportunities over the medium term. Spending on the initiative, which is funded through the Expanded Public Works Programme, was expected to increase at an average annual rate of 5.4 per cent, from R371.3 million in 2019/20 to R434.7 million in 2022/23. This initiative was to be funded through Programme 3: Destination Development.
  • Tourism Marketing: allocations for marketing South Africa as a destination of choice account for an estimated 56.3 percent (R4.4 billion) of the Department’s total expenditure over the medium term, increasing at an average annual rate of 4.6 percent, from R1.3 billion in 2019/20 to R1.5 billion in 2022/23. Of this amount, 93.8 percent (R4.1 billion) was earmarked for transfers to the Department’s entity, South African Tourism (SAT), under Programme 2: Tourism Research, Policy and International Relations.

However, financial revisions have resulted in both the Department and Entity revising these priorities. Changes to the initial priorities include:

  • The Department’s transformation efforts will be limited during the 2020/21 financial year. The budget allocation for Programme 4, Tourism Sector Support Services, which includes some of these initiatives has been reduced by 37.68 per cent in nominal terms. The allocation for the programme decreases from an initial allocation of R295.1 million to R183.9 million. Performance indicators focusing on transformation through initiatives such as tourism market access, grading support, funding through the Tourism Transformation Fund and energy efficiency projects have been suspended for the financial year.


  • During this period of travel restrictions, the Entity will have a drastic reduction in the ratio of its marketing expenditure, resulting in more focus being directed towards general operating expenditure. The Entity indicates that its annual budget for 2020/21 will be adjusted downwards to R438.96 million. The Entity’s original allocation for the 2020/21 financial year was R1.56 billion. The Entity has advised that it will be returningR866 million to the fiscus, thus implementing a 66 percent cut in its annual budget.





  1. Analysis of the revised budget of each programme


The Supplementary Budget for Vote 38 depicts a downward revision of the budget across all Programmes of the Department and South African Tourism. The Department’s overall budget allocation decreases by 40.3 per cent in nominal terms from R2.48 billion in 2020/21 to a revised allocation of R1.48 billion. This is a decrease of R1 billion from the initial budget.


4.1        Programme 1: Administration

The revised budget for Programme 1: Administration is presented in Table 1. The main allocation for this Programme decreases from R308.6 million to a revised allocation of R307.10 million. In nominal terms, this is a decrease of R1.5 million or 0.49 per cent. The main cost driver for reductions was savings in relation to travel and accommodation. Programme 1has the least budget cuts as the other budget items in the sub-programmes remained unchanged.

Table 1: Revised budget for Programme 1: Administration


ENE Budget

Special Adjustment



Adjusted Appropriation



38 242

-1 487

36 755


3 053


3 053

Corporate management

172 684


172 684

Financial management

51 405


51 405

Office Accommodation

43 209


43 209


308 593

-1 487

307 106

Source: Adapted from the Department of Tourism 2020


4.2        Programme 2: Tourism Research, Policy and International Relations

The allocation to Programme 2: Tourism Research, Policy and International Relations normally consumes more than half of the vote allocation, at approximately 56.1 percent, as a result of the transfer to South African Tourism.

The allocation for the programme decreases from an initial allocation of R1.4 billion to R520.6 million, a reduction of 62.6 per cent. In nominal terms, this is a decrease of R870.8 million or 62.6 per cent. This programme experiences the most significant reduction of the entire Vote. The breakdown of downward appropriation per sub-programme is detailed in Table 2. The major budget cut in Programme 2 is the amount of R866 million, which was meant to be a transfer to South African Tourism.

Table 2: Revised budget for Programme 2: Tourism Research, Policy and International Relations


ENE Budget

Special Adjustment



Adjusted Appropriation


Tourism Research, Policy and International Relations Management

9 142


8 517

Research and Knowledge Management

34 479

-3 250

31 229

Policy Planning and Strategy

14 643


14 193

South African Tourism

1 304 306

-866 000

438 306

International Relations and Cooperation

28 812


28 312


1 391 382

-870 825

520 557

Source: Adapted from the Department of Tourism 2020

The impact to the planned activities for Programme 2 that were removed from the 2020/21 Annual Performance Plan are detailed in Table 3.

