NATIONAL TOURISM SECTOR NATIONAL TOURISM SECTOR STRATEGY (NTSS)

16 SEPTEMBER 2011

IntroductionIntroduction

GLOBAL PICTURE

3

Foreign Arrivals in South Africa, 2002Foreign Arrivals in South Africa, 2002--2009 2009

There were over 63 million foreign arrivals to South Africa over the period 2002 and 2009

CAGR02-09 = 6.4%

Source: Stats SA, Tourism & Migration release

Arrivals

(Mill

ions

)

02-03 03-04 04-05 05-06 06-07 07-08 08-09

Year-on-Year Change

1.2% 2.7% 10.3% 13.9% 8.3% 5.5% 3.6%

Opportunity…

To strengthen position of South Africa as:

� leading tourist destination in the world� growing tourism GDP level to R125bn

(3.5%) by 2015(3.5%) by 2015� creating 800 000 jobs by 2015� growth in domestic tourism� spreading benefits to the entire population

To achieve this . . .� prioritisation of tourism at national government

level� improved intergovernmental coordination� harness full potential of expertise available� strengthened collaboration and partnership

with industrywith industry� conducive political, policy and regulatory

environment� coordination of efforts & initiatives and to

understand needs of global tourists

Current reality…

� no overall tourism strategy for the country� fragmented efforts/ uncoordinated� duplication of efforts and expenditure

less impact for every promotional� less impact for every promotional/developmental rand spent

Therefore need …

� a clearly defined tourism strategy� one central point to co-ordinate initiatives� complete ownership of responsibilities by

all stakeholdersall stakeholders

The National Tourism Sector Strategy

(NTSS)

Strategy overview

Vision Mission

Objectives Clusters

Vision . .

Boldly growing responsible tourism

togetherto deliver memorable to deliver memorable

experiences for all our tourists and sustainable

benefits for all South Africans

Mission . . We will achieve our vision through:

� effective, cooperative partnerships;� dramatically improving service levels;� a diverse range of quality, innovative, unique, and authentic products

which meet market needs;� providing value for money;� inspiring more South Africans to enjoy the tourism experiences of our

country;� ever increasing numbers of foreign tourists experiencing our country;� leading the world in environmentally sustainable tourism;� addressing all aspects of people development;� providing decent work;� increasing public and private sector investment in our industry

Objectives . . .� to grow the tourism sector’s absolute contribution

to the GDP� to achieve transformation within the tourism sector� to provide excellent people development and

decent work within the tourism sector� to entrench a culture of travel amongst South

Africans� to deliver world-class visitor experience� to address the issue of geographic, seasonal and

rural spread

4 clusters . . .Cluster 1:

Policy, Strategy, Regulations, Governance,

Monitoring and Evaluation

Cluster 2:Tourism Growth and

Development Demand and Supply

Cluster 3:Enablers of

Growth

Cluster 4:People in Tourism

Cluster 1 . . .Policy, Strategy, Regulations, Gover nance, Monitoring and Evaluation

Issue Problem Statement Solution/Response / Action

Prioritizing tourism atnational governmentlevel

Spheres ofGovernment notplanning andallocating sufficientbudgets for Tourism

Engage with Cabinet, Ministriesand departments to raise theprofile of the industry

Research, Informationand Knowledge

No NationalResearch Strategy,

Set up a dedicated Research andKnowledge Management Unit toand Knowledge

ManagementResearch Strategy,duplication of effortsdue to lack ofcoordination, andunavailability ofmarket intelligence

Knowledge Management Unit toguide research

StrengthenCollaboration andPartnerships withinthe Industry

Lack of intergovernmental , interdepartmental and sub sector collaboration and communication

Formalise structures forcollaboration and interactionbetween public and private sectorat all levels

Cluster 2: tourism growth and development - supply

Issue Problem Statement Solution/Response/ Action

Domestic TourismDevelopment

The culture of travellingis not entrenched in themajority of South Africans

Develop government subsidizedworker holiday schemes toencourage low income earners totravel for leisure

Capacity Buildingand BudgetAllocation at

Few tourism personnel,lack of planning capacityand insufficient budget

Engage with SALGA, NationalTreasury and COGTA to ensuretourism activity is developed andAllocation at

Local Govt Levelin TourismPlanning andManagement

and insufficient budgetallocations at LocalGovernment level

tourism activity is developed andallocate budgets for tourism atLocal Government level

TourismInformationProvision

Lack of NationalFramework resulting inprovision of informationto tourists beinguncoordinated andinconsistent

Develop and maintain a nationaltourism information provisionframework

Cluster 2: tourism growth and development – supply c ont

Issue Problem Statement Solution/Response/ActionCo-ordinateProductDevelopment

Tourism productdevelopment iscurrently drivenmainly by the privatesector due to a lack ofcoordination bygovernment

Develop and implement anational strategy to upgradetourism attractions and heritageresources including otherentities and governmentdepartments

government

QualityAssurance andUniversalAccessibility

Current gradingscheme does notensure that productsand services areaccessible to all, e.g.people living withdisabilities and theelderly

Review the current gradingscheme and implement KPMGfindings

Introduce incentives to ensurethat businesses and attractionsare universally accessible

Cluster 2: tourism growth and development – supply c ont

Issue Problem Statement Solution/Response/ActionInvestmentFacilitation,includingEnterpriseDevelopmentand

There are a lot ofbarriers for SouthAfricans wanting to starttourism businesses, e.g.funding

Establish a tourismdevelopment fund to assist inthe development of the tourismindustry

