Chairperson, South Africa's status as a premier global leisure destination is now firmly established. We have the capability and the means, the welcoming culture and the varied, textured, beautiful destination that the world's travellers - ever more demanding and discerning - want when they choose a destination.
Our vision for the department is to be a catalyst for tourism growth and development in our country in order to crystallise the tourism mandate - our National Tourism Sector Strategy, NTSS, which we adopted exactly one year ago.
Furthermore, the draft Tourism Bill has been developed as a legal framework. Public and stakeholder participation has been concluded and the draft Bill will be introduced to Parliament during the third quarter of this year.
In 1950 the world had 25 million international arrivals, whereas in 2011 it had 980 million. It is estimated that in 2012 - this year - there will, for the first time ever, be 1 billion international arrivals. Within a decade, this figure is forecast to increase to 1,6 billion. This is exponential growth.
International competition in the tourism market will be vigorous. Our efforts will thus require flexibility, innovation and responsiveness. During the last five years our country has outpaced the growth of all competitor locations in the leisure arrivals category. Foreign direct spend in rand terms has grown faster than arrivals, with an 11% per annum growth rate. South Africa's tourism industry has also managed to build on the momentum achieved during a record-breaking 2010 by growing a further 3,3% and attracting over 8,3 million international tourists in 2011. As members will recall, it is obvious that "tourism" is a narrower category than "all international arrivals".
While South Africa's core markets in Europe and North America remain our major source of long-haul tourists, the country's overall tourism growth in 2011 was largely due to a 14,6% growth in the emerging markets of Asia, driven by a growth of 24,3% from China and 26,2% from India. Tourist numbers were also up, thanks to a 6,9% increase in arrivals from our continent.
European tourist arrivals declined by 3,5%, largely due to the ongoing impact of the global economic crisis in many countries in Europe. There are exceptions: The German market grew by almost 10% and that was good news. North American numbers grew by 2,3%, despite that continent's also facing major economic challenges.
In order for our country to respond favourably to, inter alia, the global challenges facing the growth and development of tourism, our department has established an International Tourism Management Branch. The objective of this branch is to provide strategic, political and policy direction for the development of South Africa's tourism potential across various regions of the world. This will be done working together with key departments such as the Department of International Relations and Co-operation, including our diplomatic missions around the world, the Department of Home Affairs and the Department of Transport. In this way, we hope to extend the work of the department to improve the competitiveness of South Africa's tourism industry in the global arena.
The marketing of South Africa as a destination remains the mandate of South African Tourism. Currently, South African Tourism has 128 joint marketing agreements in place across the tourism industry, with successful partnerships in our key markets.
South Africa also held onto its World Cup year growth of 66,7% out of Brazil. This was from a relatively low base. In 2011 we grew by a further 0,8% on top of that 66,7%. I would also like to announce that SA Tourism plans to increase its focus on this market, opening an office in Brazil in the coming financial year.
From an African continental perspective, Nigeria and Tanzania were two of the continent's biggest growth markets in 2011, with tourist arrivals from these two countries growing by 37,5% and 45,8% respectively. We will be investing R218 million over the next three financial years in order to support SA Tourism's efforts to grow our share of the African market. We have opened an office in Angola and plan to have five SAT offices open on the continent in the next five years - hopefully even before that time. The second office is set to open in Nigeria in the coming financial year.
This past financial year has also seen business tourism taking centre stage, especially in the light of the establishment of our first National Conventions Bureau, which is now a business unit in SA Tourism. For the next five years our country has already secured over 200 international conferences, estimated to attract 300 000 delegates and provide an economic boost of more than R1,6 billion.
On the domestic side of business, the NTSS has identified domestic tourism, among others, as a critical element, not only in reaching the job creation targets set by government, but also, in doing so, developing a sustainable and reliable basis on which future tourism growth can flourish. The Domestic Tourism Growth Strategy, DTGS, is now in place, with a clear action plan and organisational structural capacity to support implementation. This is effectively supported by a campaign that was launched yesterday: "Whatever you are looking for, it's here". Not only do we want South Africans to want to discover more about their country, but also that this campaign will contribute to the development of a culture of tourism and the enhancement of social cohesion among South Africans. This new domestic tourism campaign now focuses on a larger cross section of the population.
The department has also been restructured and the Domestic Tourism Management Branch now focuses specifically on providing strategic, political and policy direction for national tourism management.
During this financial year, the Tourism Empowerment Council of South Africa, Tecsa, commonly also known as the Tourism BEE Charter Council, will be appointed to monitor the implementation of the sector transformation agenda. Tecsa is tasked with monitoring the implementation of the section 9(1) gazetted Tourism BEE Charter and the scorecard in order to achieve the economic transformation of the tourism sector against the sector targets. I would last year, that we were the first sector ever to have a unanimous and agreed charter between government and all the stakeholders in the private sector.
The Tourism Grading Council of South Africa has also done superb work, specifically in the past financial year. With the introduction of the new, stricter and more comprehensive grading criteria, it is most encouraging to note that the chairperson of the Tourism Grading Council managed to attract 1 165 new establishments in the past 12 months.
The past financial year has also seen the department delivering on a number of key objectives relating to product development, namely the development of the National Heritage and Cultural Tourism Strategy, as well as the Rural Tourism Strategy. The former aims to mainstream heritage and cultural resources in the ambit of tourism and thereby enhance the country's competitive edge as a tourist destination.
The Rural Tourism Strategy will, in turn, focus on ensuring a more even geographic spread of tourism, with greater emphasis on supporting tourism growth in rural areas in particular, and also with a greater involvement of rural communities. I would like to thank the Deputy Minister for her role in that regard. Later on she will also report to Parliament. The importance of intergovernmental relations in implementing this strategy cannot be overemphasised. However, the success of the strategy is wholly dependent on provincial and local government playing their part.
During the past financial year, the department exceeded its Expanded Public Works Programme target for full-time equivalent jobs. As part of this programme, training or skills development is critical for the tourism sector.
The department has many successful Social Responsibility Implementation, SRI, programmes. I would like to mention one specific project that is very close to my heart, the National Youth Chefs Training Programme. A month or two ago Members of Parliament were present at the graduation ceremony. We launched and implemented this programme last year as part of the department's Expanded Public Works Programme SRI initiative. To date 545 young persons have graduated as chefs and 120 have already been placed with established hospitality institutes, such as hotels, bed and breakfast establishments and restaurants. [Applause.] Altogether 300 of the 545 have been enrolled for second-level training and, because of the success of the programme, another 500 young people have been enrolled for the first time. One of the lessons that I think all of us, across government, should take from this programme is that it is one thing to train people and quite another to make sure that they have jobs afterwards. That is the success of this programme.
The sector is also a fertile environment for entrepreneurs and small, medium and micro-sized enterprises, SMMEs. We will continue collaborating with the Tourism Enterprise Partnership, Tep. Tep was successful in achieving and exceeding its performance indicators over the past year. For 2011, Tep supported 4 991 jobs created by SMMEs, which delivered an increased turnover of R454 million. This raised Tep's contribution to job creation over the past 10 years to more than 66 900 jobs and a turnover of over R5,3 billion. Again, the lesson that we can learn from this programme is that there are some things that government can do and some that the private sector can and should do. Very often partnerships with the private sector are much more successful than when we try doing things on our own.
As a long-haul destination we are heavily dependent on airlift capacity, particularly for the traditional and emerging markets. Recent developments in this area, such as the loss of capacity by some of our core markets, the fluctuations in the oil price and the unilateral approach taken by the European Union in the implementation of the carbon emissions trading scheme, the so-called EU-ETS, are cause for concern. We are working with the Department of Transport and other partners to review the 2006 airlift strategy with a view to enhancing airlift capacity. We will continue to work with the international community, through multilateral and other formations, towards progressive, fair and consensus-based schemes for a more responsible tourism approach from an air transport perspective. Some colleagues may not know - those in the committee will have been fully briefed - that this system will actually levy a tax on all airlines all over the world flying to and from Europe, and also when they fly out of European airspace. It is hugely detrimental to our own airlines and also, obviously, to long-haul destinations.
The sustainability of our achievements depends on our ability to plan for the future, in both the medium and the long term. With constant changes in the geopolitical, economic, social, technological and consumer landscape, it is beneficial for us to understand how these megatrends may affect our country as a destination, as well as our source markets, in the future. In this regard, the department has begun working on possible future scenarios for 2030. Once that has been concluded, we will be quite happy to brief the committee in order to share these with them and to look at the implications for our sector. This will ensure that there is no room for complacency and that there is continuous, robust planning that takes the different futures and scenarios into account.
In conclusion, I would like to take a moment to thank our Deputy Minister, Ms Tokozile Xasa, for her commitment to the portfolio and for sharing this journey with the department. I would also like to thank the Director- General, Mr Kingsley Makhubela, and the very capable leadership team for bringing our new department this far in a very short time. Director- General, thank you for your strategic leadership and guiding vision for the future of tourism. Furthermore, the unqualified report of the Auditor-General after the 2010- 11 audit, which was our first audit as a standalone department, demonstrates administrative success in establishing a sound governance foundation that will support the implementation of our mandate.
