Tourism and Local Government

1. Tourism and Local Government Douglas Cohen dcohen@salga.org.za 012 369 8012 July 2010 Economic Development & Planning Directorate

2. Purpose • The purpose of the presentation is to inform to the Portfolio Committee about the South African Tourism Sector and it relates to the experiences and challenges at Local Government. • To provide an overview on the impact of the implementation of tourism national plan for the local sphere of government. • To invite comments for further debate and discussion the opportunities and challenges of tourism for Local Government.

3. Overview • About SALGA • Introduction for Presentation • Local Government & Tourism • 7 Points related to Local Government Tourism Support • National Tourism Sector Strategy & Action Plans • Key Local Government Comments on the NTSS Action Plans

4. SALGA’s Positioning THE PLAYERS: A VAST ARRAY OF INSTITUTIONS, WITHIN WHICH SALGA HAS TO CRAFT ITS UNIQUE ROLE National Provincial Other • COGTA • Treasury • Presidency • DME • DEAT • dti • NDOH • Tourism • Premier’s Office • Local Government Departments • DBSA • FFC • Donors • World Bank • Civil Society • UCLGA • CLGF • Etc... S A L G A Municipalities

6. SALGA’s Organising Framework ANALYSIS SALGA’s three key main roles cut-across to underpin its 5-Year Strategic Objectives & Programmes Strategy, Policy and Research Finance and Corporate Services Governance & IGR Economic Development and Development Planning Provincial Programmes Infrastructure and Municipal Services Municipal Institutional Development Community Development OCEO Represent VISION To be consultative, informed, mandated, credible and accountable to our membership & provide value for money Support Advise

7. Overview • About SALGA • Introduction • Local Government & Tourism • 7 Points related to Local Government Tourism Support • National Tourism Sector Strategy & Action Plans • Key Local Government Comments on the NTSS Action Plans

9. Introduction I • Local government tourism represents the third sphere of public sector tourism. • While national and provincial tourism organisations are chiefly responsible for the design and implementation of tourism strategies and national and international marketing campaigns, it is the lesser-known local government authorities that often shoulder the responsibility for promoting and supporting the local tourism products.

10. Introduction II • Local Government also has significant impact not only the business environment but also on the natural and cultural resources in and around tourism destinations; for example: • Municipal roads, lighting, water and sewerage, public transport systems, signs, and, at times, airports and ports. • The provision of visitor information and funding regional and local tourism organisations. • The operation of attractions such as museums, art galleries, sports stadia, convention centres, parks, gardens, events, tours, and other amenities. • The tourism sector as it contributes to the social, cultural, economic and environmental well-being of an area in the following ways:

11. Introduction III

12. Overview • About SALGA • Introduction • Local Government & Tourism • 7 Points related to Local Government Tourism Support • National Tourism Sector Strategy & Action Plans • Key Local Government Comments on the NTSS Action Plans

13. Local Government and Tourism Local Governments Expectations From…

14. Local Government and Tourism Local Governments Expectations From…

15. Local Government and Tourism Local Governments Expectations From…

16. Overview • About SALGA • Introduction • Local Government & Tourism • 7 Points related to Local Government Tourism Support • National Tourism Sector Strategy & Action Plans • Key Local Government Comments on the NTSS Action Plans

17. # 1: Local Economic Development & Tourism I • Many municipalities have been tasked with a developmental agenda. • This includes the formulation, review or implementation of Local Economic Development (LED) strategies. • The LED planning process forms part of the IDP process as contemplated in the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000). • In many LED strategies tourism is seen as a catalyst for growth.

18. # 1: Local Economic Development & Tourism II • However in reality… • Tourism as a LED sector would be not relevant for certain municipalities. • The focus and needs of a Metro would be very different from smaller towns and/ or rural villages, therefore there is no “one-size” fits approach. • The success factors that result in good LED also relate directly to tourism: • Political buy-in and oversight (too much or too little) • Ongoing public private partnership and dialogue • Facilitation verses leadership role • Focus on the basics before expanding Amongst the 283 local authorities there are only about 95 LTO’s and on district level and the Metros it is even worse given the few RTO’s in the country. Most of these structures barely sustainable.

19. # 2: Tourism Policy & Local Government I • Tourism is a specific local economic development directive that is mandated by the Tourism Act, 1993. • The White Paper on the Development and Promotion of Tourism sets out a range of roles and responsibilities of local government in fulfilling the function of “local tourism”. • Section 78(3) of the Local Government Municipal Systems Act of 2000 • Allows a municipality to establish and fund an external mechanism such as a Regional Tourism Office to render Local Tourism Destination Marketing, Centralised Booking and Information Services.

20. # 2: Tourism Policy & Local Government II • Tourism is highlighted as responsibility of District Municipalities in the Municipal Structures Act, sec 84 (m) • The Tourism Black Economic Empowerment (BEE) Charter Launched in May 2005 includes a Local Government commitment.

