National Tourism Sector Strategy (NTSS) 2016-2026

4.1 The Domestic Economy ........................................................................................................................ 2

4.2 International Tourism Trends ................................................................................................................ 3

4.3 Tourism Performance in South Africa.................................................................................................... 4

4.4 Tourism Recovery Strategy ................................................................................................................... 6

4.5 Tourism’s Economic Contribution and Global Competitiveness ............................................................ 6 5. THE CASE FOR TOURISM IN SOUTH AFRICA.................................................................................. 8

5.1 Players in the Tourism Economy ........................................................................................................... 9

5.2 Collaboration and Cooperation in Tourism .......................................................................................... 11 6. PERFORMANCE AGAINST NTSS 2011 TARGETS.......................................................................... 11 6.1 Direct GDP Contribution and Jobs from the Tourism Economy .......................................................... 11 6.2 Overall GDP Contribution and Jobs from the Tourism Economy......................................................... 13

6.3 Capital Investment Levels ................................................................................................................... 14

6.4 International Tourists and Domestic Trips ........................................................................................... 14 7. VISION, MISSION AND VALUES ....................................................................................................... 16 8. MEASUREMENTS AND TARGETS ................................................................................................... 16 9. THE STRATEGIC PILLARS ............................................................................................................... 18 10. ACTION PLANS ................................................................................................................................. 18

10.1 Pillar One - Effective Marketing ......................................................................................................... 188

10.2 Pillar Two – Facilitate Ease of Access................................................................................................. 23

10.3 Pillar Three - The Visitor Experience ................................................................................................... 26

10.4 Pillar Four - Destination Management ................................................................................................. 31 10.4.1 Roles, responsibilities and capabilities of provincial and local government in tourism ........................ 31

10.4.2 Research, analytics and statistics ....................................................................................................... 31

10.4.3 Inter-departmental support for tourism ................................................................................................ 32

10.4.4 Standards, guidelines and quality assurance ...................................................................................... 32

10.5 Pillar Five - Broad Based Benefits ....................................................................................................... 36

10.5.1 Enterprise Development and Finance ................................................................................................. 36

10.5.2 Rural tourism development, and benefits to host communities ........................................................... 37 11. CRITICAL, PROCESS, SUPPORT AND SUCCESS ISSUES ............................................................ 39

11.1 Process and Support issues................................................................................................................ 39

11.2 Critical Success Issues for Sustainable Competitiveness ................................................................... 40 12. INSTITUTIONAL ARRANGEMENTS ................................................................................................. 40

12.1 Arrangements at National Level .......................................................................................................... 42

12.2 Arrangements at Provincial Level ........................................................................................................ 43

12.3 Arrangements at Regional and Local Level......................................................................................... 43 13. MONITORING, EVALUATION AND REPORTING ............................................................................. 44 14. CONCLUSION .................................................................................................................................. 444 ii NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 TABLES AND FIGURES Tables Table 1 - Measurements and Targets .............................................................................................…...16 Table 2- Macro Economic Indicators for Inclusive Growth of the Tourism Industry in South Africa ....... 16 Table 3 –SA Tourism Source Market Portfolio ...................................................................................... 18 Table 4- Effective Marketing.................................................................................................................. 20 Table 5-Facilitate Ease of Access ......................................................................................................... 24 Table 6-The Visitor Experience ............................................................................................................. 27 Table 7- Destination Management ........................................................................................................ 32 Table 8- Broad Based Benefits………. …………………………………………………. ……………………37 Figures Figure 1-South African GDP Growth Rates ............................................................................................. 2 Figure 2-Global Growth in International Tourism..................................................................................... 3 Figure 3- Select SADC Tourism Arrivals by Year .................................................................................... 4 Figure 4- Total and Direct Contribution of Tourism to GDP ..................................................................... 5 Figure 5- Tourism Jobs ........................................................................................................................... 6 Figure 6- Visitor Exports & Capital Investment in Tourism ...................................................................... 6 Figure 7- Why Tourism Matters to South Africa ...................................................................................... 7 Figure 8- Tourism Value Chain ............................................................................................................... 9 Figure 9- Tourism Direct Contribution to GDP....................................................................................... 11 Figure 10- Tourism Direct Jobs ............................................................................................................. 11 Figure 11- Tourism Total Contribution to GDP ...................................................................................... 12 Figure 12- Tourism Total Jobs .............................................................................................................. 12 Figure 13-Tourism Capital Investment .................................................................................................. 13 Figure 14- International Tourists and Arrivals........................................................................................ 13 Figure 15- Domestic Holiday Trips ........................................................................................................ 14 Figure 16- Goal and Pillars of the NTSS Strategy ................................................................................. 17 Figure 17- South African Tourism Institutional Structures. .................................................................... 32 iii NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 LIST OF ABBREVIATIONS AND ACRONYMS ACRONYM FULL REFERENCE AASA Airlines Association of Southern Africa ACSA Airports Company of South Africa ASATA Association of South African Travel Agents ATCP Accredited Tourism Company Programme BARSA Board of Airline Representatives South Africa B-BBEE Broad Based Black Economic Empowerment BEE Black Economic Empowerment CAGR Compound Annual Growth Rate CATHSSETA Culture, Arts, Tourism Hospitality, Sports Sector Education and Training Authority DAC Department of Arts and Culture DBE Department of Basic Education DBSA Development Bank of Southern Africa DEA Department of Environmental Affairs DFI Development Finance Institution DIRCO Department of International Relations and Cooperation DRC Democratic Republic of Congo DRDLR Department of Rural Development and Land Affairs DTI Department of Trade and Industry DTS Domestic Tourism Survey EME Exempted Micro Enterprise FDI Foreign Direct Investment FEDHASA Federated Hospitality Association of South Africa GDP Gross Domestic Product IAB Immigration Advisory Board IATA International Air Transport Association IDC Industrial Development Corporation iv NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 ILO International Labour Organisation IPAP Industrial Policy Action Plan LED Local Economic Development LSM Living Standards Measure MTSF Medium Term Strategic Framework NDP National Development Plan NDT National Department of Tourism NGP New Growth Path NTSS National Tourism Sector Strategy PIC Public Investment Corporation PPP Public Private Partnership QSE Qualifying Small Enterprise RETOSA Regional Tourism Organisation of Southern Africa SABOA Southern African Bus Operators Association SABS South African Bureau of Standards SACU Southern Africa Customs Union SADC Southern Africa Development Community SALGA South African Local Government Association SARB South African Reserve Bank SATSA South African Tourism Services Association SAVRALA Southern African Vehicle Rental Association SEDA Small Enterprise Development Agency SEFA Small Enterprise Finance Agency SETA Sector Education and Training Authority SMME Small, Medium and Micro Enterprise TBCSA Tourism Business Council of South Africa TEP Tourism Enterprise Partnership TGCSA Tourism Grading Council of South Africa v NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 THRDS Tourism Human Resources Development Strategy TIP Tourism Incentive Programme UK United Kingdom UN United Nations UNWTO United Nations World Tourism Organisation US United States (of America) VFR Visiting Friends and Relatives WEF World Economic Forum WHS World Heritage Site WTTC World Travel and Tourism Council vi NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 PART A: BACKGROUND 1. INTRODUCTION The first National Tourism Sector Strategy (NTSS) for South Africa was published in 2011 as a ten-year Strategy, with targets from 2010 to 2020. It has recently been the subject of a review to determine what adjustments, if any, need to be made given the changing domestic and international environment and in light of lessons learned from the implementation process. The review has taken into account the emergence of important trends in global markets, as well as South Africa’s competitive strengths and weaknesses. An essential part of the exercise was an assessment of the potential and the identification of pathways for the South African tourism economy to play an enhanced role in the growth of the overall economy. The process has culminated in a second iteration of the NTSS. The NTSS focuses on inclusive growth, which must fundamentally be based on domestic and international tourist market growth and expenditure increases. While the national tourism marketing agency, South African Tourism (SA Tourism) has a detailed methodology for identifying priority markets, the NTSS further links the marketing plans to broader development imperatives, including addressing barriers to growth and the building of a transformed and inclusive tourism economy. This growth will, by the values that drive South Africa as a developmental state, be inclusive, responsible and sustainable. It will also be underpinned by an awareness of the imperative of the wise use of scarce resources. Tourism is a partnership between the public and private sectors. The NTSS focuses on harnessing the strengths of the public and private sectors to ensure alignment, the sensible use of resources, as well as drawing on pragmatic planning and prioritisation. While many areas warranting focus and enhancements exist within the tourism economy, the Strategy identifies priority actions for implementation in the short, medium and long term. The Pillars, Strategic Objectives and Prioritised Actions of the NTSS are provided in Part B of this document. 2. POLICY ENVIRONMENT Tourism is recognised for its immense potential and its significant contribution to the economy. The 1996 White Paper on the Development and Promotion of Tourism confirmed South Africa’s approach to tourism as one which is “government led, private sector driven and community based”, and grounded in cooperation and close partnerships between all stakeholders. This sets the scene and is still relevant today. Government’s recognition of the critical importance of tourism in the economy is evident in the sector’s inclusion as one of the priority areas in the initial Industrial Policy Action Plan (IPAP, 2007), the New Growth Path (NGP, 2010) and the National Development Plan (NDP, 2013). The sector is expected to make the requisite contribution to job creation and the continued growth of the economy. The NDP is the national framework for the development of the South African economy. In that plan tourism is identified as a highly labour intensive industry which stimulates the development of small businesses and which generates foreign direct investment and significant export earnings. Emphasis is placed on increasing the number of tourists entering South Africa and the amount spent; the availability of tourism infrastructure; positioning South Africa as a regional shopping and business centre; and ease of access by air and travel facilitation through favourable visa regimes. These themes are addressed as part of the Pillars and Actions of the NTSS. 1 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 3. TECHNOLOGICAL ENVIRONMENT International trends clearly show that technology has significantly altered how travel products and services are procured and consumed, with consequences for conventional/traditional operators within the tourism value chain, particularly accommodation and transport providers. The tourism sector needs to take a balanced view on how to deal with the technological advancements including the phenomenon of disruptive technologies. On one hand, tourism has always been a sector that encourages and embraces innovation as it brings about new products in the market, expands consumer options and experiences in a destination, stimulate entrepreneurship and create opportunities for new entrants into the industry. At the same time, the sector needs to be alive to the impact of technology, including its unintended consequences. Amongst others, in respect of the sharing economy, the outcry from industry is that it has brought about unfair competition for traditionally regulated businesses and loss of tax revenue for government. The current regulatory frameworks are deemed as passive and inadequate to provide fair regulations and guidelines in order to level the playing field. It is therefore imperative for the Department of Tourism in consultation with the industry and other government departments to ensure the ongoing review of the policy environment that will enable the positives that are brought by such innovation, whilst minimising the unintended consequences. The sharing economy is indeed a global phenomenon and therefore a policy position that takes into account best practices with practical interventions that support sustainable growth and global competitiveness should be developed. A balance must be struck between embracing innovation and maintaining a sense of sustainability. This would require the sector to monitor technological trends and devise timeous and strategic responses in order remain competitive. 4. ENVIRONMENTAL OVERVIEW

4.1 The Domestic Economy South African domestic tourism is affected by overall economic conditions in the country. The domestic economy is under strain, and the situation is projected to persist for the near term, as South Africa moves out of the negative effects of a severe drought, the aftermath of the global financial crisis, issues with the supply and cost of energy, the reduction in demand for South African commodities and the concomitant impact on the national industrial economy. Continued low economic growth is forecast for the next four years. In the short term (2016/17) further moderation in household consumption expenditure growth can be expected. FIGURE 1 – SOUTH AFRICAN GDP GROWTH RATES Q1/2011 to Q3 2015 6 4.8 Percent 4 2 2.73.2 3.2 3.8 4.2 1.31.4 2.3 0 1.2 2.1 0. 0.8 0.7 -2 0.6 1.3 1.3 -0.6 0.7 Q1/11 Q4/11 Q3/12 Q2/13 -1.3 Q1/14 Q4/14 Quarter/Year Q3/15 Source: South African Reserve Bank (2016) 2 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 While reduced consumer spending may mean a reduction in local tourism spend from certain domestic segments, a weak Rand may also have a positive effect as those South Africans who might have travelled internationally may now choose to holiday locally. Positive growth forecasts for domestic tourist holiday trips take into consideration these displaced international trips by South Africans and the new and significantly resourced Domestic Marketing Strategy of SA Tourism. Together, it is expected that these will assist in driving up domestic holiday trip numbers.