Special thanks to Mr Thulani Nzima, who is the new CEO for SA Tourism, and his equally excellent team for working very hard with the department to achieve our targets. In addition, I would like to express the department and SA Tourism's gratitude to the private sector for the constructive relationship we have. Thank you to all our partners for engaging with us and for your commitment to our shared growth goals.
To the chairperson, Mr Gumede, and all the members of our portfolio committee, let me say that we value and appreciate the good working relationship with Parliament. [Applause.]
Chairperson, hon Minister, hon Deputy Minister, hon members and esteemed ladies and gentlemen, let me first thank every member of the committee for their constructive contribution, constructive criticism and awareness of putting our beloved country first. You used your right to disagree in a mature manner and this gives me hope that we shall be an even stronger democracy as we move forward. I am indeed proud to be one of you. We all agree that there should be a better quality of life for all and that we all have a role to play in making that a reality.
Allow me to begin with the goal of the budget. I will then take a look at the different programmes of the budget and areas of interest, and perhaps concerns going forward.
Firstly, it is important to take note of the global and domestic financial climate. We did expect that the global economic crisis of the past few years would seriously affect key tourism markets and we were not surprised to learn that some of our markets had shown a decline in growth. We were greatly relieved to learn that we had continued to grow, while other countries had shown a marked decline.
However, the question still remains: With the hostile global financial situation, has the department done its best, given the available resources and capacities at its disposal? Our view is, largely, yes, though it could have done better in some areas, for example transformation, small business funding and support, job creation, and the Expanded Public Works Programme, EPWP. The latter will be one of our areas of focus, as it assists in creating jobs, and job creation is a priority.
I now come back to the aim of the budget of the Department of Tourism, which is: To promote and support growth and development of an equitable, competitive and sustainable tourism sector, enhancing its contribution to national priorities.
That is what we have budgeted for, according to the Estimates of National Expenditure. Our budget for this year stands at R1,37 billion. The role of Parliament is to oversee the use of this budget via annual reports, quarterly performance reports, asking the Minister questions and oversight visits, among others. Different speakers will elaborate on the different programme areas, according to their areas of interest.
When we look at performance in general, we see that South Africa as a country has achieved a tourism growth rate that is above the growth vote of the South African economy as a whole, and better than that of global tourism. We thank the department and each and every stakeholder for this massive effort. In that regard, some of us have just voted for Table Mountain to be one of the New 7 Wonders of the World. Indeed, Table Mountain, just outside here, is now one of the New 7 Wonders of the World, and I am proud to say that one of the votes that counted was mine! [Applause.] In spite of the difficult economic conditions in our traditional global markets, we have managed to have growth that any tourism destination in the world can be proud of. I thank you, Minister, and your team for that achievement. And surely tourism can do even better with more resources. Job creation and sustainable livelihoods are a national priority, as I have said before. Job creation in the services sector, especially in tourism, is very important, as many employees do not need to be highly skilled or experienced, making it very accessible to the youth and to unskilled and semiskilled workers, especially in the rural areas. With sustainable livelihoods and small businesses, entry barriers to some sectors within the tourism industry are low, and the greater the activity in the industry, the better the chances are for many small businesses to be established. More jobs will be created, which will lower joblessness, inequality and poverty, and many of the jobs will be sustainable.
As the Diagnostic Overview Report notes, South Africa has an overdependence on trading in resources, and this is unsustainable. Given the above, tourism growth gives us the hope of contributing to bigger growth and a bigger economy.
The overview continues as follows:
The country's exceptional biodiversity is internationally recognised and its economic and social importance is reflected in reasonably well- functioning institutions in formally protected conservation areas, which support an important tourism industry.
We have elephant and eland grazing next to rhebok, zebra and rhino, among many others. This makes us competitive as a destination, and also gives us even more reason and responsibility to save the rhino from extinction. The threat of the extinction of the rhino and its perceived rarity may turn into an opportunity for us. It has the potential of being a drawcard in the future. So, let us actively join the fight to save the rhino. Let us make it our duty to protect the rhino, for the rhino is our future. Let us not allow it to go the way of the dodo.
Beyond our biodiversity, we still have many stories of our journey as a nation that have not been told boldly enough. We are a nation of many pathways that converged in a new South Africa. We have precolonial trade routes through Africa. We had colonial wars, the sites of which are known. We had imfecane/difaqane [war]. The treks of many different peoples were seen in South Africa. There are caves, oceans and rivers in the journey of our worship, and the journey of our liberation, among others. Yet we are not telling the stories. We have to.
Quite often we relegate tourism, particularly cultural and heritage tourism, to the bottom of the list of our budgetary needs at all levels of government. Indeed, we need a paradigm shift in this regard, starting with the political leadership of different parties at all levels and coming down to every one of us. Tourism complements service delivery. It does not adversely compete with the delivery of basic needs.
Let us promote tourism even better, although I know we are doing our best with what we have. For instance, on our visit to China we learnt that in its five-year plan that country projects the entire number of global tourists to be about 80 million people. If we strive for just 1% of that, we are talking of 800 000 tourists. This is an opportunity worth looking at. Our political principals have opened the way for this possibility - let us use it. Then the question will be: Are our strategies in line with this emerging possibility?
Despite the many challenges, we believe that the funds will be under good stewardship. We support this Budget Vote. [Time expired.]
Tourism is a major contributor to South Africa's gross domestic product, GDP. It brings foreign currency into the country and this in turn creates jobs. Job creation and dealing with high unemployment has become one of the biggest challenges and is currently the biggest threat to our young democracy. With one in four of our active population out of work, it is surprising that tourism has not been given the priority and emphasis it deserves in the President's state of the nation address on the one hand and the National Development Plan on the other.
Maybe the Minister and the Deputy Minister could spend a bit more time convincing the Cabinet of the importance of tourism and how, if given more funding, they could increase the inflow of foreign visitors and encourage our citizens to spend more time at home, enjoying our beautiful resorts. If they do so, every 16 tourists could create one job. If we can reach that magic projection of 11 million tourists, this could realise approximately 687 000 jobs. If tourists could be enticed to stay a bit longer and spend more money, we might be closer to the international average of 11 to 12 tourists per job.
Our landscape offers as much diversity as our population. We are further endowed with a vast range of fauna and flora, and numerous wildlife and insect species abound, all of which should create an awareness and desire in the curious and imaginative tourist to visit our shores.
Visitors to our country come here for a number of reasons and for far too long we have relied on arrivals at the airports and ports of entry to determine our statistics. This, unfortunately, does not tell us why the visitor arrived on our shores. Marketing South Africa as a tourist destination requires a focused, determined effort across all spheres of government. In the short time that I have served on this portfolio committee, I have been surprised by just how many arms of government are required to perform in order for all the efforts of tourism's aggressive marketing to pay off at the end of the day. A simple tick-the-box type arrival card at each point of arrival could easily determine the reasons for the visit, be it a holiday, family visit, business or convention. A similar arrangement could be made at hotels, guesthouses, lodges and game parks in order to pick up on domestic tourists and discover why they are there.
Setting key objectives and priorities is all very well, but if Home Affairs, for instance, cannot produce visas timeously or affordably, then all the department's efforts are wasted. Equally, if the SA Police Service cannot keep tourists safe, then they will not come here. The latest incidents of gender-based violence and violence in general all contribute to how South Africa is perceived internationally. Equally damaging has been the publicity around rhino poaching and the involvement of SA National Parks, SANParks, officials in those particularly merciless slaughters.
In the same vein, if tourists are expected to travel by bus or car, our roads should be safe and free of potholes. The vehicles they use should not be hindered by the unnecessary harassment of overzealous traffic cops who sometimes police our streets. Traffic police need to know and understand the licence conditions of tourist operators and hire car permits and not leave tourists stranded on the road when they pull them over.
The marketing of tourism is a highly competitive field worldwide, as each country attempts to lure tourists into their respective countries and to their attractions. This often involves cut-price travel packages, which discount accommodation, meals and transfers. However, tourists do not want compromised service levels. They want clean rooms, safe water, modern plumbing and fresh and affordable food. Here we tend to shoot ourselves in the foot. The World Cup was a case in point. Accommodation costs were excessively increased and food was priced according to dollar and pound values. Unfortunately, this practice has lingered and has only resulted in chasing away many potential domestic and international tourists. The V&A Waterfront right here in Cape Town is another example. It is far too expensive for people to go there - by this I mean the average person.
In the light of the above cross-cutting matters, Minister, it is imperative that you hold these and any other ministries to account through effective and accountable memorandums of understanding. I am aware that you have some such memorandums in existence, but what I have asked the portfolio committee is that we should be able to scrutinise those and hold the respective ministries accountable on your behalf.
Having served in the Portfolio Committee on Transport for some years, I am also concerned that certain anomalies still exist in the National Land Transport Act that have major repercussions for tourist operators. It has been three years since that Act passed through this House and no progress has been made to effect the amendments.
