Annual Report
Department of Tourism
Briefing to Portfolio Committee on Tourism
October 2010
1
Department of Environmental Affairs and Tourism
(DEAT) split
• Financial year 2009/2010 – Vote 25 shared
by Dept of Tourism and Dept of
Environmental Affairs
• The tourism report is based on:
– Programme 1 (Administration)
– Programme 4 (Branch Tourism)
– Programme 6 (Sector Services and International
Relations)
2
FINANCIAL STATEMENTS
3
AUDITOR-GENERAL REPORT ON THE
FINANCIAL STATEMENTS
•
Unqualified Audit
•
Unauthorized and irregular expenditure:
No unauthorized or irregular expenditure was incurred in the current year .
•
Disclosure items in the Financial Statements
The department complied with all disclosure requirements, classifications and policy frameworks as
prescribed by Treasury.
•
Transfers to Agencies and other organizations
All transfers made are per prior Management approval, Treasury approval and disclosure
requirements.
•
Delays in submission of performance information
4
Budget and Expenditure Review for 2009/10
Programme
Budget
2009/10
Expenditure
R’000
R’000
Expenditure as
per % of Final
Appropriation
R’000
1. Administration
273 101
273 101
100.0
2. Environmental Quality
and Protection
286 436
285 820
99.8
3. Marine and Coastal
Management
624 668
621 615
99.5
4. Tourism
812 529
812 529
100.0
5. Biodiversity and
Conversation
387 647
386 853
99.8
6. Sector Services and
International Relation
1 126 260
1 123 420
99.7
Total
3 510 641
3 503 338
99.8
5
Departmental Expenditure Trends
Year
Budget
R’000
Actual
R’000
% Expenditure
2004/2005
1 652 268
1 633 882
98.9%
2005/2006
1 753 307
1 746 154
99.6%
2006/2007
2 061 804
2 059 664
99.9%
2007/2008
2 790 521
2 788 757
99.9%
2008/2009
3 206 557
3 198 878
99.8%
2009/2010
3 510 641
3 503 338
99.8%
6
Expenditure for the 2009/2010 Financial Year
per Programme (Summary)
Programme
Original
Allocation
Adjusted
Estimates
Final
Appropriation
Expenditure
Variance
R’000
R’000
R’000
R’000
R’000
1. Administration
217 504
55 597
273 101
273 101
0
2. Environmental
Quality and Protection
293 929
(7 493)
286 436
285 820
616
3. Marine and Coastal
Management
583 626
41 042
624 668
621 615
3 053
4. Tourism
750 292
62 237
812 529
812 529
0
5. Biodiversity and
Conservation
413 310
(25 663)
387 647
386 853
794
6. Sector Services and
International Relations
1 222 122
(95 862)
1 126 260
1 123 420
2 840
Total
3 480 783
29 858
3 510 641
3 503 338
7 303
7
Actual Expenditure per programme
Administration
8%
32%
8%
Environmental Quality and
Protection
Marine and Coastal
Management
18%
Tourism
11%
23%
Biodiversity and Conservation
Sector Services and
International Relations
8
Expenditure per Economical Classification
(Summary)
Economical Classification
Original
Allocation
Adjusted
Estimates
Final
Appropriation
Expenditure
Variance
R’000
R’000
R’000
R’000
R’000
Current Payments
815 962
80 532
896 494
893 806
2 688
-Compensation
-Goods and Services
-Financial Transactions
432 810
383 152
0
25 873
54 501
158
458 683
437 653
158
458 683
434 965
158
0
2 688
0
Transfers and Subsidies
2 506 066
(40 628)
2 465 438
2 463 876
1 562
-Departmental Agencies
and Projects
- Foreign Governments
-Universities and Tech
-Non-Profit Institutions
2 406 095
9 000
0
90 971
(54 978)
0
798
13 552
2 351 117
9 000
798
104 523
2 350 966
9 000
797
103 113
151
0
1
1 410
Capital Assets
158 755
(10 046)
148 709
145 656
3 053
-Software
- Machinery and Equip
318
158 437
155
*(10 201)
473
148 236
473
145 183
0
3 053
3 480 783
29 858
3 510 641
3 503 338
7 303
Total
9
Actual Expenditure per high level item
4%
26%
Current Payments
Transfers and Subsidies
70%
Capital Assets
10
Expenditure for the 2009/2010 Financial Year
Programme 4: Tourism
Sub-Programme
Adjusted
Estimates
Final Appropriation
Expenditure
Variance
R’000
R’000
R’000
R’000
Management
5,006
9,145
9,145
0
Tourism Support
23,103
34,795
34,795
0
Tourism Development
14,675
17,003
17,003
0
South African Tourism
684,489
699,489
699,489
0
52,097
52,097
52,097
0
779,370
812,529
812,529
0
Business Trust
Total
11
Actual Expenditure per Sub-Programme
(Tourism Programme)
1%
7%
2%
4%
Management
Tourism Support
Tourism Development
86%
South African Tourism
Business Trust
12
Expenditure for the 2009/2010 Financial Year
Programme 4: Tourism
Economical Classification
Adjusted
Estimates
Final
Appropriation
Expenditure
Variance
R’000
R’000
R’000
R’000
Current Payments
35,532
45,331
