Members of the Extended Public Committee met in Committee Room E249 at 14:02.
House Chairperson Mr M B Skosana, as Chairperson, took the Chair and requested members to observe a moment of silence for prayers or meditation.
The MINISTER OF TOURISM: Chairperson, today, with the World Cup a mere 37 days away, I can say with the utmost confidence that not only is South Africa ready to welcome the world, but we cannot wait to host the best World Cup ever. I can say this because I believe that every South African will, as we have done in the past when we have been presented with great opportunities, make the most of this chance to proudly show off our country, our facilities, our culture and our hospitality to the world.
Our future is in the most capable hands we could possibly entrust it to. It is in the hands of all South Africans, united in our effort to show the world the best that we can be. The tourism legacy of the World Cup presents us with a particular opportunity to put our industry on a new trajectory in terms of expansion and growth.
Tourism, both globally and locally, is a powerful catalyst for economic growth, job creation and the redistribution of wealth. Globally, the number of international arrivals grew from about 25 million in 1950 to an estimated 880 million in 2009. This is an industry which not only has direct economic benefits, but also opens up opportunities for small businesses. It has a particularly strong local impact in terms of the provision of goods and services and it also contributes directly to job creation and poverty reduction.
In addition, tourism is one of the major export sectors of poor countries and a leading source of foreign exchange in 46 of the 49 least developed countries. According to the United Nations World Tourism Organisation, UNWTO, in 2009 international tourist arrivals declined in all regions of the world except Africa, which bucked the trend with robust growth of 5,1%. Sub-Saharan regions did particularly well and collectively grew by 6,4%.
Although there are many reasons to be cautiously optimistic about the international picture, we must also keep in mind the risks to the industry. This includes that some of South Africa's main source markets in terms of international arrivals, such as the United Kingdom and Europe, are recovering quite slowly. Recent global incidents, such as the H1N1 virus and the Icelandic volcanic eruption, have again highlighted the vulnerability of the sector in terms of external shocks.
Our local tourism industry outperformed the world trends last year and we saw growth in foreign arrivals of 3,6%, while globally the figure was -4%. That resulted in a total of more than 9,9 million foreign arrivals to the country compared to about 9,6 million in 2008. The total foreign direct spend in 2009 grew by 7%, compared to 2008, totalling R79,4 billion. This is a tremendous feather in the cap of the industry at a time when all other tourism markets worldwide were in a slump, and we continue to outperform all our direct competitors.
Arrivals to South Africa were driven by healthy growth from, amongst other countries, Asia, with a 3,7% increase, African air markets with a 3,3% increase, and African land markets with 5,7% growth. The particularly good growth from China - although it is from a relatively low base - with a 12,4% increase and India with a 7,5% increase, is considered a good return on South African tourism's investment in these markets. I know that there will be issues raised and questions asked and I will respond to them when I reply.
Our mandate to South African Tourism is to invest our money with only one objective in mind, and that is the best possible return on our investment as government - no political decisions, no other kinds of decisions - we want the best return on our money as government.
South African Tourism has recently completed its third review of its portfolio markets and the results point to, amongst other things, significant potential in Africa, particularly in Angola and Nigeria. South African Tourism's international marketing plans will be adjusted accordingly, to make sure that we capitalise on this potential and further extend our good relationships in Africa. Many people historically did not regard Africa as a good tourism market. In our view it is, and we must start focusing on those countries where, at the moment, we have the most potential.
In terms of the local picture, the number of South African adults who undertook domestic trips increased from about 14 million in 2008 to about 15 million last year. This represents about 48% of the population undertaking an average of 2,1% domestic trips in 2009. The number of trips taken, however, fell from about 33 million in 2008 to 30 million in 2009. The average nominal spend per trip also declined from R780 in 2008 to R730 in 2009 as consumers tightened their belts. This is a continuation of a trend that started in 2007 as a result, obviously, of economic pressure on consumers.
Given the volatility of the international market, it is, of course, vital that every country fosters a healthy domestic tourism industry, and this is one of the aspects of our industry we will address in the Tourism Sector Strategy. According to the World Travel and Tourism Council - WTTC - estimates for 2009, tourism's direct and indirect contribution to our GDP grew by 2,7% to R198,4 billion compared to the previous year, 2008. This represents 7,4% of GDP.
This kind of continued and consistent growth can be seen as a resounding vote of confidence not only in our tourism industry but in South Africa as a destination. I have no doubt that our reputation as a world-class destination will be further entrenched after the World Cup.
The World Cup will leave a tangible and lasting tourism legacy in South Africa. We are able to showcase major investments in infrastructure in terms of hotels, transport links, airports, stadia and facilities - and if there are any questions in that regard I will respond to them when I reply. Our industry will also benefit from powerful word-of-mouth marketing through hundreds of thousands of visitors who will return home as ambassadors and advocates for South Africa as an extraordinary tourism destination.
When the first soccer match of the World Cup kicks off in South Africa on 11 June, it will be the culmination of years of dedicated effort, planning and commitment. Long after the final whistle has blown at the last match, we will continue to reap the rewards of investments in this tournament, which has catalysed huge developments.
The World Cup will showcase South Africa and the continent to the world, optimise tourism and other developmental opportunities, promote football, and foster pride and confidence in Africa as a continent. According to our analysis, for that month - 11 June to 11 July - the World Cup will be watched cumulatively by 34 billion people worldwide. If you combine these elements with South Africa's breathtaking natural beauty, then we have all the ingredients for a powerful tourism and investment destination.
While we are all working nonstop to put the finishing touches on the best World Cup ever, we have also never seen the World Cup as the be-all and end-all. We acknowledge that tourism to and within South Africa has grown significantly since 1994, but we also recognise that it has not yet reached its full potential. There is concurrence that new opportunities need to be explored and, in this regard, we will pursue the development of new niche products. The diversification of our product base is part of the strategy to ensure that our visitors stay longer and, very importantly, that they spend more.
To ensure that there is an integrated and co-ordinated approach to securing the hosting rights for strategic international events, we intend to boost events tourism through the establishment of a National Conventions Bureau under the auspices of SA Tourism. It will be responsible for business and events-tourism marketing and the development of and support for bids, as well as a business tourism and events strategy.
South Africa has already secured 95 meetings and conferences between 2010 and 2016. In addition to this, we have already also put in bids for an additional 45 meetings and conferences for 2011 to 2020. With some of these conferences we are talking about 10 000 to 15 000 delegates. We have seen how sporting and other mega-events lift our nation's spirits and inspire us to be our best.
Sports tourism in South Africa is estimated to contribute more than R6 billion to our tourism industry. More than 10% of foreign tourists come to South Africa to watch or participate in sports events, with spectators accounting for 60% to 80% of these arrivals.
I can give you a very practical example of the effect of events and sports tourism on our fiscus. Research recently undertaken by SA Tourism on the impact of the Confederations Cup and the Lions Rugby Tour last year, found that the two events brought in approximately 52 000 visitors and contributed an estimated R669 million in direct expenditure to our economy. More than 90% of these visitors indicated that they would return to South Africa and, very importantly, that they would recommend South Africa as a destination to others.
Our department is finalising the national tourism strategy. The goal of this strategy is, amongst other things, to inspire and accelerate the responsible growth of the tourism industry in the years 2010 to 2015. So, it is basically a five-year booster plan. We will be ready to launch this strategy for public comment before the end of May.
In order to create an environment conducive to the growth and development of tourism in our country, the department has also embarked on a process to review and update the existing Tourism Act of 1993, which was only amended in 1993, and this piece of legislation comes from the 60s or 70s. The proposed legislation will be tabled in Parliament during the last quarter of 2010, and I look forward to working closely with the portfolio committee in that regard.
Chairperson, I would like to thank all our colleagues in the department, under the capable leadership of the Acting Director-General Mr Dirk van Schalkwyk, for their hard work. I look forward to continuing to work with him as our very capable chief operating officer.
I would also like to take this opportunity to welcome Mr Kingsley Makhubela, who was appointed by Cabinet two weeks ago as our new director-general, and who will assume this position on 1 June. [Applause.] Mr Makhubela, we look forward to your leadership as you steer our department on an exciting new course.
Thank you to SA Tourism, which continues to market our wonderful South African destination so ably. I've already welcomed Thandiwe January-McLean in the front here - she is the new chief executive officer of South African Tourism. She already appeared before the portfolio committee a few weeks ago.
I would also like to express my appreciation to all our partners and stakeholders in the tourism industry - and there are many of them. We have been called upon to work together very closely over the past year, and I trust that these good relationships will thrive and serve us well into the future.
Thank you also, on behalf of our department, to the chairperson and members of our portfolio committee for their constructive interaction and inputs. My gratitude goes to my colleague, here on my right, my Deputy Minister Ms Thokozile Xasa, for her enthusiasm and passion for the portfolio, and I enjoy working with her as my colleague. [Applause.
Chairperson, the slogan of the World Cup as we all know is: "Ke Nako", meaning "It is time". I am grateful and proud to be a South African as we confidently welcome the world to our shores. We have made it happen; we have done ourselves proud; and we can now say that with just over 30 days left we are ready as a country. I thank you. [Applause.
Mr D M GUMEDE: Hon Chairperson, hon Minister, hon Deputy Minister and all esteemed guests, it is indeed time for tourism to make a difference.
Ke nako! [It is time!
Improve the quality of life of all citizens and free the potential of each person...
These are fundamental principles and values for our society going forward. They form our social contract as South Africans, black and white. This is what mainly informs the mandate of the present government that emphasises five priority areas, namely inclusive economic growth; rural development; decent work and more sustainable livelihoods; education and training; health for all; and the fight against crime and corruption. This has been reaffirmed in the state of the nation address and by the January 8 statement of the ANC that sets the tone for its government planning every year.
These are essentially an amplification of the fundamentals in our Constitution quoted above. It is the main part of our national operational mandate, which has to be overseen by Parliament. For our oversight, we look at the annual estimates of expenditure, which is informed by a strategic plan that instructs the formulation of the core of the budget.
The outputs for this should be expected to be in the annual report, and these documents, together with hearings from time to time and briefings, allow us to oversee the performance of the department. We expect more hotels, lodges, bed and breakfast establishments, restaurants, tourist guides, operators, small businesses, more demand for tourist graduates, and a higher contribution to job creation in the economic sector especially because this sector, is labour-intensive, absorbing even those who are semi-skilled and unskilled.
The priorities, as pronounced by government, also require that we get a sense as to whether we are making progress in the rural areas, in training or in inclusive growth, taking into account the skewed tourism spread and the level of transformation in this terrain of operation.
We depend on milestones and quantified progress in the accommodation-related tourism sector, the hospitality sector and the travel sector. This is the information that we require in order to pronounce fairly on the performance of government in the industry.
This is what informs our position as a portfolio committee on the budget in question, whose overarching aim is to promote growth and development that is competitive, equitable and sustainable in the tourism sector, and thus contribute to the national priorities.
