National Tourism Sector Strategy - Department of Tourism

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1.2 Strategic frameworkThis section presents the global and national contextualframework within which this strategy has been compiled.1.2.1 Global contextTourism is one of the largest industries in the world.However, it was hard hit by the global crisis, with the traveland tourism GDP contracting by 4,8% in 2009. However,according to the World Tourism Organisation’s (UNWTO)January 2011 report, global international tourists arrivalswent up by almost 7% in 2010 compared to the sameperiod 2009. This is a good recovery following a declineof 2009 which was due to factors such as the globaleconomic recession. Emerging economies remain themain drivers of this recovery for the tourism sector. Africa,the only region that experienced a positive growth in2009 continued to grow at a rate of 6%in 2010.Mega events were significant contributors to globaltourism growth in 2010, through events such as WinterOlympics in Canada, the Shanghai Expo in China, theFIFA World Cup in South Africa and the CommonwealthGames in India.According to World Travel & Tourism Council’s (WTTC)estimates, global travel and tourism sector’s contributionto GDP is expected to rise from 9.3% in 2010 to 9.7%by 2020. It further estimates that total employment isexpected to rise from 235,785,000 jobs (8.1%) of globalemployment to 303,019,000 (9.2%) by 2020.In addition to the above expected tourism performancepost-2009, the UNWTO proposed a “Roadmap toRecovery” for the tourism industry in the aftermath of theglobal economic crisis. As listed in Table 1 below, thisdocument, presented in Kazakhstan in October 2009,outlines 15 recommendations in three action areas,namely resilience, stimulus and the green economy.I. RESILIENCE II. STIMULUS III. GREENECONOMY1.Focus on job retention and sectorsupport6.Create new jobs, particularly in smalland medium enterprises (SMEs)11.Develop green jobs and skillstraining2.Understand the market and respondrapidly7.Mainstream tourism in stimulus andinfrastructure programmes12.Respond effectively to climatechange3. Boost partnerships and competition 8. Review tax and visa barriers to growth 13.Profile tourism in all greeneconomy strategies4. Advance innovation and technology 9.Improve tourism promotion and capitaliseon major events14.Encourage green tourism infrastructureinvestment5.Strengthen regional and interregionalsupport10.Include tourism in aid-for-trade anddevelopment support15.Promote a green tourism culturein suppliers, consumers andcommunitiesTable 1: The proposed “Roadmap to Recovery”3
Despite the current difficulties facing the tourism industryas a result of the global economic situation, the industryis resilient. Previous crises, such as the 9/11 terroristattacks in the United States in 2001, the severe acuterespiratory syndrome/avian flu outbreak in Asia in 2003,the two Gulf wars, the tsunami in Thailand in 2004, theAsian financial crisis of 1998, and the oil crisis of the late1970s and early 1980s, all resulted in very small declinesin global tourist arrivals, and the industry continues tomaintain a long-term arrivals growth trend of about 4%per annum.However, the industry worldwide continues to beaffected by a number of factors. Global exchangerate volatility, oil prices and fuel hedging costs affectairline profits and tourist volumes alike. Although jet fueland crude oil prices are still significantly below the 2008peak, they are rising steadily. Oil prices have an impacton aviation fuel prices, the cost structure of the globaltourism market, and the affordability of access to longhauldestinations, such as South Africa.A further cost driver relates to the policy response toclimate change. Of particular concern is the absence ofa multilaterally agreed regime for managing internationalaviation emissions, and the imposition of discriminatory,unilateral taxes, which are adding significantly to thecost of travel for already-weak leisure travellers fromEurope. The new aviation taxes in the United Kingdom,Germany and Austria are expected to add 2–4% to ticketprices, with a material adverse impact on passengernumbers, which are already weak from Europe. Pressureis building up to make this a collective public policy issue,and various long-haul destinations in the developingworld are coordinating efforts to call for a multilaterallyagreed framework, and, at the very least, that revenuecollected for so-called green taxes on international traveland tourism be earmarked for green innovation andgrowth in the sector, with full involvement of the sector’sstakeholders. The principle of pricing carbon to removemarket distortions and internalise the cost of negativeexternalities is not disputed. What is of concern is theimposition, outside any multilateral framework, of