Department of Tourism Quarter 2 2023/24 Performance

Meeting report

Briefing by the Department of Tourism (DT): Quarter 2 2023/24 Performance
Ms Rhulani Ngwenya, DDG: Corporate Management, reported this programme achieved 69.23% of its targets in the second quarter. Payments of all compliant invoices were paid within 30 days. About 99.71% of all compliant invoices received were paid within 30 days. The shortfall was due to the delay in receiving supporting documents (VAs) and invoices from the finance unit. As a corrective measure, non-compliance letters and warning letters were issued to officials who did not comply/caused the delay. Weekly reporting on status of invoices has been institutionalised.

Consultation has been undertaken with branches on the draft Public Entity Oversight Framework. Consultation with branches on the draft Public Entity Oversight Framework was not undertaken. The target was not met due to increased workload in quarter two. As a corrective measure, consultation would be undertaken in the third quarter. Regarding the maintenance of vacancy rate below eight percent, the vacancy rate rose to 9.3%. The rapid exit of employees led to a high turnover rate which has been contributing to a higher vacancy rate. Vacant SMS posts in human resources management have been prioritised to drive the recruitment process. The prioritised list with motivation in accordance with cost containment measures was finalised for submission to DPSA for approval.

The SMS (senior management) women representation has been maintained at 48.8% against a target of 50%. There were nine vacant SMS positions. The Department has nine vacancies (five directors and chief directors), and seven positions have been ring-fenced as equity positions to achieve the 50% female representation. All of quarter-two targets of Communication Implementation Plan were achieved.

Ms Aneme Malan, DDG: Tourism Research, Policy and International Relations, stated that this programme achieved 84.62% of its targets in the second quarter. The Terms of Reference for the development of the National Tourism Statistics Plan were finalised. The Draft Terms of Reference (TORs) have been developed and consultations on the draft TORs commenced with members of the Provincial Tourism Statistics Committee (PSTC), whose members include officials from provincial departments and marketing agencies. Further consultations with other key tourism stakeholders, including the industry, would be conducted to finalise the TORs, which would inform the development of the National Tourism Statistics Plan.

The BRICS Tourism Senior Officials and Ministers Meeting focusing on sustainable and inclusive tourism recovery was hosted. The Hosting of the BRICS Tourism Ministers Meeting was postponed due to the lack of confirmations from BRICS countries regarding their attendance at the meeting. The pilot plan for the Tourist Guide Information System was implemented. The pilot plan for the Tourism Skills and Employment Portal was implemented.

The underspending was largely due to reduced transfer payments to the SAT as the information submitted by the entity indicated its requirement was lower than originally projected. The second quarter funding tranche has not been transferred to SAT until the appointment of the SAT Board was finalised and key vacancies at the entity were filled.

Ms Shamilla Chettiar, DDG: Destination Development, stated accumulative targets for quarters one and two were exceeded. This programme achieved 87.5% of its targets in the second quarter. The Work Opportunities (WO) target of 1 439 was not achieved; 475 WO were realised in the second quarter. However, in the first quarter, the WO target of 642 was exceeded with the actual achievement of 1 676 WO. At the end of quarter two, the cumulative target of 2 081 WO (642 + 1 439) for the first two quarters was exceeded, with the actual achievement being 2 151 WO (1 676 + 475).

Six tourism concepts were incorporated into the Eastern Seaboard Development and Karoo regional plans. The implementation of 29 community-based Tourism Projects was monitored and supported. The concept for investment promotion platform was finalised. The Quarterly Report on the management of a pipeline of nationally prioritised tourism investment opportunities was developed.

Underspending was mainly due to slow spending within the Expanded Public Works Programme (EPWP).
Ms Mmaditonki Setwaba, DDG for Tourism Sector Support Services, stated this programme achieved 75% of its targets in the second quarter. The Business Advisory Services focusing on the Homestay Pilot Programme has not been implemented. The Homestay Pilot Concept document has been submitted and is waiting for approval. As a corrective measure, clarification of matters emanating from the concept prior to approval thereof. The implementation of Resource Efficiency Cleaner Production (RECP) Training and Business Support Programme has not been implemented. There were delays in the appointment of service provider. The Departmental Bid Adjudication Committee (DBAC) did not approve the recommended service provider. The process has been re-started, and the process of appointing a service provider was underway.

