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Date : 30/09/2003
Source: Tourism investment conference
Title: Mabudafhasi: Address at tourism investment conference


Address by Hon. Rejoice Mabudafhasi, Deputy minister of Environmental Affairs and Tourism at the tourism investment conference, Clarence, Free State

Programme Director
Honourable Member of the Executive Council (MEC), MEC Ballot
Distinguished guests
Members of the Media
Organisers of this event
Ladies and Gentlemen

It is the pleasure for me to address you this morning on tourism investment in South Africa, which in essence will depict our achievements and also the challenges that we face in this industry.

I would like to begin by stating that tourism in South Africa is booming. This is abundantly evident from our tourist arrival figures.

In 2002, South Africa experienced a 11,1% growth in international tourism, meaning that 642 000 additional tourists visited us, as compared to 2001. Already, in the first 6 months of this year, the total number of foreign travellers visiting South Africa has increased by 144 151 (4,8%) compared to the same period in 2002. In this respect, overseas arrivals increased by 9,6% (or 76 373 tourists) and African arrivals increased by 3% (or 64 133 tourists).

This growth in arrivals is no accident. It is being achieved through the implementation of a carefully crafted strategy, called the tourism Growth Strategy, which has been endorsed by Cabinet. This strategy, which is based on detailed market research, identifies our priority markets for tourism, and the target market segments within these priority markets. Priority markets have been identified in Europe (Britain, France, Italy, Germany, Spain and the Netherlands), Asia (India, China and Japan) and Africa (SADC, Nigeria and Kenya).

Through South African Tourism, our marketing spend is now directed to these priority markets and market segments. The arrival figures speak for themselves. It is important to bear in mind that the Tourism Growth Strategy is not only about increasing arrivals, but is also underpinned by other core principles, which are:

∑ Increasing the length of time tourists spend in South Africa;
∑ Increasing the spend of tourists within South Africa;
∑ Ensuring that tourists travel throughout the country, and not just to a few provinces;
∑ Facilitating transformation and black economic empowerment in the tourism industry.

Investment into the tourism industry is therefore a key lever towards achieving the above objectives. Government has been working hard to create the context for this investment. In this respect, we have:

∑ Invested approximately R 60 million in the establishment of the Greater St Lucia Wetland Park. This has generated private sector investment of R 500 million, which is expected to grow to within the order of R1,5 billion. This private investment will be in the development of tourism products, including lodges, resorts, etc.

∑ Invested almost R 69 million in poverty relief funding in respect of tourism. Over R 10 million has been invested in the Free State alone. Current poverty relief investment stands at a total of R 290, 6 million, of which R 27, 3 million will be invested in the Free State. These poverty relief funds will be used for the development of community owned tourism products, such as lodges, and the development of tourism infrastructure, including roads, information centres, and tourism signage.

∑ Entered into a partnership with the Tourism Enterprise Programme (TEP). The TEP was established by the Business Trust, with a mandate to assist tourism and tourism related small businesses to grow and achieve sustainability.

The TEP has been very successful, and to date has assisted 1 200 SMMEs and has created 10 000 jobs.

∑ Established the Tourism Grading Council of South Africa (TGCSA), which is rolling-out the star grading system. This is intended to ensure that our tourism products offer tourists the highest standard of service that will bring tourists back to our country time and time again.

∑ Established the South African Tourism Institute (SATI), through which we have trained over 600 teachers on tourism, provided 200 learners from disadvantaged backgrounds with tourism internships and created tourism awareness in over 540 schools.

∑ Provide assistance through Trade and Investment South Africa to establish partnerships with international investors, as well as assistance to attend international tourism investment events.

We would like to make a call to the industry to help us strengthen our public-private partnership in tourism, in order to jointly develop our country. This would include:

∑ Investing in areas that are in pressing need of economic development. The Thabo Mofutsantyane area has been identified as a poverty node by government.

Both the public and private sector must now jointly investigate the potential and opportunities that this area holds for tourism, so that we may leverage these in partnership with each other.

∑ Investing in products that would support our Tourism Growth Strategy. This would mean that tourism products must be established that would service the needs of tourists from our target markets and market segments. In this regard, for example, if Chinese tourists come to South Africa for a wildlife experience, then we should invest in game lodges.

∑ Facilitating BEE within the tourism industry by employing, training and mentoring black professionals and entrepreneurs, lobbing banks to enhance access to finance by black entrepreneurs and promoting affirmative procurement practices.

∑ Speaking positively about our country, so that we can continue to grow tourist arrivals, as well as our international image.

You will agree with me that one of the key challenges we face is ensuring the geographical spread of tourism throughout the country, particularly to historically disadvantaged areas. Whilst I am delighted that a lot has been done in this area we need to do more.

I would therefore encourage you in your discussion to think about matters of concern carefully with the view of coming up with sustainable solutions that will make a meaningful impact beyond our existence. I wish you a fruitful and successful conference and trust that the outcome of your deliberations will translate into clear action plans with achievable objectives.

I thank you and look forward to receiving the report of this conference.

September 30, 2003

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