1 South Africa Tourism Satellite Account Parliament Portfolio Committee on Tourism 12 October 2010

2 Content Important concepts and definitions The TSA process in South Africa Draft TSA for South Africa, 2005 Tourism Statistics at Statistics South Africa

3 Concepts & Definitions Country of Residence Lived in RSA for at least one year Intend to live in RSA for at least one year

4 Concepts &Definitions Forms of Tourism Inbound Domestic Outbound

5 Concepts &Definitions The Usual Environment Once a week or more 40 kilometres

6 Concepts &Definitions Tourist “ person traveling outside the usual environment for more than one day but not more than a year and the person is not remunerated at the destination”

7 TSA process TSA process in SA Develop expertise through the UNWTO (ongoing) March 2002 May Oct 2004 April 2005 July WTTC developed simulated TSA for SA WTTC update for SA Inter-institutional committee (working team) formed Visit by French expert to provide advice for development of TSA Development of new data sources for the TSA Visit by TSA expert to assess the status of the TSA Discussion document on the status of the TSA Development of TSA model based on supply and use tables Addressing data gaps – further development of the TSA model and discussion documents on the status of the TSA

8 TSA process TSA process in SA Develop expertise through the UNWTO (ongoing) May 2009 Nov 2009 Nov 2010 First draft TSA for SA, 2005 Indaba National Accounts rebased and benchmarked Final TSA for SA 2005 and pre limenary TSA for SA for 2006 to 2008

9 TSA process Only TSA from 2002 to 2007? NO Domestic tourism module in the General Household Survey – became the Domestic Tourism SurveyDomestic tourism module in the General Household Survey – became the Domestic Tourism Survey SAT departure survey – SASQAF (NSS) – acceptable statisticsSAT departure survey – SASQAF (NSS) – acceptable statistics Re – engineering of the Tourism and Migration releaseRe – engineering of the Tourism and Migration release Standardisation of concepts and definitions within Stats SA and between organisationsStandardisation of concepts and definitions within Stats SA and between organisations

10 Draft TSA, 2005 Launch of the draft TSA Joint Launch Two phased approach Stats SA SATDEATSARB

11 Draft TSA, 2005 The 10 tables of the TSA

12 Draft TSA, 2005 Key concepts used in the TSA

13 Draft TSA, 2005 Flows of tourism expenditure through the South African economy, 2005

14 Draft TSA, 2005 The Key Results of the draft TSA for SA, 2005 Gross value added of the tourism industriesR million (4,7%) Tourism direct gross value addedR million (3,1%) Tourism direct gross domestic productR million (3,0%) Direct employment in the tourism industries (4,3%)

15 Draft TSA, 2005 Results of the TSA (UNWTO) versus WTTC (previously quoted by industry) Draft TSA, 2005WTTC, 2005 Direct contribution to GDP3,0%3,29% Direct and indirect contribution to GDP - (The TSA ONLY measures DIRECT contribution to the GDP) 8,15% Direct employment (4,3%) (3,9%) TSA (UNWTO) – Internationally recommended methodological framework for calculating the contribution of tourism to the economy (GDP) WTTC – Simulated model

16 Draft TSA, 2005 Comparison – Tourism vs traditional industries

17 Draft TSA, 2005 Distribution of value added and employment within the tourism industry

18 Draft TSA, 2005 International comparison

19 Tourism Stats Tourism Statistics in Statistics South Africa (short term indicators) Survey of tourist accommodation (P6420) – total income generated by the accommodation industry (accommodation, restaurants and bar sales, other income), stay units available, stay unit nights sold, occupancy rates

20 Tourism Stats Tourism Statistics in Statistics South Africa (short term indicators) Survey of food and beverages (P6410) – total income generated by the food and beverages serving industry (food sales, bar sales, other income)

21 Tourism Stats Tourism Statistics in Statistics South Africa (short term indicators) Tourism and migration (P0351) – arrivals and departures

22 Thank You

23 Draft TSA, 2005 SOURCE DATA International Recommendations on Tourism Statistics (IRTS) TOURISM SATELLITE ACCOUNT Tourism Satellite Account – Recommended Methodological Framework (TSA: RMF) Demand Departure Survey Domestic Survey Arrivals and Departures GHS IES Balance of Payments Supply and Use tables Supply Survey of tourist accommodation Survey of food and beverages Large sample surveys (accommodation, personal services, transport industry, real estate and business services, wholesale and retail trade) EAS Supply and Use tables

