Ms Mmatšatši Ramawela Chief Executive Officer Tourism Business Council of South Africa

1. TRAVEL, TOURISM and the National Development Plan Ms Mmatšatši Ramawela Chief Executive Officer Tourism Business Council of South Africa 18 September 2013

2. Table of Contents About TBCSA Travel & Tourism – Key Facts & Figures (Global) Travel & Tourism – South Africa Travel, Tourism and the NDP Matters of Emphasis Travel & Tourism – Our Role in Implementation Conclusion

3. About TBCSA • We are: • An umbrella organisation representing the interest of business operating in the local travel and tourism industry • A member-based organisation whose aim is to ensure that business speaks with one voice on macro-economic issues affecting the industry • A membership comprises of 19 associations, SMME representation and large business • An administrator of the Tourism Levy – the private sector’s contribution to the promotion of destination South Africa by SA Tourism (TOMSA)

4. GOVERNMENT PRESS INDUSTRY Organised tourism businesses WHERE DO WE FIT IN? PHASA VOASA FEDHASA ASATA SATSA BIG MEMBERS TEP AASA SAACI SAYTC SAACI AHI FGASA SAVRLA ORCSA NAA-SA RASA RASA

5. ASSOCIATION MEMBERS

6. About TBCSA cont. • Our Mandate is to: • Lobby the public sector for the implementation of policies which support the growth and development of the industry • Facilitate key industry programmes which encourage the travel and tourism business community to play an active role in the development of the industry • Monitor and influence macro-economic developments which impact on the sector such as the National Development Plan

7. About TBCSA cont.. • Our activities are inspired by 10 Board-Identified strategic priority areas: • Airlift & Air Access • Land Transport and Infrastructure • Safety & Security • Empowerment & Transformation • Skills & Human Resource Development • Service Excellence & Quality Assurance • Destination Marketing & Promotion • Responsible Tourism • Tourism Knowledge & Market Intelligence • Tourism Investment Promotion

8. KEY FACTS ABOUT THE INDUSTRY

9. State of Travel and Tourism

10. Key Facts & Figures • Taking into account direct, indirect and induced impacts, Travel & Tourism’s total contribution globally in 2012 was: • $ 6.6 Trillion in GDP • 260 million jobs • $ 760 billion in investment • $ 1,2 trillion in exports • Travel & Tourism’s total contribution to world GDP grew by 3.0% in 2012: • This was faster than the growth of the world economy as a whole (2.3%) • This was also faster than growth of other broad industries which include Manufacturing, Financial services & Businesses and Retail.

11. Key Facts & Figures cont. • In South Africa, Travel & Tourism’s total economic contribution in 2012 was: • R315.4 billion to GDP (9.8% of GDP) • Generated a total of 1,399,500 jobs (10.3 % of total employment ) • Visitor exports generated R93.7 billion (10.1% of exports) • Investment amounted to R52.1 billion (8.3% of total investment) • Simply put - Travel & Tourism has become one of the major players in international and local commerce • Today, a number of factors have turned tourism into a key driver for socio-economic progress – thus a dialogue on the industry’s take on the National Development Plan is critical

12. NATIONAL DEVELOPMENT PLANOUR PERSPECTIVE

13. Perspective on NDP • NDP has been broadly welcomed across all spheres of the business community • Its widely regarded as a blueprint of on addressing the scourge of poverty and inequalities in our society • These are sentiments we share as the TBCSA • Although all nine priority areas identified in the Plan, resonate with the TBCSA’s 10 Board-Identified priority areas, • For the purposes of our presentation, we’d like to focus attention on the following: • The country’s Transition to a Low-carbon Economy • Economy & Job Creation; • Transformation of Urban & Rural Areas; • Building a Capable State

14. Perspective on NDP cont.. • ECONOMY & JOB CREATION • Rising input cost is a factor which has been consistently highlighted through our quarterly TBI as a key negative factor impacting on the travel and tourism trade, thus we welcome the NDP putting a special emphasis on the stimulating domestically oriented activities by lowering the cost of doing business • Furthermore, in terms of further boosting of economic activity and job creation Travel & Tourism is one of the few industries which continue to show a growth, as such we believe it is a sector which is best placed to lead the NDPs call for a more focused attention to key sectors and clusters - notwithstanding the industry’s potential to absorb greater levels of young and unskilled labour • Lastly, the NDPs strong stance on eradicating corruption is a welcome and we urge that, where applicable, the private sector also be held accountable

15. Perspective on NDP cont… • TRANSFORMATION OF URBAN & RURAL AREAS/ INFRASTRUCTURE EXPANSION • Historically, travel and tourism has been at the forefront of stimulating socio-economic development in many rural parts of the country, therefore we welcome the NDPs emphasis on the transformation of these areas to ensure that they are ‘livable’ - afterall - we are living in a new society where people are more likely to visit places, where they would have an interest in living • Furthermore, we support the call to improve the living conditions of people in these areas as it will not only aid in addressing some of the social challenges we face, but it likely to have an even positive impact in terms of enhancing the value of our tourism offering as a destination

16. Perspective on NDP cont…. • BUILDING A CAPABLE STATE • The role of national, provincial and local government in creating an conducive environment for business to thrive is a critical one – particularly for SMME development • In addition, we suggest the role of government as a shareholder in parastatals be carefully examined to ensure that it plays a key role in enhancing the organisation’s business operations • TRANSFORMATION & UNITY • Although we agree with the principle of reviewing the concept of BEE in the context of ensuring that its benefits accrues to the broader majority at a more faster pace – we urge that BEE be embraced in its totality and not only in terms of ownership • We fully agree that employment equity – particularly in respect of gender parity should be a key priority

17. Issues to consider • Whist the TBCSA lauds the National Planning Commission for the extensive consultation process and work done to develop the NDP, we suggest that due consideration be given to the following factors: • The plan tends to be too ‘pubic sector-centric’ and there is not enough acknowledgement of the role that business can play • Government has a number of great legislative frameworks and policies in place – however alignment is a major barrier. Thus, the plan needs to emphasize the need for alighment in the implementation of programmes – across the three spheres of government (vertically) and horizontally • Alignment of the NDT to other critical policies – NGP and specific to the travel and tourism sector (NTSS) needs to be taken into consideration ahead of developing implementation plans

18. Conclusion • One of the most valuable benefits of the NDP is the fact that we now have a common vision to which we can all rally behind and work towards achieving our goals • Economically, this bodes well for boosting investor confidence and socially, the NDP becomes the new ‘unifying factor’ for the country • Considering the sensitive and complex nature of travel and tourism – what excites us most is the fact that in addressing the nine key priorities outlined in the plan, we will essentially be working towards improving South Africa’s level of competitiveness and attractiveness as a preferred tourist destination. • NDP priority aligned to TBCSA’s own priority areas

19. THANK YOUDANKIEKE A LEBOGA