Tourism and Local
Government
Douglas Cohen
dcohen@salga.org.za
012 369 8012
July 2010
Economic Development &
Planning Directorate
Purpose
• The purpose of the presentation is to inform to
the Portfolio Committee about the South African
Tourism Sector and it relates to the experiences
and challenges at Local Government.
• To provide an overview on the impact of the
implementation of tourism national plan for the
local sphere of government.
• To invite comments for further debate and
discussion the opportunities and challenges of
tourism for Local Government.
Overview
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About SALGA
Introduction for Presentation
Local Government & Tourism
7 Points related to Local Government Tourism
Support
• National Tourism Sector Strategy & Action Plans
• Key Local Government Comments on the NTSS
Action Plans
SALGA’s
Positioning
THE PLAYERS: A VAST ARRAY OF INSTITUTIONS, WITHIN
WHICH SALGA HAS TO CRAFT ITS UNIQUE ROLE
National
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COGTA
Treasury
Presidency
DME
DEAT
dti
NDOH
Tourism
Provincial
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Premier’s
Office
Local
Government
Departments
SALGA
Municipalities
Other
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DBSA
FFC
Donors
World Bank
Civil Society
UCLGA
CLGF
Etc...
Support
Advise
Provincial Programmes
OCEO
Finance and Corporate
Services
Strategy, Policy and
Research
Community
Development
VISION
Infrastructure and
Municipal Services
Represent
Municipal Institutional
Development
ANALYSIS
Governance & IGR
SALGA’s three key
main roles cut-across
to underpin its 5-Year
Strategic Objectives &
Programmes
Economic Development and
Development Planning
SALGA’s Organising
Framework
To be consultative, informed,
mandated, credible and
accountable to our membership &
provide value for money
Overview
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•
•
•
About SALGA
Introduction
Local Government & Tourism
7 Points related to Local Government Tourism
Support
• National Tourism Sector Strategy & Action Plans
• Key Local Government Comments on the NTSS
Action Plans
Introduction I
• Local government tourism represents the third sphere of
public sector tourism.
• While national and provincial tourism organisations are
chiefly responsible for the design and implementation of
tourism strategies and national and international
marketing campaigns, it is the lesser-known local
government authorities that often shoulder the
responsibility for promoting and supporting the local
tourism products.
Introduction II
• Local Government also has significant impact not only
the business environment but also on the natural and
cultural resources in and around tourism destinations; for
example:
― Municipal roads, lighting, water and sewerage, public transport
systems, signs, and, at times, airports and ports.
― The provision of visitor information and funding regional and local
tourism organisations.
― The operation of attractions such as museums, art galleries,
sports stadia, convention centres, parks, gardens, events, tours,
and other amenities.
― The tourism sector as it contributes to the social, cultural,
economic and environmental well-being of an area in the
following ways:
Introduction III
Support for more vibrant and active business and local communities.
Economic benefits from visitor spending in the area create employment and facilities,
retail outlets, and services that the local population could not sustain on its own
Tourism can help revitalise small municipalities and create a sense of local identity and
pride
Attract events that give both residents and visitors the opportunity to celebrate and
experience what is special and unique about their community.
Promotes a brand provides an experience that will attract new investment and new
residents, both locally and globally.
Overview
•
•
•
•
About SALGA
Introduction
Local Government & Tourism
7 Points related to Local Government Tourism
Support
• National Tourism Sector Strategy & Action Plans
• Key Local Government Comments on the NTSS
Action Plans
Local Government
and Tourism
Local Governments Expectations From…
National Department of Tourism
• Access to funding assistance for tourism projects, infrastructure,
training and capacity building programmes
• Improved grading of establishments and standardised tariffs to be
obligatory
• Uniform regulations, e.g. rezoning costs and planning conditions
• Provide greater access regarding information on government
resources, such as global trends research
• Create enabling environment, i.e. safety and security, transport.
• Improved local event and product marketing
• Identify best practice, document and disseminate it
Local Government
and Tourism
Local Governments Expectations From…
Provincial Tourism Departments & Agencies
• Signage Review red tape around the signage (clearer
guidelines/expedite processes)
• Share research into local and regional trends
• Identify best practice, document and disseminate it
• Identify corridors and routes
• Greater alignment between Cities and Province with regards to
developing and implementing tourism strategies
• Share in Local Government challenges
• Access to funding assistance for tourism projects, infrastructure,
training and capacity building programmes
• Assistance in transformation of the tourism industry
• Guidelines, Booklets etc to assist aspiring and emerging tourism
product owners
Local Government
and Tourism
Local Governments Expectations From…
SALGA
• Facilitating role between municipalities
• Knowledge sharing, i.e. identify best practice, document and
disseminate it
• Access to research, such as the statistics of legal and illegal tourism
accommodation activities
• Capacity building, such as with Tourism and LED officers.
• Funding Assistance for Training Programmes and Tourism
Marketing
• Uniform regulations, e.g. rezoning costs and planning conditions
Overview
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•
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About SALGA
Introduction
Local Government & Tourism
7 Points related to Local Government
Tourism Support
• National Tourism Sector Strategy & Action Plans
• Key Local Government Comments on the NTSS
Action Plans
# 1: Local Economic
Development &
Tourism I
• Many municipalities have been tasked with a
developmental agenda.