4.2 International Tourism Trends International tourism globally has been growing by over 4 percent per annum from 2010, and reached 4.4 percent in 2015 (although there were wide regional variances). In 2016, the number of international tourist arrivals increased globally by 3.9% compared to 2015. This was a slower growth compared to a growth of 4.6% in 2015 when compared to 2014. Both the United Nations World Tourism Organisation (UNWTO) and World Travel and Tourism Council (WTTC) projections suggested that this average global growth rate of around 4 percent was likely to continue as emerging economies such as China continue to grow. Lower growth rates were however projected for developed economies such as the United Kingdom (UK), France and the United States (US) with higher growth in some developing economies such as China and certain South-East Asian economies. FIGURE 2 – GLOBAL GROWTH IN INTERNATIONAL TOURISM Source : World Tourism Organisation (WTO) 2016 According to the UNWTO (2016)1, the majority of international tourists travelled for leisure and holiday purposes (53%), followed by 27% who travelled to visit friends and relatives (VFR), health, religion and other, and 14% who travelled for business and professional reasons during 2015. This indicates the key role that leisure and holiday-related tourism products play in increasing number of tourist arrivals globally. A number of major trends have been identified as impacting on the world tourism economy, and are equally relevant to South Africa. These are: 1 UNWTO. 2016. Tourism Highlights, 2016 Edition. 3 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 (a) Consistent and increasing growth globally in international tourist numbers (1.184 billion international visits in 2015). (b) Shift in tourism demographics: China and some other emerging source markets growing at double digit levels, an increase in the numbers of older tourists travelling, an increase in the number of under 35s travelling, but with differences in requirements for both groups. Also noted is an increase in the number of family groups travelling, possibly due to increased numbers of tourists from Asian source countries. Therefore, hotels need to be proactive by supplying tailored products that fit their specific needs (e.g. language preferences). (c) Ubiquitous mobile digital technology: Changes in technology have also resulted in major changes in the way the tourism industry does business. The Internet has become an important source of information for travellers, providing them with an opportunity to obtain information both directly from destinations and tourism businesses as well as from fellow travellers through social networking, blogs and travel advisory websites. As a result, there is an expectation of permanent quality connectivity availability. Similarly, digital mobile technology requires the agility to be able to respond quickly to any perceived negative event in destination countries. It has been reported that over 95 percent of people seeking information about destinations and travel use the internet. This has also resulted in a disruption of the classic tourism activity chain with its many agencies and mediated services. This digitisation of the tourism activity chain has significant impact on the nature of jobs and occupations in the industry, as well as the profitability of specific areas. (d) Disruptive technologies: The World is changing at an incredible pace and technology has accelerated various business activities some of which have elicited contentious debates. The evolution of technology has brought about internet platforms such as Uber, Airbnb and Lyft, with consequences for conventional operators of tourism transport and accommodation services. The need to respond and adapt to these technological advances can therefore not be overemphasised. (e) Personal safety and security issues are high profile: The reputation of destinations for violent crime, terrorism (random attacks on civilians) and exposure to disease has significant influence on tourist decisions. Mobile digital technology allows for immediate cancellation of bookings in real time in the case of any event indicating that tourist safety may potentially be compromised. (f) Increased accessibility and increased ease of access: More countries are entering into bilateral, regional and international “Open Skies” agreements to facilitate travel, and more countries are implementing easier visa requirements or, in certain circumstances, removing the visa requirement entirely. Case studies indicate significant increases in international tourist visits results in both cases, with the concomitant positive impacts on the host country economy. (g) Increasing interest in “green” “sustainable”, “responsible” and “ethical” tourism: Increasingly tourists are choosing to reduce negative environmental, economic and social impacts on the host country. They prefer to choose destinations showing clear benefits flowing to local communities and minimal environmental impact. The growth in green tourism and environmental consciousness of the sensitive tourist creates an opportunity for South Africa whose tourism development policy is centred on responsible tourism practices. The United Nations has declared 2017 as the International Year of Sustainable Tourism for Development. The South African tourism effort must therefore take into account these and other emerging international trends to be able to identify, adapt and take advantage of the relevant opportunities.

4.3 Tourism Performance in South Africa For many countries, the tourism economy is growing faster than most other economic sectors. From a trend perspective this is certainly the case for South Africa. However, despite a growth of 6.6 percent in international tourists in 2014, South Africa experienced a decline in international tourists in 2015 of 6.8 percent. This was mainly attributable to the effects of the Ebola epidemic in West Africa and perceptions linked to this in certain source markets, and the implementation of new visa regulations, which created greater obstacles to travel to South Africa. The spectre of Ebola and perceptions associated with it are 4 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 now historical, and in October 2015 Cabinet announced a range of changes to the visa regulations, in a deliberate attempt to facilitate travel. The implementation of these visa regulation changes has begun and will go far in addressing visa related barriers to travel. Of the 6.8 percent decline in 2015, 7 percent was recorded for African tourists, compared to 8.1 percent growth in 2014. Regionally, the Southern African Development Community (SADC) markets are important ‘volume’ source markets for South Africa with 74.3 percent of all tourists arriving in South Africa coming from the SADC region. When comparing travel trends from leading SADC markets, the number of tourists in 2015 had decreased from all SADC countries except Botswana and Namibia. African markets (including certain SADC markets) that are also important in terms of high spend (or value) from tourists and their potential for growth include Nigeria, Angola and Democratic Republic of Congo (DRC). Similarly, there was a significant decline in the first nine months of 2015 in arrivals from China, of 19.7 percent. India declined by 12.3 percent for the same period. These two overseas markets represent a significant opportunity for growth as they have large middle classes with a propensity to travel abroad. Arrivals from South Africa’s main overseas source markets of US, Germany and France combined declined by 2.5 percent in 2015 but there was a small increase in international arrivals from the UK. FIGURE 3- SELECT SADC TOURISM ARRIVALS BY YEAR 3000000 2250000 Visitor Number 1500000 750000 0 2009 2010 2011 2012 2013 2014 2015 Botswana Lesotho Malawi Mozambique Namibia Swaziland Zimbabwe Source: SAT (2016) However, in a clear indication that there has been a turnaround, more than 10 million international tourists arrived in South Africa in 2016, representing a 12.8% growth compared to 2015 (8.9 million international tourist arrivals). All regions recorded positive growth in 2016 with Central and South America leading with a growth of 34.3%, followed by Middle East (34.1%), Asia (30.3%), Europe (15.8%) and North America 14.9%, Total Africa Mainland (11.2%) and Australasia (10.9%). This major rebound has put tourism in South Africa firmly back on track for a strong recovery. African markets remain the main source of tourist arrivals to the country, with total Africa main land markets (Africa air and land) contributing almost 75% to the total arrivals in 2016. The remaining 25% of South Africa’s International tourist markets are from long-haul destinations, with the majority from these overseas markets travelling from Europe (60%), North America (16%) and Asia (13%) in 2016. 5 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 Furthermore, the South African Tourism (SA Tourism), statistics showed that millennials (18-34 age) travelling to South Africa were increasing with 45.8% of the international tourist market from the Tourism Departure Survey falling within this age bracket. In addition, the international tourist market, whether long- haul or regional, has shown an increased interest in business and holiday travel In respect of domestic tourism, recent trends showed a decrease in domestic tourist trips over the past few years. The Tourism Satellite account (TSA) released by Statistics South Africa (Stats SA) indicated that domestic tourism plays a critical role in the tourism sector as it generates more than half the internal tourism revenue. Regardless of an increase of 3.2% in the number of adult domestic tourists travelling in 2015 compared to 2014, there was a double digit decline of 12.5% in domestic tourism trips during the same period. Domestic tourism trips continued to decline in 2016 with a declining growth of 0.7% from 24.5 million in 2015 to 24.3 million in 2016. Total domestic spend went up by a double digit growth of 12.3% in 2016 compared to 2015 which was an improvement from a growth of 6.2% recorded in 2015 compared to 2014. Domestic tourism should continue to be encouraged as the potential impact of this market is far greater than that of the international market. One possible opportunity is to convert VFR tourists into an increased revenue stream, as more than 70% of domestic tourists are travelling for VFR purposes. Business tourism also holds great potential with 10% domestic tourists travelling for business purposes, alongside 11% holiday trips in 2015. Moreover, seasonality needs to be improved as the seasonality index for domestic trips worsened from 22.1% in 2015 to 24% in 2016 as South Africans tend to travel more during school holidays. The SA Tourism Domestic Survey of 2015 found the top five responses to the question ‘why have you not travelled over the past three years’ to be: a) could not afford to travel, b) no reason to take a trip, c) time constraints, d) unemployed/no income, and e) disliked travelling. The survey indicated that approximately 48 percent of the adult population of South Africa cannot afford to travel, are unemployed or have no income. The research further indicated the need to promote a culture of travel amongst all South Africans and to ensure that industry players, as well as SA Tourism, together with provinces, municipalities, invest more effort and resources towards unlocking and encouraging domestic travel.

4.4 Tourism Recovery Strategy A highly focused recovery strategy is under implementation and this NTSS Strategy contains certain of these actions, particularly those that extend beyond the immediate time period. Immediate actions already under implementation include exploiting targeted tactical marketing opportunities in priority markets, using the value for money presented by South Africa as a destination given the Rand’s weakness relative to other currencies. Unfortunately, at the same time, the Rand’s devaluation significantly reduces the spending power of the national tourism budget when buying marketing and advertising services in hard currencies.

