TOURISM GAME CHANGERS 27 November 2019 Tourism is another area - - PowerPoint PPT Presentation

TOURISM GAME CHANGERS 27 November 2019

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“Tourism is another area which provides our country with incredible opportunities to, quite literally, shine. Tourism currently sustains 700,000 direct jobs and is performing better than most other growth sectors. There is no reason why it can’t double in size. We have the most beautiful country in the world and the most hospitable people. This year, we will enhance support for destination marketing in key tourism markets and take further measures to reduce regulatory barriers and develop emerging tourism businesses. We call on all South Africans to

• pen their homes and their

hearts to the world.” President Ramaphosa

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MTSF Priorities for 2019 - 2024

The seven priorities are Industrial policy for inclusive economic growth – 7 National Priority Sectors Tourism Targets for the MTSF

Priority 1: Economic Transformation and Job Creation Priority 2: Education, Skills and Health Priority 3: Consolidating the Social Wage through Reliable and Quality Basic Services Priority 4: Spatial Integration, Human Settlements and Local Government Priority 5: Social Cohesion and Safe Communities Priority 6: A Capable, Ethical and Developmental State Priority 7: A better Africa and World 1) Industrial Sector

• Automotives
• Clothing, Textile, Leather and

Footwear

• Chemicals and Plastics
• Energy (Includes, gas,

renewables/green economy, etc.)

• Steel and Metal Fabrication

2) Tourism 3) High Tech Sectors

• ICT and Software Production
• Digital Economy
• Health Economy
• Defense Economy

4) Agro-Industry 5) Mining and beneficiation 6) Oceans Economy 7) Creative Industries

• Tourism has been identified as a

priority sector in the industrial

• strategy. A comprehensive masterplan

is being developed for the sector.

• Within the context of both the State of

the Nation Address (SONA) and the Industrial Strategy the following high level indicators will be monitored: 1) International Tourism Arrivals 2) Total Tourist Foreign Direct Spend 3) Length of stay by international tourists 4) Domestic holiday trips 5) Direct contribution to the Gross Domestic Product (GDP) 6) Direct contribution of tourism to job creation

Source: UNWTO 4

Why tourism matters

• Tourism is one of the best performing economic

sectors & strategic pillar of SA’s Economic Diplomacy as recognised by DIRCO.

• Has

the potential to address the triple challenges

• f

unemployment, poverty and inequality through the creation of decent jobs.

• A foreign exchange earner and contributes

towards the balance of payments

• Provides

the provision

• f

economic

• pportunities for women and youth and support

the developments of SMMEs

• Provides the opportunity to stimulate economic

activity in rural and township areas

• Supports NDP’s economic policy objectives for a

more diversified economy

• Has multiple linkages with other sectors of the

economy and generate significant multiplier effects

• Tourism is not only important for economic

reasons but has potential to foster social cohesion, in particular domestic tourism

5 Branch: TRP&IR Source: South African Tourism

Source: South African Tourism 6 Branch: TRP&IR

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The value of tourism in comparison to

• ther sectors

Sustainable contribution to economic growth and job creation

• more than 10 472 105

million tourist arrivals in 2017 (1.8% increase)

• contribution to the economy

was 2,8% (R130.3 billion)

• 4,5% (722 013 individuals)
• f total workforce in South

Africa worked in the tourism sector in 2017

Value of tourism

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The tourism value chain

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SECRET 10

Policy and Legislative Mandate

• Tourism is a concurrent function for all three spheres of Government.

At a National level, the Department of Tourism came into existence in 2009.

• Overall legislative and policy direction for the Department of Tourism is

provided for in the Tourism Act,2014 (Act No 3 of 2014),the National Development Plan (NDP) and the National Tourism Sector Strategy (NTSS - 2017)

• The Department’s mandate is to grow tourism to and within South Africa such

that:

• Its contribution to the Gross Domestic Product (GDP) and the economy is

increased.

• Its contribution to job creation in South Africa is increased.
• Economic participation in the sector is inclusive.
• Enjoyment of tourism is shared by all South Africans.
• Quality tourism products and services are promoted.
• The practice of responsible tourism is promoted.