• This includes the formulation, review or implementation of
Local Economic Development (LED) strategies.
―The LED planning process forms part of the IDP
process as contemplated in the Local Government:
Municipal Systems Act, 2000 (Act 32 of 2000).
• In many LED strategies tourism is seen as a catalyst for
growth.
# 1: Local Economic
Development &
Tourism II
• However in reality…
―Tourism as a LED sector would be not relevant for
certain municipalities.
―The focus and needs of a Metro would be very
different from smaller towns and/ or rural villages,
Amongst the 283 local authorities there
therefore there is no “one-size” fits approach.
are only about 95 LTO’s and on district
―The success factors
thatthe
result
in good
level and
Metros
it is LED
evenalso
worse
relate directly togiven
tourism:
the few RTO’s in the country.
 Political buy-inMost
and oversight
much or too
little)
of these(too
structures
barely
 Ongoing publicsustainable.
private partnership and dialogue
 Facilitation verses leadership role
 Focus on the basics before expanding
# 2: Tourism Policy &
Local Government I
• Tourism is a specific local economic development
directive that is mandated by the Tourism Act, 1993.
• The White Paper on the Development and Promotion of
Tourism sets out a range of roles and responsibilities of
local government in fulfilling the function of “local
tourism”.
• Section 78(3) of the Local Government Municipal
Systems Act of 2000
― Allows a municipality to establish and fund an
external mechanism such as a Regional Tourism
Office to render Local Tourism Destination Marketing,
Centralised Booking and Information Services.
# 2: Tourism Policy &
Local Government II
• Tourism is highlighted as responsibility of District
Municipalities in the Municipal Structures Act, sec 84 (m)
• The Tourism Black Economic Empowerment (BEE)
Charter Launched in May 2005 includes a Local
Government commitment.
# 2: Tourism Policy &
Local Government III
• An example of IDP Analysis (DEAT April 2010):
―Does the municipality exhibit a good understanding of
its municipal area in terms of environmental / tourism
management and planning (tools / models)?
# 3: Funding (for an
unfunded mandate)
• Tourism features very low on the priority outputs of the
local municipalities due to priority needs such as water,
electricity, infrastructure, housing, sport and recreation.
• Tourism, like Local economic development (LED) is
regarded as an unfunded mandate placed on Local
Government.
• The current lack of specific budget allocation towards the
development of tourism at local government level is
particularly problematic and results in:
―Non strategic / low impact projects
―Unsustainable initiatives
―“Wish lists” instead of “action plans”
# 4: Capacity of Local
Government
• The level of expertise and focus that municipalities have
in tourism varies considerably. This has resulted in
uneven visitor and community experiences.
• Understanding of the strategic nature of Tourism needs to
be understood both by the senior politicians and officials.
• The arrangements that manage and direct municipalities
internal coordination of tourism responsibilities:
― The organisation of internal structures to best facilitate LG’s role
in tourism,
― Aligning tourism initiatives into the annual planning and budgeting
cycles.
― The use of performance measurement to gauge the success of
municipalities’ tourism strategies and plans.
# 5: Tourism Infrastructure:
Information Centres and Road
Signage I
• The effective and efficient supply of tourist information is
fundamental to ensuring that maximum tourism value is
extracted from visitors.
• Equally important to this supply of information are the
mechanisms through which such information is supplied.
• Many visitors to a local municipality will not be aware of
the range of tourist activities that they could engage in
while there. Tourism information centres are particularly
important in the delivery of tourist information.
―The management, funding institutional arrangements
around such information centres is unclear.
―Access to such information centres is currently limited.
# 5: Tourism Infrastructure:
Information Centres and Road
Signage II
• The importance of tourist road signage is often underestimated. The capacity of Local Government to manage
and fund tourist road signage is extremely limited.
―It is also difficult to understand many of the historical
sites of the township without a guide given the lack of
interpretive boards.
• There is an often a breakdown in communication
between local, provincial and national with regards to the
permissions and standards in Tourism signage.
―This is frustrating all parties concerned.
# 6: Recognition of the
role Local Government
plays within Tourism
• Local Government’s involvement in a wide range of areas
relating to tourism, including:
― The integration of tourism related responsibilities within the
municipality, strategic planning (IDP), land use management,
developing LED and tourism strategies, by-law management and
enforcement, supporting and encouraging emerging service
providers as well as in the resourcing and assisting of the local
tourism market together with those in the industry.
• Local Government needs to ensure that the local
infrastructure needs of tourism and communities are met
and appropriately funded
• Often municipal tourism agencies are established to
support to drive the implementation and management of
tourism within a municipality.
# 7: Improved
Intergovernmental
Alignment and Support
• The linkages (both ways) on Tourism related issues
between National, Provincial and Local are weak.
• There needs to be improved:
― Working relationships on tourism-related issues between
municipalities and regional stakeholders through collaborative
alliances.
― A defined Tourism support package (resources, funding and
capacity) to support Local Government
― Resources to assist and direct investment at Local Government
to realise tourism opportunities.
