ATC111108: Report Tourism Summit on inclusive development, growth and transformation, held at Parliament from 28 February to 1 March 2011
REPORT OF THE PORTFOLIO COMMITTEE ON TOURISM ON TOURISM SUMMIT, DATED 8 NOVEMBER 2011
The Portfolio Committee on Tourism, having hosted the tourism summit on inclusive development, growth and transformation, held at Parliament from 28 February to 1 March 2011, reports as follows:
Tourism has become a major international industry, with many countries all over the world relying on the income it generates, South Africa included. Its economic advantages, as a major source of finance and employment, lead to its active promotion by government and private sector and has become critical.
As the largest economic sector in the world, tourism can produce revenues of up to 500 billion dollars annually. This accounts for about 35% of exports of services with roughly 8% in goods exports. Tourism has been identified as a priority economic sector due to its substantial contribution to job creation, surpassing manufacturing and other industries as well as its contribution to the gross domestic product (GDP) of the country.
The findings from the committee’s oversight work were used an important framework to define the form and content of the summit of this nature. The main objective was to provide a platform where issues concerning tourism growth, development and transformation can be addressed. Some of the issues raised in oversight work range from lack of alignment between the different spheres of government where tourism is concerned; the need for the intensification of intergovernmental relations, geographical spread of tourism, domestic and international tourism marketing, lack of authenticity of cultural experiences in South Africa.
It is against this background that the committee felt the need for such a summit. Not only will this summit provide stakeholders with the platform to raise issues and concerns, it also seeks to forge unity between government and private sector to chart a way forward for better tourism in the country, through for example, maximising the benefits of the 2010 FIFA World Cup and continuing to use tourism to assist in the fight for job creation, rural development and the economic growth of the country.
The Theme of the Summit is “Working together for better tourism opportunities: An integrated approach to tourism development, growth and transformation”. The Summit was meant to explore three critical issues relating to inclusive tourism development; inclusive tourism growth and tourism transformation.
Presenters were drawn from different spheres of government, the private sector, the hospitality industry, academia and civil society. The Chairperson of the National Council of Provinces and the Minister of Tourism and Deputy Minister were also in attendance.
2. Addresses by the Hon. MJ Mahlangu, Chairperson of the National Council of Provinces and the Hon. M van Schalkwyk, Minister of Tourism
2.1 Welcome Address by Hon. MJ Mahlangu, Chairperson of the NCOP
The Honourable Mahlangu, on behalf of the Parliament of the Republic of South Africa welcomed the delegates. He stressed the importance of tourism which ‘cross-cuts’ across all fields such as the economy, culture, science, leisure, technology, the arts, etc.
The concept of tourists, as defined by the World Tourism Organisation is defined as people who, “travel to and stay in place outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited”.
In contextualising the summit within the South Africa context, reference was made to the priorities on tourism highlighted in the 2011 State of the Nation Address. Job creation was stressed in six priority areas, with tourism identified as a critical driver.
On the economics of tourism, literature suggests that there is a strong correlation between tourism expenditure per capita and a country’s profile in the global context. Tourism not only reflects the important economic contribution, but also indicates the way in which global citizens leverage the resources for the benefit of local economies.
Globally, tourism is the world’s largest earner of foreign currency. In South Africa, according to Statistics South Africa, tourism attracts 0.2% of the annual estimated 300 million tourists in the world. It brings an estimated 20 billion rand into the economy, second only to manufacturing and mining in its contribution to the gross domestic product (GDP); or in other words, it contributes about 8.2% to South Africa’s GDP on average.
The successful hosting of the 2010 FIFA World Cup also elevated the tourism image of South Africa. It is important for South Africa to maintain this good image and this is most likely to occur with proper management and planning at all levels of government.
The hosting of the summit shows a commitment of legislators to sustain the image of South Africa as a good tourist destination, as well as ensure the creation of jobs through its ‘pro-poor tourism’ concept.
2.2 Keynote Address, Hon. M Van Schalkwyk: Minister of Tourism
The responsibilities assigned to the tourism sector in the last two decades have been critical to the economy of South Africa.
The contribution of the sector to the GDP of this country increased from just under 5% in 1994 to an estimated 7.7% in 2010. The department understands the importance of their work and this is reflected in policies, programmes and the will to foster strong synergies between the public and private sectors in terms of growth and development.
Tourism has also been strongly prioritised as a key sector of growth in the economy at the national level. References are made in the New Growth Path, and the Industrial Policy Action Plan 2.
In terms of global developments in travel and tourism as part of the summit, the Hon. Minister highlighted the following five international developments:
· The 2009/10 global financial crisis changed the economic and consumer landscape. While 2010 witnessed a return to growth in global tourism arrivals, the expectations in 2011, reflect – the inbound and outbound growth is robust in emerging markets, but the rebound in South Africa’s traditional markets are weak;
· There is a marked shift in geographic markets as the global industry realises the value of the booming outbound traffic flows from emerging markets as the long term response to globally shifting markets;
· Consumer preferences have shifted considerably since the international economic slowdown, and these preferences will continue to evolve unabated;
· Emerging technologies present a variety of new opportunities, but also challenges; and
· The world is taking advantage of improved coordination between the aviation and tourism sectors.
3. PRESENTATIONS BY GOVERNMENT DEPARTMENTS AND PRIVATE SECTOR
3.1 National Department of Tourism
Mr Makhubela, Director General touched on selected targets and outcomes aligned. Department of Tourism highlighted that tourism was contributing to three strategic areas of GDP, job creation, and transformation. The direct tourism contribution to GDP was expected to rise from R71 billion in 2009 to R118 billion in 2015, whilst its indirect contributions were estimated to rise from R189 billion in 2009 to R318 billion by 2015. By 2020, tourism would have created 225 000 jobs.
Investment case for tourism industry was seen as being able to absorb labour, as well as able to balance labour and technology. It was a catalyst for other sectors due to its multiplier effect. It was an infrastructure investment driver, and demanded reasonable skills requirements at entry level. It continued to generate foreign-earnings.
The department emphasised the importance of growing domestic tourism in order to sustain the industry and create more sustainable jobs. This would also address the geographic spread and seasonality aspects. It was also necessary to grow the Africa market to promote regional tourism.
The entry of South Africa into BRIC countries would have positive spin-offs in terms of maintaining and growing existing markets. Growing the local tourism industry would lead to development and promotion of unique-niche-products.
Case for Africa with regards to the Africa market, Angola and Nigeria were the leading spending markets for South Africa. Loss of market to overseas competition could be ascribed partially to limited marketing efforts and access channels. However, the trend was also for people to travel regionally. It was thus necessary to break the “Afro scepticism” in order to realise full potential and create a marketing presence.
Tourism was also affected by the changing global landscape and he highlighted some important factors. About 40% of the global population was located in two countries (India and China), and they had grown by more than 10%, even during the global recession. The worst-hit by the global recession were Europe and USA. Worldwide, passenger numbers had increased by 6,5%, with the Middle East, Russia, India, Egypt, Brazil, The Republic of Korea and the United Arab Emirates leading this growth at an average 9%. The partial closure of the European Airspace led to 100 000 flights being cancelled and 9 million passengers being affected.
