Mr Speaker, I wish to briefly reflect on:
An extract from the President's State of the Nation Address, 09 February 2007, and I quote:
"in line with the National Industrial Policy Framework which has now been completed, we will: - intensify implementation of customised sector measures to facilitate investments in Business Process Outsourcing, Tourism, bio-fuels and chemicals..."; and
An extract from the Premier's State of the Province Address, 16 February 2007 and I quote:
"Today, in this State of the Province Address, we set the agenda towards reaching the Millennium Development Goals in 2014, to ensure a different Western Cape by 2010 when we host the Soccer World Cup, and to ensure that in the upcoming financial year 2007/08, we have used our resources to intensify the struggle against poverty".
This budget vote takes the above fully into account together with the following insights provided on continental and regional tourism growth as well as 2010 tourism growth and economic potential:
Africa receives just under 5% of global tourist arrivals and has shown in the past 3 years that continental tourism growth is double that of the world average. Of the 36,7 million tourist arrivals to sub-Saharan Africa in 2005, almost 20% went to South Africa. South Africa recorded a 10.3% increase in international arrivals from 6,7 million in 2004 to 7,4 million in 2005. Also, there was a 23.5% increase in Total Foreign Direct Spend (TDFS) from R43,2 billion in 2004 to R53,4 billion in 2005.
Trends show that Cape Town and the Western Cape are on the road to beat the global growth rate in international arrivals. There has been even greater growth in the traditionally low months between April and September. The Western Cape achieved 14% growth in international arrivals between April and September 2006 compared to the same period in 2005, and the growth trend is expected to continue. For 2006, the Western Cape received 1,6 million international visitors and 3 million domestic visitors. Also, the Western Cape recorded a R14,9 billion foreign spend and a R1,9 million domestic spend (total: R16,8 billion).
The MEDS (Micro-economic Development Strategy) Synthesis Report July 2006, confirms that the Western Cape is often viewed as South Africa's most developed tourism region, with the contribution of travel and tourism to the provincial economy close to 10% in value added (Gross Regional Product) and in employment (compared to about 7.4 % for South Africa as a whole). Both ASGISA (Accelerated and Shared Growth-South Africa) and the MEDS (Micro-economic Development Strategy) have identified tourism as a key priority sector for accelerated growth and BBBEE.
In terms of the 2010 FIFA World Cup Finals, there are huge benefits in presenting the Western Cape as an attractive tourist and investment destination from the expected 450 000 arrivals to South Africa (of which the Western Cape is expected to receive between 250 000 to 350 000 arrivals); and from the cumulative R40 billion global TV audience.
The positive tourism growth as reflected above and the 2010 tourism growth and economic potential clearly shows that we have an important role to ensure:
- that the visitor experience is a good one, as positive word of mouth advertising is critical;
- that we achieve long-term benefits on the marketing spend;
- that we have a unified destination brand and consolidated marketing efforts in order to ensure the success of both established tourism businesses as well as emerging tourism businesses;
- that we take into consideration the need to stream visitors from Cape Town to other Municipalities in the Western Cape;
- that new business is spread as widely as possible;
- that our communities benefit in terms of environment enhancement and participation in the tourism experience; and
- that we foster cooperative governance and funding initiatives to ensure cost and time efficient use of our collective efforts and resources.
In my 2006/2007 Tourism Budget Speech, I spoke to a 7-point plan for delivering on tourism's vision as outlined in the 10-year Western Cape Tourism Development Framework. Mr Speaker, I wish to report progress as follows:
Firstly, in terms of the ITDF (Integrated Tourism Development Framework) we have consolidated the Tourism Gateways (the Eastern Gateway will be up and running by August 2007), finalised the Cape Flats Tourism Initiative (upgrading the District Six sports exhibition in line with 2010) and provided facility equipment to the False Bay Ecology Park as part of the development of the False Bay Coastline. We have also participated in the following major Tourism Route development: Cape Namibia Tourism Route; The Whale & Tip of Africa Route in the Overberg region launched at Indaba 2007; and the 3 x Wine Routes as part of the West Coast tourism development programme. The ITDF review process, which includes a drill down investigation into the sites, attractions, routes and infrastructure for the City and each of the District Municipality will be conducted in 2007/2008.
Secondly, with regard to the Tourism Safety and Support Programme and our 3rd year implementation of the "Tourists in Distress" campaign 84 tourism safety and security incidents were recorded for the 2006 festive season compared to the 93 incidents recorded for the 2005 year. The incidents mainly involved assault/robbery and motor vehicle accidents with a marked decrease in high profile crime against tourists which usually receive major media attention and contribute to the negative perception of an unsafe destination. Proactive measures included the distribution of safety tips, safety cards, stakeholder leaflets, media/publication inserts and networking with key role players like SAPS, Consulates and the Hospitality Industry on a continuous basis. The roll out of the programme also included comprehensive plans and part-time staff for the Cape Metropole, Southern Cape, Overberg, Central Karoo and Route 62.