4.5 Tourism’s Economic Contribution and Global Competitiveness According to the WTTC (2016) the tourism economy contributed R375 billion (9.4 percent) to South African Gross Domestic Product (GDP) in 2015 and the WEF (2015) confirmed that the South African tourism economy is the most competitive in sub-Saharan Africa. 6 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 FIGURE 4- TOTAL AND DIRECT CONTRIBUTION OF TOURISM TO GDP – ACTUAL AND PROJECTED (R BILLION) Direct Contribution to GDP Total Contribution to GDP 500. 375. 250. 125. 0. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: WTTC (2016) The South African tourism industry was also responsible for 702 824 direct jobs in 2015. However, when indirect and induced jobs are taken into account, a total of over 1.5 million jobs are linked to the tourism industry, representing 9.9 percent of all employment in South Africa in 2015. FIGURE 5 – TOURISM JOBS – ACTUAL AND PROJECTED Direct Employment Total Employment 2250. 1800. 1350. 900. 450. 0. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: WTTC (2016) Capital investment in tourism in real terms has remained relatively constant while visitor export earnings increased in real terms from just under R100 billion to R145 billion over the period. This has a significant impact on the country’s export earnings and balance of payments. FIGURE 6- VISITOR EXPORTS & CAPITAL INVESTMENT IN TOURISM – ACTUAL AND PROJECTED (R BILLION) Visitor Exports Capital Investment 187.5 150. 112.5 75. 37.5 0. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: WTTC (2016) 7 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 From a competitiveness perspective, South Africa was ranked 48th out of 141 and the top tourism destination in sub-Saharan Africa, the second most popular destination in Africa, after Morocco, based on international tourist numbers on the United Nations World Economic Forum International Tourism Competitive Index. South Africa’s key policy and other enabling conditions, such as air transport infrastructure, tourism service infrastructure, price competitiveness, ground and port infrastructure, and international openness, were identified as the main driving forces behind its competitiveness in regional and global arenas. It ranked in 20th place for its cultural resources, 22nd for its natural resources, 15th for its positive business environment, 25th for wildlife and 15th for its World Heritage Sites. South Africa also ranks 24th overall in online searches for nature related activities. South Africa’s natural environment is one of its greatest tourism resources, and, therefore, the tourism industry needs to be actively involved in conserving and protecting it. In respect of ease of visa access, it ranked 67th and areas of improvement include security, health and the labour market. Although South Africa is doing relatively well in the number of Blue Flag Accredited beaches, there is still a need for further protection of the coastline. 5. THE CASE FOR TOURISM IN SOUTH AFRICA The South African tourism economy is one of the best performing economic sectors in South Africa. It has the potential to increase jobs, and foreign exchange earnings in the short, medium and long term. This supports the National Development Plan (NDP) goals of 11 million jobs by 2030, the provision of economic opportunity for young people, and for rural areas, and the development of a strong Small, Medium and Micro Enterprise (SMME) base in the economy. FIGURE 7- WHY TOURISM MATTERS TO SOUTH AFRICA Source: WTTC data, March 2016 There is enormous potential to attract significantly more tourists from South Africa’s priority tourist markets as the current percentage share received in South Africa is only about 2% of market size. Of importance too is that the South African tourism economy offers many real opportunities for transformation at various points along the value chain, at a reasonable cost of entry and within a short to medium time frame. Tourism is outperforming many of the traditional South African sectors in growth terms under current economic conditions, and is able to replace jobs lost with new permanent jobs as well as stimulate enterprise creation. This is important for South Africa currently, so that the economy can sustain itself under difficult global economic circumstances. Tourism also makes a significant contribution to the country’s export earnings with a recorded contribution of R128 billion in 2016 and balance of payments. It is one of the sectors in South Africa placed at an advantage by a weakening exchange rate, as the destination now offers better value for money to international and regional tourists. In sum, tourism can grow jobs and earnings in South Africa within a very short time, if all stakeholders work together towards a shared goal of inclusive growth, and shared targets and actions for that growth. 8 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 The National Development Plan’s economic policy proposal advocates for a more diversified economy with a higher global share of dynamic products, and greater depth and breadth of domestic linkages. Due to its multiple linkages into the other sectors of the economy, tourism presents the ideal opportunity to facilitate the diversification of the economy beyond the current reliance on traditional commodities and non-tradable services. According to the World Trade Organisation (WTO) and the UNWTO, tourism has significant indirect impacts that are generated when tourism spending flows into the non-tourism sectors in the local economy. The tourism sector provides potential to create linkages and dynamise other sectors of the economy for instance, through purchases of textiles when hotels and lodges source their linen locally thereby stimulating and benefiting the manufacturing sector, local sourcing of furniture and food by hotels, thus supporting the agricultural sector, and also the construction sector through the development/ expansion of tourism facilities. Overall therefore, the tourism sector has the ability to stimulate demand and production in other sectors of the economy and generate significant multiplier effects. Tourism is not only regarded as an important economic activity, but is also recognised as an essential tool to promote mutual understanding and tolerance through the interactions that take place between tourists and host communities which enable participants to learn about each other’s culture. In the context of the history of our country, domestic tourism has the potential to foster social cohesion, as citizens travel to explore their own country and interact with their fellow citizens in the process. Furthermore, tourism has the potential to foster regional (Africa) integration particularly inter-Southern Africa travel.

5.1 Players in the Tourism Economy Tourism is a complex industry which involves a wide range of stakeholders and businesses working together at different levels to provide a service for individuals or a group of people travelling away from home for purposes of either leisure, business or VFR). Participants include air, road, sea and rail transporters; accommodation providers such as hotels, backpackers, lodges, homestays, vacation rentals, caravanning and camping, and bed and breakfast establishments; all forms of entertainment, events and attractions (such as parks, and heritage sites); tour guiding services; restaurants and less formal food service companies; travel agents, tour operators and other intermediary services such as meetings professionals; casinos, and shopping centres. A multitude of “indirect” goods and service providers support the tourism economy, such as those providing food supplies, security, laundry, marketing and other services to the tourism industry Tourism is misunderstood by many to only mean holiday travel. It is also about business and trade travel, medical and religious travel, and VFR (which accounts for most domestic travel). Special interest tourism (niche tourism), accounts for many particular motivators of leisure and purpose travel, including birding, food and wine tourism, medical tourism, eco- tourism, science tourism and cruise tourism. Furthermore, the system is supported by multiple relations and connections that the sector has with other sector departments, which are essential and have a high degree of influence on the delivery of a complete tourist experience. Examples include interactions with the Department of Home Affairs around immigration policies, customs officials at ports of entry; the securing of a free and safe environment which is a competency of the South African Police Service (SAPS); the Department of Transport (DoT) on aviation and road infrastructure development; the Department of Cooperative Governance and Traditional Affairs (COGTA) in relation to support for local government/municipalities, and other government departments such as the Department of Arts & Culture (DAC), the Department of Sport & Recreation (DSR), and the Department of Environmental Affairs (DEA), all of which play a crucial role to support tourism. 9 NATIONAL TOURISM SECTOR STRATEGY (NTSS) 2016-2026 These relationships are further illustrated by the schema depicted below. FIGURE 8: TOURISM VALUE CHAIN Source: OECD/UNWTO/WTO 2013 10 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 Figure 8 illustrates the complexity of a typical tourism value chain, the left side illustrates activities that take place in the outbound country (i.e. the tourists’ country of residence) and to the right those taking place in the inbound country (i.e. the tourists’ destination country). The bottom half of the figure represents activities that are a direct part of the tourism sector, while those indirectly linked to the tourism sector are represented in the upper segment. The development potential of tourism is maximised in countries that manage to exploit the indirect linkages in an optimal way and the figure illustrates that a broad range of activities can be considered relevant in order to achieve this.

5.2 Collaboration and Cooperation in Tourism Tourism is fundamentally a collaborative endeavour for destination businesses in the sense that tourists experience a destination in its entirety and the success of their experience depends on all parts of the value chain working together seamlessly. A highly competitive tourism destination is one in which all of the linked and integrated services and inputs combine together to provide a positive experience. This requires all stakeholders to work together to plan, execute, assess and constantly improve the tourism offering in order to increase market share and raise the domestic and international profile. Tourism is also one of the most dynamic economic systems globally and constant attention to competitive options and new product and market development is required for destinations to stay relevant and desirable. 6. PERFORMANCE AGAINST NTSS 2011 TARGETS The NTSS, while published in 2011, was developed in 2009 and accordingly sets its baseline year as 2009. A range of indicators were chosen and targets were set for 2015 and 2020. Certain indicators were without baseline data and remain without data sources. For this reason, the analysis of performance against targets in this NTSS only considers performance against the key economic and tourist indicators. These are: (a) Direct contribution to GDP and jobs; (b) Overall contribution to GDP and jobs, taking into account direct, indirect and induced impacts; (c) Capital investment levels in tourism; (d) International arrivals/ tourists; and (e) Domestic holiday trips. A range of data sources were used to establish 2015 performance against these targets as there is no single source of time series data other than the WTTC. The sources used are the Tourism Satellite Account (TSA), the WTTC, and South African Tourism.

6.1 Direct GDP Contribution and Jobs from the Tourism Economy For direct economic impacts, the TSA for South Africa has been used from 2010 to 2014 (with the 2013 and 2014 data as forecast); as well as the WTTC’s model as published in January 2016, in order to provide a comparison. The direct contribution of tourism to national GDP has increased. Tourism was estimated to contribute R71 billion in 2009 in the original NTSS with a target of R118 billion by 2015 – this is a CAGR of 8,8 percent for the period. The TSA data show actual performance close to this at a CAGR of 8.77 percent (for 2009 to 2014), but the WTTC model (2016) shows a CAGR of only 3 percent. 11 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 FIGURE 9- TOURISM DIRECT CONTRIBUTION TO GDP (R BILLION) 150. 120. 90. 60. 30. 0. 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target TSA (2014) WTTC (April 2016) Source: WTTC (2016), TSA (2014), NTSS (2009, 2015) Direct jobs contributed by tourism have increased. The NTSS 2011 estimated a baseline of 389 100 jobs in 2009 and a target of 403 900 jobs in 2015 – representing a Compound Annual Growth Rate (CAGR) of only 0.6 percent for the period. Both the TSA (2014) and WTTC (2016) data have higher estimates of direct jobs in 2010 and 2009 respectively – closer to 600 000. The TSA indicates 680 817 direct jobs from tourism in 2014 and the WTTC, some 702 824 by 2015. The CAGR for the TSA estimated direct jobs between 2010 and 2014 was 3,1 percent while the WTTC CAGR was 3,6 percent between 2009 and 2015. Performance accordingly exceeded targets both in actual numbers (which appear to have been underestimated) and CAGRs. FIGURE 10- TOURISM DIRECT JOBS 800000 600000 400000 200000 0 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target TSA (actual) WTTC model 2016 Source: WTTC (2016), TSA (2014), NTSS (2009, 2015) 12 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026

6.2 Overall GDP Contribution and Jobs from the Tourism Economy The TSA does not measure indirect and induced effects - the WTTC is the only data source to measure performance against broader tourism economy impacts on GDP and jobs. The total contribution of tourism to GDP has increased. The WTTC data estimates a higher total tourism economy contribution to GDP than does the NTSS in 2009 (at R324 billion compared with R189 billion) and 2015 (at R376 billion compared with R318 billion). The trend is similar to the performance against direct GDP contribution in that in real terms growth was around 2,5 percent per annum in the tourism economy on a CAGR basis according to the WTTC’s 2016 data, far less than the 9 percent growth that the NTSS 2011 targeted. FIGURE 11- TOURISM TOTAL CONTRIBUTION TO GDP (R BILLION) 475 380 285 190 95 0 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target WTTC model 2016 Source: WTTC (2016), NTSS (2009, 2015) Total direct, indirect and induced jobs provided by tourism have increased. This is the case even though there are wide variances in the data sets. The original NTSS estimate in 2009, and the target for 2015, are both significantly lower than the WTTC’s modelled estimations (like in the case of direct jobs). According to the WTTC model, jobs in the tourism economy grew from 1,37 million in 2009 to 1,55 million in 2015. WTTC data indicates a contraction in jobs between 2009 and 2010, and then growth thereafter resulting in a CAGR of around 2,1 percent per annum over the six-year period. This is slightly less than the 2,7 percent CAGR estimated in the original NTSS targets for the period, for growth from 819 800 jobs to 968 300. FIGURE 12- TOURISM TOTAL JOBS 2000000 1600000 1200000 800000 400000 0 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target Source: WTTC (2016), NTSS (2009, 2015) 13 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026