The Sector transformation had been supported for the implementation of the Tourism Charter, in order to achieve greater representative. Government procurement procedures were seen as a lever for transformation and Small, Medium and Micro Enterprises (SMMEs) were prioritised for non-financial support. The culture of travelling was being cultivated in all South Africans.
There were enabling factors also in the sector. Structural arrangements across and within all spheres, including sector budget structures, were being developed, whilst policy synergies across the different spheres were being maintained. There was greater development of a tourism culture for all South Africans and greater availability of information for all stakeholders.
3.2 Tourism Business Council of South Africa (TBCSA)
Ms Mmamatsi Morobe, Chief Executive Officer gave an overview of Travel and Tourism to be a sector encompassing transport, accommodation, catering, recreation and services for visitors. One of the world’s highest priority industries and employers, and was the world’s leading growth sectors. One of the fastest growing economic sectors globally, a sector whose business volume equals or even surpasses oil exports food products and / or automobiles. The sector has become a major player in international commerce and has become a main source of income for many developing countries. The last four years have seen Travel & Tourism Economy GDP increase at an average annual rate of 4.0% in real terms, faster than the overall global economy. Over the same period, Tourism & Travel has created more than 34 million new jobs.
Private Sector Landscape in South Africa’s Travel and Tourism industry is made up of a combination of large corporations and SMMEs. These businesses operate in different facets of the industry, which can be divided into: transport (land, air and sea); hospitality (accommodation, food and beverages); MICE (meetings, incentives, conferences and events); and tourist attractions (attractive destinations which tourist visit for business and leisure). These key industry players all play an important role in the delivery of a “unique South African experience” to local and international tourists.
TBCSA is the umbrella organisation for the private sector in the travel and tourism industry and is the voice of the private sector within the industry and conduit with the public sector. Formed in 1996 to form a unified platform for the private sector to engage with the public sector and other stakeholders to develop and grow the industry and was managed by a Management Board with automatic seats for all key associations and elected business representatives. Over the years, TBCSA has played a pivotal role in tackling macro-economic issues faced by the Sector, which include: transformation in tourism; tourism marketing; skills development; and quality assurance.
Tourism Marketing Levy South Africa (TOMSA) is a Section 21 entity established in 1998 to provide additional marketing funding to SA tourism to promote destination South Africa. The funds are obtained through voluntary levy on tourism services rendered to the tourist, and are collected monthly. The agreed levy is charged on to the visitor and not taken from the tourism business unless specified. TOMSA has grown from collecting R11.4 million in 1999 with 50 collectors, to collecting in excess of R80 million in 2009. In 2010, R93 million was transferred to South African Tourism between January and December. Relationship is regulated through a signed memorandum of understanding and quarterly meetings.
Approach to development will be successful based on strong public private partnership in developing and growing the sector. Travel and tourism remain one of key sectors for job creation; and little education is required to be employed in the sector and is a key sector for skills transfer and on the job training.
Approach to Growth is dependent upon committed focus from top government leadership. Incentives and special dispensation to promote growth in the sector such as investment promotion; marketing and channel access packages; and youth employment subsidies.
Approach to transformation: committed to Broad Based Black Economic Empowerment policy and programme; taking a broader view of transformation to include: Human Resources Development; Enterprise Development and Support. Mainstreaming travel and tourism as a sector; and changing the way business is done by focusing on innovating the SA offering – packaging and value for money and growing domestic travel and to expand to new markets regionally and internationally.
The challenges facing the sector first relate to Air and Air Access into South Africa. Secondly, the role of Sector Education and Training Authorities (SETAs) in skills transfer and leadership development for job creation was still challenge. Thirdly, the safety and security of tourists and travellers was still regarded as a hindrance. The central role of Local Government in tourism was critical since this sphere of government was at the centre of service delivery. Service Excellence, with more emphasis on grading and culture of customer service. Marketing & promotion and the cost of doing business focusing on legislative harmonisation between national, regional and local governments.
3.3 Department of Economic Development
Professor Richard Levin, Director General emphasised that the global economic downturn from late 2008 had resulted in loss of over a million jobs in South Africa, returning unemployment to its lowest levels, and leading to a tighter fiscal situation where there was a steep drop in State revenue in 2008/09, countered by the State’s commitment to a counter-cyclical strategy and rapidly increased deficit.
The New Growth Path (NGP) had a set target of creating five million new jobs over the next ten years. Government was also fine-tuning macro and micro policies to support more equitable and employment-intensive growth. This would be achieved through making the economy more competitive, including the value of the currency, through increasing infrastructure, skills and wage goods, systematically encouraging more labour-intensive and green activities, with a greater focus on domestic and regional markets, and using social dialogue and solidarity as central to change.
Achievement of job targets would require greater employment intensity of growth. Employment intensity of 0.2% would require a growth rate of over 15%, whilst 0.8% would require a growth rate of 4%.
The possible innovations that would drive creation of jobs and these would include sustained high public investment in infrastructure with stronger local procurement, and setting targets for smallholders in agriculture, linked to restructured land reform. In the mining sector, there was a need to incentivise output growth, plus beneficiation at stage 4. There must be increased emphasis on high level services of tourism, culture, business, healthcare, and software. The green economy was seen as a major potential area for employment creation. African regional development centred on driving improved infrastructure and economic value-chains.
The macro-economic strategy was counter-cyclical and geared to supporting a competitive rand. A more relaxed monetary policy would address inflationary pressures through fiscal policy and targeted micro-economic strategies. The micro-economic strategy would address cost drivers and inflationary pressures across the economy, with an emphasis on steel, fertilizers, rail, ports, electricity, maize and wheat production. It was linked to skills development, including the reform of the Sector Education and Training Authorities (SETAs) and the work permit system. Reform of Broad Based Black Economic Empowerment (BBBEE) strategies would increase incentives for supporting Small and Medium Enterprises (SMEs), skills development, local procurement and employment creation.
Sectoral policies included improvements in mineral licensing, speeding up water licensing and land claims, improvements in tourist visas, and dedicated Industrial Development Corporation (IDC) funding for green and agricultural projects. The Anti-Red Tape Campaign would improve the overall regulatory framework, with an initial focus on metros and secondary cities.
The resource drivers would be the State budgets, at national, provincial and local levels. Resources existed at State Owned Enterprises (SOEs) and development finance institutions (DFIs), universities and science councils and retirement funds. The domestic private sector, international investment and donor funding, as well as community-owned financial institutions such as stokvels and cooperatives, must also be involved.
Institutional drivers outside the State included business and markets, which would be vital to development of jobs, investment, entrepreneurship and technology. Labour resources included skills commitments, retirement funds, union investment vehicles, wage agreements and public service delivery. Mr Lenin also stressed that there was a need to deepen dialogue at sector and workplace levels, to strengthen institutions for social dialogue at all levels, with the New Economic Development and Labour Council (NEDLAC) at the apex, and to mobilise South Africans behind the vision.
