Chairperson, we look back on a year during which our country, and particularly our tourism industry, not only experienced the phenomenal success of hosting the soccer World Cup tournament, but also launched our tourism vision for 2020. As a country we had the world's eyes on us prior to the hosting of the tournament. To the credit of the entire nation, we were able to showcase the best we had to offer in the true African spirit of generosity, sharing and ubuntu. As the tourism sector we have consistently focused on leveraging the success of the World Cup towards new, shared and green growth.
Tourism's position as a sector which contributes significantly to our country's goals has been duly recognised by its inclusion as one of the six key growth pillars of the economy. The national Department of Tourism and the entire tourism industry in South Africa have made great strides in repositioning tourism and placing the necessary policy framework in place to ensure new and shared growth. I would like to take this opportunity to share with you our vision in more detail and I will do so around three themes, namely new growth, shared growth and green growth.
One of the most important building blocks we have put in place as part of our new growth plans has been the first ever National Tourism Sector Strategy, NTSS, which was approved by Cabinet on 2 March. This ambitious strategy represents our commitment to intelligent planning and policy formulation. It was developed over a two-year period in close collaboration with local and provincial government, and an advisory panel of top industry minds, representatives of a variety of professional bodies, academia, tourism marketing agencies, civil society and the broader public.
The NTSS is a document that the entire sector is committed to. We have worked hard to ensure that our ambitious targets are co-ordinated and credible. The strategy rests on three pillars, namely driving the tourism economy, enhancing visitor experiences and ensuring sustainability and good governance in the industry.
We aim to increase the number of foreign tourist arrivals to South Africa from 7 million in 2009 to 15 million by 2020, tourism's total contribution to the economy from R189 billion in 2009 to R499 billion by 2020, the number of domestic tourists from 14,6 million in 2009 to 18 million by 2020 and to create 225 000 new jobs by 2020.
To better streamline and align our efforts, our department has also undertaken a review of current tourism legislation. The Tourism Act of 1993 predates our democracy and will not facilitate the kind of growth we have in mind. We intend to table a tourism Bill in Parliament before the end of the financial year and we look forward to constructive interaction with members as we enrich it.
We will also be fostering new growth by accessing markets unlocked by the World Cup. In this context, we envisage maximising the value of our participation in a number of international and regional tourism platforms. We will seek co-operation with especially African partners in order to contribute to the economic prosperity of our continent through tourism.
The national Department of Tourism will also develop a tourism international relations strategy to tactically guide our engagements at a multilateral level, including our participation in the Brazil, Russia, India, China and South Africa, Brics, formation.
We understand that our traditional markets in North America and Europe will remain important, particularly in regard to arrivals and spend, and that that will continue to be the case for a long time. These markets will certainly not be neglected, but we will also aggressively pursue the long- term growth opportunities in, amongst others, China, India and South America but, very importantly, also in our own continent.
In regard to hedging against risks such as economic downturns, higher oil prices and currency volatility, we are carefully rebalancing our portfolio and reviewing our market segmentation and understanding of the required product diversification. This includes the mix of international, regional and domestic tourists, the spread between high-value and middle-value markets and the blend of leisure, business and events tourism. One important component of this approach is our increased focus on meetings, incentive trips, conferences and events. Business tourism has become a significant growth driver worldwide, sparking intense competition between cities and countries.
We understand that well co-ordinated bidding mechanisms are required if a destination is to succeed in this competitive environment, and this year we will establish a national convention bureau under the auspices of SA Tourism. I believe the applications for the new head of that unit closed last Sunday. It was advertised in most of the Sunday newspapers.
Another important component of our focus on new growth is air access. Prior to Cabinet's approval of a five-year airlift strategy in 2006, only about 20 airlines operated to our destination. Five years later more than 50 airlines, making around 230 000 aircraft landings and carrying about 33 million passengers a year, are moving through our 10 principal airports.
As a country we understand that we must avoid a silo approach to tourism and aviation planning. Greater convergence can in future be expected between tourism marketing plans, the role of the national carrier and priorities for international negotiations on flight routes and frequencies. As a government, we continually reiterate our commitment to the enhanced implementation of the 2006 airlift strategy decision, which is aimed at phased liberalisation of our air space with a view to boosting trade and tourism growth, and also our national development objectives.
The tourism sector therefore also welcomes the planned launch by South African Airways of a nonstop service to New York in May 2011, a direct service to China towards the end of 2011, and Air France's planned launch of a new thrice-weekly nonstop service from Paris to Cape Town starting in November 2011. The tourism sector is not only a multifaceted industry that contributes to economic growth on many levels, but also a labour-intensive industry with a significant capacity for creating jobs. This is particularly true in regard to job creation in rural areas, as well as amongst women and the youth. In addition to contributing to an environment which is conducive to the creation of decent and sustainable jobs, and I referred to our 2020 job target earlier, our department will contribute 10 270 full-time equivalent jobs in the current financial year through its social responsibility implementation, SRI, as well as the Tourism Enterprise Partnership, TEP.
The sector is also a fertile environment for entrepreneurs, as well as small, medium and micro enterprises, SMMEs. We will continue our partnership with the Business Trust to fund the TEP. It's a programme that will support about 530 small rural enterprises during this financial year.
In regard to its economic empowerment goals, our department will spend R253 million in the current financial year to fund tourism projects that are aligned to the Expanded Public Works Programme, EPWP. We believe this will assist with the transfer of wealth to poor and rural communities by, amongst others, ensuring ownership of assets and the facilitation of skills development.
Let me turn to the third theme; the interface between travel and tourism and the green economy. The entire tourism value chain will have to contribute its fair share to our country's Copenhagen commitments on climate change. This presents challenges to our industry, but also a myriad of opportunities. On the one hand, tourism is vulnerable to the impacts of climate change and, on the other, it contributes to the problem. Like other economic sectors, our sector must mitigate climate change by reducing its growing carbon footprint and we must do so in a measurable, reportable and verifiable manner.
Let me stress that carbon offsetting is not enough. We need to fundamentally change the way the tourism sector operates in a carbon- constrained world. The risk of a "do nothing" approach is that we will be burdened with stranded assets in 20 years or less from now.
Fortunately, the required transition holds opportunities for new green jobs, green entrepreneurs and green investment. A green revolution in the tourism sector could also be a catalyst for green growth in the broader economy, given its labour intensity and the multiplier effect that cascades through the entire economy.
In regard to responsible and low carbon tourism, I am concerned about the lack of harmonisation of accreditation, certification and labelling in our industry. There are some very admirable private sector and civil-society- driven efforts that have created systems of integrity. But these are in silos, and should find broader application.
This regulatory vacuum in regard to the tourism sector unfortunately creates the space for abuse and so-called greenwashing. It also does not properly reward those in the industry that do play leadership roles by investing in low carbon, ethical, clean and green tourism transformation.
If a facility states that it is carbon-neutral or committed to responsible tourism, we need to know that they apply a minimum standard that we can trust, and that our visitors can trust. It is about the integrity and reliability of destination South Africa.
We will therefore publish the National Minimum Standards for Responsible Tourism in the current financial year. These standards will deal with various dimensions of green and responsible tourism, including biodiversity conservation, energy consumption and water use, proper waste management and the mitigation of greenhouse gas emissions. I trust it will establish the much-needed minimum criteria for responsible tourism and a transparent national accreditation process for sustainable tourism certification.
However, that is only the first step. I would like us to work towards a system that will see government, the private sector and civil society taking hands and building on international and local best practice.
That balance will have to be between self-regulation, which I believe should be a large part of it, and a national system of integrity, transparency and accountability that will foster public trust and that could serve as a benchmark. However, we need firewalls. The same stakeholders cannot develop standards, be accredited certifiers, receive such certification and monitor compliance.
Our department realises that green growth in tourism is not a "nice to have", but a "must have". I am convinced that a collaborative effort will help us to close the space that exists for greenwashing and remove the confusion about what is credible and what is not. Together, we can move tourism's green and social conscience from being a hyped concept to inspiring a paradigm shift.
In conclusion, I would like to thank our Deputy Minister, Ms Tokozile Xasa, for her commitment to the portfolio and for sharing this journey with me and with our department. I would also like to thank the hon member Mr Gumede, chairperson of our committee, and the entire portfolio committee from all the parties. We respect Parliament and we respect its oversight role. Thank you also to the director-general, Mr Kingsley Makhubela, and his enthusiastic and capable team for bringing our new department so far in a very short time. Mr Makhubela, thank you for your strong leadership and vision.