For South African tourism to thrive optimally, the country has to be safe, its people need to be healthy, it has to have growth that is inclusive and equitable, and that is spread fairly evenly over all provinces - those that are mainly urban and those that are largely rural.
There are countries that have traditionally had a large number of tourists coming to South Africa, and it is important to consolidate and expand our current position in that regard. But, at the same time, we have to explore further. For this, we perhaps have to look at our South-South partnerships as well. We have to share best practices and use each other's comparative advantages around the alliances to realise mutually beneficial relationships.
The Brazil-India-China-South Africa co-operation, Bricsa, is an example that exposes South Africa to possible tourism markets, which may have received less attention before, and creates opportunities for further exploration, given the fact that they are experiencing above-average economic growth as well.
We also had a memorandum of understanding between South Africa and Kenya. Colourful billboards promoting Kenyan tourism along our highways attest to this. We believe that this will deepen our destination experiences. We are encouraged by developments around Nigeria and Angola, as the hon Minister has mentioned.
Chairperson, allow me to thank the hon Minister for the recent meeting with his counterpart in Zimbabwe, which indeed gives a political signal that demonstrates our confidence in the government of national unity and the negotiation process taking place under our President and the Southern African Development Community, SADC.
We recognise that it is in our economic interests to do so, because we are neighbours that are interdependent, who have to act with mutual synergy, because the more tourists there are in Zimbabwe, the more tourists we shall have as South Africa. There shall be peace and friendship in Zimbabwe.
Moving forward - from the regional stage to the global one - and as the hon Minister said, we have 37 days to go before the 2010 Fifa World Cup, and thanks go to the leadership of our great country South Africa for being bold enough to bring this mega event to our shores. It is the right event at the right time. Our duty as a country is to make the most of it whilst it is here, because we shall not see a mega event of its magnitude again in our lifetime.
Of course, we learnt a lot about the power of event owners and, in some cases, we mitigated the negative impact of that power well by strategising carefully. The challenge now is how to optimise the legacy of this event. How do we handle reputational risk, managerial risk and security risk in a way that maximises this legacy What is critical to us is that the global exposure we receive as a result of having the 2010 World Cup in South Africa promotes our national interest?
In this regard, we have visited many host cities as Parliament, where we observed the state of readiness of South Africa as a tourism destination. We can tell you now that the airports we have are amongst the best in the world. [Applause.] The stadia we have built are second to none on earth. The infrastructure in the host cities was more than 95% ready three weeks ago. [Applause.] Yes, we are ready. Colourful flags are already fluttering in celebration of the arrival of Kaka, Ronaldo, Ronaldinho, Drogba, Eto'o, Messi, Rooney, amongst others. Yes, 2010 will be a defining moment for South Africa.
The long-term impact in terms of the economy, tourism, social development and the stature, not only of South Africa, but of Africa as the whole, are too important to be left to chance. The experiences, the dreams and the memories of South Africa will surely encourage many to make repeat visits to our great country.
On the question of the readiness of the Bafana team, I guess that I need more courage and patriotism than logic. First, we have to look at who we are. We were the first to try and take out the heart of a human being and replace it with the heart of another human being. Remember, Chris Barnard! He led this battle, and he was a South African.
In 1995, we had a very successful Rugby World Cup, when everyone feared the All Blacks and Jonah Lomu. It was a question of David and Goliath but, guess what, we just went onto the playing field and tackled the hell out of the feared Jonah Lomu and took the cup home. [Applause.] The country erupted in celebration, with Mandela leading it.
Once again, when everyone was scared of Ghana in 1996, what happened We gave them such a hiding that when we were tired of dribbling them, Doctor Khumalo stood on top of the ball and folded his arms until the referee gave him a yellow card. [Laughter.] No Ghanaian player ventured to come near for they could not believe it. Similarly, we shall mesmerise the Argentinian maestro Messi into a mess?
Yidiski le. [This is football.
This will be the greatest event on earth ever. Halala, South Africa, Halala!
HON MEMBERS: Halala!
Mr D M GUMEDE: We hope that many people in the rural areas will share the excitement and opportunities that will be enjoyed by many in the urban areas.
In conclusion, let me pay tribute to one of our outstanding members of the committee, Comrade Dr Manto Tshabalala, who took part in this debate last year.
We have a clear agenda of rural development in our country which must include tourism. Some of us in this House know very well that there are many features of cultural and ecobiodiversity significance in many of our rural areas and the challenge for us is to make these more commercially relevant to communities.
That was Dr Manto Tshabalala on 18 June 2009. Now that she is no more, can we say that we are better off a year later That was her last debate in Parliament. May her soul rest in peace. The ANC supports the adoption of the Budget Vote. Thank you. [Applause.?
Mr G R KRUMBOCK: Chairperson, any industry that contributes more than gold mining to export revenues deserves to be taken seriously. Certainly, that sentiment was underscored by President Zuma when he stated on 25 February 2010 that he wanted tourism's share of GDP to increase by double digits in the next five years.
To achieve this, tourism needs the freedom to release its entrepreneurial spirit and recognition that it is an overwhelmingly demand-driven service industry, operating against ferocious international competition for customers. Most of all, it needs an enabling government that not only aggressively promotes its products in nimble and innovative ways, but is also sensitive to the fact that tourism operates in an interdependent environment, which is affected by the performance of other government departments.
Consider the key milestone of the increase in foreign arrivals to our country, from one million in 1990 to virtually 10 million arrivals now. This represents a compound growth of about 13% a year over those 20 momentous years.
That is impressive growth by almost any measure, until one focuses on the department's own figures in the latter six years, which revealingly show that annual growth halved to 6,9% over this period. So we have done well, but maybe not well enough.
The increase in tourism's total contribution to GDP over the same six-year period to R194,5 billion or 18% per annum is impressive even after allowing for the Consumer Price Index, CPIX, which reduces the growth in real terms to 11%. But those figures mask a structural imbalance in that we are overexposed to Africa and Europe.
Africa alone accounts for around three quarters of foreign arrivals, so we need to look further afield if we are to increase tourism beyond a high-end low-impact destination of five and four-star accommodation only.
Worryingly, some of those markets are showing the least growth. Our six largest long-haul destinations - the United Kingdom, Germany, the United States of America, France, Netherlands and Australia - totalled 1 188 000 tourists in 2002, growing to only 1 393 000 tourists in 2008, an annual growth rate of just 2,5% per year.
SA Tourism has succeeded in providing informed, sophisticated and responsive marketing to consumers' fast-changing needs and choices. It must also be resourced to be competitive on a cut-throat global stage.
When growth is sluggish in your key markets and competition is fierce, you don't cut your advertising budget. Australia spends twice as much as South Africa, promoting an already winning nation. We need to keep on after the World Cup to ensure that the unparalleled awareness that is created will result in at least three quarters of a million extra tourists per year.
To properly resource SA Tourism will amount to less than one tenth of one percent of our current national budget. The most compelling statistics arising from the Tourism, Sport and Mega Events summit in February was that every pound spent marketing the UK resulted in four pounds in revenue.
So cutting SA Tourism's budget by R160 million in the next three years, just after this watershed moment in our country's history, isn't just inexplicable timing, it is also misconceived, because increasing tourism spending should deliver a net return to the fiscus.
Barcelona entrenched its brand image as a value-for-money destination during the 1992 Olympics. Germany used the 2006 Fifa World Cup to rebrand itself as a fun-loving nation at peace with itself and its patriotic symbols. We have already flirted with a "yellow card" with budget cuts potentially impacting negatively on this event. We cut back in marketing our country around the 2010 event, especially among qualifying nations.
Only 160 existing tourist guides were up-skilled and new entrants trained in the previous financial year for similar reasons. That followed the establishment of a smaller 2010 unit in 2007, again due to budget cuts.
The Department of Tourism has, mostly, performed well, but can it really succeed when it lacks the resources to do a proper job In 37 days' time the opening match of the 19th Fifa World Cup will kick off. As Africans, the DA sees the World Cup as a unique opportunity to roll back Afro-pessimism by hosting a world-class African World Cup that will deliver a lasting social legacy and help rebuild one South African nation with one future. Ke nako?
We join with all sides in this House in recognising the common heritage that we celebrate as Africans in the calabash and its ring-of-fire lighting, the majesty of the Moses Mabhida arch, the giraffe supports at Mbombela stadium, the architectural beauty of the Cape Town stadium and the stunning world-class new airports.
As Africans, we say: Phambili Bafana Bafana! Phambili Aaron Mokoena! [Forward Bafana Bafana! Forward Aaron Mokoena!
HON MEMBERS: Phambili! [Forward!
Mr G R KRUMBOCK: Let us hope that our forwards are faster than cheetahs on greased lighting, and that the Mexican, Uruguayan and French defenders are slower that a turtle swimming through peanut butter! Now that would be Ayoba!
But one way or another, late on July 11, the sound of the last vuvuzela will fade into the Highveld night and the World Cup will be over. And then what, Minister Will we have, as you once stated, indeed taken this once-in-a-lifetime chance to showcase the best we have as a tourism destination?
The fact is, the evidence is mixed, and much remains to be done. While our stadiums and airports are world-class, many of our heritage sites and national monuments are a disgrace. In Gauteng, the Heroes Acre is vandalised; while the Air Force monument is half broken down for scrap metal. The state of our monuments in Resistance and Congella Parks in eThekwini shames the legacy of the heroes commemorated there.
The Paraguayan team hosted in uMngeni will have to negotiate monstrous potholes and metre-high weeds on the verges. They will feel more at home when they encounter the local roadside forests of bugweed, a South American plant, but what will they make of the overpowering piles of rubbish on every street corner on the Mpophomeni Tourism experience?
Mbombela, on the other hand, has seized the opportunity to build its brand image. The city seems ready for 2010, with football fountains and landmarks such as the "Eye of Nelspruit" poised to give tourists "Africa's Warmest Welcome". Nelspruit's main tourist attraction, the botanical gardens of Mpumalanga, is tourist friendly and in impeccable condition.
Similarly, the major attractions of North West province - Sun City, the Pilanesberg Nature Reserve, Kruger House in Rustenburg and Kgaswane Mountain Reserve - are well maintained.
By contrast, the Nelson Mandela Metro is in a filthy state, in the wake of a 13-day municipal strike. The historical legacy of this 1820 settler city has been further blighted by the neglect, often beyond repair, of its irreplaceable colonial architecture, such as Duncan Street terrace, and Canterbury and Victoria Houses.
It is instructive to compare Pietermaritzburg with Adelaide, South Australia. Both are British colonial in character and layout, and were founded within two years of each other, in 1838 and 1836 respectively. But while Adelaide is spotless, with pedestrian malls including golf carts for the elderly, the KwaZulu-Natal provincial capital has been driven into the ground and into bankruptcy.
To avoid the filth, piles of uncollected rubbish and crime, Pietermaritzburg Tourism is forced to ask tour operators to avoid the city centre, which contains the finest Victorian architecture in the southern hemisphere.