The New Growth Path considered tourism as an important jobs driver being able to create employment on a large scale. It targeted creation of 225 000 new job opportunities by 2015. Its strategy was to focus on managing costs, assuring quality, upgrading infrastructure, and improving domestic and international logistics and ease of access. The New Tourism Strategy was a critical mechanism.
The Lekgotla priorities for tourism in the 2011/12 financial year were to improve tourism infrastructure at five key sites, to develop opportunities for domestic tourism, to drive the airlift strategy for strategic markets and explore developmental pricing for these markets, to manage the overvaluation of the rand, which was crucial to tourism cost structures, and to minimise visa requirements for strategic markets.
In order to achieve this there would have to be transformation of deep-rooted and complex systems. Every State agency must report on its impact on employment creation by developing information systems based on a common model, and must assess its regulations more systematically against employment, growth, emissions and equity.
3.4 Statistics South Africa
Mr Pali Lehohla, Statistician General provided definition of tourism to include all trips away from one’s usual environment, not just holiday and leisure trips. It also includes business, visiting friends and / or relatives, medical health trips, and religious journey amongst others.
The Tourism Satellite Account is a statistical instrument used to measure the size of the tourism industry’s contribution to the economy of a country according to international standards of concepts, classifications and definitions. All for valid comparisons with other industries and eventually from country to country and between groups of countries.
Fundamental structure of a TSA is based on the general relationship existing within an economy between the demand of goods and services generated by tourism on one hand and their supply on the other hand – it therefore brings together the demand and supply side of the tourism industry.
TSA provides a framework for policy analysis of issues related to tourism economics, as well as for model-building, tourism growth analysis and productivity measurements. Main purposes were to: analyse in detail all the aspects of demand for goods and services which might be associated with tourism within the economy; observe the operational interface with the supply of such goods and services within the same economy of reference; and describe how this supply interacts with other economic activities.
Percentage of day and overnight trips by province of destination Gauteng was the most visited province on day trips by 24.2% while Kwazulu-Natal had the highest proportion of overnight trips by 22.7%. The main reasons for taking trips were visiting friends and family / relatives and leisure.
Destination by mode of transport: when trips are taken to Western Cape people used cares (76.3%), taxi (7.5%), aircraft (6.8%) and bus (6.8%). Travellers to Gauteng used taxis (43.4%), cars (30.8%), buses (15.7%) and trains (7.7%). Fifty five (55.1%) used taxis, cars (30.8%) and buses (12.5%) to reach the Limpopo province. The mode of transport of most of the travellers to KwaZulu-Natal was taxi (48.7%), cars (38.1%) and buses (10.1%). Forty percent (40.1%) of trips to Eastern Cape were made by taxis, (33.5%) by cars and (19.4%) by buses.
The age group of 30-34 was most likely to travel with 1,018 million undertaking overnight trips whilst the 606 000 took day trips.
Contribution of tourism to employment and size of the economy: tourism is set to contribute 225 000 new jobs by 2020, and total direct and indirect contribution to the economy has increased by 16 percent from R163 billion in 2007 to R189 billion in 2009. This increase is expected to reach R318 billion by 2015, with the aim of increasing the direct and indirect contribution of tourism to GDP by 3 percent per year over the medium term.
Total employment in South Africa in 2008 was approximately 13.7 million and the 4.4% of that was the contribution of tourism while in 2005, it was 4.0%.
The Business in the non-vat registered environment that is businesses which are not registered are generally excluded from the Business Frame which is used by Stats SA in the business surveys to assess the formal economy. However, non-registered businesses also contribute to the economy of the country. It is for this reason that Stats SA introduced a survey of employers and the self employed (SESE) in 2001. SESE is a household based survey that measures the contribution of non registered businesses to the economy. The survey also provided information on the characteristics of individuals operating businesses. The survey is done once every 4 years.
Number of persons running at least one business by industry: most of the non-VAT registered businesses were operating within the Trade industry -1.6 million in 2001 and 1.1 million in 2009 (although the number had declined by 614 000 in 2009, Trade was still the highest contributor.
The main reason for starting a business is unemployment or not having alternative income source (counted more than 60% in all the three time periods under review) was indicated as the main reason why people decided to start a business.
Proportion of those who did not need money to start a business by industry is the highest proportion of business owners who did no need money to start their businesses were in Trade with 21.6% in 2001; 12.6% in 2005 and 14.9% in 2009 respectively. Among those who needed money over 70% used their own money to start their own businesses.
Proportion of those who borrowed money to start a business by source of money: the majority of persons borrowed money to start businesses or borrowed it from friends or relatives. The proportion of persons who borrowed from commercial banks increased from 4.0% in 2001 to 8.4% in 2009.
3.5 Department of Arts and Culture
Mr Vusithemba Ndima, Acting Deputy Director-General for Cultural Heritage highlighted the department was making a direct contribution to tourism development and growth, by establishing, supporting and developing arts, culture and heritage programmes and entities, and by producing activities that were consumed by locals, international visitors, and international audiences.
The extent of this contribution was not yet fully clear and would require scientific assessment and quantification. Although there was already substantial contribution, there could be more when the true potential of the sector was realised.
The Department, through its agencies, had the task of identifying cultural objects and heritage sites. This would then lead to the department developing comprehensive marketing strategies for cultural tourism to the cultural objects and heritage sites.
Cultural tourism extended opportunities also to the hospitality, transport, creative, textile, food and other industries. There was a need to identify previously marginalised sites located in the urban, peri-urban and rural areas. These would lead to newly packaged tourism routes passing through rural towns and villages.
The Department already had, and continued to build museums, memorials and community arts centres in the rural and peri-urban areas. Each museum should carve a niche for itself, and curators and tour guides should hold seminars to share ideas.
The department would continue to nourish the soul of the nation, and use arts, culture and heritage for nation building, national reconciliation and social cohesion. The department and the Department of Tourism were working together in mainstreaming culture in tourism activities. The two departments were also working together to develop a five-year heritage and social history tourism strategy, which would produce a comprehensive plan for synergies between culture and tourism.
3.6 Department of Cooperative Governance & Traditional Affairs
Mr Richardo Hansby, Deputy Director General indicated that the core business of local government was the delivery of services to communities. Tourism development at local level had to be viewed in the context of many competing socio-economic priorities, and this development and marketing at local level should be based on and highlight the comparative and competitive advantages of the local regions.
Local government had also a significant impact on the natural and cultural resources in and around tourism destination. This extended through provision of municipal roads, lighting, water and sewerage, public transport systems, signs, and, at times, airports and ports. Local government would also provide visitor information and funding of regional and local tourism organisations. It would operate attractions such as museums, art galleries, sports stadiums, convention centres, parks and gardens, events, tours, and other amenities. It was also important to ensure that tour operators, travel agencies, hotels, restaurants and others were licensed and offering services.
