PRESENTATION 28 FEBRUARY 2011 OUTPUT 7 THE ROLE OF LOCAL GOVERNMENT IN TOURISM DEVELOPMENT: AN INTERGOVERNMETAL PERSPECTIVE PRESENTATION 28 FEBRUARY 2011 OUTPUT 7

INTRODUCTION (1) i The role of local municipalities derives from Chapter 7, section 152 of the Constitution of the Republic of South Africa no 108 of 1996. The objects of local government vis-a-vis tourism and economic development are to promote and encourage the involvement of communities and community organizations and to coordinate infrastructural development. White paper (1996) on the Development and promotion of tourism sets out a range of roles and responsibilities of local government in fulfilling the function of local tourism, which includes but not limited to; (i)responsible land-use planning, urban and rural development; (ii) control over land-use and land allocation; and (iii) provision and maintenance of tourist services, sites and attractions, e.g. camping and caravan sites, recreational facilities (parks, historical buildings, sports facilities, theatres, museums, etc) and public services.

INTRODUCTION (2) i Tourism is highlighted as the responsibility of District Municipalities in the Municipal Structures Act, sec 84 (m) Section 78 (3) of the Local Government Municipal Systems Act of 2000 Allows a municipality to establish and fund an external mechanism such as a Regional Tourism Office to render Local Tourism Destination Marketing, Centralized Booking and Information Services. The LED planning process forms part of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000). In many LED strategies tourism is seen as a catalyst for growth

THE ROLE OF LOCAL GOVERNMENT IN TOURISM: KEY PRINCIPLES The core business of local government is the delivery of services to communities within the purview of its jurisdiction Tourism development at local level to be viewed in the context of many competing socio-economic priorities Tourism development and marketing at local level to be based on comparative and competitive advantages of a local region Tourism promotion by provinces and municipalities should not be based on destructive competition

THE ROLE OF LOCAL GOVERNMENT IN TOURISM: KEY CHARACTERISTICS Local government tourism represents the third sphere of public sector tourism, playing both a leadership and participant role. While national and provincial tourism organisations are chiefly responsible for the design and implementation of tourism strategies and national and international marketing campaigns, it is the lesser known local government authorities that often shoulder the responsibility for promoting and supporting the local tourism product. Local government also has significant impact not only the business environment but also on the natural and cultural resources in and around tourism destinations; for example: Municipal roads, lighting, water and sewerage, public transport systems, signs, and, at times, airports and ports. The provision of visitor information and funding regional and local tourism organizations. The operation of attractions such as museums, art galleries, sports stadiums, convention centres, parks, gardens, events, tours and other amenities. Enforcement of laws and regulations relating to health, safety and employment. Licensing of persons and businesses, such as tour operators, travel agencies, hotels, restaurants and others.

CRITICAL SUCCESS FACTORS Municipalities should: Ensure that core infrastructure in their areas such as water/wastewater, local roads, parks, reserves, community amenities are of high standard and can support a vibrant tourism industry Create enabling environment, i.e. safety and security, transport, etc. Improve local event and product marketing Improved grading of establishments and standardized tariffs to be obligatory Work with the business sector to promote and market local areas effectively Promote events, such as cultural or sporting festivals Have well-developed business-friendly regulatory practices, that facilitate business development in the tourism industry Undertake activities that lead to high public outcomes, while refraining from the activities that compete with private sector activities Engage in fair and equitable rating practices in IDP development forums and ensure that funding decisions lead to productive outcomes for all sectors of the community including tourism

CRITICAL SUCCESS FACTORS (Cont…) The effective and efficient supply of tourist information is fundamental to ensuring that maximum tourism value is extracted from visitors. Equally important to this supply of information are the mechanisms through which such information is supplied. As part of reaching these goals, Cooperative Governance acknowledges draft Tourism Planning Toolkit for Local Government that was launched by the Minister for Tourism and Environmental Affairs at the Local Government Indaba on Tourism in January 2009. In many ways, the Toolkit continues to make an important contribution towards advancing competence in tourism planning at a local level, such as: Assisting local authorities in their strategic and financial planning; Helping ensure the appropriate investment in infrastructure and services for tourism; and Assist with the development of community tourism plans, etc Provide research and management systems to help with the collection of tourism data, preparation of strategic tourism plans and assessment of their effectiveness Describes how relevant legislation can be used for sustainable tourism development Provides case studies as examples of good practice

TOURISM BENEFITS AT LOCAL LEVEL Support for more vibrant and active business and local communities. Economic benefits from visitor spending in the area create employment and facilities, real outlets, and services that the local population could not sustain on its own. Local employment with strong local economic multipliers and linkages Tourism can help revitalize small municipalities and create a sense of local identity and pride Attract events that give both residents and visitors the opportunity to celebrate and experience what is special and unique about their community. Promotes a brand and experience that will attract new investment and new residents, both locally and globally.

CHALLENGES While tourism brings a number of economic benefits, such as an increase in the sector’s activities it may also have significant and adverse impacts on local residents and communities, as well as on the biophysical environment. The increase in devolved responsibility, particularly in areas such as provision of basic services, isolation, resources (financial and physical), community acceptance and governance, has placed additional pressures on Council resources Low level of co-ordination and integration between national, provincial, district and local tourism initiatives

LOCAL TOURISM: THE WAY FORWARD The working relationship between national departments, provinces and municipalities outlined in the Draft National Tourism Strategy 2011 needs to be exploited at great length through, among others: SLAs and MOUs on specific areas of work Detailed high level implementation plan that cuts across the three spheres of government, which can be monitored Coordinated efforts to funding assistance for tourism projects, infrastructure, training and capacity building programmes. Greater alignment between cities and povinces with regards to developing and implementing tourism strategies that will identify priority areas for tourism development Comprehensive framework for tourism activity at local level should be developed.

LOCAL TOURISM: THE WAY FORWARD (Cont…) Distinctive high level implementation plan should be developed between DoCOG and National Tourism Department in consultation with all key stakeholders across the three spheres of government Streamlining of by-laws, levies and surcharges Promotion of national guidelines on signage The interface should be underpinned by a tourism programme and project register in order to discern synergies and trends in national tourism development with a view of better co-ordination and integration (IDPs to serve as basis) Cooperative Governance in the process of exploring catalytic business ventures through collaboration with the private sector at local level which could include large-scale tourism projects Cooperative Governance exploring turnaround strategy and interventions for underperforming municipal resorts

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