Table 3: Budget Reductions Per Activity - Tourism Research, Policy and International Relations




Report on the state of key public-owned tourism attractions


National Tourism Analytics System Framework developed


Development of draft discussion document on the Development and Promotion of Tourism in South Africa


One regional activation facilitated to profile South Africa as a destination of choice implemented


Indaba Ministerial Session 2020 and coordination of Indaba events


Innovation Conference

(1 500)

National Visitor Membership and Information Management System


SA Tourism

(866 000)

Source:  Adapted from the Department of Tourism 2020

The downward revision of allocations to Programme 2 have huge implications for the departmental budget as a whole, and transfers to South African Tourism in particular.


4.3        Programme 3: Destination Development

The main allocation for Programme 3: Destination Development decreases from R485.9 million to a revised allocation of R469.4 million. In nominal terms, this is a decrease of R16.5 million or 3.4 per cent. The details of the budget cuts in Programme 2 are detailed in Table 4.

Table 4: Revised budget for Programme 3: Destination Development


ENE Budget

Special Adjustment



Adjusted Appropriation


Destination Development management

35 611


35 611

Tourism Enhancement

25 171


24 471

Destination Planning and Investment Coordination

31 901

-1 700

30 201

Working for Tourism

393 214

-14 113

379 101


485 897

-16 513

469 384

Source: Adapted from the Department of Tourism 2020

The notable impact of the downward appropriation in Programme 3 is the budget cut on the Working for Tourism Programme, which is an Expanded Public Works implementation programme for the Department of Tourism. As reported, the Department will only be able to pursue the creation of 2500 Working for Tourism work opportunities in the 2020/21 financial year. A comprehensive detail of the projects and activities that will be affected is provided in Table 5.

Table 5: Budget reductions per activity - Destination Development




Tourism Enhancement


Investment Promotion Platforms

(1 700)

EPWP programmes

(14 113)

Source:Adapted from the Department of Tourism 2020


4.4        Programme 4: Tourism Sector Support Services

The downward allocation to Programme 4 signifies thesecond most significant reduction of the departmental budget at 37.7 per cent. The allocation for the programme decreases from an initial allocation of R295.1 million to R183.9 million. Programme 4 focuses on enhancing transformation and increasing skills levels in the sector. The downward budget adjustment for Programme 4 is detailed in Table 6.

Table 6: Revised budget for Programme 4: Tourism Sector Support Services


ENE Budget

Special Adjustment



Adjusted Appropriation


Tourism Sector Support Services Management

11 014


10 288

Tourism Human Resource Development

28 533

-3 917

24 616

Enterprise Development and Transformation

50 563

-3 100

47 463

Tourism Visitor Services

23 642


23 092

Tourism Incentive Programme

181 360

-102 882

78 478


295 112

-111 175

183 937

Source: Adapted from the Department of Tourism 2020

A comprehensive list of activities impacted under Programme 4 is detailed in Table 7.

Table 7: Budget reductions per activity – Tourism Sector Support Services




Tourism Incentive Programme: Green Tourism

(35 000)

Tourism Incentive Programme: Tourism Transformation Fund

(10 000)

Tourism Incentive Programme: Market Access

(7 882)

Tourism Incentive Programme: Tourism Equity Fund

(50 000)

World Tourism Day celebrations

(1 100)

Tour Operator Incubator


WiT Incubator

(1 500)

Feedback to 27 sites on climate change and vulnerability assessments


FEDHASA Educator Seminars


National Tourism Careers Expo

(3 917)

Local Government Peer Learning Network


J2SE for Howick & Mogwase


Tourist Safety Strategy Implementation


Initiatives to increase domestic travel


Source: Adapted from the Department of Tourism 2020

The funding towards Covid-19 under Programme 4 was obtained mainly from transfers and subsidies. In the main, the budget was cut from the line items for various institutions amounting to 3.92 million fromthe National Tourism Careers Expo Operations, which has been cancelled for 2020; an amount of R426 000 for non-profit institutions, which was to pay the Department’s membership fee for the Federated Hospitality Association of South Africa (FEDHASA); and an amount of R102.88 million for private enterprises cut from the Tourism Incentive Programme.