Municipalities, in order to succeed in promoting tourism, would have to ensure that core infrastructure in their areas was of high standard and could support a vibrant tourism industry. There should be enabling environments, concentrating on safety, security and availability of transport. There must also be an effective and efficient supply of tourist information, to extract maximum value from visitors.
The mechanisms through which the information was supplied were equally important. CoGTA had therefore supported the draft Tourism Planning Toolkit for Local Government that was launched by the Minister of Tourism and Environmental Affairs at the Local Government Indaba on Tourism in January 2009. This was making an important contribution to increasing competence in tourism planning at local level. It was assisting local authorities in their strategic and financial planning, helping to ensure the appropriate investment in infrastructure and services for tourism, assisting with the development of community tourism plans, and providing research and management systems to help with the collection of tourism data, preparation of strategic tourism plans and assessment of their effectiveness.
The benefits of tourism at local level, these included economic benefits from visitor spending, which supported employment and creation of outlets and services that the local population on its own could not support. He noted that tourism could help to revitalise small municipalities and create a sense of local identity and pride. Tourism events would give residents and visitors the opportunity to celebrate and experience unique features of the community, and would also promote the brand and experience to attract new investment and more residents.
While tourism brought a number of economic benefits, such as an increase in the activities of the sector, it could also have significant and adverse impacts on local residents and communities, and on the biophysical environment. For instance, devolved responsibility for basic services, as well as lack of resources, community acceptance and the need for good governance placed pressure on councils. A major challenge was the low level of coordination and integration between national, provincial, district and local tourism initiatives.
A number of things needed to be done to address this challenge. There was a need to coordinate efforts for funding assistance for tourism projects, infrastructure, training, and capacity building. There should be better alignment between cities and provinces when developing and implementing tourism strategies that would identify priority areas for tourism development. A comprehensive framework for tourism activity at local level must be developed, using the Integrated Development Plans, and distinctive high-level implementation plans must also be developed between CoGTA and Department of Tourism, with consultation from stakeholders in all three spheres. The department was already exploring business ventures with the private sector at local level, which could include large-scale tourism projects.
3.7 Department of Trade and Industry
Ms. Tsepiso Makgothi, Acting Deputy Director General introduced the Tourism Support Programme (TSP) formed part of the Enterprise Investment Programme (EIP) and focused on tourism investment.
Tourism Support Programme offered an investment grant of up to 30% of qualifying investment costs in furniture, equipment, vehicles, land and buildings. It was capped at a maximum of R30 million, calculated in relation to the qualifying investment costs. The grant for investment projects of less than R5 million would be 30% of the qualifying investment costs, payable over a period of three years. For investment projects between R5 million and R30 million, the grant would be between 15% and 30% of qualifying investment costs, calculated on a regressive scale, and payable over a period of two years. For investment projects exceeding R30 million, a 15% grant was available, payable over a period of two years.
The TSP targeted the establishment of new tourism facilities, or expansion of existing facilities. Both local and foreign owned projects could apply, but applicants must have entities registered in South Africa, in the form of companies, close corporations, co-operatives, or community trusts. Projects that had not taken their investment assets into commercial operations were also considered.
The TSP set out eligibility criteria. The wages being paid must be in line with the hospitality sector wages determined by the Department of Labour, and the entrepreneurs must achieve Level 4 BBBEE contributor status, in line with the Tourism Code. Suppliers must also be located outside the big metros of Cape Town, eThekwini and Johannesburg, with the exception of marginalized areas in metros.
The services that could qualify included accommodation services dedicated to tourists (including hotels, lodges, resort accommodation, guest houses, bed & breakfasts, backpacker facilities, and self catering accommodation). Any passenger transport services, including road, rail and water, must be dedicated to tourists and must be registered in South Africa. Tour operators, cultural services dedicated to tourists (such as privately-owned museums) and recreation services dedicated to tourists, would also qualify.
The qualifying assets could include furniture, fittings and equipment, owned land and buildings, at cost value, leases on land and buildings, and commercial vehicles.
There were conditions attached to the TSP grants. The operators should achieve 70% of their projected investment and 70% of projected turnover. Operators should also maintain 100% of stipulated employment levels, whilst paying wages in line with hospitality sector rates, and must also achieve and maintain BBBEE level 4 contributor status.
3.8 Department of Transport
Mr Jits Patel, Acting Chief Director briefed the summit on the National Land Transport Act (NTLA) of 2009, which dealt with regulation of tourist transport services.
The general requirements and noted that Regulations were published on 17 December 2009. In terms of the Act, any person wishing to operate a tourist transport service must apply for accreditation, but this would only become operative once the Regulator was established. In the meantime, tourist applications would be made on a provincial basis. All operators must comply with tourism legislation, accreditation would be based on personal and technical grounds, and could be withdrawn for failure to comply with the Act.
The requirements for accreditation were set out in Regulation 33. These included whether the applicant complied with the Act, and had an acceptable record. Vehicles used must be inspected and compliant, by being registered, licensed, roadworthy and suitable for the purpose. After a date set by the Minister, both the applicant and driver must have passed tests. There must also be an acceptable maintenance programme for vehicles, and acceptable records of servicing, and further requirements were set out in respect of staff and back-up facilities, acceptable records as an operator, adequate insurance and compliance with tax issues. The applicants must also describe the proposed livery, which must be acceptable to promote the image of the tourist industry. Vehicles and premises must be open for inspection at any time.
There were also monitoring requirements over accredited operators, of both operational and technical aspects. The vehicle servicing must be checked on an ongoing basis, maintenance and repair facilities, as appropriate, should be available, including smaller operators having acceptable arrangements for maintenance and repair
Where a vehicle of an accredited operator had been certified, the Regulator would have to issue an operating licence for the vehicle, on either the same or the next day. Two originals must be issued, of which one should be kept in the vehicle and one on file. In urgent cases, operating licences must be issued electronically. Accreditation could also be cancelled, for reasons set out in section 83 of the Act, whilst additional grounds for cancellation were also set out in the regulations. The Regulator was empowered to conduct investigations, and would have to engage with the operator.
The Act provided for transitional matters. Operators could continue to use their existing permits or operating licences until accreditation was granted or refused. If accreditation was denied, the accreditation certificate of the operator, plus permits and operating licences, must be cancelled. These would also be cancelled if the operator was not accredited by the cut-off date.
There were various challenges facing the industry. These included the need to establish the Regulator, the implementation of this and other legislation, tolls, fuel and carbon levies, as well as VAT and import duties. Road conditions and road safety were of ongoing concern. Many drivers did not have the necessary requirements for public transport operators. There was a need to establish an advisory Standing Committee of experts.
