Presentation to Portfolio Committee on Tourism

THE ROLE OF THE DEPARTMENT OF INTERNATIONAL RELATIONS AND COOPERATION IN THE PROMOTION OF TOURISM TO SOUTH

AFRICA

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INTRODUCTION

• South Africa was the first country in the world to include “Responsible Tourism” as a key pillar of its national tourism policy by means of the 1996 White Paper on the development and promotion of tourism in South Africa

• Government is therefore committed to provide for the development and promotion of sustainable tourism for the social, economic and environmental benefit of South African citizens and for the enjoyment of all its residents and foreign visitors

• Tourism is an integral component of South Africa’s New Growth Path (2010), which strives to significantly reduce unemployment and stimulate inclusive and sustainable economic development. South Africa’s Industrial Policy Action Plan (IPAP2) has identified the tourism sector as an important contributor to the development of rural areas and culture industries amongst others

INTRODUCTION (Cont)

• The objective is to make South Africa one of the top 20 destinations by 2020. It commits the tourism sector to creating a total of 225 000 jobs in 2020. NTSS further seeks to increase tourism’s contribution to the economy from R189,4 billion (2009) to R318,16 billion in 2015 and R499 billion by 2020

• DIRCO has always been aware of the role of the contribution the tourism sector makes to ensure prosperity for all South Africans. Therefore, increasingly over the past decade, DIRCO has actively promoted tourism to South Africa in the international arena in recognition of the powerful contribution the tourism sector makes to the national economy and to the elimination of poverty

• DIRCO promotes tourism to South Africa through a variety of duties, activities and instruments employed at Head Office and in the foreign missions of the country

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UNWTO

• DIRCO promotes South Africa’s and African interests in terms of the development policy and the African Agenda with regard to tourism in the international arena, through South Africa’s membership of the United Nations World Tourism Organization (UNWTO)

• The Secretariat of the UNWTO is located in Madrid, and the transferred officials at the Embassy are South Africa’s first point of contact with the organization

• According to the UNWTO, 880 million people travelled across the globe in 2010, and this number is expected to grow to 1,5 billion by 2020. As more and more regions and countries develop tourism as an economic sector, it produces significant impacts on natural resources, consumption patterns, pollution and social systems. The need for sustainable planning and management is imperative for the tourism sector to survive as a whole

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TRAINING• The Department of International Relations and Co-operation trains all Foreign

Service Officers, who are bound for transfers to South African Embassies and Consulates, also known as Missions, abroad in tourism promotion

• Recently, tourism promotion has been strengthened through the expanded programme approved by Cabinet that instructed DIRCO to conduct Economic Diplomacy training for all of its South African diplomats. Economic Diplomacy, therefore, incorporates trade and investment promotion, Brand SA and tourism promotion. The Economic Diplomacy module is delivered in collaboration with the Department of Tourism, South African Tourism, South African Tourism Services Association and other stakeholders, such as provincial and local government. The programme is delivered by experts in the field who enable our diplomats to be fully functional in their area

• Discussions are on-going with the Department of Tourism to expand the programme outside of Economic Diplomacy to give more content or detail to tourism promotion

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MISSIONS

The different Missions operate at different levels of specialization, which depends completely on the human and financial resources it disposes of

SA TOURISM

• South African Tourism has international offices in the following countries, where those offices carries full responsibility for tourism promotion, separate from the activities of the Embassies:

AustraliaChina (PRC) and Hong Kong France Germany

India Italy Japan Netherlands

United Kingdom and Ireland United States of America

• No regional offices in the five African regions yet

• Discussions are still underway to open offices in the East and West Africa regions in either Nairobi/Dar Es Salaam and Lagos respectively

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DEDICATED OFFICIALSAt a number of embassies there are dedicated officials who deal mainly with tourism promotion, together with a locally recruited staff member (LRP).Austria Belgium Hungary Poland TaiwanPortugal Russia Spain (Head Office of the UNWTO)At smaller missions with a limited budget, tourism promotion is usually one of the responsibilities of a transferred official, with an LRP to provide assistance

TRADE ATTACHÉS

DTI representatives at South African Mission abroad promote trade with South

Africa. As the term tourism industry indicates, it forms part of trade promotion,

and therefore forms part of the activities of the trade attachés at the Mission.

There are trade representatives at the following Missions:

Washington Chicago Sao Paulo (Brazil) Beijing

Hong Kong Addis Ababa New Delhi Saudi Arabia

Mumbai Milan Kenya Brussels

Geneva Abu Dhabi Dubai London

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VISAS

• DIRCO has over the years negotiated visa exemption agreements with a number of countries, to facilitate travel to and from South Africa. The exemption usually grants visa free travel to South Africa for specified periods ranging from thirty to ninety days. Where such an agreement exists, the traveler would not interact with the Mission, unless to obtain general information on South Africa

• Otherwise, tourists depend on the Mission for assistance and the officials responsible for issuing visas would represent this first point of contact to South Africa with the tourist. The principle of Batho pele is particularly important in this instance and has been accentuated during consular training

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MARKETING MATERIAL

• DIRCO provides all Missions abroad with marketing material for use at exhibitions and other promotional events. The marketing material, such as posters, audiovisual material and brochures are translated into the specific languages for the country, either at Head Office

• Embassies in the different regions also undertake dubbing of audiovisual material and then distribute it to other embassies in the region, such as Spanish material for Latin America. This has the effect that more material is more widely available and contributions from the different embassies also distribute the cost of the translations

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Exhibitions and Websites

EXHIBITIONS

• Officials use every opportunity to obtain exhibition space at events to promote tourism to South Africa. This comprises of a well-appointed stand with South African diplomats and LRPs to provide assistance. Information material is available for distribution and visitors are entertained with music and audiovisual material of South Africa’s tourist destinations and cultural diversity and attractions

