1 PRESENTATION TO - PowerPoint Presentation

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PRESENTATION TO

TOURISM PORTFOLIO COMMITTEE

Building an economy that creates opportunities for all and making tourism to work for all of us

13 November 2015Slide2

INTRODUCTION

The KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) is tasked with a mandate of ensuring the planning, development and marketing of tourism within the province of KwaZulu Natal.

EDTEA has anchored the implementation of this mandate on the KwaZulu Tourism Master Plan (KZN-TMP).The KZN-TMP is a comprehensive, strategic guide that provides future direction for the development, growth, management and monitoring of tourism in the province.

The vision of the KZN-TMP is “By 2030 KwaZulu Natal will be globally renowned as Africa's top beach destination with unique blend of wildlife, scenic and heritage experiences for all visitors”.

The plan sets out the key strategic objectives and how to achieve these objectives for the Province and ensuring alignment to the National Tourism Sector Strategy (NTSS) which is a blue print for the tourism sector within South Africa. The KZN-TMP is also aligned to the National and Provincial policies that are guiding development in South Africa and this include National Development Plan and Provincial Growth and Development Plan. Slide3

STRATEGIC OBJECTIVES

Increase the tourism GDP levels

Grow the levels of all foreign visitor arrivals in the ProvinceIncrease tourism employment in the provinceGrow the levels of domestic visitor arrivals in the Province

Improve the geographic spread of tourism business and activities within the Province Ensure that Durban becomes/remains THE place to holiday for South Africans and other key marketsImprove overall visitor service and satisfaction levels through the Province

Achieve significant transformation in the sector Grow events, meetings, incentives and exhibition sector (MICE) as a key an important market area for the ProvinceImprove other niche tourism experiences for which the Province has potential and develop these marketsSlide4

The KZNTMP comprises of four clusters, namely:

CLUSTER ONE:

Policy, Strategy, Governance, Research & Knowledge Management & Monitoring and EvaluationCLUSTER TWO:

Planning and Product Development CLUSTER THREE: People in Tourism (HRD and Service Excellence)

CLUSTER FOUR: Marketing STRATEGIC CLUSTERS Slide5

The

Tourism White Paper (1996)

sets out a framework for tourism in line with the provisions of the Constitution of South Africa. The White Paper recognizes the need for a range of role players to “ignite the engine of tourism growth”.The

Department in KZN is implementing a programme entitled “Local Government Support” as part of Inter-sectoral Engagements – IGRThe overall objective of this programme is to “Integrate efforts amongst various stakeholders, through the provision of common platform for engaging on tourism issues that assists in achieving a coordinated approach into the promotion and development of tourism within the

Province.The establishment of these structures

assists in creating institutions through which all representative role players concerned with tourism development in KwaZulu-Natal can communicate with each other ,and as such identify challenges of common interest, make recommendations to address such problems and participate in the formulation of policy, strategies and plans of action. As such, we have established the Provincial Tourism Committee which is made up of mayors and the MEC which sits on a quarterly basis The structures ensure that all tourism stakeholders within KZN, work closely to align tourism institutions both in the public and private sector and to provide a focal point for co-ordination.TOURISM INSTITUTIONAL ARRANGEMENTS Slide6

COORDINATING

STRUCTURES

NAME

COMPOSITION OBJECTIVES STATUS

Provincial Tourism Committee Chairperson: MECChairperson of Portfolio Committee of Economic Development and Tourism, District Mayors, Municipal Managers, CEO’s of Public Entities, MEC for COGTA.Chairpersons of Organised Private Sector organisations.To coordinate the formulation of the Provincial tourism policy with municipalitiesTo assist municipalities to develop municipal tourism

policies/strategies within the framework of National and Provincial tourism policies and legislation.

The structure is fully functional and sits on a quarterly basis

Provincial Tourism Forum

Chairperson: CEO of Tourism KwaZulu Natal

Municipal Tourism Managers, Community Tourism Organization Chairpersons, Community Tourism Association Chairperson

and other agencies with a tourism mandate.

To serve as a technical

committee to the Provincial

Tourism Committee on provincial

wide tourism issues.

The structure is fully functional

and sits on a quarterly basis Slide7

COORDINATING

STRUCTURES

NAME COMPOSITION OBJECTIVES

STATUS District TourismForum (DTF){also applicable

to Metro}Chairperson: MayorChairperson of the District Municipality Tourism Portfolio Committee, Tourism Managers and officers from District and Local Municipalities, IDP Managers, Private Sector representatives and other organisations with a tourism mandate both public and private.To coordinate all tourism related activities within a particular District and Local Municipality e.g. cross

boundary projects.To integrate Provincial tourism

objectives into District and Local plans and priorities and make

recommendations to the council.

A total of 9 DTF’s are fully functional

and sits on a quarterly basis

Local Tourism

Forum (LTF)

Chairperson: Mayor

Chairperson of the Local Municipality Tourism Portfolio Committee, Tourism Manager and Local Economic Development Manager, IDP Managers, Private Sector representatives and

other organizations with a tourism mandate

both public and private.