24 Draft TSA, 2005 Methodology used for the compilation: TSA:RMF, Dec 2008 Basis – 2005 Supply and Use tables (not benchmarked) 95 industries and 27 goods and services Step 2 Step 1Step 3 Extraction of detailed data (products and industries) Tourism single purpose consumer durables Valuation of reservation services Gross margin – purchased separately Dual classification – tourism exp Cost of production and component of tourism consumption

25 Draft TSA, 2005 No data currently collected by SAT SAT departure survey certified by NSSD as acceptable stats – May 2007 BoP (adj)

26 Draft TSA, 2005 Domestic Tourism Survey GHS tourism module SAT domestic survey Domestic Tourism Survey IC, PCE

27 TSA: what has been published Draft TSA for SA, 2005 Tourism Indaba, May 2009 Based on the 2005 SU-tables – detail for 94 industries and 27 products All stakeholders had until March 2010 to send any comments on data or methodology

28 Developments in National Acc Benchmarking of National Accounts - new base year published in November 2009Benchmarking of National Accounts - new base year published in November 2009 Previous SU-tables: 94 industries94 industries 27 products27 products Industry classification: SICIndustry classification: SIC Product classification: linked to SICProduct classification: linked to SIC ‘ New’ SU-tables: 292 industries292 industries 105 products105 products Industry classification: SICIndustry classification: SIC Product classification: CPCProduct classification: CPC Benchmarked 2005 SU-tables will be published in September 2010

29 Improvements Accommodation Previous SU-tables: Industry:Industry: 1.Hotels Product:Product: 1.Hotels, Restaurants New SU-tables: Industry:Industry: 1.Hotels,motels,botels and inns 2.Caravan parks and camping sites 3.Guest-houses and guest-farms 4.Other accommodation Product:Product: 1.Accommodation services New SU-tables: Industry:Industry: 1.Hotels,motels,botels and inns 2.Caravan parks and camping sites 3.Guest-houses and guest-farms 4.Other accommodation Product:Product: 1.Accommodation services New SU-tables: Industry:Industry: 1.Hotels,motels,botels and inns 2.Caravan parks and camping sites 3.Guest-houses and guest- farms 4.Other accommodation Product:Product: 1.Accommodation services

30 Improvements Transport Previous SU-tables: IndustryIndustry 1.Railway transport 2.Other scheduled passenger land transport and other non- scheduled passenger land transport 3.Freight transport by road 4.Transport via pipelines 5.Water transport 6.Air transport 7.Cargo handling 8.Other supporting transport activities 9.Travel agency and related activities ProductProduct 1.Transport New SU-tables: IndustryIndustry 1.Railway transport 2.Other scheduled passenger land transport 3.Other non-scheduled passenger land transport 4.Freight transport by road 5.Transport via pipelines 6.Water transport 7.Air transport 8.Cargo handling 9.Storage and warehousing 10.Other supporting transport activities 11.Travel agency and related activities 12.Activities of other transport agencies ProductProduct 1.Passenger transport services

31 SU-table and the TSA SU table for 2005 will be published in September 2010 Access to and permission to use unpublished pre-limenary SU –Tables for 2006, 2007 and 2008 Still open to revision (new data, etc). Final TSA for SA for 2005, and pre-lim for 2006, 2007 and 2008 by 30 November 2010

32 Way forward Future development/improvement Separate same-day visitors and tourists (Table 1, 2 and 4) Investigate the possibility of compiling Table 3 (Outbound tourism) (no alternative data source) Use the DTS for the compilation of Table 2 (Domestic Tourism) Research the treatment of housing services provided by second homes on own account or for free – (no alternative data source) Research the treatment of the service charges paid to travel agents, tour operators and other reservation services – (no alternative data source) Improve industry ratios applied to employment and measure the full-time employees - (no alternative data source)

33 Tourism and Migration Travellers versus Tourists (2009) (Tourism 2009, Report (2009)) Foreign travellers Arrivals Departures Visitors Non Visitors Tourists Same day