Date: 27/02/2007
Source: Ministry of Transport
Title: Radebe: Business Tourism Conference
Address at the Business Tourism Conference at the Sandton Conference Centre ,Johannesburg by Mr Jeff Radebe, MP, Minister of Transport
Programme Director Ms Leanne Manas
South African Tourism CEO Moeketsi Mosala
Johannesburg Executive Mayor Amos Masondo
Representatives of the tourism industry
Conference organisers
Distinguished guests
Members of the media
Ladies and gentlemen
It is a great honour for me to address this conference, which is putting Tourism on a business perspective and gives me the opportunity as Minister of Transport to highlight the close relationship between Tourism and Transport.
Tourism contributes significantly in business development, job creation and investment. My portfolio compels me to ensure a strong link between transport, business and tourism. These three are inseparable if our economy is to grow within the much desired six percent per annum in the next couple of years.
According to recent research conducted by the World Travel and Tourism Council in association with Accenture, the international business tourism industry is worth approximately US$672 billion and is expected to grow by about six percent per year. Tourism contributes some R21 billion to the South African economy every year and sustains nearly 260 000 jobs. It provides more than R6 billion annually to salaries and contributes R4 billion to the central fiscal in the form of taxes. Annual growth is believed to be between 4 and 5 percent.
Ladies and gentlemen, international tourism arrivals are also sky rocketing due to South Africa's prominence as a favoured destination. Foreign business tourism arrivals have increased by 30 percent from 307 000 in 2002 to 398 000 in 2005. It is estimated that 2005 saw some 2,5 million business tourists - foreign and local - in South Africa. These figures, distinguished guests, are encouraging but they also shed a warning light for us to gear up in terms of our transport infrastructure and services.
Because of increased tourist movements, Government will continue to fast track its plans on improved transport infrastructure and services. As more international tourists come to South Africa by air, advanced plans are on track to deal with the influx challenge. Airports Company South Africa (ACSA) has started on a five-year investment programme in all the major airports in the country. It has ramped up its capital expenditure commitments to R19,3 billion from R5,2 billion to meet expected growth in passenger traffic beyond 2010. ACSA's airports infrastructure plans are aimed at handling 31 million passengers in the 12 months to March, up from 28,8 million passengers in the previous year.
Work already underway at OR Tambo International Airport includes additional duty free space and the Pier One development to handle the new Airbus A380 and more passengers through air bridges. We have moved considerably in complying with the International Civil Aviation Organisation (IACO) and the South African Civil Aviation Authority safety standards so that we minimise the risks associated with air traffic accidents. The 2010 World Cup event will also bring a lot of mobility and as such we have taken stern and appropriate measures to make sure that effective, safe and reliable public transport systems will be in place.
South Africa's AsgiSA programme requires a lot of support in various areas of the economy that include effective transport, energy, telecommunication systems and respective infrastructure development in these areas. Our efforts to upgrade and build infrastructure before and after the 2010 games will go a long way and the benefits will be even more evident after the event. As Government we are determined to ensure that our aeroplanes, trains, buses and taxis and their relevant infrastructure are sound so that it will be all systems go come 2010.
Long after the final whistle of the World Cup Soccer Tournament, towns and industries will be functioning much better and more effectively and sustainable transport systems will be available and the lives of many people will improve. The economy will also be thriving. With our projected growth in job creation and economic growth, it is important that our planning in all sectors of the economy should be balanced so that when we host the 2010 Soccer World Cup we have reason to be comfortable. I must say our track record on tourism arrivals is remarkable and we are expecting a rising trend in this regard. Because we are hosting the 2010 World Cup an upward trend of visitors to South Africa is expected, we are therefore working tirelessly in terms of transport services and infrastructure. The figures that we have are clear indications that our tourism industry must be supported with effective, safe and reliable transport systems throughout the country.
A recent South African Tourism report shows that a lot needs to be done to maximise the potential of our own tourism wealth. South Africans are certainly travelling with more than 36 million trips recorded in 2005/06 but only 4,5 million of those were for holiday purposes. The report highlights the need for the industry to continue to focus on growing domestic tourism figures in tandem with international growth objectives. It also shows that the provinces extracting the most value from domestic tourism are KwaZulu-Natal, Gauteng and the Western Cape, who together reap 63 percent of the R21,2 billion, with Gauteng travellers alone responsible for 39 percent of the revenue generated. International tourism with 7,3 million tourists is generating 70 percent of the value in the industry and domestic tourism is already generating a value of 30 percent with 4,5 million holiday trips. By increasing the number of people travelling for holiday within South Africa, the contribution of tourism to Gross Domestic Product (GDP) can be maximised in line with the government's economic growth initiatives. These figures, ladies and gentlemen, can only be sustained if we invest more on our transport services domestically and internationally.