Engage with financinginstitutions to improve accessand

DevelopmentFinance

institutions to improve accessto finance for tourismbusinesses

EnvironmentalManagementand TripleBottom Lineissues

Tourism industry isthreatened due to thepropensity of peopleavoiding travel toreduce their emission

Promote SA's environmentally responsible tourism practices internationally

Cluster 2: tourism growth and development – demand

Issue Problem Statement Solution/Response/Action

Marketing,Brandingand NewMarketDevelopment

Lack of the development ofnew markets and noninclusion of niche tourism inmarketing efforts due tolimited budget

Develop a marketing strategytargeted at the African market andniche tourism that focuses on newmarkets

Business Lack of national coordination Establish a National Convention andTourism /Events

Lack of national coordinationleads to competition betweenProvinces and cities thuslimiting SA’s ability to attractinternational events

Establish a National Convention andEvents Bureau (NCB) that willdevelop an events strategy

AfricanTourismDevelopmentStrategy

Source markets within Africaare not clearly understooddespite Africa being thesource of foreign arrivals inSouth Africa

Identify and develop other keyAfrican markets

Facilitate movement of Africantourists who come to the country forshopping purposes

Cluster 3: Enablers of growthIssue Problem Statement Solution/Response/Action

ImprovingGeneralAwareness ofTourism amongSouth Africans

Tourism is seen as anactivity for richforeigners due to limitedexposure andunderstanding of itsbenefits by SouthAfricans

Drive a PR campaign and developprogrammes aimed at targeting allsectors of the South Africanpopulation with the message thattravel and tourism is a lifestyleactivity for all

Perceptions ofSafety andSecurity

South Africa is perceivedas an unsafe destinationfor tourists

Develop and implement a majorcampaign to improve perceptions ofsafety and security in foreign sourcemarkets

Airlift –International

Flights to South Africafrom other markets arelacking and expensivedue to the cost of airporttaxes and other charges

Mobilise & maximise airline industrysupport for the development of thetourism industry

Redefine the role of SAA as towhether it is a national orCommercial carrier

Cluster 3: Enablers of growth cont . . .

Issue Problem Statement Solution/Response/Action

Airlift –Domestic

Air travel within SouthAfrica is lacking andexpensive whichmakes it inconvenientfor tourists to reachother destinations

Establish a task team to investigate domestic airlift within South Africa

Set up a communication forum with airlines and destinations other destinations with airlines and destinations experts

GroundTransportation

Ground and railnetworks are notalways connected toairports (inter-modaltransport)

Develop a vision and strategy foran efficient, inter-modal transportsystem in South Africa which willallow domestic and internationaltourists to move about easily

Cluster 4: People in tourismIssue Problem Statement Solution/Response/ActionTransformation Transformation in the

tourism industry is veryslow, with few blackentrants in the market, andbig and small business stilllargely dominated by whitepeople

Develop strategies to encouragebusinesses to comply with the BEECharter

Develop programmes to attract moreblack entrepreneurs to enter theindustry as owners

PeopleDevelopment

Industry does not attract orretain quality people due to

Review, manage and implement theHuman Resource DevelopmentDevelopment retain quality people due to

low salary levels

Poor training anddevelopment due toineffectiveness of THETA

Human Resource DevelopmentStrategy

Improve THETA's effectiveness

Provide DecentWork in theTourismIndustry

Tourism industry is notconsidered a goodemployer due to low wagesand long working hours

Develop a strategy to attract andretain labour

Encourage businesses in thetourism industry to comply with theprinciple of providing decent work

Cluster 4: People in tourism cont . . .Issue Problem Statement Solution/Response/Action

ServiceExcellence

Service levels in tourism andSouth Africa are extremelyinconsistent and poor

Create public awareness amongstconsumers of world class servicestandards and educating industryemployees of the importance ofcustomer care

ImproveCommunity

The level of tourismawareness within various

Improve local government capacityand understanding of tourismCommunity

Benefits andParticipationin Tourism

awareness within variouscommunities is limited,especially rural ones due tounrealistic expectations aboutits benefits

and understanding of tourism

Build awareness and understandingabout tourism among communities inparticular rural communities toeliminate unrealistic expectations

Identify destinations and areaswhere communities can becomebeneficiaries of tourism projects andidentify and support appropriateproduct development

Intergovernmental and Stakeholder relations

With current structure of governance, we willnot grow tourism due to …

� concurrent functions as per the constitution� lack of coordination and integration� National/Provinces/Cities promoting

independently� lack of partnership and collective approach in

planning for tourism

Roles and responsibilities . . .� National Department of Tourism leading and monitoring

implementation� Provincial Departments responsible for policy formulation

and implementing tourism development strategies� Local Government to maintain infrastructure, provide

funds and integrate tourism within economic developmentfunds and integrate tourism within economic developmentactivities

� Sector departments to provide support� Dti, National Treasury, Economic Development, etc

� Key departments to participate in various forums� Development of delivery agreements with sector

departments and partner institutions

Where are we now . . .� Draft NTSS approved for public comment by

Cabinet� Launched by Minister on 21 May 2010� Gazetted for public comments on 28 May 2010

for 60 days (ending 31 July 2010)for 60 days (ending 31 July 2010)� Stakeholder outreach and consultation for

inputs, e.g. bilaterals� Process of integrating inputs to commence

after 31 July 2010� Initiate cabinet approval processes

Conclusion

To strengthen South Africa as :

� a leading tourist destination in theworldworld

� spreading benefits to entire population

A clearly define strategy . . .

The National Tourism Sector Strategy (NTSS)

� National, Provicial, Local Government � National, Provicial, Local Government coordination

� Private sector partnership� Community gets direct benefits from tourism

revenue

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