Date: 10/07/2003
Source: Western Cape Provincial Government
Title: Van Schalkwyk: Western Cape Trade, Tourism & Investment Conference, London
KEYNOTE SPEECH BY THE WESTERN CAPE PREMIER, MARTHINUS VAN SCHALKWYK, ADDRESSING DELEGATES TO THE WESTERN CAPE TRADE, TOURISM, AND INVESTMENT CONFERENCE, Institute of Directors, London, 10 July 2003
STABILITY AND GROWTH: HALLMARKS OF THE WESTERN CAPE
Introduction
There are certain concepts, destinations, and locations which sell themselves. These rarest of locales combine natural splendour with unique experiences they blend new-world convenience with old-world charm, whilst at the same time offering unmatched opportunities to those who seek them out. The Western Cape Province is one such place.
As Premier of the Western Cape it is my pleasure and my privilege to welcome you to this Western Cape: Trade, Tourism and Investment Conference. There has never been a better time to visit, to experience or to invest in South Africa or the Western Cape.
During the course of the sessions today, you will hear much about the opportunities and achievements of our province - what sets this conference apart however is the fact that it truly is a private sector initiative. The power of the Western Cape as an investment, business and tourism destination is best demonstrated by the enthusiasm and optimism of our existing private sector - whose personal experiences of the Western Cape make them our best and most convincing ambassadors.
The same holds true for those who visit our region as tourists and who leave as emissaries for our province. I would like to extend the gratitude of the Western Cape Provincial Government to Omega Investment Research for having translated their enthusiasm about the future of the Cape into this important conference and business mission.
Stability The Sine Qua Non of Growth
Recent political developments in the Western Cape have brought new stability and have assured the long-term growth prospects of our province.
Our Provincial Government is a political coalition between the New National Party (NNP) and the African National Congress (ANC) - two parties whose history has been one of competition and even conflict. At the end of 2001, the national leadership of both parties entered into an historic agreement to form participatory governance at all levels of South African political life. This cooperation agreement is much more than just a coalition agreement. It is a social compact to ensure that we make all our communities - black, white, Coloured and Indian, part of the mainstream and the building process of the new South Africa. Our parties share a fundamental belief that the only way for our country to succeed is for all South Africans, irrespective of race, religion, or language, to build our common future in partnership.
In the Western Cape this agreement led to the formation of our coalition government of hope. We are demonstrating that coloured, black, white and Indian South Africans not only tolerate one another, but that we succeed best when we combine our energies and efforts. This is the basis of our commitment to building a World Class Province, which cares for all our people.
The result of this shared commitment, and of our coalition in the Western Cape, is unmatched stability, accountability and good governance - the pre-requisites for meaningful investment and trade. Investors in the Western Cape are therefore assured of a coalition government with long-term political stability. This of course allows us to plan, in partnership with our private sector, the best ways to grow the Cape over the next ten and fifteen years. The Western Cape stands ready to reap the advantages of globalisation as we position ourselves a global player in world markets.
Western Cape Trade
The Western Cape economy continues to perform well, relative to the global economy. With real GDP growth of 2,8% last year and a Gross Regional Product of R150 billion, ours is a well-established financial and commercial centre, which offers much in the way of attractive business opportunities and striking economic growth potential.
Our Western Cape Minister for Finance and Economic Development, Minister Rasool, will concentrate much of his address on the specific strengths and opportunities of our growth sectors, but suffice it for me to say that in 2002 Western Cape exports increased by 48,4% compared to the previous year. In contrast to the South African national export growth of 24,2% it is clear that our provincial economy continues to outpace almost every other region in Southern Africa.
The United Kingdom remains our single most important market -accounting for 16,7% of our exports. In just one of our most promising sectors - the wine industry - we have increased our volume exported to the UK by 26% last year, with an increase in value of 24% - against average industry growth of 6% in both volume and value. Discounting changes in currency values, exports from the Western Cape have grown by an impressive 108% since 1998.
One of the key components of our growth strategy in the Western Cape is the rapid development of our human resources - the skills base which is so important for global competitiveness. This is why our Provincial Government has initiated projects like our new Maths, Science, and Technology Academy to identify and nurture young talent from formerly disadvantaged communities in these key fields. It is also why we have lent our support to projects like the space and satellite research programme at the University of Stellenbosch, which has already begun to attract scientists and experts from around the world.
