portfolio committee briefing on strategic objectives and 2010 fifa world cup readiness n.
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PORTFOLIO COMMITTEE BRIEFING ON STRATEGIC OBJECTIVES AND 2010 FIFA WORLD CUP READINESS. National Department of Tourism 18 August 2009. Overview of the presentation. Tourism at a glance (Trends and institutional arrangements)

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portfolio committee briefing on strategic objectives and 2010 fifa world cup readiness


National Department of Tourism

18 August 2009

overview of the presentation
Overview of the presentation
  • Tourism at a glance (Trends and institutional arrangements)
  • Overview of Strategic Objectives, Priorities and Performance Areas
  • Rational for choice of the Priorities and Key Performance Areas (KPA’s)
  • Brief overview of indicators and Targets (2009/10)
  • Progress on 2010 Preparation
  • Lessons from the Confederation Cup and British and Irish Lions Tour
  • National Tourism Strategy Development Process
  • Medium-Term Budget
  • Monitoring and Evaluation Mechanisms
tourism role players
Tourism Role Players



3. Safety and Security, Department of Health, Department of Transport

4. TECSA and NDT

Skills & Service Levels

Product and


2. Tourism Enterprise Partnership & NDT

Strategy Driven and coordinated by NDT

5. Theta, NDT, Provinces & Industry


Marketing & Branding

6. Department of Transport (land and air)


and Investment

1. South African Tourism, Provinces and Industry


Assessments &


8. Tourism Grading Council, Industry, Register of Guides (NDT and provinces)

7. The dti

establishment of the national department of tourism ndt
Establishment of the National Department of Tourism (NDT)
  • Presidential proclamation (strengthening tourism)
  • Completed resource split of DEAT
  • Draft Sector strategy in place
  • Discussion document on legislation development in place
  • Purpose, Roles, Functions and draft structure in place

South Africa continues to outperform global tourism growth. Global international arrivals grew by 1.3% in 2008 while arrivals to South Africa grew by 5.5%

Year-on-Year Change in Foreign Arrivals to each region

% Change

Note: UNWTO estimates incorporate provisional data for some regions

Source: Statssa Tourism & Migration release December 2008, SAT analysis; UNWTO World Tourism Barometer, Jan 2009

arrivals to south africa continues its upward climb reaching 9 6 million arrivals in 2008
Arrivals to South Africa continues its upward climb reaching 9,6 million arrivals in 2008

Foreign Tourist Arrivals to South Africa, 1966-2008

9,6 million arrivals in 2008


World Cup


First Democratic Elections

Sanctions against South Africa lifted

Arrivals (Millions)

Nelson Mandela released

State of Emergency

Sanctions Era

  • 1970s and 80s – Stagnation
    • Stagnation drove low investment, focus on narrow white domestic market and costs
  • 1990-1998 – Growth
    • Initial period of short-term profit-taking followed by period of investment growth and entry of foreign players
  • 1998-2004 – Cyclicality
    • Global events, currency volatility drove uncertainty and short-term strategy by firms
    • Investment rates remain weak overall

*Comments captured above based on opinion of participants interviewed and anecdotal evidence

Source: StatsSA, Tourism & Migration release

market share
Market share
  • Tourism contribution in 2008 8,4% (R178,6bilion GDP, number of jobs 1 014 000)
  • Estimate Global decline by 8% to April 2009
  • UN Would Tourism Org (UNWTO) projects a further 5 – 6 % decline globally
  • 2.5% decline in arrival in the 1st 3 months
  • Events driven increase/growth in the 2nd quarter (Confed Cup, Indian Premier League and Lions Cup)
  • Land Market still the most resilient
  • Spend per tourist has not been affected (air travelers are those less affected by economic crisis)
  • Distribution continues to be a challenge - Business Tourism (main driver behind the decline) and land market driven by shopping experience
  • Challenges include – economic crisis, health and crime
  • The main players in the industry are transformed
  • Sector codes acquired legal status in the 1st quarter of 2009
  • Matching facility in place
  • The industry is dominated by businesses with turnover of less than R5m (mainly family businesses)
  • Challenges regarding access to finance for deals
  • 1st compliance report due end of the year
  • Challenges with multiplicity of the legislative framework for government procurement
  • High turnover rate of black managers due to demand
  • Limited investment in skills development
enterprise development
Enterprise Development

1st quarter:

  • Over 342 SMMEs (246 of which are HDE) assisted to a tune of R83,992,525 worth of transactions
  • 8 380 Non hotel rooms signed for inclusion in accommodation inventory for World Cup™
  • 321 Emerging tour operators trained
  • Heritage clusters developed in four Host Cities, namely Cape Town, Durban, Nelspruit and Soweto
enterprise development1
Enterprise Development

For 2008/9 financial year alone:

  • Increase in turnover of R568 million generated for enterprises supported tthrough TEP
  • 9 879 Person years of work created on
  • 1 436 Enterprises assisted through the Business Development Fund,
  • of which 66% were historically disadvantaged
  • 944 Tourism small businesses trained on Business Skills
  • 1 222 Tourism small businesses trained on SA Host
  • 3 068 Tourism small businesses trained on tourism toolkits
  • 60 Tourism small businesses mentored
  • 50 three-year growth strategies developed for small businesses with
  • a turnover of more than R1million and operating for longer than 5
  • years
  • 4 Tourism clusters developed
  • 285 Craft sales generated
  • 3 053 Non-hotel rooms signed up for 2010
skills development
Skills development
  • Tourism Career Fair (hosted 15 000 learners in 2008/9 – expecting 20 000 in 2009/10)
  • 4030 Ambassador trained
  • Excellence programme in place
  • 1657 tourism SMMEs have been trained in tourism related business skills.
  • 6 graduates where put on special hotel management training with a hotel group in Canada.
  • 65 tourist guides across provinces received foreign language training in Spanish, Portuguese, French and German all of which are languages spoken in soccer loving countries.
  • Finally, an agreement has been struck with Spain Embassy for training of 40 tourist guide in September 2009.
quality assurance and removal of blockages
Quality Assurance and Removal of blockages
  • 610 new properties graded in the 1st quarter
  • 1 242 properties renewed their grading
  • There is a number requests for late renewals (within policy provision)
  • Universal access still a challenge (to be addressed in the new strategy)
  • Need to strengthen quality assurance beyond just accommodation grading
  • Reduction of visa turn around times – Nigeria, China etc
  • Rollout of the airlift strategy
  • Responsible Tourism Guidelines for industry in place
broader medium term strategic objectives strengthening the tourism sector
Broader Medium-Term Strategic Objectives strengthening the tourism sector
  • Establish a National Vision and Strategy for the Tourism Sector
  • Establish a National Legal Framework for the Tourism Sector
  • Establishment of a National Department of Tourism
  • Grow and sustain the market share (domestic and International)
  • Develop and Transform the Tourism Sector
  • Create Jobs and Alleviate Poverty (to split from the Environment Sector EPWP)
  • Promote corporate and cooperative good governance
key priorities and kpa s mandate related
Key Priorities and KPA’s (Mandate related)
  • Development of the National Tourism Strategy
  • Review the National Tourism Legislation
  • Ensure South Africa's (Tourism) readiness for the 2010 FIFA World CupTM
  • Promote Tourism Product Development (Including product diversification – sports, medical, events, cultural, business tourism etc)
  • Sustainably grow the sector
  • Sustainable Job Creation
  • Tourism Sector Transformation
key priorities and kpa s mandate related1
Key Priorities and KPA’s (Mandate Related)
  • Implementation of the Social Reasonability Programme linked to EPWP (Job creation, skills and infrastructure development)
  • Ensure adequate and relevant skills availability (HRD strategy implementation)
  • Quality assurance for tourism products and services (accommodation grading and system review)
  • Promote Responsible Tourism (Good corporate citizenship by Industry – includes Universal Access Principles)
  • Marketing South Africa as an international destination of choice (Growing the GDP, Job creation, tourist spend, geographic spread and seasonality)
  • Promote domestic tourism
key priorities and kpa s governance related
Key Priorities and KPA’s (Governance Related)
  • Enable Parliamentary oversight
  • Strengthen Tourism Cooperative Governance (improve intergovernmental Cooperation and Coordination)
  • Ensure quality stakeholder engagement
  • Ensure financial resourcing of the sector strategy
  • Ensure availability of adequate human capital –(government capacity)
  • Facilitate risk management (including better understanding of sector vulnerabilities)
key priorities and kpa s governance related1
Key Priorities and KPA’s (Governance Related)
  • Facilitate affirmative procurement (use of government procurement lever to promote transformation)
  • Improved knowledge and information management (including access to quality and timely sector information)
  • To be a transformed employer of choice
  • Ensure effective entity oversight
  • Maintain high standards of accountability and responsibility (achieve unqualified audits)
2009/10 Targets

Skills availability in the tourism sector.