4. Commission One: Inclusive Tourism Development
Session Chair: Mr Don Gumede
4.1 Airport Company of South Africa (ACSA)
Mr Deon Cloete presented on passenger growth trends and highlighted ACSA Network of Airports consolidated – 36 million passengers in 2008. Then, there was economic crunch – effectively ACSA lost two years worth of passenger and traffic growth. Impact at network level– lost 3 million passengers per annum. As an example, Cape Town International Airport in 2008 processed 8 million passengers, initial forecasts for annual passenger numbers by 2010 was 10 million passengers, actual annual passenger numbers for 2010 was 8 million passengers. Trends were normalising and turning – domestic passenger growth averaging 5%, international growth still showing negative growth albeit at a reduced level.
Key Strategic focus areas going forward. Optimum utilisation of created capacity and drive for efficiencies: Flexible and inter-changeable Infra-structure – Integrated Terminals. Deployment of Technology i.e. Self Service Kiosks & Home Check-in. Industry Collaboration – Airlines, Handling Companies, Government Agencies and Service Providers – Establishment of the Airport Management Centres at Oliver Tambo International Airport & Cape Town International Airport. Key Focus: On-time performance & End-to End Management. Avoid onerous delay costs and create a high level of predictability.
Growth Initiatives included involvement and participation in relevant policy formulation i.e. the national Airlift Strategy. Create and offer efficient and fit-for-purpose facilities, airport infrastructure and services, locally and abroad. The collaboration of industry with Tourism Authorities and Associations at national & regional level would be required. Incentivise new services, focus on countering seasonality. International Business - and to explore new opportunities presented by Africa & BRIC. Exponential growth to drive the creation of jobs
Business Excellence and customer service: Operate within recognised business principles and governance parameters. Achieve & Exceed recognised Industry Benchmarks & Performance Business Indicators. Add shareholder value. Maintain low tariffs through competitive development costs and further mitigation through strong commercial performances in Property & Retail. Participate, Compete & Excel within recognised global industry programs i.e. Skytrax & ACI Airport Service Quality programs.
Need to understand customer and understand the drivers for customer satisfaction. Survey was meant to understand the current performance. Benchmark your performance to other global industry players. Focus on areas where your performance is not aligned with the main drivers for Customer Satisfaction and other industry players. Take corrective action. Start the cycle again, Survey, track performance, take corrective action.
Safety and Security at the airport is a highly regulated environment. Annual Audits and Licensing are performed. Recommendations & Standards are strictly adhered to. Approach: Beyond compliance. Continue review of industry standards with Regulators and Industry Stakeholders to ensure progressive standards.
Long Term sustainability and business & environment: Ensure responsible and sustainable expansion of airport infrastructure. Focused approach on reducing the carbon footprint by utilising alternative sources of energy. Ensure successful integration of airport infrastructure with other key transport infrastructure and public transportation. Ensure successful integration with local spatial framework development plans. Be a good and responsible neighbour to local communities and business.
Master Plan and Future Developments must ensure that all developments and investments are aligned to the long term Master Plan. Ensure that Airport Master Plan is integrated with the Master Plans of other transport entities such as SANRAL & PRASA. Ensure that all key investments and developments are triggered timeously to ensure available capacity for continued growth. Ensure competitive development costs and fit-for-purpose infrastructure.
ACSA is and will continue to be a key player in the sectors of Transport & Tourism. ACSA will execute its mandate and apply itself through partnerships and collaboration with industry stakeholders, this at both national and local level.
4.2 South African Airways (SAA)
Mr Themba and Mr Smith represented the South African Airways indicated that it was not in a position to provide the summit with the presentation written presentation due to annual results that were due to be released in a week’s time.
However, key elements of the presentation were focusing on: South African Airways tourism development role. SAA was operating on two brands, SA Airlink and Mango. SAAs support for SMMEs and commitment to support tourism development and tourism growth enabler. Forecast passenger growth is projected at 37% to the end of 2014. Funding was from three sources; the government loan of R1.3 billion; long term loan of R553 million; and the short term loan.
4.3 Cape Peninsula University of Technology
Professor Kamilla Swart presented on “Developing and implementing the 2010 FIFA World Cup Research Agenda: Lessons and Reflections.” 2010 FIFA World Cup Research Audit was undertaken from March to July 2008. The purpose was to present a landscape of 2010 research; to identify research gaps; to identify potential opportunities for collaborative research; to build towards a 2010 research framework, with indicators; and culminated in 2010 research workshop in 25 July 2008.
Significant amount of research was undertaken across several themes and by a range of researchers. However, there was a lack of coordination; evidence of duplication; and research resource constraints.
A range of indicators were emerging such as developmental impact indicators on issues of economic, social, infrastructure, media, African legacy, sport and environment.
Key research projects:
- 2010 communication research; event impact model; 2010 legacy indicator Framework; Annual longitudinal survey; Financial modelling; and Case studies and perception studies
Significance of 2010 Research Landscape: was despite legacy imperatives no attempt to systematically track and examine legacy impacts. Develop key research indicators to guide – research support; partnerships and allocation of resources. There was a need to develop 2010 research legacy.
2010 Research Agenda priorities – economic impact: ascertain economic impact in relation to current forecasts. Tourist flows; economic impacts and perceptions of local businesses; and projected vs. actual government spending.
2010 Research Agenda priorities – Social / Political: pre and post resident surveys. Focus on Black Economic Empowerment and SMME development and transformation. Organisational and management issues and legacies and Fan parks surveys and media coverage and content analysis
2010 Research Agenda Challenges was lack of government support. A number of different groups working in isolation and there was a lack of willingness to partner. There were limited resources and a lack of appreciation for importance of research.
2010 Research Agenda Reflections: there was a national / international network of researchers – methodology; sampling; and translations. Partnerships were developed with host cities and regions. National and host city level impacts.
The lesson learnt was that knowledge management was critically important to inform future bidding and planning for mega-events in developing contexts. The willingness and commitment to undertake research was critical. Partnerships and inter-disciplinary capacity from a range of stakeholders was essential. What was required was to mobilise resources and leverage buy-in; and adopt an integrated approach.
4.4 Cape Peninsula University of Technology
Mr Brendon Knott spoke about “The Nation-branding legacy of the 2010 FIFA World Cup and implications for future sport tourism events.”
Branding of nations and destinations had a brand image, made up of: images, symbols, history, perceptions, media, experiences, observations, and stereotypes etc. Countries compete for attention, respect and trust of investors, tourists, consumers, donors, immigrants, media and governments. The creation of a positive brand image requires marketing efforts that link “strong, favourable and unique” associations to the brand in the memory of the consumer.
Sport events provide opportunity to create and promote an image and / or rebrand a destination. Sport also stimulate an emotional heat between the participants and the audiences that can symbolise the energy, vigour, and strength of an emerging nation in ways that eco-branding, museums; and other cultural attractions cannot.
Brand South Africa is known many visitors from new tourist and business markets were from South America and Asia.
The aim of the study was to identify the perceptions of the South African Brand and any changes to perceptions of the brand, among international sport tourists.
Information gathering method was during event (June – July 2010): 561 international visitors interviewed in Cape Town and Durban. Interviews were face to face interviews. Spatially–based sampling approached in Fan Parks and Stadia precincts (Fan Walk).
