Domestic Tourism: National Department of Tourism briefing

Meeting report

Domestic tourism growth strategy
The National Department of Tourism (NDT) briefed the Committee on its Domestic Tourism Growth Strategy. The delegation comprised of Mr Victor Tharage, Acting Director General; Mr Soza Simango, Director: Leading Niches in Gauteng Province, North West Province and Northern Cape Province; Ms Lydia Mbonde, Director: Monitoring and Evaluation; Ms Kholadi Tlabela, Director: Research; and Ms Petra van Niekerk, Parliamentary Liaison Officer: Office of the Director General.

Mr Tharage undertook the briefing. Domestic tourism covered travelling locally with the purpose of visiting friends and relatives or for religious, business, holiday and medical purposes. SA Tourism and StatsSA did two surveys on domestic tourism. The surveys differed in sample, scope, variables and the period of the surveys. Some of the problems relating to domestic tourism were highlighted. Domestic trips had been on the decline from 2009 to 2013. The number of domestic travellers had also been on the decline for the same period, with the exception of 2011. There was also a decline in the contribution of domestic tourism to internal tourism expenditure from 58.9 % in 2011 to 57% in 2013. The top five reasons for not travelling were affordability, no reason to travel, time constraints, no income/unemployed and a dislike of travelling. There was also a lack of a culture of travel amongst South Africans especially the previously disadvantaged, due to limited marketing, limited product development and no diversification. Consideration should have been given to geographic spread and the seasonality of the broader domestic market. Other problems included limited resources dedicated to tourism. More focus was on marketing than other elements such as limited capacity and access. To make matters worse there was limited domestic tourism research. There was also the under utilisation of some existing products and limited tourism capacity at local government level. Investments in domestic tourism were not linked to demand. Furthermore there was limited domestic packaging and inadequate attention paid to the issue of affordability. Factors that affected domestic tourism were competition, economic trends, tourism markets and industry trends, technology, the natural environment as well as social and cultural trends.

The Committee was provided with specifics on the Domestic Tourism Growth Strategy. Indicators used and targets set were also elaborated upon. Detail was provided on the implementation of the Strategy as it related to increasing revenue, increasing volume, addressing seasonality and geographic spread and to instil an affinity to travel amongst South Africans. Key success factors identified were strong partnerships and collaborative initiatives between the public and private sectors. Effective packaging was done to ensure competitive pricing. Other success factors were access to information, ease of purchase, and quality travel experiences in line with target market needs. Affordable, safe and convenient access was also ensured amongst various transport modes. There was increased access to affordable tourism facilities to more South Africans. Increased awareness of domestic tourism was ensured by way of rollout of domestic tourism campaigns. Focused research on areas with high potential was undertaken. The role of platforms such as travel agents, banks, websites, retailers, mobile phones, etc had been recognised. There was greater collaboration for collection and sharing of information for statistical purposes. The strategy ensured a monitoring, evaluation and reporting mechanism was in place

Discussion
Mr J Vos (DA) congratulated Mr Tharage on his appointment as Director General of the NDT. He pointed out that the briefing did not provide the Committee with new information as much of the information had been presented in previous briefings. The Committee needed to be informed on what was being done at present to boost the Domestic Tourism Growth Strategy. Actual domestic tourism figures were below targets and were decreasing over the past few years. Challenges such as affordability of domestic tourism had been cited before as well. Tourism was outperforming other industries such as mining in SA. There seemed to be a failure to boost domestic tourism. Domestic tourism could be an incubator for job creation. The barriers of entry for domestic tourism were also low, yet the domestic tourism market was not being tapped into.  Affordability; information and geographic spread were challenges that needed to be contended with. Of interest was the fact that arrival figures in Cape Town had increased. There were increases in numbers in some markets. He emphasised that there was a need to focus on rural tourism. He suggested that the NDT should focus on themes and come up with strategies for each theme. Possible themes could be adventure tourism, cultural tourism, business tourism and leisure tourism. Affordability of domestic tourism was a big issue. It cost a family of four R900 to visit Robben Island. The NDT had to work with government departments to try to make domestic tourism affordable. Discounts and possible free entry should be considered at heritage and other sites of national interest. Table Mountain offered you free entry on the month of your birthday. Not much had been done to make accommodation more affordable. There were 700 state/provincial/municipal resorts scattered all over SA. These needed to be revitalised and used as they had fallen into disuse. Ex-Minister Marthinus van Schalkwyk had commissioned a study to look into the issue of these resorts. He stated that he had asked the NDT to provide him with the study. He was aware that SA Tourism was responsible for product development and marketing but felt that the Department should play a more aggressive role. Accessibility was a problem because the average South African was not aware of the value of tourism.  Some Social Responsibility Implementation (SRI) projects worked well whilst others did not, and some were even in a failed state. He suggested that the NDT needed a relook at the SRI model. There had to be a total rethink. Affordability was considered the biggest challenge. There had to be cheaper air flights, trains, buses etc. Accommodation in small towns also had to be affordable.