The report on implementing the Tourism Monitors Programme (TMP) was developed. However, the programme was not implemented. Supply chain processes have not yet been concluded. The recruitment and selection would be conducted in the month of November, with final placement possibly taking place around mid-December 2023. A total of 1 695 unemployed youth were trained on norms and standards for safe tourism operations. The Joint Tourist Safety awareness session was conducted from 29 August to 01 September 2023 in the Eastern Cape.

The recruitment of learners for the RPL process was conducted. There were delays in the appointment of the service providers for both KwaZulu-Natal and Western Cape provinces due to the lack of suitable service providers. The appointment of service providers has been finalised. The selection and induction of learners were planned to be concluded during October 2023 for both provinces. The call for applications was advertised. The delays in tender finalisation were due to tender processes that had to be followed during quarter two regarding recruitment and induction of learners.

Underspending was mainly due to slow spending within the Tourism Incentive Programme.

(Tables and graphs were shown to illustrate budget allocation and expenditure)

Discussion
Ms L Makhubela-Mashele (ANC) remarked targets for EPWP in programme three were not achieved during quarter two but would be exceeded in the next quarters. She then asked what informed the Department to set targets that were not going to be achieved and why annual targets were not made instead of quarterly ones to ensure the programme runs throughout the quarters, as most people depend on the EPWP. She further commented targets were not met in the Tourism Monitors Programme (TMP) and noted the country was suffering due to high unemployment rate, and the programme was seen as a low-hanging fruit and hope for many young people. She wanted to know what systems were in place to ensure the targets were met because there were no warm bodies there.

Ms Setwaba, on the Tourism Monitors Programme, stated the procurement process has been processed and taken through for evaluation and final decision. Unfortunately, there were irregularities identified. None of the bidders could come up with the specified required modules. The youth register programme identifies young people for relevant work opportunities. Hopefully, the tender would succeed this time and a service provider would be appointed by December 2023.

Ms Chettiar said that reasons for non-achievement in quarter two were related to TMP. Even if there were delays in the programme, the programme would still continue to run for a year and all work opportunities would still be there.

Ms H Ismail (DA) asked if the Department was working with TVET colleges on Recognition of Prior Learning (RPL) to ensure access to youth. She wanted to find out what has been put in place to ensure there was compliance with regulations and consequence management was carried out. She also enquired why the Department did not renew contracts in time to ensure opportunities were not missed. She wanted to understand what the timeframes were with DBSA-led projects. Lastly, she wanted to establish how delays in grading have impacted on SMMEs.

Ms Setwaba said that the Tourism Support Grading Programme was meant to provide incentives to SMMEs for membership. The SMMEs were saying they were experiencing a decline. They have been called to quantify areas where they were experiencing a decline. An MOA has been put in place for the implementation of the programme. Also, she said there were consequences for irregularities identified in the procurement, but she was not sure if the investigation was completed and if the outcome was submitted to the DG.

Ms S Xego (ANC) remarked that it appeared there was no balance between the targets and programmes of the Department and asked if these targets were audited to talk to the programmes to ensure proper outcomes. This was an indication the Department was planning for failure. She wanted to understand if posts were going to be filled, given there has been a moratorium from National Treasury. She suggested interventions to correct non-achievements should be stated in the report, and asked if the AG could not audit the targets.