I would also like to express my appreciation to the board and the leadership of SA Tourism for helping us to leverage the World Cup to lift tourism to new heights. My gratitude also goes to the board and the leadership of the Tourism Enterprise Programme for our excellent partnership. We look forward to working with you as we explore new frontiers for growth.
A thank you would not be complete without expressing the gratitude of our department towards the private sector for the constructive relationship we enjoy. Thank you to all our partners for engaging with us and for their commitment to our shared goals.
Chairperson, I understand there are high expectations for the tourism sector. I have faith that as a united front we will be able to meet and exceed these expectations. Thank you. [Applause.]
Hon Chairperson, hon Ministers, hon Deputy Minister, hon members, and all our esteemed guests, the President, in his state of the nation address, unambiguously listed job creation as the most important priority in the country. He further indicated that the New Growth Path identified tourism as one of its major job drivers. In fact, the New Growth Path has positioned tourism as a pillar of the South African economy. What is basic and fundamental is that we should have inclusive growth with decent jobs and sustainable livelihoods to combat poverty and unacceptable levels of inequality, so that we improve the quality of life for all.
Flowing from that is the mandate of the national Department of Tourism, as captured in the Estimates of National Expenditure, which is to:
Promote and support growth and development of an equitable, competitive and sustainable tourism sector, enhancing its contribution to national priorities.
Furthermore, in government's Industrial Policy Action Plan, tourism is identified as a driver of both domestic consumer spending and foreign exchange earnings, bearing in mind that this sector is key because of its labour-absorbing capacity. It can absorb unskilled as well as semi-skilled workers. As the Minister has stated, it absorbs youth and women in both rural and urban areas. What further makes it a strategic area in the economy is that it has low barriers to entry for entrepreneurs, which means it is easy for people to do business, and you don't need extra skills or a lot of capital or support from bigger businesses.
In line with the New Growth Path, this department has priorities that include increasing investment in tourism; developing infrastructure; promoting decent work; encouraging historically disadvantaged communities and individuals to enter the sector; developing partnerships with stakeholders; improving the quality of service in the industry; developing innovative, unique and authentic products that meet global market standards while ensuring value for money for consumers; and encouraging South Africans to enjoy the tourism experiences that the country offers.
We need a more aggressive promotion of domestic and regional tourism by all stakeholders. We also need further exploration of the lucrative Middle East markets. I am sure that, as we are expanding and developing priorities and partnerships, the petrodollars of the Middle East will be more tempting in our industry as well. This will stabilise the industry whenever there are global fluctuations, which are often caused by factors beyond our control and which are quite often regional.
Moreover, as a country, let us make sure that we enhance tourism that has to do with the people of South Africa and their way of life. Together with the Department of Arts and Culture, we can surely capitalise on our rich history, heritage and cultural diversity, over and above our abundantly diverse flora and fauna which form part of the beauty of our motherland.
We also have to continue to strive to bring about a perception of South Africa as a safe country, and not only in regard to criminals and thugs. Our roads have to be perceived as safe. People should not fear contracting diseases in South Africa. We should keep our cities clean. We should have proper sanitation. We should finally have good road infrastructure to tourism attractions such as heritage sites, and they should provide easy access, with adequate signage leading to them.
In Soweto this has largely been done, and it has clearly demonstrated the potential for attracting both domestic and global tourists. The Blue Bulls and their supporters fell in love with Soweto because it was clean and safe, the transport infrastructure was up to scratch, people were friendly and the attraction was great. [Applause.] This is thanks to the concerted efforts of the Johannesburg Metro and the government at all levels.
Why can't this happen in Mitchells Plain or Khayelitsha? Capetonians should try harder, for the Stormers are a great team and Capetonians are wonderful people. [Applause.]
The good work that has been done so far will definitely benefit from the introduction of the new tourism sector strategy. Thanks go to the leadership of the Ministry and the department. It is indeed a very exciting development in the industry, and we shall closely monitor its performance with interest. Having a buy-in from all stakeholders, provinces and municipalities, it seems to be a solid foundation for this concurrent sector of the economy. The strategy positions South Africa as a destination of choice, as it plans to enhance visitor experiences by markedly ensuring quality of service and striving for sustained good governance. It further focuses on the attraction of business events like expos, conferences, exhibitions and trade fairs with the establishment of the national convention bureau, as mentioned by our Minister, under the auspices of SA Tourism, which will significantly assist in attracting major events. Surely, together, we can do more.
Collaboration with the Department of Sport and Recreation, which is planned for June this year, should enhance the performance of the National Tourism Sector Strategy even more in getting bigger events to our country. The 2010 Fifa World Cup has shown that South Africa is a great country. Given a common purpose, with clear goals, we are one of the greatest achievers in the world.
However, we should not be complacent. Some of our World Heritage Sites are threatened with delisting. Delisting will erode the tourist attraction value of sites like Mapungubwe and Robben Island. To correct the problems leading to the threat of delisting is not beyond our means, but we have to get our act together as stakeholders and at different levels of government.
The committee welcomes the increase in the number of air routes to several destinations that will benefit our tourism efforts, and some of them will be opened soon. We also call for the opening up of African airline routes so as to allow for more competition and a resulting decline in airline ticket prices in order to promote regional and continental tourism. Some of the tickets to African destinations - in fact, in most cases - are more expensive than tickets to Europe! This is not acceptable, but it lies with us to strive for better prices from the airlines.
We welcome the green approach to tourism by the Minister; I think that we all need it. We also agree with the Minister that this is a "must have". It is no longer a "nice to have".
We cannot conclude without congratulating the department for having an unqualified audit report, and further welcome the fact that control systems like the establishment of an audit committee and an internal audit are in place. [Applause.] This will ensure that risks of fruitless and wasteful expenditure are minimised and problems that were experienced with the Expanded Public Works Programme, EPWP, will be eliminated.
We further expect that we shall not have funded vacancies in the department as soon as office space becomes available. We understand that this has been limited by the availability of space due to restructuring of the departments, but as soon as that has happened, we expect the department to fill all the funded vacancies.
We wish to see accelerated and inclusive growth, so that we can have more resources to address the much-needed Millennium Development Goals, MDGs, particularly in rural areas, in townships and in areas of the poor, which are a measure of an improved and more equitable growth.
In conclusion, I would like to thank the chairperson of sport and recreation for all the co-operation that we have had. I would also like to thank the chairpersons of arts and culture, transport and home affairs for assisting in making the summit on tourism a better event by their input and their insight into their fields, because tourism depends on other stakeholders, like other departments and people with other experience. The ANC supports this budget without qualification. Thank you. [Applause.]
Chairperson, former President Clinton once famously quipped: "Compared to what?" Statistics are meaningful only when valid comparisons are made. So, when we examine the growth in tourism arrivals in 2010, compared to 2009, it is appropriate also to compare that growth to international trends.
At first blush the comparison is cause for satisfaction. Tourist arrivals in 2010 grew by nearly 1 062 000, which is a 15,1% increase on the equivalent figure for 2009. This statistic seems especially encouraging when compared to the United Nations World Tourism Organisation figure, which estimates that global tourism arrivals grew by 6,7% in 2010.
The fact that South Africa's tourist arrivals are more than double the international average is a credit to the Department of Tourism and, especially SA Tourism. Each and every presentation by these dedicated officials to the portfolio committee has impressed us with the subject knowledge, transparency and far-sighted strategic planning that is demonstrated.
Tourism has been prioritised as one of the six key sectors driving economic growth in the New Growth Path. So, a closer examination of the macrostatistics and other related variables is warranted. The first task is to compare apples with apples. The 309 000 Fifa World Cup 2010 visitors were a one-off event. We must, therefore, extract these numbers from the 2010 arrivals if a valid comparison to 2009 is to be obtained. A more realistic estimate of tourist arrival growth from 2009 to 2010 would therefore be 10,7%. Given that SA Tourism attributes 4% of our growth in tourism arrivals to the World Cup and 11% to other growth, this nuanced estimate seems more reliable.
A more precise analysis of trends can also be obtained if we exclude the World Cup months of June and July 2010 and compare the remaining months of 2009 to 2010. This comparison is cause for far more sober reflection. Tourism arrivals from January to May 2010 grew by a very impressive 15,7%. Counterintuitively, our tourist arrivals grew by only 11,5% between August and September 2010, compared to the equivalent period in 2009. While it is accepted that our country would have benefited from some pre-World Cup exposure, the fact that tourism growth slowed immediately after the World Cup must be cause for concern, particularly since world economic growth - with the exception of the Eurozone - has slowly but steadily improved in recent times.
