1. BUDGET AND EXPENDITURE TRENDS

2. OPTION 1: SELLING SOUTH AFRICA
International Tourism Marketing
Additional funding to South African Tourism will lead to an additional tourism arrivals over the 2004, 2005 and 2006 calendar years.
These tourists arrivals will increase the direct spending inside South Africa by R9,08 billion
The projected incremental tourism arrivals will create new jobs (direct and indirect) in South Africa.
More revenue for government from airport taxes and the departure levy on tourists

3. OPTION 1: SELLING SOUTH AFRICA
Tourism Enterprise Programme
Focus on tourism SMME development and support.
TEPs funding from the Business Trust ends in June 2004 and should be sustained beyond that.

4. DEPARTURE TAX International Regional Total % 2001/02 2002/03 2002/04
to date
245,247,557
320,440,200
407,599,934
17,466,498
23,028,912
33,903,676
262,714,055
343,469,112
441,503,610
30.74
28.54

5. OPTION 1: SELLING SOUTH AFRICA
SA Tourism revenue generated/leveraged from other sources
2002/03
R’000
2003/04
2004/05
2005/06
TBCSA
38 600
44 000
48 000
52 000
Business Trust
30 700
20 000 -
Joint Marketing Agreement/JV’s
8 100
29 400
32 400
33 900
Other income
29 900
56 500
58 200
59 700
Government
Total

6. OPTION 2: PROTECTION OF OUR MARINE RESOURCES
Loss on illegal and unrecorded fish landings : ± R20 billion
Monitoring Control and Surveillance has 180 staff
Gangsterism and money laundering are now common
The target is to increase the ratio from1 FCO : 60 km to 1 FCO : 5 km over
Increase human resources capacity by 420 additional staff.

7. OPTION 3: CLEANING-UP SOUTH AFRICA
Plastic bags
Life-cycle approach to plastics
“Buyisa-e-Bag” to promote recycling and jobs
SABS to ensure compliance with compulsory specifications
Plastic Federation to provide R seed funding
Levy - revenue to State ± R84 million over 3 years
Model to be extended to other waste streams e.g. tyres and glass

8. OPTION 3: CLEANING-UP SOUTH AFRICA
Thor clean-up
Total cost for clean up is ± R60 million
Government liability undetermined
Thor Chemicals committed R26 million and is open for further negotiation
Clean-up will lead to on-site thermal ‘retorting’ (as opposed to incineration) of all mercury-contaminated materials
The permanent removal of extracted mercury from society and the land filling of decontaminated waste and the full rehabilitation of the site

9. OPTION 3: CLEANING-UP SOUTH AFRICA
Greening SA campaign
WSSD legacy project (UNDP, IUCN, GEF, Gauteng)
Proposal for one national campaign in support of sustainable development efforts with single brand and message
Partnership with social partners over next 3-5 years
Potential to leverage significant donor and private sector resources
Require seed funding from government to initiate process

10. OPTION 4: INFRASTRUCTURE FOR GROWTH
SA Augulhas 25 years old and maintenance cost to increase incrementally. Replace within next 3 years.
In order to grow conservation assets, DEAT to assume responsibility for indigenous forests from DWAF for which no current budget exists.
Road subsidy inadequate for tourism demand and expansion of parks

11. OPTION 4: INFRASTRUCTURE FOR GROWTH
GSLWP : Government support will leverage tourism potential and further private sector investment
Infrastructure investment in TFCAs to leverage private sector support for regional economic growth.
Capital investment in SAWS will lead to greater revenue generation opportunities and service delivery.

12. TOTAL MTEF 2004/05 2005/06 2006/07 Allocation 1 136 526 1 116 049
Baseline increase
50 970
58 724
64 615
Option 1
Option 2
66 000
76 050
78 720
Option 3
81 588
66 349
48 205
Option 4
TOTAL

13. TREASURY RECOMMENDATION
Option
Selling SA
R10m
R32m
R38m
Protecting the Marine Env
R9m
R17m
R22m
Cleaning up SA
Infrastructure for Growth
R19m
R30m
Adjustment to baseline
R5m
R6m
Total
R50m
R100m