While SA Airways has brought some of their prices more in line with competitors, ticket prices are still around triple that of other airlines the day before the Cape Town semi-final and significantly more the day before the World Cup final itself. This continues to damage our brand as a value-for-money destination.
I quote these examples, Minister, to reiterate the interdependency of tourism with other departments. In many instances, dysfunctional local government, Public Enterprises and Arts and Culture are undermining SA Tourism's stated key priority to ensure South Africa's tourism-readiness for the World Cup.
Others have made positive contributions. The Southern Africa Tourism Services Association, Satsa, has assisted in streamlining air-land interfaces to ease flows in peak times on behalf of prebooked groups not adequately catered for, and has teamed up with the Airports Company of SA, Acsa, to maximise kerbside flow. SAA will supply the first seat available if you have a ticket. Seventy-four percent of hospitality providers are charging reasonable prices, assisted by the Rooms4u portal of the Federated Hospitality Association of SA, Fedhasa.
Estimates of foreign arrivals have declined from the original 410 000 to Grant Thornton's recent forecast of 373 000 arrivals. It may not be the worst thing in the world to have slightly fewer fans than originally estimated, as this will better ensure a memorable experience rather than an event characterised by possibly gridlocked traffic.
Television and radio, both on and off the pitch, will broadcast not just the World Cup to a cumulative audience of between 26 and 38 billion people, but also their experiences and impressions of our country. Whether we address the remaining challenges that have been sketched above and seize this unparalleled opportunity to rebrand our country for the benefit of all our people remains in our hands, but action is needed this day. There is not a moment to lose. I thank you, Chairperson. [Applause.
Mrs M A A NJOBE: Chairperson, hon Minister, hon Deputy Minister, hon members, it is correct for the national Department of Tourism to be focusing sharply on responsible and environmentally sustainable tourism growth. Responsible tourism is required to promote our diversity, to conserve our heritage and to provide more enjoyable and memorable experiences for tourists through meaningful connections with local people, local culture and local social and environmental issues. Furthermore, it is required to encourage cultural sensitivity, respect between tourists and hosts, and the building of local pride and confidence.
This has been the goal for SA Tourism since 2002, when the Cape Town Declaration was signed. This goal still informs the vision and mission of the new department. But the question we need to ask is whether environmental integrity, social justice and the maximisation of economic benefits for local people, particularly the previously disadvantaged, has indeed occurred.
Clearly, the priority for South Africa in the medium term is for both social and distributive justice to be taken to the top of the agenda, particularly because we have become the most unequal society in the world. We, in Cope, are fully supportive of the goals of responsible and environmentally sustainable tourism growth. But what we now need is visible delivery in this regard.
Hon Minister, when will this good intention become a reality throughout the South African tourism industry Currently, benefits accruing from tourism growth favour urban rather than rural areas, already established businesses rather than small, medium and micro enterprises, SMMEs. For much too long lip service has been paid to increasing investment in tourism in small towns and the rural areas of our country. Cope expects active implementation of the current medium-term strategy?
At least R750 million should be going into tourism infrastructure development in the rural provinces and in small towns. However, with a total budget of just over R1 billion, this may be hard to achieve. This is in spite of the fact that the tourism industry contributes substantially to the gross domestic product and job creation in this country. To be able to achieve the intended geographic spread of tourism growth, the department definitely deserves a better Budget Vote.
South Africa's small towns and rural areas offer abundant opportunities for cultural tourism, biotourism, geotourism, adventure tourism and history tourism. This government should make direct capital investment in rural areas and towns. After all, inbound tourism should find our rural areas as attractive as our urban areas, provided their tourist potential can be developed.
We also need to invest more in marketing domestic tourism. The majority of South Africans travel extensively to visit family and friends. They participate in events and other gatherings. But statistics show that most of them do not tour. The reasons are partly cultural and partly historical. It may also be that tourism products in South Africa are geared more for individuals and couples than for families, and costs could also be an inhibiting factor.
Cope believes that in a country where we need to forge a common nationality it is imperative that we, as South Africans, need other South Africans in facilities removed from our homes and workplaces. However, some facilities still actively discriminate against the country's majority population. This matter needs to be addressed.
All South Africans should be encouraged to visit the World Heritage Site at Sterkfontein, because if all of us understood that humanity evolved in Africa and that all of us carry the genes of an African mother - whether one believes this or not - it could help to shape our perceptions of one another.
Added to this is the hope that one of the legacies of the 2010 Fifa World Cup will be the promotion of social cohesion within our nation. From the two oversight tours that the committee undertook jointly with several other portfolio committees, it is clear that South Africans are indeed determined to make the event a huge success. This is in spite of some constraints, for example budgetary constraints, in venues such as Port Elizabeth, Rustenburg and Durban. But one thing is certain: the spirit is positive and Cope is behind Bafana Bafana.
However, there are disturbing concerns coming from some recent reports. It appears that the SMMEs feel left out of the possible economic benefits which the World Cup is expected to bring. It appears that only half the number of visitors projected to come for the World Cup will, in fact, be arriving on our shores next month. It also appears that only about 300 000 tickets for the World Cup were bought by soccer fans from outside the country.
Most tickets were bought in the United States of America, the United Kingdom and Germany. Of course, we have always looked to these countries for the bulk of our tourists. But what went wrong that football fans from other football-crazy countries are not coming here in their numbers Particularly disturbing is the minimal support from Africa. If this is the situation, hon Minister, can you still claim that tourism will contribute R15,6 billion to the country's economy, as projected earlier?
Could it be that the scare stories of violent crime and racial tension have put people off from coming here What about the pricing structure adopted by the hospitality industry and airlines Has this played any role in discouraging people from coming to South Africa What have been the department's findings from the investigations carried out on this matter?
However, in conclusion, and on the positive side, Cope believes that South Africa has been and will remain a tourist Mecca. We have the climate, the natural beauty, the history and the facilities to attract people from within the country and from all over the world. All we need is to move beyond intention and planning into delivery mode. I thank you. [Applause.
Mrs C N Z ZIKALALA: Hon Chairperson, the development of a vibrant tourism industry should be a top priority of government. Tourism in South Africa has demonstrated significant growth since 1994 and is fast becoming a key component of the country's economy. The tourism industry has perhaps a greater potential than any other single industry, both directly and indirectly via its multiplier effects, to support economic growth and job creation.
With the Soccer World Cup around the corner, the Department of Tourism has the daunting task of ensuring that the tourism industry plays its role in hosting a successful event. Every step must be taken to ensure that the department is on course to meet its many targets in preparation for the influx of visitors expected for the 2010 World Cup. We must make the most of this wonderful opportunity for the tourism sector to grow by leaps and bounds for many years to come. This will turn our country into a world tourist hub.
In South Africa there are few working models using community projects based on handcrafts, such as Imbali Handcraft in KwaZulu-Natal, which offers a form of income for otherwise unemployed Zulu women. However, these kinds of projects need to be replicated in all parts of the country, especially in the remote and marginalised communities.
We, in the IFP, believe that our tourism sector can grow at a faster rate and in future contribute even more to our economic growth and development. It can also have a positive impact on a much broader spectrum of people than is currently the case, if certain fundamentals are dealt with more vigorously.
Here, I refer to the hardy annual of crime. Whilst we may like to believe that crime does not deter more tourists from visiting our country, the reality is that it does. We must not bury our heads in the sand like ostriches and believe that nothing is going wrong around us. We must act decisively to provide comfort to tourists.
While we do congratulate the relevant people and organisations on the good work that has been done in reaching these targets and milestones, we are still concerned that the benefits and opportunities that stem from this growth are not more broad-based and shared by more South Africans, especially those from the rural areas where I come from. [Laughter.] Cheers!
The concerns and anxieties of these previously neglected groups need to be understood and adequately addressed in building a successful tourism industry in South Africa. There is a perception that tourism refers only to people travelling around and staying in hotels. The wider opportunities offered by tourism are not appreciated.
There is no doubt that tourism could contribute to community upliftment and help local communities escape from poverty. The department should, therefore, initiate or provide support to income-generating projects such as those based on handcrafted materials.
This department could and should play a bigger role in the development of the rural areas of our country through investments in, and the promotion of, tourism and tourist-related activities in these areas. I believe that the unique and truly South African experiences that these areas have to offer will have great appeal for communities. The department needs to increase job and entrepreneurial opportunities, especially to empower disadvantaged communities and groups.
The IFP supports this Budget Vote for people in my age group. The diski dance, let's go for it. [Time expired.] [Applause.
Mrs X C MAKASI: Hon Chairperson, Minister of Tourism, Deputy Minister of Tourism, Ministers, Deputy Ministers, hon members and guests, the South African nation is a product of many streams of history and culture, representing the origins, dispersal and reintegration of humanity over hundreds of thousands of years. Archaeological findings in various parts of the country and the rest of Africa have located South Africa and the continent at large as the Cradle of Humankind and early forms of human civilisation.
From the earliest manifestations of intellectual activity, the settlements of pastoral communities characterised by foundries, artisanship and trade across oceans, the colonisation by Europeans, the slave trade and indentured labour, South Africa has emerged as one of the diverse nations on the globe. This is our collective national heritage.
ANC policy recognises that our cultural and heritage resources and facilities, including those that were previously neglected, should be popularised, preserved and democratised and be open and belong to all our people. It also follows that, because we are proud of our rich culture and heritage, we want the rest of the world to also feel, see and experience these national assets and treasures. It is also in this regard that the role of tourism in South Africa should be seen and appreciated.
The 2010 Budget was tabled within the context of a deep global crisis, brought on by the crisis in the financial sectors of developed countries. Though not immune to the ensuing global economic downturn, South African tourism has so far resisted the financial crisis better than many other sectors. There is growing evidence that tourism and travel can make a valuable contribution to the process of economic recovery.
The newly formed Department of Tourism is a testament to the ANC-led government's bold vision for the growth and development of the economy and tourism's fast-growing contribution to economic growth, human development and the creation of decent jobs. The department's aim to promote and develop responsible tourism, thereby increasing job and entrepreneurial opportunities and encouraging the meaningful participation of previously disadvantaged individuals, is laudable.
Responsible tourism is tourism that generates economic benefits for local people, enhances the wellbeing of host communities and makes positive contributions to the conservation of natural and cultural heritage. Responsible tourism is tourism that provides more enjoyable experiences for tourists through meaningful connections with local people and is culturally sensitive through engendering respect between tourists and hosts to build local pride and confidence.
Tourism can make a significantly positive contribution to dealing with the challenges we face today by supporting the recovery of the economy and greening our activities to pursue a more balanced, sustainable and fair growth rate. In this endeavour, travel and tourism play a relevant part in which our unique nature, culture and traditions represent an exceptional comparative advantage.
Cultural heritage tourism is one of the most rapidly growing sectors of the multibillion rand international tourism industry. It is also an area in which South Africa is well placed to compete.
There are still many areas that remain undiscovered by tourists and these areas range from our cultural villages in deep rural areas to our heritage places that define our new democracy and the heart of South Africa's attractions.
