PRESENTATION TO TOURISM PORTFOLIO COMMITTEE Building an economy that creates opportunities for all and making tourism to work for all of us 13 November 2015 1 INTRODUCTION • The KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) is tasked with a mandate of ensuring the planning, development and marketing of tourism within the province of KwaZulu Natal. • EDTEA has anchored the implementation of this mandate on the KwaZulu Tourism Master Plan (KZN-TMP). • The KZN-TMP is a comprehensive, strategic guide that provides future direction for the development, growth, management and monitoring of tourism in the province. • The vision of the KZN-TMP is “By 2030 KwaZulu Natal will be globally renowned as Africa's top beach destination with unique blend of wildlife, scenic and heritage experiences for all visitors”. • The plan sets out the key strategic objectives and how to achieve these objectives for the Province and ensuring alignment to the National Tourism Sector Strategy (NTSS) which is a blue print for the tourism sector within South Africa. • The KZN-TMP is also aligned to the National and Provincial policies that are guiding development in South Africa and this include National Development Plan and Provincial Growth and Development Plan. STRATEGIC OBJECTIVES Increase the tourism GDP levels Grow the levels of all foreign visitor arrivals in the Province Increase tourism employment in the province Grow the levels of domestic visitor arrivals in the Province Improve the geographic spread of tourism business and activities within the Province Ensure that Durban becomes/remains THE place to holiday for South Africans and other key markets Improve overall visitor service and satisfaction levels through the Province Achieve significant transformation in the sector Grow events, meetings, incentives and exhibition sector (MICE) as a key an important market area for the Province Improve other niche tourism experiences for which the Province has potential and develop these markets STRATEGIC CLUSTERS The KZNTMP comprises of four clusters, namely: CLUSTER ONE: Policy, Strategy, Governance, Research & Knowledge Management & Monitoring and Evaluation CLUSTER TWO: Planning and Product Development CLUSTER THREE: People in Tourism (HRD and Service Excellence) CLUSTER FOUR: Marketing TOURISM INSTITUTIONAL ARRANGEMENTS The Tourism White Paper (1996) sets out a framework for tourism in line with the provisions of the Constitution of South Africa. The White Paper recognizes the need for a range of role players to “ignite the engine of tourism growth”. The Department in KZN is implementing a programme entitled “Local Government Support” as part of Inter-sectoral Engagements – IGR The overall objective of this programme is to “Integrate efforts amongst various stakeholders, through the provision of common platform for engaging on tourism issues that assists in achieving a coordinated approach into the promotion and development of tourism within the Province. The establishment of these structures assists in creating institutions through which all representative role players concerned with tourism development in KwaZulu-Natal can communicate with each other ,and as such identify challenges of common interest, make recommendations to address such problems and participate in the formulation of policy, strategies and plans of action. As such, we have established the Provincial Tourism Committee which is made up of mayors and the MEC which sits on a quarterly basis The structures ensure that all tourism stakeholders within KZN, work closely to align tourism institutions both in the public and private sector and to provide a focal point for co-ordination. COORDINATING STRUCTURES NAME COMPOSITION OBJECTIVES STATUS Provincial Tourism Committee • Chairperson: MEC • Chairperson of Portfolio Committee of Economic Development and Tourism, District Mayors, Municipal Managers, CEO’s of Public Entities, MEC for COGTA. • Chairpersons of Organised Private Sector organisations. • To coordinate the formulation of the Provincial tourism policy with municipalities • To assist municipalities to develop municipal tourism policies/strategies within the framework of National and Provincial tourism policies and legislation. The structure is fully functional and sits on a quarterly basis Provincial Tourism Forum • Chairperson: CEO of Tourism KwaZulu Natal • Municipal Tourism Managers, Community Tourism Organization Chairpersons, Community Tourism Association Chairperson and other agencies with a tourism mandate. • To serve as a technical committee to the Provincial Tourism Committee on provincial wide tourism issues. The structure is fully