Mr Tharage conceded that change was needed on domestic tourism. He was aware that there were many hands working on domestic tourism. The different efforts needed to be channelled. Every province was working on domestic tourism. The NDT was trying to balance time and progress made. There had to be an enhancement of intra provincial marketing efforts, and intra provincial visibility was needed. Efforts were coming from different corners of SA to position domestic tourism. The Department of Science and Technology had the Square Kilometre Array Project that school and university groups visited. The problem was that in the surrounding area there was nothing else. Food, accommodation and other activities should be on offer. He conceded that some SRI projects had not yielded what they should have. The good projects needed to be separated from the bad.  The good projects needed to be marketed. On the SRI projects with challenges, forensic reports had been done. Where certain projects needed to be handed over to the South African Police Services (SAPS) it would be done. The NDT had re-engineered the methodologies that they were using on Expanded Public Works Programmes (EPWP). The Department was working on projects to create a new beachfront presence, and the private sector was being taken on board. The NDT was engaged on quite a few things. On Small Medium Micro Enterprise (SMME) development the NDT was reviewing tactics used. In the current financial year the NDT had given Tourism Enterprise Partnership (TEP) support to 100 enterprises. The NDT was also engaged in route development. In rural areas rural hotels provided information.

Mr Simango said the NDT had a number of strategies in place that covered heritage, rural areas, service excellence and niche tourism framework strategies. These strategies were as a result of recommendations made in the National Tourism Sector Strategy (NTSS) regarding the importance of domestic tourism. Over the past five years the NDT had 17 programmes to implement recommendations of various strategies.

Ms E Masehela (ANC) was pleased that the briefing had highlighted the problems that the Department faced on domestic tourism; it was a step in the right direction. It was a well-known fact that local government lacked capacity on tourism. What strategies did the NDT have in place at present to assist them? It was an issue that needed to be addressed, as municipalities were closest to grassroots level. Affordability was important but she considered knowledge to be of greater importance. There needed to be an aggressive strategy to inform people on what was on offer out there. Rural areas also had to be targeted.

Mr Simango said that the NDT had two programmes that provided assistance to municipalities. The first programme was in collaboration with the University of Pretoria on the formal training of local government persons. The second programme covered capacity building and targeted key stakeholders who played a role on community projects that were successful. Traditional leaders, councillors and even stakeholders from tourism associations were brought on board. The NDT also focussed on rural nodes. The NDT had reached 332 delegates in 2014. The Department also brought the Industrial Development Corporation (IDC), the TEP and others on board. Local government and provinces were engaged. The usual practice in municipalities if funds were needed was to take them from tourism. It was an issue that needed to be addressed. 

Ms A Matshobeni (EFF) felt the efforts of the NDT had good intentions but there was a huge vacuum. There was a need for a culture, liberation and heritage domestic tourism programme. The Department had alluded to the fact that there was limited domestic tourism research and under-utilised products. Historical, cultural and heritage landmarks should form part of the domestic tourism strategy.

Mr Tharage responded that on liberation heritage the NDT in principle did not wish to venture into the interpretation of SA’s history and liberation struggle, that fell within the mandate of the Department of Arts and Culture, not within the mandate of the NDT. Once it was there then the NDT would market it. A great deal of up-skilling was taking place. There was river rafting and there was the Vredefort Dome Experience, which was a geographical site. At the site guides needed to be trained and had to be knowledgeable.