It is important to note that South Africa is home to eight World Heritage Sites and all these places are of outstanding value to humanity. Four of these eight sites are cultural sites, with one being a mixed cultural and natural site. They are Robben Island, the Mapungubwe Cultural Landscape, the Richtersveld Cultural and Botanical Landscape, the Cradle of Humankind and the Ukhahlamba Drakensberg Park.
Domestic and regional tourism is the backbone of a sustainable and robust tourism industry and should be unlocked by redefining the concept as a new, inclusive definition of South Africanness. Domestic tourists accounted for 77% of all tourists in South Africa last year. Over the three year period from 2006 to 2008, domestic tourists accounted for, on average, 79,6% of all tourists in South Africa.
The spread of tourism to include small towns and rural tourism as priority sectors in the growth of tourism is very important, as it will increase investment in the development of rural tourism products. The development of rural tourism comes with benefits such as the increased participation of the poor, involving ownership and management. This is also encouraged by the White Paper on the promotion of tourism, which contends that the prime tourism areas are not located in the cities but in the rural areas. This kind of tourism provides people in rural areas with the platform to showcase their talents as well as indigenous activities.
We are aware that the department will focus on ensuring the geographic spread of tourism that includes tourism in rural areas and involves rural communities. As far as this aspect is concerned, the department will also promote increased investment in the development of rural tourism products. It has already identified the development of niche products, such as cultural heritage tourism, as a priority. Instead of just looking at the national and provincial distribution of tourists, the department wants to start looking at the intra-provincial distribution, which would include small towns and rural areas.
Everything possible must be done to galvanise tourism job creation. In this respect, cultural heritage tourism can make a fundamental contribution, the benefits of which can be readily seen in terms of national image.
Every South African has reason to be proud of our rich heritage and the wide and colourful variety of our cultures. Cultural heritage tourism contributes millions to our economy, exposes hundreds of thousands of people to the reality of a great nation and gives them positive stories about South Africa to take back home with them to every country in the world.
As resolved at Polokwane, the ubuntu principles must be integrated into public policy so as to celebrate our heritage landscape and the proud heritage of the indigenous people and to meet the need to accommodate diversity in our national heritage. The ANC supports the Budget Vote. I thank you. [Applause.
Adv A DE W ALBERTS: Voorsitter, die departement, saam met die Departement van Sport en Rekreasie, het groot werk wat voorlê om van die Fifa-sokkerwêreldbekertoernooi 'n groot sukses te maak. Die Minister en sy departement het alreeds sekere indrukwekkende suksesse behaal. Dit is ook bemoedigend om te verneem dat toerisme in Suid-Afrika gestyg het, terwyl dit wêreldwyd gedaal het, veral gegewe die ekonomiese insinking wat nog steeds wêreldwyd resoneer. Suid-Afrika, as 'n land van diversiteit met interessante kulture en sekerlik die mooiste natuurskoon in die wêreld, het sekerlik ook hiertoe bygedra. (Translation of the Afrikaans paragraph follows.
[Adv A DE W ALBERTS: Chairperson, the department, in conjunction with the Department of Sport and Recreation, has a huge task ahead to make the Fifa World Cup a big success. The Minister and his department have already achieved some impressive successes. It is also encouraging to learn that tourism in South Africa has increased, whilst it has decreased globally, especially given the economic downturn that is still resonating throughout the world. South Africa, as a diverse country with interesting cultures and probably the finest natural beauty in the world, certainly also contributed to this.
Unfortunately, despite certain achievements, the FF Plus also needs to point out the following aspects that deserve attention: Firstly, as pointed out by the FF Plus in the Sport and Recreation budget speech, the Department of Sport and Recreation and this department do not labour in isolation from other larger issues. The Minister will have to impress on his colleagues in the peace and security cluster, the extreme importance of creating a safer South Africa.
The last month has seen a spike in extremely violent crimes, many of which take on the nature of political acts of violence, bringing our country to the brink of devastating conflict, whether verbal via hate speech, or physical via weapons. You should not underestimate the extremely negative view the world currently has of South Africa, purely because we currently have very little peace and security. We really need to address this.
Secondly, with a view to the 2010 Fifa World Cup, certain arrangements between our country and Fifa have left many questions that deserve attention and answers. One, Match, the official Fifa hospitality arm, has turned South Africa into one of the most expensive travel destinations in the world. Their uncompetitive pricing has robbed South Africa of many tourists. Then they had the gall to dump hundreds of thousands of unsold tickets on our local market.
The question is, what type of misrepresentations were made by Match to secure such a monopoly, which they could not even utilise properly Will government take them to task for their destructive behaviour, especially with regard to the local small-scale hospitality industry, and, if so, how will this be done?
Two, if Fifa is not financially successful, will the taxpayer foot the bill in the end, with Mr Blatter walking away with an increased bank account?
Three, Fifa, a global organisation that must surely understand cultural diversity, has done nothing to plant their operations in all 11 official languages. Instead, they have continued to perpetuate the hegemony of English, at the cost of our indigenous languages. Will the department ensure that diversity is respected by Fifa I trust that the Minister will attend to these matters in an effective manner. Thank you?
The DEPUTY MINISTER OF TOURISM: House Chairperson, hon Minister of Tourism, Mr Van Schalkwyk, other Ministers here present, Deputy Ministers, chairperson of the Portfolio Committee on Tourism, Mr Gumede, members of this House, our new director-general, the leadership of the department, our captains of industry as well as our quests today, indeed tourism unites us. It is not very common for us to speak the same language as the members on the opposite side.
The success of the tourism sector in our country will be measured by the extent to which it changes the living conditions of our people, in particular the rural poor and the designated groups, as well as the extent to which they also participate in the development and enjoyment of tourism.
This has led to a renewed approach on how we develop tourism in South Africa and in the department, putting emphasis on the development of rural tourism; on intensifying the implementation of the second phase of the Expanded Public Works Programme, EPWP; on rolling out the tourism component of the national youth development programme; on the development of entrepreneurial and other critical skills; and on the acceleration of the transformation of the sector.
Looking into the implementation of our Expanded Public Works Programme and the creation of decent work, we need to say that decent work creation and poverty alleviation are two key priorities for our country and government during this electoral mandate period. We will make our contribution to these areas, and believe that this will contribute to the improvement of people's livelihoods and the restoration of their dignity.
Through the implementation of the tourism sector component of the EPWP, the equivalent of a total of 46 399 full-time jobs will be created over the electoral mandate period. These jobs will be created through the roll-out of projects aimed at the development of tourism, some of which are what the hon Zikalala was referring to. These include the improvement of our infrastructure and product development.
By design, the designated majority of beneficiaries will be women, youth and people with disabilities, who will also receive accredited training aimed at capacitating them for future opportunities. At this point, I wish to draw the attention of the House to the fact that, in our recruitment of new staff, we are looking at a target of 5% of our staff being people with disabilities over this period. [Applause.
Looking at rural development, one of the major priorities for the current term of government is the development of our rural areas, which is what the hon members have been harping on about. The department sees this as an opportunity to diversify the country's product base. It is our sincere belief that South Africa's rural areas, in particular, offer a unique experience that cannot be found anywhere else in the world.
It is also our view that tourism development can serve as a catalyst for infrastructure development in rural areas. It is also a fact that the majority of poor South Africans live in these areas and most of them are women, who are often the breadwinners in their respective households. The lives of those in these households must change for the better and, whilst we are not under any illusion that tourism is a panacea in this regard, we believe that we can make a contribution.
In line with the available resources, the department is prioritising the development of five rural-based products during the financial year. This will take into account the culture and heritage of these areas. Part of the strategy is to package and promote existing rural-based products across the country. [Applause.] We are also biased towards rural areas in terms of the roll-out of the Tourism Enterprise Partnership programme. In this financial year, of the 10 enterprises that will be supported to start up through the Tourism Enterprise Partnership programme, eight will be rural based. [Applause.
Looking at skills development, we regard the development of education as a critical success factor for any nation. For this reason, it has been identified as a major priority of government for this mandate period. It is only through education that there will be suitability of our developmental efforts. As a service-based sector, South Africa's tourism sector's success depends on the availability of a skilled and capacitated workforce with a true conviction of service excellence.
The department has identified specific critical and scarce skills across the sector's value chain and will implement specific interventions to close this gap. In this financial year, the department intends to facilitate the training of 150 chefs to alleviate a shortage in this area, particularly with regard to black chefs. Special attention will also be given to the overall implementation of the sector's human resource development strategy.
Working together with the Department of Education, we will ensure that the curriculum at schools aligns with the needs of our sector. This will be supported by establishing a partnership with industry to create opportunities for experiential learning educators. We will continue to host the National Tourism Careers Expo to showcase the opportunities and various career paths available to the youth of our country. In the last financial year, we attracted over 12 000 participants, largely Grade 12 learners.
The department is currently conducting tourism service excellence training for 2010 and beyond in all nine provinces. This commenced in April and we expect it to be complete on 2 June. This training is aimed at improving customer service at all service touch points in the sector, with a view to transforming this country into a globally competitive service economy and the world's destination of choice, in line with our vision to be globally celebrated as a destination of choice.
In this regard, we also want to be celebrated as a leader in tourism excellence. Some of this includes staff at public and private-sector touch points, such as ports of entry, restaurants, hotels, transport, the SA Police Service and the SA Revenue Service. The aim is to train up to 250 000 frontline staff.
I must emphasise that service excellence is not just a performance area for us, but part of our values and one that is critical for the sustainability of our sector. Over the medium-term period, the department, in partnership with the Department of Higher Education and Training, will establish a centre of excellence for tourism training. This will be the first of its kind in South Africa. We envisage that this will grow into a regional centre of excellence over the next 10 years.
The department will also be engaging the industry in a study to establish the profiles of the actual jobs we have created in the tourism industry. This is to clarify who the beneficiaries of such jobs are and the impact these interventions have on unemployment in the country.
Looking at enterprise development, our small, macro and medium enterprises, SMMEs, comprise the majority of enterprises in the tourism sector. Many of these require direct support from government in order to grow and expand. It is for this reason that we will continue our co-operation with the Business Trust in the implementation of the Tourism Enterprise Partnership.
Over the mandate period, we are targeting 50 enterprises that will be supported to grow by at least 5% in both revenue and jobs. The department will engage industry in clarifying the contribution of business towards achieving these targets.
In terms of sector transformation, with the Tourism Black Economic Empowerment Charter and codes of good practice fully effective, we are geared towards accelerating the transformation of the sector. We aim to achieve about 70% of the 2017 charter targets by 2015. We will continue to use government's procurement systems to pursue industry transformation objectives. We are happy to report that the majority of national departments have effectively supported this transformation drive.
Looking at provincial and local government support, we aim to work together with all the provinces and municipalities. The hon member has placed on record the importance of stable local municipalities and provincial government for the success of tourism. We want to ensure that there is sufficient recognition of tourism in both the provincial growth and development strategies and the integrated development plans of municipalities.
