Hon Chairperson, hon Minister and members of this House, the aim of this department is to create amicable conditions for sustainable tourism growth and development for the benefit of all South Africans. The success of the 2010 Fifa Soccer World Cup tournament has provided us with a sound basis on which to boost SA Tourism locally and abroad. The department has come a long way, but much more needs to be done to ensure that all South Africans do indeed enjoy the benefits of tourism.
With an allocated budget of R1,242 billion for 2011-12, the Department of Tourism has to contribute about R118 billion to the country's gross domestic product, GDP, by 2015. In addition, this 0,25% of the total government budget is estimated to contribute 7,7% to GDP. This is a tall order for a limited budget.
As stated time and again by this department, domestic tourism is the backbone of the sector. Yet, the department is somewhat wanting in this area. In South Africa, foreign visitor arrivals still generate a larger tourism spend than the domestic market does, and thus the dependence on foreign visitor arrivals renders the industry vulnerable.
Poor planning and co-ordination between the three spheres of government means that billions are spent without the necessary results. In addition, the lack of specific budget allocations to the development of tourism at the local government level is problematic and results in low-impact projects and unsustainable initiatives. This has to change. Nevertheless, we are glad to see that the programme on policy, research, monitoring and evaluations has received an increased budget of R26,9 million. Hopefully, more research and monitoring will lead to better performance, especially regarding domestic tourism.
A target of 225 000 jobs by 2020 has been set by the department. While tourism has great potential in regard to labour absorption, currently only 48% of citizens participate in domestic tourism. The culture of travelling in South Africa must be cultivated in order to stimulate job growth. Our marketing strategy should target all races and ages in order to stimulate growth and awareness within the various communities.
Tourism features very low among the priority outputs of local municipalities, because of other top priorities, of course. In order to uplift tourism in rural areas, cultural tourism is important. Municipalities will have to be given incentives to maintain cultural and geological sites for this to be a success, and in order for these sites to remain attractive.
The 2009 Domestic Tourism Survey indicates that the average spend per trip for a domestic business traveller is R2 340, in comparison with the R730 average spend per domestic trip in general. So, the value of business tourism in South Africa is also vital for significant growth in the domestic sector. I am happy the Minister mentioned the importance of business tourism.
Peter Bacon, the previous CEO of Sun International, stated that South Africa's image has changed from being a "low-cost, high-value" destination to one that is "high-cost, low-value". In order to change this, aggressive marketing is essential. Marketing is crucial in order to attract tourists from long-haul markets. South Africa's joining of the Brazil, Russia, India and China, or Bric, bloc, should be fully assessed and utilised. Brazil, South Africa, Russia and China are all among the fastest-growing countries as international tourist destinations.
With regard to local tourism, research shows that the safety and security of tourists represents the biggest deterrent to aggressively growing tourist arrivals over the next five years. It is therefore critical to avoid bad publicity when marketing South Africa and certain areas, particularly the townships.
Currently, it takes 16 tourists to create one job in South Africa, compared to the international average ratio of 8:1. Now, to meet President Zuma's goal of creating five million jobs by 2020, tourism will have to grow four to five times. It is the responsibility of all relevant departments, as well as the private sector, including the small, medium and micro enterprises, SMMEs, to achieve this goal. In other words, we are saying it is not the responsibility of the Department of Tourism alone to ensure that this is achieved.
I am happy to hear that the Minister mentioned a specific budget for the Expanded Public Works Programme, EPWP, because this is one of the mechanisms through which jobs must, and can, be created. The divide between rich and poor within the industry is wide. It is therefore vital that assistance is provided to SMMEs through established business in the form of knowledge and other support. Co-operation among the various entrepreneurs is also vital.
Climate change is one of the main centrepieces of global politics today. We agree with Minister Van Schalkwyk, and I would like to quote him. He said that by going -
... beyond talking about sustainability and biodiversity, and (taking) the lead in creating low carbon cities, a competitive advantage can be created for South Africa.
Nevertheless, such initiatives should go hand in hand with proper funding and planning.
The legacy that Fifa 2010 left behind in terms of infrastructure is profound. Infrastructure development and infrastructure upgrading is a necessity if the department wishes to encourage domestic and international travel. Co-operation and proper planning is therefore essential between the various departments.
Therefore, for the Department of Tourism to be successful in reaching its goals, participation is needed from every corner of South Africa. Tourism is one of the most effective tools that South Africa can use to create a better life for all. Through streamlining marketing processes and having better co-ordination between the three spheres of government, this industry can go even further. I thank you. [Applause.]