― A knowledge and exchange platform to highlight best-practice
case studies from other municipalities to encourage peer-to-peer
learning.
Overview
•
•
•
•
About SALGA
Introduction
Local Government & Tourism
7 Points related to Local Government Tourism
Support
• National Tourism Sector Strategy & Action
Plans
• Key Local Government Comments on the NTSS
Action Plans
Local Government and
Key Focus Areas
Priority
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3
4
5
6
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8
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10
10
10
13
13
13
16
17
18
19
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19
22
23
24
Focus Areas
Prioritising tourism at national government level and improving inter-governmental coordination
Improve research and information management
Strengthen collaboration and partnerships within the tourism industry
Improving general awareness of tourism among South Africans
Marketing & branding (including distribution)
Transformation
Domestic tourism development
New market development - e.g. geographic, market-level and niche markets
Safety and security
People development for tourism and hospitality
Capacity building and budget allocations at local government level in tourism planning and
management
Tourist rmation Provision
Improve community benefits from and participation in tourism
Service excellence
Co-ordinated product development, including in areas with untapped potential
Business tourism / events
Provide decent work in the tourism industry
International airlift
Quality assurance and Universal Accessibility
Investment facilitation, including development finance & enterprise development
Best practice in environmentally responsible tourism
Ground transport
Domestic airlift
African tourism development strategy, including facilitation of travel
Local Government and the Strategic Thrusts
Local Government and the Strategic Thrusts
Local Government
and the Action Plans
Strategic Trust
Action Plan
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Research, Information and KM
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Compulsory registration for all tourism businesses in SA
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Strengthen collaboration and
partnerships within Tourism
Industry
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Ministers workshops with industry & public sector in each
province
Cross cutting structures at provincial and local government
levels to encourage alignment and co-operation
Capacity building an budget
allocation at Local Government
level in tourism planning and
mgmt
•
Investment facilitation and
enterprise development
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Engage with SALGA, COGTA etc to ensure Tourism is
included as an important criteria in infrastructure planning
and development
Include Tourism in IDP’s.
Tourism venture capital fund to support tourism
entrepreneurs.
Simplify the regulatory requirements for tourism business
holistically / across all spheres of government
•
Business Events and Tourism
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National Events Bureau / One event per province
•
Safety and Security
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Tourism Awareness Training
•
Improve community benefits from •
and participation in tourism
Build awareness about Tourism among communities –
particularly rural communities to eliminate unrealistic
expectations.
Overview
•
•
•
•
About SALGA
Introduction
Local Government & Tourism
7 Points related to Local Government Tourism
Support
• National Tourism Sector Strategy & Action Plans
• Key Local Government Comments on the
NTSS Action Plans
Key LG Comments in
NTSS Action Plans I
Cluster
Topic
Comments
1
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Strengthen collaboration
and partnerships within
the tourism industry
•
Research indicates that the beyond
their LED role, Local Government
can act as a key strategic player in
facilitating tourism
2
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Capacity building and
•
budget allocation at local
government level in
tourism planning and
management
•
The current lack of specific budget
allocation towards the development
of tourism at local government
level is particularly problematic
Tourism planning and destination
development can no longer
function as an unfunded mandate
Key LG Comments in
NTSS Action Plans II
Cluster
2
Topic
Comments
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Tourism Information
provision
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2
3
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Investment facilitation,
including enterprise
development and
development finance
•
Improving general
awareness of tourism
among South Africans
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The level of expertise and focus
that municipalities have in tourism
varies considerably
Need to a more strategic
understanding of the local tourism
sector
Functional Visitor information
Centre (business) Model (LTA)
Required.
Fully support the rationalisation of
the funding agencies
Need for an improved small
business support model
A programme for Local
Government i.e. politicians needs
to be development.
Key LG Comments in
NTSS Action Plans III
Cluster
3
Topic
Comments
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Ground transportation
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4
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Improve community
benefits from and
participation in tourism
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Transport plans and Tourist
Transport plans by local
government run the risk of not
being aligned, locally and
provincially.
Guidance and best practices
around this issue need to be
shared.
Where done correctly, Tourism may
improve the livelihoods of poor
people in four main ways, including
economic gain through
employment and micro-enterprise
development
Final Thoughts
• Local Government, both Metro and Local Municipalities, are a key
stakeholder in delivering a quality Tourism product and service (this
has been recognised in the NTSS)
• While the institutional frameworks and policies appear in place the
benefits of Tourism are not making the largest possible economic and
geographically spread impact.
• Issues such as LG capacity, resources, intergovernmental and public
private relations remain challenges.
― Provincial Models require a bottom up as well as top down strategy
• There are simple “quick wins” to unlock some of the red tape at and
for the Local Government:
― Process / standardisation of road signage / custodian of the i-sign
― Visitor Information Centres / Local Tourism Authorities
― Tourism metrics
― Identifying, celebrating good Tourism practice (e.g. Theewaterskloof)
Questions
“Don't tell me where your priorities are.
Show me where you spend your money
and I'll tell you what they are.”
James W. Frick
Douglas Cohen
dcohen@salga.org.za
012 369 8012