1. Domestic Tourism Growth Strategy implementation 18 March 2014

2. discussion points…
Overview of the global and domestic tourism landscape
Improving the competitiveness of the sector
Towards the 2020 vision - Strategic frameworks, focus, programmes, business support and engagement forums
The role and rewards for business in growing tourism
Intergovernmental relations and tourism

3. global tourism overview …
Over the past six decades, tourism experienced continued expansion and diversification, becoming one of the largest and fastest-growing economic sectors in the world.
Despite occasional shocks such as global recession and regional conflicts, international tourist arrivals have shown virtually uninterrupted growth – from 25 million in 1950, to 278 million in 1980, 528 million in 1995, and 1,035 million in 2012.
According to the UNWTO Tourism Barometer, International tourist arrivals worldwide will increase by 3.3% a year from 2010 to 2030 to reach 1.8 billion by 2030.
The market share of emerging economies increased from 30% in 1980 to 47% in 2012, and is expected to reach 57% by 2030, equivalent to over one billion international tourist arrivals which encourages markets such as ours to stay ahead of our competitors in order to reap the rewards.

4. Tourism growth in South Africa …
In 1993, South Africa received a mere 3.4 million foreign visitors.
By 2012, the figure had grown by 300 % to 13.5 million visitors, of which 9.2 million were tourists.
in 2012, a total of international tourists visited South Africa. This was 10.2% more than tourists who travelled to the country in More than double the 4% global average in tourist growth according to the UNWTO
The UK, USA, Germany and France remain key source markets with about 1.2 million high yield arrivals
Efforts to market in new and emerging markets in Asia and India have begun to bear fruit with China surpassing France in arrivals in 2012 with over visitors
With this level of growth, the sector’s potential to provide more youth business and employment opportunities are high.

5. according to the Tourism Satellite Account (December 2011) …
Direct tourism contribution to the GDP went up by 5% to 84.3 billion rand in 2011.
Furthermore, direct employment in the sector as a percentage of overall employment in the country went up from 4.3% to 4.5% between 2010 and 2011 representing an increase of about direct jobs in the sector from 2010 to a total direct employment of 598,432 in 2011.
Total domestic tourism expenditure increased from R69 billion in 2010 to R101 billion in 2011, an increase of over R30 billion.

6. Domestic tourism performance …
Total number of domestic tourism trips went down from 26.4 million in 2011 to 25.4 million in 2012 recording a declining growth of 3.8 %.
Number of adult domestic tourists also went down from 13.9 million in 2011 to 12.5 million in 2012.
Although the number of domestic adult travellers and trips has been on the decline, total domestic spend by these travellers has been on the increase;
Domestic tourism expenditure(including the domestic portion of outbound tourism expenditure) went up from R million in 2008 to R in This was also an increase from R million in 2010.
In 2011 domestic tourism accounted for about 58% of total tourism expenditure in South Africa as per the Tourism Satellite Account (TSA) released by StatsSA.

7. competitiveness of the sector …
The industry’s recovery and growth is evidence that we have decisively but not completely dealt with some of the core elements affecting our competitiveness as a destination as outlined in the Global Competitiveness Study 2005 – 2010.
According to this study; the south African industry had to deal with a number of factors to improve its attractiveness as a destination. The factors centred around 5 core elements of supply and demand conditions, firm/business strategies, harnessing supporting industries and sorting out the institutional and regulatory arrangements.
The following issues were identified by the Competitiveness Study as hindrances to growth however the Department in partnership with some industry players are tackling some of these. They are safety and security, lack of innovation, poor skills development, inconsistent quality assurance, poor public transport, poor information provision, aviation pricing and air lift capacity, transformation if the sector, market access and collaboration between government and the private sector.