We also intend to provide direct support in planning for specific projects at local level. In this regard, the department has already developed a toolkit to guide tourism planning at local government level. Again, I must emphasise that the rural municipalities will take priority in line with resource availability. [Applause.
Looking at public education, awareness and outreach, it is important that every South African understands the value of tourism for the country. It is for this reason that the department will support the creation of a tourism culture amongst all South Africans. We will ensure that media platforms are diversified in an effort to reach previously marginalised communities.
In this regard, information will be disseminated through, amongst other platforms, the local community media, traditional councils and the Thusong centres. Our position is that the department must be accessible and must also go to the people. We believe that there can't be development of the people without meaningful involvement.
Amakhosi, as the custodians of our culture and heritage, particularly in the rural villages, are an indispensible stakeholder in the development of cultural heritage tourism in particular and rural tourism in general.
Our regional integration and co-operation also plays a critical role. I heard the hon Njobe indicate less support for South Africa in the World Cup. I just want to say that during the past two weeks I was at the Ministers' meeting in Malawi - the Southern African Development Community Ministers of tourism. They sent me a resolution to convey to the Minister their support for Bafana Bafana, and not just any team. [Applause.
All of them said that regardless of whether they had tickets or not they would go to the public viewing areas or would watch from their respective homes and facilities. They will support us, because they understand the meaning of the World Cup for Africa.
We will continue to work with SADC countries and with the Regional Tourism Organisation of Southern Africa, Retosa, to position Southern Africa as a regional destination. We will continue to support tourism recovery efforts in Zimbabwe. In this regard, I am pleased to announce that at the Minister's bilateral recently, there were very encouraging signs of willingness for co-operation between Zimbabwe's tourism industry and South Africa's tourism industry.
As part of regional co-operation, Retosa will be setting up an Africa Village Expo. This is an exposition of Africa's traditions, culture and heritage for fans to experience during the 2010 Fifa World Cup. Hon members are informed that it is taking place at the Melrose Arch.
Looking at social tourism development, the department is currently developing a concept for social tourism with the aim of unlocking travel opportunities for low-income South Africans. We recognise that many South Africans could travel and add to the sector's growth if the right packages were available. In this regard, the department aims to pilot one social tourism project in the current financial year.
Just before I conclude, by way of responding to some of the concerns by the hon members, I want to say that we all understand that resources are often a contested terrain. We understand the situation our government is in - the recession. It is hoped that even Cope understands that it is not of our making that the number of people coming to the World Cup is going down. That, in itself, requires all of us to come together and work together even more.
Fortunately this sector, which is the private sector, is always at the forefront. Together with them, we are looking at reaching our target of a double-digit figure by 2015, which is one of our targets as a department.
Finally, I believe that this contribution will go a long way in improving the lives of our people. I also want to call upon all South Africans to effectively participate in the development of tourism.
The department has an open-door policy and we believe that South Africans have something to offer our sector. Rise up and seize the opportunity. Like the youth say: "Uzoyithola kanjani uhlel' ekhoneni." [If you stay in your corner, you will lose].
The TEMPORARY CHAIRPERSON (Mr L B G Ndabandaba): Hon members, we thank the hon Deputy Minister. There is a slight amendment to the speakers' list: Instead of the hon Khoarai being speaker number 10, we shall call upon the hon V Bam-Mugwanya to be the 10th speaker, and she will speak for 10 minutes.
the ANC's vision of economic transformation takes, as its starting point, the Freedom Charter's clarion call that "The people shall share in the country's wealth," hence our support of Budget Vote 34 in terms of the development, empowerment and transformation of small, medium and micro enterprises, SMMEs. This is a sensitive topic indeed.
This transformation process has, over the past 16 years, undergone a number of phases, each building on what has gone before, but with the necessary continuity and change, as demanded by the ANC and by the objective conditions that face our economy. We are entering a new phase, that of a growth path and it is this new growth path that today's Budget Vote debate must speak to.
For far too long tourism has lacked the necessary economic transformative components of building broad-based black economic empowerment, BBBEE. In particular, the sector has lagged behind in the building of the most important component of broad-based black economic empowerment, namely that of social capital in terms of which the broadest sections of our communities become both economically empowered and collectively have wealth.
We are striving to strengthen our economic philosophy of a mixed economy that can thrive, be a motor of growth and development, and ensure that, whilst we have and build an integrated economy, the state must both drive the direction and set the broad framework within which our growth path will develop.
The strides that the department has taken now are applauded. Our objective therefore is to create decent work, break the back of unemployment and eradicate poverty. Today's debate on tourism will be assessed on whether it has been able to contribute to this perspective or not.
The skewed patterns of ownership and production, the spatial legacies of our apartheid past and the tendencies of the economy towards inequality, dualism and marginalisation will not recede automatically as economic growth accelerates. Decisive action is required to thoroughly and urgently transform the economic patterns of the present in order to realise our vision for the future.
The Constitution of the Republic - and the ANC's vision and mission, which largely influenced the content of the Constitution - requires that we pursue economic programmes to redress the inequalities of the past, and tourism has a definite role to play in this.
Tourism is the largest and most rapidly expanding economic activity throughout the world, and in South Africa the tourism industry has been growing at an unprecedented rate, as we heard in the previous speeches by the hon Minister and his Deputy. It is globally accepted and acknowledged that tourism has unrivalled potential to create sustainable jobs and grow the economy faster than any other sector.
The jobs and business opportunities created in tourism have special significance for an economy such as ours. They help to spread opportunities beyond our major metropolitan areas to the provinces. We need to create job incentives which remain in the rural areas, assist in the development of these areas and bring the richness of our cultural heritage to our nation and beyond. Through this, SMMEs are set to grow in the nine provinces.
Broad-based black economic empowerment and the development of small, medium and micro enterprises are crucial elements in the ANC-led government's plan to redistribute wealth, boost economic development and, in this way, drive gross domestic product growth.
The strategy of BBBEE and the Public Preferential Framework Act must undo the legacy of apartheid that excluded the majority of South Africans from proper participation in the economy. Broad-based black economic empowerment in the tourism sector is aimed at addressing a number of systemic problems in our economy, like the narrow base and concentrated nature of ownership and control, inadequate investment in skills development, low levels of entrepreneurship and limited investment in underdeveloped areas. In addition, the juxtapositioned tourism curriculum meant that there was high unemployment, something which the hon Deputy Minister has promised will be rectified, transformed and redressed.
For the tourism sector to thrive and grow, it is very important that the issue of transformation is taken very seriously. The gazetting of the Tourism Charter as a code of practice is one step towards achieving the ultimate goal of transforming this sector.
Transformation of the tourism sector will be facilitated by ensuring that, in line with the 2014 Millennium Development Goals, 70% of the tourism industry complies with the Tourism BEE Charter and Scorecard by 2014.
It is commendable that this budget makes ample provision to facilitate the transformation of the tourism sector through the implementation of the Tourism BEE Charter and Scorecard; to support the development of SMMEs through the Tourism Enterprise Partnership with funding that will be used for developing and promoting new enterprises, products and investment packages and for improving existing products; to promote opportunities for transformational tourism development; and to promote transformational ownership opportunities and support the necessary verification and monitoring processes.
Even more important, in order to transform this industry in a meaningful way, it is necessary to equip our people with skills and knowledge to manage tourism business enterprises for meaningful, participatory engagement.
What is critically lacking is that the tourism sector has not shown an appreciation for the development of tourism co-operatives in terms of which the redistribution of resources and finances can have a much larger impact upon our communities. Far more effort and resources need to be ploughed into this area: training in managerial skills, market analysis, finance management, etc, so that transformation is felt in a much wider and broader collective and is not just the pursuit of a narrow path of wealth redistribution, retarding the anticipated accelerated growth.
As alluded to by the Minister and other participants in the House, South Africa is on the brink of one of the most significant events in its history, the 2010 Fifa World Cup. Ke nako. [It is time.
We have witnessed not only huge public-sector investment in stadia and precinct development, transport, telecommunications, safety and security, and ports of entry infrastructure, but also in massive new investment in the hospitality industry, like hotel and resort development by the tourism industry itself.
These investments will leave a lasting legacy beyond the 2010 World Cup. Likewise, the 2010 World Cup brings a myriad of opportunities for small, medium and micro enterprises, as well as for emerging tourism entrepreneurs, thus resulting in their growth and development.
Whilst bigger businesses stand to benefit from the World Cup, one wonders, however, if SMMEs such as guest houses, bed and breakfast operators and taverns, as well as the informal sector that plays an important, although often unrecognised, role in the economy, will really benefit that much from this mega event, because certain areas of commercial activity are limited to Fifa and its sponsors.
This is because there are strict restrictions on sales, marketing and advertising in designated areas such as stadia. Small, medium and micro enterprises have found these areas impenetrable, particularly by our rural communities and enthusiastic entrepreneurs. What the Deputy Minister has promised in terms of rural-biased development is commendable.
In the hospitality industry there are clearly a number of challenges where entrepreneurs are concerned. Included in those problems are the unrealistic licence fees many local entrepreneurs have to pay in order to form part of Match Services, and the protection rights imposed by Fifa to protect its sponsors' rights to do business in areas surrounding match locations.
The TEMPORARY CHAIRPERSON (Mr L B G Ndabandaba): Hon Bam-Mugwanya, your time has expired.
Mrs V BAM-MUGWANYA: The ANC supports Budget Vote No 34. [Applause.
Mrs C DUDLEY: Chair, hon Minister, you have, during other interactions, expressed concerns that the alignment of budgets is not geared for tourism and that the allocations for tourism are minute compared to the revenue that tourism contributes to the fiscus, with tourism contributing more to the fiscus than mining, and that money spent on tourism does not necessarily find its way back into tourism. The reservations the ACDP has concerning the budget relate to these concerns.
This newly created department, we are told, has not received the full allocations it requested, and some posts could, therefore, not be filled. What impact will this have on the department's ability to deliver on its priorities?
The fragmentary nature of tourism within government that you alluded to, hon Minister, will need focused attention. Has a sufficiently large budget been allocated to streamline and establish an integrated strategy to cut down on duplication and reduce skills and rand wastage?
The ACDP commends the department on the Tourism Service Excellence Initiative, which targets a national behaviour change needed to achieve service excellence. Being attentive to visitors' needs and adopting a make-it-right attitude are fundamental principles.
The Tourism Growth Programme, which is responsible for the promotion of growth, competitiveness and quality of the tourism sector, received the highest allocation from the department's budget. This will hopefully result in service excellence in the industry, responsible tourism and human capital development.
The ACDP notes, however, the repeated concerns regarding a lack of access to information in rural areas and the need for focused radio marketing to reach rural areas with behaviour-change requirements. The setting up of locally owned tourist businesses should also be encouraged. Have these concerns been taken into consideration in this budget?
The ACDP agrees that the spread of tourism to include small-town and rural tourism as priority sectors in the growth of tourism is very important. It will increase investment in the development of rural tourism products and increase participation, ownership and management by locals in poorer communities. A review of existing legislation that has been suggested to ensure the support of local government in relation to effective tourism planning and the development and improvement of public and private infrastructure in this sector is possibly necessary.