  1. Implications for the Special Adjustment Appropriation for South African Tourism


The initial annual 2020/21 budget for South African Tourism from all revenues was R1.56 billion and the total revenue after the adjusted appropriation was R438.9 million. Table 8 shows that the Entity lost a total of R1.1 billion in budget cuts from the various sources.

Table 8: Revenue Sources for South African Tourism

Revenue Classification

ENE Budget

Special Adjustment



Adjusted Appropriation


Transfer from the Department of Tourism

1 304 306

-866 000

438 306

TOMSA Voluntary Levies

144 224

-144 224


Sundry Income

112 189

-111 509



1 560 719

-1 121 733

438 986

Source: South African Tourism 2020

The substantial cut was R866 million, a reduction from the transfer by the Department of Tourism as depicted in Table 8. Other reductions include R144.2million from TOMSA Levies; and R111.5 million of the projected R112.2 million from sundry income. Table 9shows the budget reductions per Programme.

The budget appropriated to South African Tourism is mainly used to for destination marketing, targeting leisure tourists in both the international and domestic markets. The budget cut, as dictated by the continued travel restrictions, has caused a drastic reduction in the ratio of the marketing expenditure by South African Tourism. This has resulted in more focus being directed towards general operating expenditure.


Table 9: Revised budget for South African Tourism


ENE Budget

Special Adjustment



Adjusted Appropriation


Corporate Support

140, 936



Business Enablement




Leisure Tourism Marketing




Business Events




Visitor Experience








Source: South African Tourism 2020

The Entity has indicated that:

  • In light of the constrained fiscal space and limitations on marketing, South African Tourism has reduced the projected budget spend significantly, focusing on foundational and transformative initiatives that will position the organisation to best support the recovery;
  • The revised APP that was tabled in Parliament already reflects the reduced budget and will not be affected by the reported budget cuts;
  • South African Tourism, through the Department of Tourism, will continue to monitor the environment with National Treasury - Upon readiness of the sector based on the Risk Adjusted Approach, the department shall motivate to the National Treasury to consider resourcing tourism’s recovery efforts from a marketing and development point of view;
  • South African Tourism will continue strengthening industry collaboration through TBCSA on industry recovery initiatives.



  1. Observations and findings


The Committee made the following observations based on the scrutiny of the current tourism delivery environment and the Special Adjustment Appropriation for Vote 38: Tourism.


6.1        Impact on the overall allocations

The Committee noted that the Special Adjustment Appropriation had a huge impact on the funds allocated to Vote 38: Tourism. Vote 38 was cut by R1 billion from an initial allocation of R2.48 billion, indicating a 40.3 percent downward allocation.  Whilst the National Treasury has shifted within existing functional policy programmes, and across departments, the Committee is of the opinion that the tourism sector has suffered the most when compared to other sectors. This is also exacerbated by the continued closure of the tourism sector, whilst other industries are fully open. The Committee, however, appreciates that the activities which were suspended as a result of the COVID-19 have enabled government shift spending to meet the pandemic policy requirements, and further stabilise public finances. Nonetheless, the Committee warns that the budget cuts will have serious implications for the Department of Tourism and South African Tourism. The Committee, therefore, generally believes that the Tourism Relief Fund should be recapitalized to cushion tourism businesses from collapsing.


6.2        Impact on service delivery targets

The budget cuts will have a huge impact on the departmental programmes for the 2020/21 financial year. Some of the major initially planned projects that will be affected include the removal of the Market Access Programme, Tourism Grading Support, and Tourism Transformation Fund as performance indicators; the reduction of the number of programmes implemented to enhance visitor service and experiences ; the reduction of the number of capacity building programmes; the cancellationof the National Tourism Careers Expo, National Chefs training programme; the Coastal Marine Tourism Skills development programme; the reduction of the number of participants in the Food Safety Quality Assurer Programme; and the cancellationof the pan-African tourism ministers dialogue session.