The study found that many more visitors know the name “Rainbow Nation” that official marketing slogan “Alive with Possibility” 75% compared to 33%. About 92% had strong support for SA as a World Cup host while 85% had strong support for future events to be hosted in SA. South Africa is a “safe place to visit” was at 67%. World Cup was primary reason for travel was 77%.
Beyond 2010, the importance of sport as a platform for nation and destination branding should be realised. Bid and host future mega-events need to capitalise on human capital, facilities, and global sentiment. Small and home-grown events also play a role.
5. Commission Two: Inclusive Tourism Growth
Session Chairperson: Hon. Sunduza
5.1 Federated Hospitality Association of Southern Africa (FEDHASA)
Mr Brett Dungan, Chief Executive Officer stated the importance of tourism as one of the six economic growth drivers as stated by President during the 2011 State of the Nation Address. In order to contribute meaningfully in job creation, an interactive collaboration between the tourism industry and stakeholders is critical.
The collaboration will enhance the manner in which tourism sector interact to one another. Tourism sector, according to FEDHASA is like an orchestra without a conductor, it is therefore, proposed that there is a need to create a tourism task team to coordinate the functioning of tourism industry.
FEDHASA also noted that fact that there is a huge number of legislation and by-laws at some point hinders the tourism growth. Hence, there is a need to harmonise all the pieces of legislation for effective development of tourism.
FEDHASA stated that there is an increase in tourism figures but such numbers do not translate to the increase in room occupancy at the hotels.
5.2 Council for Scientific and Industrial Research (CSIR)
Mr Phillip Hobbs spoke on “The environmental effects of mining”. The CSIR acknowledged upfront that mining was a very important contributor to both the local and national economy and extractive industries will continue to underpin the economy in the future. Mining is vital in the pursuance of the sustainable development.
Variables that inform impacts of mining were mentioned as climate (rainfall, evaporation); physical geography; hydrology and geo-hydrology; geology; mineral and host rock geochemistry; and mine type.
Impacts of mining: alteration of the surface landscape (for example open pits, tailings, waste rock piles, surface subsidence). Pollution of the atmosphere and that of water resources was serious concern. These result to damaged road infrastructure, and physical hazards such as open shafts, unstable slopes, contaminated soil or land.
South Africa’s World Heritage Sites are: iSimangaliso Wetland Park (formerly known as Greater St Lucia Wetland Park); Robben Island; Fossil Hominid sites of Sterkfontein, Swartkrans, Kromdraai & Environs (Cradle of Humankind); Ukhahlamba / Drakensburg Park; Mapungubwe Cultural Landscape; Cape Floral Region protected areas; Vredefort Dome; and Richtersveld Cultural and Botanical landscape.
The gaps and uncertainties relate to the availability of data and information and the veracity of impact assessments. The apportionment of liability; monitoring and knowledge and expertise in these is a challenge.
Concerns on the existing policy frameworks were the absence of a national view on the development of optimal, integrated solutions. Lack of clarity on re-delegation of powers between government departments at all levels. The existing frameworks lead to reactive rather than proactive interventions. The IMC on AMD represents a timely and positive shift in regard of the above concerns.
The Auditor General SA (2009) audit highlighted the following concerns in respect of DMR’s role: lack of an integrated information system to record and report on status of mines; of policies and procedures on budgeting for rehab projects; of an approved strategic / business plan for rehabilitation; and a lack of communication channels, policies and procedures between internal and external stakeholders and role-players.
For the future the country must address environmental threats in a coordinated manner shared between government and the mining industry. Foster research into optimal and sustainable short, medium and long term solutions within an equal partnership relationship between regulatory authorities and researchers. Recognise that there is no “quick-fix” solution to environmental rehabilitation challenges. Recognise the value of disseminating knowledge on or rehabilitation activities to the public.
Mining for closure: CSIR commented that future public health and safety should not be compromised. Environmental resources should not be subject to physical and chemical deterioration and after –use of site, the site must be beneficial and sustainable in the long term. Therefore, any adverse socio-economic impacts are minimised and all socio-economic benefits are maximised.
5.3 University of KwaZulu-Natal
Professor Joyce Tsoka-Gwegweni presented on “Health Tourism”. Health Tourism is a broader concept which includes medical tourism: where people come to receive medical procedures because there are unaffordable, illegal or there is no expertise in their own countries. It involves mainly resorts aimed at cosmetic or improving the body and relaxing the mind.
Status in the world, medical tourism is the most developed form of health tourism and leading countries are Thailand, India, Brazil, Iran, Switzerland and Turkey. A growth of 16% has been reported in some countries.
The opportunities of business that lie within that product were that the existing resorts could give local people business opportunities by allowing them to sell their arts and products at the resorts. Government could form partnerships with resorts to strengthen the industry. Spas could explore traditional methods of body treatment (use of facial clays).
Most African hair salons are incorporating some of the services that could be found at health spas like massage, facial and hand and foot treatments. However, there were not well developed in the townships and smaller towns. With the government commitment of promoting small and medium businesses the industry could be developed in these areas. As most townships like Khayelitsha, and those in Soweto were now recognised tourist attraction sites, opportunities, exist to establish health tourism in those places (gyms, spas and hair salons).
Where these exist in the country, they needed to be upgraded to international standards to accommodate international tourists. Teaching of courses on aspects of health tourism is fragmented and limited to FET colleges and universities of technology focusing mainly on cosmetic treatments. The tourism courses need to incorporate teaching of health tourism as well.
The policy considerations that are a challenge with respect to policy imperatives: there is a need for a coordinating body to ensure that these businesses are recorded in a database and are marketed widely. Clear legislation to ensure that the business owners comply with country’s laws such as tax laws, registrations labour, safety so that in cases of accidents it must be clear as to who is liable for damages (for example, a case of British tourist who fell off and died while hiking along Table mountain).
In cases of lawsuit for example for medical damages – if tourists sue service providers demanding exorbitant prices and the service provider’s insurance is not able such, this could result in the closure of the business. Owners of health tourism businesses must also comply with property, business, medical, health and safety legislation.
South Africa has many advantages for health tourism to develop: tropical climate; well developed infrastructure; stability in the country, therefore more tourists will come and explore the country; potential for growth to boost the economic.
The sustainability of the product: as long as tourism is in place, the sector has a potential to grow. Seasonal in terms of tourism, must make provision for low holiday seasons. With the increasing rates of overweight and obesity, comes an increasing risk of stroke, heart diseases, high blood pressure and diabetes. Therefore the need for wellness and health tourism increases.
With emphasis on beauty there will always be a demand for health tourism. Many people were not happy with the shape and size of their bodies. There was an increasing demand for fitness centres and weight loss programmes. As long as the owners comply with the relevant legislation, the business is sustainable.
The way forward: there is a need an audit or survey to identify the tourist facilities available in the country. This would provide the status of health tourism in the country. There was a need for market research of knowledge, attitudes and practices. Engage in aggressive marketing and promotion with focus on all-inclusive holiday packages as it is done in Thailand and India.