We have some of the most beautiful airports in the world, and some of them, like the Cape Town International Airport, have received awards like the Best Airport in Africa and the Skytrax Award for Service Excellence. These are all very nice, but if the Airports Company of SA cannot curtail the tariffs, we could be pricing ourselves out of the market. On the same topic, despite a marked reduction, baggage pilfering is still prevalent at our airports. We have the CCTV cameras and everything we need, but we cannot really put an end to it. Anyone who has ever experienced that invasion of privacy and lost their possessions can relate to this.
As you mentioned, Minister, we also need to sign off on the Airlift Strategy and Open Skies policy that we have determined.
One of the concerns I raised at the portfolio committee briefings related to possible duplication in the newly created International Marketing arm. Maybe I do not understand this. The department, as I understand, is going to set up these new tourist offices and they could and might be a duplication of the already existing embassies, offering a similar sort of arrangement for tourism and trade.
In a similar vein, we see provincial and local governments advertising regularly in our national newspapers, promoting their specific attractions. How are all these efforts co-ordinated and aligned, from a marketing and financial point of view, in order to achieve optimum benefit? I know that in the Western Cape Alan Winde chose to create a single Economic Development Agency for tourism destination marketing and trade and investment promotion, and by all accounts it seems to be working well.
In the DA we believe in creating jobs through the open opportunity society. To my mind, no better opportunity exists for bettering oneself than the Rural Tourism Strategy and the community tourism industry. Given the diversity of our population, our rich cultural and traditional heritage and the state's policy on the Green Economy Accord, one does not have to look far to see the potential for making exclusive African curios, developing traditional villages and eateries, opening homes for bed and breakfast facilities or providing tourist guides to cultural and heritage sites.
The Department of Trade and Industry provided grants for this purpose and, to this end, over 265 small businesses for accommodation were assisted - a commendable supplement to your department's effort to create sustainable jobs under the Expanded Public Works Programme. However, questions arise as to exactly how many jobs were created and how closely these are being assessed, monitored and sustained.
The Department of Tourism, despite its interdependency, is doing very well and has committed and passionate staff. However, it lags behind when it comes to transformation. With all the opportunities available to it to address the past, it has not seen fit to reinstate the very body formed to look after transformation in its field of operation. It is troubling that the Tourism Empowerment Council, Tecsa, is no longer functional and has not completed its task. This is how we understood it from one of the briefings we got. Tecsa was basically there to redress the racially unequal ownership of enterprise within the tourism sector. The reappointment of these councillors, which you have now reported on, is absolutely essential if you want to achieve what is laid down in your department's black economic empowerment, BEE, charter and an absolute must if you want to retain your office.
There is great controversy about cruise liners. I did have a chat with you about this, but I think another alternative would be to look into registering our own cruise liner. All the services that we would need to offer the liner would be provided by the port of entry and we would derive all the benefits directly.
In the Western Cape we have one of the most sought-after steam enthusiast rail routes, running from George to Knysna along the beautiful, scenic Garden Route. Part of this line was damaged during the floods of 2006. In order for the Outeniqua Choo Tjoe to start operating again, Transnet needs to hand over some lines and facilities to the Western Cape department of transport, which it agreed to in 2010. There has been a subsequent change of chief executive officer at Transnet and this issue has not been resolved. Revenue of millions of rands has been lost and hundreds of downstream beneficiaries have lost potential income.
Finally, let us come to the matter of the budget. Once more the department's budget has reflected very little growth - 2,07% in real terms. Despite this departments being responsible for the fastest growing industry in South Africa since the advent of our new democracy, and contributing 8,3% to the GDP, Treasury chose to give the Department of Tourism only 8,1% across all its programmes. This is not good, considering the department's restructuring and ambitious plans. It is noted, though, that as of 31 March some R270 million in cash and equivalents has been sitting in various bank accounts across the world. With Treasury, as hon members know, if you do not spend, or have the capacity to do so, you lose the money. You do not get it the following year. The question must be asked: Will this be enough to shape our future together? [Applause.]
Chairperson, hon Minister, hon members, during oversight visits undertaken over the past financial years, the Portfolio Committee on Tourism noted the lack of infrastructure in some provinces as one of the major constraints in ensuring that the country's tourism potential was realised.
Thus, the invitation extended to the nation as a whole by President Zuma in his state of the nation address to join government in what he termed "a massive infrastructure development drive" should be seen as a great stride forward and one that should contribute to tourism growth and development. The project places the construction of roads, railways and airports and the provision of electricity and water at the centre of this year's national priorities.
Meanwhile, South Africa is sitting with 7 000 km of rail track that is not being put to use and is not being maintained. Government ought to encourage the private sector to utilise this infrastructure and create new services primarily aimed at the leisure market. In its marketing message the Department of Tourism has identified the need to encourage South Africans to move away from purpose to leisure travel. The existing rail infrastructure must be developed, improved and put into use if its total disrepair is to be avoided. There is no doubt that the charm of rail transport holds a great attraction for all tourists, domestic and international. Surely, the Blue Train cannot be the only train that South Africa has to offer. Rather, South Africa must wake up to the abundance of opportunities that exist for job creation.
We welcome the department's recognition of the importance of marketing South Africa as the best destination to visitors from African states. With an additional allocation of R218 million for this purpose in the medium term, the South African tourism entity will expand its work to grow the number of tourist visits from Africa. We can only hope that the marketing strategy for Africa will be relevant. For example, there would be no point in encouraging West Africans to visit the Kruger National Park, because there are more and bigger lions in their countries than in South Africa.
SA Tourism markets South Africa to the rest of the world, but also domestically within the country. The continued increase in the number of international tourist visits from year to year, in spite of the global recession, is testimony to the resilient efforts made by this entity. The number of domestic travellers has also seen a steady increase in the past financial year. However, the challenge to fully develop the potential for domestic tourism remains.
In a recent presentation to the portfolio committee by the Tourism Business Council of South Africa, TBCSA, the suggestion was made that to boost the local tourism industry and maximise its contribution to the economy, there was indeed a need to establish a separate entity to market local tourism. Cope is inclined to support this view, though we are aware of possible budget implications.
The following are some of the reasons for our support. A separate entity would leave SA Tourism with more time to focus on international marketing. The new entity would be responsible for all four subprogrammes under Programme 4, which is Domestic Tourism, and would also have sufficient time to pay attention to detail, ensuring the achievement of targets that have been set. It would also focus on current challenges such as providing support to small, medium and micro enterprises, SMMEs, for economic development and job creation, monitoring targeted enterprises and ensuring that they yielded positive results. It would focus on and promote cultural and heritage tourism projects, encouraging more sustainable investment and better upkeep of heritage sites by provinces and municipalities, while also encouraging public -private partnerships. Such an entity would closely monitor and evaluate the Expanded Public Works Programme, EPWP, of the department, closely assessing the projects and their impact on job creation and skills development, but also addressing concerns such as those raised by the Auditor-General in the budget of the past year. All this, hon Minister, would be part of local marketing, which is currently the responsibility of SA Tourism.
The importance of marketing South Africa to its own citizens cannot be overemphasised. We need to be more aggressive in doing so. In India, for example, stickers seen on the streets of some cities exhort the people with the words "Tourism works for you". People need to know this and internalise the message. In Mexico the slogan is also very appealing, to both domestic and international tourists: "Mexico, the place you thought you knew". With such an appealing message, one cannot but move away from purpose to leisure travel. You just feel like travelling! I am not in any way implying that South Africa should copycat the slogans. We are capable of inventing our own to ensure that we educate our people regarding all the benefits of tourism.
Lastly, Cope wishes to reiterate the need and urgency for improved interdepartmental and intergovernmental co-ordination to ensure the success of tourism in our country. With only 18 years to the year 2030, by which time it is envisaged that most, if not all, South Africans will be enjoying the much promised "better life for all", co-ordination within departments and among the three spheres of government is no longer a choice but a must. The tourism industry and its attractions are located in the provinces and municipalities, and its success is dependent on other sectors. Such co- ordination, if taken seriously, can lead to improvement in product development.
One thing the portfolio committee delegation learnt on its visit to Mexico in January this year was the importance of the involvement of all stakeholders in developing all tourism products prior to implementation. [Time expired.] [Applause.]
Chairperson, tourists visit our country and continent to experience the magic and majesty of all that is African. In many respects, South Africa plays the role of the gateway to the rest of Africa. I is the front line, if you will, offering the overseas visitor their first African experience. As such, we need to ensure that all the relevant factors are addressed that make international travellers choose and, thereafter, prefer South Africa as a travel destination.
The advent of the 2012 Soccer World Cup extravaganza saw much needed upgrades to our air, road and rail infrastructure, allowing tourists a more efficient and safe travel experience within our country.
Our nonproximity to tourism-generating areas remains a hindrance, however. For the majority of tourists, South Africa is a long-haul destination. As such, we are held hostage by the airline industry, whose excessive prices can sometimes cost us right out of the market when it comes to attracting tourists from other continents. How do the Minister and his department intend to address this problem? Cultural events, local cuisine and lifestyle also play a significant role in attracting tourists. These might take the form of festivals and religious or traditional events, such as the annual Reed Dance Festival at Enyokeni Palace in KwaZulu-Natal, the Ukweshwama [First Fruits] Festival, and the Dance of the Maidens as a weapon in the war against HIV and Aids Festival, to name a few. These events are not given the necessary international showcasing they deserve. The net result is that our country's traditional communities are the ultimate losers, because much-needed tourist revenue never arrives.
