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Date : 20/09/2004
Source: Ministry of Transport
Title: J Radebe: Airline Destination Workshop


REMARKS BY JEFF RADEBE, MP MINISTER OF TRANSPORT, AT AIRLINE DESTINATION WORKSHOP, Cape Town, 20 September 2004

Provincial Partners and colleagues,
Representatives and participants in the tourism industry,
Honoured guests, ladies and gentlemen.

It is my singular pleasure this morning to welcome you all to the 2004 Airline Destination Workshop hosted here in Cape Town, nestling within the embrace of one of the most beautiful natural environments in the world. Many of you are frequent visitors to our shores, but for those who may be here for the first time, our warmest welcome in this rather ambiguous early spring Cape weather!

Last year, a similar workshop sought to sow the seeds of a stronger tourism industry; today's theme is around how best to nurture that growth and development. Your discussions take place in a context that is dynamic and ever changing, where challenges pop up with a regularity that for some is a source of frustration. For most of us, however, we work from the premise that challenges are there precisely to focus our planning, our responses and to develop appropriate mechanisms to ensure that everyone is included in the excitement that the natural environment provides and that no one is marginalised from the benefits to the larger economy of a bustling tourism industry. This is especially the case when the evidence of poverty, unemployment and crime confronts us on a daily basis. Precisely because these problems spring from a combination of social and economic causes, the best way to overcome them through partnership and consultation. All of us, Government, business, civil society, NGOs, faith-based organisations and charitable institutions each have an important role to play. I am encouraged by the fact that this workshop has drawn such strong representation from across the whole spectrum of society.

Across South Africa, and in the Western Cape, we are all acutely aware of the opportunities that exist for socio and economic growth, through the promotion and development of an inclusive tourism. In order to ensure tourism growth, all parties across the tourism value chain, have to come together to create a world-class South African travel "experience" which, building from our diversity as a nation and as a country, is unique; compelling; multi-sensory; multicultural and, as a result, is a collective experience that is very definitely "proudly South African".

Global events continue to profile South Africa as a safe and friendly tourist destination. But none of us can be complacent and rest on our laurels. Recent reports concerning airport security, transport and particularly public transport problems, as well as the implementation of necessary international security arrangements in our ports and harbours, should also be taken into account as you plan for the future. We must ensure that our infrastructure is able to meet the needs of our regions. This means that our roads, rails, seas and skies must be able to accommodate the demand that the growth of tourism brings with it.

As things stand, there have been some improvements in the airline industry over the past two years or so. In South Africa, part of ACSA's improved financial position is the result of a 7,4% increase in departing passenger volumes to 11,9 million. This growth came from an increase of 7.9% in domestic passenger volumes and 6,4% in international passenger volumes. At the same time, domestic and international landings aircraft increased by 6.4% and 2.3% respectively, while regional landings shrunk by 2.1%. More specific information is contained in the annual report that I understand is included in your packs.

It is also interesting to note that air travel in aircraft has increased just over 17% compared to 2001, compared to a global average of just 6.5%, for the first quarter of 2004. African passenger air traffic still suffers from major problems of cost, routings, and poor or inefficient scheduling and services, making air travel within Africa something of a nightmare. However, there is light at the end of that tunnel as the restructuring of Africa's airlines continues, where we see a specific growth in the development of feeder services to cross-border airlines, and where there is a growing commitment to open up Africa's skies still further, particularly to African airlines flying within the continent.

One notable feature of African aviation at the moment is the steady increase in the general aviation business, especially the growth in charter flights that carry company executives, potential investors and humanitarian agencies around the continent. This development, whilst good for the general aviation market, is an indictment against the inefficient operations we still endure; where time is money, and inconvenience an unnecessary component of travel in Africa. And while we need to deal with airline issues, we must also expand the provision of proper service on both land- and air-side operations at our airports. South Africa has much to offer the continent in terms of experience, but I have absolutely no doubt in my mind that we also have a good deal to learn from our colleagues in aviation across the continent.

Most recently in Nairobi in May this year, I joined the Kenyan and Nigerian Minister's responsible for aviation to encourage the speedy implementation of the open skies requirements of the Yamassoukro Declaration. Partly to meet this new commitment, South Africa will host in the first quarter of next year a continent-wide meeting of transportation and aviation ministers to assess the current situation of the total aviation situation in Africa, to identify the shortcomings to the implementation of old decisions, and to map the way forward for increased investment in the aviation sector, the development of sustainable African expertise in the sector and the industry itself, and to encourage partnerships and cooperation between African countries at government and industrial levels. It is quite clear that the development agenda of NEPAD will be negatively affected if we are unable to provide the necessary transportation wherewithal, including the adequate, efficient, predictable and reliable movement of goods and people within our countries, our regions, and our continent as a whole. And that includes the aviation sector.

In this regard, I would just like to indicate that South Africa's presidency of the African Civil Aviation Commission, as well as our participation in ICAO, is geared towards encouraging improved safety, greater security and sustainable growth in Africa's airline capacity. We should really all start planning towards a situation where we can cater for a growing number of tourists and business visitors from African countries themselves to complement the numbers of visitors we have from further a field. Improving air access to and form our country will be but one way of doing that.

We should also take note however of recent comments by the President of IATA that "if oil prices average 33 dollars, (the international aviation industry will) breaks even. At 36 dollars we could expect 3 billion dollar losses" in the global industry.

Although workshops such as these ensure that the influx of tourists is sustained, this simply does not suffice. In order to facilitate the process of tourism growth in our country, we need to identify potential challenges and put concrete plans in place to overcome these. Addressing some of these will require innovation and the ability to learn from experiences and mistakes alike. But I am sure you are up to that challenge!

At the same time, the 2010 Soccer World Cup looms, illustrating once again the faith that our international brothers and sisters have in our country. As South Africans we must ensure that while the spotlight is on us we meet and exceed global expectations. As a nation we have already hosted significant events, such as the Rugby World Cup in 1995 and the Cricket World Cup in 2003. During these events we secured the credibility of our country and now we have a responsibility to continue to do so. For our transport agencies, 2010 means increased pressure. Upgrading our transport infrastructure will remain a key priority, presenting us with an enormous challenge to avoid "white elephantism" and to pursue multiple and longer-lasting objectives from the investments that are planned.

I appeal to you, as key tourism role players, to remain cognisant of all factors influencing tourism. I wish you well as you participate in today's dialogue. As you engage in highlighting the issues, making plans to address them and identifying leaders for driving these issues beyond the workshop, throughout the year, be assured of Government's unwavering support and encouragement.

Issued by: Ministry of Transport
20 September 2004
Source: Department of Transport (http://www.transport.gov.za)

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