1. Department of Environmental Affairs and Tourism Presentation to Parliament Theme 2 - Employment and Economic Growth 1 November 2004

2. Overview of presentation  DEAT focus areas for MTEF  DEAT priorities linked to Government Programme of Action  Achievements and service targets for the coming year  DEAT Medium Term Expenditure Framework to deliver on objectives

3. DEAT key focus areas for MTEF period  Create conditions for sustainable tourism growth and development  Conservation and sustainable development of our natural resources  Protect and improve the quality and safety of the environment  To promote a global sustainable development agenda  Transformation of the department, our public entities and sectors for which we are responsible (tourism, environment and fishing)

4. Employment and Economic Growth Growing the first economy :  Implementation of Micro-economic Reform Strategy (MERS) and investment in key economic growth and labour-absorptive sectors (Tourism)  Integrated services sector framework (Tourism)  Implementing Growth and Development Summit (GDS) agreements  Infrastructure Development  Unblocking SDI’s (Wild Coast and Lubombo)  BEE (Tourism, fishing, environment and public entities)  Increased investment in research and development (Tourism, SA Weather Services, South African National Biodiversity Institute, Antarctica, SANParks and Greater St Lucia Wetland Park)

5. Employment and Economic Growth Second economy interventions :  BEE (fishing, environment)  Enterprise development in tourism & fishing  Learnership programme through THETA  Expanded Public Works Programme (EPWP)  Procurement reform

6. International Relations Peace and Security  Implementation of Johannesburg Plan of Implementation (WSSD follow-up)  NEPAD tourism and environmental programmes  International marketing South Africa  Transfrontier Conservation Areas (TFCAs)  Implementation of multilateral environmental agreements

7. Social Services  Lead the environment and culture sectors in EPWP  Reducing the health-care costs associated with poor air quality in low-income communities  Lubombo SDI malaria programme Governance & Administration  Improving service delivery (e-governance)  Budget reform and IGR (4x4) Justice, Crime, Prevention and Security  Compliance and enforcement programme  Environmental courts  Illegal trade in endangered species, poaching in parks and marine areas  New patrol vessels

8. INTERVENING IN THE SECOND ECONOMY THROUGH ENVIRONMENT, TOURISM AND FISHING SECTORS  Tourism Enterprise Programme(TEP) –Creation of 3,3 million person days of work (16 760 job equivalents)  Tourism SMME development –Business management training - 3500 learners –R4,5 million DBSA contribution – train the trainers and development of training material  Fishing Industry –Mari-culture important for SMME development  Expanded Public Works Programme(EPWP) –Additional funding can generate 11 350 job opportunities and 125 000 training days

9. EXPANDING PUBLIC SECTOR INVESTMENT THROUGH INFRASTRUCTURE  Air Quality Management System –Establish on-line, real time national air quality monitoring system in 16 hotspot areas over 5 year period as basis for improvement in air quality.  SA Agulhas –Notification by Lloyds of London that once she reaches the age of 30 years (by 2006) no clearance for operating in ice will be granted.  Tourism road signage and information centers nationally –Global Competitiveness Study identified lack of information provision to tourism as major gaps – problematic for 2010 –Development of high potential and high priority tourism routes nationally, linked to information centres etc

10. EXPANDING PUBLIC SECTOR INVESTMENT THROUGH INFRASTRUCTURE  Spatial Development Initiatives (SDIs) –Phase 2 of Lubombo R1,5 billion worth of concessions to be awarded  SANParks road subsidy –Increased park system demands an increase in the road subsidy  Marion Base –Logistical support funding needed to finalize the project

11. BUILDING OPERATIONAL CAPACITY AROUND SELF-FINANCING FUNCTIONS  An Institutional review was done to align resource requirements with constitutional and legal mandates  Revenue generating potential is explored for following: –Administration fee for EIA and landfill permits –Waste management revenue streams –CITES and biodiversity related permits –Tourism : bed levies, grading council revenues etc  DEAT contribution to Public Entities budget was 58,6% in 2003/04 and decreased to 48,9% in 2004/05

12. GROWING FIRST ECONOMY THROUGH TOURISM MARKETING AND PROMOTION  Target for arrival figures for 2010 World Cup is 10 million. Current figures around 6 million.  International marketing studies already identified the potential market segments across the globe and required activities to unlock this growth potential.

13. OPTION 4: GROWING FIRST ECONOMY THROUGH TOURISM MARKETING AND PROMOTION 20032004 Target2005 Target Africa & Middle East4 485 8964 479 4424 580 618 Americas262 496278 987286 243 Asia & Australasia265 628274 830298 222 Europe1 319 1721 391 3451 436 277 Unspecified172 530189 468200 000 Total6 504 8906 614 0736 801 360 Tourism Arrival Information