Let me turn to our game parks, the veritable jewels in the crown of South African tourism. Poaching and associated acts of violence are severely depressing the international demand for visits to these wild sanctuaries. We therefore stress again the need for tourists to feel safe and secure when visiting our country, and for the toughest of criminal sanctions to be legislated and meted out to those who contravene our laws in any way.
As in most instances, the travel industry follows a "profit above all else" mind-set. This greatly impacts on both our domestic and international tourism markets, but the major impact is felt in our domestic tourism market. This kind of thinking does not encourage tourism and the department should explore various avenues through which to educate our travel industry and tourism operators on the best ways to incentivise and not drive away tourists.
Emerging international tourism markets must also be tapped and vigorously engaged by the department so as to ensure that an adequate market share comes to South Africa. The IFP supports the budget. [Time expired.] [Applause.]
Chairperson, hon Minister and hon Deputy Minister, hon members and guests from the department, the developmental state's responsibility to drive and manage the economy places tourism as a key pillar in the generation of growth and development. The tourism sector, in particular cultural and indigenous tourism, has an important role to play in contributing to the eradication of poverty, tackling unemployment and addressing inequality.
The strategic objectives of tourism should be the unlocking of the potential of cultural and indigenous tourism, and addressing the issue of geographic, seasonal and rural spread. This form of tourism has a special impact on rural development. Economic development in the rural areas is integrally linked with cultural and indigenous tourism growth, jobs and sustainable livelihoods.
The ongoing promotion of tourism development in rural areas is central to historical, heritage and cultural sites, as well as liberation struggle routes, being developed, all of which will benefit poor and rural communities. It is therefore encouraging that the department's Medium-Term Strategic Plan for the period 2012-16 identifies the development of niche products such as cultural heritage tourism as a priority.
The Minister of Tourism, hon Marthinus van Schalkwyk, launched the National Rural Tourism Strategy on 11 April 2012 and also unveiled Phase 3 of the Donkey Cart Project at Wupperthal in the Cederberg area. On that occasion, the Minister said:
Community beneficiation is at the heart of the National Rural Tourism Strategy. The strategy is aimed at developing rural tourism. This can greatly contribute to the alleviation of pressure in areas that are often characterised by poverty and underdevelopment.
This strategy illustrates the national Department of Tourism's commitment to the development of rural economies in general, and rural tourism in particular, which can contribute significantly to the improvement of the quality of life of the rural poor.
The main problematic areas hampering rural tourism development have been identified as the following: inadequate funding and resources for tourism in rural areas; a number of key rural tourist attractions are located in rural areas and are not receiving benefit stemming from the tourism industry; and the limited involvement of local communities serves as a major constraint in developing tourism in rural areas.
In order to address these challenges, the strategy inter alia aims to achieve the following: to facilitate the co-ordination of rural tourism development initiatives among relevant stakeholders; to create an enabling environment for rural tourism development to stimulate job creation; and to identify and recommend strategic areas for tourism development in rural areas within the sector.
In his 2012 state of the nation address President Jacob Zuma identified job creation as key to the alleviation of poverty and the eradication of unemployment. He also stated in an address to the Tourism Business Council in March 2009 that South Africa was faced with the challenges of growing and stabilising the economy, ensuring food security, creating sustainable jobs, and eradicating poverty. He said that the unprecedented socioeconomic benefits offered by tourism positioned it as a strategic industry for investment and business opportunities.
In the spirit of "together we can do more", the department and key stakeholders have to ensure that steps are taken to realise the development and transformation of this historically and culturally important component of the economy.
The department's four budget programmes have been changed from previous financial years. Domestic tourism is one of the three new programmes. The fact that one of the programmes will henceforth be dedicated specifically to domestic tourism, which encapsulates indigenous, rural, historical and cultural tourism, is a clear indication that more attention will be paid to the resources earmarked for tourism within our own borders.
Of the budget for 2012-13 and the following two years, 25% is allocated to tourism of this nature. As with tourism in general, the successful implementation of the Domestic Tourism Growth Strategy and the strategy for domestic cultural tourism will require substantial financial resources. However, the current domestic tourism budget is extremely limited and does not allow for the successful development of these sectors. Underspending on this key priority will undermine the aims of job creation, as spelled out by the President on various occasions. We have not yet fully realised the contribution of rural, cultural and indigenous tourism to the building of cohesive, caring and sustainable communities and national pride. By travelling at home, South Africans can contribute meaningfully to the tourism industry, its competitiveness and socioeconomic growth, as well as job creation.
We are very happy with the fact that we can see that the Minister is very busy launching rural tourism. Also, we can see that ...
... izinto ziyenzeka. Sinethemba kwaye sinqwenela ukubona abantu bethu bephuhliswa. Sifuna ukubona ukhenketho luziswa ekuhlaleni. I-ANC iyaluxhasa olu hlahlo lwabiwo-mali. Enkosi. [Kwaqhwatywa.] [... things are happening. We have hope and we wish to see our people developing. We want to see tourism being brought to the communities. The ANC supports this budget vote. Thank you. [Applause.]]
THE DEPUTY MINISTER OF TOURISM: Chairperson, the international arena in which we operate harbours countless challenges which, in various ways, constitute threats, but also opportunities for the creation of an environment conducive to the growth and development of tourism in South Africa. Nature's unpredictable changes, such as tsunamis and clouds of volcanic ash, have demonstrated in a graphic way how the tourism sector can be vulnerable to these phenomena. The persistent effects of the global financial crisis are dissipating far too slowly and this, with few exceptions, impacts negatively on tourist arrivals from our traditional source markets, particularly Europe. Fortunately, we in South Africa have benefited from the very positive branding and spin-offs in reputation from the successful hosting of the 2010 Fifa Soccer World Cup.
The implementation of the first ever National Tourism Sector Strategy entailed the setting up of delivery mechanisms, including a monitoring and evaluation framework, the allocation of roles and responsibilities, and support for integration of this strategy at provincial and local government levels. The 2012-13 financial year will see the first annual report on the implementation of this strategy.
The success of all our strategies depends on the capacity to implement them. In this regard, local government was identified as the most critical link in the delivery chain for the growth and development of tourism. In recognition of its role, the department developed a Local Government Tourism Intervention, Support and Capacitation Programme, which aims to transfer the necessary skills in order to effectively support tourism planning and management at the level of officials across municipalities, thereby preventing serial job-hopping across the municipalities with limited capacity. It will create awareness of tourism for policy-makers to promote tourism-friendly policies, including municipal bylaws.
With Cabinet approval of the National Tourism Sector Strategy in March 2011, the department is focused on the development of plans to effect and support its implementation. These include the development of critical sectorwide frameworks, such as the Crisis Management Framework, Information Management Framework and Service Excellence Framework, and the National Minimum Standards for Responsible Tourism.
In regard to the Crisis Management Framework, the recent floods that affected parts of the Limpopo and Mpumalanga provinces, particularly the iconic Kruger National Park, have demonstrated the vulnerability of our sector to natural disasters. The department has therefore put in place a Crisis Management Framework to enable the sector, working with disaster management authorities, to effectively respond to such incidents in order to minimise the impact and speed up recovery in the affected areas.
In regard to information management, the department has developed a National Visitor Information Framework. It provides for uniformity and standardisation across the information centres in regard to branding, operating hours and classification, in other words, whether it is government-owned, private or a gateway. During the 2012-13 financial year, we will establish two national tourism information gateways, one at O R Tambo International Airport and the other at the Beitbridge Border Post. These information gateways will serve as one-stop shops for tourism information for visitors on arrival and will provide information about the entire country, not just about their location. We will also establish a common brand for the visitor information centres across the country.
The National Tourism Database is one of the most important sources of information for consumers, investors, policy-makers, operators, etc. Our understanding is that it is in the best interest of the entire sector to continuously maintain the integrity of our database. We would like to commend the industry for its co-operation in our continuous efforts to maintain the database, and trust that such co-operation will continue into the future, as we collectively manage this asset. It is for this reason that I am convinced that the sector deserves a light regulatory approach in this regard.
The gazetting of the National Minimum Standards for Responsible Tourism has provided clarity on expectations regarding how the tourism sector can become responsible. During this financial year the department will work on an incentive framework to recognise good corporate citizenship.
During the 2011-12 financial year the Universal Accessibility Declaration was adopted by the sector. In the coming financial year, we will focus our efforts on ascertaining the state of universal access in the country and establishing frameworks for a universal accessibility-compliant town or city.
Let me turn to service excellence. The National Tourism Service Excellence Requirements, the first of their kind and developed through the South African Bureau of Standards as a national set of standards, were recently launched together with the Service Excellence Campaign. The national Department of Tourism approved this strategy in April 2010. It comprises five pillars: research and information; upskilling service delivery; public awareness; measuring and monitoring service standards; and consumer feedback systems. The aim of this five-pillared approach is to gradually introduce a service-orientated culture and to maintain it through various interventions, in collaboration with the various institutions within the sector. The requirements are also aimed at improving and maintaining service levels at all service touch points in the tourism value chain. They are also aimed at guiding the sector to achieve the National Tourism Sector Strategy's objective of positioning South Africa as one of the top 20 global tourism destinations.