Establish a Health Tourism Office. In Iran such an office is located in the ministry of health. In South Africa this needs to be decided.
5.4 University of Johannesburg
Professor Chris Rogerson presented on “Not working together-Tourism and Agriculture in Rural South Africa” highlighted many reasons why tourism and agriculture should link together – to improved rural livelihoods, reduced carbon food-print, business development and job creation in rural areas. The synergies were obvious. As food accounts for a significant share of tourist expenditure, the food supply chain to the tourism sector is acknowledged as an important potential source of pro-poor impacts.
Aim and Scope: Research reports findings on tourism-agriculture linkages in South Africa – a different geographic focus to other work. Specifically the research is on food supply chain to luxury safari lodges across South Africa and issues of pro-poor impacts. These lodges are located in often remote areas where local communities suffer high levels of poverty and because of the high paying customers that they attract, are seen as potential vehicles for pro-poor local economic development.
South Africa provides an interesting context for studying tourism-agriculture linkages because of national responsible tourism guidelines encourage “local” procurement and findings that show participation in supply chains might be more beneficial to poor communities than actual involvement in the tourism product.
The method of research involved 2 stages. Stage was to develop a national data base of luxury ASLs in South Africa, defined as over 200 dollars per person per diem. Stage 2 involved 56 detailed interviews with ASL management and chefs – food decision makers. As many interviewees were responsible for food sourcing at more than one lodge, information collected for 80 ASLs. There was an additional focussed interviews with key intermediary ASL food suppliers. The research yielded quantitative and qualitative material.
Research conclusions were that South African findings show that notwithstanding a supportive policy environment in terms of responsible tourism and encouragement of local procurement, only limited local linkages have evolved in terms of food supply.
Food supply chains were organised by a network of intermediary suppliers which source bulk of their supplies from urban wholesale markets. Some geographical variations in patterns of local sourcing were in evidence. As compared to previous investigations there were common findings and contrasts.
Major contrast related to ownership of tourism establishments which emerges as critical in Mexico / Indonesia where there were no issue of foreign ownership factor as majority of lodges were locally owned.
Common themes in limited local linkages were lack of capacity of local producers to match quality, consistency and reliability of product supplies as required by the lodges. The research-indicated a host of constraints had to be addressed to strengthen the pro-poor linkages. Most important were poor communication and trust between tourist establishments and producers, and a need for building capacity and support for small scale producers to enter local food chains.
6. Commission Three: Tourism Transformation
Session Chairperson: Hon. Komphela
6.1 Tourism, Hospitality & Sport Education & Training Authority (THETA)
Mr Muzi Mwandla, Executive Manager for Skills Development said THETA from the outset 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 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.
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.
The strategic objectives collectively would be taken further by fifteen programmes and over the next five years the programmes would be worth over R2 billion. It was further indicated 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. SETA planned to fund learners with bursaries and learnerships, which had never been done before.
The SETA planned catalyst grants of R1.63 billion over the period of five years, in order to fund its fifteen programmes and the programmes were going to be rolled out in all nine provinces, and in district and local municipalities.
6.2 Tourism Consultant: Transformation in the Tourism Sector
Ms Loshni Naidoo presented on transformation in the tourism sector and defined the word “transformation” in relation to tourism and said that part of transformation was reinvention, and new ideas and policies which embrace change. Youth had a major role to play in the development in the tourism industry. Government should work closely with private sector and create growth opportunities. She questioned whether the current infrastructure was sufficient to cater to the need of visitors.
Definition of transformation and tourism to comprised of an important relationship between many interrelated sectors, industries and resources and their end users. 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.
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. Domestic tourism needed to be made more attractive as means of promoting the industry. The issue of rising tariffs had a negative effect on domestic tourism. She also encouraged the development of high-speed bullet trains in between cities and provinces.
To transform tourism in South Africa there would have to be changes to the existing methods. 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 should be taken into consideration.
Presented in depth of the various tourism types, by giving 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.
6.3 University of Johannesburg
Ms Petronella Swart gave a brief on “The development and validation of a Service Quality Scorecard for the South African Business tourism Industry.” She said could not make her presentation available in writing, as then it was still part of an ongoing research project. She outlined the key points of developing scorecards for the industry and said that service excellence was pivotal in developing the industry.
6.4 Khayelitsha Business Forum (Tourism Sector)
Mr Pharks Babi, Chairperson highlighted the challenges facing Khayelitsha Tourism Business Forum.
Destination marketing: there was no marketing of townships and marketing agencies were not creating access to market for townships products and destinations, for example Cape Town Tourism. Township tours are marketed as poverty tours.
Policy: interventional policy is required to narrow the gap between established and growing products.
Presentation of township destinations to international tourists / visitors: as high risk and unsafe – perception created and foretold; and poor areas and poverty stricken.
Supply Chain Management: no local suppliers considered even for event activities occurring in townships. Township Establishments Owners do not understand decisions that support procuring non-local suppliers when capacity is available.
Tourism support structures: take too long to respond to challenges and problems facing township businesses.
7. Summit Resolutions / Outcomes
The success of the Summit was evident through the full participation of various stakeholders within the tourism sector. The Summit provided a platform where stakeholders shared their success stories and discussed challenges regarding access to the tourism market. Government provided information about its role within the sector and the opportunities ahead were discussed. The Summit resolved the following:
7.1 Government should ensure that South Africa further asserts its influence on international organisations. There is a need for the collation of efforts between government and the private sector to avoid operating in silos.
7.2 Tourism stakeholders need to be registered on a National database. This database will list all the businesses in the tourism sector and will allow proper management of the sector, ensure dissemination of information with ease and raise standards with the aim of achieving excellence. The different stakeholders advocated the development of a Tourism Task team, to be formed from the different stakeholders in the tourism industry.
7.3 Communication about tourism-related issues needs to be broadened in order to reach a larger audience, and community radio stations are to be used to reach previously disadvantaged communities.
7.4 There was an outcry about the lack of development and promotion of cultural tourism, the maintenance of cultural and heritage sites. This should be carried out by the Department in collaboration with the Department of Arts and Culture. There is a need to have a single coordinated approach to the management, maintenance and promotion of sites that have cultural significance.
7.5 The role of mining and its effects in communities where there are heritage sites of world significance were noted, and a recommendation was made that communities that are the immediate beneficiaries of those sites need to be included in the decision making processes. Furthermore, tourism infrastructure development around those areas should be facilitated for the benefit of those communities.
7.6 The assistance provided to Small, Medium, and Micro Enterprises (SMMEs) needs to be broadened to include women, people with disabilities, and young people. However the approach should be changed in order to assist people in concretising their business plans as well as identifying business opportunities. The disability SME fund needs to be properly marketed to reach a larger audience. Conditions were not amenable for new entrants to the Sector and this shortcoming requires urgent attention in order to promote growth in the industry;
7.7 The grading system has not proven to be consistent countrywide, thus the whole process needs to be revisited. The committee is encouraged by the introduction of Grading Criteria which are globally recognised and credible to visitors and stakeholders and roll-out the grading the process using the IT infrastructure to improve the integrity of the grading process.
