Date: 06/10/2005
Source: Department of Environmental Affairs and Tourism
Title: Van Schalkwyk: National Tourism Conference


  Opening speech by Marthinus van Schalkwyk, Minister of Environmental Affairs and Tourism, addressing the fourth Annual National Tourism Conference, Sun City

TOURISM, YESTERDAY, TODAY & TOMORROW: MINISTER ANNOUNCES BEE COUNCIL MEMBERS & NEW EUROPEAN BUSINESS TOURISM CAMPAIGN

Introduction

St. Augustine of Algeria once said that the world is a book, and those who do not travel read only one page. If the most exceptional experiences of the world could be captured between the covers of only one volume, then travel and tourism in South Africa would fill the space of many chapters. As the patron Saint of brewers, St. Augustine's experience of our hospitality industry, were he alive today, would certainly convince him of the truth known so well by the almost 6,7 million foreign visitors who travelled to our shores last year, and the millions of our own domestic travellers who have taken a Sho't Left, that there is indeed a piece of paradise on earth, and that it lies, waiting to be explored, at the Southern tip of Africa.

Many here today will recall our first National Tourism Conference held in November 2002 in Limpopo. It was a time of unprecedented tourism growth when we came together to acknowledge the need for a new partnership. We created this conference to better focus our energies and our enthusiasm. By creating a new space for open discussion and debate, we adopted a plan of action to ensure that our tourism success would be sustained. We also set for ourselves a three-year horizon and so today, at this fourth National Tourism Conference, it is time to take stock of our achievements, acknowledge where work remains to be done, and set new goals for the future.

Our first and over-riding reaction to the past three years must be one of celebration. No other economic sector has performed as well, contributed as much, or grown as rapidly as tourism. The numbers continue to speak for themselves, the first quarter of 2005 saw 1,7 million foreign tourist arrivals, which was the highest in our history and represented exceptional growth of more than 10% over the already-high figures of 2004. Even more significantly we saw foreign tourism spend jump by more than 25% to R12,9 billion. In spite of these successes however, we also know that we have no room for complacency. Tourism in South Africa will never again be only about the stats and the trends, rather we know it to be about real people, jobs, growth, and bread on the table for everyone from tourist guides and crafters, to hoteliers, airline employees, and rickshaw pullers. Our celebrations should centre on the 27 000 new direct tourism jobs that were created last year * and our real challenge is to improve on this success.

Tourism 2002, a Very Different Place

Three years ago South Africa and our tourism industry was in a very different place. Three years may seem like only yesterday, but in this time so much has changed, so much improved and so much matured that it easy to forget. So let us reflect for a moment and ask ourselves: as a first-time visitor to South Africa in 2002 what would I have experienced, and how would this differ today?

To start with, I would have no firm idea of what to expect from my visit, because three years ago there was no recognisable global brand - unlike today when the world knows that in South Africa 'It's Possible'. I would most likely have heard about South Africa only through word-of-mouth, since SA Tourism was operating on a budget of R250 million compared to the current R500 million - with offices in only a few global locations. I would have arrived to an experience that could best have been described as a gamble, with only 1222 accommodation establishments star-graded for quality, compared to the almost 3800 graded today. I would have discovered a tourism destination in which the vast majority of local people had no sense of ownership, there would have been no Anastacia Makgato and her guest house to welcome me to Soweto, no 53% black ownership of the largest hotel group in Africa (1), and no BEE Charter to ensure that tourism benefits all South African communities.

There was no impending 2010 Soccer World Cup milestone to boost and motivate the industry, no coordinated growth strategy, no competitiveness study to identify markets and gaps, no Sho't Left domestic tourism campaign, and no tourism research unit to inform decision-making. ETEYA was only just getting started, Team South Africa was still a dream, and this annual Tourism Conference was just a good idea.

Three years later, by any measure, we have moved mountains. In fact, of the four major goals that we set for ourselves in 2002, branding, BEE, better research, and improved public transport, only one remains unmet.

BEE Charter Council Appointed

The theme of this 4th Tourism Conference is 'Equity and Growth through the 2010 World Cup and Beyond', which means that our focus over these two days must be the creation of a new vision, with agreement on new targets and new strategies. One of the key drivers of this next phase of tourism development will be the tourism Black Economic Empowerment (BEE) Charter Council.

You will recall the launch, at Indaba 2005, of our final BEE scorecard and Charter, designed to change the face of our industry by ensuring that all communities feel the benefits of our tourism success. You will also recall that, at the launch, we committed to drive and monitor the implementation of the Charter through the establishment of a Tourism BEE Council.

It is my great pleasure today to announce that the Charter Council is hereby officially appointed under the Chairmanship of Tami Sokutu, formerly Director General of the Department of Public Works and currently Executive Director of African Bank. The other members of the Council include Anitha Soni, representing Tourism Services; Arlene Peters, from FEDHASA; Sizakele Marutlulle, COO of SA Tourism; Thabiso Tlelai, of the Tourism Business Council; Eddie Khoza, on behalf of business tourism; Helder Pereira; Vusi Zwane, from SATSA; Jeffrey Ndumo, from the dti; Dr Patrick Matlou from our Department; Dennis George, from FEDUSA; Frank Kilbourn; a representative from COSATU; as well as Patience Mokhadi, the Head of Department in the Northern Cape representing the provincial perspective.

