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DEAT PRESENTATION ON TOURISM DEVELOPMENT

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Title: DEAT PRESENTATION ON TOURISM DEVELOPMENT


1
DEAT PRESENTATION ON TOURISM DEVELOPMENT
  • Lisa-Ann Hosking Chief Director Tourism
    Development

2
CONTENT
  • Background
  • Tourism Enterprise Programme
  • Tourism Investment Promotion
  • Implementation of the Tourism BEE Charter

3
Tourism has been identified as an immediate
priority sector within the Accelerated and Shared
Growth Initiative (ASGIS-SA) Government has
therefore set a Clear Agenda for Tourism
The Tourism Act aims to achieve ...
Sustainable GDP Growth
Sustainable job creation
Redistribution and transformation
. . . through six key objectives . . .
Increase in tourist volume
Increase in tourist spend
Increase length of stay
Improve geographic spread
Improve seasonality patterns
Promote transformation
4
The growth in the past 11 years was exceptional
with tourism increasing by more than 100 since
1994 to close at 7,4 million in 2005.
Tourism grew rapidly between 1994 and 1998 at a
rate of 11.8. We consolidated our performance
between 1998 and 2001 and then grew by 6.2 from
2001 to 2005.
Foreign Tourist Arrivals to South Africa (1998 -
2005)
101 growth
CAGR 1994 2005 6.5 1994 1998
11.8 1998 2001 0.3 1998 2005
3.7 2001 2005 6.2
Source SAT tourist arrivals 2005
5
Domestic Tourism
  • 14,7 adults traveled within the Country in 2005,
    resulting in 36,2 million domestic trips
  • Total domestic spend amounted to RF21,2 billion

6
Overview of Tourism Trends
  • Tourism is therefore expected to deliver
    significant value to the country in the form of
  • Increased contribution to GDP
  • Creation of sustainable employment
  • Economic transformation and expansion

7
GOAL
Create conditions for sustainable tourism growth
and development for the benefit of all South
Africans
8
CONTENT
  • Background
  • Tourism Enterprise Programme
  • Tourism Investment Promotion
  • Implementation of the Tourism BEE Charter

9
Tourism SMME Development
  • Main Aim
  • Encourage and facilitate
  • the growth and expansion of small, medium and
    micro-enterprises (SMMEs)
  • Job Creation
  • Income generation opportunities

10
TEP assists SMMEs to
  • MARKET THEMSELVES (exhibitions, marketing trips,
    brochures, web sites, routes, linkages with
    partners such as hotels)
  • DEVELOP THEIR SKILLS (customised and generic
    training at different levels)
  • OBTAIN FINANCE (business plans and feasibility
    studies)

11
Tourism SMME Development
  • During the first six years of operation, TEP
    assisted more than 3400 SMMEs to grow their
    revenues by more than R2,4 billion collectively
    and creating more than 32 275 job opportunities
    in the process. More than 3000 people have
    attended courses to date.
  • A diverse range of SMMEs are supported
  • Direct Accommodation (BBs, home stays,
    guesthouses, hotels etc), tour operators, travel
    agents, guides, restaurants, craft enterprises.
  • Rural and urban, community based, big and small
  • Indirect providers of goods and services to the
    industry
  • TEP works at grassroots level (66 of SMMEs
    assisted are micro/ less than 5 employees.
    Business Development consultants in each province
  • 2006/07 Financial Year 1683 SMMEs were trained,
    6525 jobs were created, 368 transactions were
    facilitated, of which 225 were BEE (61)

12
WHAT DOES TEP DO?
Training and Technical Assistance Fund
  • Business Linkages
  • Non-Financial Assistance
  • Business Plans
  • Feasibility Studies
  • Grading Assistance
  • Association Memberships
  • Training aimed at needs
  • Marketing Assistance
  • Tendering for Government and Other Contracts
  • Other Appropriate Capacity Building Support
  • Facilitating Business Linkages
  • Advice and Information based on Long Term
    Relationships and Trust developed over time

13
Other TEP Initiatives
  • Training for Tourism SMMEs and Trainers
  • Courses developed in Tourism Awareness, Finance,
    Human Resource Development, Marketing and
    Exhibition Readiness
  • HIV/ AIDS Workplace Programmes for Tourism SMMEs
  • World Cup Host City Programme to ensure that
    SMMEs are ready to take up the opportunities
    presented by 2010
  • Events and Trade Shows
  • Implementation of the Tourism BEE Charter

14
TEP Training Initiative
  • The mandate of the TEP training department is to
    deliver tourism training to SMMEs in all
    provinces
  • Limited human resources, therefore the
    establishment of collaborative partnerships
    between the Training Department, local
    municipalities, district municipalities,
    provincial tourism authorities and provincial
    tourism departments
  • In the private sector the training department is
    collaborating with the International Hotel School
    and the Akani Hotel Group

15
Objective of the Training Initiative
  • Increase the number of successful SMMEs within
    the industry
  • Increase their profitability through skills
    improvement
  • Enable and facilitate transformation within the
    industry
  • Capacitate tourism enterprises to operate legally
  • Enable SMMEs to access markets
  • Facilitate job creation within the industry
  • Build capacity of existing trainers and service
    providers

16
THE DEVELOPMENT OF THE TEP TOOLKITS
  • To address this gap in the market and to ensure
    broad outreach,
  • TEP developed a number of practical toolkits
    to guide tourism
  • SMMEs through various practical processes.
    These included
  • - LEGAL TOOLKIT
  • - BUSINESS PLAN TOOLKIT, and
  • - WEBSITE TOOLKIT
  • A LETS DO BUSINESS Toolkit on how to access TEP
    more
  • effectively was also produced.