SECRET 11

Policy and Legislative Mandate (cont)

1996 • White Paper on the Developm ent and Promotion

• f Tourism

in South Africa, 1996 2011 • National Tourism Sector Strategy (NTSS) 2013 • National Developm ent Plan 2014 • Tourism Act, 2014 (Act No 3

• f 2014).

2015 • Tourism Codes of Good Practice

• n Broad

Based Black Economic Empower ment (Amended Tourism B- BBEE Sector Code) 2017 • National Tourism Sector Strategy (revised from 2011) 2018 • National Grading System for Tourism 2019 • Tourism Draft Bill

• pen for

public comments 2019 • Reimagine d Industrial Policy cites Tourism as

• ne of ten

key priority areas

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By 2030 to 1) Eliminate income poverty – Reduce the proportion of households with a monthly income below R419 per person (in 2009 prices) from 39 percent to zero and 2) Reduce inequality –The Gini coefficient should fall from 0.69 to 0.6. Increasing exports

• Focusing on those areas

where South Africa already has endowments and comparative advantage, such as mining, construction, mid- skill manufacturing, agriculture and agro- processing, higher education, tourism and business services. Regional economic integration

• Can boost economic growth

in all countries in southern

• Africa. The region has grown

rapidly over the past decade, with strong performances in minerals, agriculture, telecommunications and tourism. An inclusive and integrated rural economy

• Developing industries such

as agroprocessing, tourism, fisheries and small enterprises where potential

• exists. Rural economies will

be activated through improved infrastructure and service delivery, a review of land tenure, service to small and micro farmers, a review

• f mining industry

commitments to social investment, and tourism investments

The National Development Plan and T

• urism

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The National T

• urism Sector

Strategy (NTSS) - Overarching goal and five strategic pillars

Inclusive and Quality Growth

• f the

South African T

• urism

Economy

• Effective Marketing
• Facilitating Ease of Access
• The

Visitor Experience

• Destination Management
• Broad Based Benefits

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Pillar 1: Effective Marketing

• Winning campaigns to attract international and domestic tourists
• Improve market and segment prioritisation
• Enhance effectiveness of international marketing
• Expand and improve domestic marketing activities and travel facilitation programmes
• Establish effective brand management of the South African Tourism brand
• Hosting of events to improve seasonal and regional spread of tourism benefits.

Pillar 2: Facilitating Ease of Access

• Removing barriers that limit the ability of potential international tourists to travel to South Africa
• Facilitate increased travel through the application of a tourist friendly visa regime and automated passenger

movement and monitoring systems

• Improve airlift access, particularly for priority markets

Pillar 3: The Visitor Experience

• Enhancements to all elements of the visitor experience
• Upgrade experiences at World Heritage Sites
• Enhance local destinations through cleanliness, aesthetics, and information improvements
• Provide tourism experiences and facilities that cater for domestic market segments
• Increase bandwidth to support tourism
• Enhance tourist safety and support
• Facilitate tourist travel through improved private and public transport for tourists
• Improve tourism skills and service excellence

Pillar 4: Destination Management

• Activities and relationships critical to destination competitiveness
• Improve the focus and delivery of tourism marketing and development support provided by provinces and local

government.

• Improve the quality of decision making, planning evaluation and monitoring in tourism
• Improve understanding of and enhance support for tourism across national government departments
• Introduce best practice approaches and risk management tools to enhance industry’s performance

Pillar 5 – Broad Based Benefits

• Strengthen the realisation of broad based benefits from tourism
• Achieve Broad Based Black Economic Empowerment (B-BBEE) targets
• Support sustainable Enterprise development
• Expand benefits of tourism to rural areas

Overarching goal and five strategic pillars

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Projected contribution of tourism to job creation and employment

PROJECTED CONTRIBUTION OF TOURISM TO GDP GROWTH AND EMPLOYMENT Total contribution to GDP 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Rand value in bn (Nominal prices) 425.531 457.484 489.908 528.43 571.309 621.251 674.641 732.218 795.394 866.46 943.137 1030.27 Rand value in bn (Real prices) 425.532 441.104 451.749 464.13 477.845 494.822 511.687 528.876 547.164 567.665 588.474 612.226 Percentage growth

