Tourism and Local Government Douglas Cohen July 2010 Economic Development & Planning Directorate

The purpose of the presentation is to inform to the Portfolio Committee about the South African Tourism Sector and it relates to the experiences and challenges at Local Government. To provide an overview on the impact of the implementation of tourism national plan for the local sphere of government. To invite comments for further debate and discussion the opportunities and challenges of tourism for Local Government. Purpose

About SALGA Introduction for Presentation Local Government & Tourism 7 Points related to Local Government Tourism Support National Tourism Sector Strategy & Action Plans Key Local Government Comments on the NTSS Action Plans Overview

THE PLAYERS: A VAST ARRAY OF INSTITUTIONS, WITHIN WHICH SALGA HAS TO CRAFT ITS UNIQUE ROLE National Provincial Other COGTA Treasury Presidency DME DEAT dti NDOH Tourism Premier’s Office Local Government Departments DBSA FFC Donors World Bank Civil Society UCLGA CLGF Etc... Municipalities S A L G A SALGA’sPositioning

R epresent Support Advise Governance & IGR ANALYSIS Infrastructure and Municipal Services Economic Development and Development Planning Municipal Institutional Development SALGA’s three key main roles cut-across to underpin its 5-Year Strategic Objectives & Programmes Strategy, Policy and Research Finance and Corporate Services VISION To be consultative, informed, mandated, credible and accountable to our membership & provide value for money Provincial Programmes SALGA’s Organising Framework Community Development OCEO

About SALGA Introduction Local Government & Tourism 7 Points related to Local Government Tourism Support National Tourism Sector Strategy & Action Plans Key Local Government Comments on the NTSS Action Plans Overview

Local government tourism represents the third sphere of public sector tourism. 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 products. Introduction I

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 organisations. ―The operation of attractions such as museums, art galleries, sports stadia, convention centres, parks, gardens, events, tours, and other amenities. ―The tourism sector as it contributes to the social, cultural, economic and environmental well-being of an area in the following ways: Introduction II

Introduction III Promotes a brand provides an experience that will attract new investment and new residents, both locally and globally. Attract events that give both residents and visitors the opportunity to celebrate and experience what is special and unique about their community. Tourism can help revitalise small municipalities and create a sense of local identity and pride Economic benefits from visitor spending in the area create employment and facilities, retail outlets, and services that the local population could not sustain on its own Support for more vibrant and active business and local communities.

About SALGA Introduction Local Government & Tourism 7 Points related to Local Government Tourism Support National Tourism Sector Strategy & Action Plans Key Local Government Comments on the NTSS Action Plans Overview

Local Governments Expectations From… National Department of Tourism Access to funding assistance for tourism projects, infrastructure, training and capacity building programmes Improved grading of establishments and standardised tariffs to be obligatory Uniform regulations, e.g. rezoning costs and planning conditions Provide greater access regarding information on government resources, such as global trends research Create enabling environment, i.e. safety and security, transport. Improved local event and product marketing Identify best practice, document and disseminate it Local Government and Tourism

Local Governments Expectations From… Provincial Tourism Departments & Agencies Signage Review red tape around the signage (clearer guidelines/expedite processes) Share research into local and regional trends Identify best practice, document and disseminate it Identify corridors and routes Greater alignment between Cities and Province with regards to developing and implementing tourism strategies Share in Local Government challenges Access to funding assistance for tourism projects, infrastructure, training and capacity building programmes Assistance in transformation of the tourism industry Guidelines, Booklets etc to assist aspiring and emerging tourism product owners Local Government and Tourism

Local Governments Expectations From… SALGA Facilitating role between municipalities Knowledge sharing, i.e. identify best practice, document and disseminate it Access to research, such as the statistics of legal and illegal tourism accommodation activities Capacity building, such as with Tourism and LED officers. Funding Assistance for Training Programmes and Tourism Marketing Uniform regulations, e.g. rezoning costs and planning conditions Local Government and Tourism

About SALGA Introduction Local Government & Tourism 7 Points related to Local Government Tourism Support National Tourism Sector Strategy & Action Plans Key Local Government Comments on the NTSS Action Plans Overview

Many municipalities have been tasked with a developmental agenda. This includes the formulation, review or implementation of Local Economic Development (LED) strategies. ―The LED planning process forms part of the IDP process as contemplated in the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000). In many LED strategies tourism is seen as a catalyst for growth. # 1: Local Economic Development & Tourism I