World Cup-related entrepreneurial activity is rated to be significantly below the average at present. In the hospitality industry, there are still a number of challenges, including the unrealistic licence fees for many local entrepreneurs due to Match, the zealous protection rights imposed by Fifa.
Whilst government was aware of these restrictions prior to seeking and hosting the World Cup, there is now a discrepancy between the hype-aroused entrepreneurial aspirations of the nation, the restricted economic activity, and the expected local profit emanating from the World Cup. We hope South Africans will rise above any despondency and reap their just rewards in this regard.
I was reminded just now - and perhaps, hon Minister, you could comment - on how much the department has focused on health and disability tourism. Have we done that to our best advantage We will be supporting this budget. Thank you. [Time expired.?
Mr R B BHOOLA: Chairperson, notwithstanding what the prophets of doom say, South Africa has been an important tourist destination. I suggest to the hon Minister that he also look at local tourism, travelling from one province to another, and also that tour operators not only look at the favourite, Cape Town, but at other areas too. They must look at other parts of the country that have become world tourist attractions.
We must also look for South African tourism. The King Shaka International Airport has opened, and we need massive assistance from South African tourism and the national department to make sure that the world's airlines land at King Shaka International Airport.
We understand that there must be diplomacy over the World Cup, but the same things happened in Korea and Japan. I want to echo the sentiment that we cherish the hope that hosting this mega event will have a tremendous impact on the lives of ordinary South Africans.
We are blessed, indeed, with flora and fauna. We are blessed with human resources and, indeed, we must do everything to portray a very positive image.
The MF is extremely concerned about rural tourism development and that it remains a challenge in this country. The implementation of infrastructural development aligned to rural communities and previously disadvantaged communities needs to be addressed as a priority. It is absolutely imperative for government to render support to rural areas in respect of facilities for the tourism sector.
The MF is greatly concerned about how the department plans to increase the level of employment by marketing South Africa as a preferred destination to international markets with a reduced allocation.
The development of models that enhance local tourism and development planning is a critical part of contributing to cultural tourism and rural development. The MF welcomes the tourism planning toolkit, but strongly emphasises that Parliament needs to oversee the application of these models and the ultimate impact this has on tourism, and the progress it contributes to, in tourism.
It is important that we put aside all local differences and fly under one flag in spite of our diversity. The MF will support the Budget Vote.
Mrs J M MALULEKE: Mutshamaxitulu, Holobye wa Ndzawulo ya swa Vupfhumba, Xandla xa Holobye, vatirhikolorhi, vayeni va hina ndza mi xeweta. [Chairperson, Minister of Tourism, Deputy Minister, colleagues and our guests, I greet you.
Allow me to quote former New York City Mayor Rudy Giuliani who said, "When the right person is the leader, he does even better even during tough times." I say this by way of thanking the President for leading us in the campaign on HIV counselling and testing.
Ndzi khensa vamanana va Afrika Dzonga, ngopfu va ANC Women's League, lava nga lwela mhaka yo famba hi tipasi laha loko u nga ri na pasi a wu nga koti ku vhaka. A wu tsandzeka na ku ya ezoo ya Pitori u ri karhi u tshama eMamelodi kumbe ePhelindaba.
Namuntlha hi kota ku famba hi ya fika eN'walungu hi nga chavi ku khomiwa. Namuntlha vantshwa va hina va kota ku famba va ya ematikweni yo hambana va ya cina 'diski dance'. Hi khensa vamanana lava hi ku tiyisela ka vona. (Translation of Xitsonga paragraphs follows.
I would like to thank the South African women, in particular those from the ANC Women's League, who fought against the pass laws in terms of which you could not travel without carrying a pass document. You could not even go to Pretoria zoo, despite living in Mamelodi or Pelindaba.
Today we are able to travel up north without fear of being arrested. Our youth today are able to go to various countries to perform the diski dance. We are indebted to these women's determination.
Tourism has become one of the world's top job creators, providing 75 million direct jobs worldwide. It drives the viability of many small and medium enterprises. Tourism also provides fast entry into the workforce, particularly for women and the youth.
The President said in his state of nation address, and I quote: "We need to invest in our youth to ensure a skilled and capable workforce to support growth and job creation." Capacity-building and training are very important in achieving the goal of making sure that there is effective tourism growth and that in the industry service excellence takes centre stage.
Only proper training will ensure that the various opportunities in the industry are professionalised and made attractive to the vast majority of young people. In this way, the domestic and international tourism industry in the country will grow.
The President, in his state of the nation address, said further, "We must also increase the number of youth who enter learnerships in the private and public sectors." Capacity-building will ensure that human capital is effectively managed to grow a service-oriented, world-class tourism industry and this can be done by focusing on professionalising tourism guides and other operators in the industry and improving service levels and customer satisfaction.
Therefore, it is encouraging that in line with the tourism development mandate, 20 000 volunteers were trained in the "Know your Country, Know your City" programme for the 2010 World Cup. Sixty-four unemployed tourism graduates were placed at Canada's Ritz-Carlton Hotel and 32 young people were placed with a South African hotel group for management training purposes, while 120 tourist guides were trained in other languages, including French, German, Portuguese and Spanish.
Vanhu loko va tirhe swa kahle va khensiwa. ANC yi khensa vukosi bya Royal Bafokeng eNorth West loko va tekile vantshwa ku ya leteriwa hi mitirho ya swa hotela. Va ta kota ku ya tirha eka hotela leyi nga akiwa laha ku nga ta tshama vatlangi va bolo va England. Hi ri eka n'wina mi nga vuli mi ku 'if I was there' va na kona leswaku u ta vona hotela ya manyunyu leyi nga kona eNorth West. (Translation of Xitsonga paragraph follows.
[People should be commended when they have done something good. The ANC would like to thank the chieftainship of the Royal Bafokeng in the North West for putting the youth into hotel and hospitality training programmes. They will be able to work in the newly-built hotel where the England national soccer team will be hosted. We urge you not to miss out on viewing the five star hotel in the North West so that you do not regret it later by saying 'if I was there'.
The Tourism, Hospitality and Sport Education and Training Authority - Theta - has managed to conduct a number of workshops in six provinces in a mission to ensure that provincial skills development and training needs were included in the sector skills plan. The training conducted by Theta included unemployed graduates and was aimed at providing the scarce skills needed by the sector.
The general outcry is that all the initiatives do not reach the rural communities. Minister, we hope that you will deal with this problem.
We are bringing the tourism industry closer to the education sector to ensure that our training and education system produces the exact knowledge and skills needed by the industry. This is the only way to ensure that tourism, our new gold, has a solid and relevant skills base for continued future growth.
I am confident that if a comprehensive service excellence training programme, targeting management and staff within the tourism value chain, is implemented, the objectives in the state of the nation address of promoting an inclusive economy to create job opportunities through the Expanded Public Works Programme, of increasing training and skills development, and of supporting SMMEs will be well served.
This budget will allow the competitiveness of the tourism industry to be assured by, amongst other things, implementing service quality assurance, creating adequate capacity to effectively service the needs of the industry, particularly in light of the 2010 Fifa World Cup and its potential to secure visitors and have them return if they have a positive experience of the event.
South Africa can be positioned as a leading destination in terms of service excellence by rolling out service excellence training for front-line service staff in the sector.
People on the ground should feel the implementation of the strategy by the department, in order for us to say that the 2010 Fifa World Cup has left a real and sustainable legacy for this sector and for its strategic positioning beyond this sporting event.
We will do oversight functions with vigour and honesty, and we do trust that working together the Department of Tourism will respond with diligence and respect.
Lasting victory over poverty and hunger requires the creation of decent work opportunities and sustainable livelihoods. Education must be the centre of our efforts to improve the potential of every citizen and enable each one of us to play a productive role in building our nation.
The ANC supports the Tourism Budget Vote. Inkomu. [Thank you.
Ms M R SHINN: Chairperson, if this ANC-led government is serious about using the tourism industry to boost economic development and create employment, it needs to demonstrate that it understands what drives tourism growth. Tourism is basically a customer-driven service industry. It cannot be an ideological tool for social redress and voter appeasement.
The first strategic theme of the new national Department of Tourism is people empowerment and job creation, followed by tourism sector transformation, sustainable work creation, and growing the culture of domestic tourism. Identifying and growing markets comes further down the list.
There are many noble aims within its strategic themes, but are these the department's responsibility It seems the department wants to shape and control the industry rather than facilitate the expansion of professional entrepreneurial tourism. Much of the department's newly apportioned tasks seem to clash with the responsibilities of the Departments of Rural Development and Land Reform, Trade and Industry, and Economic Development?
Is the new Department of Tourism trying to justify its existence by making work for itself by taking on the other departments' tasks Most of its new tasks are probably best left to the private sector that is mindful of its critical role in growing the economy and jobs?
For tourism to flourish, it is critical to identify the most lucrative source of tourists and determine what they want. We must package offerings that entice them to spend their hard-earned cash in South Africa, rather than in Australia and the Far East, our main competitors.
If marketing South Africa as a tourism destination of choice to those with disposable income is done well, the economic benefits for our GDP and job creation are logical outcomes. But the department has turned its focus inwards, and expects its main tourism growth to come from within Africa. I fear our tourism industry will not be as financially successful as it could be because of this.
There is government enthusiasm to drive the development of community-based tourism to alleviate rural poverty. This is not a quick fix for joblessness. There are few community-based tourism success stories anywhere in the world. Our many failed cultural villages, heritage sites and craft centres are silent testimony to the difficulty of creating sustainable livelihoods this way.
We believe government should create an environment, free of bureaucratic and ideological impediments, to enable hard-working tourism entrepreneurs of all skin colours to grow and share the benefits of their good ideas. One only has to look at what the government has done to SA Tourism to be concerned about its understanding of where tourism growth comes from.
SA Tourism has done a brilliant job, with inadequate funds, of marketing South Africa to the world's football fans and a worldwide television audience. It has won numerous international awards over many years for its excellence. From our Auditor-General it has achieved eight consecutive unqualified audits, a unique achievement for any entity overseen by government.
But never before has SA Tourism been as weak as it is now - when it should be surging ahead to capitalise on the unique market exposure that the 2010 Fifa World Cup offers our nation. It is weak because of the ANC-led government's insistence on demographic bean-counting when it comes to filling strategic posts. No R820-million, internationally active corporation would appoint as its CEO a person unqualified and inexperienced to do the job. But the government did this. It appointed a government employee, an ambassador with no corporate management or marketing experience to head SA Tourism.
There are those that say that this ambassador-to-SA Tourism CEO model worked in the past. I counter that the global tourism market of 2010 and beyond, operating in an economically bruised world, is vastly different to that of 10 years ago. Tourism - and South Africa in particular - is tougher to sell now.