To strengthen local tourism potential and facilitate integration of tourism

plans to the broader development objectives of the municipalities

To identify gaps for possible tourism development and facilitate interventions by National and Provincial bodies.

A total of 15 LTF’s are fully functional

and sits on a quarterly basisSlide8

COORDINATING

STRUCTURES

NAME COMPOSITION OBJECTIVES

STATUS Community Tourism Association(CTA)

An overarching structure of all Community Tourism Organizations (CTO’s) constituted by Chairpersons of all CTO’s in the province.To provide institutional framework for uniform establishment and functioning of the CTOs in the province.Fully functional and sits on a quarterly basisCommunity Tourism Organization(CTO)Constituted by local tourism product owners and Local Municipal representative (ex-officio)

To ensure coordination of tourism marketing and publicity

activities at a local level.To facilitate equal access to tourism opportunities by local

communities.

To ensure legality of tourism

businesses operators.

To establish linkages between

communities, private sector and

government

A total of 45 CTO structures

have been established and are f

ully functional

sits on a quarterly basis. Slide9

COORDINATING STRUCTURES

NAME

COMPOSITION

OBJECTIVES STATUS KwaZulu Natal Tourist Guides

Association Constituted by regional tourist guides association chairpersons, Department of Transport, Ezemvelo KZN Wildlife, Tourism KwaZulu Natal and

Field Guides Association of Southern Africa. To ensure alignment and coordination of tourist guides activities within the province. Fully functional and sits on a quarterly basisKZN Master Plan Implementation and Monitoring CommitteeThe committee is comprised of senior officials from various government departments and other organisations with a tourism mandate from both public and private sectorTo guide, monitor and coordinate

the implementation of the KZN-TMP in collaboration with all the stakeholders in the provinceThe establishment of the structure is currently underway and will be up and running by the end of the current financial year. In the meantime, the PTF is overseeing the implementation of the Master Plan.Slide10

COORDINATING

STRUCTURES

Slide11

COMMUNITY BASED PROJECTS

The National Tourism Sector Strategy together with the National Rural Tourism Strategy support tourism growth in rural areas with involvement of rural communities.

Furthermore, the Provincial Tourism Master Plan highlights the need for the development of niche tourism experiences.

These niche experiences are largely found in rural areas and offer opportunities for the involvement of rural communities to participate in tourism. The Department implements community based projects to broaden participation by historically marginalized communities in tourism; to facilitate transformation and to achieve geographical spread of tourism products and experiences across the length and breadth of the Province

The Department develops community based tourism projects through sourcing funding and providing support to ensure product development and tourism growth in the province. Community based projects with an element of biodiversity and conservation are implemented in partnership with Ezemvelo

KZN Wildlife as the custodian of nature conservation in the Province.Furthermore, Ezemvelo KZN Wildlife implements various programmes and projects in areas around the game reserves that benefit local communities. Slide12

COMMUNITY BASED PROJECTS

Project Name

Location Benefits Bhambatha Lodge

The project evolved out of the country’s land restitution programme where approximately 10, 000ha of land was returned to the Ngome Community Land Trust in the late 1990’s.

The Department provides funding for the refurbishment of the lodge and resuscitation of the game reserve in partnership with Ezemvelo KZN Wildlife. (EDTEA Investment: R2 million)UMzinyathi District According to the business plan, it is estimated that the project will employ 79 people and create business opportunities for local entrepreneurs. Ntsikeni May Lodge The project moved from the Eastern Cape Province to KZN during the re-demarcation of municipal boundaries. The Department in collaboration with Harry Gwala District Municipality funded the refurbishment of both lodges and currently funding the operations of the lodge.

(EDTEA Investment: R500 000)

Harry Gwala District

Portion of profits from business operation will revert to the community through the Trust and will then be made available once the funders withdraw in three years time.Slide13

COMMUNITY BASED PROJECTS

Project Name

Location Benefits

Ingodini Border CavesThe Department is implementing findings of the Feasibility Study and Business Plan which include developing the cave and its surroundings to become Heritage Visitor Attraction and undertake further plans to establish a Community Conservation Area.

(EDTEA Investment: R2 million)UMkhanyakude District According to the Business Plan the project will employ 14 people and support services will be handled by local cooperativesUpgrade of Ndumo Lodge The KwaZulu-Natal Provincial government pioneered Ndumo

Yenkululeko Regeneration Programme, aimed at providing socio-economic facilities, services and infrastructure development in an effort to improve the living standards in the area.

Tourism and conservation were identified as viable economic sectors with potential to ignite the local economic development of the area. The Department conducted the development of an assessment report and business plan which recommended the upgrade and refurbishment of

Ndumo Lodge.

(EDTEA

Investment:

R4,2 million)

UMkhanyakude District

Upon

completion more jobs will be created for the communitySlide14

COMMUNITY BASED PROJECTS

Project Name

Location Benefits KwaMbonambi

Wild Palace Lodge The project involves conducting a feasibility study and business plan for developing a

3 star country lodge and a conference centre in KwaMbonambi . (EDTEA Investment: R490 000)UThungulu District The business plan will identify job opportunities Slide15

CATALYTIC PROJECTS

The KwaZulu Natal Tourism Master Plan identifies the need for the development of key iconic projects aimed at increasing the geographical spread of tourism products and ensuring that the Province continues to gain a competitive edge and remains the preferred destination.

