1. FEDHASA Presentation to Portfolio Committee on Tourism 21 February 2012 1

2. Introduction FEDHASA in process of reviewing strategic plan Key priorities that have been identified to realise objective – FEDHASA is recognised and respected as the prime representative for the South African hospitality industry Strategic Priorities – Build Trust – Define Organisation – Deliver Relevant Value – Deliver Products – Ensure Viability – Establish Identity – Promote Product – Build Government Relations – Enable Training 2

3. Enterprise development and partnerships Sectors of tourism – Hospitality focus – Other sectors Types of hospitality enterprises - range spreads – Big hotels – Lodges – Guest houses – Self catering – Bed & Breakfast Partnerships for – Development – Providing services – Training Stakeholder partners – Government – Consumers – Labour 3

4. Enterprise development and partnerships Resources available – DTI grants for small players (not easy to access due to rules) – Skills Development re: Educator programme Training & development – Capacity of hospitality host properties – Discipline & commitment from learners Needs: – Revisit TECSA Review status Develop new prioritie S – Funding access for first timers – Market access for smme’s – Re-establish & fund the concept & practise of "apprenticeship" Trainers Learners 4

5. Initiatives to increase domestic tourism development Types of domestic market – Corporate – Leisure Destination marketing initiatives Focus areas – Geographic & Seasonal – Opportunities for focus Promotions – SAT - "Short Left" – Own Big & Small industry players Needs Revisit "Short Left“ 5

6. The tourism sector contribution to development, growth and job creation Guest Houses rezoning takes long and costly Bed & Breakfast rezoning takes long and costly Business Tourism (CVB’s) - MICE Government business sources Government delay in payment process – smme’s Avoid budget cut in Travel & Tourism (sustainable jobs) 6

7. The tourism sector contribution to development, growth and job creation Areas of growth and development – Increasing – Decreasing – Investment opportunities Value realised from tourism/hospitality – Erratic trends – Sustainability Needs – Business tourism fund to bid for international events & conferences – Strengthen Convention & Visitors Bureaus (CVB) through stronger industry linkages 7

8. Support for sustainable livelihoods to small, medium and micro enterprises Government support needed Settle the accounts on time (cashflow management) DTI grants – policy and procedures are not easy to access funds Distribution of Government business, consider small towns (Conferences) 8

9. Support for sustainable livelihoods to small, medium and micro enterprises Servicing tourism industry – Value chain – Own SMME entities – Supporting big players Funding and finance example Needs – Access to finance for SMMEs – Improve training opportunities for SMMEs 9

10. Shift in geographic markets and geographic spread Trends – Statistics Increases Inbound Outbound – Special issues African vs Western Family & friends focus – Affordability Areas – Local – Regional/provincial – National – SADC – Africa – International 10

11. Shift in geographic markets and geographic spread Why shifts – Economic environment Local & International – Travel trends Travellers preferences Costs of travel – Market realities Western vs African Time & interest focus Quality time with family Home Visiting Traditional home Family & friends Bus travel – Infrastructure Balance new investment vs maintenance e.g. Northern Berg access roads 11

12. Shift in geographic markets and geographic spread Needs – Recognition of reality and needs of our local market & people - we are not catering for real needs! – Competitive local costing and affordability considerations – Road access 12

13. Successes and challenges Successes – Imvelo Awards Responsible tourism – Representative organisations exist – Relationships with stakeholders Government Communities Labour stability – Tourism Business Council of South Africa 13

14. Successes and challenges Challenges – Need enabling environment Government policy - Support or Hindrance? Political - Support or Hindrance? – Stronger working relationships with government & agencies National Provincial Local – Recognition of the collective voice of tourism industry – Skills development Quality & quantity of school leavers Bridging courses – Global trends Economic meltdown Changing markets – Hospitality industry training resources established 14