I will just touch on two aspects of skills development. The first is the professionalisation of tourist guides. Tourist guides are among the first and last contact persons for tourists. All 11 200 of our tourist guides are brand ambassadors, proudly wear their badges and serve the country with distinction. The National Registrar of Tourist Guides must work with the tourist guide fraternity to restore the dignity of this important profession. We also recognise that tourist guiding is an ideal entry point into the sector, particularly for previously disadvantaged groups. That is why we will be pursuing a developmental approach to law enforcement and local community participation, particularly in areas that are rich in natural and historical resources. We shall also be creating awareness among consumers, product owners and aspirant tour guides to ensure that there is compliance with the law. Illegal guiding is not only a crime, but could also destroy our brand. It must be exposed and punished accordingly.
The second point I would like to touch on is the National Tourism Careers Expo, NTCE. This has been a very successful programme in the department and was hosted in Durban during the last financial year, with a record attendance of about 19 000 people. The programme was initiated in 2008, also as a response to the gaps identified in the 2007 Tourism Skills Audit. This is a forum where young people from high schools, Further Education and Training, FET, colleges and universities are exposed to the existing professional and career opportunities that exist in the tourism sphere. This intervention is also prudent in exposing the tourism industry to a host of skills that exist among the young people of this country, which the industry could harness and benefit from. The department has since facilitated its becoming an annual event, where interested and affected young people are exposed to industry opportunities. This year the NTCE will be held in East London, Eastern Cape, from 28 to 30 September. In conclusion, we are confident that this sector, which has been identified as being one of the key priority sectors of our economy, is ready to contribute to the development of an inclusive and transformed economy. The decision was taken that transformation, as one of the key determinants of economic development and growth in the sector, will be incorporated into the amended Tourism Bill, ensuring that macroeconomic policies of our country are incorporated.
I take this opportunity to thank the hon Minister, Marthinus van Schalkwyk, for his insight and leadership of the department. I also feel gratitude to the former ambassador, Director-General Kingsley Makhubela, and the management team and staff in the department for their hard work and dedication. To the board and CEO of SA Tourism - you are doing sterling work in promoting our country! Let me also give a thumbs up to the tourism industry players for their contribution to making Mzansi a tourist destination of choice. Keep up the good work! My final word of thanks goes to the chairperson and members of the portfolio committee for their commitment, co-operation and guidance. [Applause.]
Chairperson, Minister, Deputy Minister, chairperson of the Portfolio Committee on Tourism, stakeholders of the Department of Tourism, ladies and gentlemen, comrades and friends, the department carried out a revamp of the three programmes and it is important to highlight that such a task cannot be undertaken lightly. However, the department needs to catch up with global trends, and we remain hopeful that this structure is seeking to achieve exactly that.
I would also like to congratulate the department on the new National Tourism Sector Strategy, NTSS, which was approved by Cabinet in 2011, and the draft Tourism Bill, which has been published for public comment. These policies were supported by the industry, given that their sole purpose was to address growth and development in South Africa's tourism sector.
As we know, tourism is a cross-cutting sector, requiring the support of other government departments and the different spheres of government to be successful. It is therefore important that intergovernmental relations are nurtured. For this reason we commend the department for identifying some municipalities for the implementation of a pilot NTSS and the training of their officials.
South Africa still has a lot to offer. However, for tourists to realise that requires that the packaging of our products be done in a way that, is directed by the demand of our target markets. For this reason we need to do thorough research into our target markets and competitors. This will give South Africa the competitive edge we had prior to the 2008 global economic crisis. As a department, we would also like to express our delight with the plus- minus 9% increase in the number of German tourists, as was stated in the research. A number of factors resulted in this increase, including direct flights to South Africa offered by SAA and Lufthansa, as well as the airlift capacity of other indirect flights having increased by 10%.
We should not leave it to chance to resolve issues regarding our country's airlift strategy and rising landing costs, which has caused tourists to fly to Mozambique rather than to O R Tambo International Airport. We acknowledge that the Ministry is working towards luring tourists visiting Mozambique to extend their visits by coming to South Africa. However, at the same time we should not lose what we have, but rather gain more. This is where intergovernmental relations become crucial.
I would also like to commend the department for its role in resolving the issue of jet fuel, which was set to result in a national crisis, not only for tourism but for trade relations and business investments. We hope that the department will continue to contribute positively towards the growth of our beautiful country, South Africa.
With our country facing a number of challenges regarding air travel, it would be interesting for niche products such as cruise tourism to be developed further. A report on cruise tourism has been compiled and it would be interesting if the department worked towards ensuring the development of this product. As we have said, South Africa has a lot to offer and, given the number of ports along our coast, this product has great potential to prosper and bring tourists on board. That could greatly assist us in achieving our 2020 target of 15 million visitors and unlock tourism's contribution to job creation.
The department has indeed improved significantly on the last year. However, the audit report has raised a number of concerns regarding the Expanded Public Works Programme. The steps taken to remedy the situation have been commendable. We also believe that the upcoming annual report will prove that the department's internal control systems have improved.
Inasmuch as the department has shown notable progress administratively, it has budgeted about R29 million for consultants. This is a point where it still needs to improve. However, we acknowledge that compared to previous years the spending on consultants has improved. We believe the department will heed the call to reduce spending on consultants and instead channel resources into hiring the expertise required in the various fields. If relevant people are hired for these posts, the progress of the department will improve drastically.
The department has also made notable progress in the implementation of the Performance Management and Development System. Furthermore, the control system in the department seems to have recovered following the doubt that was cast by the distribution of funds in regard to the EPWP. It is for this reason that I propose that we support the budget of the Department of Tourism and believe that the department will continue to follow government policies and procedures, especially the Public Finance Management Act and Treasury regulations. [Applause.]
Chairperson and hon Minister, the ACDP welcomes yesterday's launch of the new Domestic Tourism Growth Strategy, which includes SA Tourism's new domestic marketing campaign with the tag line, "Whatever you are looking for, it's right here in South Africa". We know domestic tourism contributed 76% of South Africa's total volume in 2011 and contributed R20 billion to the country's economy, making a substantial contribution to creating and sustaining much-needed jobs. We therefore support the call for South Africans to be tourists in their own country and to experience what millions of international tourists are drawn to annually: the sheer beauty of the land, its rich culture and heritage and the warmth and hospitality of its citizens. Minister, you are quite right that many people only dream about coming to South Africa, yet our citizens are not taking full advantage of travelling and enjoying the many varied and beautiful attractions in our country. We trust that yesterday's initiative will address this. As far as foreign tourists are concerned, last year a record number of 8 million foreign visitors arrived in this country - more than those who came during the Fifa Soccer World Cup tournament. There is, however, a view among industry stakeholders that South Africa has failed to implement a fully effective and integrated marketing strategy, with private sector associations, as well as national, provincial, regional and municipal tourism organisations, vying with one another to have their voices heard. Hon Minister, to what degree has the National Tourism Sector Strategy announced last year ensured a national focus and the integration and alignment of efforts by all involved in the tourism industry to address the view held by certain stakeholders?
The question also arises whether sharply rising hospitality costs in South Africa, referred to by various speakers, have been a disincentive to visit the country, the perception being that the country is no longer a cheap destination. The rand's general strengthening has also been a disadvantage to foreign tourists. Of course, one should also consider the cost of air travel and how those costs can be kept down, considering that South Africa is a long-haul destination and that airline costs are dependent on the oil price.
We share your concerns about the EU's common tax on airlines flying in and out of Europe. On the positive side, there is a significant rise in Indian and Chinese visitors, which is to be welcomed and encouraged. However, there does appear to be a challenge for Home Affairs when it comes to distinguishing between legitimate Chinese tourists and potential illegal immigrants, and this has to be addressed.
A competitive tourism industry is vital if we are to realise the objective of increasing the number of visitors to 15 million by 2020, and the ACDP is fully behind all efforts to achieve that goal. We support this Budget Vote, and wish to thank all the officials in this department for their hard work and commitment - well done in regard to the unqualified audit!
Chairperson, Minister of Tourism, Deputy Minister of Tourism, hon members, and ladies and gentlemen, we are humbled and honoured to be able to participate in the debate on the tourism Budget Vote, Vote 35 of 2012-13.
As many South Africans celebrate the existence of the mighty majority party, the ANC, credit should be given to all those who contributed positively, in one way or another, to the democratic freedom that all of us living in the country enjoy today.
The doors of opportunity and, ultimately, of prospects for more equitable growth for the people of South Africa have been opened through the transformation of tourism, which has arrived. Tourism is the people - that is what our Minister says. Allow me to add that tourism is heritage, tourism is landmarks and tourism is history that you can see and feel.
