ANALYSIS OF THE STATE OF THE NATION ADDRESS Presentation to PORTFOLIO COMMITTEE ON TOURISM By Sibusiso Khuzwayo Content Advisor IMPACTS ON TOURISM

1.INTRODUCTION The President of the Republic of South Africa, His Excellency, Mr. J.G. Zuma presented the State of the Nation Address (SONA) on the 14 th February The address had both direct and indirect connotations for the tourism industry. This presentation serves as an analysis of the SONA to highlight implications for the Portfolio Committee on Tourism and provide recommendations.

2. ALIGNMENT OF TOURISM TO THE NATIONAL DEVELOPMENT PLAN On the 15th of August 2012, the National Planning Commission handed over the National Development Plan (NDP), the vision of the country for the next 20 years, to the President. The NDP contains proposals for tackling the problems of poverty, inequality and unemployment. The target for job creation is set at 11 million by 2030 and the economy needs to grow threefold to create the desired jobs. On the other hand, the Tourism industry has developed The National Tourism Sector Strategy (NTSS). The NTSS sets targets for a period spanning 10 years, from 2010 to 2020

Alignment of tourism to the NDP cont. There is a need to align the projections and indicators in the NTSS to the National Development Plan targets. This necessitates the extension of targets in the NTSS from 2020 to Section 4(2) of the proposed Tourism Bill stipulates that the national tourism sector strategy must at least make provision for strategies, objectives, indicators, targets, plans, guidelines, procedures and institutional arrangements relating to the promotion, development and transformation of tourism It is therefore compelling that targets set in the NTSS must be extended to 2030 to be commensurate to the aspirations of the NDP and the Bill.

3.INFRASTRUCTURE PROJECTS The President mentioned a number of infrastructure projects that government has started to implement. There was no mention of a tourism-specific project that has been implemented, in spite of tourism having been declared as one of the six economic pillars in South Africa. However, there are infrastructure needs for the tourism industry that need to be addressed to unlock certain aspects of the tourism industry, such as Beach Resorts in the coastal provinces. This calls for a strategic engagement with the PICC to ensure that some catalytic tourism infrastructure projects are funded. These need to be projects that will address inequalities, contribute to creation of decent jobs in tourism and thus reduce poverty.

4. YOUTH EMPLOYMENT INCENTIVES AND PLACEMENT It was indicated that social partners at NEDLAC have concluded the youth employment incentives and that agreement has been reached on key principles. The President also appealed to the private sector to absorb FET graduates who are awaiting placement. The Portfolio Committee needs to ascertain how the youth employment incentives will be accessed in the tourism industry. The National Department of Tourism (NDT) has to ensure that the youth employment incentives are also accessible for tourism. The private sector must be encouraged to package programmes that will absorb youth in various categories of tourism jobs.

Youth Employment Incentives and Placement Cont. The Tourism Business Council of South Africa (TBCSA), with its affiliated tourism associations must be encouraged to facilitate implementation of youth employment incentives in tourism. Training in tourism often incorporates a practical component whereby learners need to be placed in tourism establishments for in-service training. The NDT needs to work closely with the Cultural, Arts, Tourism and Heritage Sector Skills Training Authority (CATHSSETA), and private sector to ensure placement of tourism graduates from the FET graduates awaiting placement. On a more permanent basis, a “Tourism Graduate Placement Programme” needs to be developed for the tourism industry to avoid a long list of tourism graduates that await placement after they have finished the theoretical aspects of their training.