In almost every sector of commerce and industry there are exciting new opportunities waiting to be explored to the mutual advantage of investors and the people of the Cape. Combined with one of the best transport and communications infrastructures in the Southern Hemisphere, a well-established and flourishing financial services sector, and one of the most enjoyable and affordable lifestyles in the world, the Cape of Good Hope has become the Cape of World Class opportunities.
Western Cape Tourism
Tourism is one of the most important growth sectors in the province. Potential high growth tourism niches include health, corporate, conference, incentive and adventure tourism.
Internationally the Western Cape is recognised as a premium tourism destination, with two of the Top 25 Conde Nast Traveller Hotels in Cape Town, the city voted in October 2002 by BBC viewers the 5th most sought-after place on Earth to be seen during one's life-time - the top position for any city on the list. The Western Cape also boasts eight of South Africa's top ten international tourist attractions.
One of the most telling signs of the long-term prospects for Western Cape tourism has been the way in which growth in this sector has defied the international trend following September 11, Afghanistan, Iraq and most recently the SARS epidemic. In the face of rapidly declining levels of world-wide tourism, tourism to South Africa and the Western Cape has continued to grow.
In 2002 the number of overseas visitors to South Africa rose by 21% to 1,8 million, of which 976 000 spent time in our province. Europeans continue to comprise the bulk of our tourism market, with the UK and Germany leading the way. Last year alone, UK visitor numbers rose by 24%. During 2002/3 foreign direct investments in excess of R550m have been absorbed by our tourism sector, adding to the very significant resources invested by our national, provincial and local governments in developing tourism infrastructure.
Perhaps the single most visible and promising of these investments has been the Cape Town International Convention Centre, which we officially opened two weeks ago. This world-class, state-of-the-art facility has already received bookings for major international conventions as far ahead as 2014 - and will add more than R25 billion to South Africa's economy over the next decade. Most importantly, it adds the last item of critical infrastructure needed by the Western Cape to allow us to be globally competitive - and will do much to bring foreign visitors to our shores throughout the year.
Airline Destination Conference
We know that one of the biggest barriers to increasing the flow of visitors to the Cape from the UK has been the need for more frequent direct flights, and in this regard we are very happy that the recent decision by the international slot committee has resulted in South African Airways receiving another two peak-time slots at Heathrow, and that bilateral agreements between our two countries have been expanded. As a result, UK-based carriers have had their capacity increased from 32 direct flights to South Africa to 34 this year - to be further increased to 36 next year, while SA carriers will increase weekly frequencies to 26 flights.
However, there is still much room for additional flights to meet the rapidly growing demand. During 2002, 76% of all overseas visitors to South Africa arrived by air. Only 370 000 of these foreign visitors (i.e. 27%) arrived directly by air into Cape Town International Airport. Year round, only SAA and BA fly directly between Cape Town and Europe, while Lufthansa and KLM fly via Johannesburg. During the peak season, SAA, BA, Virgin, KLM and LTU fly directly between Cape Town and Europe. However, there are 52 airlines that fly directly to Johannesburg. It is therefore clearly in the Western Cape's best interest to encourage a greater share of these 52 airlines to also fly directly into Cape Town.
I am therefore pleased to announce that our Provincial Government will soon be co-sponsoring a conference in Cape Town to bring together major airlines to discuss ways of achieving this aim, and to increase the number of independent airlines flying directly into the Cape. This event will showcase the Western Cape as an airline destination and will give the airlines an opportunity to present on destination marketing issues, highlighting what they require to fly to a destination, both directly and indirectly. The conference, initiated by ACSA and also supported by the City of Cape Town, will bring together 200 delegates from all the major airlines that fly to South Africa, tour operators and key role players in the hospitality and convention industries.
Western Cape Investment
It is not only in tourism though that the opportunities for investment in the Western Cape have begun to draw serious international attention. The intended R1 billion upgrading of the Cape Town Harbour promises improved facilities and World Class maritime services; the exciting prospects of natural gas fields which may yield as much as 15 trillion standard cubic feet of gas off our West Coast may soon transform the Cape into a world player on the global energy markets; and the announcement by the middle of August this year of the preferred bidder for the Film City for Cape Town will confirm our province's place as an advertising and motion-picture Mecca.
Foreign Direct Investment in the Western Cape grew last year to R1, 275 billion, but clearly this is just the beginning. In clothing and textiles, in automotive components, in manufacturing and in so many other sectors the potential of the Cape is unmatched. A sterling example of this is the relatively young call-centre industry in our province.