functional and sits on a quarterly basis COORDINATING STRUCTURES NAME COMPOSITION OBJECTIVES STATUS District Tourism Forum (DTF) {also applicable to Metro} • Chairperson: Mayor • Chairperson of the District Municipality Tourism Portfolio Committee, Tourism Managers and officers from District and Local Municipalities, IDP Managers, Private Sector representatives and other organisations with a tourism mandate both public and private. • To coordinate all tourism related activities within a particular District and Local Municipality e.g. cross boundary projects. • To integrate Provincial tourism objectives into District and Local plans and priorities and make recommendations to the council. A total of 9 DTF’s are fully functional and sits on a quarterly basis Local Tourism Forum (LTF) • Chairperson: Mayor • Chairperson of the Local Municipality Tourism Portfolio Committee, Tourism Manager and Local Economic Development Manager, IDP Managers, Private Sector representatives and other organizations with a tourism mandate both public and private. • To strengthen local tourism potential and facilitate integration of tourism plans to the broader development objectives of the municipalities • To identify gaps for possible tourism development and facilitate interventions by National and Provincial bodies. A total of 15 LTF’s are fully functional and sits on a quarterly basis COORDINATING STRUCTURES NAME COMPOSITION OBJECTIVES STATUS Community Tourism Association (CTA) • An overarching structure of • To provide institutional Fully functional and sits on a all Community Tourism framework for uniform quarterly basis Organizations (CTO’s) establishment and • constituted by Chairpersons functioning of the of all CTO’s in the province. CTOs in the province. Community Tourism Organization (CTO) • Constituted by local tourism • To ensure coordination product owners and Local of tourism marketing Municipal representative and publicity activities (ex-officio) at a local level. • To facilitate equal access to tourism opportunities by local communities. • To ensure legality of tourism businesses operators. • To establish linkages between communities, private sector and government A total of 45 CTO structures have been established and are fully functional sits on a quarterly basis. COORDINATING STRUCTURES NAME COMPOSITION OBJECTIVES STATUS KwaZulu • Constituted by regional • To ensure Fully functional and sits Natal Tourist tourist guides alignment and on a quarterly basis Guides association coordination of Association chairpersons, tourist guides Department of activities within the Transport, Ezemvelo province. KZN Wildlife, Tourism KwaZulu Natal and Field Guides Association of Southern Africa. KZN Master Plan Implementati on and Monitoring Committee • The committee is • To guide, monitor comprised of senior and coordinate the officials from various implementation of government the KZN-TMP in departments and other collaboration with organisations with a all the stakeholders tourism mandate from in the province both public and private sector The establishment of the structure is currently underway and will be up and running by the end of the current financial year. In the meantime, the PTF is overseeing the implementation of the Master Plan. COORDINATING STRUCTURES COMMUNITY BASED PROJECTS The National Tourism Sector Strategy together with the National Rural Tourism Strategy support tourism growth in rural areas with involvement of rural communities. Furthermore, the Provincial Tourism Master Plan highlights the need for the development of niche tourism experiences. These niche experiences are largely found in rural areas and offer opportunities for the involvement of rural communities to participate in tourism. The Department implements community based projects to broaden participation by historically marginalized communities in tourism; to facilitate transformation and to achieve geographical spread of tourism products and experiences across the length and breadth of the Province The Department develops community based tourism projects through sourcing funding and providing support to ensure product development and tourism growth in the province. Community based projects with an element of biodiversity and conservation are implemented in partnership with Ezemvelo KZN Wildlife as the custodian of nature conservation in the Province. Furthermore, Ezemvelo KZN Wildlife implements various programmes and projects in areas around the game reserves that benefit local communities. COMMUNITY BASED PROJECTS Project Name Location Benefits Bhambatha Lodge The project evolved out of the country’s UMzinyathi land restitution