If one deducts the 4% tourist arrival growth attributable to the World Cup dividend from the growth experienced in the latter half of last year, then the resulting growth of 7,5% is very similar to average world tourism growth. The inescapable conclusion is that the only real tourism growth we have experienced was due to the World Cup, and even that is significantly less than the 6% that Germany achieved after their World Cup in 2006. Why is this so? Why, even though we have performed relatively well, are we not performing to our full potential?
The first thing we are going to have to realise, as a nation and across all party-political lines, is that we live in an age when information is instantaneous, accessible and, in many forms, cheap. Between the Internet, Facebook and Twitter there is very little - both positive and negative - that escapes the attention of people we would like to attract as tourists.
Although the tourism market in areas like Khayelitsha and Guguletu has recovered from the so-called Dewani incident, the short-term impact was severe and illustrated just how profoundly negative shocks to tourist perceptions can and do affect our local markets. Perhaps more serious and long-term damage was done by the public sector strikes which dominated media headlines in September and October last year. The damage done to our brand by these unwanted and unnecessary events is illustrated by the compelling statistics provided to us by SA Tourism.
While our brand awareness remained steady through 2010, our brand positivity dropped from 43% in August 2010 to 35% by November 2010. The number of visitors who indicated that they would like to visit in the next 18 months declined from 14% to 10% over the same period. Similarly, we were ranked the lowest amongst eight destination competitors in regard to the key brand attributes of safety and security, and well below average compared to four other competitors. As you pointed out in your thoughtful address to the tourism summit on 28 February, Minister, we can't afford to ignore the challenges posed by new technologies and the new communication media.
If we want to be globally competitive in a world of immediate communication, surely the time has come to refrain from irresponsible talk that frightens potential investors. We also have to refrain from singing songs that belong to another era and scare away potential tourists. Surely there is a better way to resolve municipal strikes than trashing our streets, which ends up on billions of television screens by the same night, causing hundreds of thousands of potential visitors to say: "Anywhere but there".
Secondly, Minister, as I have said in this House on other occasions before, it beggars belief that we would spend R43 billion to host the 2010 Fifa World Cup as a once-in-a-lifetime opportunity to decisively rebrand our country, and then make savage cuts to the very budget that is needed to market our country after the event.
Programme 3 of the budget allocated to tourism growth has increased from R659 million in 2010-11 to R694 million in 2011-12. That is a R5,37% increase in nominal terms, and only 0,55% in real terms. Quite frankly, Minister, that is never going to be enough, particularly bearing in mind what we spent to create this marketing opportunity in the first place. As the entire portfolio committee has minuted, and I quote:
The tourism budget is not adequate, and the successful implementation of the tourism growth strategy requires substantial financial resources.
As a nation, we spend just 0,1% of our GDP in total on promoting tourism, compared to 0,6% and 0,7% by Australia and Brazil respectively. With our competitors so far ahead, we desperately need government to take the lead. Unfortunately, a decisive marketing edge will continue to elude us if all we can manage is an extra 0,5%.
If we cannot extract from government the advertising budget essential to meet our objectives, maybe the time has come to be bold and ask whether the Department of Tourism should not be merged with a bigger or/and more appropriate department with greater access to funds. The excellent officials that I have referred to must, obviously, be retained, but elsewhere savings could be facilitated, synergies obtained, and additional savings ploughed into SA Tourism's marketing budget.
The third and last reason is what I elaborated on in the debate last year, namely the interdependency of tourism with other departments. Hon Gumede also referred to it. As long as tourists are disappointed because local government or the Department of Arts and Culture has failed to ensure that our heritage sites and monuments enhance our country, we are going to damage our brand.
In Gauteng the Air Force Monument has now been repaired. However, Heroes' Acre is in an even worse state of vandalism, and tourists are greeted with fibreglass busts and headless angels upon their arrival. One can only imagine what tourists must think - perhaps, to quote Dante: "Abandon all hope ye who enter here." But perhaps real hope is no more than a month away.
Helen Zille's visit to the Mpophomeni Tourism Experience on 1 April was greeted by a district council vehicle frantically sucking up solid raw sewage as she arrived. However the bug weed and filth in this and other KwaZulu-Natal Midlands areas on a prime tourism route, the Midlands Meander, grows ever higher. Congella Park in eThekwini continues to have its fence broken down and vandalised.
Historic colonial architecture, such as the Donkin Street terraced houses in Nelson Mandela Bay, has further deteriorated since the debate last year, with seven houses burnt to the ground, squatting taking place and infrastructure gutted to the extent that these historic homes have now had their doors and windows bricked up. Nearby, Nelson Mandela Bay has lost all its Blue Flag beaches. Other popular attractions like Bay World and the Apple Express continue to be run down, due to insufficient funding and discontinued subsidies.
None of these problems is new or beyond our control. All of them undermine our tourist growth, damage our brand and constrain opportunity. I have to ask, Minister: Is anybody listening? Why is it so hard to get the basics right? Why are there so many people in government, both national and local, that don't appear to care?
Please act, Minister, and please act now. The fundamentals are in place. All we need is a bit more political will.
Hon Chairperson, hon Minister and members of this House, the aim of this department is to create amicable conditions for sustainable tourism growth and development for the benefit of all South Africans. The success of the 2010 Fifa Soccer World Cup tournament has provided us with a sound basis on which to boost SA Tourism locally and abroad. The department has come a long way, but much more needs to be done to ensure that all South Africans do indeed enjoy the benefits of tourism.
With an allocated budget of R1,242 billion for 2011-12, the Department of Tourism has to contribute about R118 billion to the country's gross domestic product, GDP, by 2015. In addition, this 0,25% of the total government budget is estimated to contribute 7,7% to GDP. This is a tall order for a limited budget.
As stated time and again by this department, domestic tourism is the backbone of the sector. Yet, the department is somewhat wanting in this area. In South Africa, foreign visitor arrivals still generate a larger tourism spend than the domestic market does, and thus the dependence on foreign visitor arrivals renders the industry vulnerable.
Poor planning and co-ordination between the three spheres of government means that billions are spent without the necessary results. In addition, the lack of specific budget allocations to the development of tourism at the local government level is problematic and results in low-impact projects and unsustainable initiatives. This has to change. Nevertheless, we are glad to see that the programme on policy, research, monitoring and evaluations has received an increased budget of R26,9 million. Hopefully, more research and monitoring will lead to better performance, especially regarding domestic tourism.
A target of 225 000 jobs by 2020 has been set by the department. While tourism has great potential in regard to labour absorption, currently only 48% of citizens participate in domestic tourism. The culture of travelling in South Africa must be cultivated in order to stimulate job growth. Our marketing strategy should target all races and ages in order to stimulate growth and awareness within the various communities.
Tourism features very low among the priority outputs of local municipalities, because of other top priorities, of course. In order to uplift tourism in rural areas, cultural tourism is important. Municipalities will have to be given incentives to maintain cultural and geological sites for this to be a success, and in order for these sites to remain attractive.
The 2009 Domestic Tourism Survey indicates that the average spend per trip for a domestic business traveller is R2 340, in comparison with the R730 average spend per domestic trip in general. So, the value of business tourism in South Africa is also vital for significant growth in the domestic sector. I am happy the Minister mentioned the importance of business tourism.
Peter Bacon, the previous CEO of Sun International, stated that South Africa's image has changed from being a "low-cost, high-value" destination to one that is "high-cost, low-value". In order to change this, aggressive marketing is essential. Marketing is crucial in order to attract tourists from long-haul markets. South Africa's joining of the Brazil, Russia, India and China, or Bric, bloc, should be fully assessed and utilised. Brazil, South Africa, Russia and China are all among the fastest-growing countries as international tourist destinations.
With regard to local tourism, research shows that the safety and security of tourists represents the biggest deterrent to aggressively growing tourist arrivals over the next five years. It is therefore critical to avoid bad publicity when marketing South Africa and certain areas, particularly the townships.
Currently, it takes 16 tourists to create one job in South Africa, compared to the international average ratio of 8:1. Now, to meet President Zuma's goal of creating five million jobs by 2020, tourism will have to grow four to five times. It is the responsibility of all relevant departments, as well as the private sector, including the small, medium and micro enterprises, SMMEs, to achieve this goal. In other words, we are saying it is not the responsibility of the Department of Tourism alone to ensure that this is achieved.