With regard to South African Tourism, the budget cuts will have a huge impact on the core mandate, as the Entity had to cancel its international and domestic marketing activities and focus on non-core activities. Some of the major core business activities that are negatively impacted include Departure surveys; Forward keys; Brand tracker; Market Readiness Assessments; Development of South African Reputation Index; cancellation of Africa’s Travel Indaba; cancellation of Meetings Africa; cancellation of the LilizelaProgramme and Awards; National Associations Support Program and Strategic Platforms; Trade tools and Partnerships; theWelcome Initiative; Visitor Experience and TGCSA telesales service.


6.3        Repurposing the budget for future plans

It was noted with appreciation that the Department and South African Tourism are repurposing the current budget for the effective operations of the two organisations whilst ensuring the sustainability of the tourism sector. South African Tourism indicated that, amongst other things, the Entity is implementing the Enterprise Project Management, which is focussing on the internal controls; transformation of the sector; creating market access for the new entrants to the sector; creating and packaging new attractions and experiences; ensuring inclusive growth through incorporating the products in the Villages, Townships & Small Dorpies (VTSDs).

It was also noted that the Entity has put on halt its recruitment drive whilst waiting for the final outcome of the government’s initiative of restructuring and repurposing the public entities. In the meantime, no staff member will lose their jobs. The Committee welcomes the move by the Entity to identify critical posts that should be filled in the meantime to ensure the optimal functioning of the organisation. It is also acknowledged that the entity had already started to look at repurposing staff and placing them within the organogram for better and effective operations.


6.4        Disbursement of the Tourism Relief Fund

The Committee appreciated the progress made in the disbursement of the Tourism Relief Fund (TRF).  The TRF was capitalised with R200 million and could only support 4 000 entities as it was capped at R50 000 per entity. The Committee was impressed that to date, 7 293 applications had been received, of which 3 861 have been approved. The provincial spread was:1875 applicants in the Western Cape (936 approved); 222 applicants in the Northern Cape (119 approved); 299 applicants in the North West (157 approved); 434 applicants in Mpumalanga (227 approved); 529 applicants in Limpopo (281 approved); 1 149 applicants in KwaZulu Natal (581 approved); 1 752 applicants in Gauteng (981 approved) and 285 applicants in the Free State (131 approved).There were a number of other issues affecting the sector that were still being looked into, including what support could be given to part-time employees such as waitrons. The Committee welcomes the undertaking by South African Tourism, as the implementing agent of the TRF, to give a full report on the impact of the Fund once the project has been closed out.


  1. Focus on domestic tourism

The Committee appreciates the focus given by the Department and South African on domestic tourism as the first area envisaged for the recovery. The Entity is currently engaging the provincial Destination Management Organisations through the Chief Marketing Officers Forum to discuss how todrive both domestic and international tourism. The Committee is impressed by the activities of this forum around the issues of aligning the marketing strategies; aligningcontent and messaging, which entailsconsolidation of information from stakeholders on the ground; the consolidation of the country events calendar; and the alignment of all the campaigns to drive recovery and seamless marketing of destination South Africa.


6.6        Enhanced communication

Communication was deemed as one aspect that the Department and South African Tourism should improve on. The Committee is of the opinion that the communication could be improved through various ways to enhance predictability and transparency, including establishing a hotline to harness ideas from the citizens and setting a weekly communication schedule to engage all the stakeholders. The Committee was, however, pleased that the Entity has recently launched the crowd survey through the #ShareSouthAfrica Platform to source ideas from a local level, and that this platform was starting to yield positive results. The Committee welcomes #ShareSouthAfrica as a hashtag being circulated to crowdsource ideas towards packaging domestic or tourism offerings. This will in turn assist in marketing different parts of the country, especially helpful for off-the-beaten track destinations

6.7        The significance of adhering to legislation by the trade

The Committee noted that the concern of some industry stakeholders about the requirements for the B-BBEE to access government relief assistance had been addressed. The Minister reported that many business owners had acknowledged that by being non-compliant with the B-BBEE Sector Codes and cheating the system by not contributing to the Unemployment Insurance Fund (UIF), had actually been a detriment to their businessesas they did not qualify for support from the TRF and UIF benefits for their employees. The Committee was pleased that the Department was engaging some of the businesses to help them to comply with all relevant legislative prescripts.