17
THE DEVELOPMENT OF THE TEP TOOLKITS
  • Based on a workshop held with tourism
    stakeholders TEP has identified five further
    toolkits that will benefit tourism SMMEs. viz
  • - Tourism Channel Toolkit
  • - Quality Assurance Toolkit
  • - Communications
  • - Business Administration
  • - Go-2-Market (Market Access/Marketing Strategy)
    Toolkit
  • Translation into IsiZulu, IsiXhosa, Afrikaans
    and South SeSotho)
  • ABET Graded
  • 240 000 Toolkits to be distributed

18
TEP 2010 HOST CITY PROGRAMME
  • SMME Product Audits in 16 areas
  • A tool to unveil the state of emerging tourism
    product.
  • Objectives
  • To establish destination and product strengths
    and weaknesses
  • To identify possible gaps in the areas current
    strategies
  • The state of the tourism industry in the area
    in terms of product compliance with respect
    to business registration, company insurance,
    health and safety policies, ineffective
    marketing, lack of market access, skills,
    infrastructure and lack of information, the need
    for financial assistance and poor product
    quality.
  • The TEP interventions required

19
TEP 2010 HOST CITY PROGRAMME
  • The 2010 Host Cities/Regions are as follows
  •  
  • Bloemfontein
  • Cape Town
  • Durban
  • Johannesburg
  • Nelspruit
  • Polokwane
  • Port Elizabeth
  • Rustenburg
  • Tshwane
  • and selected satellite communities relevant to
    above cities
  • The GCP areas are as follows
  •  
  • East London
  • Elephant Coast
  • Panorama Region
  • Central Limpopo and
  • Pilanesberg, Madikwe, Mafikeng

20
EVENTS AND TRADESHOWS
  • 2006/07 197 SMMEs were supported to attend
    Indaba 2006, 25 were supported to attend the
    Jazz African Heritage (JAH) Festival in the
    North West Province in February 2007, and 9
    were supported to attend Internationale
    Tourismusbörse Berlin (ITB) in March 2007.
  • ETEYA Organising and funding a 3-day workshop
    for the 9 provincial finalists before they go to
    World Travel Market (WTM). Last year the
    workshop was held on the 9-11 October 2006. The
    subjects covered included
  • - Branding Principles
  • - SA Host Training
  • - World Travel Market overview
  • - The tourism channel, rates and discounting
  • - Presentation by ETEYA winner, Mr Bernard
    Marobe (Mankwe Safaris)
  • - TEP, Going International training course

21
CRITERIA FOR ASSISTANCE
  • SMME
  • HDI/HDE (preferable)
  • Eligible transactions
  • Legal entity
  • Monthly reporting

22
CONTENT
  • Background
  • Tourism Enterprise Programme
  • Tourism Investment Promotion
  • Implementation of the Tourism BEE Charter

23
TOURISM INVESTMENT PROMOTION
  • South Africas Tourism Competitive Advantages
  • Macroeconomic stability World class
    infrastructure
  • Growing domestic tourism economy
  • Gateway to Africa
  • Strong tourist growth performance since 94
  • Diverse cultures and heritage
  • Natural wealth and biodiversity
  • Developed tourism products and services
  • Value for money destination with great year-round
    weather!

24
TOURISM INVESTMENT PROMOTION
  • National Portfolio of Investment Projects
  • Projects identified by provincial investment
    agencies.
  • From private sector sponsored, to community and
    government driven.
  • From resorts, to wine estates, diving facilities,
    eco-tourism, cultural tourism, accommodation,
    etc.
  • Investment sought from R1 million to over R200
    million
  • Projects range from in planning stages, to
    under development
  • Example Thabane Tourism Project
  • Development of a community owned game farm with
    an upmarket tented camp and a traditional Tswana
    village in the Cultural Heartland tourism region
    of Mpumalanga

25
CONTENT
  • Background
  • Tourism Enterprise Programme
  • Tourism Investment Promotion
  • Implementation of the Tourism BEE Charter

26
TOURISM BEE CHARTER
  • Charter and Score developed to promote
    transformation in the tourism industry
  • BEE Charter Council in place
  • Tools to assist businesses to comply in place
    (both Public and Private Sector)
  • Regular familiarisation workshops
  • Alignment of the Charter and the Codes of Good
    Practice

27
THANK YOU
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