6.3 Capital Investment Levels Investment in tourism has recovered the strong levels experienced leading up to the FIFA 2010 World Cup. The NTSS 2011 targets public sector and private sector investment levels, while noting that disaggregated data does not exist to provide an accurate assessment and this is still the case. A baseline of R 82 billion was indicated in the NTSS for 2009, targeted to increase to R100 billion by 2015 (in nominal terms). In real terms, the WTTC indicated a lower amount of R65 billion in 2009, which initially declined in 2010 and then grew slowly again to reach R64 billion per annum in 2015. According to the WTTC model, capital investment levels are now back where they were in 2009, having recovered from a drop after the strong capital investment growth up to 2010. The NTSS assumed higher levels of capital investment each year, but, importantly, this was in nominal terms and forecast little real growth for the period. FIGURE 13-TOURISM CAPITAL INVESTMENT (R BILLION) 125 100 75 50 25 0 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target WTTC model 2016 Source: WTTC (2016), NTSS (2009, 2015)

6.4 International Tourists and Domestic Trips International tourists have increased. The NTSS 2011 set an indicator of international arrivals, owing to StatsSA measuring arrivals rather than tourists at the time. This has since been rectified but renders the analysis of performance problematic. For this reason, the growth rate assumed for international arrivals has been used to consider performance trends, rather than the absolute number. While the NTSS only targeted a CAGR in international arrivals of 3,3 percent the actual achieved CAGR in international tourist numbers for the period was 4,1 percent up to 2015. Removing 2015 from the equation due to the decline experienced in that year shows that between 2009 and 2014 the CAGR was even higher at 6,4 percent. This is well above average annual growth rates in international tourist numbers. Though South Africa experienced a decline in 2015, tourist arrivals in 2016 grew by 12,8% to 10 million compared to 8.9 million recorded for the same period in 2015 which was above the global average growth rate for the period. It is estimated that about 1.2 billion international tourists travelled the world in 2016, representing growth of 3.9% on 2015. 14 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 FIGURE 14- INTERNATIONAL TOURISTS & ARRIVALS 13000000 9750000 6500000 3250000 0 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target - arrivals International tourists Source: WTTC (2016), NTSS (2009, 2015), SA Tourism (2016) Domestic holiday trips have declined. Domestic holiday trips are a key measure in tourism as it relates to discretionary travel. This is also the indicator used by SA Tourism to measure its performance on domestic tourism. Domestic holiday trips have shown serious declines over the period. The NTSS baseline was 4 million domestic holiday trips in 2009, growing to 6 million in 2015. SA Tourism indicates that the number in 2009 was 3,6 million, and this declined to 2, 84 million in 2015. Domestic economic conditions are the main factor contributing to lackluster domestic tourism growth and spend, although market awareness and product offerings play some part. Domestic holiday numbers affect the economic impacts of tourism and with improved domestic tourist performance the economic impacts would have undoubtedly been more positive. The relatively recent (from 2015) extra budget deployed for domestic tourism marketing should positively impact on performance in this important area. FIGURE 15- DOMESTIC HOLIDAY TRIPS 7 500 000 6 000 000 4 500 000 3 000 000 1 500 000 0 2009 2010 2011 2012 2013 2014 2015 NTSS baseline and 2015 target Domestic holiday Trips - actual Source: WTTC (2016), NTSS (2009, 2015), SA Tourism (2016) 15 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 PART B: STRATEGIC FRAMEWORK 7. VISION, MISSION AND VALUES The changed domestic and global environment has led to the formulation of a new vision for the Strategy. The new vision indicates what is aspirational for South Africa in terms of the country’s own developmental priorities, and tourism’s role in realising these. The vision indicates aspirations regarding the quality (inclusive) and rate (rapid) of growth for the tourism economy of South Africa. It also indicates the intention to better utilise the country’s unique destination assets – nature, arts, culture, heritage – to grow the tourism economy, as well as the excellent services and products that must underpin the visitor experience. Innovation is an aspiration relating to the constant upgrading of experiences and offerings which should be in line with the rapidly changing preferences of travelers.

7.1 The NTSS Vision is: “ rapidly and inclusively growing tourism economy that leverages South Africa’s competitive edge in nature, culture, and heritage, underpinned by Ubuntu and supported by innovation and service excellence.”- A top world responsible tourism destination.

7.2 The NTSS Mission is: “To increase the direct contribution of tourism to the economy through partnerships, research based collaborative planning, and the implementation of agreed priority actions”.

7.3 The Guiding Principles and Values of the NTSS are: (a) Trust and Accountability: The multiple partnerships shall be built on trust; all parties should have mutual trust that they are all aiming for the same vision and goals and all role players shall accept responsibility to deliver on the actions and objectives on which they embark; (b) Respect for our arts, culture and heritage: All tourism development and activities shall respect all aspects of South Africa’s diverse arts, heritage and culture; (c) Responsible tourism: All tourism development and activities shall deliver on the triple bottom-line, namely economic, social and environmental sustainability; (d) Service excellence: The entire tourism value chain, including the non-tourism service providers shall continually strive for service excellence towards all tourists. (e) Upholding the values of the Constitution: Human dignity and equality shall be respected; (f) A commitment to transformation: The entire industry shall understand and unequivocally support the moral need for transformation; and (g) Collaboration and cooperation between all key stakeholders. 8. MEASUREMENTS AND TARGETS The current forecasts are based on the WTTC, which provides macro-economic forecasts on a 10 year basis. The projections will be updated from 2027 to 2030. TABLE 1: MEASUREMENTS AND TARGETS 16 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 Indicators/Measure of Performance 2015 Baseline 2026 Target Increase direct contribution to National Gross R118 billion R302 billion Domestic Product Increase total(direct and indirect) contribution R375 billion R941 billion to National Gross Domestic Product Increase the number of direct jobs supported 702 824 1 million by the sector Increase the number of total (direct and 1 551 200 2.2 billion indirect) jobs supported by the sector Increase tourism export earnings R115 billion R359 billion Increase in capital investment R 64 billion R148 billion Source: WTTC: November 2016 TABLE 2: MACRO-ECONOMIC INDICATORS FOR INCLUSIVE GROWTH OF THE TOURISM INDUSTRY IN SOUTH AFRICA Indictor 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Direct Contribution to GDP 118.638 128.519 138.354 149.157 161.358 175.469 189.984 207.284 227.816 250.68 275.018 302.241 Total Contribution to GDP 375.502 403.161 433.459 467.154 503.81 548.499 592.45 644.409 707.723 778.988 857.876 941.222 Direct Employment 702.824 729.551 743.167 754.356 774.748 802.526 826.006 853.385 889.132 924.92 961.271 1001.06 Total Employment 1554.2 1557.08 1606.82 1638.38 1687.57 1766.97 1826.1 1891.68 1977.61 2069.02 2165.62 2260.38 Visitor Exports 114.957 125.933 137.665 148.806 163.214 182.185 201.33 224.929 252.916 285.522 320.178 358.793 Capital Investment 63.6617 69.047 72.9407 78.3085 83.5782 89.4564 95.108 101.812 111.204 121.591 135.159 148.681 Source: WTTC 2(2016) Whilst the above indicators and forecasts are useful in terms of understanding the contribution of the tourism economy to the overall economy, direct tourism performance measures are needed to more precisely measure performance on an ongoing basis. Critical measures of performance against the goal for South Africa include: (a) Growth in the number of overseas tourist arrivals, increase in their direct spend, length of stay and geographic spread; (b) Growth in the number of regional (Africa land and air) tourist arrivals, increase in their direct spend and geographic spread; (c) Growth in the number of domestic tourist trips (including day trips), length of stay, direct spend and geographic spread. 2 Updated November 2016 17 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 9. THE STRATEGIC PILLARS To achieve the vision of the NTSS, five pillars which provide a framework for the actions of this Strategy have been identified. Domestic tourism is an essential segment of the tourism economy and provides a foundation for sustainable tourism growth and development. Therefore, the five pillars of the NTSS encompass key elements that will drive the development and growth of this market which should form the backbone of the sector. FIGURE 16- GOAL AND PILLARS OF THE NTSS Facilitating Ease of Access Effective The Visitor Marketing Experience Inclusive and Quality Growth of the South African Tourism Economy Broad Based Destination Benefits Management 10. ACTION PLANS The actions identified in this Strategy are the most critical areas requiring priority, focus and energy to support the rapid inclusive growth of the tourism economy. The prioritisation of these actions/interventions is based on changes in the environment (technology and trends for example) as well as lessons learned from implementation.