Alas, this new appointment led to the resignation of the person who ran the organisation for the past year. Didi Moyle did three jobs at SA Tourism - Acting CEO, Chief Operating Officer and Acting Research Officer. Now this experienced tourism professional is lost to the organisation, and will be sorely missed.
I am sure that the excellent team she left behind will support the new CEO as she finds her feet, but she'd better find them fast and develop the backbone to fight her ANC masters so that SA Tourism can be funded properly to do its job well.
In its misguided belief that South Africa's natural beauty sells itself, the government has cut its contribution to SA Tourism by R50 million, or 20%, at precisely the time we should be bombarding the world with our tourism offerings. And next year they plan to do it again by R53 million; and the following year by R57 million. This is a total cut of R160 million to the budget that SA Tourism was previously allocated over the Medium-Term Economic Framework, money essential to capitalise on the long-term tourism promise of the World Cup.
These cuts to SA Tourism's budget are irresponsible, given the government's lofty pronouncements about how tourism will grow the economy and jobs. Government is creating unrealistic expectations from an inhibiting strategy. We urge the department to give SA Tourism the respect this strategic asset deserves and allocate it appropriate resources. [Applause.
Mong L P KHOARAI: Modulasetulo ya kgabane, Letona la tsa Bohahlaudi, Motlatsa Letona wa Lefapha la tsa Bohahlaudi, Ditho tse hlomphehang tsa Ntlo ya Ketsamolao, lengolong la Ntlo ya Tokoloho, Freedom Charter, mokgatlo wa ANC o ile wa nka kano le baahi ba Afrika Borwa, ba re moruo wa naha ena re tla o arolelana le batho bohle ba o sebeleditseng. Ke kahoo ke reng ANC e tshehetsa Ditekanyetso tsena tsa lefapha.
E re ke nke puo ena ya ka, ke thoholetse bahale ba ileng ba wa ntweng ya tokoloho motseng wa Rammulutsi ka la 19 Mmesa 1990. Kajeno lena ba qeta dilemo tse mashome a mabedi ba le mobung o batang. Bahale bao ke ba latelang: Ndoda Radebe, Senki Nzeku, Jerry Joale, Mmoledi Tshotshotso le Pitso Moholo.
Puo ya ka ke tla e tshetleha ho diphihlello tsa lefapha le mesebetsi ya selehae. Lenaneo lena la lefapha le ekeleditswe ditjhelete ho tloha ho R325 ya dimiliyone selemong se fetileng sa ditjhelete, ho fihla ho R361 ya dimiliyone selemong sena sa ditjhelete. Ke kahoo lefapha le fihlelletseng tse latelang: Lefapha le fihlelletse ho phahamisa moruo wa naha ena ka diperesente tse hlano. La boela la fihlella ho etsa mesebetsi e metjha e ka bang 500 000, ho nka karolo ho aha ditsela ka hara naha ya Afrika Borwa, ho aha botjha mabala a dipapadi, ho aha matlo a baeti.
Lefapha le fihlelletse ho lokisa botjha boemafofane ka hara naha ya Afrika Borwa, ho aha botjha meedi ya naha ya Afrika Borwa bakeng sa batho ba tlang ho eta dipapading tsena tsa Mohope wa Lefatshe wa bolo ya maoto wa mokgatlo wa Fifa. Ebile lefapha le nkile karolo e hodimo haholo dihlophisong tsa dipapadi tsa lefatshe tsa bolo.
Tsena ke tse ding tsa dintho tse fihlelletsweng ke lefapha ka ho aha hape tse latelang. Lefapha le ahile metsana ya selehae, le ahile dikgutlwana tsa masedi a bohahlaudi, le ahile ditselana tsa metse selehae, dimuseamo, dikgutlwana tsa kopanelo, le ahile matlo a baeti a tlatselletso ho eketsa matlo a teng a kamohelo ya baeti.
Lefapha le sebeditse, Modulasetulo ya kgabane, nakong ena ya Ditekanyetso tse ileng tsa fokotswa ka lebaka la maemo a moruo ka hara naha. Lefapha le sebedisitse tjhelete e kana ka R426 ya dimiliyone ho ntlafatsa maemo a baahi ba Afrika Borwa, ho tloha selemong sa ditjhelete sa 2006-07 ho fihla ka 2010-11.
Lefapha le boetse la sebetsa ka ho thusa metse ya mahaeng, ka ho qolla, metse e profensing ya Kapa-Botjhabela, mme le entse diporojeke tse 27 tsa boleng ba R240 ya dimiliyone. Foreistata, lefapha le entse diporojeke tsa boleng ba R98 ya dimiliyone, Limpopo, diporojeke tsa boleng ba R38 ya dimiliyone, Mpumalanga, diporojeke tsa boleng ba R18 ya dimiliyone, Bokone-Bophirima, diporojeke tsa R7 ya dimiliyone. Le mona Kapa-Bophirima, lefapha le sebedisitse tjhelete e kana ka R40 ya dimiliyone ho etsa diporojeke tse pedi tsa ditsela. Modulasetulo ya kgabane, ka Ditekanyetso tsena tse kgaotsweng tsa lefapha, lefapha le sebeditse ruri. [Mahofi.
Dintlha tsa bohlokwa tsa Lefapha la tsa Bohahlaudi ke ho hlwaya dintlha tse ka hodimo tsa phethahatso, tse jwalo ka tse latelang. Ho hlahisa mesebetsi ya moshwelella ka mokgwa wa porojeke e atolositsweng ya tshebetso, ho aha le ho eketsa tsebo le thuto ya basebetsi, ho hlokomela hore dintlafatso di ba teng metseng ya mahaeng.
Lenaneo lena ke le leng leo Mopresidente wa naha a le hlakisitseng ka bokgabane puong ya hae ha a ne a re: Lefapha lena la Bohahlaudi le tlameha ho betla mesebetsi ya moshwelella ka mokgwa wa porojeke e atolositweng ya tshebetso. Lefapha lena le tla eketsa le ho atisa moruo wa naha ka bohahlaudi. Ho ruta le ho eketsa tsebo ho borakgwebopotlana le borakgwebo ba banyenyane.
Letona le kgabane, tse ding tsa ditsebi di re Gauteng, KwaZulu-Natal le Cape Town ke tsona tse hohelang bahahlaudi ho feta diporofensi tse ding ka hara naha ya Afrika Borwa. Haeba sena ke nnete, Letona le kgabane, potso ke hore ekaba diprofensing tse ding, na ho ntse ho etsahala eng Ke na le bonnete ba hore o tla hlakisa tsena ka ho teba le bobatsi ha o arabela dipotso tsena?
Lefapha le thusitse bommasepala ba ditoropo tse ngata ho hloma dibaka tse bulehileng tsa ho shebella dipapadi tsa lefatshe, moo ho nang le dibaka tsa setjhaba sebakeng sa ho boha dipapadi. Na ebe Letona le kgabane, dibakeng tsena tsa ho boha tsa setjhaba, lefapha le tla thusa jwang mahaeng a mapolasi le metseng ya mahae Lefapha le tlo tswela pele ho eketsa diphetoho le ntlafatso metseng ya mapolasing, le ho theha mesebetsi ya moshwelella. Tsena di tla etsahala ho tloha mmusong o bohareng ho isa mmusong wa selehae?
Ha ke qetella, ke rata ho leboha Letona le kgabane, Motlatsa Letona, Lefapha la tsa Bohahlaudi, bohle ba nkileng karolo ho aha botjha Afrika Borwa ena.
Modula-setulo ke tla ba mokgutshwanyane haholo ho ka hlalosa tse ding tsa diphihlello kapa tse builweng ke dibui mona Ditekanyetsong tsena tsa kajeno. Ke maswabi ho bona hore ba bang ba buileng mona ke batho bao e leng hore ha re ba bone ka mahlo ba hlahella komiting ena. Empa ho hlakile hore bana ba buileng mona ho tswa ho Freedom Front, ID, le MF ke ba bang ba batho bao e leng hore ha ba tle dikopanong tsa Komiti ena.
Ke kahoo ba kgonang ho bua ka hore na ekaba Lefapha le tla etsa jwang mabapi le tse etswang ke Lefapha la Dipapadi le Kgatholoho. Ha se mosebetsi wa Lefapha lena ka botebo hore le etse mesebetsi e etswang ke lefapha leo.
Mosebetsi ona o hlakisitswe ka bobatsi ke dibui tse buileng pejana, le ka mane ka letsohong le letshehadi, ha di re, ke ho betla tsela hore ho be le moruo o phelang ka hare ho naha ya Afrika Borwa. Ke mosebetsi oo re tshwanetseng ho o etsa, o ntseng o etswa ke Lefapha lena, le tse ding tseo ba seng ba di hlalositse. Ke ba bang ba batho ba bontshang hore, ha re kopane dikopanong kapa Komiting ena ya tsa Bohahlaudi, re ntswe leng. Ke kahoo re ke keng ra fapana ka tsena tse boletsweng mona.
E mong wa dibui ka mona ka Ntlong, o hlalositse hore ekaka mokgatlo wa ANC ke ona o nkang karolo ho bea batho ba sa itekanelang mesebetsing e itseng. Ke na le bonnete ebile ke kgolwa hore mme ya neng a bua ka mona o ne a le teng ha Mopresidente wa naha a ne a hlalosa puong ya hae ha a ne are: "Ha ho bolelwe hore ha o se setho sa ANC ha o a tlameha ho fumana mosebetsi. Jwale ka moahi wa Afrika Borwa eo e leng hore Molaotheo wa naha ena le wena o a o sireletsa, o na le tokelo ya mosebetsi ka hara naha ya Afrika Borwa".
Ke kahoo ke reng kannete ha re bua mona re ke re hopole tseo batho ba bang ba di buileng pejana, haholo jwang ha di buuwa ke Mopresidente a hlalosa ka bobatsi mesebetsi ya rona kapa mosebetsi oo a o behetsweng ke baahi ba Afrika Borwa ba diketekete. Ke a leboha. [Mahofi.
MODULASETULO WA NTLO (Mong M B Skosana): Ke a leboha Setho se kgabane. Mohlomphehi ntumelle ke hlalose hore, ke ho rarahana ha leleme ha ke qapodisitse lebitso la hao ka tsela eo e seng yona ha ke ne ke o hwelehetsa hore o phahame. Ha e be kgotso ntate! (Translation of Sesotho speech follows.
Mr L P KHOARAI: Chairperson, Minister of Tourism, Deputy Minister of the Department of Tourism and hon members of the House, the ANC and the people of South Africa pledged in the Freedom Charter that the economy of this country shall be shared amongst all the people who work hard for it. This is why I say the ANC supports the Budget Vote for this department.
I would like to take this opportunity to applaud the heroes who fell in the fight for freedom on 19 April 1990, in Rammulutsi. Today marks the twentieth anniversary of their deaths. Those heroes are: Ndoda Radebe, Senki Nzeku, Jerry Joale, Mmoledi Tshotshotso and Pitso Moholo.