Thirdly, as part of the detailed Monitoring and Evaluation Framework for the Western Cape, a number of quality inspections of attractions, products and services and tourism routes were undertaken. These included inter alia the Outeniqua Choo Tjoe, Robben Island and the Cango Caves.
Fourthly, we have been actively involved in tourism training and development initiatives. In the 2005/2006 financial year a total amount of R2,204,000 was spent on training which benefited 1,381 people. In the 2006/2007 financial year a total amount of R3,645,648 was spent on training which benefited 2 518 people. Tourism training and development initiatives included customer care training to staff in the industry; tourist guide training; the Tourism Tiered Support System; and bursary funds to beneficiaries studying in the fields of tourism management, professional cookery, public relations and food and beverage management.
Fifthly, the Tourism Tiered Support System in the form of the Tourism Business Management Programme, Tourism Mentorship Programme, Fast Track and the Tourism Help Desk programme has been implemented for its fourth successful year. Besides the 1,639 entrepreneurs that have been through the Tourism Business Management Programme, Fast Track Programme and Tourism Mentorship Programme, an additional 180 tourism outreach sessions were held where approximately 3,600 community members attended the sessions. This has spread the understanding of tourism and how communities can be involved into almost every corner of our Province.
Sixthly, the ITESP (Integrated Tourism Entrepreneurship Programme) was further refined to ensure that entrepreneurs have real benefit in the assistance provided and will be form part of the Tourism Blue Chip Investment Portfolio.
Seventhly, the Tourism Youth Indaba and Awards, the Provincial Tourism Schools Competition and the Access to the Cape campaign were held as part of our social tourism initiatives.
Mr Speaker, our highest priority was the establishment of a Tourism Development Forum to which the Western Cape Tourism Development Partnership was launched and formally constituted in the 4th quarter of 2006/2007. This was the first engagement between the 4 social partners (being Government, Business, Labour, Civil Society); and with Education. Discussions were centred on institutional arrangements of the Partnership and the Western Cape Tourism Development Framework.
We have also coordinated the Government delegation of the Partnership, consisting of the Department, the City, the x 5 District Municipalities, the B-Municipalities, the Regional Tourism Organisations and the Local Tourism Organisations [as well as national representation in the form of DEAT (national Department of Economic Development and Tourism), SA Tourism and dti (national Department of Trade and Industry)] to provide detailed input into a jointly agreed upon Western Cape Tourism Development Framework.
Some of Cape Town Routes Unlimited's highlights during the past financial year include:
- Seasonality and regional spread: The 351 events across the Province were used as a platform to address seasonality and regional tourism spread. During the months of May to September, 83 events were hosted in Cape Town and 54 in the other regions of the Province. (Of the 351 events, 206 were in Cape Town, 53 in the Winelands, 17 in the Overberg; 34 in the Garden Route & Klein Karoo; and 33 in the West Coast.) Regional spread to the Winelands increased from 42% to 67% and the Garden Route from 37% to 48% by December 2006.
- SMME development: CTRU has assisted 185 emerging entrepreneurs by exposing them to local and international leisure and business tourism markets such as the Cape Tourism Showcase, Indaba, World Travel Market, Meetings Africa and SA Tourism India Roadshow.
Mr Speaker, in the 2006/2007 fiscal year, R42,982 million was allocated to Tourism from the total R178,661 million that was made available to Vote 12.
In the current 2007/2008 fiscal year, R48,498 million has been allocated to Tourism. The increase in the 2007/08 financial year is a R5,516 million or 12.8 % increase on the previous financial year's allocation (i.e. 2006/2007).
In the 2008/2009 fiscal year, a provision has been made for R50,931 million, followed by an amount of R65,451 in the 2009/2010 fiscal year.
In total, it is projected that the Tourism budget will increase by an estimated 35% from R48,498 million to R65,451 million over the coming Medium term.
In our plans to meet the national and provincial priorities of accelerated and shared growth for our Province, we propose the following priorities for 2007/2008:
1. The development of tourist sites, attractions, routes and infrastructure. This will be guided by a reworked version of the Integrated Tourism Development Framework (ITDF), which will emphasise a wider distribution of tourists within the Province.
2. We will pursue a vigorous Tourism Human Resource Development programme to develop an appropriately skilled and highly productive workforce. This will include the implementation of skills development programmes and ensuring that employers maximise opportunities for employee development.