programme where District approximately 10, 000ha of land was returned to the Ngome Community Land Trust in the late 1990’s. The Department provides funding for the refurbishment of the lodge and resuscitation of the game reserve in partnership with Ezemvelo KZN Wildlife. (EDTEA Investment: R2 million) According to the business plan, it is estimated that the project will employ 79 people and create business opportunities for local entrepreneurs. Ntsikeni May Lodge The project moved from the Eastern Cape Harry Gwala Province to KZN during the re-demarcation District of municipal boundaries. The Department in collaboration with Harry Gwala District Municipality funded the refurbishment of both lodges and currently funding the operations of the lodge. (EDTEA Investment: R500 000) Portion of profits from business operation will revert to the community through the Trust and will then be made available once the funders withdraw in three years time. COMMUNITY BASED PROJECTS Project Name Location Benefits UMkhanyakude District According to the Business Plan the project will employ 14 people and support services will be handled by local cooperatives UMkhanyakude District Upon completion more jobs will be created for the community Ingodini Border Caves The Department is implementing findings of the Feasibility Study and Business Plan which include developing the cave and its surroundings to become Heritage Visitor Attraction and undertake further plans to establish a Community Conservation Area. (EDTEA Investment: R2 million) Upgrade of Ndumo Lodge The KwaZulu-Natal Provincial government pioneered Ndumo Yenkululeko Regeneration Programme, aimed at providing socio-economic facilities, services and infrastructure development in an effort to improve the living standards in the area. Tourism and conservation were identified as viable economic sectors with potential to ignite the local economic development of the area. The Department conducted the development of an assessment report and business plan which recommended the upgrade and refurbishment of Ndumo Lodge. (EDTEA Investment: R4,2 million) COMMUNITY BASED PROJECTS Project Name KwaMbonambi Wild Palace Lodge The project involves conducting a feasibility study and business plan for developing a 3 star country lodge and a conference centre in KwaMbonambi . (EDTEA Investment: R490 000) Location Benefits UThungulu District The business plan will identify job opportunities CATALYTIC PROJECTS The KwaZulu Natal Tourism Master Plan identifies the need for the development of key iconic projects aimed at increasing the geographical spread of tourism products and ensuring that the Province continues to gain a competitive edge and remains the preferred destination. These recommended iconic projects are: Drakensberg Cable Car, Breakwater/Monument/Statue, Bluff Bridge, King Shaka Statue, Isandlwana Development Precinct, Beach Resort and International Convention Centre around the North Coast. CATALYTIC PROJECTS -DRAKERNSBERG CABLE CAR EDTEA has begun with the implementation of the Drakensberg Cable Car and King Shaka Statue projects The Drakensberg Cable Car is a catalytic project aimed at unlocking the tourism potential of OKhahlamba – Drakensberg region and further enhance the competitiveness of the Province. The Department conducted a feasibility study and business plan for the project. The outcome of this exercise was that, generally, the Cable Car Project is both feasible and worth pursuing. The Department is in the process of commissioning an EIA for the development of a Cable Car that will ensure that new visitors are attracted to the Berg and also open up new economic ventures that could boost the economic atmosphere of the area. The envisaged construction of a 3300 metres long cable way with an intermediate station, climbing 1300 metres to the summit which will be an elevation of 3300 metres above sea level offering expansive views of KwaZulu Natal, Lesotho and Free State thus providing an enhanced tranquil visitor experience which has only been enjoyed by a few. The Cable Car will offer an alternative to conventional travelling and offer a unique experience. CATALYTIC PROJECTS – FUNDING The KZNTMP recommends the establishment of a Tourism Development Fund for catalytic and community based projects The Department funds the planning phases of the identified catalytic projects i.e. development of feasibility study, business plan, EIA and spatial plan Funding for actual developments will be sourced from Development Funding Institutions and also to be considered are the Private Public Partnerships (PPP) The Department is planning to host the Drakensberg Cable Car