My speech will mainly reflect on the achievements of this department and the work done locally. The department has seen an increase in the budget allocation from R325 million in the previous financial year to R361 million in the current financial year. This is why the department managed to achieve the following: The department has managed to increase the economy of the country by five percent. It has further created about 500 000 new jobs, has played a major role in building new roads in South Africa, and has helped in building new stadiums and hotels.
The department has helped with the renovation of airports in South Africa and the improvement of the South African border posts for those who will be visiting the country for the 2010 Fifa World Cup and has further played an important role in the preparations for this event.
There are other achievements of the department in construction. They include, among others the following: The department helped in building local communities; it also built tourism information centres. It has also built roads locally, museums, networking forums and has also built additional hotels to add to the existing number.
The department has done a lot, Chairperson, even though its budget was reduced as a result of the current economic conditions in the country. From 2006-07 to 2010-11 it has spent R426 million to improve the lives of the people of South Africa.
The department has also assisted rural areas, particularly those in the Northern Cape, by establishing 27 projects to the value of R240 million. Projects to the value of R98 million were created in the Free State and R38 million was spent in Limpopo. In Mpumalanga, R18 million was spent on such projects, and R7 million was spent in North West. This department spent a further R40 million on two projects related to roads construction in the North West. Hon Chairperson, despite the reduced funding, the department has indeed done a lot. [Applause.
The main focus of the Department of Tourism is to identify major challenges such as creating sustainable jobs through the extended projects, broadening and developing the knowledge and education of workers to ensure that rural areas are developed.
This programme was outlined clearly by the President of the country in his speech when he said that the Department of Tourism must create sustainable jobs through the extended projects. This department will increase the economy of the country through tourism. It will also teach and broaden the knowledge of the emerging entrepreneurs, including those in small businesses.
Hon Minister, some analysts say Gauteng, KwaZulu-Natal and Cape Town attract more tourists in the country than other provinces. If this is true, hon Minister, the question is what is happening in the other provinces I believe that you will explain this in detail when you reply?
This department assisted various municipalities to establish fan parks and public viewing areas to enable fans to watch the Soccer World Cup. Hon Minister, how is the department going to assist regarding fan festivals and public viewing areas on farms and in rural areas The department will continue to improve rural areas, bring changes and further create sustainable jobs. These will happen from national to local government?
In conclusion, I would like to thank the hon Minister, the Deputy Minister, the Department of Tourism and everyone who contributed in rebuilding a new South Africa.
Chairperson, I will explain briefly some of the achievements or reiterate what has been said by the previous speakers in this Budget Vote today. It is regrettable that some of the previous speakers do not even attend meetings of this committee. It is obvious that those from the Freedom Front, ID and MF are among those who do not attend meetings of the committee.
This is why they are able to ask questions about what this department will do in relation to what the Department of Sport and Recreation is doing. It is not the responsibility of this department to assume the responsibilities of the Department of Sport and Recreation.
What this department has done was outlined by previous speakers, including those on the left, when they said that it is important to pave the way for the establishment of a healthy economy in South Africa. What the Department is doing is exactly the work we need to do and many other things that were previously mentioned. These are some of the people who show that when we are in meetings of the Portfolio Committee on Tourism, we all speak with one voice. This is the reason we won't differ with what has been said.
One of the speakers in this House mentioned that it seems as if it is only the ANC that is taking sole responsibility for putting people with disabilities in certain positions. I strongly believe that the hon member who has just spoken was present when the President of the country said, during his speech, that it does not mean that if one is not a member of the ANC one will not be employed because, as a South African citizen, one is protected by the Constitution. Everybody has a right to be employed in South Africa.
We need to take into consideration what the previous speakers have said when we deliver our speeches, especially when something was mentioned by the President explaining our work or the task that was given to him by thousands of South African citizens. Thank you. [Applause.
The HOUSE CHAIRPERSON (Mr M B Skosana): Thank you, hon member. Hon member, it was just a slip of a tongue when I mispronounced your name when I called you to stand. Please accept my apology!
The MINISTER OF TOURISM: Chairperson, I would like to thank all the hon members for their contributions and their support for the budget. I look forward to working with the members of this portfolio committee to achieve the aims that we are setting for ourselves.
I would like to deal with a number of issues in the limited time available. I hope that I can deal with all of them. There are six issues that I would like to respond to.
The HOUSE CHAIRPERSON (Mr M B Skosana): You have nine minutes, Minister.
The MINISTER OF TOURISM: That's right. I'll try my best, Chairperson.
I will start with the issue raised by the hon Krumbock of overexposure to certain markets. We basically agree with that. That is why we analyse the markets every year. We prioritise and reprioritise, if necessary, and our conclusion - as I said in my introduction - is that we will have to look at new markets: African markets, yes, but obviously also at the new markets that everybody is after, such as China and India. We will be opening our new tourism offices in Beijing on 24 May, and I hope it will be a major injection in that market.
Our traditional markets - Germany, the UK, the USA - which the hon member mentioned, will obviously continue to be important, but we must take note of the slower growth in those markets. For the time being, those regions will continue to be our bread and butter markets, but we obviously take note of that input.
There is also the issue raised by other hon members: that we are probably overexposed in terms of some of our traditional products, and that we will have to diversify, to incentivise and to look at new products in the market. One or two members mentioned - as I said in my introductory remarks - that we really have to focus on the convention and the conference markets in the future as well.
Before I deal with the issue of social tourism and the issue of our objectives in terms of growth - the 2015 targets - let me deal with two thorny and difficult issues that were raised by members. I am of the opinion that, if people raise difficult issues, one doesn't run away from them; one deals with them.
The hon member Shinn raised an issue that, I must say, I thought was not raised in the proper manner. I've known the hon member for a year now, and she's been a very constructive member of this portfolio committee. But, hon member, regarding the way that you raised the issue of the CEO of SA Tourism, I think, if you asked your senior colleagues for advice, they would have told you that that is not the way to raise an issue in this House.
There are ways to raise issues, but personal attacks, like the one which took place this afternoon, are simply not done in this House, because people cannot defend themselves. We are a Parliament of all the people and we treat people that we appoint with respect. Also, if we raise issues, we do so in a certain way. So, I would like to respond to that issue very specifically and not run away from it.
I've now been in Cabinet for six years. I have never had an experience in which somebody told me or any other Minister that you can't appoint a person on the basis of race. Never! Not once! We are not bean-counting. What we do when we appoint boards - and I think this is the DA's approach as well - is obviously to look at balance in terms of language, gender and so on. In a country like ours, one must do that, otherwise in the long run there will be trouble.
But when we appoint individuals where they have to do a job, I've never had any quotas enforced or even raised with me. I had a director-general who was white; I had two who were women and African. I introduced you to my director-general this afternoon. When considering those appointments, I have never looked at those factors. I asked myself: Is that the most capable person to do the job And then I made the appointment. [Applause.?
Concerning the CEO of SA Tourism, it is my view that SA Tourism has one of the best boards of any public entity. I have the highest regard for the person - who will now be leaving our service - whom the hon member mentioned. The fact of the matter is that the board unanimously recommended the appointment that I made, but I also applied my own mind. I have absolute, full confidence in the new CEO and I know that she will be able to do that job. [Applause.
So, the hon member is free to raise the concerns that she raised, and she should raise them in Parliament, but I think the manner in which she raised them is something that we should be very careful of doing in our Parliament.
Let me now deal with the issue raised by the hon Alberts from the FF Plus. He spoke Afrikaans, and I saw that some members had difficulty switching on their interpreting devices. We all knew what he referred to. He referred to the issue of hate speech and obviously to the recent murder of Mr Terre'Blanche. The hon Alberts is not here; I think he left the Chamber. Oh, there he is!
With regard to the issue of Mr Terre'Blanche, what is very difficult - and I want to be absolutely upfront about this - is that Mr Terre'Blanche never represented the view of the white community in this country. Never! Ninety-nine per cent - conservatively - never agreed with him. His murder was tragic, but this happens to blacks and whites and all South Africans, unfortunately, in our country, very often.
Now, I know the context in which the issue of hate speech was raised, and maybe one should say the following: It's very important in our country that those who are the defenders of our Constitution don't simply start off where those who were previously responsible for hate speech left off. It's very interesting that those people who, historically, were the paragons of hate speech, now want to use our Constitution to always find protection. [Applause.] And it is good; all South Africans now deserve the protection of our Constitution.
But around that whole debacle there's something that I haven't seen anybody notice, and let me be blunt about it: It was an African Minister and an African head of the SA Police Service who went to visit Mr Terre'Blanche's widow. Just think about that. If somebody had said to one of us 20 years ago that on the day Mr Terre'Blanche passes away, you will have an African Minister and head of police visiting his widow, people would have said, "Listen that's impossible." The Minister and head of police were graciously and very cautiously received by his widow, who was in mourning. Now, even in that there is a message.
The perpetrators have been caught and are now before a court of law, and we are all defending that process. So, even if we say hate speech is wrong, we should always see the hope that is in a certain situation. I think there is a lot of hope in that for South Africans - how we dealt with, and how we are dealing with, those issues. [Applause.
The hon member Shinn also raised the fact that this is a customer-driven industry - which is absolutely true - and that there shouldn't be too much government intervention. Now let me just convey here, as I conveyed to the portfolio committee, what our government, my own, the Deputy Minister and the department's approach to this industry is: We understand that this is an industry in which creativity is very important. Competition is fierce. You need new products all the time. You need people who are innovative.
So, if you have that, you never overregulate. That's why we gave an undertaking to this industry, not because we had to, but because we know what works. We said to them: "We are going to deal with you, not with a heavy hand, but with a light touch, to allow you to grow." But - and this is probably where we differ - we always said that nobody could ignore the skewed distribution and the result of what history produced in this country.
So, in that respect, as a government, we must have programmes to intervene. If we want a better balance in future, if we want to give people equal opportunities, then we must do X, Y and Z, a BEE Charter, the codes of good practice, and certain other interventions.
There is an intervention I would like to mention and on which I would like Members of Parliament to work with us - and it's not socialism. There are many European countries that have this model. The UK's one is very successful. This intervention is to advance social tourism: to give people with limited resources - modest income and physical ability - the ability to be part of the tourism industry and to enjoy what many other people are doing.
I don't think we are doing enough. If I look at our own budget, we have almost R1 billion - over R900 million - over the Medium-Term Expenditure Framework period for our Social Responsibility Programme. For the first years of that programme all government departments have decided to invest in a number of smaller projects.
The HOUSE CHAIRPERSON (Mr M B Skosana): Hon Minister, please wind up now.
The MINISTER OF TOURISM: I want to work with Members of Parliament to make major investments to ensure that we use that money, hopefully, for bigger projects, and that we give more South Africans, especially those from the working class, the opportunity to be part of this. I would also like to hope that the trade unions will work with us in that regard. Thank you. [Applause.
The HOUSE CHAIRPERSON (Mr M B Skosana): Thank you, hon Minister. Members, you are reminded that the Extended Public Committee on Trade and Industry will meet in the Old Assembly Chamber at 16:30 today.
The Committee rose at 16:22.