Domestic and international tourism has gained more prominence in the South African Tourism mandate over the past few years and will continue to be an area of focus along with global marketing of the destination to ensure that the doors of travel in South Africa are open to all. With the much-anticipated influx of the 2010 Soccer World Cup visitors, the Department of Transport is ensuring that the modes of transport that include air, buses, taxis and trains will be in full operation by 2010. It is of critical importance that all participants and visitors to the 2010 Soccer World Cup be accommodated in their movement from hotels to stadiums effectively.
Most South Africans are excited about us hosting the World Cup event. The 2010 FIFA World Cup is a major milestone in our history and marks the beginning of a major revolution in South Africa's transport system. Our approach for the 2010 World Cup represents a concrete foundation for the transport system beyond 2020. For the first time in history, South Africa will have major investments across all transport systems passenger rail, taxis, buses, and road networks and this will inevitably represent a wide-spread development ever seen in our country.
We have registered significant progress in integrating the Gautrain into the broader public transport network with the integration plan completed and approved. The Gautrain is to be established as the main public transport spine, with new commuter rail enhancement and linkages through intermodal facilities and feeder systems. My Department is finalising the development of regional rail plans and business plans in each metropole where Metrorail services operate.
This will quantify the actual needs for each corridor, while at the same time giving an indication of the investment requirement and how improvements will be implemented. Distinguished guests, I must stress that we have begun our revolution to maximise the existing infrastructure and integrating different transport modes as well as galvanising maximum support from all South Africans. We have already commenced our major investments across all areas of transport systems.
We have allocated R9 billion for the public transport and non-motorised transport infrastructure for 2010 R5,2 billion for airports infrastructure upgrading R63 billion for the preservation and development of our road network throughout the country, R7,7 billion in the recapitalisation of taxis and mostly importantly R5 billion is being invested in the Bus and Passenger Rail Systems.
In conclusion, ladies and gentlemen, the importance of this conference cannot be overemphasised. South Africa is a great tourism destination internationally. Our economy is one of the best in Africa and we are poised to grow even further. Our determination to host the 2010 Soccer World Cup is a clear indication that we are a nation with the tools, commitment and dedication to move forward and harness our much desired goal for success and eradicate poverty, create jobs and attract more foreign and direct investment for the much needed growth.
I thank you
Issued by: Ministry of Transport
27 February 2007
Source: Ministry of Transport
Title: Radebe: Business Tourism Conference
Address at the Business Tourism Conference at the Sandton Conference Centre ,Johannesburg by Mr Jeff Radebe, MP, Minister of Transport
Programme Director Ms Leanne Manas
South African Tourism CEO Moeketsi Mosala
Johannesburg Executive Mayor Amos Masondo
Representatives of the tourism industry
Conference organisers
Distinguished guests
Members of the media
Ladies and gentlemen
It is a great honour for me to address this conference, which is putting Tourism on a business perspective and gives me the opportunity as Minister of Transport to highlight the close relationship between Tourism and Transport.
Tourism contributes significantly in business development, job creation and investment. My portfolio compels me to ensure a strong link between transport, business and tourism. These three are inseparable if our economy is to grow within the much desired six percent per annum in the next couple of years.
According to recent research conducted by the World Travel and Tourism Council in association with Accenture, the international business tourism industry is worth approximately US$672 billion and is expected to grow by about six percent per year. Tourism contributes some R21 billion to the South African economy every year and sustains nearly 260 000 jobs. It provides more than R6 billion annually to salaries and contributes R4 billion to the central fiscal in the form of taxes. Annual growth is believed to be between 4 and 5 percent.
Ladies and gentlemen, international tourism arrivals are also sky rocketing due to South Africa's prominence as a favoured destination. Foreign business tourism arrivals have increased by 30 percent from 307 000 in 2002 to 398 000 in 2005. It is estimated that 2005 saw some 2,5 million business tourists - foreign and local - in South Africa. These figures, distinguished guests, are encouraging but they also shed a warning light for us to gear up in terms of our transport infrastructure and services.
Because of increased tourist movements, Government will continue to fast track its plans on improved transport infrastructure and services. As more international tourists come to South Africa by air, advanced plans are on track to deal with the influx challenge. Airports Company South Africa (ACSA) has started on a five-year investment programme in all the major airports in the country. It has ramped up its capital expenditure commitments to R19,3 billion from R5,2 billion to meet expected growth in passenger traffic beyond 2010. ACSA's airports infrastructure plans are aimed at handling 31 million passengers in the 12 months to March, up from 28,8 million passengers in the previous year.