I am not too sure whether we should be worried about the key perception areas such as crime, underdeveloped rural areas and youth unemployment - which, in summary, are the areas the country seems to be worried about - if we can venture into tourism, which does not necessarily need specialised skills and capacity, without lowering standards. Whether it is linked to the lack of job opportunities or expected investment in those areas, I am not too sure.
Sukumani sakhe [get up and let's build] means doing things with our people, not doing things for our people. Our President's state of the nation address directed all departments to improve their turnaround time in paying service providers within 30 days - these are mainly black emerging service providers. Let us walk the talk in supporting emerging small tourism businesses.
We are encouraged that our government has placed rural development at the top of the agenda. A meaningful amount of money has been allocated for infrastructure development, which will change the state of the rural road, rail and information infrastructure drastically. This, in turn, will increase the numbers of international and domestic tourists visiting our mountains and historical nodes and sites.
Interdepartmental, intergovernmental and local government partnerships can improve tourism for the whole country - other members also alluded to this. On matters such as zoning and rezoning, local government bylaws should be geared to encouraging the growth of the hospitality industry, especially if we want to see meaningful transformation of tourism in this country. However, the Department of Tourism should remain the custodian of such a programme.
Not very long ago a European embassy held a workshop where they invited SA Tourism and the department to present our South African strategy, with a view to linking it with their office. Maybe we should look at expanding this gesture to other embassies. This will ensure that South Africa's international integrated tourism approach is realised. Collaboration and having integrated or joint calendars for domestic or international road shows will ensure that South Africa is a preferred destination.
We welcome the launch of the National Rural Tourism Strategy in the Cederberg Municipality by our hon Minister, which other members have captured very well in their speeches.
The department has performed quite well. However, we still have to pay attention to empowering the tourism sector financially, as well as to training and mentoring, to ensure change and the transformation of tourism in South Africa. Tourism incubators might be the route to take. The Tourism Enterprise Partnership has good intentions, but we seem to be receiving mixed feedback from the ground. Is it as effective as expected? Our learning institutions should be encouraged to embark on study tour programmes to increase the number of future domestic tourists who are proud of and rich in their appreciation of our country's historical nodes and sites.
Achieving a geographical balance in the use of conference space must be promoted and put into action by government, or championed by government departments in the first instance, in order to ease the burden of big cities which are congested with those programmes or activities.
Moving forward, would it be better if grants and loans were handled closely by the Department of Tourism to ensure faster transformation?
In January 2012 South Africa's results regarding tourism and migration indicated that the volume of arrivals had increased by 1,4% for the period December 2011 to January 2012. However, departure volumes had declined. From March 2011 to March 2012, there has again been a noticeable increase, namely 6%, in international arrivals - excluding domestic tourism, in other words. This is a good sign of value for money invested in international marketing by SA Tourism, notwithstanding the recession, which the Deputy Minister alluded to. Compared to other international countries, which have not managed to go above 3% on aggregate, this is a meaningful achievement for a developing country.
New partners bring new markets. Previously we have focused mainly on Europe and the USA. Currently, with our new Brics arrangement, we have gradually made greater inroads into Africa, which is one of the fastest growing areas in tourism. This will encourage and also change the face and the landscape of tourism in our country.
Transformation is embedded in the department's policy and strategy development framework, and it is the key point of my input today. I would like to pose a few questions to the House. Is there a monopoly in travel agencies? Who does travel packages? Should government not ring-fence tourism services to ensure transformation and impart experience and credibility to small emerging agencies? Should government encourage joint ventures between big and small tourism establishments? Should the twinning of well-established hotel industries with, in particular, bed and breakfast establishments owned by blacks be aggressively encouraged?
As the ANC we move once more that the budget be supported and approved.
Sihlalo, sengizohlala phansi, masizibongele ngethuba enisiphe lona ekuqinisekeni ukuthi kuba khona izinguquko ezibambekayo kwezokuvakasha nokungcebeleka kuleli lizwe laseNingizimu Afrika. [Chairperson, before I sit down, thank you for the opportunity given to us to ensure that there's considerable transformation in the tourism and entertainment industry in this country.]
Tourism is the people and transformation is about the changing the landscape of South African tourism.
Chairperson, let me acknowledge the support of my friend, Christine Mohale, the convener of the North West Women's League, and that of my colleagues from the North West.
Chairperson, hon Minister, hon Deputy Minister, chairperson of the portfolio committee, Members of Parliament, stakeholders of the Department of Tourism, ladies and gentlemen, I would like to start by acknowledging the progress made by the department by doing an analysis of the previous structure and ensuring that things that needed urgent attention were flagged. The road to success requires one to evaluate past occurrences, which include successes, failures and areas of intervention. It is also pleasing that these steps were undertaken in the early stages, because this will go a long way in ensuring that a strong foundation is laid and also that government priorities are met. The role that is to be played by tourism in the country, as identified in Industrial Policy Action Plan 2, is crucial and cannot be overlooked. This is why constant monitoring and evaluation of these changes need to be undertaken in the near future. In the light of new trends that have developed as a result of a number of global instabilities, visitor patterns have evolved. It is only through conducting research and developing country profiles that we as South Africans can benefit from these shifts. These country profiles should be superseded by profiles that we already know, based on our marketing strategies and identification of core markets.
It is also important that we capitalise on our bilateral and multilateral co-operation agreements, such as with Brazil, India and China, as well as with Africa's emerging markets. Statistics on arrival figures have shown significant growth in regard to of our emerging markets, such as China and India, but growth in our European markets has stagnated. This does not mean that there is a decline in visitors from that region, however. This information brings a sigh of relief because it means that even though we have limitations when compared to our competitors - such as a small marketing budget and long-haul flights - we are still able to experience positive growth.
I mentioned earlier that the lessons we have already gathered through SA Tourism should not be watered down but should be incorporated into strategic policy directives that will guide approaches to our international markets. International platforms such as the UN World Tourism Organisation and World Travel and Tourism Council are very important in the growth and development of tourism in a country. It requires the custodian, which is the Department of Tourism, to develop strategies that will allow the country to leverage positive fruits from them. It is also important to note that it is through these forums that we are able to influence decisions with regard to aviation, taxes on international travel, climate change and security risks. It is for this reason too that I would like to acknowledge the role that is played by the department in these forums.
It is also important that we note and appreciate the work done by the Department of Tourism and the Department of International Relations and Co- operation, Dirco, in coming up with a strategy that acknowledges the overlapping roles between the national Department of Tourism, Dirco and the Department of Trade and Industry, DTI.
Also, for the department to effectively contribute to this fourth Parliament's priority of decent jobs and sustainable livelihoods, cohesion needs to be fostered. This should also be the case with the role played by SA Tourism in the international tourism programme. As the committee we will continue to flag any issues of concern to help keep the department focused on achieving these priorities.
The department has been productive in the past year, with the exception of a few challenges here and there, and the new tools that have been developed bring hope for change. These include the new structure, the new Tourism Bill which is still to be passed, and the new platforms that have been created, such as the National Convention Bureau.
Currently, other challenges that affect international tourism growth include issues such as insufficient market insight, inadequate strategic approaches, the global economic recession, insufficient air access, and the fact that international agreements have not been implemented and monitored. These shortcomings will have to be approached in this financial year and, through proper co-ordination with the relevant stakeholders, the department should be able to make a positive contribution to international tourism growth and development, thus increasing tourism's contribution to the gross domestic product, GDP, and, ultimately, to the country's job creation agenda.
Mutshamaxitulu, handle ko heta nkarhi wa njhekanjhekisano, eka masikunyana lama hundzeke ha ha ku heta ku tlangela Siku ra Ntshuxeko. Van'wana va vula leswaku a va swi voni leswaku xidemokirasi xi tisile yini. Hina ha swi vona eka vupfhumba bya matiko hinkwawo. Vanhu va kota ku kuma mapasi yo endza va huma va ya ematikweni man'wana. Khale a va nga koti ku suka laha va tshamaka kona va ya hambi ekusuhi, xikombiso, kwala Pitori. Leswi hi swin'wana swa leswi hi kombaka leswaku xidemokirasi xi kona laha Afrika- Dzonga.
Namuntlha hi tshamile laha hi katsanile ni valungu lava van'wana va humaka ematikweni ya le handle hambileswi va titsariseke leswaku i vaakatiko va Afrika-Dzonga. Leswi hi swin'wana swa leswi hi kombaka leswaku hi nyikile vanhu xiyimo xa vuakitiko leswaku va va vanhu va Afrika-Dzonga. (Translation of Xitsonga paragraphs follows.)
[Chairperson, without wasting any more time in this debate, in the past few days we have just finished celebrating Freedom Day. Others say that they don't see what democracy has brought about. We see it in international tourism. People are able to get passports to visit other countries. In the past they were not able to leave their places of residence, even to visit nearby places, for example, there in Pretoria. This is one of those things that indicate that we have democracy in South Africa.
Today we are seated here together with whites, some of whom hail from foreign countries, although they are registered as South African citizens. This is one of those things that indicate that we have naturalised people to become South Africans.]
With those words I would like to move that we support the department's budget and hope that the department's progress in regard to the aforementioned challenges will further advocate for budgetary increases. [Applause.]