7.8 The marketing of rural products has been overlooked and there is a need to include rural products when marketing South Africa. For example, South Africa’s ethnic groups and their different belief systems need to be included in marketing as is popularly done with the Masai tribe from Kenya. The product offers should also include the rural/ traditional experience of South Africa.
7.9 Air travel, especially domestic and to African destinations should be made more affordable by promoting air liberalisation.
7.10 The airlift strategies need to be revisited and the issue of air liberalisation also needs to be ascertained in order to achieve affordable air travel.
7.11 There was a need to further engage established businesses to mentor and partner with smaller businesses. Such partnerships will assist in bridging the gap in the sectors, transform the industry as well as contribute to rural tourism development. The Public/Private/Press Partnerships should be continuously encouraged.
7.12 There is a need to assist local agricultural/food supply chain businesses in respective areas for them to be able to benefit from the developments (Guesthouses, Hotels and lodges) around their respective communities. There is a need for a collaborative effort between agriculture, rural development and tourism regarding environmental issues with the aim of reducing the carbon “footprint”. Further research needs to be conducted in this field.
7.13 There is a need for further research on health tourism, niche products in the tourism sector, the 2010 FIFA World Cup legacy and the way forward. This will create a knowledge base for the Department and can be used to further growth and development. There is a need for the department of Tourism to work together with the Department of Health in the field of health tourism in order to develop a health tourism strategy.
7.14 The slow pace of transformation in the sector is a serious challenge. As a consequence of the slow pace of transformation, those previously marginalised have been further marginalised. To address this, the Department needs to clearly outline the challenges and the progress made thus far, and then map a way forward.
7.15 There is a need for good labour practices to be followed by businesses in the sector considering the move towards the employment of foreign nationals in order to evade good labour practices as this is resulting in a high unemployment rate and the exploitation of these individuals.
7.16 The promotion of domestic tourism should continue, but further, there is a need to look at the issue of differential pricing of attractions for locals. In India, for example, national attractions are priced differently for citizens and international tourists.
7.17 The Department should ensure full benefits for communities where projects unfold, be it infrastructural or event type. Also, the procurement policies and procedures should be aligned in a way that clearly identifies the preferred bidder’s social responsibility programmes. Tender processes should be accessible to everyone.
7.18 The continued use of consultants even in cases where municipalities have the capacity should be discouraged and further investigation of this practice should be commissioned. There is a need to encourage the use of community members who are trained by the relevant municipalities.
7.19 The Department and institutions of higher learning are encouraged to collaborate in research production to achieve better quality and more targeted results.
Although the Declaration was not finalised however, the summit has provided a foundation for further dialogue that will ultimately contribute to the development of the sector, thus ensuring that there is inclusive growth, enabling poor communities to benefit from government initiatives. There is a need to promote summits, but also to be very active in the implementation of the resolutions as time is not on the side of the tourism sector. In this way, the sector will be able to fully contribute to the fight against unemployment, by producing sustainable jobs which are governed by good labour practices.
Report to be considered.
1. Apartheid Museum
2. Gold of Africa Museum
3. Chief Albert Luthuli Museum
4. Nelson Mandela Museum
5. Robben Island Museum
6. Iziko Museum
7. National Arts Council of South Africa
8. South African Heritage Resource Agency
9. Eastern Cape Parks and Tourism Agency
10. KwaZulu-Natal Tourism Authority
11. Mpumalanga Tourism and Parks Agency
12. North West Parks and Tourism Authority
13. Northern Cape Tourism Authority
14. Free State Development Cooperation
15. Limpopo Development Enterprise
16. Cape Town Tourism
17. Gauteng Tourism Authority
18. South African Airways (SAA)
19. South African Express
20. SA Airlink
21. Airports Company South Africa (ACSA)
22. Standard Bank of South Africa
23. Development Bank of Southern Africa (DBSA)
24. National House of Traditional Leaders (NHTL)
25. South African Local Government Association (Salga)
26. South African National Civic Organisation (SANCO)
27. South African Non-Governmental Organisation
28. Federated Hospitality Association of Southern Africa (Fedhasa)
29. Federated Hospitality Association of Southern Africa (Fedhasa Youth)
30. Black Management Forum (BMF)
31. Industrial Development Corporation (IDC)
32. Independent Development Trust (IDT)
33. Ithala Development Finance Corporation Limited
34. Khula Enterprise Finance Limited
35. National Empowerment Fund (NEF)
36. South Afrcan National Parks (SANParks)
37. South African Tourism (SAT)
38. Tourism Grading Council of South Africa (TBCSA)
39. Southern Africa Tourism Services (SATSA)
40. Small Enterprise Development Agency (SEDA)
41. Tourism, Hospitality & Sport Education & Training Authority (Theta)
42. Tourism Business Council of South Africa (TBCSA)
43. Finance and Fiscal Commission (FFC)
44. Fair Trade in Tourism South Africa
45. Association of South African Travel Agents
46. Southern African Association for the Conference Industry
47. National Council of Provinces (NCOP)
Day 1, Monday, 28 February 2011
1. Mahlangu, M.J. Chairperson: National Council of Provinces
2. Van Schalkwyk, M. Minister of Tourism
3. Makhubela, L.M, Director General: National Department of Tourism
4. Morobe, M, Chief Executive Officer: Tourism Business Council of South Africa
5. Levin, R. Director General: Department of Economic Development
6. Lehohla, P. Statistician General: Statistics South Africa
7. Ndima, V. Acting Deputy Director General: Department of Arts & Culture
8. Hansby, R. Deputy Director General: Department of Cooperative Governance & Traditional Affairs
9. Makgothi, T. Acting Deputy Director General: Department of Trade & Industry
10. Patel, J. Acting Chief Director: Department of Transport
Day 2, Tuesday, 1 March 2011
11. Cloete, D. General Manager: Cape Town International Airport (ACSA)
12. Themba, E. Senior Manager, Government Sales: South African Airways
13. Swart, K. Cape Peninsula University of Technology
14. Knott, B. Cape Peninsula University of Technology
15. Dungan, B. Chief Executive Officer: Fedhasa
16. Hobbs, P. Council for Scientific and Industrial Research: “Environmental effects of mining.”
17. Gwegweni-Tsoka, J. University of KwaZulu-Natal: “Health tourism”.
18. Rogerson, C. University of Johannesburg
19. Mwundla, M. Executive Manager for Skills Development: Theta
20. Naidoo, L. Tourism Consultant: Transformation in the tourism sector
21. Swart, P. University of Johannesburg: “Development and validation of a Service Quality Scorecard for the SA Business Tourism Industry.”
22. Babi, P. Chairperson: Khayelitsha Business Forum
 Department of Trade and Industry (2009).
 Footprint – concept by Prof Rogerson relating to the transport of food from rural communities to the fresh produce market in Johannesburg then back to the same communities (Lodges, Hotels) after being bought through intermediaries.
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