I am happy to hear that the Minister mentioned a specific budget for the Expanded Public Works Programme, EPWP, because this is one of the mechanisms through which jobs must, and can, be created. The divide between rich and poor within the industry is wide. It is therefore vital that assistance is provided to SMMEs through established business in the form of knowledge and other support. Co-operation among the various entrepreneurs is also vital.
Climate change is one of the main centrepieces of global politics today. We agree with Minister Van Schalkwyk, and I would like to quote him. He said that by going -
... beyond talking about sustainability and biodiversity, and (taking) the lead in creating low carbon cities, a competitive advantage can be created for South Africa.
Nevertheless, such initiatives should go hand in hand with proper funding and planning.
The legacy that Fifa 2010 left behind in terms of infrastructure is profound. Infrastructure development and infrastructure upgrading is a necessity if the department wishes to encourage domestic and international travel. Co-operation and proper planning is therefore essential between the various departments.
Therefore, for the Department of Tourism to be successful in reaching its goals, participation is needed from every corner of South Africa. Tourism is one of the most effective tools that South Africa can use to create a better life for all. Through streamlining marketing processes and having better co-ordination between the three spheres of government, this industry can go even further. I thank you. [Applause.]
Hon Chairperson, the development of a vibrant tourism industry should be a top priority of government. Tourism in South Africa has demonstrated significant growth since 1994 and it is fast becoming a key component of the country's economy. Both directly and indirectly, via its multiplier effects, the tourism industry has perhaps greater potential than any other single industry to support at least two of the main objectives of the New Growth Path, namely economic growth and job creation.
The IFP recognises the importance of the tourism industry to the South African economy. It is good to see that the Departments of Finance and of Trade and Industry, as well as the Cabinet, appear to be increasingly aware of the fiscal and other benefits of increased support for tourism. The government must provide greater support for the tourism industry through the provision of adequate bulk infrastructure. This is of particular importance when considering the scope for heritage and rural tourism. We believe that the job creation potential of tourism will be of particular benefit to rural communities.
The government must ensure that tourists are provided with a safe and secure environment, free from crime, accidents, disease and dirt, and dangerous climatic conditions, animals and sea creatures. Where this is not possible, adequate warning must be provided.
The government must also facilitate development, especially amongst previously disadvantaged communities and small, medium and micro enterprises, SMMEs, through, inter alia, the establishment of clear parameters for development; identification of suitable sites; facilitation of development funding opportunities; assistance with the promotion of development opportunities to investors; and alignment of tourism development with national socioeconomic objectives.
Finally, there may be some benefit in delinking Tourism from Environmental Affairs, and either establishing a separate Ministry or linking Tourism to a mainstream Ministry such as Trade and Industry.
We believe that greater international marketing support is required in the South African tourism industry. The direct correlation between marketing expenditure and tourist arrivals - and thus, growth, jobs and tax revenue - is empirically clear, but is not acted upon.
Tourism marketing, by way of culture, history, the environment and events, is insufficiently representative of the country's diversity. This is being addressed by statutory bodies, but less so by the private sector. Regional co-operation in the international marketing of tourism products is crucial, but is currently inadequate. Support mechanisms must be improved. Specifically targeted supply-side measures are required, especially for the enhancement of SMMEs.
Since service levels in South Africa are generally uncompetitive, some form of intervention may be required in grading and training. The entire culture of service needs to be redirected to ensure greater international competitiveness. Training for the hospitality and tourism industries must be supported by government.
We, the IFP, support the Budget Vote. I thank you, Chairperson. [Applause.]
Thank you, Chairperson. Hon Minister, hon Deputy Minister, hon members, Director-General and the team, apartheid systematically and purposefully restricted the majority of South Africans from meaningful participation in the economy. The assets of millions of people were directly and indirectly destroyed, and access to skills and self-employment was racially restricted. The result is an economic structure that today, in essence, still excludes the vast majority of South Africans.
The vision of an economy that meets the needs of the people in a more equitable manner goes back to the Freedom Charter of 1955. The 1995 Reconstruction and Development Programme took this further, followed by various policy models that government has outlined in order to transform the economy.
Tourism plays an important role in the building of the national democratic society by, amongst others, accelerating growth and transforming the economy in order to create decent work and sustainable livelihoods; supporting a comprehensive rural development strategy, with tourism as an economic activity in rural areas; building cohesive, caring and sustainable communities with specific mention of tourism in relation to building national pride; and building a developmental state.
Travel and tourism now account for 9,2% of the global gross domestic product, GDP; 4,8% of world exports; and 9,2% of world investments. Forecasts indicate that travel and tourism's total economic contribution in 2011 will account for more than 9,1% of R40 trillion of global GDP and 250 million jobs worldwide. Also, in South Africa tourism is one of the fastest growing sectors and its potential to contribute towards job creation, poverty alleviation and the GDP is widely acknowledged.
Yet, despite South Africa's strong policy focus on transformation and small, medium and micro enterprise, SMME, development, many emerging tourism establishments remain on the fringes of the sector. If these tourism enterprises, which represent the majority of tourism establishments, are not integrated into the tourism mainstream, tourism will not reach its potential to reduce poverty and inequality and contribute to socioeconomic transformation.
The implementation of broad-based black economic empowerment, BBBEE, and the tourism code in the tourism sector has been given high priority by the ANC-led government in view of the high potential of the industry for job creation and opportunities, and the challenges associated with tourism, both locally and globally. In order to tap into that potential and boost black empowerment in the tourism sector, the tourism services charter was enacted in 2009, with specific adaptations to the BBBEE Act of 2003 in regard to business thresholds and qualifying criteria.
Because the entire industry understands that transformation in the tourism sector will contribute to the development of our economy and alleviate poverty, and fully supports the moral need for and is committed to transformation, it has been identified as an important element of growing and sustaining tourism performance, with the National Tourism Sector Strategy, NTSS, enhancing initiatives of SMME development and support. The NTSS requires that the sector should achieve a 70% target by 2014.
While transformation in the sector has moved at a snail's pace, measures are being taken in an effort to address this. A study commissioned by the department will measure the transformation that has taken place thus far in the sector, and look at the involvement and empowerment of women in the sector. It will be a tool to measure how South Africa's tourism industry has implemented broad-based black economic empowerment. It will show how business in the tourism sector has responded to black economic empowerment, and to what extent it complies with the targets as set out in the tourism charter.
It has been said that the process of BBBEE implementation is dogged by resistance from many due to a lack of a full understanding of the charter, and also that the sector is far more fragmented and underutilised than is portrayed, with billions of rand every year being spent ineffectively. It is also said that a national drive to unlock the multitude of opportunities that exist in the sector is long overdue. Thousands of small businesses hold the key to a quantum leap in South Africa's tourism, but need to receive the right business support and marketing exposure to achieve their potential. Whether these observations hold true or not will be seen from the results of the tourism sector survey I have alluded to. From a budgetary point of view it would appear that the Department of Tourism is implementing the resolve of the National Tourism Sector Strategy, NTSS. Its sector transformation subprogramme facilitates transforming the tourism sector by implementing the gazetted Tourism BEE Charter and Scorecard, and promotes opportunities for transformative tourism development. Fifty per cent of its budget is used to facilitate transformation through public and private sector engagements, as well as for monitoring and reporting on compliance. One such report is a study on the state of transformation, which I have alluded to and which has a budget of R1,3 million, which translates to 15% of the 2011-12 budget.
The strategic partners in the Tourism subprogramme receive transfers to facilitate development support for SMMEs through the Tourism Enterprise Partnership. The spending focus over the medium term will be on supporting tourism product development for rural and less frequently visited provinces, and ensuring the competitiveness of the South African tourism sector by diversifying and enhancing the tourism product offering.
South African tourism champions transformation in the industry. Its annual Emerging Tourism Entrepreneur of the Year Award is directed at achieving the meaningful participation of previously disadvantaged people and small, medium and micro enterprises in South Africa's tourism sector. Only when these groups begin to participate significantly in the industry will the country see real and equitable sharing of the industry's benefits among all South Africans and also see that the benefits of South Africa's rapidly growing tourist industry are accruing to more people who have previously been denied participation, people who have previously been denied reaping the rewards of a burgeoning industry.
Ultimately transformation, and reduced inequality and poverty, will not be realised in a meaningful and sustainable way if tourism enterprises cannot access the transformation agenda and if the majority of tourism enterprises are not financially viable. The challenge for South Africa is to ensure that policies are internally and externally consistent - in other words, policy goals do not contradict other goals in the same policy or in any other policies, but that they speak directly to the realities of all types and sizes of business operations and that, most importantly, tourism businesses have the resources and incentives to apply the principles of responsible tourism.