The Committee reiterates that the B-BBEE is a policy of the South African governmentintended to facilitate redress andensure that South Africa is transformed for the benefit of all its citizens.


6.8        Obstacle to transformation

The 6th Parliament Portfolio Committee on Tourism has identified transformation as one of itskey priority areas. The government is urged to create a conducive environment for the sector to be transformed and achieve inclusive growth. However, thee budget cut has blown a dent on the Committee’s efforts to expedite transformation. The departmental programmes such as the Tourism Incentive Fund, Working for Tourism and related training, market access, and incubators are at the centre of driving transformation. The Committee should urge the Department to enhance the implementationof transformation programmes in the remainder of the MTSF period to ensure that transformation remains the priority during the 6th administration.

However, the Committee was pleased to note that the Department and South African Tourism still have the transformation agenda in their future plans.


6.9        Tourism recovery

The Committee noted that South African Tourism is currently finalising the National Tourism Recovery Strategy. The COVID-19 virus is unpredictable, and the recovery period may well be longer than 24 months. Currently, the economic activities that were allowed within the sector were taking place at a much smaller scale. There is a clear indication that many jobs will be lost as a result of the pandemic. The Committee also noted that even when the recovery sets in, the sector will not return to pre-COVID19 conditions. The Committee, therefore, holds the view that tourism businesses will experience different scenarios when the sector finally reopens, with others struggling to continue operating, others operating just to remain in business, whilst the big businesses with financial reserves may be able to continue operating normally.The cause for concern is that some tourism businesses are only geared for the international market and will not benefit from the initial recovery of the domestic market. benefit from the initial recovery are those that will be able to adapt their products to the domestic market.


6.10      Governance and organizational stability

The Committee was pleased that both organisations are stable, with the executive management positions at both the Department and South African Tourism managing to effectively operate with current vacancies. The Department reported that the Deputy-Director General, MsMorongweRamphele, responsible for Tourism Sector Support is retiring after at least thirty years in thepublic service and wished her well in future endeavors. The Minister also reported that the vacancies in the South African Tourism Board have been filled, with Mr Siyabonga Dube appointed as the Board Chairperson and MsMojankuGumbi as the Board Deputy Chairperson. The Committee welcomes these appointments and is confident that this will assist the Board in navigating the challenging predicaments posed by COVID-19 and steer the Board towards a developmental and transformational trajectory.


6.11      Medical tourism

The Committee made a proposal that South African Tourism may consider promoting the country as preferred destination for Medical Tourism, for both during and post COVID-19. During the COVID-19 period, the Entity may target the wealthy market internationally and within the country to market the idea of medical tourism. However, the Committee is cognizant of the regulations set by the National CoronavirusCommand Council(NCCC) and that the World Health Organisation is advising against such activities. As such, the marketing work should be done to ensure that the country is put on the map for medical tourism to attract medical tourists when international tourism reopens.The Committee is cognizant of the developments around the introduction of the proposed National Health Insurance, and urges the Department and South African Tourism to consider how medical tourism will be integrated in this changing health environment in South Africa.


6.12      How the revised budget will impact on the recommendations made during the Budget Votes?

The revised budget will not have an impact on the Revised 2020/21 Annual Performance Plan tabled by the Minister of Tourism. The Department of Tourism tabled the 5-year Strategic Plan for 2020/21 -2024/25 and the Annual Performance Plan for the 2020/21 Financial year on the 18th March 2020. However, due to the impact of COVID-19 on the tourism sector, the Minister withdrew the Annual Performance Plans of both the Department and South African Tourism in the letter dated 8 May 2020 as published in the ATC No 51 – 2020. The Minister then tabled a revised Annual Performance Plan on the 20th May 2020. The Committee acknowledges that the Minister of Tourism had already factored the looming budget cuts by the National Treasury and the revised Annual Performance Plan was already in line with the Special Adjustment Budget.


