Issued by: Public Relations International
SPEECH BY MINISTER PALLO JORDAN TO THE FINANCIAL ANALYSTS SOCIETY
Address to TOURVEST 2 April 1997, Sandton Sun Hotel, Johannesburg
The chairperson, Mr. Pat Retief, The Chief Executive, Mr. Mike Beevers, members of the Tourvest Board, distinguished guests, ladies and gentlemen.
It is a pleasure for me to address you today, at the launch of an important and significant initiative in the tourism industry, the formation of the Tourism Investment Corporation, or Tourvest. Tourvest, the first non-hotel group focused exclusively on the tourism sector to be listed on the JSE, can indeed play a major role in the South African tourism industry.
While there are a handful of terribly misguided souls who appear bent on scaring away tourists and international investors by spreading lurid stories about this country, the tourism industry continues to grow from strength to strength.
South Africa is experiencing a massive tourism boom, as thousands of visitors flock to our shores. South Africa has now outstripped all other countries on the continent, save Egypt, as a tourist destination. Foreign tourism has grown 16% in real terms over the past six to nine years, well above the international average of 4 - 5%.
Tourism has been identified as a potential economic stimulant and one of the key growth points in the economy. It is predicted that it will be a crucial job creator well into the 21st century. It consequently assumes a new significance in the overall economic strategy of the government.
The thrust of the Government of National Unity's macro-economic strategy is meeting the basic needs of all South Africans, and addressing the huge disparities that still divide the previously privileged from the historically disadvantaged.
To ensure the recovery of our economy, which was so severely damaged by the misguided policies of the past, we have put into place the Growth, Employment and Redistribution plan or GEAR - premised on a partnership among government, business and labour, which aims to create an environment conducive to investment.
The basic approach of the government is to promote sustainable employment opportunities for our people. This requires trade, investment and human resource policies that recognise the globalization process. Our emphasis on sustainability must be accompanied by the generation of new economic activity so as to create job opportunities across a wide front. Tourism, because it takes in and feeds off so many other sectors, is ideally suited for this purpose.
For this sector to grow required a complementary set of initiatives in the finance, transport, communications, construction, public utilities and hospitality sectors. Once attained, this growth will directly feed back into these sectors while relying on them for its continued sustenance.
I was very heartened to learn that part of the rationale for combining a comprehensive travel business with a retailing component, was to provide a greater depth of service to tourists visiting our country, and to maximise synergies within the group. I am also particularly interested in the intentions of Tourvest to expand into other tourist-related businesses, including eco-tourism and the development of eco-tourism attractions; and the identification of black equity partners, with a view to creating wealth in previously disadvantaged constituencies.
The business sector has also on many occasions, raised legitimate concerns about the South African Tourism Board, and the manner in which South Africa has been marketed internationally. A visit to many of our Foreign Embassies or international SATOUR offices will tell you that South Africa has thus far been marketed almost exclusively for its flora, fauna and beautiful beaches.
But, is that all there is to South Africa?
Concerning the rich tapestry of cultural, racial, linguistic and religious diversity that makes up this country, why has it been so difficult to promote and to market these as among the many dimensions of the South African experience?
Dishes that are distinctly African are beyond the ken of our hospitality industry! Yet virtually every visitor to South Africa I have had contact with wishes to taste African cuisine!
In a city such as Johannesburg, which has one of the largest Indian populations on the African continent, one cannot get a decent curry on the menu of any of our leading restaurants. The Euro-centric focus of both our marketing and promotions is in great measure a function of the exclusion of Africans, Coloureds and Indians from this sector. The entry of entrepreneurs from the previously disadvantaged communities into the tourist business, will I am certain, begin to change that. The commitment, expressed by Tourvest, to explore black equity partners, to draw previously disadvantaged communities into the tourism industry therefore must be commended.
My Ministry is committed to exploring ways in which to broaden the base of the industry, by promoting the participation of the previously marginalised and disadvantaged business-people and communities in the tourism industry. The private sector must play its role in making the industry more representative. By so doing it will not only address the pressing problem of employment and income-generation, but also be acting in its own interest by presenting this new image of the new South Africa, home of the rainbow nation.
My Ministry has recognised that an innovative and assertive approach is needed to market South Africa internationally, to capture the lessons we have learnt as a nation, and to present the face of the new South Africa to the rest of the world. We have already begun the process of spear-heading far-reaching changes in the tourism industry. New legislation which made provision for the establishment of a new Tourism Board was passed in November last year.
Ladies and gentlemen, I am pleased to announce that I have last week appointed the members of the new South African Tourism Board. I received many nominations from the public, and from different sectors of society, of the highest calibre of people. The members of the new Tourism Board represent the provinces, business, labour and communities. We have also included specialists in tourism among the appointees.
This new Board is charged with the responsibility of providing a new direction and focus in the marketing of South Africa. Being a highly representative body, I am certain that this Board will strengthen the relationship between government and those engaged in the tourism industry as employers and employees.
(A list of the new board members is available from my Media Liaison Officer.)
Ladies and gentlemen, my Ministry believes that South African tourism is set to make huge strides into the global tourism arena. The private sector is critical to this aim, and initiatives such as the launch of the Tourism Investment Corporation shows me that you share this vision.
Mr Chairperson, thank you for inviting me to address you here today, and I wish Tourvest every success in your future endeavors.
Thank you