8. What is NDT doing to deal with challenges…
Under the new Tourism Department, we set ourselves a new VISION:
“To be a catalyst for tourism growth and development in South Africa” and
“To be the top 20 tourism destination of choice by 2020”
MISSION
A strategy focused department, committed to create a conducive environment for growing and developing tourism through:
innovation
strategic partnerships and collaboration
providing information and knowledge management service
strengthening institutional capacity

9. we developed strategic frameworks …
NDT is guided in its work by the National Tourism Sector Strategy (NTSS) developed with industry in 2011 and under implementation.
The NTSS responds to the Growth Path and in line with the NDP
It seeks to reduce unemployment, inequality and poverty through tourism growth
NTSS focused the industry on the developing domestic tourism as a backbone for the sector
As a result, Domestic Tourism Growth Strategy was formulated in 2012 and under implementation
Frameworks for the development of niche tourism markets have been developed in Culture and Heritage, rural tourism, avitourism, events and social tourism strategies

10. …background - NTSS Tourism Growth and the Economy
VISION
To be a top 20 tourism destination in the world by 2020
THEME1
Tourism Growth and the Economy
THEME2
Enhanced Visitor Experience
THEME3
Sustainability and Good Governance
CLUSTER 1
Policy, Strategy,
Regulations, Governance, and
Monitoring & Evaluation
CLUSTER 2
Tourism Growth
& Development 2.1 Demand
2.2 Supply
CLUSTER 3
People Development
CLUSTER 4
Enablers of Growth

11. strategic Objectives …
Theme 1: Tourism & the Economy
To grow the tourism sector’s absolute contribution to the economy
To provide excellent people development and decent work within the tourism sector
To increase domestic tourism’s contribution to the tourism economy
To contribute to the regional tourism economy
Theme 2: Visitor Experience & the Brand
To deliver a world - class visitor experience
To entrench a tourism culture amongst South Africans
To position South Africa as a globally recognized tourism destination brand
Theme 3: Sustainability & Good Governance
To achieve transformation within the tourism sector
To address the issue of geographic, seasonal and rural spread
To promote responsible tourism practices within the sector
To unlock local government tourism economic development potential

12. NTSS Priorities… Calls for a more focus on Rural Tourism Development.
Setting up of a National Conventions and Events Bureau.
More attention to Product and Enterprise Development.
Development of a National Research Framework.
Calls for the need to focus on Domestic Tourism
Engage all other ministries that have an impact on tourism, provinces and municipalities.
More focus on the Africans priority markets in consultation with the industry.
Develop a marketing strategy targeted at the African market
Develop a database of all tourism assets and explore mechanisms & ways of promoting the registration of tourism business in South Africa.
Formalise structures for collaboration and interaction between public and private sector.
Prioritise tourism at provincial and local government.
Identify niche product development and rural tourism development

13. … rationale for domestic tourism
Most people have not had an opportunity to travel in South Africa. Reasons for this vary from affordability, no incentive to travel, time constraints, unemployed and dislike travelling
Lack of travelling culture especially amongst black South Africans due to inadequate marketing and information
Need to increase domestic tourism’s contribution to tourism

14. strategic objectives …
Increase domestic tourism revenue.
Increase domestic tourism volumes.
Improve measures and efforts aimed at addressing seasonality and equitable geographical spread.
Enhance the level of the culture of travel and tourism among South Africans.

15. we set 2015 & 2020 performance targets …
GDP (Direct): R118,4 bn (2015) and R188 bn (2020);
GDP (Direct & Indirect): R318,2 bn (2015) and R499 bn (2020),
Tourist Arrivals: 12,1 mil and 15 mil ( 2015 and 2020);
Jobs (Direct): (2015) and (2020);
Jobs (Direct & Indirect): and 1,1 million in 2015 and
Domestic contribution to GDP 55% (2015) and 60% (2020)
Domestic holiday trips : 16 mil (2015) and 18 million by (2020).

16. we re-engineered the organisation …
International Tourism Management
Strategic and policy direction for the development of South Africa’s tourism potential throughout various regions of the world.
Policy and Knowledge Services
Strategic tourism sector policy development, monitoring and evaluation, research and knowledge management services.
Domestic Tourism Management
Strategic and policy direction for the development and growth of sustainable domestic throughout South Africa.
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17. we strengthened our partnerships …
South African Tourism
Destination Marketing Organisation, set up according to the tourism act.
Promotes South Africa in terms of its unique selling points as an all-season, year-round preferred tourist destination as guided by the tourism growth strategy.
Tourism Enterprise Partnership (TEP)
A Public Private Partnership geared towards the development, growth and sustainability of tourism enterprises.
Tourism Business Council of South Africa
Is the umbrella association for the tourism industry.
Lobby’s and advocates the interest of the private sector on various policy and strategic platforms.