Chairperson, hon Ministers, hon members, ladies and gentlemen, ours is an awesome country. We live in one of the most beautiful lands on Planet Earth. We are blessed and endowed by nature with enviable gifts, such as a rich biodiversity, valuable natural resources, a vast array of plant and animal species, rivers, lakes, oceans with sunny beaches, towering mountains and a thriving multicultural, multiethnic, pluralistic society to add colour to them all. Historically speaking, we are the custodians of the cradle of civilisation and, more recently, the architects of a political legacy second to none, when we arrived at the time of the rainbow nation in 1994.
These are our priceless assets, yet South Africa has a meagre market share of just about 1% of the almost US$1 trillion foreign tourism market. However, I'm not saying this is an indictment of your department, hon Minister. Is is not ironic, relatively speaking, that tiny little island nation states, like Mauritius, and others like the Maldives, which consist of hundreds of little atolls, have managed to continuously capture the imagination of global tourists? Compare what we have to what they have to offer in regard to places of interest to tourists, etc. Yet they manage respectively to sustain their small economies primarily through their tourism industry, which is no mean feat.
We need to ask ourselves, and we must ask, what it is that they are doing right and we are not. In spite of all our strengths, which I've just explained, why are we in danger of lagging behind in the global tourism market? These are critical questions and the answers may assist us as we seek solutions to the numerous challenges we face in a highly competitive global tourism market. They will also guide us in the formulation of plans, enabling legislation and policy for the growth and promotion of tourism in our beautiful country.
It is my considered opinion that the answers to the questions I am posing will surely include the following three things, among others. I say again and I emphasise that this is not an indictment of your department but of the industry and the tourism sector. The first is service excellence and work ethics; second is appropriate skills and capacity; and third, very importantly, is an appropriate budget accompanied by unwavering political support. That is what we are lacking. A cursory glance at our tourism sector will unveil a deficit of all three enumerated factors.
The UN World Tourism Organisation predicts that more than 1 billion people will travel to other countries in this year alone. We must capture and harness this great opportunity to create much needed jobs in a growth market. The World Tourism Organisation's estimates will reach approximately 1,8 billion international travellers by 2013.
Given the fact that tourism is considered to be one of the key economic drivers in helping to reduce unemployment and poverty in our country, we must not, and simply cannot, afford to miss this boat if we are to meet our National Tourism Sector Strategy targets. These have been set in line with the vision of the New Growth Path, which expects this department and the tourism sector to create 225 000 jobs by 2020, as well as to increase the sector's contribution to the national GDP from an estimated R189,4 billion in 2009 to R499 billion by the year 2020.
The DA considers the tourism sector, being the fastest growing sector in South Africa, as having the greatest potential to create job opportunities for our youth, many of whom are unemployed today. It could empower the youth by giving them the necessary skills and experience and the required confidence for future employment. However, this will require a collective effort and, as my colleagues from the committee have also emphasised, greater synergy and co-operation among the various relevant government departments, especially the departments of Home Affairs, International Relations and Co-operation, Trade and Industry, Basic Education and Higher Education and Training, as well as very meaningful support from the private sector.
First and foremost, it is important that we do both an internal skills audit of the Department of Tourism itself, and skills audits across the tourism sector in general. I draw your attention to this, Minister, but I'm new to this portfolio and you may have done so - I don't know. We must do these audits in order to identify the existing skills gaps. The fact that we have a capacity problem and skills gaps within the department is evident from the fact that we have dedicated almost - if I may say so - R29 billion from the budget programmes to meeting the expenses of consultants.
Information gleaned from such a skills audit can then be communicated to the Departments of Basic and Higher Education for inclusion in their curriculum design and admission policy processes. Subjects that address these skills can be seriously adopted and offered at school and tertiary level and fed into the FET colleges. I believe they are currently offered as an undesignated subject at high school level. For me, this is an indication that tourism is not taken seriously enough.
We must capture their imagination and direct the attention and interest of these young minds towards tourism in general and to the industry in particular, as some of my colleagues have said. We must inform them of the various programmes. It's no use simply having these programmes - do young people know that they can access them? That is the question. So, we must inform them of the various programmes being offered by the department for their benefit. There are programmes like the National Youth Chefs Training Programme, the National Tourism Careers Expo and the Hospitality Youth Initiative, all of which are designed to contribute to skills development and job creation.
In conclusion, the success of our tourism industry will depend on the continuous availability of well-skilled, well-trained, well-mannered, proudly South African men and women with a real passion for service excellence at every level - from the top to middle-management level and then right down to the ordinary worker in the sector. This must be achieved if we are to attract more people to visiting our beautiful country. This can be achieved if government puts its money where its mouth is. It can be achieved if all the stakeholders come to the table. [Applause.]
Chairperson, Minister, Deputy Minister ...
...MaRhadebe, nisebenzile, nkosikazi. I-ANC, ngolwimi lwesiXhosa, iyalwamkela olu hlalo-lwabiwo-mali lwalo nyaka, nemigaqo-nkqubo ethiwe thaca leli sebe kulo nyaka-mali. Silwamkela sikhwina, kodwa loo nto ayithi masingazami ukuqoqosha, sikusebenzise ngononophelo esinako silisebe. (Translation of isiXhosa paragraphs follows.)
[... MaRhadebe, well done, Madam. The ANC supports this year's Budget Vote, and the policies that have been tabled by this department in this financial year. We support them, and although we are not disheartened, that does not mean we must not be economical and spend what we have as a department wisely.] Frugal measures and austerity dictate in the prevailing global economic turbulence.
Having appraised the constructive and invaluable articulations by my colleagues, and observations made by the hon Mam' uNjobe, Shah, Farrow, Mam' uZikalala and Swart, there's nothing much that one can say, save that their inputs are salient and pertinent.
Ndifuna ukubhekisa kuwe sihlalo. Ndineenyangana nje ezimbini okanye ezintathu ndikule komiti ijongene neli sebe ... [I am referring to you, chairperson. I have been serving in this portfolio committee for only two or three months ...]
... but something that I truly appreciate is the co-operation that has been spearheaded by your leadership, and your skill in putting us together, so that we see with one eye and hear with one ear.
We have been on this long journey together. The year 1994 brought about liberation for all South Africans, black and white. We were all there. The ANC, as a liberation movement, fought not only for black people but for all nationalities, including whites, even those who sanctimoniously espoused apartheid as a God-approved tool of dominance and oppression.
The question today is: Have our national policies and programmes addressed the prejudices and socioeconomic imbalances of the past? Have our imaginary insecurities not bred despondency and defence mechanisms that tend to reinvent racism and ethnic-sectarian economic and social exclusion? In so doing, have they systematically and deviously used the very laws and policies of liberation to reincarnate the tribulations and evils of the past? Intolerance among South Africans and restiveness among the youth are concerns. It would be an indictment of us here present if we did not arrest this nemesis.
The President, in his state of the nation address, laid the foundation. In response, the Minister and the department tabled before us their strategic plan and the tools of their trade. It is for us to monitor and oversee the inputs and the outcomes of their implementation.
The White Paper on tourism highlights reconciliation, socioeconomic empowerment and equity, as espoused by the ANC, further ingrained in our Constitution, and piloted by Comrade Mandela in our first Parliament. Minister, we spoke about this when we came in here. We then ask: Where are we coming from and where are we going?
This then begs the question: Where do we place tourism in all of this? Tourism - and the budget before us - are a fundamental instrument for advancing our constitutional imperatives as defined by our White Paper on tourism, the Tourism Act, and the policies and regulations. These, together with the National Development Plan, the Industrial Policy Action Plan, the New Growth Path, the Tourism Sector Charter and the National Tourism Sector Strategy, in particular, bind us to co-operate with, integrate and tirelessly work in tandem with provinces, local municipalities, communities and stakeholders to achieve all these objectives. Are we there yet?
The positive audit report defines the department's commitment to performing its mandate to the hilt. Minister, I always say that self-praise is no recommendation, but we commend the department on that.
The department's Strategic Business Plan highlights the key obligations and commitments in achieving the intended projections and outcomes, as prescribed and advocated by the White Paper. Let's go back to the White Paper, because it is the foundation. Minister, when I looked at your business plan, I was quite impressed to see that everything that is contained in the White Paper is in your business plan. [Applause.]
The chairperson instructed me to respond to the correlation of adjustments made and budget allocation for the Policy and Knowledge Services programme. Mrs Njobe, I found what all members said to be accurate. Mr Sayedali Shah, I would like your attention, because you also raised issues. What is critical and so exciting is that, as they critique, members are also coming up with proposals for us to look into. I want to single out the members of the opposition parties and say that I don't see you doing it because you are being driven by your political affiliations, but because you are South Africans and you know where we come from. [Applause.]
Minister, under the particular programme that I am supposed to talk about, I have seen each and every activity that the department has committed itself to and the timeframes it has set. As a committee, we appreciate that. You indicated somewhere that 2014 was the date, but the portfolio committee requests that we also receive interim reports, so that we can move in tandem and step by step, rather than wait until then.
