Domestic Tourism Growth Strategy
implementation
18 March 2014
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
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global tourism overview …
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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.
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Tourism growth in South Africa …
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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 9 188 368 international tourists visited South Africa. This
was 10.2% more than 8 339 354 tourists who travelled to the country in
2011. 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 133 000 visitors
With this level of growth, the sector’s potential to provide more youth
business and employment opportunities are high.
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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 31 000 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.
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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 R76 553 million in 2008
to R101 297 in 2011. This was also an increase from R 99 072
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.
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competitiveness of the sector …
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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.
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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.
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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.
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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:
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innovation
strategic partnerships and collaboration
providing information and knowledge management service
strengthening institutional capacity
we developed strategic frameworks …
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NDT is guided in its work by the National Tourism Sector Strategy (NTSS)
developed with industry in 2011 and under implementation.
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The NTSS responds to the Growth Path and in line with the NDP
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It seeks to reduce unemployment, inequality and poverty through tourism growth
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NTSS focused the industry on the developing domestic tourism as a backbone for
the sector
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As a result, Domestic Tourism Growth Strategy was formulated in 2012 and under
implementation
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Frameworks for the development of niche tourism markets have been developed in
Culture and Heritage, rural tourism, avitourism, events and social tourism
strategies
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…background - NTSS
VISION
To be a top 20 tourism destination in the world by 2020
THEME1
Tourism Growth and the
Economy
CLUSTER 1
Policy, Strategy,
Regulations,
Governance, and
Monitoring &
Evaluation
THEME2
Enhanced Visitor
Experience
CLUSTER 2
Tourism Growth
& Development
2.1 Demand
2.2 Supply
CLUSTER 3
People
Development
THEME3
Sustainability and Good
Governance
CLUSTER 4
Enablers of
Growth
strategic Objectives …
Theme 1: Tourism & the Economy
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To grow the tourism sector’s absolute contribution to the economy
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To provide excellent people development and decent work within the tourism
sector
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To increase domestic tourism’s contribution to the tourism economy
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To contribute to the regional tourism economy
Theme 2: Visitor Experience & the Brand
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To deliver a world - class visitor experience
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To entrench a tourism culture amongst South Africans
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To position South Africa as a globally recognized tourism destination brand
Theme 3: Sustainability & Good Governance
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To achieve transformation within the tourism sector
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To address the issue of geographic, seasonal and rural spread
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To promote responsible tourism practices within the sector
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To unlock local government tourism economic development potential
NTSS Priorities…
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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
… 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
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strategic objectives …
1. Increase domestic tourism revenue.
2. Increase domestic tourism volumes.
3. Improve measures and efforts aimed at addressing
seasonality and equitable geographical spread.
4. Enhance the level of the culture of travel and tourism
among South Africans.
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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):
403 000 (2015) and 461 700 (2020);
Jobs (Direct & Indirect):
968 300 and 1,1 million in 2015 and
2020
Domestic contribution to GDP
55% (2015) and 60% (2020)
Domestic holiday trips
16 mil (2015) and 18 million by (2020).
:
we re-engineered the organisation …
International Tourism Management
jjjjjjjjjjjjjj
• 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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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, yearround 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.
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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
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we consolidated our programmes…
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Social Responsibility Implementation (SRI) Programme is
poverty alleviation and job creation through tourism
development.
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Branding of Visitor Information Centres
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Educators Seminars and Service Excellence campaigns
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Capacity building programme for rural districts
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Local government tourism training programme
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Tourist guides regulations (Registrars Powers, Registration,
associations, database, badge, illegal guiding, enforcement,
reporting etc.).
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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.
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Annual National Tourism Careers Expo (NTCE),
• Chefs Training for over 1600 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,
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Chefs Training programme
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.)
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TEP Strategic business support …
1. Business
Support
Business
Consulting
Services
Funding
Support (BDF)
Needs Analysis,
Intervention Plans,
Assessments
2. Skills
Development
Business Leadership Programme
Mentorship
3. Market
Access
South Africa
Hidden Treasures
Participation
Business Linkages
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
Exhibitions
Events
Advertising
Marketing
Collateral
Website Listing
Public Relations
Networking
Industry
Competitions
Province
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
Northern Cape
North West
Western Cape
Total
Total
420
366
964
1176
321
436
195
220
982
5080
Limpopo
321
Gauteng
220
North West
Northern
Cape
Mpumalanga
KwaZuluNatal
366
1176
Eastern
Cape
982
436
Free
State
195
Western
Cape
964
420
Support for rural job intensive tourism
infrastructure projects …
Projects to be considered are those that:
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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
Examples; Kgamothaga – Atteridgeville
Mamelodi Rondavels
Moretele Park Chalets
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.
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...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
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...thank you
Soza Simango
012 444 6465
ssimango@tourism.gov.za
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