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DEAT PRESENTATION ON TOURISM DEVELOPMENT Lisa-Ann Hosking: Chief Director Tourism Development.

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Presentation on theme: "DEAT PRESENTATION ON TOURISM DEVELOPMENT Lisa-Ann Hosking: Chief Director Tourism Development."— Presentation transcript:

1 DEAT PRESENTATION ON TOURISM DEVELOPMENT Lisa-Ann Hosking: Chief Director Tourism Development

2 CONTENT Background Tourism Enterprise Programme Tourism Investment Promotion Implementation of the Tourism BEE Charter

3 Tourism has been identified as an immediate priority sector within the Accelerated and Shared Growth Initiative (ASGIS-SA): Government has therefore set a Clear Agenda for Tourism Sustainable GDP Growth Sustainable job creation Redistribution and transformation The Tourism Act aims to achieve...... through six key objectives... Increase in tourist volume Increase in tourist spend Increase length of stay Improve geographic spread Improve seasonality patterns Promote transformation

4 The growth in the past 11 years was exceptional with tourism increasing by more than 100% since 1994 to close at 7,4 million in 2005. Foreign Tourist Arrivals to South Africa (1998 - 2005) Source: SAT tourist arrivals 2005 Tourism grew rapidly between 1994 and 1998 at a rate of 11.8%. We consolidated our performance between 1998 and 2001 and then grew by 6.2% from 2001 to 2005. CAGR: 1994 – 2005: 6.5% 1994 – 1998: 11.8% 1998 – 2001: 0.3% 1998 – 2005: 3.7% 2001 – 2005: 6.2% 101% growth

5 Domestic Tourism 14,7 adults traveled within the Country in 2005, resulting in 36,2 million domestic trips Total domestic spend amounted to RF21,2 billion

6 Overview of Tourism Trends Tourism is therefore expected to deliver significant value to the country in the form of: –Increased contribution to GDP –Creation of sustainable employment –Economic transformation and expansion

7 GOAL Create conditions for sustainable tourism growth and development for the benefit of all South Africans

8 CONTENT Background Tourism Enterprise Programme Tourism Investment Promotion Implementation of the Tourism BEE Charter

9 Tourism SMME Development Main Aim Encourage and facilitate : the growth and expansion of small, medium and micro-enterprises (SMMEs) Job Creation Income generation opportunities

10 TEP assists SMMEs to: 1.MARKET THEMSELVES (exhibitions, marketing trips, brochures, web sites, routes, linkages with partners such as hotels) 2.DEVELOP THEIR SKILLS (customised and generic training at different levels) 3.OBTAIN FINANCE (business plans and feasibility studies)

11 Tourism SMME Development During the first six years of operation, TEP assisted more than 3400 SMMEs to grow their revenues by more than R2,4 billion collectively and creating more than 32 275 job opportunities in the process. More than 3000 people have attended courses to date. A diverse range of SMMEs are supported: –Direct: Accommodation (B&Bs, home stays, guesthouses, hotels etc), tour operators, travel agents, guides, restaurants, craft enterprises. –Rural and urban, community based, big and small –Indirect providers of goods and services to the industry TEP works at grassroots level (66% of SMMEs assisted are micro/ less than 5 employees. Business Development consultants in each province 2006/07 Financial Year: 1683 SMMEs were trained, 6525 jobs were created, 368 transactions were facilitated, of which 225 were BEE (61%)

12 WHAT DOES TEP DO? Business Linkages Non-Financial Assistance Training and Technical Assistance Fund  Facilitating Business Linkages  Advice and Information based on Long Term Relationships and Trust developed over time  Business Plans  Feasibility Studies  Grading Assistance  Association Memberships  Training aimed at needs  Marketing Assistance  Tendering for Government and Other Contracts  Other Appropriate Capacity Building Support

13 Other TEP Initiatives Training for Tourism SMMEs and Trainers –Courses developed in Tourism Awareness, Finance, Human Resource Development, Marketing and Exhibition Readiness HIV/ AIDS Workplace Programmes for Tourism SMMEs World Cup Host City Programme to ensure that SMMEs are ready to take up the opportunities presented by 2010 Events and Trade Shows Implementation of the Tourism BEE Charter

14 TEP Training Initiative The mandate of the TEP training department is to deliver tourism training to SMMEs in all provinces Limited human resources, therefore the establishment of collaborative partnerships between the Training Department, local municipalities, district municipalities, provincial tourism authorities and provincial tourism departments In the private sector the training department is collaborating with the International Hotel School and the Akani Hotel Group