Mutshamaxitulu, hi marito lawa, ndzi lava ku hundzisela marito lawa eka vatirhelamfumo leswaku loko va vona vanhu va ri karhi va tsutsuma exitarateni va ri karhi va toyitoya, na vona va fanele ku titwa leswaku a va tirheli ku tata xandla. Va nga langutiseli ntsena eka van'watipolitiki hikuva mali yi khoma hi vona, kasi ntirho wu endliwa hi vona. Kutani na vona va fanele ku twa ku vava leswaku loko vanhu va rila hi ANC a va rileli hina ntsena, na vona hi vona va endlaka leswaku vanhu va rila ehandle. Kutani hi nge na vona a va tiyisi mavoko ya vona leswaku mfumo lowu wa ANC wu ta tikomba leswaku wa tirha. (Translation of Xitsonga paragraph follows.)
[Chairperson, with these words, I want to convey the following message to the government employees: Whenever they see people toyi-toying in the streets, they should feel that they are not serving to get rich. They should not look up to the politicians only because they are the ones who handle the finances, while they are the ones who are doing the work. They should also feel the pain, when people complain about the ANC, that they are not complaining about us only, but they are also involved in making people complain out there. That is why we are saying to them that they should work very hard so that the ANC-led government can be seen to be working.]
The ANC supports Budget Vote No 35. Thank you.
Chairperson, we are taking Tourism to the people. The year 2010 was the busiest on the national Department of Tourism calendar. It was also a year in which we launched the draft National Tourism Sector Strategy, NTSS. The fact that the NTSS has now been approved by the government for implementation gives us the marching orders to implement plans of creating jobs, growing our product base and contributing to the country's gross domestic product, GDP.
The department wishes to focus on its approach towards domestic tourism. This is because, and we agree with you, Mma Njobe, it forms the backbone of every successful tourism destination, and it creates jobs, reduces the impact of seasonality and increases the geographic spread. South Africa has a lot of potential in this regard. The department will work with the industry and other partners to develop a comprehensive strategy to take advantage of the existing untapped domestic market. This will further enhance the Sho't Left domestic tourism campaign, which has been highly successful within the targeted market segment. A clear directive has been given to SA Tourism to sharpen that focus and grow the domestic tourism contribution to the tourism economy.
With regard to our contribution to job creation, we have realised that unemployment and poverty remain two of the main challenges affecting South Africans. Tourism has the potential to contribute to economic growth. In 2009, the tourism direct contribution to employment was over 538 000 jobs and it contributed more than a million jobs directly and indirectly. The Minister indicated earlier what contribution we will make to full-time equivalent jobs through the internal programmes in the department.
Last year we also reported that the national Department of Tourism, together with the Tourism Business Council of South Africa, TBCSA, embarked on a survey to measure the state of transformation in the tourism sector in the country. I am pleased to announce that the study has been completed and the final report is ready to be released. The report will show how businesses in the tourism sector have responded to black economic empowerment and to what extent they comply with the targets as set out in the tourism charter. South Africa will soon have a tool to measure how the South African tourism industry has implemented broad-based black economic empowerment.
The focus in this financial year will be on putting in place a system for monitoring compliance with BEE rating by tourism enterprises, as well as reporting on the number of organs of state that report on levers they use to drive transformation in the sector.
Last year we had our first women in tourism forum and we identified the key challenges facing women in tourism which inhibit their meaningful participation as owners and decision-makers. It is time for women to be advanced in their role, to become decision-makers in the tourism sector. We are now rolling out a mentorship programme to respond to some of the challenges that we identified in the forum and there will be ongoing national interaction with these women.
Hon Chairperson, during the year under review the national Department of Tourism will embark on a process of reviewing and accelerating the implementation of the National Tourism Human Resource Development Strategy in partnership with all relevant stakeholders. The department is liaising with institutions of higher learning and ensuring that relevant accredited skills development programmes are developed to equip educators with relevant information and knowledge in order to enhance their understanding of the tourism sector and enable them to impart relevant information to the learners.
A review of the skills audit will be conducted and will provide a concise picture of current skills available and the skills gaps. It will also identify critical skills that should be prioritised and acquired urgently. It is also envisaged that the report will indicate the number of South Africans and non-South Africans who are employed. This is critical in order for us to know if we are making an impact on the unemployment rate.
The department will continue with the placement of unemployed tourism graduates in the hospitality industry in order to provide them with the relevant experience so as to be able to increase their competitiveness in the labour market. The existing partnership with the Ubuntu Institute, the Passenger Rail Agency of South Africa, Prasa, the Services Seta and CathsSeta will be maintained in placing our young people within the hospitality industry.
Last year, the partners received positive feedback from the learners who were placed at the Ritz Carlton Hotels and Resorts in Canada. May I just take this opportunity to read what one of the beneficiaries of that programme, Nakedi Matji, wrote to us, titled "Thank you for honouring my dream":
Firstly, I would like to take this moment to thank you, Ubuntu Institute, for giving me this opportunity to come to Canada to pursue my career. Your contribution is truly appreciated. I am currently working as a guest relations host and I cannot imagine trading it for anything else. I have been with the Ubuntu Institute team for a year and I know how much effort you put to make sure you change someone's life into a positive living.
[Applause.]
Hon Chairperson, I am also pleased to announce that the department is implementing a three-year national youth chef training programme targeting 800 unemployed youth. Today, two of them from the Western Cape are here in the gallery to grace us with their presence. [Applause.]
We came up with this number in consultation with the provincial departments and local municipalities. Also, it depends on the availability of training providers in the provinces and the demand at the provincial level, as well as the availability of places for experiential training.
The national Department of Tourism relies on capable and recognised organisations as partners, and we are pleased to be working with the South African Chefs Association on this initiative. We believe that this partnership will provide the trainees with the skills, knowledge and experience to gain sustainable employment in the hospitality industry, as well as in the tourism industry. We expect that one day they will become leaders and innovators in their own right.
In collaboration with both the Department of Basic Education and of Higher Education and Training, we will review the relevance of the tourism curriculum offered by the various institutions in meeting the demands of the industry.
As part of rural tourism, we regard the development of rural areas as a priority. It is a priority for the government and for rural tourism development to have a significant pro-poor impact on communities. An effective strategy, consisting of strategic interventions by government that allow our poor people better access to revenues accruing in the tourism market, is in the process of development.
The rural tourism strategy will be aligned with that of the national Department of Rural Development and Land Reform, which is already in place. During this current financial year the department intends to support more than more 530 rural enterprises and train people in them regarding tourism awareness, customer service and toolkits.
Our enterprise support entails SMMEs facilitating a rapid infusion of tourism spend in the local tourism economy. Many of these require direct support from government to grow and expand. It is for this reason that we will continue our co-operation with the Business Trust in the implementation of the Tourism Enterprise Partnership.
With regard to our niche tourism and heritage tourism, which are part of our growing and expanding tourism industry, we have partnered with the Department of Trade and Industry to develop a national niche tourism framework that will assist us with the effective management and development of niche tourism markets.
International tourism trends are increasingly showing that travellers are seeking authentic and memorable experiences through a meaningful connection with local people. A draft strategy for the further development and packaging of heritage tourism is being developed by the department.
The national Department of Tourism has also identified universal accessibility as an important initiative to enhance Africa's competitiveness. It will spearhead the finalisation of the universal accessibility action plan which will outline the roles and responsibilities of the different stakeholders. Currently, the existing legislation on universal accessibility in relation to the tourism sector is based on the UN Convention on the Rights of Persons with Disabilities and the Disability Rights Charter of South Africa.
This market is targeting revenue generated, and South African stakeholders have identified this universal access, UA, market as a possible future market since the UA market includes senior citizens, a sector which, according to the recent report by the United Nations World Tourism Organisation, UNWTO, is gradually increasing. It therefore makes economic sense, whilst it is also socially acceptable.
Our vision for the National Tourism Sector Strategy stipulates that we want to be amongst the top 20 destinations by the year 2020. However, South Africa does not currently have an integrated approach to service excellence. There is a myriad of initiatives that are not integrated into one strategy for the country and there is therefore a need to consolidate all efforts and come out with a strategy that will guide service excellence in the sector.
We have initiated a programme in partnership with the Tourism Business Council of SA that is aimed at creating an environment that enables the development of a good customer service culture and ensures that all key stakeholders in the sector play a role in ensuring that the objectives of the programme are met. The department, in consultation with the South African Bureau of Standards and the industry, will finalise the development of norms and standards for service excellence, which will be utilised by the industry as a guide in assessing and improving their levels and standards of service. [Time expired.] Thank you, hon members. [Applause.]