With about 7000 people employed in this sector in the Western Cape, and with annual growth of between 20 and 30%, this service industry is a prime example of how international partnerships with companies and entrepreneurs in the Cape can provide World Class return on investment.
Already larger than many of its European counterparts in countries like Ireland, Belgium and Spain, the South African call-centre industry continues to grow from strength to strength. We will hear later today from Jason Drew, the Chairperson of UK-based Dialogue, which is one of the biggest companies in this market in the Western Cape. With an initial investment of R20 million in Cape Town, I am informed that this will soon be increased by a further R50 million. Dialogue's original plans of employing 1500 people by 2005 have already had to be revised, with the announcement this week of six new public and private-sector clients from North America - and as a result I am pleased to announce that plans are already underway to instead employ 3000 people in the Cape to accommodate the new business. I hope that this conference will assist in securing further investments of this nature.
Conclusion
From trade and investment, to tourism, leisure and fun, the Western Cape is rapidly establishing itself as a World Class Province - and it is our hope that our British partners will take advantage of these opportunities.
Naturally we are not oblivious to the challenges which confront our region. Our Provincial Government chooses to tackle these challenges head-on. This is why our programme to prevent the transmission of HIV/AIDS from mothers to their children is the largest and most successful of its kind in Africa - having achieved 100% coverage of the province earlier this year. This is why we have prioritised meaningful land-reform and since August 2001 we have already settled more than 4000 beneficiaries of agricultural land reform - to avoid a Zimbabwe-style problem ever arising in our region. This is also why we have announced the deployment of more than 3000 new police recruits in the Western Cape this year alone, to tackle crime head-on, with force levels rising from 12 000 to 18 000 by the end of next year. Our Provincial Government knows that there are still challenges to be met, but we are determined to address them in building our World Class Province.
On behalf of the Government and the people of the Western Cape, I would like to thank you for your interest in our province and the opportunities which it presents.
We believe passionately in the potential of our province and invite you to be part of our success. Whilst we are world-famous for our breathtaking landscapes, our priceless natural splendour and the quality of our produce, it is the unique character of our people and our rich cultural diversity which best captures the spirit of our province. The pride and power of the Western Cape lies in the hearts of our people.
Enquiries: Riaan Aucamp on 083-778-9923
Issued by Western Cape Provincial Government
10 July 2003
Source: Western Cape Provincial Government
Title: Van Schalkwyk: Western Cape Trade, Tourism & Investment Conference, London
KEYNOTE SPEECH BY THE WESTERN CAPE PREMIER, MARTHINUS VAN SCHALKWYK, ADDRESSING DELEGATES TO THE WESTERN CAPE TRADE, TOURISM, AND INVESTMENT CONFERENCE, Institute of Directors, London, 10 July 2003
STABILITY AND GROWTH: HALLMARKS OF THE WESTERN CAPE
Introduction
There are certain concepts, destinations, and locations which sell themselves. These rarest of locales combine natural splendour with unique experiences they blend new-world convenience with old-world charm, whilst at the same time offering unmatched opportunities to those who seek them out. The Western Cape Province is one such place.
As Premier of the Western Cape it is my pleasure and my privilege to welcome you to this Western Cape: Trade, Tourism and Investment Conference. There has never been a better time to visit, to experience or to invest in South Africa or the Western Cape.
During the course of the sessions today, you will hear much about the opportunities and achievements of our province - what sets this conference apart however is the fact that it truly is a private sector initiative. The power of the Western Cape as an investment, business and tourism destination is best demonstrated by the enthusiasm and optimism of our existing private sector - whose personal experiences of the Western Cape make them our best and most convincing ambassadors.
The same holds true for those who visit our region as tourists and who leave as emissaries for our province. I would like to extend the gratitude of the Western Cape Provincial Government to Omega Investment Research for having translated their enthusiasm about the future of the Cape into this important conference and business mission.
Stability The Sine Qua Non of Growth
Recent political developments in the Western Cape have brought new stability and have assured the long-term growth prospects of our province.
Our Provincial Government is a political coalition between the New National Party (NNP) and the African National Congress (ANC) - two parties whose history has been one of competition and even conflict. At the end of 2001, the national leadership of both parties entered into an historic agreement to form participatory governance at all levels of South African political life. This cooperation agreement is much more than just a coalition agreement. It is a social compact to ensure that we make all our communities - black, white, Coloured and Indian, part of the mainstream and the building process of the new South Africa. Our parties share a fundamental belief that the only way for our country to succeed is for all South Africans, irrespective of race, religion, or language, to build our common future in partnership.