These council members, many of whom are with us here today, will lead our BEE implementation, monitoring, and strategising for a three-year term. Amongst the twelve concrete action plans for this financial year are the creation of a provincial tourism BEE specialist’s network; the implementation of an industry-wide communications campaign, BEE helpline, and website; an annual BEE progress report; and the gazetting of the Tourism Charter as a Code of Good Practice. I would like to take this opportunity to thank them all for their willingness to serve, and to assure them of our support in this new role.

2010 Tourism Plan Nearing Completion

Looking ahead to where we will be in three years from today, the most apparent feature dominating the tourism landscape will be the fact that we will stand on the verge of hosting the largest and most-watched sporting event on earth, the 2010 Soccer World Cup. We know from our recent fact-finding mission to Germany that, by then, our preparations must be almost complete or we will risk tarnishing our reputation as a global destination of distinction.

The outcome of our discussions at last year's Tourism Conference was a framework for the development of a complete 2010 tourism action plan. I am pleased today to report that this plan is now nearing completion. The analysis of global best practice has been concluded, as have the studies into likely tourism demands. Following workshops in all eleven potential host-cities we are now finalising the supply analysis. Our initial results point to very specific gaps in our tourism offerings that will need to be urgently addressed, including accommodation shortages of more than 10 000 beds in all cities except Cape Town, Durban, and Rustenburg; public transportation networks in need of expansion; and the urgent requirement for additional tourism and hospitality skills.

Moeketsi Mosola, our CEO of SA Tourism, will be presenting the preliminary plan in much more detail tomorrow, when we will be asking for your advice and assistance. To complete the plan by the end of November, which remains our goal, we need more information from provinces and from industry about the specific strategies to move from the supply analysis to a final implementation plan.

Progress on Tourism Satellite Account

In much the same way as our tourism decision-making has been improved by the creation and success over these past three years of a professional research unit within SA Tourism, we have also come to realise how much we still don't know. Tourism is not always easy to define since, unlike most industries, it is not characterised by the goods or services produced, but rather by the status of the consumer. What this means is that our best statistics and research trends are still not an accurate measure of, for instance, the real contribution of tourism to our economy.

That is why we announced, at the start of this year, an investment of R12 million over the next three years to create a Tourism Satellite Account within StatsSA to generate the most accurate and reliable picture of tourism value possible. The training of Tourism Satellite Account technicians is already underway, as are the consultations and workshops to firm up our definitions. By March 2006 we will have completed the first two of ten statistical tables that will make up the account: the value of inbound tourism and domestic tourism consumption. Our vision, by the time we next undertake a three-year review, in 2008, is to have fully accurate statistics on, amongst others, tourism use and supply, employment in tourism at all levels, and levels of outbound tourism consumption.

New European Business Tourism Campaign

Another key aspect of our tourism vision for the next three years will be to capitalise on our vast business tourism potential. Currently injecting about R20 billion annually into our economy, business tourism is estimated to already sustain almost 260 000 jobs, paying out an estimated R6 billion in salaries, and accounting for R4 billion in taxes every year and that when we rank as the 28th most popular global business tourism destination.

To ensure that we break into the list of the Top 20 destinations by 2007, we will be launching a new Business Tourism Campaign in Amsterdam on 1 November to industry and business leaders, with a London launch two days later and an Asian and American roll-out in the new year. Joined by members of the SA Tourism Board and Executive we will be marketing not only the destination but our unique South African approach to doing business.

We take this market very seriously because it has strengths that complement our own leisure tourism success. Business tourism is immune to many of the challenges faced by leisure tourism, especially seasonality, operating against a business calendar as opposed to a seasonal one. We are confident that with this new campaign we will be able to further capitalise on this lucrative market segment.

Conclusion

In conclusion, I would like to thank our partners and sponsors who have helped to make this conference possible, SA Tourism, the Development Bank of Southern Africa, Brandhouse, the North West Provincial Tourism Department, and Parks and Tourism Board. The first-time visitor to South Africa in 2002 would scarcely recognise our tourism industry just three short years later. Much has been achieved and we have much of which to be proud. Clearly we must still address a number of serious challenges ranging from public transport and other tourism infrastructure needs, to a skills gap made more serious by the fact that industry argues our educational institutions are not producing graduates with the necessary skills.

Our broader Southern African and continental partnerships will also need to be amongst our primary focuses. Although we have said that the 2010 World Cup will be an African event, this has not meant that we are waiting for 2010 before we strengthen these ties. With private sector investment through companies like Tourvest, Protea and many others, combined with our initiatives in fields like grading, Transfrontier Conservation Areas, and skills development, we are proving that tourism is not just South African gold, but one of the greatest African assets.

These and other challenges must form the basis of our goals and vision for the next three years, which will be discussed and agreed upon as a programme of action during the course of this conference. Based on our double-digit growth this quarter and the success of our campaigns last year, I believe we are on track to meet our target of breaking the 7 million visitor mark this year, and to seriously tackle the target of 10 million visitors by 2010.

It has been said that the role of the Minister at these conferences is to report on the State of Tourism, if so, then my report is glowing, which should only spur us to further action and new heights. Although, for purposes of limited time, my own review has been abbreviated, the detailed State of Tourism will be the core of our discussions and commissions for the duration of the conference. Our industry has never been better positioned, better resourced or better prepared for success and I would like today to thank each and every one of you who has helped to make this possible.

(1) Protea Hotels is now 53% owned by empowerment shareholders.

Issued by: Department of Environmental Affairs and Tourism
6 October 2005