2010 Tourism Organizing Plan Focus Areas

  • Create a national content management platform
  • Create interface to enable transaction booking
  • Research WC demand to better understand profile, perceptions and expectations
  • Scale-up SAT call-centre
  • Create a 2010 national tourism volunteer program
  • Identify and utilise opportunities to capture information about 2010 arrivals
  • Develop a robust database of available products
  • Coordinate event planning to maximise tourism value from the event
  • Coordinate development and upgrading of attractions




Events &Attractions



Skills & Service Levels



  • Address poor service levels and skills shortages at key consumer touch points






Transport & Safety

Marketing & Branding

  • Engage with key stakeholders in SA and neighbouring countries to package products for 2010 and to manage displacement
  • Deliver the brand to convert arrivals to brand ambassadors
  • Identify 2010-related opportunities to brand South Africa as a world-class tourism destination
  • Manage displacement


  • Ensure sufficient tourism-friendly public transportation to tourism focal points
  • Ensure completion & implementation of a national tourism safety plan






  • Increase the number of graded establishments
  • Identify existing and alternative accommodation for short-term spikes in demand







2010 Accommodation Availability – June Audit

  • This data does not include cancelled and overdue properties
  • This data was extracted on the 20th of this month
  • - These stats do not include SAT reported stats in the accommodation sector for: Resorts, Cultural, Golf Estates, Health & Spa, Romantic & Honeymoon, Spiritual and Unusual - this amounts to 1872 properties
  • ₁ Subject to updates
  • ₂ includes Hotel & Non-Hotel Accommodation (defined as: Timeshare, Apartments, SMME, Team Base Camp and SANParks
skills and service levels
Skills and Service Levels
  • Sector Skills Development Strategy in place and under implementation
  • Tourism Ambassador Programme is in place and is being implemented. 4030 Ambassadors have been trained for the confederations cup
  • Tourism Service Excellence Strategy is in place and is being implemented. 250 000 front line staff will be trained before 2010 World Cup
  • Up-skilling of Tour operators and Tourist guides (language training)
  • Training of SMME’s
transport and safety
Transport and Safety
  • The National Tourism Safety and Awareness Strategy and its implementation plan is in place. 6 of the nine provinces have adopted the plan.
  • The Department of Transport and Passenger Rail Agency of South Africa have committed 50 semi luxury busses to the LOC. 420 semi luxury busses will be provided to Match. 110 busses will be provided to general spectators.
  • Aviation strategy and implementation plan is in place
  • Stakeholder and consumer web portals are in place – still to ensure integrated information services
  • GIS mapping of graded establishments has been completed. Plan is underway to map all tourist attractions and link them to GIS to enable visitors to move freely
  • Research is undertaken every 6 months. First data projects that 410 000 visitors will come to South Africa
  • 5 new visitor information centres are being developed in host cities. State of completion Polokwane 20%, Bloemfontein 15%, Rustenburg 80%, Nelspruit 80%, Port Elizabeth 100%
  • 2010 travel guide is in place and more than 20 000 guides have been distributed
  • Working towards establishment of a 24/7 tall free number
  • Working towards establishment of fan embassies
  • Global Marketing Partnership reaching over 2 billion people across the world through broadcasters such as:-
    • CNN
    • BBC
    • Eurosport
    • News corporation
  • Domestic marketing Campaign Encouraging South Africans to be good hosts by doing the following:
    • Fly the SA Flag
    • Learn the national anthem
    • Support Bafana Bafana
    • Learn the diski dance
  • More marketing required for the African Market and other potential world Cup qualifiers
events and attractions
Events and Attractions
  • 2010 was promoted in Columbia during the UNWTO commission
  • Events were also hosted in Netherlands, France, Cameroon, Poland, London and at RETOSA
  • 2010 promotional material will be distributed at ATA in Egypt
  • Stadiums developed to serve as tourist attractions. Moses Mabhida stadium will incorporate the Cable Car arch. Green Point stadium will provide the view of the city (part of the legacy programme)
2010 coordination
2010 Coordination
  • The Tourism 2010 Cluster which is co-chaired by The department and SAT is in place and meetings are held on a quarterly basis
  • The Department participates in the 2010 IMC, Host Cities Forum, 2010 Environment Working Group, 2010 Temporary Signage Working group, 2010 working group on public viewing.
  • The department also participates in Presidential Izimbizos on 2010 as well as economic opportunities workshops on 2010
  • Reportback through MINMEC
2010 challenges
2010 Challenges
  • Structured coordination
  • Limited budget
  • Limited focus on human element issues
  • Limited focus on positioning the event in Africa
  • Limited marketing due to limited budgets
  • Lack of marketing targeted at countries that are likely to qualify
  • Limited innovation on how to take advantage of 2010 opportunities
confederations cup lessons attendance
Confederations Cup Lessons - Attendance
  • 7.5 out of 10 awarded for hosting the event – should be aiming for 10/10
  • 584 984 participants – 2% lower than Germany Confederations Cup
    • Higher than Korea Japan (34 823)
    • France (30 731)
  • 510 008 tickets sold
confederations cup lessons safety and security
Confederations Cup Lessons -Safety and Security
  • 6000-8000 personnel deployed per host city
  • 39 related criminal cases reported
    • Most publicized Brazilian and Egyptians room break ins
    • 1 accident reported – German Journalist died
confederations cup lessons access and transport
Confederations Cup Lessons -Access and Transport
    • Special event visa piloted on Egypt
    • Park and ride shuttle service used for ticket holders
    • Special trains arranged during matches
    • Inter-city transport arranged during matches
  • Crowd management not up to scratch
  • Signage around stadia not clear
confederations cup lessons volunteers
Confederations Cup Lessons - Volunteers
  • 3994 volunteers deployed trained in partnership (LOC, DEAT and THETA)
    • Airports
    • Stadia
    • Host City Centre
    • LOC Offices
  • DEAT and relevant provincial officials deployed at host cities for support, monitoring and evaluation of the programme