Mr G Krumbock (DA) referred to page 7 of the briefing document, which spoke about the top five reasons for not travelling: affordability, no reason to travel, time constraints, no income /unemployed and finally a dislike of travelling. It was helpful to know the top five reasons but it would have been more useful if there were a balance between the reasons giving an indication as to which had greater impact than the others. The reasons had to be presented in order of those having the most impact to those having the least. This was important given that the number of travellers had decreased, the number of trips had decreased and the average spend had also decreased. He was amazed that the figure for the reason to travel had almost decreased by 30%. He also felt that the figure for “no reason to travel” had also increased. If people had a “dislike for travelling” this figure would remain so. On having “no income and being unemployed” in difficult times people firstly cut back on holidays. He felt the most important reason for not travelling to be “no income /unemployed”. The Committee needed to be provided with a figure on this. A comparison from five years ago until the present would be informative. The NDT was asked to comment on what it thought the impact of SA’s local economy had been on domestic tourism. Figures would be greatly appreciated. Was the economy negatively affecting domestic tourism?

Ms Mbonde spoke to the reasons on why people were not travelling. In top ranking order the first was that people could not afford to travel. In 2013 the figure had been 38% and in 2014 it had increased to 41%. The second highest was having no reason to travel, which was 20% in 2013 and 21% in 2014. The next highest was time constraints and the figures for 2013 and 2014 respectively were 17% and 19%. She pointed out that on being unemployed or having no income the figure had gone down from 11% in 2013 to 7% in 2014. Average spend had also decreased from R980 in 2013 to R950 in 2014. Number of average trips had gone up.  The survey used to obtain the figures only took into account adult travellers and did not include same day trips.

Ms L Makhubele-Mashele (ANC) said factors that also impacted domestic tourism were poverty, inequality and unemployment. Those who wished to travel or had the means to travel were sometimes were put off by the quality and value of domestic products that were on offer. Domestic products had to be made more attractive. National Treasury had ring-fenced R100m to be used to promote domestic tourism, the funds could be used to market domestic tourism but if the products out there were not attractive to those who would consume it then it was a problem.  She pointed out that the budget resorts in SRI projects were not up to standard. Some were not functional and so-called parks were simply patches of land.  She did not get a sense of what facilities were on offer in SA. She asked whether localities provided good tourism products. Some of the products that had fallen into disuse needed to be revitalised.

Mr R Cebekhulu (IFP) said under Apartheid people were not allowed to visit parks and tourist attractions. People still had the same old mind-set of not to visiting these places and should be educated.

The Chairperson addressed Mr Tharage and said that it should be part of his legacy to increase domestic tourism in SA. Domestic tourism could generate great revenue for SA and it could create employment. The culture of travel in SA needed to be encouraged. What was the NDT doing to promote rural tourism? How did the Department monitor the training it was providing to municipalities? How did the NDT ensure that it was obtaining value for money for the training that it was providing? Locals had a problem with accessibility when it came to visiting tourist attractions.  She suggested that the Department should collaborate with the Department of Transport, the Department of Arts and Culture (DAC) and the Department of Environmental Affairs (DEA) to improve accessibility. Were the Departments working together? She asked whether the NDT had the required capacity to do the work that it needed to do. Given that R100m had been ring-fenced for domestic tourism would an impact be made? 

Mr Tharage responded that the NDT did have a Rural Tourism Strategy and a Heritage Tourism Strategy that was linked to its Domestic Tourism Growth Strategy. The NDT had many plans and activities. The crux of the marketing campaign was to take into account the level of awareness and how conscious people were. He noted the comments that domestic tourism had to improve. When SA Tourism briefed the Committee it would speak in greater detail on marketing. Domestic tourism should be SA’s backbone. 

Mr Simango, on product development and working with other departments, said the NDT had a Memorandum of Understanding (MOU) with the Department of Arts and Culture. Work was being done on liberation heritage routes and at various sites. The NDT was also working with the DAC and the DEA on interpretative signage on World Heritage Sites. At present signs were being manufactured. Signage was also being provided at Robben Island. There was progress at grassroots level and it cut across various strategies.
 
The Chairperson said greater information on progress should be provided when next the NDT briefed the Committee on domestic tourism.

Committee Minutes
Minutes dated 25 June 2015 were adopted without amendment.
Minutes dated 7 and 14 August 2015 were adopted as amended.

Tourism Indaba Report 2015
The Committee adopted its Tourism Indaba Report 2015.

The meeting was adjourned.