7.         Recommendations


After a careful consideration of the Revised Budget for Vote 38 and its implications on the tourism sector, the Committee urges the Department of Tourism and South African Tourism to carefully implement the Risk Adjusted Strategy in relation to tourism, consider the recommendations made in this report and report back to the Committee on or before the end of the 2020/21 financial year. The Committee, therefore, recommends that the Minister of Tourism:

7.1     Engages the National Treasury on the strategic necessity to fund tourism in order to revive this economic sector, which is vital as a labour intensive sector that contributes massively to the Gross Domestic Product of South Africa.

7.2     Engages the National Treasury to recapitalize the Tourism Relief Fund to provide further relief to the tourism sector that remains closed due to the regulations related to the COVID-19 Risk Adjusted Strategy.

7.3     Engages government to extend the Temporary Employment Relief Scheme (TERS) for the tourism industry until the sector is fully open.

7.4     Improves communication and public education about the B-BBEE imperatives for transformation and how tourism businesses can easily comply with this national democratic process for redress.

7.5     Intensifies intergovernmental collaboration amongst the various spheres of government to maximise the available budget for tourism development and marketing.

7.6     Strengthens the call for the whole government approach in Cabinet in dealing with tourism matters to ensure that other government departments fulfil their tourism support roles.

7.7     Ensures that the Department of Tourism and South African Tourism develop a case for tourism to present a solid funding proposal to the National Treasury in line with the zero-budget milieu announced by the Minister of Finance.

7.8     Guarantees that the zero-based budgeting reprioritises departmental programmes in the Medium-Term Strategic Framework to implement key priority projects that will ensure recovery, inclusive and sustainable tourism growth.

7.9     Ensures that the zero-based budget proposal prominently features the transformation agenda of the tourism sector in South Africa.

7.10   Ensures that South African Tourism prepares the country for the seamless reopening in the post COVID-19 era.

7.11   Engages the private sector to ensure that the tourism products are adapted for domestic tourism as this is the future tourism segment that will drive recovery and inclusive growth.

7.12   Ensures that the Department acts responsibly in implementing the National Treasury guidelines issued under Instruction Note 5 of 2020, which provide Departments leeway in their procurement processes in the fight against Covid-19.

7.13   Improves communication to enhance predictability and transparency for both the Department and South African Tourism through establishing a weekly stakeholder feedback session.

7.14   Explores packaging and marketing South Africa through South African Tourism as a preferred Medical Tourism destination to international and domestic markets.


  1. Conclusion


The Committee acknowledges the continued devastation caused by the impact of COVID-19 on the tourism industry in South Africa. The Committee had observed the incremental growth of the sector and was optimistic about the continued positive trajectory of the industry in the foreseeable future, albeit challenges that had been identified and were being addressed. The downward revision of the budget for Vote 38 supporting the development and marketing of tourism in South Africa has dealt an indelible blow to these noble developmental and transformative ideals pursued by the 6th Parliament Portfolio Committee on Tourism. The reasons for the downward appropriation are understood and acceptable as the country has to balance the competing imperatives of protecting the lives of citizens and ensuring thriving economic activities that protect livelihoods. Given that the tourism sector contributes massively to labour intensive employment and the Gross Domestic Product of the country, the Committee can only urge the National Treasury to favourably consider the zero-based budget proposals that will be presented by the Department of Tourism. This is important to ensure the recovery of the tourism sector and to secure the much-needed jobs. The Committee also urges the Minister of Tourismand the Board of South African Tourism to be innovative and work smart tomaximise the available budget under the prevailing budget constraints.

[The Democratic Alliance and the Economic Freedom Fighters objected to the Report.]


Report to be considered.


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