10.1 Pillar One - Effective Marketing Outcome Statement: A coherent approach to promote South Africa to become top of mind destination and improved conversion rate. 18 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 Effective international marketing requires winning campaigns to attract tourists from prioritised international and domestic markets and segments, as well as enhanced brand management. Critical is improved collaboration between industry and SA Tourism as well as improved stakeholder involvement at large – including improvements in coordination between local, provincial and national bodies responsible for tourism marketing, as well as with natural, cultural and heritage institutions. TABLE 3: SA TOURISM SOURCE MARKET PORTFOLIO Source: SAT (2014) The Table above indicates the current portfolio of priority source markets. SA Tourism is currently revising and enhancing its Tourism Growth Strategy (Enhanced Strategy for Growth) including its market and segmentation prioritisation model. The outcome of Phase 1 of the process is the overarching goal of attracting 5 million additional tourist within the next five years (informally referred to as “(5-in-5-by-5") - increase international trips (4 million) and domestic holiday trips(1 million) by five million tourists and trips over a period of five years using five strategic thrust). SA Tourism will be investing its marketing budget in strategically important regions that will deliver the maximum return on investment. Also leverage on the role played by the Department of International Relations and Cooperation (DIRCO) and its Diplomatic and Consular Missions through the development of a coherent International Tourism Relations Plan/Strategy. The Plan/Strategy could explore opportunities presented by Missions based in South Africa and South African Missions abroad as well as dedicated campaigns to lobby expatriates to communicate positive messages about South Africa. Also leverage on opportunities created by large South African Corporations with global footprint. Additionally, the plan must identify interventions to support the attainment of the African Union’s objectives within the Framework of the AU Agenda 2063 as well as the United Nations’ Sustainable Development Goals. ,. Improved brand management requires effective partnerships for alignment with Brand South Africa and the DIRCO in order to ensure speedy reaction to any potentially negative perceptions that may arise and which require the reassurance of international tourist markets. A clear framework or protocol will be developed to be agreed between DIRCO, Brand South Africa and SA Tourism which will determine how pro-active branding and speedy responses to negative external events are to be managed. 19 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 Effective domestic tourism marketing will involve the application of greater resources for expanded marketing campaigns and greater sophistication in choosing priority segments, as well as targeted activities to unlock travel for these segments. A significantly expanded domestic tourism marketing budget has been allocated to SA Tourism to support this far greater focus on domestic tourism. Effective tourism marketing will also require an assessment of the skills capabilities for marketing of tourism at all levels of government and the private sector. These will need to be aligned with priorities identified in strategies to promote skills in the industry as outlined in the revised Tourism Human Resource Development Strategy for South Africa. In conjunction with this, the National Department of Tourism (NDT) has revised the overall Domestic Tourism Growth Strategy which has included a programme to expand access to tourist sites for South Africans who do not readily access these important sites due to cost, travel accessibility and other factors. This programme will encompass encouraging a culture of travel amongst South Africans. Activities involve amongst others, improved access to key heritage (natural and cultural) sites through travel facilitation, as well as improved accessibility of other tourism offerings to targeted domestic market segments. South Africa is fast becoming a notable global competitor as an attractive destination for events (business, sporting and lifestyle) and has experienced the benefits of hosting a number of large events over the last few years. In addition to the economic spin-offs, the hosting of major events could be used as an effective tool to help promote, position, and brand a destination. Events can improve the geographic and seasonal benefits of tourism, and encourage, in particular, domestic travel. There are opportunities for government and private sector to harness the potential growth afforded by the hosting of events. The challenge will be to establish the necessary linkages to ensure the development of collaborative strategies so that lasting benefits are creating across South Africa. A set of proposals will be developed on how best to encourage the hosting of (both international and domestic) events in South Africa. TABLE 4: EFFECTIVE MARKETING OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE Improve market Institute an improved Lead: SA Tourism  Updated and and segment priority tourism market enhanced Tourism prioritisation identification tool to deliver Contributing Partners: Growth Strategy increased volume and  Provincial Tourism with clear portfolio value and to optimise and Marketing Agencies focus maximise limited  Local Tourism communicated to resources Marketing Agencies; all stakeholders.  Industry  Quarterly reporting on numbers achieved. Enhance Design and implement Lead: SA Tourism  A product driven effectiveness of product driven marketing integrated international approach Contributing Partners: marketing marketing  Provincial Tourism approach Marketing Agencies implemented  Local Tourism Marketing Agencies; Industry 20 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE Introduce a Lead: SA Tourism,  Marketing comprehensive set of campaigns that are marketing campaigns and Contributing Partners: targeted and which resources for priority  Provincial Tourism leverage industry markets with collaboration Marketing Agencies resources and from industry.  Local Tourism support. Marketing Agencies;  Industry Develop and implement an Lead: Department of  International International Tourism Tourism Tourism Relations Relations Plan/Strategy to Plan developed leverage on Diplomatic Contributing Partners: and implemented. and multilateral relations.  DIRCO  Biannual reports on  DEA the implementation  SA Tourism of the plan.  Brand SA and  Private sector Establish Confirm and implement Lead: GCIS and DIRCO  A signed protocol effective Brand brand management to guide Management of protocol including specific Contributing Partners: communications in the South crisis protocol.  NDT the event of fast African Tourism  SA Tourism response required brand  Provincial Tourism in order to manage Marketing Agencies unexpected  Local Tourism negative Marketing Agencies perceptions.  Industry  Clear brand values and branding guidelines made available to all stakeholders. Expand and Implement a substantially Lead: SA Tourism  A new Domestic improve enhanced and expanded Marketing Strategy domestic Domestic Tourism Contributing Partners: with a range of marketing Marketing Strategy.  NDT collaborative activities and  Provincial initiatives with travel Departments industry, provinces facilitation  Local (particularly and municipalities. programmes cities) government  Trade and  Product Owners 21 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE Implement the revised Lead: Department of  Implementation of Domestic Tourism Growth Tourism the Domestic Strategy based on new Contributing Partners: Tourism Growth consumer insights and  SA Tourism Strategy. update to align with the  Provincial Department expanded SA Tourism responsible for marketing strategy and the Tourism Domestic Travel  Local destination Facilitation Programme. marketing agencies  Attractions,  Educational, Environmental, and Heritage Institutions, Transport Providers Encourage and support Lead: Provincial Tourism  Regional and Local Regional and Local Marketing Agencies domestic Tourism Organisations to campaigns communicate the Contributing Partners: implemented. importance of regional and  Provincial Department local campaigns in driving responsible for the domestic market and Tourism creating opportunities for  Local Government domestic travel.  NDT  Industry Attraction and Analyse the current Lead: SA Tourism  A comprehensive hosting of calendar of major events plan, with clear events and their impacts. Contributing Partners: guidelines and (business,  NDT resourcing sporting and Develop a strategy with  Relevant Government estimates, for lifestyle) to reference to excellent Department e.g Sports stimulating and improve global and local practice to and Recreation supporting events seasonal and support events that can  Provincial that can improve regional spread improve regional and Departments geographic and of tourism seasonal spread of responsible for seasonal spread. benefits. tourism, particularly Tourism (lead in domestic tourism. (Bid for, respect of provincial and secure major events) international events).  Cities and  Industry 22 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026

10.2 Pillar Two – Facilitate Ease of Access Outcome Statement: Seamless travel facilitation and access to participate in tourism. This pillar specifically focuses on addressing impediments that limit the ability of potential international and domestic tourists to travel to and within South Africa. Even with the best branding, marketing and product, the growth of the sector will be impacted if restrictive conditions are maintained in the regulatory environment. If there is improved ease of access, tourism numbers will increase. A particular focus relates to ensuring the facilitation of travel through best practice access management for international visitors, including visa regulations, passenger and airport data as well as movement systems. Full implementation of the changes to visa regulations approved by Cabinet in October 2015 will significantly ease travel access. Measures already in place have resulted in a rapid positive response in visitor numbers. While the role for industry partners is largely confined to ensuring visa requirements are correctly communicated to all travel partners to facilitate travel, it also involves monitoring and communicating problems in respect of visa processing capacities and turn-around times. The design and implementation of an Accredited Tourism Company Programme (ATCP) for particular markets is a further part of this pillar. The industry, together with the NDT will ensure that the system to accredit such companies is well understood, supported and that there is proper compliance. The second major area in this pillar relates to aviation/airlift. Aviation plays a vital role in bringing visitors from all over the globe to experience the beauty and hospitality of the region. South Africa is a long haul destination for the main overseas tourist markets and the facilitation of air connectivity with prioritised markets must remain a top priority. Presently the cost of air transport (which is in part a function of available airlift capacity) is a major barrier for travel to South Africa even though the destination provides exceptional value for money. While decisions about flight routes and frequency are based on business profitability in the global context, airline decisions to fly to South Africa could be influenced through ensuring ease of access, appropriate infrastructure and a destination that is attractive. Therefore, a better understanding of airlift barriers, including air service agreements between countries, routing, capacity and load factors, slots and pricing, as well as cost input for airlines, amongst others, is required. This will allow for the aviation and air transport industry and the relevant Departments to better motivate and plan for changes where required to improve the South Africa’s air accessibility. Furthermore, the need to create a conducive business environment for emerging tourism businesses to ensure their participation in the tourism economy cannot be overemphasised. This would require the implementation of a plan to simplify the regulatory requirements for tourism businesses within all spheres of government. Overall, regulations are a necessity to provide guidelines for business practices; however, their unintended consequences could become a barrier. Therefore, it is imperative that the sector provides inputs in the development and review of regulatory instruments with an impact on tourism from inception on a regular basis. 23 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 TABLE 5: FACILITATE EASE OF ACCESS OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE Facilitate Monitor and highlight any Lead: NDT and Industry  Monitoring and increased travel visa processing related reporting process through the challenges within priority Contributing Partners: agreed upon and put in application of a markets for timeous  SA Tourism country place; tourist friendly response. offices  Quarterly reports visa regime and  Trade provided to NDT. automated  DHA passenger movement and Implement modernisation Lead: DHA  monitoring initiatives in respect of visa systems processing for tourist travel Contributing Partners facilitation.  NDT  DOT  ACSA  Industry Design, implement, Lead: NDT  Customised ATCPs monitor and maintain an implemented in all Accredited Travel Contributing Partners priority tourism source Company Programme.  DHA markets as defined by  SA Tourism SA Tourism Strategy.  Industry Participate in the Lead: NDT  Tourism representation Immigration Advisory on Immigration Board. Contributing Partners: Advisory Board (IAB).  TBCSA and  Clear positions  Other tourism related developed in members of the IAB consultation with industry for presentation to the IAB as appropriate. Improve airlift Monitor air service Lead: DoT and NDT  A quarterly updated access, agreements, routes, report on routes, particularly for carriers, air seats and load Contributing Partners: carriers, capacities, air priority markets factors, from priority  SA Tourism seats and load factors source markets and the  Industry(AASA), flagging key areas of major air carriers  DoT’s Airlift Strategy focus and intervention connecting priority markets Planning Committee to be made available to to South Africa. (SPC) industry and all stakeholders. Ensure tourism Lead: NDT  Quarterly reports from requirements are the NDT regarding specifically included in the Contributing Partner: decisions taken and 24 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE implementation of the  DoT progress made in the revised Air Transport implementation of the Strategy through allocation Strategy. of a senior NDT official to the Strategic Planning Committee. Provide clear tourism airlift Lead: NDT  Clear tourism airlift proposals and positions for position papers and inputs into Bilateral Air Contributing Partners: proposals. Services Agreements.  SA Tourism  Industry (through AASA), as required. Ensure that airport and Lead: Industry  Information needed to border control authorities plan for tourism growth have the information Contributing Partners: to facilitate the needed to plan for tourism NDT provision of resources growth to facilitate the SA Tourism needed to cope at peak provision of resources DoT times provided on an needed to cope at peak ongoing basis. times. Improve Develop and implement a Lead: NDT and SA  Domestic Air Travel domestic air plan/strategy aimed at Tourism Strategy developed. access encouraging domestic air  Annual Report on the travel to increase Contributing Partners: implementation of the connectivity, frequency  Industry (domestic plan. and affordability. airlines)  Provinces,  Business Chambers,  DoT Create a Conduct periodic review of Lead: NDT  Tourism needs conducive and policies with an impact on identified and legislative and tourism in consultation with Contributing Partners: incorporated in all regulatory stakeholders to establish  Industry relevant policy environment for gaps and international best  Provincial prescripts. tourism practices. Departments development responsible for and promotion Tourism  Relevant Government Departments Facilitate ease of Investigate how and where Lead: NDT  Report on barriers for doing business the regulatory environment doing business with to ensure for tourism businesses Contributing Partners: 25 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE growth of the could be simplified, and  Provincial and local recommendations/key tourism develop a programme to government interventions. economy work with the relevant  Industry  Implementation of authorities at all levels,  Tourism SMMEs interventions and for with particular focus on  Department of Small alleviating the relieving the regulatory Business regulatory burden on burden on Small, Medium Development tourism businesses. and Macro Enterprises  Other Relevant (SMMEs). Departments