45,331
0
-Compensation
-Goods and Services
-Financial Transactions
19,555
15,977
0
24,060
21,261
10
24,060
21,261
10
0
0
0
Transfers and Subsidies
743,586
766,586
766,586
0
-Departmental Agencies
-Non-Profit Institutions
684,489
59,097
699,489
67,097
699,489
67,097
0
0
Capital Assets
252
612
612
0
- Machinery and Equip
252
612
612
0
779,370
812,529
812,529
0
Total
13
Actual Expenditure per high level item (Tourism
Programme)
94%
Current Payments
Transfers and Subsidies
Capital Assets
6%
14
PERFORMACE INFORMATION
15
ACHIEVEMENTS AND CHALLENGES
Strategic Objective: Create conditions for sustainable tourism growth and development
Key Performance Area: Skills availability in the tourism sector
Key Performance Indicator
Target
Achievements/Challenges/ Corrective
measures
% implementation of Tourism Human 50%
strategy 75% of the National THRD Strategy was
Resource Development (THRD) Strategy implementation
implemented
% implementation of Tourism Service 50%
strategy 65% of the Tourism Service Excellence Strategy
Excellence Strategy
implementation
was implemented
Number of existing tourist guides up- 160 tourist guides A total of 120 tourist guides were trained
skilled and new entrants trained
upskilled and new
entrants trained.
Challenge: Target was not achieved due to
budgetary constraints
Number of training and placement 150 training
opportunities created internationally and placement
nationally
opportunities
created
Corrective measure: Training will continue during
2010/11
and 63 people were exposed to both local and
international training opportunities
Evidence received after the close of the audit
period confirms a total of 128
16
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Quality of tourism products and services
Key Performance Indicator
Target
Achievements/Challenges/ Corrective measures
Number of accommodation 9044
accommodation 8 236 accommodation establishments were graded
establishments graded
establishments graded
Challenge: There was a drop in the number of
renewals for grading
% of public sector reporting on 45% of national public 18 (47%) national departments submitted their reports
procurement from graded sector departments
establishments
National
guidelines
for Research
international • Three provinces namely Kwazulu Natal (KZN),
mandatory registration in place and national guidelines
Mpumalanga and Western Cape submitted their
for mandatory registration
respective frameworks
of tourism businesses.
• Legislative processes on mandatory registration for
Namibia and Scotland were reviewed
Structural arrangements for Review legislation and
tourism quality assurance for make recommendations
South Africa reviewed
to create a tourism quality
assurance agency for SA
Due to the establishment of the Department Tourism
as a Department separate from the Department of
Environmental Affairs, this key performance indicator is
now part of tourism legislation review which will be
done in 2010/11 financial year
17
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Promote responsible tourism
Key Performance Indicator
Target
Achievements/Challenges/ Corrective
measures
Awareness material on the importance Brochure containing
of energy efficiency for the industry tips for the industry to
published
be energy efficient
published
Frequency of Imvelo awards on Annual Imvelo awards
responsible tourism hosted in for responsible tourism
partnership with Federated Hospitality hosted
Association of Southern Africa
(FEDHASA)
National minimum standards for National
minimum
responsible
tourism
(NMSRT) standards
for
framework in place
responsible tourism in
place with buy-in from
the industry
18
7 380 energy efficiency brochures were distributed
Imvelo awards were successfully hosted, in
partnership with FEDHASA on 11 November 2009,
with a record number of entries
• Draft NMSRT framework is available with buyin from the certification agencies and ready for
publication
• Launch of the National Minimum Standards for
Responsible Tourism (NMSRT) by the Minister
for public comments scheduled for Indaba
2010 (
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Promote the development of products in the tourism sector
Key Performance Indicator
Target
Achievements/Challenges/ Corrective measures
Number of proposals developed 2 proposals developed • 37 Proposals for funding were received from Kwa
per province
per province.
