TOURISM GAME CHANGERS 27 November 2019
“ Tourism is another area which provides our country with incredible opportunities to, quite literally, shine. Tourism currently sustains 700,000 direct jobs and is performing better than most other growth sectors. There is no reason why it can’t double in size. We have the most beautiful country in the world and the most hospitable people. This year, we will enhance support for destination marketing in key tourism markets and take further measures to reduce regulatory barriers and develop emerging tourism businesses. We call on all South Africans to open their homes and their hearts to the world .” President Ramaphosa 2 7
MTSF Priorities for 2019 - 2024 The seven priorities are Industrial policy for inclusive Tourism Targets for the MTSF economic growth – 7 National Priority Sectors 1) Industrial Sector • Tourism has been identified as a Priority 1: Economic • Automotives Transformation and Job Creation priority sector in the industrial • Clothing, Textile, Leather and Priority 2: Education, Skills and strategy. A comprehensive masterplan Footwear Health is being developed for the sector. • Chemicals and Plastics • Within the context of both the State of • Energy (Includes, gas, Priority 3: Consolidating the Social renewables/green economy, Wage through Reliable and the Nation Address (SONA) and the etc.) Quality Basic Services Industrial Strategy the following high • Steel and Metal Fabrication Priority 4: Spatial Integration, level indicators will be monitored: 2) Tourism Human Settlements and Local 1) International Tourism Arrivals 3) High Tech Sectors • ICT and Software Production Government 2) Total Tourist Foreign Direct Spend • Digital Economy Priority 5: Social Cohesion and 3) Length of stay by international • Health Economy Safe Communities tourists • Defense Economy Priority 6: A Capable, Ethical and 4) Domestic holiday trips 4) Agro-Industry 5) Direct contribution to the Gross Developmental State 5) Mining and beneficiation Domestic Product (GDP) Priority 7: A better Africa and 6) Oceans Economy 6) Direct contribution of tourism to 7) Creative Industries World job creation 3
Why tourism matters • Tourism is one of the best performing economic sectors & strategic pillar of SA’s Economic Diplomacy as recognised by DIRCO. • Has the potential to address the triple challenges of unemployment, poverty and inequality through the creation of decent jobs. • A foreign exchange earner and contributes towards the balance of payments • Provides the provision of economic opportunities for women and youth and support the developments of SMMEs • Provides the opportunity to stimulate economic activity in rural and township areas • Supports NDP’s economic policy objectives for a more diversified economy Source: UNWTO • Has multiple linkages with other sectors of the economy and generate significant multiplier effects • Tourism is not only important for economic reasons but has potential to foster social cohesion , in particular domestic tourism 4
Branch: TRP&IR Source: South African Tourism 5
Branch: TRP&IR 6 Source: South African Tourism
The value of tourism in comparison to other sectors 7
Value of tourism Sustainable contribution to economic growth and job creation • more than 10 472 105 million tourist arrivals in 2017 (1.8% increase) • contribution to the economy was 2,8% (R130.3 billion) • 4,5% (722 013 individuals) of total workforce in South Africa worked in the tourism sector in 2017 10
The tourism value chain 9
Policy and Legislative Mandate • Tourism is a concurrent function for all three spheres of Government. At a National level, the Department of Tourism came into existence in 2009. • Overall legislative and policy direction for the Department of Tourism is provided for in the Tourism Act,2014 (Act No 3 of 2014),the National Development Plan (NDP) and the National Tourism Sector Strategy (NTSS - 2017) • The Department’s mandate is to grow tourism to and within South Africa such that: • Its contribution to the Gross Domestic Product (GDP) and the economy is increased. • Its contribution to job creation in South Africa is increased. • Economic participation in the sector is inclusive. • Enjoyment of tourism is shared by all South Africans. • Quality tourism products and services are promoted. • The practice of responsible tourism is promoted. SECRET 10
Policy and Legislative Mandate (cont) 2015 • Tourism Codes of 1996 • 2019 • Good White Reimagine Practice 2017 • Paper on d 2011 • on Broad National 2019 • the 2014 • 2018 • Industrial National 2013 • Based Tourism Tourism Developm Tourism National Policy Tourism National Black Sector Draft Bill ent and Act, 2014 Grading cites Sector Developm Economic Strategy open for Promotion (Act No 3 System for Tourism as Strategy ent Plan Empower (revised public of Tourism of 2014). Tourism one of ten (NTSS) ment from comments in South key (Amended 2011) Africa, priority Tourism B- 1996 areas BBEE Sector Code) SECRET 11
The National Development Plan and T ourism An inclusive and integrated Increasing exports Regional economic integration rural economy • Focusing on those areas • Can boost economic growth • Developing industries such where South Africa already in all countries in southern as agroprocessing, tourism, has endowments and Africa. The region has grown fisheries and small comparative advantage, such rapidly over the past decade, enterprises where potential as mining, construction, mid- with strong performances in exists. Rural economies will skill manufacturing, minerals, agriculture, be activated through agriculture and agro- telecommunications and improved infrastructure and processing, higher tourism. service delivery, a review of education, tourism and land tenure, service to small business services. and micro farmers, a review of mining industry commitments to social investment, and tourism investments By 2030 to 1) Eliminate income poverty – Reduce the proportion of households with a monthly income below R419 per person (in 2009 prices) from 39 percent to zero and 2) Reduce inequality – The Gini coefficient should fall from 0.69 to 0.6. 12
The National T ourism Sector Strategy (NTSS) - Overarching goal and five strategic pillars Inclusive and • Effective Marketing Quality • Facilitating Ease of Access Growth of the • The Visitor Experience South • Destination Management African • Broad Based Benefits T ourism Economy 13
Overarching goal and five strategic pillars • Winning campaigns to attract international and domestic tourists • Improve market and segment prioritisation • Enhance effectiveness of international marketing Pillar 1: Effective Marketing • Expand and improve domestic marketing activities and travel facilitation programmes • Establish effective brand management of the South African Tourism brand • Hosting of events to improve seasonal and regional spread of tourism benefits. • Removing barriers that limit the ability of potential international tourists to travel to South Africa • Facilitate increased travel through the application of a tourist friendly visa regime and automated passenger Pillar 2: Facilitating Ease of Access movement and monitoring systems • Improve airlift access, particularly for priority markets • Enhancements to all elements of the visitor experience • Upgrade experiences at World Heritage Sites • Enhance local destinations through cleanliness, aesthetics, and information improvements • Provide tourism experiences and facilities that cater for domestic market segments Pillar 3: The Visitor Experience • Increase bandwidth to support tourism • Enhance tourist safety and support • Facilitate tourist travel through improved private and public transport for tourists • Improve tourism skills and service excellence • Activities and relationships critical to destination competitiveness • Improve the focus and delivery of tourism marketing and development support provided by provinces and local government. Pillar 4: Destination Management • Improve the quality of decision making, planning evaluation and monitoring in tourism • Improve understanding of and enhance support for tourism across national government departments •Introduce best practice approaches and risk management tools to enhance industry’s performance • Strengthen the realisation of broad based benefits from tourism • Achieve Broad Based Black Economic Empowerment (B-BBEE) targets Pillar 5 – Broad Based Benefits • Support sustainable Enterprise development • Expand benefits of tourism to rural areas 14
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