5. TOURIST ARRIVALS. The President acknowledged that tourist arrivals to South Africa grew at an impressive 10.7 percent between January and September 2012, which is higher than the global average of 4 percent last year. The growth trajectory in tourist arrivals needs to be cemented with more vibrant marketing endeavours to ensure continued growth. There is a need to consolidate gains from the emerging markets in the east and African continent whilst continuing to service the traditional core markets. The growth in international tourist arrivals must however, not overshadow the expressed need to grow domestic market. There is also a need to finalise consolidation of tourism indicators to standardise methodology of collecting tourism statistics

6. TOURISM EDUCATION On declaring education as an essential service, the President indicated that there must be an improvement in the quality of learning and teaching and the management of schools. The pronouncement by the President on quality of learning and teaching has direct curriculum implications for tourism education at basic and higher education levels. The private sector often complains that tourism graduates do not meet job market standards. There are also critical skills shortages in the tourism industry, such as chefs and sommeliers. This calls for a dialogue between the National Department of Tourism, Department of Basic Education, Department of Higher Learning and CATHSSETA on determining appropriate curriculum that will improve quality tourism education.

The re-opening of the lodgement of restitution claims, by people who missed the deadline of 31 December 1998 was mooted. The land restitution process that closed in 1998 had some negative implications for tourism. Some prime tourism development land was returned to communities without support programmes to invest and develop that land. Some land returned to communities, especially farms with elements of game farming and lodges, was also returned to claimants without operational support for the tourism activities that were conducted on that land. This culminated to these facilities ceasing to operate and consequently a decline in tourism supply. 7. LAND REFORM IMPLICATIONS

The National Department of Tourism will need to consult the Department of Rural Development and Land Reform when the process of land claims is re- opened. This must be done to ascertain if the land returned to communities has some tourism aspects to it. There will be a need to structure “Tourism Support Programmes” for tourism businesses that will be acquired by communities from the restitution process. This will ensure that tourism businesses continue to operate and produce income for the claimants and protect tourism supply. Land Reform Cont.

The President asserted to how the brutal gang rape and murder of Anene Booysen and other women and girls in recent times have brought into sharp focus the need for unity in action to eradicate this scourge. The recent rape and murder of women in South Africa has attracted worldwide media attention. The negative reports about South Africa in the international media tarnish the image of South Africa as a safe tourist destination. South African Tourism and Brand South Africa need to intensify their marketing campaigns and bombard the international audience with counteracting positive information about South Africa to position the country as a safe tourist destination of 8. NEGATIVE IMAGE FOR THE DESTINATION

The speech alluded that South Africa has just concluded a highly successful Africa Cup of Nations tournament. The successful hosting of AFCON has proved yet again that South Africa has a potential of hosting major sporting events. The Portfolio Committee on Tourism needs to engage the newly established National Conventions Bureau to ascertain if the mandate of the bureau cannot be extended to include working with the Department of Sports and Recreation to bid for mega sporting events such as Olympics. 9.SYNERGY BETWEEN SPORTS AND TOURISM

The National Department of Tourism must revise 2020 targets set in the National Tourism Sector Strategy and project them for 2030 to align tourism with the National Development Plan. The Portfolio Committee needs to engage the Presidential Infrastructure Coordinating Committee to discuss funding of catalytic tourism infrastructure projects. The Portfolio Committee needs to engage the Department of Economic Development to ascertain the roll-out of the youth employment incentives and how tourism will benefit from this initiative. The National Department of Tourism needs to work closely with the private sector and CATHSSETA to develop a “Graduate Placement Programme” for tourism graduates. 10. RECCOMMENDATIONS

South African Tourism needs to intensify marketing initiatives that consider all the market segments in order to sustain the growth trajectory in tourist arrivals. The National Department of Tourism needs to engage the Departments of Basic Education and Higher Education to revise tourism curriculum in order to address the job market. The Portfolio Committee needs to engage the Department of Rural Development and Land Reform to negotiate “Tourism Support Programme” for tourism businesses in the land that is returned to claimants as a result of land restitution. South African Tourism and Brand South Africa need to conduct constant international media campaign to provide the world with positive image of South Africa to boost destination image. RECOMMENDATIONS Cont.

The Portfolio Committee on Tourism needs to engage the National Conventions Bureau to promote sports tourism. RECOMMENDATIONS Cont.

Thank You