• 1.69556

3.65957 2.41327 2.74068 2.95491 3.55276 3.40843 3.35929 3.45787 3.74683 3.66573 4.03609 Percentage of GDP 8.6046 8.74981 8.76497 8.7762 8.80768 8.89194 8.96628 9.04217 9.1408 9.27569 9.41307 9.59726 Direct contribution to GDP 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Rand value in bn (Nominal prices) 139.001 150.7 162.196 175.386 189.808 206.687 224.551 243.416 263.73 286.445 310.608 338.026 Rand value in bn (Real prices) 139.001 145.305 149.563 154.045 158.756 164.624 170.312 175.818 181.424 187.666 193.805 200.869 Percentage growth

• 1.85965

4.53496 2.93053 2.99691 3.05803 3.69668 3.45501 3.23244 3.18875 3.44041 3.27161 3.64474 Percentage of GDP 2.81072 2.88228 2.90186 2.91282 2.9262 2.9583 2.98438 3.00594 3.03083 3.06647 3.10005 3.14882 Direct contribution to employment 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Thousands of jobs 687.296 709.211 726.46 743.589 762.412 786.597 808.891 829.417 850.321 872.368 892.77 917.933 % share of total employment 4.20909 4.32482 4.36259 4.3897 4.42095 4.48178 4.53327 4.57754 4.62718 4.69249 4.75424 4.83975 % growth

• 1.66101

3.18853 2.43223 2.35782 2.53143 3.17215 2.83423 2.53754 2.52032 2.59281 2.33873 2.81845 The current targets are based on forecasts by the World Travel and Tourism Council (WTTC, 2019) which provides macro-economic forecasts on a 10 year basis.

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The right time for tourism

National Tourism Sector Strategy (NTSS) Public Private Growth Initiative (PPGI) ESEID Cluster – industrial strategy for inclusive growth

Phase 1-3: Sector profile

• Baseline Data
• Spatial profile of full

value-chain

• Global Industry

Review & Comparator Economy Analysis

• SWOT or similar

analytical tool

• The sector has many sources of

data i.e. StatsSA, WTTC and

• ther research reports
• Needs some further work
• Some work (WEF, OECD,

UNWTO), but need further input (e.g., Chile, Vietnam, Turkey)

• Best practice (e.g., Australia, Japan,

etc.)

• Good NTSS basis, needs an

update

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Introduction - Proposed Governance Structures

Executive Oversight Committee (EOC)

• The Executive Oversight Committee is the highest decision making
• body. The EOC is Chaired by the Minister of Tourism and has a total of

eight members, two each from communities, organized labour, business and government Tourism Sector Masterplan Working Group and Industry Reference Group (IRG)

• Ensures that findings and emerging recommendations are tested with

the sector and value-chain on an incremental, phased basis. Essentially the membership of both the Tourism Sector Masterplan Working Group and the Industry Reference Group is the same list of representatives from Business, Government, Labour, research, support and industry associations. It was therefore agreed that these two groups are combined. It has also been suggested that this committee be co-chaired by Government and Business at a DG and CEO level. Technical Working Group

• This is the team/resources working on this project on a daily basis. At

this stage, no external service provider will be appointed. The tourism masterplan will be drafted by a technical team from the Department of Tourism, South African Tourism and the Tourism Business Council of South Africa

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T

• urism Game Changers – Priority Areas
• Transformation: Implementation of the BBBEE codes
• Whole of Government Approach to Tourism
• (Responsible tourism and skills development are guiding principles)
• Digital economy

Priority 1: Urgent matters for resolution

• Travel facilitation
• Tourism safety and support
• Rebranding of South Africa

Priority 2: Revolutionise Domestic Tourism

• Development of a Budget Resort Brand
• Packaging and pricing of products for

affordability

• Domestic Tourism Scheme
• National Visitor Membership and Information

Management Systems

• Utilising events to drive domestic tourism

growth

• Improved marketing

Priority 3: Drive International Tourism Growth:  Sustain and improve marketing for current key source markets  Targeted marketing strategies for key growth markets (India, China and key markets on the African continent) Priority 4: Tourism Infrastructure Investment Plan:

• Investment Pipeline
• Refurbishment,

Enhancement and Maintenance

• Incentives
• Tourism Transport Plan

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Priority 1: Urgent matters for resolution

Key Priority Areas Key actions Travel facilitation:  Simplification of visa requirements in key markets (India, China, Nigeria and

• ther African Countries)

 Migration to E-visa system  Recognition of visas from e.g. USA Reconsideration of which countries require visas Tourism Safety and Support  Develop a comprehensive plan which details tourism safety and support networks and responses and communication plan Rebranding of South Africa  Clear brand values and branding guidelines made available to all stakeholders  Confirm and implement brand management protocol including specific crisis protocol. This protocol will determine how pro-active branding and speedy responses required in order to manage unexpected negative perceptions.

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Priority 2: Revolutionise Domestic T

• urism

Key Priority Areas Key actions Development

• f

a Budget Resort Brand  Develop Brand and Ownership Models  Develop product  Enable market access Packaging and pricing

• f

products for affordability  Private sector to examine pricing and packaging to make travel more affordable for all LSMs.  Piloting/testing with schools’ sports and sport bodies in partnership with the private sector  Explore staggered school terms to address seasonality challenges Domestic Tourism Scheme  Pilot Partnerships with Sports Federations and Schools  Expand domestic tourism schemes into a voucher system and tiered loyalty programme National Visitor Membership and Information Management Systems  Implement a national membership system which builds tourism from a local level upwards and provides quality assurance of products and supports SMME growth and development  Visitor Information Platform and membership  SMME Booking tool (that will enable transactions  Development of a data hub to enable improved planning and strategy development for the sector (mining of data) Utilising events to drive domestic tourism growth  Development of a national event strategy and plan that leverages on current and creates new events to drive domestic tourism growth  Pilot through partnerships (e.g. with Sports Federations ) Improved marketing  South African Tourism (SA Tourism) and private sector to develop domestic marketing strategy to support above

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Priority 3: Drive international market growth Priority 4: T

• urism infrastructure

investment plan

Key Priority Areas Key actions 3.Drive International market growth  Improved marketing  Targeted marketing strategies for India, China and key markets on the African continent 4.Tourism Infrastructure Investment Plan  Investment Pipeline  Refurbishment, Enhancement and Maintenance  Incentives

Tourism Transport Plan  Develop a comprehensive tourism and transport plan that addresses the transport needs to support tourism growth. This includes defining a set of national priorities for aviation, road, rail, marine and intermodal transport.  Specifically, for airlift issues related to funding airlift initiatives, incentivisation

• f airlines and partnership in Air Access Initiatives (particularly in Gauteng)

need to be addressed.  Pilot the Gauteng Tourism and Transport Plan

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Progress on Monthly Milestones for the development of the T

• urism Masterplan

July 2019 - Confirm the targets and priority areas of the tourism masterplan with public and private sector partners August 2019 - Commence consultations with public sector partners on agreements for MTSF commitments to enable an integrated government approach to tourism September 2019 - Finalise an initial list of geographically referenced priority projects with public sector partners October 2019 - Draft detailed project plans (including costing) for each priority area within the tourism masterplan November 2019 - Consultation

• n detailed project plans for

each priority area within the tourism masterplan December 2019 - Finalise detailed project plans for each priority area within the tourism masterplan January – March 2020 Consultations with public and private sector partners on draft agreements April 2020 - Finalise agreements with the private sector and commence implementation May 2020 - Signing of social compact (to coincide with the Africa Travel Indaba)

   KEY: ON TRACK BEHIND SCHEDULE SEVERELY DELAYED    

Important dates

DATE ACTIVITY/DELIVERABLE 27-29 November 2019 Joint sector planning session (private and public) Early December 2019 (TBC) Technical Masterplan session Early December 2019 (TBC) Steercom Masterplan session 15 December 2019 Draft tourism masterplan Early January 2020 (TBC) Inaugural Tourism EOC January 2020 – May 2020 Initial detailed plans run concurrently with consultation sessions 30 June 2020 Completed masterplans and signed social compact 01 July 2020-onwards Progressive implementation 24

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Next Steps

• Development of detailed plans and the Masterplan for the

sector

• Agreement on the roles and responsibilities between the

public and private sector

• Implementation