Thank you, Chairperson.
Letona le kgabane, Motlatsaletona, Ditho tsa Ntlo ya Ketsamolao tsa naha, ere ke nke monyetla ona ka ho thoholetsa le ho mamiella ho hlokahala ha ditho tsa ANC mane motseng wa Rammulotsi ka di 19 Mmesa 1990. Kajeno lena ke selemo sa 21 ditho tsena tsa ANC di le mobung o thotseng. (Translation of Sesotho paragraph follows.)
[Hon Minister, Deputy Minister, Members of the House, let me take this opportunity to take my hat off in remembrance of the death of ANC members in Rammulotsi on 19 April 1990. Today marks the 21st anniversary of the death of these ANC members.]
I would like to dedicate my speech to the fallen heroes who died in my town, Viljoenskroon, on 19 April 1990. Those are Comrades Senkie Ndzeku - my ANC branch is named after him - Mmoledi Tsotsotso, Ndoda Radebe, Pitso Belo and Jerry Moholo.
Chairperson, the ANC has supported this Budget Vote from the beginning. In his state of the nation address His Excellency the President of South Africa, Jacob Zuma, alluded to the fact that tourism can play a major role in job creation. He further outlined the measures, both direct and indirect, needed to boost this sector. He said that statistics suggest that for every 16 tourists one job is created. Some of the measures include flexible visa requirements.
In the Freedom Charter there is a clause that says the wealth of this country shall be shared among those who work for it.
The department has identified key priorities in line with their vision, which will be aligned with the government growth path. Among others, these are to increase investment in the tourism sector, develop tourism infrastructure, promote decent work, and ensure value for money for customers. These priorities are well aligned with the national priorities to create jobs, significantly reduce the high rate of unemployment, and create an environment that contributes to increased economic growth.
Some of the targets and objectives were achieved as a result of the 2010 Fifa World Cup. These are accommodation, transport, rural roads and signage.
The total allocation of this department for the 2011-12 financial year is R1,24 billion, compared to last year's which was R1,18 billion. In this regard I want to talk about the two programmes of the department - Tourism Development and Tourism Growth.
Tourism Development has increased by 1,4%. It is the programme with the second largest allocation in this department. The programme is entrusted with the facilitation and development of an equitable tourism sector. The social responsibility implementation subprogramme, which is tasked with the management and development of tourism infrastructure projects under the Expanded Public Works Programme, EPWP, consumes 87% of the programme's budget. The emphasis in spending will be on supporting tourism development in rural areas. Less will be invested in provinces to promote industry compliance with black economic empowerment in the tourism sector.
On Tourism Growth, this programme is responsible for tourism growth and competitiveness for the tourism sector. It received the highest allocation, 56% of the total budget. Even though you see that this allocation has increased, rural tourism development is still a challenge.
The committee would like to prioritise the implementation of infrastructure development aligned to rural development. One should also make sure whether there are any support facilities in the rural areas for the tourism sector.
Having considered the Budget and Medium-Term Strategic Framework, MTSF, the committee would like to recommend the following. Firstly, the department is encouraged to double its efforts to ensure that the notion of public- private partnerships is a well-endorsed practice for building capacity to deliver in the tourism sector. Secondly, the committee welcomes the new relationship between South Africa and Britain, Russia, India and China. Thirdly, local government is an important contributor to successful tourism activities and provinces must also play an important role. Lastly, the department must work with other departments like Arts and Culture to promote tourism, culture and ecotourism.
South Africa has a number of heritage icons like Moshoeshoe, Shaka, Sekhukhune, Gandhi, Mzilikazi, Luthuli and Tambo. These icons could be used to promote local and international tourism.
Finally I want to say that the committee supports Budget Vote No 35. Thank you. [Applause.]
Chairperson, hon Minister, Deputy Minister and members, my colleague Greg Krumbock has very eloquently highlighted some of the most important national issues regarding this Budget Vote. Therefore, I will focus on two specific national and two provincial issues that I have come across in the short period of time that I have been a member of this portfolio committee.
Minister Van Schalkwyk, I would like to inform you that oversight and the oversight role of Members of Parliament are very dear to my heart. Normally it is quite easy to find flaws or problems in the workings of most government departments. However, I have to state that the Department of Tourism is one of the most well run departments I have come across. I have to compliment you, as well as your team, on that. The department's programmes are well planned and implemented.
Recently in an in-flight magazine I read an article about the fact that out of more than 1000 establishments across South Africa that claim to be wheelchair-friendly, less than a quarter had suitable facilities. The director-general, when asked about the problem, stated that the department was currently working without a specific legal framework to rectify this problem, and that discussions would have to ensue between the department dealing with disability issues and the Department of Tourism.
Therefore, it is heartening to note that the Tourism Grading Council of SA has developed new criteria that include one for universal accessibility. Plans are under way for the development of a universal accessibility in tourism action plan. Workshops were held in six provinces by tourism associations. This falls under Programme 3 of the department, which deals with tourism growth.
A lot has been said about domestic tourism. One of the key issues is the role of local authorities and the fact that their efforts should be co- ordinated within the provincial tourism growth strategy.
Coming from the North West province, which only managed to get 6% of domestic tourists in 2010, I have to address the following two issues.
Firstly, there is the proposed Highveld National Park just outside Potchefstroom. After lengthy and complicated negotiations to establish this park, spanning 15 years and involving Minister Edna Molewa in her former capacities as MEC and later as premier, the park was fenced off with an electric game fence and plans were introduced to import game into the park. However, nothing came of the widely publicised imminent opening of the park.
Today large sections of the fencing have been stolen, small farmers farming with livestock have invaded the park, and millions invested in conservation and tourism have gone astray. The remaining game in the park are under continuous pressure, caused by traps and snaring, as well as dog-assisted hunting.
The inability of the different role-players, including but not limited to the National Parks Board and the North West Parks and Tourism Board, to establish and set up a park to protect, preserve and promote one of the last remaining and unique intersections between the savannah and grassland biomes, accommodating interesting plant communities from both of them, may well be a serious indictment by future generations of ours.
Secondly, the condition of provincial roads in the North West, as well as roads in tourism destinations such as the Pilanesberg National Park, have deteriorated to such an extent that advisories are out to warn visitors not to use certain roads. The roads situation is aggravated by the inability of the North West roads department to spend its maintenance budget on road maintenance. The road condition in the Pilanesberg has also deteriorated to such an extent that travelling in sedan vehicles has become a risk.
It is clear that the North West province's inability to properly maintain its roads and its parks and reserves impacts negatively on the province as a tourist destination in close proximity to Gauteng. National support and possible intervention should be considered.
One of the department's key objectives is to encourage more South Africans to enjoy the experiences our country has to offer. I hope that the work that the department is doing at the national level will also have a positive effect on the domestic tourism figures in the North West.
Lastly Minister, I have noticed the increase in identification of niche markets for tourism. Cape Town has been leading in that field with a study conducted on niche markets like backpacking and ecotourism. An interesting concept that I came across for the first time was avitourism: staying somewhere overnight and observing birds. This is not the type of bird- watching that tourists at Clifton Beach get up to! [Laughter.] The cruise tourism that you launched in November also comes to mind.
Tongue in cheek, I would like to assure you of the continued loyal support for the niche market of wine tourism as, according to you, this was one of the fastest growing and most lucrative sectors of the tourism market and also one that contributed an estimated R4,3 billion to our country's tourism revenue. I thank you. [Applause.]
Ngqanga neentsiba zayo nezihlwele ezikhenkethileyo ezize kumamela olu hlahlo-lwabiwo-mali lweSebe lezoKhenketho, i-ANC kwinkomfa yayo yama-52, ePolokwane, xa kwakuxoxwa ngezidla umzi namalinge okwenza uphuhliso ngendlela eyenye, yafumanisa ukuba omnye unobangela wale ntswahla nentlokoma eluntwini kukunqongophala kwamathuba emisebenzi, indlala egqubayo, ubuhlwempu obuphuqekayo kwakunye neyantlukwano phakathi kwezinhanha nabakat' ilel' eziko. Esinye sezigqibo ibe kukuba kuthathwe izikrweqe, kuqulwe kungenwe kwidabi lokulwa le ndlala nale yantlukwano ingaka kuba izizo izinto eziyingxaki.
