1. Department of Tourism www.tourism.gov.za Department of Tourism www.tourism.gov.za OVERVIEW OF THE STATE OF TOURISM NATIONAL TOURISM STAKEHOLDER FORUM 17 September 2014

2. Purpose  To provide an overview of current trends and developments in tourism; and  To highlight areas of collaboration between public and private stakeholders and all relevant stakeholders within the tourism value chain. 2

3. Global Tourism Performance: January to April 2014  International tourist arrivals grew by an estimated 5% compared to the same period last year; i.e. 317 million tourists which was 14 million more than the same period in 2013;  The 5% growth consolidated the strong growth registered in 2013 and is above the long term 3.8% trend projected by the UNWTO for the period 2010-2020;  All sub - regions recorded increases of 4% or more;  Asia and the Pacific as well as the Americas saw the strongest growth at 6%, followed by Europe and Africa which both recorded increases of 5%;  Latest forecasts by UNWTO (January 2014) estimated a growth between 4% and 4.5% in international tourist arrivals for 2014, which is still above the initial long-term forecast for 2010 and 2020. SOURCE: UNWTO 3

4. National Tourism Performance Tourist Arrivals: January to March 2014  Tourist arrivals to South Africa went up by 4.9% (121,035) compared to the same period in 2013;  All regions recorded positive growth, led by North America with a growth of 8.4%;  Amongst overseas markets, although the UK recorded a declining growth of 2.8%, it is still leading in terms of volume ;  Africa continues to be the highest source market with arrivals accounting for 71 % of the total arrivals to South Africa;  Angola leads with a growth of 21.4%, however, in respect of volume, Zimbabwe is still leading followed by Lesotho and Mozambique. SOURCE: SAT 4

5. National Tourism Performance Domestic Tourism Performance: January to March 2014  A growth of 48% in domestic trips taken was recorded in the first quarter of 2014 - reaching 7.8 million compared to Q1 of 2013 (5.3 million).  Visiting friends and relatives (VFR) still accounted for the largest share of domestic trips, increasing from 66% in Q1 2013 to 78% in Q1 of 2014 whilst the share of holiday trips declined from 13% to 9% in the same period.  Average length of a trip decreased from 4.6 nights to 3.5;  Although average spend per trip decreased, from R900 in Q1 of 2013 to R810 in the same period during 2014, the total number of trips increased resulting in an increase in total spend from R5, 2 billion to R6, 4 billion in the period under review. This was driven mainly by the increase in the number of trips; and  VFR and holiday trips accounted for 61% and 22% of the total spend respectively. SOURCE: SAT 5

6. Key Initiatives/Achievements Tourism Act No 3 of 2014  Enacted on 16 June 2014. The objects of the Act are to: 1)promote the practising of responsible tourism; 2)promote quality tourism products and services and growth; 3)provide for effective domestic and international marketing of SA as a tourist destination: and 4)enhance cooperation and coordination in all spheres of government in developing and managing tourism.  NDT is in the process of drafting regulations and conducting preparatory work for the implementation of the Act Adventure Tourism  Preliminary research on the current state of Adventure Tourism in South Africa was undertaken; and  Provincial stakeholder consultations are currently being undertaken to share the outcomes of the study as well as to reach general consensus on establishing generic standards for self-regulation of the adventure tourism sector. 6

7. 1. Key Initiatives/Achievements Tourism Incentive Programme  Working session hosted by Minister on 11 July 2014. The following Working Groups(WGs) were established to deliberate on key focus areas:  Development of a Tourism Development Funding Forum;  Development of a Destination Development Plan Framework;  Design and Development of Current and Future Incentive Programmes;  Tourism Signage ;  Enhancing South African Ports of Entry; and  Tourism Skills Development.  The WGs had their initial meetings and work has commenced; and  NDT is also working on integrating the above work into existing structures. 7

8. 1. Key Initiatives/Achievements  Responsible Tourism  Focus is largely on Universal Accessibility(UA) and Resource Efficiency.;  An assessment of all provincial parks/ nature reserves for compliance with UA Standards was conducted in the 2013/14 Financial year;  An assessment of UA for accommodation establishments as well as International Convention Centres in Durban and Cape Town was also done through the TGCSA; and  The findings will inform prioritisation with regards to the development and implementation of UA compliance destination initiatives.  Lilizela Awards  National event is scheduled for 09 October 2014 at the Gold Reef City;  The Tourist Guiding Category is currently being rolled out on a pilot basis in collaboration with Provincial Registrars and SAT; and  There is also an intention to introduce a new Visitor Information Centre (VIC) of the Year Category in future. 8

9. 1. Key Initiatives/Achievements Tourism Local Government Development and Support Programme  Over 60 municipalities (tourism practitioners and policy makers) have participated since the programme was initiated in 2013; and  53 practitioners and 55 policy makers have been trained. Local Government Tourism Conference  To be hosted on 26 – 27 February 2015 under the theme ʺ Tourism, a Catalyst for Tourism Growth, Job Creation and Transformation ʺ at Emperors Palace; and  Registration for the Conference opens in October 2014. 9

10. Emerging Areas New Immigration Regulations  The Ministers of Home Affairs and Tourism, met on 30 July 2014 to discuss the impact of the new Immigration Regulations on the tourism sector. Key issues raised included  Transit visas;  Regulation in respect of the presentation of unabridged birth certificates for minor children upon entering or departing South Africa; and  Requirement for foreign nationals to apply for visas ‘in person’. Ebola Outbreak  The current Ebola outbreak has raised significant concerns/perceptions over African travel; and  Nationally, an inter ministerial committee has been put in place; and  There is a need for the sector Crisis Management Strategy that guides our communication approach. 10

11. Areas that require joint Collaboration Alignment of Tourism B-BBEE Codes  The Tourism B-BBEE Charter Council is currently consulting on the development of new Tourism Codes in line with the amended dti Codes;  Industry is encouraged to participate in these consultations; and  Comments can also be forwarded through bbbee@tourism.gov.za. bbbee@tourism.gov.za  NTSS Review: NDT has commenced with preparations for the initial NTSS review process, which is scheduled for 2015/16 Financial Year. This will be done in consultation with all relevant tourism stakeholders. 11

12.  Note current trends and developments in tourism; and  Note the proposed areas of collaboration between public and private stakeholders and all stakeholders within the tourism value chain. RECOMMENDATIONS 12

13. THANK YOU 13