A TOURISM PERSPECTIVE OF THE STATE OF THE NATION ADDRESS 2015 PRESENTATION TO COMMITTEE ON TOURISM Joyce Ntuli Researcher

OVERVIEW Current unemployment rate 24.3 per cent from 25.1 per cent in the better part of the year. 3 per cent direct GDP contribution in 2013, jobs. Total contribution 9.5 per cent (R323 billion)GDP contribution in 2013, 1.4 million jobs. WTTC forecasts total tourism contribution to R478.8 billion by travel and tourism Investment in 2013, R56.8 billion. Accounting for 8.6 per cent of total South African Investment. 2

PROGRESS IN TOURISM GROWTH AND DEVELOPMENT Area of Significance Resolving the Energy Challenge More effective Implementation of higher impact Industrial Policy Action State Procurement from SMMEs Appropriate Categories Current Status Responsible Tourism Manual.2002 Imvelo Awards for Responsible Tourism (FEDHASA). Lilizela awards. Hotel Energy Solutions. Tourism Incentive Programme visa v Tourism Incentive Fund Opportunity for the Department to intensify on the skills Development. TGCSA opportunity for grading of establishment. 30 day payment period adherence 3

PROGRESS IN TOURISM GROWTH AND DEVELOPMENT Area of Significance Unlocking Potential for SMMEs, Cooperatives, Township and Rural Enterprises Skills Development and the youth incentives programme Prioritising Visa Regulations review Current Status Tourism Enterprise Partnership (TEP) support programmes on skills and business Development. Tourism Incentive Programme. Tourism and hospitality programmes that speak to skills shortages. Global appreciation on SONA announcement Conflicting views on the Review of Visa regulation. Expansion on process centres 4

PROGRESS IN TOURISM GROWTH AND DEVELOPMENT Area of Significance Encourage Private sector Investment Labour issues (Workplace Conflict and Minimum wages Bill) Operation Phakisa Oceans Economy Current Status The private sector has vastly invested in cities as it makes business sense. Incentives for investment in rural tourism infrastructure. Hospitality industry minimum wages which are improved yearly. Working conditions within the tourism sector. Youth employment incentive. Cruise tourism abandoned as the Department felt it was not feasible. Resuscitate investigations for cruise tourism benefits 5

PROGRESS IN TOURISM GROWTH AND DEVELOPMENT Area of Significance Transport and tourismFight against corruptionBack to basics programme Current Status Poor road infrastructure in certain areas of tourism significance. Tour operators permit processes riddled by corruption and take longer. Accessibility of the car rental segment by HDIs. Airlifting. EPWP projects have been better managed, SAT audit query. lack of maintenance of recreation facilities in many local municipalities, reprioritisation of tourism funding in struggling municipalities and less skilled personnel. 6

After the enactment of the Bill, the National Department of Tourism needs to revise the 2020 targets set in the National Tourism Sector Strategy and project them for 2030 to align tourism with the National Development Plan (NDP). 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. 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. That continued lobbying for high level interventions is required to assist the Yamoussoukro Declaration (YD) in fulfilling its objectives as existing bilaterals in other countries are a hindrance to the YD objective. RECOMMENDATIONS 7

South African Tourism and the Department need to intensify marketing initiatives locally and abroad and consider all market segments in order to sustain the growth trajectory in tourist arrivals. To ensure effective and efficient use of public funds a deeper analysis of the value for money should be conducted to avoid duplication and wastage of public funds. The skills challenge 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 tourism education. The Department needs to present their role and how they will ensure and align the Programmes of the Department for the attainment of goals set in the State of the Nation Address. RECOMMENDATIONS Cont. 8

The National Department of Tourism needs to work closely with the private sector and CATHSSETA to develop a “Graduate Placement Programme” for tourism graduates. Continued effort on ensuring transformation of the industry is required as there are positive spin offs from transformation. Parliament also needs to raise questions related to the community tourism projects that have been implemented; –Why certain projects have been abandoned and what are the measures that have been employed in recovering the investments in those projects? –How many of these projects are being resuscitated? And –What criteria is being used to avoid oversaturation of certain products in certain areas? 9

RECOMMENDATIONS Cont. Parliament needs to continuously agitate for intergovernmental relations with sister Departments and other spheres of Government. Parliament needs to find a way where possible to have joint meetings with committees such as Home Affairs, Transport, Environment, Small Business Development and any other committee which may have indirect consequences to the work of the Tourism Committee. Regulations for the new Act have not been drafted and Parliament should treat this as a priority in order to assist in the flow of programmes in the Department. Parliament must continue to closely monitor the EPWP project s, and also to advance questions in relation to the following: the time-frames of projects, which projects have been completed, what plans there are for future projects and whether these projects have been equipped for sustainability post- handover. 10

RECOMMENDATIONS Cont. Parliament must continue to engage the Department of Tourism on measures being employed to promote cultural tourism, and what the developments are, in attracting investors for infrastructure developments in the rural areas. Parliament needs to conduct extensive oversight over the implementation framework of the Tourism Incentive Programme Access to the tourism industry by historically disadvantaged individuals (HDIs) is still an important issue that needs to be addressed. Parliament thus needs to determine; – What measures are being employed by the Department of Tourism to assist HDIs in accessing this sector, –What support programmes are employed to ensure the sustainability of such programmes. 11

Thank You 12