21. # 2: Tourism Policy & Local Government III • An example of IDP Analysis (DEAT April 2010): • Does the municipality exhibit a good understanding of its municipal area in terms of environmental / tourism management and planning (tools / models)?

22. # 3: Funding (for an unfunded mandate) • Tourism features very low on the priority outputs of the local municipalities due to priority needs such as water, electricity, infrastructure, housing, sport and recreation. • Tourism, like Local economic development (LED) is regarded as an unfunded mandate placed on Local Government. • The current lack of specific budget allocation towards the development of tourism at local government level is particularly problematic and results in: • Non strategic / low impact projects • Unsustainable initiatives • “Wish lists” instead of “action plans”

23. # 4: Capacity of Local Government • The level of expertise and focus that municipalities have in tourism varies considerably. This has resulted in uneven visitor and community experiences. • Understanding of the strategic nature of Tourism needs to be understood both by the senior politicians and officials. • The arrangements that manage and direct municipalities internal coordination of tourism responsibilities: • The organisation of internal structures to best facilitate LG’s role in tourism, • Aligning tourism initiatives into the annual planning and budgeting cycles. • The use of performance measurement to gauge the success of municipalities’ tourism strategies and plans.

24. # 5: Tourism Infrastructure: Information Centres and Road Signage I • The effective and efficient supply of tourist information is fundamental to ensuring that maximum tourism value is extracted from visitors. • Equally important to this supply of information are the mechanisms through which such information is supplied. • Many visitors to a local municipality will not be aware of the range of tourist activities that they could engage in while there. Tourism information centres are particularly important in the delivery of tourist information. • The management, funding institutional arrangements around such information centres is unclear. • Access to such information centres is currently limited.

25. # 5: Tourism Infrastructure: Information Centres and Road Signage II • The importance of tourist road signage is often under-estimated. The capacity of Local Government to manage and fund tourist road signage is extremely limited. • It is also difficult to understand many of the historical sites of the township without a guide given the lack of interpretive boards. • There is an often a breakdown in communication between local, provincial and national with regards to the permissions and standards in Tourism signage. • This is frustrating all parties concerned.

26. # 6: Recognition of the role Local Government plays within Tourism • Local Government’s involvement in a wide range of areas relating to tourism, including: • The integration of tourism related responsibilities within the municipality, strategic planning (IDP), land use management, developing LED and tourism strategies, by-law management and enforcement, supporting and encouraging emerging service providers as well as in the resourcing and assisting of the local tourism market together with those in the industry. • Local Government needs to ensure that the local infrastructure needs of tourism and communities are met and appropriately funded • Often municipal tourism agencies are established to support to drive the implementation and management of tourism within a municipality.

27. # 7: Improved Intergovernmental Alignment and Support • The linkages (both ways) on Tourism related issues between National, Provincial and Local are weak. • There needs to be improved: • Working relationships on tourism-related issues between municipalities and regional stakeholders through collaborative alliances. • A defined Tourism support package (resources, funding and capacity) to support Local Government • Resources to assist and direct investment at Local Government to realise tourism opportunities. • A knowledge and exchange platform to highlight best-practice case studies from other municipalities to encourage peer-to-peer learning.

28. Overview • About SALGA • Introduction • Local Government & Tourism • 7 Points related to Local Government Tourism Support • National Tourism Sector Strategy & Action Plans • Key Local Government Comments on the NTSS Action Plans

29. Local Government and Key Focus Areas

30. Local Government and the Strategic Thrusts

31. Local Government and the Strategic Thrusts

32. Local Government and the Action Plans

33. Overview • About SALGA • Introduction • Local Government & Tourism • 7 Points related to Local Government Tourism Support • National Tourism Sector Strategy & Action Plans • Key Local Government Comments on the NTSS Action Plans

34. Key LG Comments in NTSS Action Plans I

35. Key LG Comments in NTSS Action Plans II

36. Key LG Comments in NTSS Action Plans III

37. Final Thoughts • Local Government, both Metro and Local Municipalities, are a key stakeholder in delivering a quality Tourism product and service (this has been recognised in the NTSS) • While the institutional frameworks and policies appear in place the benefits of Tourism are not making the largest possible economic and geographically spread impact. • Issues such as LG capacity, resources, intergovernmental and public private relations remain challenges. • Provincial Models require a bottom up as well as top down strategy • There are simple “quick wins” to unlock some of the red tape at and for the Local Government: • Process / standardisation of road signage / custodian of the i-sign • Visitor Information Centres / Local Tourism Authorities • Tourism metrics • Identifying, celebrating good Tourism practice (e.g. Theewaterskloof)

38. Questions “Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are.” James W. Frick Douglas Cohen dcohen@salga.org.za 012 369 8012