Ms Ngwenya explained that when the circular from National Treasury came, there were 30 positions advertised and were at various stages. In some, interviews were conducted and shortlisting done already while in others the department was waiting for clearances. All of them were suspended. When motivations for the advertised posts were submitted to DPSA. The DPSA stated that the advertisements advertised before the circular from National Treasury was released should be finalised. And that has been what the Department has been doing while it has been waiting for concurrence from the Minister of Public Service. The Department had a recruitment plan before the circular was issued. The Department was now in the process of revising the plan to fast-track appointments in the next quarter. The emphasis is that things are a little bit slower on HR because there were two vacancies in that unit of the Department. On interventions required, she stated that an assessment template is used when programmes are delivered. The reports are submitted to the branch responsible for quality assurance and control. It then provides an analysis of the information that it has been given to confirm achievements. Some of the non-achievements represent targets that were not achieved but there was some significant work done or an effort to achieve it. The matter just lies in the phrasing of it. If one looks at significant work, one would find that, in some instances, it is an area where one missed a target by a point or two, although work has been done.

Mr Itumeleng Rabotapi, Director: Strategy Management, Monitoring and Reporting, stated that the AG has always been invited to do value add before performance plans are submitted to the Minister and audit process. The AG uses tools for APPs and strategic plans and uses the framework for programme performance information. Also, there are criteria for the application of the indicators. If there is a finding, that finding would be raised with the Department for correction. The AG then verifies the approvals.

Mr K Sithole (IFP) asked what the impacts were on the non-achievement in the recruitment, selection and induction of learners for the RPL process. He asked why there were delays. He asked the Department to give indications of where rural and township tourism activities were happening exactly. He sought clarity on why the SAT (South African Tourism) was achieving 0% on people with disability targets, whereas the Department recorded 4.5%. Lastly, he asked if any systems were in place to deal with underspending.

Ms Malemane Maponya, Chief Financial Officer, about township and rural tourism, stated that bid proposals had been closed and details would be provided to the Committee once adjudication was finalised.

Ms Ngwenya said that 21 employees belong to the category of people with disabilities. They represent employees across different occupational bands, up to chief director level. The Department was sitting at 4.5 %. The SAT would answer for itself when it appears before the Committee.

Ms Setwaba said that service excellence activities were held in the uKhahlamba District Municipality last year, and this year were held in Free State. A decision was made to move out of small towns to townships. She also stated delays were a result of two bids that were not completed.

Mr M De Freitas (DA) remarked the focus on EPWP has been to develop tourism where it is needed the most to ensure people in townships and rural areas have opportunities. Nothing has been done to educate people about home tourism, and he asked what would be done in that regard, going forward.

Ms Chettiar said that the work done in planning and community projects has been to identify new projects to diversify the current ones for the benefit of townships and rural areas. The work does target development in those areas.

Ms Setwaba said that homestays have been part of incubation. There was a need to ensure that these would be sustainable. There should first be attractions around the homestays.

Ms S Maneli (ANC) wanted to understand if the 1695 unemployed youth trained and placed with host employers were the same people as those trained on norms and standards. She asked who the stakeholders who participated in the Joint Tourist safety awareness session in the Eastern Cape were.

Ms Setwaba stated that it was the same number of people for training on norms and standards. Norms and standards training was not the kind of training that could equip the youth to participate fully in the sector, but it has been part of the recovery plans. She said the stakeholders that were participating in the joint tourist safety programme came from the SAPS, law enforcement agencies, tourism associations, etc., and were promoting the issues of safety. Planning campaigns would be rotated in four programmes.

Ms P Mpushe (ANC) enquired what the challenges were in the SCM unit of the Department and what has been done to officials responsible for delays in procurement. She asked if there were any partnerships with institutions of higher learning regarding RPL. She sought clarity on the public owned tourist attractions.

Ms Setwaba stated that there were chefs who were experienced but did not have the necessary qualifications. The Department was charged with the responsibility of training and certifying those chefs, and this has resulted in the upward progression in their careers.

Ms Maponya said that SCM challenges were on TMP and RCE.

The Chairperson remarked that Members had raised the same questions asked in the previous meeting. The Committee expected something new from the presentation. There was no indication of the contributions made by the Members in the previous engagement, regarding matters dealing with mitigations on underspending, for example. She stated that it was not justifiable for projects with a July deadline, but were now expected to end around November/December. This did not make sense at all. The Committee expected to be told the projects have been completed. She then wanted to know what the rationale was behind the non-completions of projects. The Committee needs deliverables. If, for example, a project has been completed, the Committee has to be informed if the project has been handed over to the municipality or to its beneficiaries.

