Queenstown paca promotion of the local economy in queenstown lukhanji
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Queenstown PACA ® : Promotion of the Local Economy in Queenstown / Lukhanji. Participatory Appraisal of Competitive Advantage. Involve local stakeholders Motivate local stakeholders to take an active role in an LED initiative Transfer know-how to local stakeholders and businesses

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Queenstown PACA ® : Promotion of the Local Economy in Queenstown / Lukhanji

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Queenstown paca promotion of the local economy in queenstown lukhanji

Queenstown PACA®:Promotion of the Local Economy in Queenstown / Lukhanji


What is participatory appraisal of competitive advantage paca

Participatory

Appraisal of

Competitive Advantage

Involve local stakeholders

Motivate local stakeholders to take an active role in an LED initiative

Transfer know-how to local stakeholders and businesses

Do a quick scan of the local economy

Assess and refocus ongoing local economic development activities

Identify strengths, skills, talents and opportunities

Identify business and LED opportunities

What is Participatory Appraisal of Competitive Advantage (PACA®)?


What have we been doing

What have we been doing?

  • Interviews with businesspeople and stakeholders in Queenstown / Lukhanji

  • Miniworkshops with

    • Tourism sector

    • SMME support agencies

    • Training and education institutions

    • Local business men


Structure of this presentation

Structure of this presentation

  • What is Local Economic Development (LED)?

  • What is the first diagnostic of Queenstown?

  • What are the first proposals to promote the local economy in Queenstown?


1 what is local economic development led

1. What is Local Economic Development (LED)?


What isn t local economic development

What isn’t Local Economic Development

Attraction of

new investment

= investment

promotion

Community

development

Skills

development

SMME support

+ development

Employment

creation

... in a segmented and fragmented way!


What is local economic development

What is Local Economic Development

Community

development

Attraction of

new investment

Employment

creation

SMME

development

Skills

development


How does local economic development relate to other activities

Local economic

development

Community development

Infrastructure

Employment

creation

Transport

SMME

development

Health

Energy

Poverty alleviation

Technology

Investment

promotion

Schools

Housing

HIV / AIDS

Water / sewage

Skills

development

Education

How does local economic development relate to other activities?

Local development

SMME

promotion


Why there is a tension between economic and community development

Principles of economic development:

Rivalry / competition

Invisible hand of the market

Survival of the fittest

Principles of community development:

Solidarity

Collaboration

Support for the weak and disadvantaged

Why there is a tension between economic and community development

Consequences:

  • It is important to separate economic development and community development in terms of organization and implementation

  • It is possible, and indeed essential, to seek areas of overlap, to create synergies, and to learn from each other


2 what is the first diagnostic of queenstown lukhanji

2.What is the first diagnostic of Queenstown / Lukhanji?


Sectors considered in the first queenstown lukhanji paca

Sectors considered in the first Queenstown / Lukhanji PACA®

  • Tourism Sector

  • Queenstown / Lukhanji as Distribution Hub

  • Queenstown / Lukhanji as Service Hub

  • General Observations


General observations strong points and opportunities

General observations:Strong points and opportunities

  • Underutilised industrial area

  • Availability of vacant factory premises

  • Existence of a number of large manufactureres

  • Dynamic businesspeople sincerely interested in the development of Queenstown / Lukhanji

  • Proactive approaching by interest groups to PACA Team

  • Comparatively low crime rate

  • Schools of outstanding quality in national terms


General observations weaknesses

General observations:Weaknesses

  • No active marketing of Queenstown / Lukhanji

  • Culture of Non-Cooperation

  • Fragmentation in business community

  • Not enough communication and information sharing taking place

  • Access and integration of new-coming businessmen is difficult

  • Sale and dismantling of vacant factory halls

  • Hawkers fill up sidewalks

  • Not enough coordination between some local government activities


Tourism sector strong points and opportunities

Tourism Sector:Strong points and opportunities

  • Potential source of continuous revenue

  • Location at N6-Road

  • Continuous support from Regional Tourism Office

  • Game reserve and its supportive industries

  • Bongolo dam

  • Opportunities for a range of outdoor activities

  • Considerable number of B&B accommodations available

  • Strong demand for:

    • Caravan site- 4 X 4 Trails

    • Hotel accommodation- Birding

    • Hunting & game sale- Fishing

    • Flying


Tourism sector weaknesses

Tourism Sector:Weaknesses

  • Lack of tourism awareness

  • Lack of knowledge on the needs /expectations of tourists

  • Insufficient Signage

  • Remote location of entrance gate to game reserve

  • Only few tourist activities available

  • Missing entertainment facilities (e.g. movie theater)

  • No hotel accommodation in Queenstown / Lukhanji

  • Difficult currency exchange

  • Lack of Transport Shuttle Services

  • No proper stopover of Tourist Bus-Routes

  • Location of Local Tourist Office


Queenstown lukhanji as a distribution hub strong points and opportunities

Queenstown / Lukhanji as a Distribution Hub:Strong points and opportunities

  • Central location within a large rural catchment area

  • Good road and rail infrastructure

  • Well established suppliers (hardware, furniture, motorspares, wide range of food etc.)

  • Should benefit from common supply chains (e.g. wood, steel)

  • Low rentals

  • Scope for a goods consolidator


Queenstown lukhanji as a distribution hub weaknesses

Queenstown / Lukhanji as a Distribution Hub:Weaknesses

  • No active marketing as distribution hub

  • Limited competition: a large number of competing distributors are facing high buying power = service not always customer-friendly

  • Decreasing buying power due to unemployment and increase in basic prices

  • High cost of transport

  • Long distance to main centers (Jo-burg, Cape Town, PE, Durban)

  • Inefficient and unreliable rail transport service

  • Unavailability of certain products


Queenstown lukhanji as a service hub strong points and opportunities

Queenstown / Lukhanji as a Service Hub:Strong points and opportunities

  • Large catchment area for banking and other service providers (150 km)

  • Tradition as a service and trade locality due to its location between Transkei and Ciskei

  • Most service requirements are offered in Queenstown / Lukhanji

  • Demand for better and more sophisticated services


Queenstown lukhanji as a service hub weaknesses

Queenstown / Lukhanji as a Service Hub:Weaknesses

  • People moving here perceived bureaucratic procedures required by the local administration as complicated

  • Not well-used courier services

  • SMME support agencies are often not focused on the needs of SMMEs – focused on funders

  • Customer service is not a priority – businesses are often very complacent

  • Banks do not meet the demands of business / customers

  • Signage and information are not inviting people off the main route

  • Unwelcoming attitude perceived by some people


3 what are the first proposals to promote the local economy in queenstown lukhanji

3.What are the first proposals to promote the local economy in Queenstown / Lukhanji?


General observations proposal 1

General ObservationsProposal #1:

  • Purpose: Restore of municipal park and provision of skills training

  • Proposal

    • Restore municipal park to create a more tourist-friendly appearance and to increase the leisure value

    • Use unemployed and unskilled workers to restore and subsequently maintain the park

    • As a secondary result those workers obtain skills of gardening and thus future job opportunities (garden workers, Garden services)


Tourism sector proposal 1

Tourism SectorProposal #1:

  • Purpose: Strengthening of Local and Regional Tourism Organisations

  • Proposal

    • Closer co-operation between private and public sector – make sure the LTO works

      • Local government to support the LTO and the marketing of Queenstown

    • Local government need to recognise tourism as an important growth sector

    • Leverage GTZ and DBSA technical assistance to structure and facilitate tourism activities

    • Only LTO registered members to benefit from joint marketing activities


Tourism sector proposal 2

Tourism SectorProposal #2:

  • Purpose: Marketing and information of Queenstown (Lukhanji)

  • Proposal

    • Create a brochure on Queenstown (Lukhanji)

      • Accommodation

      • Activities in the region

    • Review the current website initiative and contribute where possible

    • Engage with tour groups and passing busses

    • Collect information on how similar cities market themselves (benchmarking)


Tourism sector proposal 3

Tourism SectorProposal #3:

  • Purpose: Sharing and distribution of tourism related information

  • Proposal

    • Use the media to spread news and information regarding Queenstown tourism activities

    • Spread tourism statistics, tourist demands and suggestions to tourism establishments

    • LTO to become the hub of tourism information

    • LTO to be tasked with active marketing and spreading of information


Tourism sector proposal 4

Tourism SectorProposal #4:

  • Purpose: Signage to important tourism destinations to be improved further

  • Proposal

    • Signs and route signs to be erected that leads to important tourism destinations (e.g Game reserve, rock paintings etc)


Queenstown lukhanji as a distribution hub

Queenstown / Lukhanji as a Distribution Hub

  • Challenges:

    • Have to attract more business that will use Queenstown as a distribution base

    • Service of rail transport need to improve

    • Need to attract cargo consolidators


Queenstown lukhanji as a distribution hub proposal 1

Queenstown / Lukhanji as a Distribution Hub Proposal #1:

  • Purpose: Market Queenstown as a distribution hub

  • Proposal

    • Embark on a marketing campaign that will promote Queenstown as a distribution hub

      • Maybe consider an incentive to attract businesses

    • Involve existing distributors to address common issues

    • Identify empty factories that can be used as warehouses and market them


Queenstown lukhanji as a distribution hub proposal 2

Queenstown / Lukhanji as a Distribution Hub Proposal #2:

  • Purpose: Improve the inefficient and unreliable rail service

  • Proposal

    • Enter into negotiations with Spoornet & Department of Transport regarding service

      • Keep all businesses that can benefit from this service informed of progress

      • Make sure the service is not downscaled

    • Look at how other cities on similar routes assisted or used incentives for rail transport

    • Promote opportunities in rail consolidation and cargo handling


Queenstown lukhanji as a distribution hub proposal 3

Queenstown / Lukhanji as a Distribution Hub Proposal #3:

  • Purpose: Arrange for Department of Labour to present Skills Development Fund workshops

  • Proposal

    • Workshop must target business that can benefit from upgrading the skills of their workforce

    • Educate businesses about the procedures of SDF


Queenstown lukhanji as a distribution hub proposal 4

Queenstown / Lukhanji as a Distribution Hub Proposal #4:

  • Purpose: Motivate distributors to develop common/improved supply chains

  • Proposal

    • Educate distributors about the benefits of common & improved supply chains

    • Identify common suppliers and raw materials

    • Facilitate discussions between local business and suppliers of raw materials

    • If transport services or cargo handling is insufficient then identify the gaps


Queenstown lukhanji as a distribution hub proposal 5

Queenstown / Lukhanji as a Distribution HubProposal #5:

  • Purpose: “Buy Local” campaign

  • Proposal

    • Promote local suppliers of the region to business and community (chickens, vegetables, etc)

    • Identify gaps and opportunities in the service offerings and stimulate the closure (GTZ to assist)

    • Discuss “supply problems” with large retailers

    • Consider a monthly “market in the park” for art, craft and local producers


Queenstown lukhanji as a service hub proposal 1

Queenstown / Lukhanji as a Service HubProposal #1:

  • Purpose: Enter into discussions with banks to improve their service

  • Proposal

    • Arrange a meeting with banks and express concerns of business and community

    • Request services like Foreign exchange service, faster queues

    • Reward positive response with support from local government and media coverage


Queenstown lukhanji as a service hub proposal 2

Queenstown / Lukhanji as a Service HubProposal #2:

  • Purpose: Reward good service & “Customer friendly campaign”

  • Proposal

    • Increase the scope of current service award to include categories like “best tourism establishment”, “best attraction” etc

    • Increase the involvement of media, associations and community in the process (do it BIG)

      • Use this process to educate people about customer service and customer focus

    • Create awareness of good service

    • Arrange for “Customer Service Training” in area

      • access Skills Development Fund (SDF)


Queenstown lukhanji as a service hub proposal 3

Queenstown / Lukhanji as aService HubProposal #3:

  • Purpose: Promote Queenstown / Lukhanji as a service hub to the region

  • Proposal

    • Town already known as a service hub to agriculture, expand this to other sectors

    • Market Queenstown as a service hub

      • Create a directory of services

    • GTZ to assist with the stimulation of demand between service providers and small business needs in the next few months


Thank your for your attention

Thank your for your attention!


The paca team in queenstown

The PACA® team in Queenstown

  • Christian Schoen (PACA® consultant)

  • Shawn Cunningham (GTZ Project Manager)

  • Shakes Mandaba (LED-Councilor Lukhanji)

  • Ian van Dyk (LED-Officer Lukhanji)

  • With support from P.J. Cloete (Councilor Lukhanji), Donovan van Wyk (Admin Director of Lukhanji), Charles Lubbe (Admin Staff of Lukhanji)


Contacts

Contacts

  • Christian Schoen ([email protected])

  • Shawn Cunningham ([email protected])

  • Ian van Dyk ([email protected])

PACA® is a registered trademark of mesopartner: www.mesopartner.com


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