Presentation to the Portfolio Committee on Tourism

Martin Jansen van Vuuren National Satsa Exco member Director: Grant Thornton Strategic SolutionsHoward Johnston Satsa Western Cape Chairman Owner: One World Language School

Issues to address:Enterprise development and partnerships

• Red Door• TEP• DTI Incentives• Associations• Access to Finance• Mentorship• Marketing channels• Satsa 2nd MOU with NDT• CATHSETA – skills levy

Issues to address

• Initiatives to increase domestic tourism development– Cost of travelling?– Increased access through infrastructure spend– Duplication between SAT & provincial marketing

organisations?

Domestic Tourism in South AfricaHow do we get SA residents to travel?

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Annual trips to each province

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Day trips should not be forgotten as a source of tourism revenue

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Spend by day trippers can be higher than spend by overnight visitors in some provinces

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The tourism sector contribution to development, growth and job creation

The tourism sector contribution to development, growth and job creation

The tourism sector contribution to development, growth and job creation

The tourism sector contribution to development, growth and job creation

Issues to address

• Support for sustainable livelihoods to small, medium and micro enterprises– Governments buying behaviour – buy local, buy

SMME?

Issues to address

• Shift in geographic markets & geographic spread– Traditional markets – USA, UK, Germany– New markets – India & China (visa issues?)– DIRCO – NDT, SAT & SATSA training

Source of Overseas Tourists to South Africa in 2010

Brazilian tourists in 2010 boosted by the World Cup– 14 100 arrivals in June

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The majority of foreign tourists passes through Gauteng because of OR Tambo International Airport and the need for cross border shopping/trading

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Gauteng's share of foreign bednights are much less given the longer length of stay of foreign tourists in other provinces

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Issues to address

• Tourism statistics– How many tourists do we actually receive per

annum?– Over supply of hotels?

International Tourism to

South Africa in 2010

Total Foreign Visitor Arrivals:11 303 098

Total Foreign Tourists: 8 073 552

Total Overseas Tourists: 2 216 994

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Issues to address

• Successes– World Cup– Airport developments– Public transport– Seven Wonders of the World– Increase in visitors– Responsible Tourism– Convention Centre– Design Capital

Issues to address

• Challenges that are facing the services industry

•Liquor Bill•SANParks•Department of Transport•Airport taxes and access•Crime•Robben Island

•Exchange Rates•Bank fees•Public Transport•Responsible Tourism•Skills Development•Visas

Issues to address:Sector development

• Case study: Edutourism– Definition– Growth and stats– Successes– Challenges – Development of youth tourism

Discussion

Martin Jansen van Vuuren

Director

Grant Thornton Strategic Solutions

Tel: 021 417 8838

E-mail: martinjansen.vanvuuren@za.gt.com 12

What is a tourist?

Traveller Any person on a trip between two or more countries or between two or more localities within his/her country of residence Includes all visitors

(same day & overnight) and people travelling for work purposes

Workers and contract workers

Visitor Any person travelling to a place other than that of his/her usual environment for

less than 12 months, and whose main purpose of the trip is other than the exercise of an activity remunerated from within the place visited. Includes same

day and overnight visitors but exclude people travelling for work purposes

Same Day A visitor who visits a place for less

than one night

Tourist A visitor who stays at least one night in the place visited. Exclude same day visitors and people travelling for work

purposes i.e. includes only overnight visitors

Domestic Tourist A resident (South African) visitor who visits destinations within South Africa

Foreign Tourist A visitor who is a resident of another country who visits destinations within

South Africa

International Tourism in 2011

• International tourist arrivals up 4.4% to 908 million• Growth projected between 3% and 4% in 2012 to

reach 1 billion international tourist arrivals• Africa maintained international arrivals at 50 million

– Gains of two million by sub-Saharan destinations (up 7%) was offset by the losses in North Africa (down 12%)

Expenditure by foreign tourists is closely related to number of bednights spent in a province

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