Chairperson, prior to our country's democratisation in 1994, we were certainly not celebrated as a tourism destination that offered a diversity of experiences and cultures to our foreign travellers or to our own domestic tourists. We did not attract large numbers of international visitors, nor did we as South Africans travel our own country to explore our common humanity. We lived segregated lives, pitted against each other because of our divisive racial policies, and a mere two decades ago many prime tourist destinations were no-go areas to the majority of South Africans.
Since the advent of democracy, our popularity as a tourism destination has grown beyond anything we could have envisioned 15 years ago. In 1994, fewer than 600 000 tourists visited our country. Last year, we saw more than 9,5 million foreign arrivals to this country, many from our immediate neighbouring countries who were still the targets of government-sponsored destabilisation in the recent past. In fact, since 1994 we have seen 48 million foreign arrivals, which is a number larger than the total population of our country.
These visitors come to South Africa because it is a destination that offers everything from natural beauty and wildlife to authentic cultural experiences, as well as world-class facilities. All of this is showcased with contagious energy by warm-hearted South Africans who passionately believe in the product they are promoting - the country we call home.
In South Africa tourism is one of the major contributors to our GDP. It employs about half a million people directly, whilst creating even more indirect employment opportunities.
The global economic downturn and its consequences need little elaboration. According to the United Nations World Tourism Organisation, the UNWTO, international tourist arrivals declined from 7% in 2007 to just 2% in 2008, which was the fourth consecutive year of strong international growth.
In this country our tourism sector has certainly proved to be more resilient than some other economic sectors, but we are not immune to the effects of the economic crisis. In 2008, we bucked the worldwide negative trend with 5,5% growth in our foreign arrivals. Furthermore, in 2008 foreign direct spend grew by an estimated 23,5%, amounting to more than R74 billion. Yet, even though we have thus far been spared the worst impacts, we are not complacent and cannot ignore the fact that our growth could slow down during this year as many of our primary markets remain in recession.
Fortunately, in the face of these challenges, we understand the importance of planning better and getting the fundamentals right. We will continue to grow, in a balanced way, our domestic, regional and long-haul markets. And if there are any questions in this regard, I will deal with them in the reply.
We will also enhance our stringent quality control regime that ensures value for money, as well as the unique selling points of our natural heritage. To build resilience, we understand that we can do even more through improved market analysis, product diversification, improved geographical spread, and the promotion of rural tourism as well as people and skills development.
Chairperson, tourism holds many benefits for our country. These can be measured in terms of, amongst other things, economic growth, job creation, foreign currency earnings, skills development, and infrastructure development. But there is a benefit of tourism that is very hard to quantify, and yet is one of the most valuable. It is the fact that tourism has helped us build bridges to the farthest corners of the world, and also, most importantly, between the people of our own country. The social capital unlocked by tourism should not be underestimated.
We have come a long way as a nation since we opened our towns, our cities, our homes and hearts to each other in 1994. The more we appreciated each other and understood our rich cultures and practices, the more we became tourists in our own country. The more we opened our eyes to the unseen beauty and our ears to the uncelebrated songs, the better ambassadors we became of all the variety that South Africa encompasses. As fellow citizens, we have a shared responsibility for our future, and I would like to encourage all South Africans to continue on this journey towards a better future for all.
Tourism has helped us learn about each other, and this learning has been the basis of understanding, tolerance and respect. It is this transformative power of tourism that we can now present to the world as we prepare to host the 2010 Fifa World Cup next year. It affords us a once-in- a-lifetime chance to show the best we have as a tourism destination, which is our people and their cultures, our natural heritage and our world-class infrastructure that fills all of us with pride.
The World Cup has not only resulted in huge public sector investment, but also in massive new investment by the tourism industry itself. Our government is investing more than R26 billion in stadiums and precinct development, transport, and ports of entry infrastructure.
In addition, our department has allocated more than R936 million of our expanded public works allocation for 2009 through to 2012 to further develop the tourism sector. Here, special emphasis will be placed on the development of rural tourism.
Through our Tourism Enterprise Partnership programme, we have already given a major boost to the fast-tracked development of small and medium-sized tourism enterprises. Since the inception of this programme in 2000, we have facilitated transactions worth more than R4 billion and assisted more than 5 500 enterprises.
Following the establishment of an independent Department of Tourism after the elections, we are now in the process of formulating a strategic vision and defining our key deliverables. We are building a re-energised tourism department with a renewed focus on sustainable, competitive and equitable tourism development and growth to the benefit of all South Africans.
I look forward to joining hands with an enthusiastic new department, stakeholders in the South African tourism industry, our provinces, and local governments in promoting our country as one of the most special tourism destinations in the world.
For me and Deputy Minister Thokozile Xasa, it is a privilege to work with an inspired management team, led by the director-general, Nosipho Ngcaba. I would also like to express the appreciation of our department to the chairperson and members of our select committee.
As we share our country with each other and get to know our fellow South Africans better, I have no doubt that our confidence and excitement about our destination will continue to grow. Tourism has indeed helped us to unite as a nation as we cross the divides that once separated us. I look forward to working with all South Africans in unifying our nation behind the common goal of promoting and proudly celebrating our country.
Chairperson, I will deal with the issues that members raise in my reply, as well as any questions they might have. Thank you very much. [Applause.]