Ezi zigqibo ke zidale ukuqingqiswa kohlelo lwezokhenketho olwatyunjwa nanguMongameli uJacob Zuma kolo luhlu lwenze ezokhenketho lube yinxalenye yale milenze mithandathu yokukhulisa uphuhliso ngokukhawuleza, nto leyo ibizwa ngokuba yi-New Growth Path.
Kuye kwayimfuneko ke ukuba kwabelwe eli sebe isixa semali esijoliswe kweli phulo ukuze likwazi ukugalelela amaphondo, aze wona amaphondo ankinkishele oomasipala.
Kungoko ke ngoku siza kuthetha - ndivuye kuba noSekela-mphathiswa uphawule ngale nto yokuba ... (Translation of isiXhosa paragraphs follows.)
[Mrs V BAM-MUGWANYA: President and hon members, distinguished guests who have travelled long distances to witness this Budget Vote of the Department of Tourism, the ANC, at its 52nd conference in Polokwane, when discussing internal issues and efforts towards development in a different manner, found that one of the causes of the outcry and complaints from the people was a lack of employment opportunities, prevailing hunger, poverty and the appalling difference between the rich and the poorest of the poor. One of the resolutions was to take up arms and struggle against hunger, poverty and this big difference because those were the problematic issues.
These resolutions gave rise to the implementation of the tourism programme which was also selected by President Jacob Zuma from the list on which tourism is one of the six sectors which will speed up development, and this programme is known as the New Growth Path.
Furthermore, there is a need to allocate funds which will target this initiative so that budgets can be allocated to the provinces and they, in return, will allocate to the municipalities.
Therefore, we will talk - I am happy because the Deputy Minister commented about the fact that ...]
... there will be institutional collaboration and strong working relations between the provinces and local government with regard to tourism, geographical spread and seasonality.
These resolutions laid the foundation for Tourism's strengthened role in the implementation of that agenda, and directing its resources towards realising these objectives.
It developed into the integration and alignment of planning and implementation, including the development of coherent intersectoral plans at the national level, and the alignment of provincial and local implementation in terms of the integrated development plans of metro, district and local municipalities. This meant that our national touristic resource endowments, including human, fauna, flora, environment, arts, culture, heritage and hospitality resources, should be exploited to effectively maximise the growth, development and employment potential embedded in such national assets.
In his 2010 state of the nation address President Jacob Zuma reiterated the concern that unemployment and poverty persist, despite the economic growth experienced in the past 10 years. He therefore declared 2010 a year of job creation through meaningful economic transformation and inclusive growth.
The President furthermore indicated that tourism was among the six priority areas where jobs could be created, but that all government departments would align their programmes with the job creation imperative, and that the provincial and local government spheres had been requested to do the same.
The ANC government has identified tourism as one of the key contributing sectors to the medium-term strategic priorities of growing the economy and creating decent work. A coherent and co-ordinated strategic approach to tourism development and promotion, in the form of the National Tourism Sector Strategy, NTSS, designed to position tourism as one of the fundamental pillars of the South African economy, was formally approved by Cabinet on 2 March 2011. One of the key focus areas of the NTSS is to consolidate its efforts to create jobs, and it aims to create 225 000 jobs by 2020.
We are fully aware that the tourism sector in South Africa and its contribution to the gross domestic product, GDP, has grown tremendously in the last two decades. Its full potential has, however, not been reached yet, and the strategies developed by the NTSS, which position South Africa as one of the top 20 tourism destinations globally by 2020, provide guidance on how to grow tourism's absolute contribution to the economy.
The strategy serves not only as a tool of inspiration to grow the sector to greater heights than ever before, but also as a yardstick by which permanence is measured. It is the driver that will enable South Africa to reach ambitious growth targets.
The NTSS recognises that tourism is a concurrent function across all spheres of government, and further acknowledges the enabling role that other levels of government play in tourism. Some of the key success factors identified are, amongst others, rural tourism development, which will contribute significantly to the achievement of the 2015-20 targets; institutional collaboration; strong working relations; and consolidated efforts between the provinces and local government, contributing significantly to geographic spread and seasonality.
Schedule 6 of the Constitution makes specific provision for tourism to be a provincial responsibility. Provincial governments, therefore, have a critically important role to play in the development and promotion of the tourism industry in South Africa.
Provincial tourism organisations are key players in the tourism industry and have the responsibility for all the functions indicated at the national level, like facilitation, co-ordination, regulation, monitoring and development promotion. They formulate tourism policies which are applicable to their areas of jurisdiction, but always in accordance with the national policy. They are also partners in the implementation of relevant national policies, strategies and objectives.
As far as the involvement of the local communities in environmental management, safety and security of visitors, tourism project development and infrastructure provision are concerned, provinces are urged to play a more prominent role than the national government, with the budget and resources allocated to them reflecting this reality.
Specific provincial functions of policy implementation, environment planning and land use, product development, marketing and promotion are further supported at the local government level.
Specific functions of local government include responsible land use planning, urban and rural development, and provision and maintenance of tourist services, sights and attractions like camping and caravan sites, recreational facilities, parks, historical buildings, sports facilities, cultural attractions, theatres and museums.
One of the objectives of the tourism policy, research, monitoring and evaluation programme is to ensure that the tourism policy environment is conducive to sustainable growth and development by providing mechanisms and development frameworks to support local tourism planning and development over the medium term, and creating alignment with provincial and local government and a sector budget structure on an ongoing basis. Spending in this programme over the medium term will focus on support to ensure the inclusion of tourism priorities in provincial growth and development strategies and in the integrated development plans of municipalities.
Funds will also be used for co-ordinating the implementation of the National Tourism Sector Strategy between government, industry and civil society; ensuring collective ownership of the sector commitments and delivery; research; and developing and implementing a reliable and accessible information and knowledge management system.
Undlunkulu ke akawadwabanga nje la magunya nezi zigidi zemali kumaphondo ukuze aze kudlala upuca ngazo enze namathuba ezinto ezingatshongo khona ezifana norhwaphilizo. Hayi! Uwanikele ukuba ajolise kuphuhliso oluqaqambileyo, kukhenketho, nakoorhulumente basemakhaya. (Translation of isiXhosa paragraph follows.)
[The national Department of Tourism did not just authorise these powers and funds to the provinces in order for them to spend unwisely and find opportunities to do unscrupulous things such as commit fraud. No! These funds have been allocated so that the provinces can target enhanced development in tourism and the local government.]
Considering all these strategies, we must always remember that all tourism development activities will represent all aspects of South Africa's direct heritage. The ANC supports the Department of Tourism's Budget Vote. [Time expired.] [Applause.]
Chairperson, I would like to thank all hon members from all sides of the House for their contributions. There were some excellent inputs, and some of that we will obviously consider and come back to discuss with the portfolio committee. I would like to respond to some issues right now, either by theme or by directly responding to the contributions of specific members.
The members Maluleke, Khoarai and Bam-Mugwanya referred to the reputation of our country as a value-for-money destination, although they approached it from different angles. Let me just say that it is a very important reputation for us to protect. We have never marketed ourselves as a cheap destination, and there is a huge difference between the two.
I would like to really commend the private sector for taking the initiative recently to get the industry together to address this issue, because we have picked up internationally that there is - it is not a dominant or very prominent perception yet - a response, reaction or impression in certain markets that some of our products are becoming too expensive. We must be honest about it, we must be transparent about it, and we must deal with the issue. We are a value-for-money destination, and that is what we must work hard to protect.
I would like to deal with some comments from the hon member Krumbock specifically on the statistics, and I think that we will be the only two who will get excited about it. You raised some questions, and they deserve an answer.
Let me just put the context of where we are operating and what is happening globally, and I would like to offer my apologies to those who attended a meeting recently in which I used the same examples. It is important to understand what is happening in the world in travel and tourism. It contributes just under 9% - 8,8% to be precise - to global GDP and just under 9% of jobs worldwide. So, it is a massive worldwide industry. It has grown, and many countries haven't even recognised the importance of this sector. In 1950, we had only 25 million arrivals internationally. That grew over the course of 59 years to 880 million international arrivals in 2009. However, what took us 59 years, from 1950 to 2009; we will now achieve in just 11 years! In 2020, we will have 1,6 billion international arrivals, so that tells us how fast this industry is growing. If we manage it correctly, the same thing will probably happen in South Africa, and we must manage that reality.
In 1950, only 4% of all people born travelled outside of a 100 km radius of where they were born. The other 96% were born, worked and died within a 100 km radius of where they were born. So, the world has changed, and it is our industry.