Minister and Deputy Minister, I commend you and your department for the work done. We are encouraged that you always uphold the principles of inclusivity, emphasise what the White Paper on Tourism dictates, and believe that tourism must be people-driven. You are working with the people instead of working for the people. You adhere to the clarion call, "Nothing about us without us". To your staff, individually, let me say that we commend your work ethic. Continue to be exemplary and adhere to the Batho Pele principle as you uphold the image of our government.
Hon Gumede, having served under your guidance the last few weeks, I can say without hesitation that your leadership is impeccable. [Applause.] The ANC supports this budget Vote.
Chairperson, I would like thank all the hon members who participated in the debate for their comments, suggestions, and positive and constructive criticism, where hon members offered that. I am sure hon members will fully appreciate that it is impossible to deal with all the issues raised in 10 or 12 minutes but I will deal with as many as I can. I will try to group issues together and we will take note of some of the issues raised. Obviously, we will discuss some of them further in the portfolio committee. I thank all our colleagues and I will deal with as many of the issues raised as I can.
I would like to start off with the issue raised by the hon Njobe on domestic tourism and link that with the question asked by the hon chairperson and the hon Farrow. She raised the issue of whether we should not have a unit, separate from SA Tourism, to deal with domestic tourism. The two questions asked - I am paraphrasing now - were basically: Did we get the full value of the money we spent?
In my personal view, we are not at a place yet where we can talk about a separate unit responsible for domestic tourism. In my view, SA Tourism is fully empowered, well structured, well budgeted and well financed enough to deal with domestic tourism as well. At this stage, to suddenly have another structure that we have to fund with new staff, new offices, etc, is not what we should do.
Having said that, let me say that what the hon member raised is an issue that we should not run away from. I would like to really confront this issue and not run away from it. The issue is basically: How do all of us - national, provincial and local government - spend our money? Let me ask the question in a straightforward manner: Should provinces and local government spend their money on international marketing? That is the question all of us should answer, whether we are in the National Assembly, the NCOP or provincial legislatures.
There is a constitutional problem here. Constitutionally, tourism is a concurrent power. Whenever we discuss this issue with our colleagues in the provinces, some of them - not all of them - actually say, "Please stop there! It is a concurrent power - we want to market our province internationally." Some will support our emerging view on this issue. I think as national government and Parliament we should seriously engage our colleagues in the other two spheres of government and ask them, "Don't you think it will be much more worthwhile if you spend your money on domestic marketing, so that we can ensure proper competition in the domestic market?" Honestly, I think that is the first stage, which we should discuss with our colleagues in the other two spheres of government.
The chairperson mentioned some examples where he thought we should have done better. One was small business development. Apart from the Tourism Enterprise Partnership - I dealt with that in my initial introductory speech - the incentives programme is also a function that we are now transferring from the DTI to our department. We are in the process of transferring that function to us. There will be an additional R400 million, which we will be able to invest in small, medium and micro enterprises, SMMEs.
Let me just deal with international marketing. The hon Maluleke raised this. She is absolutely right. We should be very careful when we look at new, emerging markets versus our traditional markets. Everybody in the world understands that in the future the numbers will be coming from the emerging markets - China, India and a few others. But it would be a major mistake if we started ignoring our traditional markets. One of the reasons we are outcompeting our direct competitors, in my humble view, is that some of our competitors have made that mistake - but that is good news for us! We would like them to continue making that mistake! The developed countries have taken almost all their money out of the traditional markets and put them into the new, emerging markets. We have opted for a more balanced approach, where we have wanted to put new money into the emerging markets. So, that is what we are going to be doing for a very long time. Although numbers in the emerging markets will grow by leaps and bounds, the spend per capita will still be in the traditional markets. Let us not forget that.
Let us also understand that there is another reality on our doorstep, one that nobody has actually mentioned: The highest spend per capita in our country no longer lies with the American tourist but with the Angolan tourist. So, not only should the African continent not be underestimated, it should be fully appreciated for what it is.
With regard to SA Tourism, the term of office of the present board will expire at the end of May this year and the new board will take over from 1 June 2012. I would like to use this opportunity to thank the outgoing board, even though we will still have a separate function where we will thank them. Let me say to colleagues here that they have been an excellent, if not the best, board that we have had in a parastatal. After six years - as chairperson for two terms and having been on the board for longer than that - Mr Jabu Mabuza will be stepping down. Mr Frank Kilbourn, who was his deputy chairperson, will take over as chairperson. Mr Zweli Mntambo, who was chairperson of the audit committee, will become the new deputy chairperson of the SA Tourism board.
Then, colleagues, in different ways we referred to the cost drivers in our department. What are those cost drivers? There are many more, but I would like to quickly reflect on three: the cost of flying; the cost of accommodation; and taxes - departure taxes, especially to the UK, and the new so-called green taxes, which I have referred to as the EU-ETS.
Just in regard to the cost of flying, if we consider what has happened in our country in real terms over the last 10 to 15 years, it is actually a wonderful success story. In real terms, it is much cheaper to fly now than it was 10 or 15 years ago. There is only one reason for that: increased competition. As government, we say, "Stop overprotection and ensure competition."
We have done that in the domestic market. But colleagues, we are not at the end of the process. I know some people get oversensitive when I say this. We must continue to increase competition in South Africa, domestically, on certain routes. Why should it be more expensive to fly from Cape Town to Kimberley than it is to fly to London? Obviously, it has to do with the size of the market and the maturity of the market.
But we must look at ways of ensuring competition on all our domestic and international routes. In 2005, we had 26 airlines flying to South Africa. Now there are around 50 airlines flying to and from South Africa - and look at what has happened to prices internationally. For us, with its being a long-haul destination, it is good news. But on some of those routes, because of the lack of competition, and obviously because we are a long- haul destination, we need better pricing structures.
As I have said, we are working with Transport to finalise the new airlift strategy. We will take that to Cabinet when it is ready so that we can make sure that all stakeholders are singing from the same hymn sheet and that none of them would like to block a more open approach and greater competition.
On the issue of accommodation, hon Farrow referred to what he viewed as overpricing. Let me just say that in South Africa there is no overpricing as a general trend. I refer the hon member to the Graham Fulton Report 2010, which concluded quite convincingly that it was not a general problem in South Africa. There were a few exceptions and the agreement with the Tourism Business Council was that they should deal with that. I know there are some people who are asking whether government should intervene here or not. Colleagues, it would be the wrong approach if government started to intervene in price controls and the curbing of prices. When there are problems with overpricing, you and I, as Members of Parliament, should shine a light on it. We should sit down with the private sector to ensure that they deal with that. That's the way to do it.
I am very confident that as a destination we are firmly within the bracket of "value-for-money destinations". We are not a cheap destination, but we are a value-for-money destination, and it was a conscious decision to position ourselves there. Some of our competitors changed their status, marketing themselves as cheap destinations, and it is not working for them. So, the challenge is to continue where we are, as a value-for-money destination.
However, let us also be honest. During the Soccer World Cup year our accommodation costs increased by almost 20%. We can't criticise the private sector responsible for building those hotels - those are long-term decisions. They probably took some of those decisions three, five or 10 years ago, and none of us foresaw the economic slowdown. The reality is that we have to deal with it as a sector. We are slowly catching up. I saw a report just this morning, from Fedhasa in the Western Cape, stating that the Western Cape had the biggest challenge when it came to dealing with an oversupply of accommodation and the increase in supply - even if the accommodation people don't want us to say that - but they are catching up. We are almost there when it comes to dealing with this.
When we deal with this issue, we must look at the whole picture. Yes, we have an increase in accommodation prices but I would like to say to the hon Farrow that the serious discussion we need to have with local government in this country is about finding the decisions that need to be taken regarding the factors that impact on those prices. Let me mention just two examples. Local rates and taxes apply to all business establishments, but increases have a huge effect on businesses in our sector. Obviously, there must be a way for those businesses to factor in such increases. The electricity price also has a huge impact on what is happening in the accommodation sector. Let us have a holistic discussion so that we don't just blame other parties. Let us try to find a solution instead. The hon member Swart asked a question relating to budget and political support, as did other members. Colleagues, let us be honest. We are not yet where we want to be, but we now have a standalone department, which we did not have three years ago. We are now one of the six pillars in the national growth plan. Tourism was never in any national growth plan of this government before. Also just look at what happened yesterday, when our President met the Indian president. He dealt with two issues and one of them was tourism! So, in my view, there is much greater political support for us.
Let us deal with the budget. Now, the last thing that I want to do and should do as the Minister is to come and say to you that I do not have enough money.
Hon Minister, you are addressing a very important issue, but time is not on your side.
Thank you, House Chairperson. Can I just conclude?
Yes, please conclude.
There is collective responsibility. Once a budget has been approved, it would be wrong to say there is too little money, because we all take collective responsibility. Yes, percentagewise our budget is smaller than those of our competitors, but we are outperforming them because they don't have the social needs and challenges that we have. We will continue fighting for a bigger budget. I will make a deal with Members of Parliament. You have new budgetary powers now. So, please, if I use mine and you use yours, maybe we can have a budget that all of us will happily take collective responsibility for! [Laughter.] [Applause.]
Debate concluded.