Work already underway at OR Tambo International Airport includes additional duty free space and the Pier One development to handle the new Airbus A380 and more passengers through air bridges. We have moved considerably in complying with the International Civil Aviation Organisation (IACO) and the South African Civil Aviation Authority safety standards so that we minimise the risks associated with air traffic accidents. The 2010 World Cup event will also bring a lot of mobility and as such we have taken stern and appropriate measures to make sure that effective, safe and reliable public transport systems will be in place.
South Africa's AsgiSA programme requires a lot of support in various areas of the economy that include effective transport, energy, telecommunication systems and respective infrastructure development in these areas. Our efforts to upgrade and build infrastructure before and after the 2010 games will go a long way and the benefits will be even more evident after the event. As Government we are determined to ensure that our aeroplanes, trains, buses and taxis and their relevant infrastructure are sound so that it will be all systems go come 2010.
Long after the final whistle of the World Cup Soccer Tournament, towns and industries will be functioning much better and more effectively and sustainable transport systems will be available and the lives of many people will improve. The economy will also be thriving. With our projected growth in job creation and economic growth, it is important that our planning in all sectors of the economy should be balanced so that when we host the 2010 Soccer World Cup we have reason to be comfortable. I must say our track record on tourism arrivals is remarkable and we are expecting a rising trend in this regard. Because we are hosting the 2010 World Cup an upward trend of visitors to South Africa is expected, we are therefore working tirelessly in terms of transport services and infrastructure. The figures that we have are clear indications that our tourism industry must be supported with effective, safe and reliable transport systems throughout the country.
A recent South African Tourism report shows that a lot needs to be done to maximise the potential of our own tourism wealth. South Africans are certainly travelling with more than 36 million trips recorded in 2005/06 but only 4,5 million of those were for holiday purposes. The report highlights the need for the industry to continue to focus on growing domestic tourism figures in tandem with international growth objectives. It also shows that the provinces extracting the most value from domestic tourism are KwaZulu-Natal, Gauteng and the Western Cape, who together reap 63 percent of the R21,2 billion, with Gauteng travellers alone responsible for 39 percent of the revenue generated. International tourism with 7,3 million tourists is generating 70 percent of the value in the industry and domestic tourism is already generating a value of 30 percent with 4,5 million holiday trips. By increasing the number of people travelling for holiday within South Africa, the contribution of tourism to Gross Domestic Product (GDP) can be maximised in line with the government's economic growth initiatives. These figures, ladies and gentlemen, can only be sustained if we invest more on our transport services domestically and internationally.
Domestic and international tourism has gained more prominence in the South African Tourism mandate over the past few years and will continue to be an area of focus along with global marketing of the destination to ensure that the doors of travel in South Africa are open to all. With the much-anticipated influx of the 2010 Soccer World Cup visitors, the Department of Transport is ensuring that the modes of transport that include air, buses, taxis and trains will be in full operation by 2010. It is of critical importance that all participants and visitors to the 2010 Soccer World Cup be accommodated in their movement from hotels to stadiums effectively.
Most South Africans are excited about us hosting the World Cup event. The 2010 FIFA World Cup is a major milestone in our history and marks the beginning of a major revolution in South Africa's transport system. Our approach for the 2010 World Cup represents a concrete foundation for the transport system beyond 2020. For the first time in history, South Africa will have major investments across all transport systems passenger rail, taxis, buses, and road networks and this will inevitably represent a wide-spread development ever seen in our country.
We have registered significant progress in integrating the Gautrain into the broader public transport network with the integration plan completed and approved. The Gautrain is to be established as the main public transport spine, with new commuter rail enhancement and linkages through intermodal facilities and feeder systems. My Department is finalising the development of regional rail plans and business plans in each metropole where Metrorail services operate.
This will quantify the actual needs for each corridor, while at the same time giving an indication of the investment requirement and how improvements will be implemented. Distinguished guests, I must stress that we have begun our revolution to maximise the existing infrastructure and integrating different transport modes as well as galvanising maximum support from all South Africans. We have already commenced our major investments across all areas of transport systems.
We have allocated R9 billion for the public transport and non-motorised transport infrastructure for 2010 R5,2 billion for airports infrastructure upgrading R63 billion for the preservation and development of our road network throughout the country, R7,7 billion in the recapitalisation of taxis and mostly importantly R5 billion is being invested in the Bus and Passenger Rail Systems.
In conclusion, ladies and gentlemen, the importance of this conference cannot be overemphasised. South Africa is a great tourism destination internationally. Our economy is one of the best in Africa and we are poised to grow even further. Our determination to host the 2010 Soccer World Cup is a clear indication that we are a nation with the tools, commitment and dedication to move forward and harness our much desired goal for success and eradicate poverty, create jobs and attract more foreign and direct investment for the much needed growth.
I thank you
Issued by: Ministry of Transport
27 February 2007
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