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4854 [Tuesday, 29 October 20133 SUMMARY OF PREVIOUS YEAR KEY FINANCIAL ANDPERFORMANCE RECOMMENDATIONS OF COMMITTEE3.1 2012/13 BRRR recommendations3.1.1 Summary of key financial and non-financial performancerecommendations made by CommitteeIn the 2012/13 Budget Review and Recommendations Report, theCommittee recommended amongst other things that the budget for theDepartment of Tourism be increased to:• Open Tourism offices and marketing hubs in African markets tohave marketing presence and conduct activations in theseemerging markets, as marketing intelligence indicates anincreasing demand for short haul instead of long haul travel.• Create optimal level of advertising that would in turn ensuregreater generation of jobs.• Implement strategies that will enhance development of domestictourism.• Facilitate implementation of strategies and programmes thathave been developed to achieve the objectives of the Nationaltourism sector Strategy.• Create more Full Time Equivalent jobs from the ExpandedPublic Works Programme, especially in rural areas.• Assist the SMMEs in funding their businesses for start-upcapital, staff training, and extension of existing tourismestablishments.3.1.2 Evaluation of response by Department and Minister ofFinanceThe National Treasury responded by saying the recommendations ofthe Committee were supported. Marketing South Africa to Africancountries is an important diversification strategy, especially during theeconomic downturn in the Eurozone. The Department of Trade andIndustry has agreed to transfer the tourism investment incentive to theDepartment of Tourism; the programme supports SMMEs and theupgrading of existing tourism establishments.The response by Treasury is not adequate to enable the Department tofulfil its mandate and address all the needs of the sector. The TourismIncentive Scheme that was transferred from the Department of Tradeand Industry had already been available in the sector for a number ofyears but did not make remarkable impact, especially to the SMMEs.The only change is that the fund will now be administered by theDepartment of Tourism.There is therefore a need for National Treasury to look closely atthe mandate of the Department of Tourism and the contributionthis sector is making to the economy. Treasury must acknowledgethe capacity of this sector to contribute to job creation, GDP andANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 147─2013