However in reality… ―Tourism as a LED sector would be not relevant for certain municipalities. ―The focus and needs of a Metro would be very different from smaller towns and/ or rural villages, therefore there is no “one-size” fits approach. ―The success factors that result in good LED also relate directly to tourism:  Political buy-in and oversight (too much or too little)  Ongoing public private partnership and dialogue  Facilitation verses leadership role  Focus on the basics before expanding # 1: Local Economic Development & Tourism II Amongst the 283 local authorities there are only about 95 LTO’s and on district level and the Metros it is even worse given the few RTO’s in the country. Most of these structures barely sustainable. Amongst the 283 local authorities there are only about 95 LTO’s and on district level and the Metros it is even worse given the few RTO’s in the country. Most of these structures barely sustainable.

Tourism is a specific local economic development directive that is mandated by the Tourism Act, The White Paper 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”. 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, Centralised Booking and Information Services. # 2: Tourism Policy & Local Government I

Tourism is highlighted as responsibility of District Municipalities in the Municipal Structures Act, sec 84 (m) The Tourism Black Economic Empowerment (BEE) Charter Launched in May 2005 includes a Local Government commitment. # 2: Tourism Policy & Local Government II

An example of IDP Analysis (DEAT April 2010): ―Does the municipality exhibit a good understanding of its municipal area in terms of environmental / tourism management and planning (tools / models)? # 2: Tourism Policy & Local Government III

Tourism features very low on the priority outputs of the local municipalities due to priority needs such as water, electricity, infrastructure, housing, sport and recreation. Tourism, like Local economic development (LED) is regarded as an unfunded mandate placed on Local Government. The current lack of specific budget allocation towards the development of tourism at local government level is particularly problematic and results in: ―Non strategic / low impact projects ―Unsustainable initiatives ―“Wish lists” instead of “action plans” # 3: Funding (for an unfunded mandate)

The level of expertise and focus that municipalities have in tourism varies considerably. This has resulted in uneven visitor and community experiences. Understanding of the strategic nature of Tourism needs to be understood both by the senior politicians and officials. The arrangements that manage and direct municipalities internal coordination of tourism responsibilities: ―The organisation of internal structures to best facilitate LG’s role in tourism, ―Aligning tourism initiatives into the annual planning and budgeting cycles. ―The use of performance measurement to gauge the success of municipalities’ tourism strategies and plans. # 4: Capacity of Local Government

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. Many visitors to a local municipality will not be aware of the range of tourist activities that they could engage in while there. Tourism information centres are particularly important in the delivery of tourist information. ―The management, funding institutional arrangements around such information centres is unclear. ―Access to such information centres is currently limited. # 5: Tourism Infrastructure: Information Centres and Road Signage I

The importance of tourist road signage is often under- estimated. The capacity of Local Government to manage and fund tourist road signage is extremely limited. ―It is also difficult to understand many of the historical sites of the township without a guide given the lack of interpretive boards. There is an often a breakdown in communication between local, provincial and national with regards to the permissions and standards in Tourism signage. ―This is frustrating all parties concerned. # 5: Tourism Infrastructure: Information Centres and Road Signage II

Local Government’s involvement in a wide range of areas relating to tourism, including: ― The integration of tourism related responsibilities within the municipality, strategic planning (IDP), land use management, developing LED and tourism strategies, by-law management and enforcement, supporting and encouraging emerging service providers as well as in the resourcing and assisting of the local tourism market together with those in the industry. Local Government needs to ensure that the local infrastructure needs of tourism and communities are met and appropriately funded Often municipal tourism agencies are established to support to drive the implementation and management of tourism within a municipality. # 6: Recognition of the role Local Government plays within Tourism

The linkages (both ways) on Tourism related issues between National, Provincial and Local are weak. There needs to be improved: ―Working relationships on tourism-related issues between municipalities and regional stakeholders through collaborative alliances. ―A defined Tourism support package (resources, funding and capacity) to support Local Government ―Resources to assist and direct investment at Local Government to realise tourism opportunities. ―A knowledge and exchange platform to highlight best-practice case studies from other municipalities to encourage peer-to-peer learning. # 7: Improved Intergovernmental Alignment and Support