10.3 Pillar Three - The Visitor Experience Outcome Statement: Provide quality visitor experiences for tourists (both domestic and international) to achieve customer satisfaction and inspire repeat visitation. The provision of experiences that are distinctive, environmentally friendly, authentic and deliver unique stories and outstanding services to tourists at all stages of their journey is key. This pillar includes enhancements to elements of the visitor experience across all visitor touch points. Areas which involve tourist specific infrastructure to be developed, maintained, and enhanced, include: (a) World and National Heritage sites as well as National. Provincial and Municipal parks which offer significant opportunities for innovation and improvement of the tourist experience. (b) General destination enhancements at important tourist sites which must be supported through employment creating schemes that provide safety, information, cleanliness, attractiveness and tourist infrastructure needed to meet visitor demand (delight, excite and keep the momentum). (c) New tourism experiences, which should be based on the various interests and preferences of target markets and segments. In particular, the emerging travel segments in the domestic market present an opportunity for appropriate product development. General infrastructure supply considerations of particular importance to tourists and tourism businesses include: (a) Enhancing the capacity of telecommunications to ensure connectivity (particularly Wi-Fi access and speed). (b) Ensuring appropriate tourism signage. (c) Providing effective and intermodal ground transportation links – both private and public – and the regulations that govern these (including licensing) to support independent tourist movement including to more out of the way destinations. (d) Augmenting tourism safety and security through building on the success of tourism safety programmes. Included in this pillar, as it also has critical bearing on the visitor experience, is the development of excellent tourism skills and service levels with a special emphasis on soft skills. This involves: (a) Establishing the correct skills in all parts of the value chain to deliver the best possible experience. Service excellence can only be realised through addressing skills gaps and addressing areas with scarce skills, as well as through broader interventions relating to the establishment of a conducive environment for new entrants, opportunities for career advancement and professionalisation of certain occupations. (b) Appropriate and accessible education and training offerings. A comprehensive Tourism Human Resource Development (THRD) audit has being conducted, and has informed the development 26 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 of a strategic framework for tourism human resource development for a 10 year period (2017- 2027). The implementation of this Strategic Framework will lay the foundation for advancing the industry through an appropriately skilled workforce. The THRD Strategy should seek to address underlying skills supply and skills demand challenges as they relate to the overall skills system as a critical component of the tourism industry. This will require the coordination and facilitation of the roles and functions of stakeholders who must contribute to skills development in the industry, including accredited training providers (both public and private), industry and government stakeholders. Furthermore, this will require that the relevant Sector Education and Training Authority, is well versed in the particular characteristics and peculiarities of an industry that is responsive to the specific needs of a diverse employer base which includes a large number of SMMEs. Developing viable enterprises in the tourism industry through leveraging the support of dedicated institutions focused on promoting local economic development of entrepreneurs. Negative perceptions of the attractiveness of tourism as a career relates to a number of factors including: (a) Lack of a decent work environment: Poor employment conditions in the industry in terms of wage levels and working conditions are impacting on staff retention, motivation and recruitment of learners into these sectors. These play a key role in preventing the industry from being seen as an employer of choice amongst young people. (b) Lack of appreciation of industry employers of the need for a skilled workforce, particularly with respect to elementary level occupations this appears to be more prevalent in the smaller tourism establishments; (c) Low skills levels among the vast majority of tourism workers. (d) Lack of or limited career mobility more especially in some sectors of tourism such as hospitality or in some elementary occupations across all sectors; (e) The poor quality of trained tourism officials, (f) A lack of understanding of the nature of work in the tourism industry; and a related problem of the mismatch between learner aspirations and the perverse incentivisation of learners to enter into tourism training at both school and post school level. The key problem here is that tourism is perceived as an “easy path” to achieving a National Senior Certificate and for access to higher education. These can be addressed, and basic skills improved, by reviewing the quality of training provided at both school and post school levels, the enhancement of teaching and assessment skills in the industry, the provision of quality career guidance for learners at school and post school level, the integration of workplace oriented learning for students and a review of training curricula which is responsive to the rapidly changing tourism environment. TABLE 6: THE VISITOR EXPERIENCE OBJECTIVE ACTIONS ROLE PLAYERS KEY DELIVERABLE Diversify and Investigate and develop Lead: Provinces and  A priority list of enhance tourism niche market Industry niche market tourism product products with the highest products/experienc offerings ability to attract more Contributing Partners: es to be developed. travelers in line with the  NDT  Prioritised Niche competitiveness of a  SA Tourism Tourism Strategies locality e.g. marine and  Provincial Tourism in place. coastal tourism, science Marketing Agencies 27 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS ROLE PLAYERS KEY DELIVERABLE tourism, adventure tourism  Local Government  Progress on the etc.  Relevant Government implementation of Departments the prioritised niche markets. Improve major Work with WHS, National Lead: NDT  Continued tourism sites: Heritage Sites National as implementation of Upgrade well as Provincial Parks to Contributing Partners: the existing experiences at improve the visitor  WHS and National programmes. World and experience through Heritage Sites as well Visitor perceptions National infrastructure provision, as their custodian to be tested after Heritage Sites training and systems departments implementation. as well as development.  Provincial and Local National and Government where Provincial and appropriate Municipal Parks  Local tourism industry where appropriate. Enhance local Implement a public Lead: NDT  Operationalisation destination sites employment programme and expansion of through for tourism that has a Contributing Partners: the Blue Flag cleanliness, number of focus areas,  Programme Beach programme. safety and starting with Blue Flag Implementers  Commence security, beaches and a focus on  Site Partners implementation of aesthetics, and marine and coastal additional focus information tourism. areas of “Working improvements for Tourism’, Ensure alignment of the including hiking Expanded Public Works trails and urban Programme (EPWP) Goals precincts. with local economic needs to ensure sustainability of employment. Provide tourism Expand on the lessons Lead:  A Model to experiences and learnt on the viability of transform facilities that government partnering Contributing Partners: underutilised state cater to with industry/private sector owned tourist domestic market to undertake the effective NDT with local and facilities into viable segments management and provincial government in offerings for the marketing of underutilised partnership with domestic market. state owned tourist industry/private sector  Selection of cases facilities such as resorts, (particularly experienced with motivation to campsites, etc. and black entrepreneurs). roll-out. develop a viable model. 28 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS ROLE PLAYERS KEY DELIVERABLE Identify State owned Lead: NDT & DEA  Implement the assets suitable for lower turnaround LSM holiday travel and, Contributing Partners: strategy. develop and implement a  Provincial  Quarterly progress turnaround strategy. Government reports made  local government, available to the  private sector NDT and all partners. Increase Determine and Lead: NDT  Document bandwidth to communicate the tourism broadband needs. support the industry’s Wi-Fi needs by Contributing Partners:  Table proposals activities of region, and motivate that  Relevant Government with the tourists and this be prioritised within Department and Department of tourism national, provincial and Agencies Communications. businesses alike local plans.  Provinces  Local Government Facilitate the development  Industry of Wi-Fi access in key visitor precincts, World Heritage Sites, other iconic sites and gateways. Enhance tourist Review and revitalise Lead: NDT  Reviewed Tourism safety and tourism safety Safety Programme. ensure effective programmes including the Contributing Partners:  Roll out plan responses to enhancement/expansion  SAPS communicated and incidents of of the Tourism Safety  Provinces, implemented with crimes against Initiative as required.  Municipalities, and all stakeholders. tourists  Industry  Quarterly progress reports. Facilitate the development Lead:  Tourism Safety of a cadre of safety officers Officers in the tourism sector who Contributing Partners: Programme are able to address safety NDT, provinces, developed and issues across varying municipalities, SAPS and implemented contexts including crime industry nationwide. protection and safety (this would be managed through the THRD Strategy). Facilitate tourist Identify actions to support Lead: DoT and NDT  Status quo report travel through tourist travel and industry that highlights improved performance (Set up a Contributing Partners: critical areas to be private and Tourism and Transport  Industry (SATSA, addressed with public transport Forum). SAVRALA, AASA - short, medium and for tourists with regards to 29 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS ROLE PLAYERS KEY DELIVERABLE Engage directly with the domestic air carriers, long term action National Master Action coach and bus plans. Plan for Transportation  Private rail operators To be updated Committee, to ensure the  PRASA quarterly as an inclusion of tourism needs. input into the National Master Action Plan for Transportation Committee. Quarterly Tourism and Transport Forum reports. Improve tourism Ratify and implement a Lead: NDT &  Quarterly and skills and multi-stakeholder CATHSSETA annual reports on service response to the the implementation excellence implementation of the Contributing Partners: of the revised recommendations of the  Industry THRD Strategy. Tourism Human Resource  FET Colleges Development (THRD) framework. Investigate the potential for Lead: NDT &  Report on potential the professionalisation of CATHSSETA for specific tourism professionalisation occupations and trades. Contributing Partners: of selected tourism Specific occupations  Research Institutions occupations and recommended include  Educational impact thereof. Chefs, Executive Institutions Managers, Professional  Industry Event Managers and Tour Operators. Develop and implement an Lead: Industry  Code of Conduct agreed Code of Conduct and Service and Service Charter along Contributing Partners: Charter in place. the activity/ value chain.  Associations within tourism value chain Assess the usefulness and Lead: DBE and NDT  A memorandum of appropriateness of tourism agreement is as a high school subject Contributing Partners: reached with the arising from the Skills  Industry DBE on actions to Review study and  Educational be implemented to implement Institutions address challenges recommendations  CATHSSETA of tourism as a high contained therein. school subject. 30 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS ROLE PLAYERS KEY DELIVERABLE Facilitate engagement with Department of Basic Education (DBE) on the findings of the Skills Audit in respect of Tourism training at high school level in order to respond to the key findings.

10.4 Pillar Four - Destination Management Outcome Statement: To provide for sustainable development and management of the tourism sector. Destination management relates to practices, activities and relationships that help organise the tourism system. These typically include planning; the development of standards, guidelines, and regulations; research; the definition of roles and responsibilities; and the development of structures and processes that organise information flows and relationships between the various stakeholders in order to optimise the destination’s performance. Effective and proactive destination management is critical for competitiveness.

10.4.1 Roles, responsibilities and capabilities of provincial and local government in tourism One of the strategic objectives of this pillar involves developing a clearer articulation of the roles and responsibilities of the different spheres of government in tourism. These must be clearly established as tourism is a concurrent function. Definition of roles and responsibilities should also note that ‘one size does not fit all’ and should allow for the appropriate calibration of these to the particular circumstances of an administrative region, including its size, scope and resources, as well as tourism potential and existing development. Guidelines around appropriate enterprise support activities, as well as marketing activities and marketing focus are specific areas in which roles and responsibilities must be clarified. Linked to this must be the development of the capabilities and competencies to support these clearer roles and responsibilities.

10.4.2 Research, analytics and statistics Developing excellent skills and tools within all spheres of government and relevant agencies is also important for destination management. One particular area relates to the research, data, analytics and market intelligence required to guide planning, decision making and performance monitoring and evaluation. Of particular importance is the development of a national tourism information system to provide critical tourism information for decision-makers. While there have been certain improvements in the data and information systems in tourism, including the development of a Tourism Satellite Account, improvements in the speed with which StatsSA has released its monthly tourist arrivals, and the introduction of a Tourism Business Index by Tourism Business Council of South Africa (TBCSA), much more is required in this important area. 31 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 One priority relates to the development of a predictive model for the economic impacts of tourism, and forecasting of tourism performance. Another area relates to developing a fuller picture of the size, nature and characteristics of the tourism sector, particularly the extent and variety of offerings and businesses.

10.4.3 Inter-departmental support for tourism Destination success requires government collaboration across functional boundaries. In order to build inter-departmental support for tourism, a well-documented case for tourism will be developed and communicated. This will highlight tourism’s importance in the context of an economic recovery strategy for the country and will indicate the important roles that many line departments play in supporting the overall destination.