In the Western Cape this agreement led to the formation of our coalition government of hope. We are demonstrating that coloured, black, white and Indian South Africans not only tolerate one another, but that we succeed best when we combine our energies and efforts. This is the basis of our commitment to building a World Class Province, which cares for all our people.
The result of this shared commitment, and of our coalition in the Western Cape, is unmatched stability, accountability and good governance - the pre-requisites for meaningful investment and trade. Investors in the Western Cape are therefore assured of a coalition government with long-term political stability. This of course allows us to plan, in partnership with our private sector, the best ways to grow the Cape over the next ten and fifteen years. The Western Cape stands ready to reap the advantages of globalisation as we position ourselves a global player in world markets.
Western Cape Trade
The Western Cape economy continues to perform well, relative to the global economy. With real GDP growth of 2,8% last year and a Gross Regional Product of R150 billion, ours is a well-established financial and commercial centre, which offers much in the way of attractive business opportunities and striking economic growth potential.
Our Western Cape Minister for Finance and Economic Development, Minister Rasool, will concentrate much of his address on the specific strengths and opportunities of our growth sectors, but suffice it for me to say that in 2002 Western Cape exports increased by 48,4% compared to the previous year. In contrast to the South African national export growth of 24,2% it is clear that our provincial economy continues to outpace almost every other region in Southern Africa.
The United Kingdom remains our single most important market -accounting for 16,7% of our exports. In just one of our most promising sectors - the wine industry - we have increased our volume exported to the UK by 26% last year, with an increase in value of 24% - against average industry growth of 6% in both volume and value. Discounting changes in currency values, exports from the Western Cape have grown by an impressive 108% since 1998.
One of the key components of our growth strategy in the Western Cape is the rapid development of our human resources - the skills base which is so important for global competitiveness. This is why our Provincial Government has initiated projects like our new Maths, Science, and Technology Academy to identify and nurture young talent from formerly disadvantaged communities in these key fields. It is also why we have lent our support to projects like the space and satellite research programme at the University of Stellenbosch, which has already begun to attract scientists and experts from around the world.
In almost every sector of commerce and industry there are exciting new opportunities waiting to be explored to the mutual advantage of investors and the people of the Cape. Combined with one of the best transport and communications infrastructures in the Southern Hemisphere, a well-established and flourishing financial services sector, and one of the most enjoyable and affordable lifestyles in the world, the Cape of Good Hope has become the Cape of World Class opportunities.
Western Cape Tourism
Tourism is one of the most important growth sectors in the province. Potential high growth tourism niches include health, corporate, conference, incentive and adventure tourism.
Internationally the Western Cape is recognised as a premium tourism destination, with two of the Top 25 Conde Nast Traveller Hotels in Cape Town, the city voted in October 2002 by BBC viewers the 5th most sought-after place on Earth to be seen during one's life-time - the top position for any city on the list. The Western Cape also boasts eight of South Africa's top ten international tourist attractions.
One of the most telling signs of the long-term prospects for Western Cape tourism has been the way in which growth in this sector has defied the international trend following September 11, Afghanistan, Iraq and most recently the SARS epidemic. In the face of rapidly declining levels of world-wide tourism, tourism to South Africa and the Western Cape has continued to grow.
In 2002 the number of overseas visitors to South Africa rose by 21% to 1,8 million, of which 976 000 spent time in our province. Europeans continue to comprise the bulk of our tourism market, with the UK and Germany leading the way. Last year alone, UK visitor numbers rose by 24%. During 2002/3 foreign direct investments in excess of R550m have been absorbed by our tourism sector, adding to the very significant resources invested by our national, provincial and local governments in developing tourism infrastructure.
Perhaps the single most visible and promising of these investments has been the Cape Town International Convention Centre, which we officially opened two weeks ago. This world-class, state-of-the-art facility has already received bookings for major international conventions as far ahead as 2014 - and will add more than R25 billion to South Africa's economy over the next decade. Most importantly, it adds the last item of critical infrastructure needed by the Western Cape to allow us to be globally competitive - and will do much to bring foreign visitors to our shores throughout the year.
Airline Destination Conference
We know that one of the biggest barriers to increasing the flow of visitors to the Cape from the UK has been the need for more frequent direct flights, and in this regard we are very happy that the recent decision by the international slot committee has resulted in South African Airways receiving another two peak-time slots at Heathrow, and that bilateral agreements between our two countries have been expanded. As a result, UK-based carriers have had their capacity increased from 32 direct flights to South Africa to 34 this year - to be further increased to 36 next year, while SA carriers will increase weekly frequencies to 26 flights.