arbitrarytaxes on an extremely price-sensitive transnational sector.Despite travel demand being pretty robust, consumerconfidence in the aviation sector has not recovered inthe same way as business confidence. Globally, airlinesfind themselves under pressure, with passenger numbershaving declined by some 5% in 2009. Airline analystsexpect headwinds in leisure travel to continue for up toanother three years, especially from Europe, and a midcyclemarket slowdown in passenger numbers is alsoforecast for 2011. This risk is exacerbated by the shiftfrom government fiscal stimulus to austerity measures inmuch of the Eurozone. That said, future prospects aremore upbeat, with 2,5% growth in air travel demandexpected in North America and 3,4% in Europe for 2010.An average annual increase of 8,4% over the next 20years is forecast for China.Changes in technology have also resulted inmajor changes in the way the tourism industry doesbusiness. The Internet has become an importantsource of information for travellers, providing themwith an opportunity to obtain information both directlyfrom destinations and tourism businesses as well asfrom fellow travellers through social networking, blogsand travel advisory websites. Where being wirelesslyconnected was something unusual a couple of years ago,it is now expected that travellers will be provided with anopportunity to connect. New technology could facilitate aplatform for unlimited choices, where tourists tailor-maketheir desired experiences, and will increasingly makelong-haul destinations more accessible in the globalmarketplace. However, it will also make competitiontougher, and, as such, also poses a threat.Technology is increasingly substituting the traditionaltravel agent and other commercial enterprises asthe chief mediator between customers, tourismdestinations and a range of travel services. In future, theintegration of information technology, mobile technology(‘m-commerce’), social media and e-marketing willincreasingly drive the choice of destinations, the tailoringof holidays, and new ways of booking and payingfor travel. That said, this is a rapidly evolving spacecharacterised by the parallel rise in mobile technologyand social media. It is not clear as yet how social mediawill evolve in the next few years, and which technologymedium will win the race in the consumer mindset.Travel and tourism have also begun to establish its placeon the green growth agenda. The importance of thegreen economy is highlighted as one of the three focusareas of the “Roadmap to Recovery”. According toalmost half of European business travellers, companyenvironmental policies affected their travel behaviours.Global sustainable tourism criteria were released inOctober 2008, and more and more travellers areinterested in finding out more about the local socialand environmental issues before booking a holiday. Acarbon-constrained world will not affect airlines alone. Infar less than a decade, a low-carbon value chain for the4
Page 1 and 2: TourismNational TourismSector Strat
Page 3: TABLE OF CONTENTSForeword: Minister
Page 7 and 8: The work that has been undertaken,
Page 9 and 10: within the department to establish
Page 11 and 12: Brandwag - Free State Province
Page 13 and 14: NAAMSANCBNDTNEDLACNGONational Assoc
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Page 23 and 24: 3. Strategic objectives,targets and
Page 25 and 26: Objective FocusMeasuresand targets
Page 27 and 28: Objective Focus3. To increasedomest
Page 29 and 30: Objective Focus6. To entrench atour
Page 31 and 32: Objective FocusMeasuresand targets
Page 33 and 34: 4. Cluster actionsAction plans, con
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Page 37 and 38: CLUSTER 2.1: Tourism growth anddeve
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Page 41 and 42: 2.1.4 Business and events tourismOv
Page 43 and 44: ActionWithin the municipal tourism
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Page 47 and 48: application procedures. Also, certa
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Page 51 and 52: ActionEstablish an MOU between the
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Page 57 and 58: 4.2 Safety and securityOverviewStro
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Page 65 and 66: InternationalorganisationsFunding a
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Proposed instiutional structure for
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Arrangements at metro levelAs the g
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8.2 Intergovernmental and stakehold
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Representing Area Panel Member Desi
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National Tourism Sector Strategy - Department of Tourism

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