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Tourism Development Strategies: Enhancing Local Enterprises and International Markets

Discussing enterprise development, domestic tourism promotion, regional markets, and challenges in the South African tourism sector with a focus on growth and job creation.

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Tourism Development Strategies: Enhancing Local Enterprises and International Markets

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  1. Presentation to the Portfolio Committee on TourismMartin Jansen van Vuuren National Satsa Exco member Director: Grant Thornton Strategic SolutionsHoward Johnston Satsa Western Cape Chairman Owner: One World Language School

  2. Issues to address:Enterprise development and partnerships • Red Door • TEP • DTI Incentives • Associations • Access to Finance • Mentorship • Marketing channels • Satsa 2nd MOU with NDT • CATHSETA – skills levy

  3. Issues to address • Initiatives to increase domestic tourism development • Cost of travelling? • Increased access through infrastructure spend • Duplication between SAT & provincial marketing organisations?

  4. Domestic Tourism in South AfricaHow do we get SA residents to travel? 6

  5. Annual trips to each province 7

  6. Day trips should not be forgotten as a source of tourism revenue 10

  7. Spend by day trippers can be higher than spend by overnight visitors in some provinces 11

  8. The tourism sector contribution to development, growth and job creation

  9. The tourism sector contribution to development, growth and job creation

  10. The tourism sector contribution to development, growth and job creation

  11. The tourism sector contribution to development, growth and job creation

  12. Issues to address • Support for sustainable livelihoods to small, medium and micro enterprises • Governments buying behaviour – buy local, buy SMME?

  13. Issues to address • Shift in geographic markets & geographic spread • Traditional markets – USA, UK, Germany • New markets – India & China (visa issues?) • DIRCO – NDT, SAT & SATSA training

  14. Source of Overseas Tourists to South Africa in 2010 Brazilian tourists in 2010 boosted by the World Cup– 14 100 arrivals in June 2

  15. The majority of foreign tourists passes through Gauteng because of OR Tambo International Airport and the need for cross border shopping/trading 3

  16. Gauteng's share of foreign bednights are much less given the longer length of stay of foreign tourists in other provinces 4

  17. Issues to address • Tourism statistics • How many tourists do we actually receive per annum? • Over supply of hotels?

  18. International Tourism to South Africa in 2010 Total Foreign Visitor Arrivals:11 303 098 Total Foreign Tourists: 8 073 552 Total Overseas Tourists: 2 216 994 1

  19. Issues to address • Successes • World Cup • Airport developments • Public transport • Seven Wonders of the World • Increase in visitors • Responsible Tourism • Convention Centre • Design Capital

  20. Issues to address • Challenges that are facing the services industry • Liquor Bill • SANParks • Department of Transport • Airport taxes and access • Crime • Robben Island • Exchange Rates • Bank fees • Public Transport • Responsible Tourism • Skills Development • Visas

  21. Issues to address:Sector development • Case study: Edutourism • Definition • Growth and stats • Successes • Challenges • Development of youth tourism

  22. Discussion Martin Jansen van Vuuren Director Grant Thornton Strategic Solutions Tel: 021 417 8838 E-mail: martinjansen.vanvuuren@za.gt.com 12

  23. What is a tourist?

  24. International Tourism in 2011 • International tourist arrivals up 4.4% to 908 million • Growth projected between 3% and 4% in 2012 to reach 1 billion international tourist arrivals • Africa maintained international arrivals at 50 million • Gains of two million by sub-Saharan destinations (up 7%) was offset by the losses in North Africa (down 12%)

  25. Expenditure by foreign tourists is closely related to number of bednights spent in a province 5

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