FEDHASA Presentation to Portfolio Committee on Tourism

21 February 2012

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Introduction• FEDHASA in process of reviewing strategic plan• Key priorities that have been identified to realise objective

– FEDHASA is recognised and respected as the prime representative for the South African hospitality industry

• Strategic Priorities– Build Trust– Define Organisation– Deliver Relevant Value– Deliver Products– Ensure Viability– Establish Identity– Promote Product– Build Government Relations– Enable Training

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Enterprise development and partnerships

• Sectors of tourism– Hospitality focus– Other sectors

• Types of hospitality enterprises - range spreads– Big hotels– Lodges– Guest houses– Self catering– Bed & Breakfast

• Partnerships for– Development– Providing services– Training

• Stakeholder partners– Government– Consumers– Labour

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Enterprise development and partnerships

• Resources available– DTI grants for small players (not easy to access due to rules)– Skills Development re: Educator programme

• Training & development– Capacity of hospitality host properties– Discipline & commitment from learners

• Needs:– Revisit TECSA

• Review status• Develop new prioritieS

– Funding access for first timers– Market access for smme’s– Re-establish & fund the concept & practise of "apprenticeship"

• Trainers• Learners

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Initiatives to increase domestic tourism development

• Types of domestic market– Corporate– Leisure

• Destination marketing initiatives• Focus areas

– Geographic & Seasonal– Opportunities for focus

• Promotions– SAT - "Short Left"– Own Big & Small industry players

• Needs• Revisit "Short Left“

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The tourism sector contribution to development, growth and job creation

• Guest Houses rezoning takes long and costly• Bed & Breakfast rezoning takes long and costly • Business Tourism (CVB’s) - MICE• Government business sources• Government delay in payment process – smme’s• Avoid budget cut in Travel & Tourism (sustainable jobs)

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The tourism sector contribution to development, growth and job creation

• Areas of growth and development– Increasing– Decreasing– Investment opportunities

• Value realised from tourism/hospitality– Erratic trends – Sustainability

• Needs– Business tourism fund to bid for international events & conferences– Strengthen Convention & Visitors Bureaus (CVB) through stronger industry

linkages

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Support for sustainable livelihoods to small, medium and micro enterprises

• Government support needed• Settle the accounts on time (cashflow management)• DTI grants – policy and procedures are not easy to access funds• Distribution of Government business, consider small towns

(Conferences)

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Support for sustainable livelihoods to small, medium and micro enterprises

• Servicing tourism industry– Value chain– Own SMME entities– Supporting big players

• Funding and finance example• Needs– Access to finance for SMMEs– Improve training opportunities for SMMEs

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Shift in geographic markets and geographic spread

• Trends– Statistics

• Increases• Inbound• Outbound

– Special issues• African vs Western• Family & friends focus

– Affordability

• Areas– Local– Regional/provincial– National– SADC– Africa– International

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Shift in geographic markets and geographic spread

• Why shifts– Economic environment

• Local & International

– Travel trends• Travellers preferences• Costs of travel

– Market realities• Western vs African• Time & interest focus• Quality time with family• Home• Visiting• Traditional home• Family & friends• Bus travel

– Infrastructure• Balance new investment vs maintenance• e.g. Northern Berg access roads

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Shift in geographic markets and geographic spread

• Needs– Recognition of reality and needs of our local market & people - we

are not catering for real needs!– Competitive local costing and affordability considerations– Road access

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Successes and challenges

• Successes– Imvelo Awards • Responsible tourism

– Representative organisations exist– Relationships with stakeholders• Government• Communities• Labour stability

– Tourism Business Council of South Africa

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Successes and challenges

• Challenges– Need enabling environment

• Government policy - Support or Hindrance?• Political - Support or Hindrance?

– Stronger working relationships with government & agencies• National• Provincial• Local

– Recognition of the collective voice of tourism industry– Skills development

• Quality & quantity of school leavers• Bridging courses

– Global trends• Economic meltdown• Changing markets

– Hospitality industry training resources established

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