5. Critical successfactors for sustainablecompetitivenessThe following factors are critical for the successfulimplementation <strong>of</strong> the NTSS:• Continuously and proactively aligning the NTSS(which should ideally be updated annually) withkey developments and trends in the macro(technological, environmental, socio-cultural,political and economic), competitive and marketenvironments. Appropriate benchmarks, indicatorsand evaluation mechanisms are essential.• Strategic and visionary leadership driven by anagreed, shared and inspirational vision, a set<strong>of</strong> guiding values and strategic priorities, which areaccepted and embraced by all public and privatesectorstakeholders• Addressing community participation andbeneficiation as an underlying and cross-cuttingstrategic priority• Giving strategic priority to people development(human resources and capacity building)• Continuously advocating tourism among allpoliticians and opinion leaders as a strategic andsustainable industry, and a key contributor to GDPand job creation in South Africa (from the national tothe local levels), which require appropriate funding• Ensuring that future tourism product developmentand packaging are value and market-driven andunderpinned by a culture <strong>of</strong> service excellence• Ensuring and sustaining a powerful and distinctivedestination brand, competitive positioning andinnovative marketing strategy in the ‘new’ tourismmarketplace, aligned across national, regional andlocal levels• Strategically managing reliable, timely and accessibleknowledge (such as trends, competitors, marketsand strategies) and research as a key to futuretourism planning, marketing and management <strong>of</strong> theresource base• Ensuring a results-driven, streamlined, dynamicand adaptable tourism structure from national tolocal level, with clarity on roles, responsibilities andrelationships (avoiding unnecessary bureaucracy)• Leveraging mutually beneficial partnershipsregionally and between stakeholders at all levels (in aspirit <strong>of</strong> co-option across political borders)• Continuously focusing on sustainablecompetitiveness and balancing economic, socialand environmental issues• Influencing a review <strong>of</strong> the airlift strategy, andactive participation in its implementation to improvecapacity and access• Ensuring that effective risk mitigation plans are inplace• Continuously realigning the target markets withthe changing market landscape to balance theportfolios47
6. <strong>Strategy</strong> risk factors<strong>National</strong> strategies are particularly susceptible torisks, some <strong>of</strong> which can be controlled and some not.Pre-empting problems requires skill, experience andknowledge. <strong>Strategy</strong> risk is generally seen as any futureincident that will negatively influence the successfulimplementation <strong>of</strong> the NTSS. In many texts on strategies,‘risk’ refers to safety risks, financial risks, legal risks,natural disasters or risks associated with politicaldevelopments. Each <strong>of</strong> these risks may result in failure tomeet some <strong>of</strong> the NTSS targets or objectives.Risk management, therefore, can be defined as theprocess <strong>of</strong> identifying these risks, assessing them, andreducing their potential impact on the overall strategy. Itis as much about identifying opportunities as avoidingor mitigating losses. The process would need to bemanaged throughout the implementation phase.Some <strong>of</strong> these risk factors are complex and may notbe within government and/or industry’s control. Thesewould require proper analysis and understanding <strong>of</strong> theglobal environment that is affecting the sector, so thatadjustments are made where possible. The followingstrategy risks factors have been identified:• Global currency exchange ratesThe global currency dynamics, if not managed well,may result in a full-scale trade war among countries.This will inevitably have an impact on whether or notthe NTSS targets are achieved.• Global economic downturnEvidence has shown that, as a consequence <strong>of</strong> therecession, the industry encountered low consumerspending and a decrease in tourist numbers astravellers looked inward within their destination. Thismeans that destinations should try to s<strong>of</strong>ten the blowby “exploring a framework for a visitor economy” 17by, among others, rebalancing portfolio markets andstrengthening domestic and regional tourism. Thereis ample evidence that other countries, such as Chinaand the United States, have built on the strength <strong>of</strong>their domestic/regional tourism.• Macro-economic policyA tighter fiscal environment (government austeritymeasures/cuts in international marketing budgets) willthreaten tourism targets. Therefore, there is a needfor the country to balance its fiscal policy, its goals <strong>of</strong>attracting foreign investment, and its achievement <strong>of</strong>government priorities.• International or national terrorismTerrorism is a major concern for tourists generally.Especially when hosting major events and attractingglobal media attention, tourist destinations couldbecome targets for terrorism. Therefore, the state<strong>of</strong> safety and security has to be taken into accountin the risk management process. Also important isthe awareness about the cyber-terrorism and itsdevastating effects on the tourism value chain• Natural disasters and climate changeThe potential and likelihood <strong>of</strong> international andnational disasters, such as the 2010 volcaniceruptions in Iceland and the 2004 tsunami in Thailand,could pose a stumbling block for meeting the targets.• Breakdown in multilateral approach to globalgovernance mattersA lack <strong>of</strong> cooperation and unilateral decision makingon matters <strong>of</strong> global significance with specific tourismimplications, such as the implementation <strong>of</strong> carbontaxes for air travel, present a particular challenge tolong-haul destinations.• Political unrest/civic strifeActs <strong>of</strong> political or social unrest have an impact on thebrand <strong>of</strong> the country as a tourist destination, whichultimately affects visitor arrivals.• Dependence on foreign touristsAn overdependence on foreign tourists couldprove to be fatal to the economy. Internationaldevelopments, such as the massive retrenchmentsrecently experienced in the United Kingdom, therandom issuance <strong>of</strong> travel advisories on South Africadue to perceptions <strong>of</strong> crime, and the imposition <strong>of</strong>strict visa regimes, do call for market and productdiversification. To South Africa, such diversificationcould mean developing a domestic tourism growthstrategy and targeting new markets within the region(African markets).• CrimeThe capacity or lack there<strong>of</strong>, to decrease crime levelsmay brand South Africa as an unsafe destination.The responsible portfolio departments will need todevelop tourism-oriented safety plans to support theNTSS objectives.48