An independent analysis of the 2012 State of the Nation Address relating to tourism Presented by Dr Reedwaan Ismail Head of Department: Strategic Projects & Initiatives - CPUT 1

Overview of SoNA Tourism In 2009 the National Planning Commission produced a National Development Plan for South Africa which addresses the elimination of poverty and inequalities. The President’s call in his address was for job creation in order to eradicate poverty. We should not forget that 2011 was declared the year for job creation. Since the job fund began operating in June 2011, an amount of one billion rand has been committed for job creation. As part of its oversight exercise, the portfolio committee could request the NDT to conduct a survey to produce statistics on the number of jobs that were created since 2011 with respect to the Tourism Industry as well as determining the number of tourism related businesses which have applied and received funding. 2

Overview of SoNA Tourism The President mentioned that under section 12(i) of the Income Tax Act, R 20 Billion of incentives was made available to support new manufacturing projects. Furthermore, it was mentioned that seven projects with an investment value of 8,4 billion rand was approved. Indeed, here exists another opportunity for communities to apply for funding to manufacture clothing, memorabilia, arts and crafts, footwear and leather items for tourists consumption. The tourism sector should not forego this opportunity to apply for funding and utilize it for job creation. 3

Overview of SoNA Tourism In 2010 the New Growth Path Framework identified tourism amongst others as job drivers. The Green Economy Accord that the President referred to in his speech should be adopted by tourism stakeholders in an effort to commit business to develop benchmarks to support the idea of creating jobs. The Minister for Economic Development, Mr Ebrahim Patel stated that “ the green economy can create a large number of jobs…. and help to create a sustainable future for this and the next generation”. Higher Education Minister Blade Nzimande said his department was pulling SA's universities and its Sector Education and Training Authorities (Setas) together to ensure that their projects supported the green economy by, among other things, growing the number of artisans in the country. The tourism industry should come on board and develop a framework policy on how it envisages to give effect to the objectives of the Green Economy Accord. 4

Overview of SoNA Tourism The President confirmed in his speech that dialogue between business, labor and the community sector indicate that the unemployment rate came down from 25% to 23.9% is attributed to a number of new jobs that were created. Already 10 billion rand has been set aside by the Industrial Development Corporation for job creation. The NDT should encourage tourism businesses to apply for such funding with the aim of creating more jobs. 5

Overview of SoNA Tourism President Zuma mentions education in ten different places in his 2012 SONA speech. From the statistics mentioned by President Zuma, the grade R enrolment increased from in 2003 to in I therefore propose that not only do we invest in producing more teachers who can teach mathematics, science and African languages, but that we also promote tourism education at schools. Every student after matriculating should have an appreciation of tourism and understand how it contributes to the GDP of the country as well as the potential it has to create jobs. 6

Overview of SoNA Tourism President Zuma states in his speech that “with regards to HE we are exceeding targets”. According to the President learners were placed in workplace learning opportunities over the past year. The Tourism & Events Department at the Cape Peninsula University of Technology has a 100 % success rate of placing students undertaking their in-service training in the tourism & events industry. 7

Overview of SoNA Tourism I made reference in my presentation in 2011 that the Tourism Department ought to host a tourism conference. I want to commend the Portfolio Committee on Tourism for hosting a summit on 28 February 2011 where a number of our tourism students from CPUT were invited to attend. In this regard the FoB at CPUT will be hosting a seminar on the state of tourism research in the country and at HE Institutions. We will be extending amongst other invitations to the Minister of Tourism and the Chairperson of the Portfolio Committee to address us at this important event. The Tourism Seminar will take place on Thursday 24 May 2012 at the Hotel School in Granger Bay. We intend signing the Memorandum of Understanding with the NDT and CPUT at this event. 8

Overview of SoNA Tourism President Zuma in his 2012 SONA address announced that a number of heritage projects will be initiated to promote social cohesion. In my overview of SONA in 2011, I mentioned that a National Heritage Route – celebrating icons who contributed to the liberation struggle and also Cultural Tourism should be promoted on the Cape Flats. I propose, for example, the construction of a museum as a heritage project on the Cape Flats where the heritage of its people is showcased so that tourists undertaking the cultural tour of the Cape Flats can experience this unique offering. 9