Zulu Natal, Mpumalanga and Eastern Cape
Province
• 35 projects to be included in the investment
publication were identified in all nine (9) provinces
• A GCP-aligned TFCA signage project for Maloti/
Drakensberg was funded to an amount of R350
000
19
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Promote the development of product in the tourism sector
Key Performance
Indicator
Target
Achievements/Challenges/ Corrective measures
Number of second economy 2 establishments per • Phase 1 of the project for short listing the candidates
establishment per province province supported.
was completed with 28 finalists responding to the
supported
assessment forms forwarded
• 20 out of 28 finalists were short listed and visited by the
provider in all nine provinces
• Emerging Tourism Entrepreneur of the Year Award
(ETEYA) finalists were supported as part of piloting
implementation of the Tourism 2nd Economy Strategy
• 45 entrepreneurs and ETEYA finalists of previous years
in all provinces were selected. 41 were interested in the
programme
• 17 entrepreneurs attended the Business Think
Workshop for a week
• 6 entrepreneurs were considered for funding from
RAIZCOP and Identity Development Fund (IDF).
Funding to the amount of R4, 5m were signed so far in
North West and Limpopo.
20
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Promote the development of products in the tourism sector
Key Performance
Indicator
Target
Report on the feasibility study Undertake
feasibility
for cruise liner tourism
study of cruise liner
tourism and complete
report
Partnership to host investment Partner with the Tourism
conferences
for
product Business Council of
development
South Africa (TBCSA) to
host the Hospitality
Investment Conference
for Africa (HICA)
Achievements/Challenges/ Corrective
measures
A cruise liner impact study was finalised and submitted
to the National Department of Tourism by the Cruise
Liner Steering Committee
HICA was successfully hosted in partnership with
TBCSA on 04 November 2009
21
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Sustainably grow the tourism sector.
Key Performance Indicator
Target
Achievements/Challenges/ Corrective
measures
Number of annual transactional linkages 600 annual transactional 1 197 annual transactional linkages were
created between Small, Medium and linkages created between created between SMME's and established
Micro Enterprises (SMMEs) and SMME's and established tourism enterprises
established tourism enterprises
tourism enterprises
Key Performance Area: Maximize Tourism and Development Potential of 2010 FIFA World Cup
Key Performance Indicator
Target
Achievements/Challenges/ Corrective
Measures
% implementation of 2010 tourism plan 50% implementation of 85% of 2010 Tourism Plan was implemented
the 2010 Tourism Plan
Number of Tourism Ambassadors Total
of
500 • Trained 347 volunteers during the first phase
recruited and trained
ambassadors recruited • 20 officials were trained on module “know your
and trained.
Country Know your City” in Free State
• 3 200 volunteers were trained in Nelspruit and
Ellis Park
22
ACHIEVEMENTS AND CHALLENGES
Strategic Objective: Facilitate transformation and job creation within the sector towards poverty
eradication
Key Performance Area: Implementation of poverty alleviation and job creation programmes and
infrastructure projects (DEAT)
Key Performance Indicator
Target
Number of person days training 69 525 accredited
created
Achievements/Challenges/ Corrective
measures
79 733 person training days were created
Number of permanent jobs created
409
186 permanent jobs created
Number of temporary jobs created
27 563
21 138 temporary jobs created
Number of SMMEs
(empowerment)
used
to 350
Number of youths benefiting from 500
the DEAT component of the
National Youth Programme (NYP)
369 SMMEs were used
995 youth benefited from DEAT’s component of
the NYP
23
ACHIEVEMENTS AND CHALLENGES
Strategic Objective: Position DEAT as an employer of choice
Key Performance Area: Ensure availability of adequate human capital (DEAT)
Key Performance Indicator
% of Vacancies
Target
Achievements/Challenges/ Corrective measures
18%
17.9% of the establishment was vacant
50%
• 96% posts on the establishment are described and
graded
• DEAT structure consisted of 1874 posts on April 2009.