18. we consolidated our programmes…
Service Excellence Standards- SANS 1197
Responsible Tourism Standards – SANS 1162
Tourism Month and WTD Celebrations
Educators Seminars
Guidelines on Visitor Information centres and support
Tourism Enterprise partnership
Domestic Tourism awareness – Radio campaign

19. we consolidated our programmes…
Social Responsibility Implementation (SRI) Programme is poverty alleviation and job creation through tourism development.
Branding of Visitor Information Centres
Educators Seminars and Service Excellence campaigns
Capacity building programme for rural districts
Local government tourism training programme
Tourist guides regulations (Registrars Powers, Registration, associations, database, badge, illegal guiding, enforcement, reporting etc.).

20. skills development & quality assurance …
Tourism HRD Strategy 2008 also proposed mechanisms through the above gaps should be closed including training initiatives such as the programmes the department has now embarked upon e.g.
Annual National Tourism Careers Expo (NTCE),
Chefs Training for over youth,
Sommelier programme – Wine and food
Food Safety programme – new pilot for 100 food quality assurers
Placement of candidates locally and abroad in partnership with industry,

21. Chefs Training programme

22. Research Approach … NTSS informs the research approach:
MoU with Universities (research collaboration).
National tourism research and Knowledge management committee (alignment – e.g. Indicators).
Minister’s Policy Research Expert Forum (quality assurance).
Development of a country (consolidated) research agenda.
Current research projects (Tourist guides - cross border, destination competitiveness, service excellence etc.) 3

23. TEP Strategic business support …
2. Skills Development
3. Market Access
Business Consulting Services
Funding
Support (BDF)
Needs Analysis, Intervention Plans, Assessments
South Africa Hidden Treasures
Participation
Business Linkages
Exhibitions
Events
Advertising
Marketing Collateral
Website Listing
Public Relations
Networking
Industry Competitions
Business Leadership Programme
Mentorship
Learning Networks
Business Skills Training
4 Modules = Admin, Finance, HR, Marketing
TEP Toolkit Workshops
Tourism Awareness
Tourism Channel
Website Planning
Communication in Tourism
Pricce Setting
Quality Assusrance and Customer Care
Exhibitions
Business Planning
Marketing in Tourism
Business Administration
Customer First Training

24. CLIENT REGISTRATION TEP: 2014 Q3
Province
Total
Eastern Cape
420
Free State
366
Gauteng
964
KwaZulu-Natal
1176
Limpopo
321
Mpumalanga
436
Northern Cape
195
North West
220
Western Cape
982
5080
Limpopo
321
Gauteng
220
964
436
Mpumalanga
North West
Free
State
KwaZulu-Natal
Northern Cape
366
1176
195
Eastern
Cape
420
Western Cape
982

25. Support for rural job intensive tourism infrastructure projects …
Projects to be considered are those that:
Unlock domestic tourism opportunities,
Competitive and position South Africa’s tourism industry
Generate a labour content of between 35% and 60% of the total project cost
Target rural areas and areas with the highest unemployment rate
Are viable and have the potential to be sustainable in the long-term
Are in line with the NTSS and DGTS focus areas

26. Examples; Kgamothaga – Atteridgeville Mamelodi Rondavels Moretele Park Chalets

27. Government cannot do it alone … how can business partner?
Strategic partnerships in business support, transformation and business linkages
Increasing economic opportunities through staff training and customer satisfaction which increases repeat rates, volumes and yield.
Positively influencing community attitudes towards tourism through local sourcing of products
Building your brand by incorporating local culture , supplies and services in product development to offer a unique guest experience
Decreasing operating costs by sourcing local goods and services and reduce leakages from imports and transport costs
Creating inclusive business models that improve employment practices, build business linkages and initiatives that demonstrate positive social and economic impacts reducing poverty, unemployment and inequality.

28. ...IGR implications Familiarisation with the domestic tourism strategy
Development of domestic tourism plans and campaigns linked to Provincial and District approaches
Roll out of such domestic tourism plans and campaigns in partnership with District and Provincial sector Departments
Identify programme linkages with National Sector Departments, external/ private/ CBO & NGO and donor funding partners

29. Soza Simango 012 444 6465 ssimango@tourism.gov.za
...thank you
Soza Simango