3. Through the upscaling of the Tourism Enterprise Development programme, we will intensify our participatory interventions by implementing a tiered support strategy that addresses the needs of the full spectrum of entrepreneurs. These interventions will also promote local tourism development and will be linked to other departmental and provincial intervention strategies such as Die Plek Plan. There will be a strong emphasis on the development of an economic empowerment programme that will focus particularly on women, the youth, rural residents, and persons living with disabilities.
4. We will establish an array of interventions to ensure the competitiveness of our tourist destination. These will include the promotion of service excellence; and the implementation of a destination monitoring and evaluation framework together with a quality assurance inspectorate. It will also include a further roll-out campaign to help the people of the Western Cape understand their role in tourism; and to also get them to experience tourism. (Refer to theme reflected in postcards: Beauty in the Environment.)
5. The role of Cape Town Routes Unlimited as a provincial destination-marketing organisation is being refined to be cost effective and reflective of the organisation moving beyond the status of a new organisation. The setting of distinct KPIs and the development of focused strategies to establish and position Cape Town and the Western Cape as a premier destination for leisure, business and events will be the main focus.
From the above and in gearing up for 2010 and beyond, the key interventions and budget allocations are:
1. Continuation of the Tourism Safety and Security programme, including the establishment of an interactive tourism safety and support website, with a committed amount of R1 million.
2. The development of a 2010 Tourism Accelerated Development Plan with a committed amount of R2 million, by using the FIFA World Cup in 2010 as a focal point to accelerate interventions to making the destination world class so that it can benefit maximally from the global publicity and word-of-mouth promotion and cope with the anticipated rapid increase in tourist volumes in the years immediately after the event.
3. Implementation of the Tourism Development Areas' projects, as arising from the ITDF review with a committed amount of R2,2 million.
4. Upscaling the Tourism Enterprise Development programme with a committed amount of R4,6 million, which includes the Tourism Tiered Support System and the Tourism Blue Chip Investment Portfolio that has been developed to facilitate entry into tourism businesses by suitable tourism entrepreneurs.
5. Our biggest allocation is the earmarked funding of R23 million to CTRU, of which CTRU has identified the following priorities for this fiscal year: Domestic Marketing; International Marketing; Marketing Intelligence; eBusiness Platform; Client and Business Relations, PR and Communications, and Visitor and Membership Development.
The above priority interventions will be facilitated and enhanced through the following mechanisms:
a) The Western Cape Tourism Development Framework, with its defined targets and outcomes that need to be achieved over a ten-year timeframe. The Western Cape Tourism Development Framework is the destination vision and strategy for tourism in the Western Cape and is the sector strategy for tourism that forms part of the Department's Micro-economic Development Strategy. The Western Cape Tourism Development Framework will ensure JOINT planning, budgeting and implementation between the 3 spheres of government in the first instance and all of the social partners in the second instance.
b) The Western Cape Tourism Development Partnership is the formally constituted co-operative governance body [as derived from the Western Cape's Provincial Development Council's (PDC) Tourism Task Team] that will ensure that the partners act in an aligned manner to achieve cost-effective use of our collective resources. Each of the delegations [being Government, Business, Labour, Civil Society; and Education] will meet on their own on a quarterly basis leading up to a quarterly plenary session of the whole Partnership. In addition, we are in the process of constituting the following sub-committees that will be made up of nominated representatives from each delegation of the Partnership and will meet on a more frequent basis to deal with specific issues:
- Tourism Growth: Its mandate is to address all matters related to defining growth; investment recruitment; increasing employment; marketing the destination and its tourism products; new possible sub-sectors, niches and products; increasing the number of direct flights to the Province; reducing the impact of seasonality on both business and labour; cooperative marketing; co-operation with other sectors to enhance the tourism offering; the development of enterprises from the start-up phase to global competitiveness; the competitiveness of the destination; and the general enhancement of the image of the destination.
- Tourism HRD: Its mandate is to address all matters related to HRD as outlined in the Western Cape Tourism Development Framework.
- Participation in Tourism: Its mandate is to address all matters related to economic empowerment with particular emphasis on women, youth and people living with disabilities; encouraging new players to establish tourism enterprises; local economic development; the geographic distribution of the benefits of tourism; tourism regulation; and the enhancement of a supportive and conducive tourism business environment.
- Tourism Infrastructure and Transport: Its mandate is to address matters related to the general development of sites, attractions, routes and tourism-enhancing infrastructure. Its specific briefs are:
- Tourism 2010: Its mandate is to make recommendations on how to place the industry to benefit maximally from the significantly increased exposure the Western Cape will receive before, during and after the 2010 FIFA World Cup Finals.
- to revise and constantly update the Integrated Tourism Development Framework and to participate fully in any public participation process to popularise the Plan across the Province;
- to develop advocacy positions for the Partnership on public transport as it affects tourism, tour operator licences and broadband availability; and
- to address matters related to road and pedestrian signage as it affects tourism.