• At 31 March 2010, DEAT had 81 newly proposed posts
which were not described and graded
12.7% of employees left DEAT
% employees departing from 15%
DEAT per year
% Implementation of Performance 90%
Management
development
system (PMDS) Framework.
% of Staff Performing at threshold 80%
95% implementation of PMDS
90% of staff performed at threshold for 2008/09 financial
year
% implementation of Human HRD
Strategy • 80% implementation of HRD Strategy.
Resource Development (HRD) implementation
• A WSP for 2009/2010 financial year and an Annual
Strategy
Plan approved &
Training Report for 2008/2009 submitted Public
60% 0f the plan
Services Sector Education training Authority (PSETA)
implemented
24
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure availability of adequate human capital
Key Performance Indicator
Target
Achievements/Challenges/ Corrective measures
% of employee relations 95%
cases processed within
prescribed timeframes
%
Implementation
of 100%
Employee wellness Schedule
80% of employee relations cases were processed
within prescribed timeframes
% of employee relations 95%
cases processed within
prescribed timeframes
%
Implementation
of 100%
Employee wellness Schedule
80% of employee relations cases processed.
% Achievement of EE targets
54%
83%
1.0%
50% women
79% black
2% people with disabilities
100% of the employee wellness schedule was
implemented
100% implementation of employee
scheduled during the 1st quarter.
25
wellness
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Provide a secure, efficient and pleasant working environment
Key Performance
Indicator
New DEAT Building
Target
Achievements/Challenges/ Corrective measures
Appropriate Treasury • Evaluation process for the new building project has been
approvals for the PPP
completed
• Evaluation recommendations were approved by Project
Evaluation Committee and Departmental Adjudication Committee
• Value for Money (VFM) report was in the process finalisation for
submission to National Treasury.
Key Performance Area: Promote the development of a positive DEAT Culture
Key Performance
Indicator
Target
Achievements/Challenges/ Corrective measures
% implementation of Develop
intervention • DEAT Culture Audit report in place
culture
change plan for culture change • Split process and cost of further interventions prohibited further
intervention
action on this matter
26
ACHIEVEMENTS AND CHALLENGES
Strategic Objective: Enhance Efficient Service Delivery
Key Performance Area: Improve, standardise and manage business processes
Key Performance
Indicator
Target
Achievements/Challenges/ Corrective measures
MSP implementation
Continuation of MSP • New Enterprise Architecture and IT/Business Blueprint
Phase 2 implementation
documentation completed
• Developments of the new framework that will cater for all
new applications development was approved
Number of Priority business 3
• All the business processes were for the office of the DG
processes mapped
were prioritized for mapping
• 90% of all those processes have been mapped
27
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure Alignment and cooperation with public entities
Key Performance
Indicator
Target
Achievements/Challenges/ Corrective measures
% compliance by Public 100% compliance Public Entities complied 100% with governance protocol
Entities,
with
agreed as per schedule
requirements during the 2009/10 financial year
governance
and
performance requirements
28
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure improved knowledge and information management
Key Performance
Target
Indicator
% of both tourism products 50%
and services mapped
Achievements/Challenges/ Corrective measures
• 100% of the database received from SAT of both tourism products
and services was mapped
• Tourism GIS was launched at Indaba 2009
• A consolidated database was developed using data received from
provinces, SAT and TGCSA
• Spatial viewer was updated with latest information received from
TGCSA and provinces – all the records on the database were
spatially mapped
• The accommodation database and the GIS system were continuously
updated
• Accommodation databases were developed with around 19 000
establishments on record
• Data was verified through geo-coding and mapped on spatial viewer
• Buy-in was obtained from key role-players such as MATCH
• Database of all police stations incorporated
• Worked with provinces and South African Tourism (SAT) to ensure the
launch of the National Contact Centre
29
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure improved knowledge and information management
Key Performance
Indicator
Target
Achievements/Challenges/ Corrective measures
Annual tourism trend report 2008/09 trend report • Draft Tourism trend report for 2008/09 was developed
developed and published
published
• Revised draft document on National and Provincial
indicators was developed
• Quarterly tourism fact sheet was developed