However, there is still much room for additional flights to meet the rapidly growing demand. During 2002, 76% of all overseas visitors to South Africa arrived by air. Only 370 000 of these foreign visitors (i.e. 27%) arrived directly by air into Cape Town International Airport. Year round, only SAA and BA fly directly between Cape Town and Europe, while Lufthansa and KLM fly via Johannesburg. During the peak season, SAA, BA, Virgin, KLM and LTU fly directly between Cape Town and Europe. However, there are 52 airlines that fly directly to Johannesburg. It is therefore clearly in the Western Cape's best interest to encourage a greater share of these 52 airlines to also fly directly into Cape Town.
I am therefore pleased to announce that our Provincial Government will soon be co-sponsoring a conference in Cape Town to bring together major airlines to discuss ways of achieving this aim, and to increase the number of independent airlines flying directly into the Cape. This event will showcase the Western Cape as an airline destination and will give the airlines an opportunity to present on destination marketing issues, highlighting what they require to fly to a destination, both directly and indirectly. The conference, initiated by ACSA and also supported by the City of Cape Town, will bring together 200 delegates from all the major airlines that fly to South Africa, tour operators and key role players in the hospitality and convention industries.
Western Cape Investment
It is not only in tourism though that the opportunities for investment in the Western Cape have begun to draw serious international attention. The intended R1 billion upgrading of the Cape Town Harbour promises improved facilities and World Class maritime services; the exciting prospects of natural gas fields which may yield as much as 15 trillion standard cubic feet of gas off our West Coast may soon transform the Cape into a world player on the global energy markets; and the announcement by the middle of August this year of the preferred bidder for the Film City for Cape Town will confirm our province's place as an advertising and motion-picture Mecca.
Foreign Direct Investment in the Western Cape grew last year to R1, 275 billion, but clearly this is just the beginning. In clothing and textiles, in automotive components, in manufacturing and in so many other sectors the potential of the Cape is unmatched. A sterling example of this is the relatively young call-centre industry in our province.
With about 7000 people employed in this sector in the Western Cape, and with annual growth of between 20 and 30%, this service industry is a prime example of how international partnerships with companies and entrepreneurs in the Cape can provide World Class return on investment.
Already larger than many of its European counterparts in countries like Ireland, Belgium and Spain, the South African call-centre industry continues to grow from strength to strength. We will hear later today from Jason Drew, the Chairperson of UK-based Dialogue, which is one of the biggest companies in this market in the Western Cape. With an initial investment of R20 million in Cape Town, I am informed that this will soon be increased by a further R50 million. Dialogue's original plans of employing 1500 people by 2005 have already had to be revised, with the announcement this week of six new public and private-sector clients from North America - and as a result I am pleased to announce that plans are already underway to instead employ 3000 people in the Cape to accommodate the new business. I hope that this conference will assist in securing further investments of this nature.
Conclusion
From trade and investment, to tourism, leisure and fun, the Western Cape is rapidly establishing itself as a World Class Province - and it is our hope that our British partners will take advantage of these opportunities.
Naturally we are not oblivious to the challenges which confront our region. Our Provincial Government chooses to tackle these challenges head-on. This is why our programme to prevent the transmission of HIV/AIDS from mothers to their children is the largest and most successful of its kind in Africa - having achieved 100% coverage of the province earlier this year. This is why we have prioritised meaningful land-reform and since August 2001 we have already settled more than 4000 beneficiaries of agricultural land reform - to avoid a Zimbabwe-style problem ever arising in our region. This is also why we have announced the deployment of more than 3000 new police recruits in the Western Cape this year alone, to tackle crime head-on, with force levels rising from 12 000 to 18 000 by the end of next year. Our Provincial Government knows that there are still challenges to be met, but we are determined to address them in building our World Class Province.
On behalf of the Government and the people of the Western Cape, I would like to thank you for your interest in our province and the opportunities which it presents.
We believe passionately in the potential of our province and invite you to be part of our success. Whilst we are world-famous for our breathtaking landscapes, our priceless natural splendour and the quality of our produce, it is the unique character of our people and our rich cultural diversity which best captures the spirit of our province. The pride and power of the Western Cape lies in the hearts of our people.
Enquiries: Riaan Aucamp on 083-778-9923
Issued by Western Cape Provincial Government
10 July 2003
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