Confederations Cup Lessons - Volunteers

  • Volunteers not trained in clearly defined competencies
  • Most of them clueless of their role
  • Recommendations – need for training volunteers in clearly defined competencies (and develop a host booklet on the following)
    • A host
    • 2010 expert
    • City and country guide
    • Fairness and security
    • Transport
    • Accommodation
confederations cup lessons marketing
Confederations Cup Lessons - Marketing
  • Limited marketing in participating countries
    • Evident in Cairo, where limited awareness on Univisa to be piloted for 2010.
  • An opportunity to promote domestic, regional and and sub-regional tourism
  • Identified marketing opportunities for 2010
confederations cup lessons information provision
Confederations Cup Lessons - Information Provision
  • Consumer Portal and help line in place but not aggressively marketed
  • Tourism Spatial Viewer in place but not aggressively markets
  • Limited provision of information on the event at the key gateways to South Africa and to the host cities
  • No demarcated information points targeted at people coming to the event
  • No information on what to do after 90 minutes of the game – unlike Rugby
confederations cup lessons information provision1
Confederations Cup Lessons - Information Provision
  • Ensure that consumer portal has relevant information to the visitors in all languages
  • Ensure that the call centre is available 24 hrs to provide information on the event in all languages
  • Ensure that the above are aggressively marketed
  • Establish fan embassies or information centres at the entry points to South Africa and to the Host Cities
  • Information centres to provide information on the event, about South Africa, Accommodation, What to do, Places of interest and be manned by competent staff to provide guidance to the visitors
  • Information packs to be produced to be given to visitors at entry point for free about the event and about South Africa in all languages
confederations cup lessons accommodation
Confederations Cup Lessons - Accommodation
  • Accommodation guide not in place
  • No sign up for 2009 Confederations Cup
  • Some areas have adequate accommodation and some do not
  • No system in place to address challenges in some of the areas
  • Tourism industry players in Zimbabwe disagree with Match contract
confederations cup lessons accommodation1
Confederations Cup Lessons - Accommodation
  • 2010 accommodation guide to be developed and made available at all information centres and entry point
  • Strategies to be put in place to address accommodation challenges in certain areas
    • Transport linkage to satellite accommodation
    • Use of temporary structures to accommodate fans
    • Use of Universities and other available accommodation to accommodate fans
confederations cup lessons other issues
Confederations Cup Lessons - Other issues

Local character not showcased

  • Local food not sold in stadia
  • Initial FIFA ticketing system not condusive for the South African soccer loving people who do not have access to internet
  • International complaints about vuvuzela
  • Park and ride system not efficient
  • Capacity of internal airlines to carry luggage
lessons british and irish lion tour
Lessons - British and Irish Lion Tour
  • More organised
  • 30 000 fans
  • 23 000 fans descended to Durban
  • 1000 tickets were not sold
  • Significant spend on accommodation, food, drinks and travel
  • Centurion Hotel Waterfront – fully booked for 2 months due to rugby
  • Tshwane Guesthouses fully booked
  • British fan hijacked and mugged
  • Challenge for domestic flights to carry luggage
national tourism strategy development process
National Tourism Strategy … development process
  • Progress to date:-
    • Conducted a review of existing plans and strategies
    • Developed a draft strategy framework
    • Minister has had 5 stakeholder road shows
    • Held 5 departmental stakeholder workshops
  • Expert panel was appointed by the Minister
    • first workshop 6 August 2009 to formulate vision & mission
    • next workshop scheduled for 1 September 2009
  • Draft for public comment released September – with additional workshops in remaining 4 provinces
  • Strategy finalised November
  • Follow-up session to be scheduled with Members to discuss the outcomes of the road shows and the actual strategy

NDT Budget 2009/10 – 2012/13


overview of the presentation1
Overview of the Presentation
  • Baseline
  • Allocations per Programme/Sub-programme
  • Graphical presentation of MTEF Baseline
  • Additional request for MTEF period
  • Monitoring and Evaluation Mechanism
additional requirement
Additional requirement

Additional requirement: PHASE 1 TO 3