• Draft trend reports were finalised
• Draft Recession Strategy was updated and presented to the
Governance and Tourism Development Working Group
Meeting held on 03 September 2009
• Work was initiated and facilitated with the assistance of
Econex to quantify the impact of the recession for the
special MIPTEC meeting
• Service Excellence Research done
30
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure improved knowledge and information management
Key Performance
Indicator
Number
of
United
Nations World Trade
Organisation (UNWTO)
workshops on tourism
statistics for Africa
hosted
Target
Achievements/Challenges/ Corrective measures
1
Regional • 3rd UNWTO Capacity Building workshop successfully hosted: 80
workshop held
Participants from 16 countries attended (Angola, Botswana,
on 31 November
Ethiopia, Gambia, Ghana, Kenya, Lesotho, Malawi,
2009
Mozambique, Nigeria, Seychelles, Swaziland, Tanzania, Zambia,
Zimbabwe and Rwanda)
Report
for • South Africa is seen as a leader in the field of tourism statistics in
Workshop
III
Africa
finalized by 31 • Report for the 48th UNWTO-CAF meeting was finalised
March 2010
• South Africa’s annual membership fee for UNWTO was finalised
31
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure improved knowledge and information management
Key Performance
Indicator
Number of Communication
on Tourism Satellite Account
(TSA) Pilot with tourism
stakeholders
Target
Achievements/Challenges/ Corrective measures
2
communication • Satellite Account was launched at Tourism Indaba on 08
initiatives held with
May 2009 and presented to the National Tourism Research
tourism stakeholders
& Knowledge Management Committee
on the TSA pilot
• First and second initiatives to communicate TSA pilot were
held
• Presentations on the TSA was done at the UNWTO
workshop and seminar
• The department presented work that was done in South
Africa on the Tourism Statistical System at the UNWTO
Seminar - this work guides the other African countries in
setting up their Tourism Statistical Systems
• The department presented a paper on the TSA including
arrival statistics to UNWTO in Madrid at an international
forum and shared South Africa’s experiences
32
ACHIEVEMENTS AND CHALLENGES
Strategic Objective: Equitable and Sound Corporate and Cooperative Governance
Key Performance Area: Facilitate departmental risk management
Key Performance Indicator
Auditor General's opinion.
Target
Unqualified Audit reports
% compliance with relevant 90% compliance
prescripts and service standards
% expenditure of Departmental 98%
MTEF budget,
Achievements/Challenges/ Corrective
measures
Unqualified audit report for 2008/09 Financial Year
received from Auditor General
Achieved 100% compliance
99.9% expenditure occurred on departmental
MTEF budget
Key Performance Area: Facilitate affirmative procurement
Key Performance Indicator
% of expenditure on procurement 58%
from BBBEE or BEE enterprises.
Target
Achievements/Challenges/ Corrective measures
62% of procurement expenditure was allocated to
BBBEE and BEE enterprises
33
ACHIEVEMENTS AND CHALLENGES
Strategic Objective: Enhancement of Reputation and Collective Ownership of the Sectors
Key Performance Area: Improve inter-departmental cooperation and coordination
Key Performance Indicator
Target
Achievements/Challenges/ Corrective
measures
Participation in % of metro and district 100% metros and 60% 100% participation in metros and district IDP
municipality IDPs reviews
of
district reviews
municipalities
34
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Improve access to information
Key Performance Indicator
% response to requests received
Target
90%
% of call centre requests 90%
processed as per service delivery
standards
% Website uptime
95%
Achievements/Challenges/ Corrective measures
• 2 PAIA requests were finalized and 3 are still outstanding
• PAIA workflow was operational
98% of call centre e-mails were processed as per service
delivery standards
• 95% uptime for both Environment and Tourism websites
• New Tourism website developed and went live on 31 July
2009 and the official launch by Minister of Tourism took
place on the 27 August 2009.
35
ACHIEVEMENTS AND CHALLENGES
Key Performance Area: Ensure strong corporate image identity
Key Performance Indicator
Target
Achievements/Challenges/
Corrective measures
% of government media coverage on environment 35%
and tourism in comparison with other players in the
sectors.
Overall share of voice was 50%.
Key Performance Area: Enable Parliamentary oversight
Key Performance Indicator
% compliance with statutory tabling requirements.
Target
Achievements/Challenges/
Corrective measures
100% compliance
Achieved 100% compliance
% of parliamentary questions for which responses 90%
have been provided within specified timeframes.
• 100% compliance
• All the Parliamentary questions
received were finalised within
timeframes
36
THANK YOU
37