In saying that we have to manage that reality, we also have to say to ourselves that this industry is on a winning wicket, and we must manage it to ensure that we share fully in the benefits of what will be produced.
The hon member Krumbock said that we must compare apples with apples, and he is absolutely correct. We look at our performance as a country, but it is difficult to compare ourselves as a region, as the African region, with other countries, because we are part of the African region, which gets only 2% of international arrivals and, obviously, we can do much more to improve that. However, South Africa has outperformed each and every other region in the world.
Now, the hon Krumbock is absolutely correct that when we deal with statistics we must always carefully analyse those statistics and then extract the truth from them. Therefore, even if we subtract the Fifa World Cup, we have done something remarkable. We have registered growth in each and every month in 2010, not only up to the Fifa World Cup in June and July, but also every month after that in 2010. That is a quite remarkable achievement.
The hon member referred to the World Cup hosted by Germany. Something was very different during the German World Cup - there was no economic recession. This is something different, which we are experiencing now and which we have to deal with. Secondly, Germany is Germany within a bigger Europe, but we are a long-haul destination, and we still achieved growth each and every month in 2010, so that is quite remarkable. [Applause.]
Let me say that I also don't think that we can subtract a mega event like the soccer World Cup and say, when we subtract it, that on the one hand we have done well, but on the other hand the statistic is not much higher than the global average of 6,7%. Mega events are part and parcel of the tourism menu, the tourism programme, in every country.
If we really want to succeed, that is what we must attract in future. This year, for instance, we will be hosting the International Olympic Committee in Durban in July and the United Nations Climate Change Conference in December. Those will also do well for the tourism industry. Over the next five years we have already secured 200 meetings and conferences with 300 000 delegates who have already been confirmed, and that will hopefully translate into an income for us as a country of about R1,6 billion.
The hon member also raised the issue of this budget. His argument was basically as follows - and it is not the first time that he has used this argument as it was in his speech last year too, and he frequently puts it in committees, which is a good thing.
I want that side of the House to support us, because Parliament will now have a much more decisive role in finalising the budget. As a tourism industry and as the department we want to say that we need all the support that we can get.
What we must also understand - as a Cabinet where some of us are present, such as my colleague and I, and as a Parliament - is that we can debate the issues, but there comes a point where all of us have to say that we have debated all the issues and take coresponsibility. This is especially so when it comes to a budget. When it comes to a budget, a Cabinet can never go out and say in public that it thinks it deserves more. Once we agree to that budget, all of us as the Cabinet have to defend the budget. However, it is a new procedure in Parliament, and therefore it will probably also be so in Parliament, depending on how we vote.
I also think it is false to argue that because we contribute a specific percentage, we must get that specific percentage. If that argument is true, our department must get 8,8% of the national Budget. It is simply unrealistic.
Where we differ from the examples that the hon member mentioned, and Australia was one example that he mentioned, is that Australia doesn't have our history. Australia doesn't have millions of people that it has to lift out of poverty. Australia doesn't need to provide the houses, other infrastructure and other social services that we do.
Moreover, say for instance in our country the agricultural people stand up and say that they must get back what they contribute to GDP or if mining stands up and says that they must get back what they contribute, I think we will have a totally skewed national Budget.
That doesn't take away from the reality that all of us would obviously like more money to market the country. That is the kind of debate that we should have and that we would like to encourage in Parliament, but we do it from a position of responsibility where, as a Cabinet, we take coresponsibility for our Budget, and hopefully that will be the same in Parliament.
Then the hon member also mentioned - and it was picked up by one or two other members as well, although in a more subdued way - the issue of what harms our country when we have to market the country. The hon member mentioned certain songs, and I will say something about that. He also spoke of the Dewani murder and the public sector strikes.
Let us just pause here for a moment and remind ourselves that there is party politics and an absolutely legitimate debate. However, there is also a reality when it comes to the national interest, and I am very cautious about using the term "the national interest" because some people will say that it is hiding behind the national interest. When it comes to the national interest of our country, I think all of us must have the ability to say that in this case we must stand together for the sake of the country. In this debate it has actually happened, I have to admit, by all parties.
Let me deal with the issues one by one, the examples that the hon member mentioned. The Dewani murder, tragic as it was - and the courts must still deal with the issue - didn't have any influence whatsoever on tourist arrivals. That is the one thing I need to say. We track all these incidents very carefully. We have an instrument for reputation management at SA Tourism, and obviously we can have a discussion with the portfolio committee if they want the details.
Let me just draw a comparison where we as South Africans should be very careful. Whenever these incidents that are wrong happen in our country, even if it is our own people and not foreigners, we should really refrain from using them in a way that will harm our image. What happened in Florida just this week? Two British tourists were killed by a 16-year-old. Should we suddenly say to people that they shouldn't visit the United States? I think we should be very balanced and careful in how we deal with issues like this. [Applause.]
On the issue of the public sector strikes, I must say that all of us, in the ANC as well, were shocked at the conduct of some of those people and what they did on our streets. It was completely wrong. Having said that, our job is to market our country notwithstanding. When we talk about it, it is important how we talk about it.
After that I also have to remind myself that France sees public sector strikes every year. France is the most successful tourism destination in the world. So, I think that these things are part and parcel of open democracies, and then we have to remind ourselves that we should deal with them and manage them notwithstanding some of the headaches that they present.
Let me deal with the songs issue. It is in court, so I don't want to make any comments on the merits of this issue, but just speak in general. Obviously, all of us understand the emotions around some of these issues. The question that we as South Africans have to ask ourselves is: Where do we settle the issues? We have to talk about them, and we have to settle the issues. Where do we settle the issues? I don't know whether the courts of law can be considered the correct forum to settle them.
Let me use an example. Many of you may recall that during the first rugby and cricket tours that we had after 1994 there were many people with the old South African flag who went to these matches and very enthusiastically waved that flag. I remember there was a debate then, and some of the people in the ANC stood up and said publicly that we needed a new law in Parliament that would ensure that nobody ever waved that flag again at national sporting events. Colleagues, it would have been the completely wrong response. We would have seen many more people waving that flag, because they would have felt that Parliament and the government had no right to decide for them what they could and couldn't do.
We should probably look at many of these things and say that sometimes, even if we dislike something intensely, the court of public opinion will over time deal with them. Then, probably, the people who are among those being irresponsible will deal with those issues, because they understand the damage that those issues do to the fabric of the country. Let us sometimes just keep a cool head in dealing with something that is clearly and obviously an emotional issue and one that many people intensely dislike. Those are the issues that the hon member raised.
I now turn to the issue of the department, its structures and budget. The President decided that we needed a stand-alone department. If we look at the profile of tourism - that it is now one of the six growth areas in the growth plan - and its contribution to the GDP, it seems to be the right decision. It definitely raised the profile.
The issue of budget probably can be raised with regard to all departments in government. We all need more money. All provinces need more money. The Western Cape needs more money. The Free State needs more money. So that is an ongoing debate.
In regard to the budget, the Department of Trade and Industry will now transfer its tourism branch to our department, with its budget, staff and operational budget as well. Those were most of the issues that the hon member raised.
Then, on the issue of improved co-ordination with other government departments, there is much improvement in our co-operation with other departments and in the co-ordination. With regard to transport, and I mentioned it in my initial contribution, on the issue of frequencies, airlines flying here and co-ordinating with the national carrier, it is quite important that we do that. There is improved co-ordination.
I would now like to refer to a particular department, because in a recent portfolio committee meeting some members referred to complaints. In my view, there is a huge improvement in how the Department of Home Affairs is dealing with some of our issues. If we look at international airports - and I don't know how members who travel overseas and come back are experiencing it - my impression is that the customs and passport control at our international airports is much improved. The training of the staff and how they deal with the queues are much more efficient than they were in the past. I think we should point that out. [Applause.]
Also, in regard to the visa requirements from a security point of view, because there is a strong security dimension here, there are visa requirements for many other countries. Colleagues, honestly, I think from a tourism point of view, which should in my view be compatible with security considerations, there are some blanket exclusions that we really should reconsider. Many of these countries are in the developing world. We have formed a working team with the Department of Home Affairs to look at the reconsideration of visa applications for many of these countries, which we have raised with them. Hopefully we will soon be in a position to make an announcement in that regard. Chairperson, I would like to conclude. I think there is still a little time left, so if any member would like to raise a question, I will gladly answer that. My colleagues here say no. The indaba is two weeks from now, and it will be the major platform. We expect good business to be done there for the country again, and I hope that members of the portfolio committee will once again attend that flagship event. Thank you very much. [Applause.]
Debate concluded.