10.4.4 Standards, guidelines and quality assurance Standards and guidelines establish required levels of performance. They also manage specific operational risks and establish best practices. Responsible tourism is already supported by a standard, as is shark cage diving, an area with particular risks to tourists. Responsible tourism is an important consideration for the destination as there is a broad expectation by many tourists that businesses value their staff, communities and the natural resources in their environment. In terms of the environmental element of responsible tourism, resource-efficiency has the added benefit of cost saving for businesses. The reduced operational costs, combined with the growing market trend for tourists to consider responsible tourism practices in their choice of destination and selection of products/ experiences within destinations, provide a business case for industry to improve its triple bottom line practices. Grading involves adherence to certain quality assurance standards in line with a star grading allocation. The Tourism Grading Council of South Africa (TGCSA) is currently undergoing a policy review to guide its future orientation. This will lead to the implementation of a more effective business model and better tourist and industry utilisation. Tourism facilities will also be improved by the introduction of a program to incentivise investments in making such facilities more accessible to people with disabilities, starting with the most visited attractions. TABLE 7: DESTINATION MANAGEMENT OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE Improve the Develop clear proposals Lead: NDT and SA  Best practice focus and and guidelines, to be Tourism proposals and delivery of formally adopted, on best guidelines tabled tourism practice, roles and Contributing Partners: at various fora marketing and responsibilities in tourism  Provinces between national, development marketing and  Local government provincial and local support development across the  COGTA spheres and provided by spheres of government.  Relevant marketing adopted. provinces and agencies  Communication local Strengthen relationships and supporting government. between national, documentation. provincial, district and 32 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE local tourism organisations to maximise product development and marketing that reinforces product differentiation and meet visitor demand. Build capacity of Lead: NDT  Capacity building provinces and local programme rolled- government in specific Contributing Partners: out. areas within confirmed  COGTA definition of roles and  Educational institutions responsibilities linked to (service providers) priorities in the NTSS.  Provincial government  Local government. Assess the current capacity as well as the required competencies to fulfil these roles as a necessary precursor to the design of a capacity development programme. This will be disaggregated for different tiers of government officials. Review spatial Lead: Local government  Spatial development initiatives development plans (SDI’s), priority areas for Contributing Partners: incorporating tourism infrastructure  Provinces priority areas for investment and provincial  GOGTA tourism developed plans to develop products and experiences that would improve the current offerings. Improve the Starting at the national Lead: NDT  Tourism quality of level, develop and Performance decision implement a tourism Contributing Partners: Dashboard in making, performance dashboard  SA Tourism place. planning based on current sources  Industry evaluation and of data. At the same time,  StatsSA, monitoring in develop a competent tourism predictive model, and explore inclusion of the visitor economy concept, which can forecast 33 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE macroeconomic tourism performance. Determine and implement  A set of proposals international best practice on data and for national tourism information information systems sources, uses, based on brief of applicability and stakeholder information technology needs and scope for platforms, based implementation. on best practice. Improve Develop and Lead: NDT  A compelling case understanding communicate the socio- for tourism that of and enhance economic case for tourism Contributing Partners: clearly articulates support for as an effective briefing  Industry roles for other tourism across tool for senior officials and  SA Tourism departments and national Ministers.  Provinces spheres and government coordination.  The case will include an outline of critical funding needs for tourism and expected positive socio economic impacts. Introduce best Finalise the policy review Lead: SA Tourism  New model practice of the Tourism Grading (TGCSA) implemented. approaches and Council of South Africa risk (TGCSA) and introduce a Contributing Partners: management new business model.  NDT tools to  Industry enhance the  Provinces sector’s performance Monitor industry and Lead: SA Tourism  Annual consumer satisfaction to (TGCSA) performance inform enhancements to reports and the grading system. – Contributing Partners: strategy updates. integrate research about  NDT customer satisfaction into  Industry one common platform or  Provinces database Develop and implement a national web based tourism feedback system 34 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE to gather customer satisfaction information. Identify areas in which Lead: SA Tourism  As necessary, additional, specific (TGCSA) research and standards or guidelines introduce new are required through Contributing Partners: standards industry engagement and  NDT (voluntary or monitoring of global  Industry compulsory) or developments and  Provinces guidelines. develop criteria for the  SABS grading of high risk sectors e.g. adventure tourism. Provide information on Lead: NDT  Information to technologies and industry on the resources for the Contributing Partners: facilities to support expansion of resource-  DEA the implementation efficient infrastructure and  Industry of resource operational practices as  National Cleaner efficient there are opportunities in Production Centre technologies and new builds and retrofitting  The Green Fund infrastructure in to support industry’s  Other relevant entities new builds and implementation of focused on the green retrofitting. responsible tourism. economy, renewable energy and waste management Expand universal access Lead: NDT  Finalise and within the value chain implement a starting with major Contributing Partners: Universal Access attractions.  TGCSA (UA) programme at  Industry major attractions.  Provinces  Needs assessment report on major sites complied through UA audits at key sites nationally. Develop a central Lead: NDT  Supply side database to understand database that is supply and demand Contributing Partners: updated on an on- factors for effective  TBCSA (Industry) going basis. planning and monitoring  Provinces of performance.  Local government 35 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026

10.5 Pillar Five - Broad Based Benefits Outcome Statement: Promote the empowerment of previously marginalised enterprises and rural communities to ensure inclusive growth of the sector. The development and growth of the tourism industry should take place at grassroots level and not exclude poor communities. This could be unlocked by the sector working together and looking at priorities that presents good growth opportunities that will ensure inclusive participation of more Black people – especially women, and young entrepreneurs. This pillar therefore focuses on transformation, rural and township tourism development, enterprise development and investment – none of which is mutually exclusive. Improvements are required in all of these areas to strengthen the realisation and decentralisation of broad based benefits from tourism to rural communities. Transformation of the industry must be stepped up in a way that supports growth through the expansion of players linked to the realisation of opportunities for new market development. Transformation targets are grounded in the Amended Tourism BB-BEE Sector Code, in particular, the implementation of the five elements namely: (a) Ownership, (b) Management control, (c) Skills development, (d) Enterprise and supplier development, as well as (e) Socio-economic development. Transformation is critical for social stability, the reduction of inequality and poverty, and for inclusive growth. It underpins our potential tourism competitiveness, as it relates to the responsibility of the destination in the distribution of economic benefits, and is intrinsic to how tourists will experience the depth of the South African destination offering (and its authenticity). For all of these reasons it is critical that significant progress is made in the inclusion of black South Africans in the tourism economy, at all viable points along the value chain. Work is required on the overall goals and targets as outlined in the Amended Code, with specific actions implemented at each destination site and along each major supply chain and larger tourism enterprises. Growth of the sector through enhancing more social inclusion through transformation, will ultimately help address the challenges of unemployment, poverty and inequality.

10.5.1 Enterprise Development and Finance Effective enterprise support will allow for a diversity of experiences as well as the development of black tourism related businesses. In this regard, a full review of lessons learned from the Tourism Enterprise Partnership (TEP) and other enterprise programmes focused on tourism, as well as access to finance for SMMEs is required. Good research into best practice on clusters, value chains, procurement and market access considerations is also required. An assessment of the role and contribution of other national, provincial and local government as well as relevant entities in respect of enterprise development is essential. This should lead to the design of an enterprise development programme that can support a set of diverse, viable, and sustainable enterprises both in tourism and within the broader tourism economy. Importantly, it could also leverage appropriate support for the sector in areas which are not the core mandate or competency of the NDT. 36 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 Linked to the objectives of transformation and expansion of the tourism economy through enterprise development is the issue of access to finance for development. Access to finance in tourism is difficult for small and medium enterprises. This is true for investment finance, working capital and finance for acquisitions. Many factors limit access to finance – a perceived lack of viable and feasible business plans, limited experience in tourism, limited equity contributions, and a highly competitive industry, amongst others. The review of lessons learned in enterprise development will also fully investigate the matter of finance for different size businesses, both existing and for new, as well as those providing tourism facilities and services, and those supplying into the industry. While Development Finance Institutions (DFIs) and banks do provide some finance to tourism businesses, this is highly curtailed. Reasons for this need to be better understood and a range of mechanisms put in place to ensure that this is addressed.

10.5.2 Rural tourism development, and benefits to host communities Enhancing rural areas for sustainable and inclusive tourism development also ties into the broader area of enterprise development and support, and business and investment growth. In an effort to meaningfully increase local benefits, particularly within host communities living in areas where tourism potential exists, effective business and enterprise development is required. Developing rural areas for tourism needs a clear approach and understanding of the barriers that have restricted this to date. This should include considerations such as challenges with integrated planning, infrastructure provision, access to land, leases, and community partnership models. There is now significant experience of both successful and less successful investments involving community partnerships in rural tourism businesses. The lessons learned and critical success factors need to be well documented and communicated. This could include the identification and provision of support to land reform projects with tourism potential as part of the strategy to promote rural and community based tourism. This would require the grooming of a cadre of tourism entrepreneurs amongst neighbouring communities as opposed to the notion of community tourism which in most cases leads to infighting and subsequent abandonment of great tourism infrastructure invested in communities. In this regard the National Rural Tourism Strategy will be revisited and updated to provide strong direction on implementation of a rural tourism programme taking into consideration these, and other factors. It will also link explicitly to transformation and the need to provide diverse visitor experiences. Work will be done to enhance the capacity of officials mandated with tourism development at local and provincial levels. TABLE 8: BROAD BASED BENEFITS OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE Achieve Broad Develop and implement a Lead: NDT  Set of practical Based Black range of proposals for proposals to advance Economic inclusive growth across Contributing strategic and growth Empowerment the tourism value chain. Partners: focused transformation (B-BBEE)  Representation of the tourism industry targets from the Tourism recommended to the BEE Council, Minister. 37 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE  Procurement  Bi-Annual progress managers of large report on industry and medium achievements. tourism firms.  Implementation of proposals. Support Review lessons learned Lead: NDT  A lessons learned report sustainable from Tourism Enterprise with proposals on future Enterprise Partnership (TEP) and Contributing enterprise development development other enterprise Partners: programmes. development initiatives  Enterprise and develop a set of development proposals on training, agencies mentorship, up skilling  DFIs financing, and investment. Design and implement an Lead: NDT  A clear and refined improved tourism focused model for enterprise development Contributing tourism enterprise programme including for Partners: development and suppliers into tourism  Department of support implemented. businesses. Small Business Undertake an Development assessment of the role  Tourism BEE and contribution of other Council state institutions whose core mandate is to promote SMME development. Expand the Review the National Lead: NDT  Revised National Rural benefits of Rural Tourism Strategy Tourism Strategy with a tourism to rural and benchmark this Contributing set of focused, areas and against other such Partners: actionable plans on rural townships strategies. Link this to the  South African tourism development transformation and National Parks with priorities (and areas community beneficiation  Industry with high potential) and agenda with a particular (representatives customised plans. focus on the factors that are  Quarterly/annual necessary to create a experienced in implementation conducive environment operating progress reports. for rural tourism concessions with development. Implement communities.) and monitor  DRDLR implementation.  DEA  DAC 38 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 OBJECTIVE ACTIONS PARTNERS KEY DELIVERABLE  Provinces  Local government  Local community Review investments that Lead: NDT  A report investments have been made into made in rural areas. tourism facilities in rural Contributing  A guideline/ model for areas and townships to Partners: future rural tourism date to determine  Provinces investments facilities that are/ are not  Local government operational and success  Industry factors. This will provide  Investment a useful guideline for agencies future investment into similar initiatives. Develop and implement Lead: NDT  Quarterly and annual strategies of enabling reports on the rural and township Contributing implementation of the stakeholders to access Partners: revised THRD Strategy. capacity development,  CATHSSETA training and mentoring  DRDLR opportunities. Review the  Provinces supply of skills training  Local government for rural and township stakeholders. 11. CRITICAL, PROCESS, SUPPORT AND SUCCESS ISSUES In order to optimise tourism growth, changes are required in the processes of engagement and action, and in the redefinition of roles. Furthermore, there are critical factors that need to be taken into consideration on an ongoing basis to ensure the inclusive and quality growth of the tourism economy.

