1. Update on the Tourism Satellite Account Tourism Portfolio Committee 12 October 2010

2. … background 2 R?? Although the Tourism-industry is not explicitly recognised in the Standard Industrial Classification of all Economic Activities (SIC), there is little doubt about the growing importance of economic activity relating to this industry; The increased awareness has prompted the development of various techniques by a number of countries and international agencies to measure tourism’s (social-) economic impact; These developments are centered on the System of Tourism Statistics (STS). A STS comprises three aspects i.e.: Tourism Satellite Accounts (TSA); Balance of Payments for Tourism (BoPT); and Labour Accounts for Tourism (LAT).

3. … background (cont.) 3 R?? In the past, the description of tourism focused on, amongst others, the: characteristics of visitors; conditions in which they travelled and stayed; purpose of their visit etc. Today, there is an increasing awareness: of the role that tourism is playing and can play (directly or indirectly) in the economy in terms of:  generation of value added;  employment;  personal income;  government income, etc.

4. … what does a TSA do? 4 R?? It is a statistical instrument used to measure the size of the tourism industry’s contribution to the economy of a country according to international standards of concepts, classifications and definitions; Allow for valid comparisons with other industries and eventually from country to country and between groups of countries; Fundamental structure of a TSA is based on the general relationship existing within an economy between the demand of goods and services generated by tourism on the one hand and their supply on the other hand – it therefore brings together the demand- and supply side of the tourism industry;

5. … why a TSA (cont.) 5 A TSA provides a framework for policy analysis of issues related to tourism economics, as well as for model-building, tourism growth analysis and productivity measurements; A TSA is constructed using official data and not modeling techniques; The main purposes of the TSAs are to: analyse in detail all the aspects of demand for goods and services which might be associated with tourism within the economy; observe the operational interface with the supply of such goods and services within the same economy of reference; and describe how this supply interacts with other economic activities.

6. … what does it all mean 6 Once all the tables of the TSA have been completed we will be able to measure: Tourism’s contribution to Gross Domestic Product; Tourism’s ranking compared to other economic industries; The number of jobs created by tourism in an economy; The amount of tourism investment; Tax revenues generated by tourism industries; Tourism consumption; Tourism’s impact on the country’s balance of payments; Characteristics of the human resources in the tourism industry.

7. … the key role-players 7 Construct the TSA Stats SA SAT SARBDHAdti NDT Other industry players SARS Users Working team Collect and provide data Treasury The success of the TSA process in SA rests on the inter-institutional committee

8. … link with policy 8 The main objective of the Department of Tourism is to increase tourism’s contribution to: economic growth job creation Whilst the main measurement of the Tourism Satellite Account is the direct contribution of tourism to: economic growth job creation The TSA therefore gives the official statistics on, inter alia: whether the tourism sector is reaching these targets or not; which industries contributes the most/least to these targets.

9. 9m domestic holiday trips pa 12% pa average growth 70% compliance with the tourism charter by 2015 Develop and monitor a composite tourist satisfaction index and aim for significant improvement Define decent work and strongly promote compliance, aiming for 100% Tourism is seen as an attractive career choice with good career progression, resulting in more students taking tourism disciplines and better industry retention 13,5m total 10m Africa 3.5 m overseas 45,5 m trips 55% of pop n R125bn 3,5% of GDP 800 000 jobs of main provinces 35% of bed-nights outside … South African Tourism Industry Strategy 2015 Responsible Growth Objectives 2005 (Direct contribution): GDP: 3,0% Employment: 527 630

10. 10 Thank you