15 Objective of the Training Initiative Increase the number of successful SMMEs within the industry Increase their profitability through skills improvement Enable and facilitate transformation within the industry Capacitate tourism enterprises to operate legally Enable SMMEs to access markets Facilitate job creation within the industry Build capacity of existing trainers and service providers

16 THE DEVELOPMENT OF THE TEP TOOLKITS To address this gap in the market and to ensure broad outreach, TEP developed a number of practical toolkits to guide tourism SMMEs through various practical processes. These included: - LEGAL TOOLKIT - BUSINESS PLAN TOOLKIT, and - WEBSITE TOOLKIT A LETS DO BUSINESS Toolkit on how to access TEP more effectively was also produced.

17 THE DEVELOPMENT OF THE TEP TOOLKITS Based on a workshop held with tourism stakeholders TEP has identified five further toolkits that will benefit tourism SMMEs. viz: - Tourism Channel Toolkit - Quality Assurance Toolkit -Communications -Business Administration -Go-2-Market (Market Access/Marketing Strategy) Toolkit Translation into IsiZulu, IsiXhosa, Afrikaans and South SeSotho) ABET Graded 240 000 Toolkits to be distributed

18 TEP 2010 HOST CITY PROGRAMME SMME Product Audits in 16 areas A tool to unveil the state of emerging tourism product. Objectives: To establish destination and product strengths and weaknesses To identify possible gaps in the area’s current strategies The state of the tourism industry in the area in terms of product compliance with respect to business registration, company insurance, health and safety policies, ineffective marketing, lack of market access, skills, infrastructure and lack of information, the need for financial assistance and poor product quality. The TEP interventions required

19 TEP 2010 HOST CITY PROGRAMME The 2010 Host Cities/Regions are as follows: Bloemfontein Cape Town Durban Johannesburg Nelspruit Polokwane Port Elizabeth Rustenburg Tshwane and selected satellite communities relevant to above cities The GCP areas are as follows: East London Elephant Coast Panorama Region Central Limpopo and Pilanesberg, Madikwe, Mafikeng

20 EVENTS AND TRADESHOWS 2006/07: 197 SMMEs were supported to attend Indaba 2006, 25 were supported to attend the Jazz African Heritage (JAH) Festival in the North West Province in February 2007, and 9 were supported to attend Internationale Tourismusbörse Berlin (ITB) in March 2007. ETEYA: Organising and funding a 3-day workshop for the 9 provincial finalists before they go to World Travel Market (WTM). Last year the workshop was held on the 9-11 October 2006. The subjects covered included: - Branding Principles - SA Host Training - World Travel Market overview - The tourism channel, rates and discounting - Presentation by ETEYA winner, Mr Bernard Marobe (Mankwe Safaris) - TEP, “Going International” training course

21 CRITERIA FOR ASSISTANCE SMME HDI/HDE (preferable) Eligible transactions Legal entity Monthly reporting

22 CONTENT Background Tourism Enterprise Programme Tourism Investment Promotion Implementation of the Tourism BEE Charter

23 TOURISM INVESTMENT PROMOTION South Africa’s Tourism Competitive Advantages Macroeconomic stability + World class infrastructure Growing domestic tourism economy Gateway to Africa Strong tourist growth performance since ‘94 Diverse cultures and heritage Natural wealth and biodiversity Developed tourism products and services Value for money destination with great year-round weather!

24 TOURISM INVESTMENT PROMOTION National Portfolio of Investment Projects Projects identified by provincial investment agencies. From private sector sponsored, to community and government driven. From resorts, to wine estates, diving facilities, eco-tourism, cultural tourism, accommodation, etc. Investment sought from R1 million to over R200 million Projects range from “in planning” stages, to under development Example: Thabane Tourism Project Development of a community owned game farm with an upmarket tented camp and a traditional Tswana village in the Cultural Heartland tourism region of Mpumalanga

25 CONTENT Background Tourism Enterprise Programme Tourism Investment Promotion Implementation of the Tourism BEE Charter

26 TOURISM BEE CHARTER Charter and Score developed to promote transformation in the tourism industry BEE Charter Council in place Tools to assist businesses to comply in place (both Public and Private Sector) Regular familiarisation workshops Alignment of the Charter and the Codes of Good Practice


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