WEBSITES

• About thirty Missions have an active website dedicated to the Mission on which information on tourism is available. This includes links on visa information, as well as links to the website of SA Tourism which provides extensive information on all the tourist attractions, travel information, accommodation and general information the prospective tourist may need

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TRAVEL AGENTS Officials dealing with tourism develop ties with local travel agents in their countries of representation. They arrange for travel agents to visit South Africa on a contact visit and to develop South Africa as a preferred destination. They develop contact with South African travel agents to arrange specialized package deals, such as golfing tours, nature activities, and also with regard to special needs of their clients, such as language or physical challenges

TOURISM INDABA

The annual Tourism Indaba offers a good opportunity for travel agents,

transferred officials and LRPs to visit the important event, where they are able to

communicate with representatives from every sphere of the tourism industry.

Afterwards they attend a familiarization tour of South Africa. This whole

experience forms part of their training and enables them to function with

enthusiasm and with the necessary knowledge to perform their duties optimally

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TOURIST STATISTICS

Statistics has been sourced from the 2011 Annual Tourism Report, prepared by the

South African Tourism Strategic Research Unit, published in June 2012

 • South Africa improved from 34th global ranking in 2010 to 33rd position in 2011 with

more than 8 million tourists. South Africa holds 3rd position on the continent• Foreign tourist arrivals to South Africa grew by 3.3% (265,802) in 2011 to reach

8,339,354 million tourists while overseas tourist arrivals declined by -1.8% in the same period. This performance is below the global average which saw a 4.4% increase in tourist arrivals. Excluding the 309,554 tourists who traveled to South Africa specifically for the FIFA World Cup, the growth in 2011 was 7.4%, which is above the global growth of 4.4%

• Growth from Africa land markets remained strong in 2011 with a 6.8% (372,827) increase resulting in a total of 5,828,128 compared with 5,455,301 tourist arrivals in 2010. Revenue generated from the Africa land markets increased by 0.2% (R0,1 billion) in 2011 over 2010, driven by increased revenues from Swaziland (R1,7 billion) and Lesotho (R1,6 billion). The large increase in tourist arrivals from Swaziland and Lesotho contributed the growth in revenue. The region contributed R47,2 billion to total revenue

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STATISTICS CONTINUED

• There was good growth in tourist arrivals from African air markets. Tourist arrivals from this region grew by 6.3% (21,036) in 2011 to 356,191 tourist arrivals compared with 335,155 in 2010. The largest increase in revenue was recorded by the Africa air markets (R0,4 billion or 13.5%), growing from R3,4 billion in 2010 to R3,8 billion in 2011. The growth was due to an increase in tourist arrivals, average spend and length of stay. Average spend increased from R12,600 in 2010 to R13,300 in 2011

• Tourist arrivals from the Americas decreased by -5.5% as a result of a decrease in “other Americas” markets in the region. The major contributor of the decline was the FIFATM World Cup that had Central & South America and North America contributing 13% and 11% respectively of tourists who came specifically for the event in June and July 2010. The Americas grew by 12.9% excluding the World Cup. The Americas recorded a -19.3% (R-1,0 billion) decrease in revenue, from R5,2 billion in 2010 to R4,2 billion in 2011. The decrease was driven by decreases in tourist arrivals and average spend. Average spend per foreign tourist decreased in both Rand and US Dollar terms, from R12,800 in 2010 to R11,000 in 2011 and in US Dollar terms from USD1,700 in 2010 to USD1,500 in 2011

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STATISTICS CONTINUED

• Tourist arrivals from Europe declined by -3.5% (-45,945 arrivals) in 2011 due largely to the ongoing impact of the global economic crisis in Europe. There were declines recorded for the UK, down -7.2%, France, down -8.6% and the Netherlands, down -8.3% while Germany grew by 9.3%. Excluding the FIFATM World Cup, tourists arrivals from Europe increased by 2.4%. Revenue from Europe decreased by -8.1% (-R1,0 billion), driven by decreases in tourist arrivals and average spend

• European tourists spent on average R400 less in 2011 compared to 2010, decreasing from R10,700 in 2010 to R10,300 in 2011. The decrease in average spend on accommodation and increase in food, drinks and transport, is in line with the current trend of tourists purchasing their travel independently (i.e. booking airfare, accommodation, car hire, coach tours through different suppliers) and looking for value for money and customized experiences.

• South Africa gained market share in the USA, France and Netherlands, a trend that started in 2009

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SOUTH AFRICA’S TOP 20 SOURCE MARKETS

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PERCENTAGE GROWTH IN INTERNATIONAL ARRIVALS 1995 - 2011

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TOTAL TOURIST ARRIVALS TO SOUTH AFRICA 2009 - 2011

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TOP AFRICAN AIR MARKETS TO SOUTH AFRICA

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TOP 20 OVERSEAS ARRIVALS TO SOUTH AFRICA

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PURPOSE OF VISIT OF ALL FOREIGN TOURISTSThe analysis of purpose of visit by region shows that most holiday tourists come from overseas markets (the Americas, Asia & Australasia and Europe) while the shoppers and tourists visiting friends and relatives come from Africa and the Middle East

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TOTAL TOURIST ARRIVALS IN SOUTH AFRICA FOR 2009, 2010 and 2011

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THE AMERICAS ARRIVALS 2009 - 2011

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ASIA AND AUSTRALASIA ARRIVALS 2009 - 2011

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EUROPE ARRIVALS 2009 - 2011

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AFRICA AIR ARRIVALS 2009 - 2011

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Thank you