About SALGA Introduction Local Government & Tourism 7 Points related to Local Government Tourism Support National Tourism Sector Strategy & Action Plans Key Local Government Comments on the NTSS Action Plans Overview

PriorityFocus Areas 1 Prioritising tourism at national government level and improving inter-governmental coordination 1 Improve research and information management 3 Strengthen collaboration and partnerships within the tourism industry 4 Improving general awareness of tourism among South Africans 5 Marketing & branding (including distribution) 6 Transformation 6 Domestic tourism development 8 New market development - e.g. geographic, market-level and niche markets 9 Safety and security 10 People development for tourism and hospitality 10 Capacity building and budget allocations at local government level in tourism planning and management 10 Tourist rmation Provision 13 Improve community benefits from and participation in tourism 13 Service excellence 13 Co-ordinated product development, including in areas with untapped potential 16 Business tourism / events 17 Provide decent work in the tourism industry 18 International airlift 19 Quality assurance and Universal Accessibility 19 Investment facilitation, including development finance & enterprise development 19 Best practice in environmentally responsible tourism 22 Ground transport 23 Domestic airlift 24 African tourism development strategy, including facilitation of travel Local Government and Key Focus Areas

Local Government and the Strategic Thrusts

Strategic TrustAction Plan Research, Information and KMCompulsory registration for all tourism businesses in SA Strengthen collaboration and partnerships within Tourism Industry Ministers workshops with industry & public sector in each province Cross cutting structures at provincial and local government levels to encourage alignment and co-operation Capacity building an budget allocation at Local Government level in tourism planning and mgmt Engage with SALGA, COGTA etc to ensure Tourism is included as an important criteria in infrastructure planning and development Include Tourism in IDP’s. Investment facilitation and enterprise development Tourism venture capital fund to support tourism entrepreneurs. Simplify the regulatory requirements for tourism business holistically / across all spheres of government Business Events and TourismNational Events Bureau / One event per province Safety and SecurityTourism Awareness Training Improve community benefits from and participation in tourism Build awareness about Tourism among communities – particularly rural communities to eliminate unrealistic expectations. Local Government and the Action Plans

About SALGA Introduction Local Government & Tourism 7 Points related to Local Government Tourism Support National Tourism Sector Strategy & Action Plans Key Local Government Comments on the NTSS Action Plans Overview

Key LG Comments in NTSS Action Plans I ClusterTopicComments 1Strengthen collaboration and partnerships within the tourism industry Research indicates that the beyond their LED role, Local Government can act as a key strategic player in facilitating tourism 2Capacity building and budget allocation at local government level in tourism planning and management The current lack of specific budget allocation towards the development of tourism at local government level is particularly problematic Tourism planning and destination development can no longer function as an unfunded mandate

Key LG Comments in NTSS Action Plans II ClusterTopicComments 2Tourism Information provision The level of expertise and focus that municipalities have in tourism varies considerably Need to a more strategic understanding of the local tourism sector Functional Visitor information Centre (business) Model (LTA) Required. 2Investment facilitation, including enterprise development and development finance Fully support the rationalisation of the funding agencies Need for an improved small business support model 3Improving general awareness of tourism among South Africans A programme for Local Government i.e. politicians needs to be development.

Key LG Comments in NTSS Action Plans III ClusterTopicComments 3Ground transportationTransport plans and Tourist Transport plans by local government run the risk of not being aligned, locally and provincially. Guidance and best practices around this issue need to be shared. 4Improve community benefits from and participation in tourism Where done correctly, Tourism may improve the livelihoods of poor people in four main ways, including economic gain through employment and micro-enterprise development

Local Government, both Metro and Local Municipalities, are a key stakeholder in delivering a quality Tourism product and service (this has been recognised in the NTSS) While the institutional frameworks and policies appear in place the benefits of Tourism are not making the largest possible economic and geographically spread impact. Issues such as LG capacity, resources, intergovernmental and public private relations remain challenges. ―Provincial Models require a bottom up as well as top down strategy There are simple “quick wins” to unlock some of the red tape at and for the Local Government: ―Process / standardisation of road signage / custodian of the i-sign ―Visitor Information Centres / Local Tourism Authorities ―Tourism metrics ―Identifying, celebrating good Tourism practice (e.g. Theewaterskloof) Final Thoughts

“Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are.” James W. FrickQuestions Douglas Cohen