Conference and Exhibition as an investment promotion initiative and to attract global venture investors, real estate managers, manufactures, related United Nations Officials, operators and any other relevant organizations that will share best practices that the Province could consider in the development and operations of the Drakensburg Cable Car. This is envisaged to take place by February 2016. Funding for community based projects is also sourced from the National Department of Tourism through the Social Responsibility Implementation programme (SRI) through the provincial department; At provincial level, funding is also sourced through COGTA’s Corridor funding of which municipality or their Development Agency can access directly. BEACH TOURISM • The KwaZulu Natal Tourism Master Plan recognizes beach tourism as one of the core experiences offered by the Province. KZN boasts …km coastline. • Beach tourism accounts for one of the most popular activities undertaken by visitors in the Province, therefore the Province has developed its maiden KwaZulu Natal Beach Tourism Policy to streamline beach tourism efforts in order to ensure that KZN beaches maximize their tourism potential by offering beach experiences that are comparative to the world standards. The policy is anchored on FOUR Strategic Thrusts that govern the conceptualization, development and implementation of Beach Tourism Programmes in KwaZulu-Natal and these are: Thrust one: Ensuring that sustainable tourism is making an increasing contribution to the local economy of coastal communities. Thrust Two: Improving the quality of visitor experience Thrust Three: An integrated approach to the development and management of coastal tourism Thrust Four: Safeguarding and protecting the environment and cultural heritage as a key resource for the development of coastal tourism • BEACH TOURISM The policy identifies and recommends various Beach Tourism programmes along the lines of Responsible Tourism that can be developed and implemented at a local level to maximize benefits of Beach Tourism to KwaZulu-Natal in general and coastal communities in particular. The Department implements the beach development programme which seeks to upgrade recreational facilities in order for the beach to meet and maintain the Blue Flag standards thus ensuring that it remains attractive and safe for visitors. The Department has partnered with WESSA, the custodians of the Blue Flag in South Africa, to identify beaches and municipalities that require assistance with beach development. The following municipalities were funded and supported to achieve full Blue Flag Status: Southport beach in Hibiscus Coast Local Municipality, Alkaanstrand in UMhlathuze Local Municipality, Dokodweni beach in Mandeni Municipality, Blythdale beach in KwaDukuza Local Municipality Hibiscus Coast have 7 full status & 1 pilot status; KwaDukuza - 1 full status & 1 pilot status; Mandeni – 1 pilot status; EThekwini – 2 full status & 5 pilot status CRUISE TOURISM New cruise terminal Transnet (TNPA) is to build a new cruise terminal in the port of Durban The new terminal will be able to handle between 5000 and 6000 passengers; Tender to build the facility closed on the 2nd of October 2015 and it is being evaluated. KZN participates in the activities of the Cruise Indian Ocean Association, an association whose objectives are to develop, promote and market cruise tourism in the South-East African region. Members of CIOA include TNPA, Tanzania, Kenya, Mozambique and Sudan. Assisted SA Cruise liner to develop a feasibility study, to own or co-own a cruise ship, which could be a first to South Africans; The study was presented to major cruise liners during the Miami Cruise Shipping event in 2014 for possible joint venture partnership. DURBAN / KWAZULU NATAL CONVENTION BUREA Durban KwaZulu-Natal Convention Bureau established in 2010 “Convention Bureaus promote the business tourism potential of a destination, their main purpose is to increase the number of events, conferences and meetings held in the destination; whether a city, a region or a country” (ICCA, 2009) Special division of Tourism KwaZulu-Natal Operation costs – 30% eThekwini Municipality and 70% EDTEA Business events of meetings, incentives, conferences and events are: Powerful Stimuli for Socio-Economic Development; Tourism flow and spend; Post tertiary education and training; Knowledge development and networking Develop and establish industries; Enhance destination image … generate new tourism flow DURBAN / KWAZULU NATAL CONVENTION BUREA Delivery in terms of 2014/2015APP DURBAN / KWAZULU NATAL CONVENTION BUREA Other ‘Dividends’ Bid secured – 