11.1 Process and Support issues There is a need for major improvements in the effective working relationships in tourism in three specific areas: (a) Relationship One - Public and Private sector, centred on planning for marketing, branding, skills development and transformation programmes. There needs to be practical and effective consultation and measurement with agreed deliverables in this relationship. The relationship needs to be more transparent and effective than it is currently perceived to be. (b) Relationship Two - Between national departments, focused on addressing impediments to tourism development and enhanced alignment. Inter-Ministerial collaboration is essential on issues which impact significantly on the five pillars identified and particularly with regard to immigration and airlift considerations. Departments which have a role to play in supporting tourism include, inter alia, the Departments of Telecommunications, Home Affairs, Transport, 39 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 Trade and Industry, International Relations and Cooperation, Environmental Affairs, Arts and Culture, Rural Development, Basic and Higher Education, Public Works, Sports and Recreation and the South African Police Services. (c) Relationship Three – Between Tourism Agencies focused on goals and targets for destination marketing implemented by National, Provincial and local agencies. This is needed to ensure full support for the priorities in this NTSS, and, in particular, for the effective and efficient use of state funds and budgets for tourism marketing to both international and domestic tourists.

11.2 Critical Success Issues for Sustainable Competitiveness The following issues will be critical for the successful implementation of the NTSS. a) Strategic and visionary leadership driven by an agreed, shared and inspirational vision, a set of guiding values and strategic priorities, which are accepted and embraced by all public and private-sector stakeholders b) Continuously advocating tourism among all politicians and opinion leaders as a strategic and sustainable industry, and a key contributor to GDP and job creation in South Africa (from the national to the local levels), which require appropriate funding. c) Continuously and proactively aligning with key developments and trends in the macro (technological, environmental, socio-cultural, political and economic), competitive and market environments. d) Ensuring that future tourism product development and packaging are value and market-drive i.e. responding to the needs of the future tourist. e) Strategically managing reliable, timely and accessible knowledge (such as statistics, trends, competitors, markets and strategies) and research as a key to future tourism planning, marketing and management of the resource base. f) Ensuring a results-driven, streamlined, dynamic and adaptable tourism structure from national to local level, with clarity on roles, responsibilities and relationships (avoiding unnecessary bureaucracy). g) Continuously focusing on sustainable competitiveness and balancing economic, social and environmental issues. h) Ensuring that the sector responds to the positive and negative issues that impact the growth of the sector i.e. risks to be identified and effective mitigation plans put in place. 12. INSTITUTIONAL ARRANGEMENTS The successful implementation of the NTSS to realise the inclusive and quality growth of the South African tourism economy is dependent on the commitment of all stakeholders to adopt an integrated approach in implementing the identified strategic priorities and actions. This requires sound and effective governance structures and processes that manage and support tourism. Engagement of the private sector and other stakeholders, alongside government, at a national, provincial and local level is crucial. The institutional structures to manage and support tourism, are set out as follows: 40 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 FIGURE 17: SOUTH AFRICAN TOURISM INSTITUTIONAL STRUCTURE MINMEC: TOURISM Department of South African (intergovernmental forum of Tourism Tourism national Minister and MECs) N National A MIPTECH: MINMEC Tourism T Interprovincial Technical Stakeholders I Committee of Officials Forum O N A L Marketing Working Governance & Group Development Working Group Provincial Provincial P Departments Tourism R responsible for MECs Tourism Forum Marketing O Tourism Agencies V I N C I A Provincial Tourism L Stakeholders Forum R E Metropolitan / Metropolitan / District G District Regional Tourism Forum I Municipality Tourism O Association N A L L O C Local Tourism Local A Forum Tourism Local Municipality Association L 41 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 The above tourism institutional arrangements outline the structure as it pertains to the coordination of tourism activities between the public and private sector to achieve alignment in pursuit of implementation of the NTSS. The recommended structure represents a standard approach to tourism coordination within the three spheres of government. However, the structure may be adjusted and relevant substructures introduced taking into consideration the different circumstances of a particular destination / locality to enhance maximum implementation of tourism programmes, ensure functionality monitoring and reporting. The National Department of Tourism will lead in the effective coordination of the national layer of the institutional arrangements, whilst provinces must ensure the same at provincial level and provide support for the establishment of district/metropolitan and local structures. Local government must designate both the human and financial resources to enable proper coordination at that level. The relevant stakeholders to agree on the modalities to realise the effective coordination of the institutional arrangements taking into consideration local circumstances.

12.1 Arrangements at National Level The key structures at the national level are: NDT The Department is responsible for national tourism policy, regulation and development. SAT SAT is responsible for international and domestic marketing of South Africa as a tourism destination, quality assurance and providing strategic leadership on convention bureaus. MINMEC The intergovernmental tourism forum of the National Minister of Tourism and the provincial MECs for Tourism that discusses and agrees on national tourism policy matters. MIPTECH The interprovincial technical committee on tourism is an intergovernmental forum of national government tourism officials, heads of provincial tourism departments, SALGA, and CEOs of tourism authorities, which coordinate provincial and national tourism affairs in preparation for and support of the MINMEC. Tourism Working Groups Intergovernmental structure which deals with governance, planning, development and marketing issues to ensure alignment, coordination and collaboration. Governance, planning and marketing issues coordinated by NDT, whilst marketing issues are coordinated by SA Tourism. The working group considers and recommends relevant matters to MIPTECH. National Tourism A tourism multi-stakeholder forum coordinated by NDT and attended Stakeholders Forum by representatives from the private and public sectors representatives to deliberate on strategic and topical issues including the implementation of the NTSS. 42 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026

12.2 Arrangements at Provincial Level Effective tourism-coordinating mechanisms should be established at the provincial and local government spheres in order to ensure synergised efforts and optimal resource allocation and usage. The various tourism spheres should complement one another, culminating in a strong and effective provincial tourism development effort aligned to national priorities. The following are the recommended structures at provincial level: Provincial Departments Provincial Government Department mandated by the relevant responsible for Tourism legislation for tourism development. Provincial Tourism Marketing Provincial tourism authorities should align their international tourism Authorities marketing efforts with those of SAT to ensure synergy. MEC Tourism Forum Tourism Committee of Provincial MEC and District/Metropolitan Council Chairs and CEOs of provincial tourism marketing authorities, CEOs of other relevant entities and SALGA to discuss and agree on cooperative tourism programmes and strategies. The MEC should be informed about provincial tourism priorities, interests and challenges which require national attention for consideration and discussion by MINMEC. Provincial Tourism A provincial multi-stakeholder forum coordinated and attended by Stakeholders Forum representatives from the private and public sectors to deliberate on cross-cutting issues pertaining to planning, development and marketing. The Forum considers and recommends relevant matters to the MEC Tourism Forum.

12.3 Arrangements at Regional and Local Level The regional tourism function should be mainly a developmental one, and should focus on the following two structures: District/Metropolitan and A District multi-stakeholder forum chaired by the Executive Mayor or Local Tourism Forum the Chairperson of the Tourism/Economic Development Portfolio and attended by Local Mayors or Chairpersons of the Tourism Portfolio and supported by officials. Participation should also include the Executive Committee of the Regional Tourism Association to represent private sector interests, and other relevant regional entities, including representatives of provincial tourism department as well as the provincial marketing authority. The Forum shall deliberate and determine tourism priorities to support tourism growth and development in the region, facilitate cooperation and alignment with provincial tourism development priorities; and confer relevant issues for consideration by the MEC Forum. 43 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 The above arrangement can be replicated at a local level. District and Local Municipalities to keep and up to date database of all tourism operators in their respective regions (Supply database) which can feed into the provincial database. Regional and Local Tourism A regional tourism association constituted by tourism business Associations operators to organise and represent the interests of the private sector speaking in one voice. Depending on the local dynamics as not all the local municipalities have equal tourism strength and potential, the district may decide to establish the regional tourism Association. The Associations must keep an up to date database of all tourism service providers (affiliated members) for each region and locality (Supply database). 13. MONITORING, EVALUATION AND REPORTING The Department will lead, support activities, monitor and evaluate the implementation of the NTSS through a multi-stakeholder Delivery Forum which will serve as the NTSS implementation, monitoring and reporting mechanism. The Forum will be constituted by all role players who will enable the sector to realise the revised NTSS’s goal and objectives. The modalities of the Forum will be Furthermore, the mandate of the Panel of Experts that oversaw the review of the NTSS will be redefined to that of a "Strategic Think Tank" that will advise on macro environmental factors including but not limited to identifying and analysing emerging trends and major drivers of change, conducting benchmarking exercises as well developing position papers and communicating clear messages on a regular basis. The inputs of the "Strategic Think Tank" will inform the development of Annual Implementation Plans to ensure the coordinated implementation of the NTSS. 14. CONCLUSION The overall destination appeal for South Africa is strong. As the WEF competitive tourism index showed, South Africa is blessed with unbeatable cultural, and natural iconic attractions, and these will remain the mainstay of our destination offering for some time to come. Developing and marketing these assets appropriately, and ensuring they are delivered by a diverse set of businesses providing excellent service levels, will underpin the attractiveness and competitiveness of our destination into the future. In implementing the actions identified in this NTSS, South Africa will be placed on a path of inclusive tourism growth, which will deliver significant economic development to the country. There are a number of factors, namely, the currency weakness, varied destination assets, relative ‘safety’ in the face global terrorist threats, the relatively diverse markets already attracted and huge market potential that exists that bode well for tourism’s prospects. This potential must be realised through concerted and joint efforts. The revised NTSS represents a shared action plan for success. 44 NATIONAL TOURISM SECTOR STRATEGY(NTSS) 2016-2026 ANNEXURE A: List of Panel of Experts Members NO NAMES ORGANISATION DESIGNATION 1. Ms Amor Malan Shangri-La Community Development Project Manager Project 2. Mr Chris Zweigenthal Airline Association of Southern Africa Chief Executive Officer 3. Dr Diane Abrahams University of Johannesburg Director: School of Tourism & Hospitality 4. Mr Eddy Khosa Magelevendze Lodges Chief Executive Officer 5. Prof Ernie Heath University of Pretoria Emeritus Professor 6. Mr Jerry Mabena Thebe Services Division Chief Executive Officer 7. Ms Mmatšatši Ramawela Tourism Business Council of South Chief Executive Officer Africa 8. Mr Ndabo Khoza (Formerly with) Tourism KwaZulu Chief Executive Officer Natal 9. Mr Ravi Nadasen Tsogo Sun Regional Operations Director 10. Dr Salifou Siddo (Formerly with) Tourism Enterprise Chief Executive Officer Partnership 11. Mr Thakani Makhuvha Small enterprise Finance Agency Chief Executive Officer 12. Mr Thanduxolo Lungile (Formerly with) National Heritage Heritage Programmes Council Coordinator 13. Mr. Giju Varghese (Formerly with) South African South African National National Parks Parks: Managing Executive Director 14. Mr Thulani Nzima (Formerly with) South African Chief Executive Officer Tourism 15. Mr Victor Tharage Department of Tourism Director-General (Chairperson) 45