Mr Marc CorcoranTourism Business Council of South Africa

CSIR, Pretoria17 September 2014

National Tourism Stakeholder ForumPrivate Sector Perspective of Progress

Table of Contents

1. State of the Industry – Private Sector Perspective 2. NTSS Progress Report3. Market Opportunities 4. Conclusion

State of the Industry: Global Latest reports from UNWTO show that international tourist arrivals have increased by 4.6% in the first half of the year globally

Travel & Tourism’s direct contribution to GDP is forecast to grow at 3.1%, continuing the trend of out-performing the wider economy, which is set to grow at 2.4% in 2014.

State of the Industry: Regional The GDP forecast for Africa in 2014 remains unchanged at 4.9%

Our continent’s international arrivals also grew by 3% in the first half of the year 2014. The Ebola outbreak can jeopardize this growth in the second half of the year

There is a belief that stronger tourism branding and Africa’s image can be enhanced to double its international tourist arrivals by 2030.

State of the Industry: Local Local industry remains resilient but prone to domestic economic risks and externalities

Q1 2014 TBI is slightly down compared to the Q1 2013

TBCSA membership growth in the past half of the year – new members onboard (SACA and BON Hotels)

TOMSA levy collector base remains stagnant even though tourism levies collected continue to grow annually

Progress Report: CLUSTER 1 Research, Information & Knowledge TBI remains private sector’s main tool to measure performance

TBCSA and SAT are putting together a Tourism Dashboard planned to be launched in September 2014. South African Tourism to give an update

TBCSA and TEP to work together to populate content on wiki-tourism

Progress Report: CLUSTER 1 Policy and Legislative Framework B-BBEE: Sub-committee formed by TBCSA to prepare for TECSA engagement and comment on proposed Tourism scorecard. Concerns about the engagement process remain. New Travel Regulations – Decision by DHA, after active engagement by TBCSA with DHA, to defer the requirement to carry unabridged certificates when travelling abroad with children under the age of 18 is most welcome. A joint task team between DHA and TBCSA has been formed to engage further on regulations. ASATA, FEDHASA and SAVRALA engaging with Treasury to address travel spend concerns.

Progress Report: CLUSTER 1 Policy and Legislative Framework Challenges business face:

Policy changes - industry has limited capacity to respond to the many regulatory and policy changes which require comment. SARS accessing company bank accounts and delays in returning payments that were incorrectly retrieved Vehicle licensing and permit issues – inconsistency of application in provinces and enforcementProposed introduction of the KwaZulu Natal 10% Hospitality levy in 2015. Task team formed in KZN with TBCSA and SATSA

PENDING LEGISLATIVE AWARENESS??

Progress Report: CLUSTER 1 Collaborative Partnerships NDT and TBCSA – ongoing partnership Hosting of Tourism Leadership Dialogues Hosting of the Tourism Public Lecture at UNISATo host the inaugural Women in Tourism Conference taking place on the 08-09 October 2014

Maintain close relations with counterparts in the region (RETOSA) and with WTTC at an international level

Progress Report: CLUSTER 2.1 Marketing and Brand Management TOMSA levy collections by private sector contribute to destination marketing ; since inception to date – over R1billion has been collected and paid over to SA Tourism. MOU under review Business uploading deals on shotleft website to encourage domestic travel Tour operators and wholesalers are encouraged to tailor packages to different segments such as stockvels, school groups, couples etc  PHASA to meet with SA Tourism CEO to discuss SA as a hunting destination

 

Progress Report: CLUSTER 2.1 Domestic and Regional Tourism Industry committed to working closely with Government to address issues such as product pricing, packaging, seasonality and geographic spread Visa issues continue to negatively impact on both business and leisure trade – particularly affecting India, China, UK and Nigeria. Government intervention required. Business Events TBCSA committed to supporting Tourism Indaba. SAACI hosted annual conference at St Lucia

Progress Report: CLUSTER 2.2 Relevant Capacity Building FEDHASA currently working on a business plan for a Youth programme to be launched in 2015

Niche – product development and Rural Tourism SATSA collaborating with NDT to develop regulations for the adventure tourism sector AHI has formed a new awards programme “Polish the Countryside”

 

Progress Report: CLUSTER 2.2 Product Information AHI is currently working together with local Chambers of Commerce to train information centre staff across the country; Project started in in Mpumalanga in 2013Responsible Tourism FTT, NAA-SA and FEDHASA have been leading private sector’s activities in this areaFTT partnered with TEP in supporting tourism enterprises to prepare and apply for certification

 

Progress Report: CLUSTER 2.2 Investment Promotion HICA (Hotel Investment Conference), held at Maslow Hotel on 14-16 September remains private sector’s main vehicle for investment promotionQuality Assurance Serious concerns with current grading system. Industry awaits revised strategy presented to SA Tourism board Lekgotla in August 2014.(nb:Govt policy to only use graded accommodation?) Tourism and Hospitality chambers within CATHSSETA reviewed the curriculum. The document was open for public comments

Progress Report: CLUSTER 3 Transformation EXSA – TBCSA member released the state of transformation for the exhibition and events sector and identified areas that need improvement. TBCSA to request other sector associations to put together a similar document – to measure progress in transformation of each sectorService Excellence Business continues to offer in-house training programmes to improve service levelsNDT and TBCSA completed a pilot project in Upington. Media event to celebrate the success of the project took place on the 04th September 2014

Progress Report: CLUSTER 4 General tourism awareness amongst South AfricansPrivate sector is positively contributing to the domestic marketing campaign by putting together affordable packages

Safety & Security TSI – currently implemented in partnership with Gauteng Tourism Authority. It is intended that TSI be embraced by NDT and all provinces.

Progress Report: CLUSTER 4 Ground Transportation DoT – National Land Transport Act (NLTA) presented for review at NEDLAC with partners. Not previously discussed at NTSS

SABOA - vehicle licence fees differ from province to province with significant differences. Uniform licence fee for buses and coaches in all provinces is encouraged.

Bad road conditions increase maintenance cost of buses & coaches. Roads to tourism key points needs focus

Progress Report: CLUSTER 4 Airlift DoT is leading the review of the 2006 Airlift Strategy. Focus on further liberalisation of air transport services for SA

Domestic airlines

FlySafair – due to commence operations in October 2014

Skywise – now unlikely to start operating in the short term

Fastjet – still interested in operating domestic services and may begin operations by the end of 2014

Market Opportunities Universal Accessibility – tapping into the market of people with disabilities Climate Change – embracing the green economy Land Claims – speedy resolution Transformation & Empowerment – broadening economic participation of all citizens Growing middle-class across emerging markets – in Africa and BRICS countries Domestic market – entrenching a culture of local leisure travel Youth – a reservoir of talent

Conclusion Tourism in SA continues to develop but remains vulnerable to both domestic (eg: legislation, economy) and external factors (eg: terrorism, ebola) TBCSA members remain resource challenged to effectively address the multitude of legislation requiring response NTSS review welcome to ensure efforts can be more focused and expectations of respective stakeholders clarified TBCSA to consider developing direct relationships with several other key Government Depts; eg Home Affairs, Transport , Finance, Trade and Industry TBCSA committed to a successful tourism industry

THANK YOU