18 since January 2014 worth in excess of R300mn; Africa’s leading meeting and conference destination by World Travel Awards 2014,2015; ICCA ranking improvement 97 in 2013 vs 157 in 2012 vs 172 2011; Support committees15; Delegate boosts 4; Sales calls and workshops 8+ Qualified leads 70+; Physical evidence of professionalism – ICCA, SAACI, EXSA and SITE MARKETING OBJECTIVES To build a strong, integrated KwaZulu-Natal (KZN) destination brand To defend and grow KZN’s domestic market share To grow international arrivals To develop & promote KZN as a business tourism destination To strengthen trade relations with trade partners To create and optimally utilise communication opportunities to build and maintain a positive image of the destination brand amongst consumers and stakeholders To increase brand awareness Trade Engagement Trade Engagement DURBAN AEROTROPOLIS Airlift and route development for King Shaka International Airport is part of the broader strategy to develop the Durban Aerotropolis or Dube airport city which will be driven by a globally connected King Shaka International Airport. The KwaZulu-Natal Integrated Aerotropolis Strategy (IAS) recommends the development of Durban Aerotropolis centred on King Shaka International Airport that spans an area covering one hour travel from the airport. The IAS recognises the role of regional airports in promoting Durban Aerotropolis with the following interventions identified: Identify passenger and cargo latent demand for air links to KZN regional airports, prioritising infrastructure upgrades at airports that will support KZN IAS strategic goals. Develop regional airport infrastructure to support Aerotropolis initiative Identify developments that should take place in regional airports to support the Aerotropolis ROUTE DEVELOPMENT A route development strategy and a support programme for international connectivity is in place to support direct air connectivity from Durban to any hub of a major trading partner. A multidisciplinary committee comprising tourism entities, ACSA (King Shaka), Dube Trade port and the provincial government was set up to drive route development for King Shaka International Airport. Table below shows targeted airlines: Airlines for Single Routes British Airways Virgin Atlantic Lufthansa Turkish Airlines KLM / Air France Brussels Airlines Kenya Airways SAS Ethiopian Airways Norwegian Arik Air Condor Swiss Airlines for Multiple Routes SAA SA Express SA Airlink Fastjet Kulula Comair Mango Airlines exerting multiple market influence Emirates SAA ROUTE DEVELOPMENT STRATEGY AND TARGET AIRLINES The strategy identifies seven distinct market groups where air service growth and development could be delivered based on current traffic data. These are listed in the table below. Group Target Focus Target Airline 1 London Secure a direct non-stop scheduled passenger service to London, preferably Heathrow Airport to operate with at least 3 frequencies per week on a year round basis and a suitable aircraft to accommodate cargo uplift SAA Virgin Atlantic British Airways Condor, Norwegian 2 The Gulf region Target growth through additional capacity or increased frequency with the incumbent Gulf carrier Emirates, keeping relationships open with Etihad and Qatar Airways should Emirates not want to expand. Emirates Etihad Airways Qatar Airways ROUTE DEVELOPMENT STRATEGY AND TARGET AIRLINES… Group 3 4 Target International Access Focus Target Airline Hub Secure a direct non-stop scheduled Turkish Airlines service to mainland Europe and Asia Lufthansa to capture the significant European KLM market outside of the UK and Indian Air France subcontinent and Asian traffic. SAS Swiss Brussels Airlines Alitalia Air India Jet Airways Regional Africa Develop a comprehensive South African Express network from Durban across SA Airlink Africa, capturing under-served, Kenya Airways latent demand, improving Air Namibia business and cargo links, and Air Botswana creating the emergence of Durban Air Mauritius as a connecting centre. FastJet–Base potential, Mango – Base potential, Kalula.com – Base potential, Arik Air, Ethiopian ROUTE DEVELOPMENT STRATEGY AND TARGET AIRLINES… Group 5 Target Domestic 6 Cargo 7 Charter Flights Focus Target Airline To operate a comprehensive domestic network of services South African Express that connects Durban to all the major cities in South Africa SA Airlink, with a regular, high frequency network of affordable FastJet – Base potential, services that serve the business and leisure markets. Mango – Base potential, Kalula.com – Base potential, Fast Jet Attract a dedicated based regional freighter operation and Solenta Aviation (DHL) specific long haul operations to meet the immediate needs Safair, DHL of the KZN region. UPS, Cargolux, Lufthansa Cargo, Air China Cargo, Emirates Cargo To complement the target scheduled network, secure Thomson (UK) dedicated long haul and short haul charter services to Thomas Cook (UK) deliver increased visitor numbers and support the objective Tui Travel (Europe) to be the premier leisure destination of South Africa. Virgin Holidays (UK) LOT Polish Airlines Mega Maldives (China via Maldives) CAISSA (China) Edelweiss ROUTE SUPPORT The route development strategy recommends the creation of a Route development Fund that is split into three distinct categories as follows:New routes Existing Route/airlines expansion Other routes that may be viewed as non-strategic but import from growing traffic at KSIA For the development of the New Routes, the strategy recommends that a Fund be established that can cover two specific elements for this sector:A substantive fees and charges mitigation and; An element of revenue guarantee and/or substantive marketing and/or bonus rewards for load factors and /or cargo carried. ROUTE SUPPORT Existing Airlines at KSIA for International and Regional Routes Destination Dubai Mauritius Harare Lusaka Lusaka Maputo Airline Emirates Air Mauritius SA Express SA Express Pro Flight Airlink Frequency Daily 2 Per Week 4 Per Week 2 Per Week 4 Per Week 5 Per Week Aircraft Type Boeing 777-300 ER Airbus A319 Bombardier Regional Jet Bombardier Regional Jet Bombardier Regional Jet Jetstream 41 New Airlines at KSIA for International and Regional Routes Destination Istanbul Addis Ababa Doha Airline Frequency Turkish Airlines 4 per week Ethiopian Airlines 3 per week Qatar Airways 4 per week Aircraft Type Airbus A330 Boeing 737-800 Boeing 787 Dreamliner Start Date 5-Nov-15 16-Dec-15 17-Dec-15 REGULATION OF TOURIST GUIDES The Tourism Act no. 3 of 2014, stipulates that any person who wishes to be registered as a Tourist Guides must register with the National Department of Tourism (National Registrar) through the Provincial Registrar in the prescribed manner The Department ensures the implementation of the legislation by maintaining an accurate database of registered tourist guides. According to the provincial database there are 380 tourist guides who are fully compliant with the legislation. The Department conducts workshops and spot checks as programmes aimed at enhancing tourist guides knowledge, provision of quality experience and curbing illegal tourist guiding. These are conducted in partnership with Municipalities, Road Traffic Inspectorate, South African Police Service and Tourist Guides Associations. The Department provides support to relevant structures responsible for tourist guides within the tourism regions around the Province with the view of ensuring coordination and alignment of activities. The Department plans to engage heads of museum, heritage sites and other attractions of national and provincial interest with the view to utilise guides that are compliant with the legislation LESSONS LEARNT The regulation of tourist guides within the Province remains a challenge without a clear legislated procedure to prosecute non compliant and illegal guides however the National Department of Tourism in collaboration with provincial departments has commenced with the process of drafting relevant regulations that will assist is the provision of guidance. Disparities and fragmented tourist guiding curriculum offered by various training institutions impacts negatively on the quality of information and experiences provided by tourist guides. The Department has identified the need to foster and maintain relations with various sector departments, municipalities and associations for the effective implementation of the legislations. There is also a need to expose tourist guides from the previously disadvantaged communities to the latest developments in product packaging field. LESSONS LEARNT Due to relatively low barriers of entry in certain categories of the sector, tourism has a huge potential of contributing to the transformation project. Yet, the pace of transformation is agonisingly-slow. Government needs to play an even more pro-active role in pursuing the transformation agenda within the tourism sector in order to help fight poverty, unemployment and inequality The growth of a destination depends, for the most part, on how much is invested in promoting the destination. KZN has gone out to bid for tourism events; invested heavily in marketing; been creating in utilising industry support measures to entice new investors and, positioned itself as part of, and gateway to, the SADC region.