Overview of SoNA Tourism In my overview of SONA in 2011, I mentioned that more resources should be directed to small businesses by merging: Khula SA Micro Finance Apex Fund Industrial Development Corporation IDC’s small business funding It is pleasing to note that the President in his 2012 SONA address mentioned that “progress has also been made in amalgamating small business institutions, and a new entity will be launched in 2012”. 10

Overview of SoNA Tourism In my overview of SONA 2011, I mentioned that tourism infrastructure on the Cape Flats should be developed & Cultural Tourism should be promoted. In this regard the final draft of the National Heritage and Cultural Tourism Strategy serves to guide and provide strategic direction to the development and promotion of heritage and cultural tourism in South Africa. I am pleased to note that the President in his 2012 SONA address invited all of us to join government in a massive infrastructure drive. This initiative must be welcomed and I believe tourism can benefit from this massive infrastructure development. 11

Overview of SoNA Tourism In my overview of SONA 2011, I mentioned that cruise tourism should be promoted. The Market Demand Strategy of Transnet as mentioned by President Zuma will be investing 300 billion rand in capital projects. At least 100 billion rand will be earmarked for projects in the ports. As an example, on 24 January 2012, the Queen Mary II berthed at Duncan Dock with visitors on board for a period of three days. The opportunity exists for passenger cruise liners to dock at Cape Town Harbor as soon as the necessary infrastructure have been developed. Passenger cruise liners have the potential to create a number of jobs for tourist guides, emerging tour operators as well as benefit the tourism value chain. 12

Overview of SoNA Tourism In my deliberation in 2011, I stated that the Tourism Portfolio Committee should lobby structures such as the African Union – AU, New Partnership for Africa’s Development – NEPAD, Pan African Parliament – PAP and the Southern African Development Community – SADC to market SA on the African continent. I am pleased to state that President Zuma in his 2012 SONA speech mentioned “The Presidential Infrastructure Championing Initiative”, that is the North – South Road and Rail corridor which can be used by Tourism marketers to promote Africa as a destination rather than only South Africa. This will create a sense of value in the mind of the tourist. This initiative will afford tourists a larger variety of tour itineraries to select from. Furthermore, the President alluded to the enormous potential along the West Coast of the country and the need to improve infrastructure to unlock this potential. Research should be undertaken to investigate the tourism potential available after the improvement of the infrastructure of the West Coast. 13

Overview of SoNA Tourism In my assessment of SoNA 2011, I stated that “Tourism is to be boosted by improving tourism infrastructure and hosting more international sporting events”. Well the President informed us that we will be hosting the Africa Cup of Nations in

Overview of SoNA Tourism In summary… The Tourism Industry has the potential to create jobs and funding is available to support it. The Green Economy Accord can create a large number of jobs. Tourism Education is a key stimulus to job creation. Tourism research should be promoted. Heritage & Cultural tourism to be promoted. Cruise tourism has the potential to create jobs. Promoting Africa as a tourism destination will create more opportunities. 15

2012 SoNA – Impact on Tourism Portfolio Committee Continue with oversight visits to tourism initiatives and projects to monitor progress and compliance with strategic and annual plans of DoT. Monitor Government’s adherence to the call for job creation through meaningful economic transformation & inclusive growth. Job creation should enhance youth development. DoT and National Youth Development Agency & Private sector should facilitate youth development in Tourism programmes & promote youth tourism enterprises. The DoT, private sector and tourism stakeholders should develop strategies for sustainable tourism development specifically in respect of small businesses. The portfolio committee should create space for public discussions on a range of topics, including: sustainable tourism development, public private partnerships, creating business opportunities for small businesses, creating public awareness and appreciation of the tourism sector, making the tourism sector attractive for visitors and locals, environmental and socio-cultural impact of tourism. Evaluate DoT policies and programmes on sustainable tourism development and poverty alleviation. Commission research to investigate whether a regulatory framework within which a code of ethics can be developed for the tourism sector. Explore ways in which rural areas, townships and the Cape Flats can be made more attractive and accessible for the international visitor. The economic advantages of tourism as a major source of income and employment leads to its active promotion by governments all over the world, often at the expense of the environment. Thus, the portfolio committee could identify best practices in sustainable tourism development in developing countries. 16

Conclusion I would like to remind all of us of the appeal made by the President in his concluding remarks. “I would like to appeal to all our people to join hands as they always do, as we deal decisively with the triple challenges of unemployment, poverty and inequality. Nobody will do this for us, it is in our hands. And we are all equal to the task” Thank you 14 February