Ms Chettiar said that the report was different from the quarter one report. The quarter two report was an updated progress report as at the end of September 2023. Regarding infrastructure, she explained that when projects are started, the production dates might change if there are challenges on the ground. The start date and end date would remain the same. The final completion certificate always states all the challenges have been addressed. The reporting would indicate where challenges have been. During quarter two, they finished all 16 infrastructure projects. In the next meetings, all the timelines for the projects would be outlined in the reports.

Ms M Gomba (ANC) asked if it was possible for the Department to change its template to reflect what has been achieved and what has not been achieved.

Ms Chettiar indicated they have tried in the annexure to explain performance per project but the reporting would be improved. The report provides the start and end date for the construction and where it is currently. There are catch-up plans for the projects. The reporting would be improved per individual project. She further said they have finalised planning documents and projection at the end of March. There is no opportunity to change on projections, but they had to work on them and report against them. That was why the reporting has been aligned in that way.

The Chairperson asked what guarantees were there. The Department would be successful this time around because the Committee suggested in the previous meeting that it should make use of the government TVET forum.

Ms Setwaba stated in the Market Access Programme they were working with SAT on trade shows to support SMMEs to exhibit in those shows. Four SMMEs would be taken to Kenya to exhibit their offerings, while the SAT would take six.

The Chairperson pointed out that, for programme two, only 11 targets out of 13 were achieved and 44% of the annual budget has been spent and underspending was attributable to transfer not done to SAT. She then asked what the correlation was.

Ms Malan stated that the money for SAT was put under Programme Two and constituted more than 90% of Programme Two’s budget.

Ms Maponya stated that under-expenditure was due to transfers to SAT. Out of the total budget of the Department, R1.3 billion is allocated to the SAT. The first tranche to SAT was R500m. In the second quarter, no transfer to SAT took place, and the money was sitting in the Department’s account as an under-expenditure because it was supposed to be transferred, but it has not been. She said more details would be provided in the meeting with the Committee.

Ms Gomba said that she was concerned about money spent on visiting the destinations and where there were public meetings, but there has been no reporting on the sites visited by the Committee. The Committee wants to know more about those destinations visited.

Ms Makhubela-Mashele remarked that the Tourism Master Plans were for five-year periods, and provinces took those plans it could develop. She then asked the Committee to be updated on where work was done and plans implemented. Regarding Budget Resorts, she commented that there were no funds to develop them from the side of the municipalities, and asked if it was possible that the budget could be found so that the Master Plans could be revived, because municipalities would do nothing to these.

Ms Chettiar stated the Master Plans were 30-year implementation plans. The Department has a masterplan for the Orange River Project and ensured its initiatives were incorporated in the DDM. Concerning Budget Resorts, she said that they have been working with properties in the pilot to ensure the facilities meet the required standards. Marketing has been done for them. More details would be provided on the masterplans and what was being done.

Mr Sithole wanted to know if the Host BRICS Tourism Senior Officials and Ministers Meetings have taken place. What was the impact of the budget? How much has been spent on these meetings?

Ms Malan said that the meetings happened during October, and the budget details for the meetings would be provided to the Committee.

Ms Gomba suggested the Committee should be given a list of projects done by DBSA and those done by the Department, including status and reasons for delays.

Concluding Remarks
In her concluding remarks, the Chairperson stated that the Department has committed to improving the reporting of the projects when it is going to report on its quarter three report. It would provide an outline of projects completed and uncompleted, and report progress and status quo on the sites visited by the Committee. It would further provide more details on the Master Plans in writing, and forward detailed reports on projects handed over to then DBSA and on those that were its responsibility. The Committee would like to get a report on the investigation commissioned by the AG and be given more details on EPWP and TMP.

The meeting was adjourned.