These recommended iconic projects are:

Drakensberg Cable Car, Breakwater/Monument/Statue, Bluff Bridge, King Shaka Statue, Isandlwana Development Precinct,Beach Resort and

International Convention Centre around the North Coast.Slide16

CATALYTIC PROJECTS -DRAKERNSBERG CABLE CAR

EDTEA has begun with the implementation of the Drakensberg Cable Car and King

Shaka Statue projects The Drakensberg Cable Car is a catalytic project aimed at unlocking the tourism potential of

OKhahlamba – Drakensberg region and further enhance the competitiveness of the Province.The Department conducted a feasibility study and business plan for the project. The outcome of this exercise was that, generally, the Cable Car Project is both feasible and worth pursuing.The Department is in the process of commissioning an EIA for the development of a Cable Car that will ensure that new visitors are attracted to the Berg and also open up new economic ventures that could boost the economic atmosphere of the area. The envisaged construction of a 3300 metres long cable way with an intermediate station, climbing 1300 metres to the summit which will be an elevation of 3300 metres above sea level offering expansive views of

KwaZulu Natal, Lesotho and Free State thus providing an enhanced tranquil visitor experience which has only been enjoyed by a few. The Cable Car will offer an alternative to conventional travelling and offer a unique experience.Slide17

CATALYTIC PROJECTS – FUNDING

The KZNTMP recommends the establishment of a Tourism Development Fund for catalytic and community based projects

The Department funds the planning phases of the identified catalytic projects i.e. development of feasibility study, business plan, EIA and spatial plan Funding for actual developments will be sourced from Development Funding Institutions and also to be considered are the Private Public Partnerships (PPP)

The Department is planning to host the Drakensberg Cable Car Conference and Exhibition as an investment promotion initiative and to attract

global venture investors, real estate managers, manufactures, related United Nations Officials, operators and any other relevant organizations that will share best practices that the Province could consider in the development and operations of the Drakensburg Cable Car. This is envisaged to take place by February 2016.

Funding for community based projects is also sourced from the National Department of Tourism through the Social Responsibility Implementation programme (SRI) through the provincial department;At provincial level, funding is also sourced through COGTA’s Corridor funding of which municipality or their Development Agency can access directly. Slide18

BEACH TOURISM

The KwaZulu Natal Tourism Master Plan recognizes beach tourism as one of the core experiences offered by the

Province. KZN boasts …km coastline.

Beach tourism accounts for one of the most popular activities undertaken by visitors in the Province, therefore the Province has developed its maiden KwaZulu Natal Beach Tourism Policy to streamline beach tourism efforts in order to ensure that KZN beaches maximize their tourism potential by offering beach experiences that are comparative to the world standards.The policy is anchored on FOUR Strategic Thrusts that govern the conceptualization, development and implementation of Beach Tourism Programmes in

KwaZulu-Natal and these are:Thrust one: Ensuring that sustainable tourism is making an increasing contribution to the local economy of coastal communities.

Thrust Two: Improving the quality of visitor experienceThrust Three: An integrated approach to the development and management of coastal tourismThrust Four: Safeguarding and protecting the environment and cultural heritage as a key resource for the development of coastal tourismSlide19

BEACH TOURISM

The policy identifies and recommends various Beach Tourism

programmes along the lines of Responsible Tourism that can be developed and implemented at a local level to maximize

benefits of Beach Tourism to KwaZulu-Natal in general and coastal communities in particular.The Department implements the beach development programme which seeks to upgrade recreational facilities in order for the beach to meet and maintain the Blue Flag standards thus ensuring that it remains attractive and safe for visitors.

The Department has partnered with WESSA, the custodians of the Blue Flag in South Africa, to identify beaches and municipalities that require assistance with beach development. The following municipalities were funded and supported to achieve full Blue Flag Status

: Southport beach in Hibiscus Coast Local Municipality, Alkaanstrand in UMhlathuze Local Municipality, Dokodweni beach in Mandeni Municipality, Blythdale beach in KwaDukuza Local Municipality Hibiscus Coast have 7 full status & 1 pilot status; KwaDukuza - 1 full status & 1 pilot status; Mandeni – 1 pilot status; EThekwini – 2 full status & 5 pilot status Slide20

CRUISE TOURISM

New cruise terminal

Transnet (TNPA) is to build a new cruise terminal in the port of DurbanThe new terminal will be able to handle between 5000 and 6000 passengers;Tender to build the facility closed on the 2nd of October 2015 and it is being evaluated.

KZN participates in the activities of the Cruise Indian Ocean Association, an association whose objectives are to develop, promote and market cruise tourism in the South-East African region.Members of CIOA include TNPA, Tanzania, Kenya, Mozambique and Sudan. Assisted SA Cruise liner to develop a feasibility study, to own or co-own a cruise ship, which could be a first to South Africans;The study was presented to major cruise liners during the Miami Cruise Shipping event in 2014 for possible joint venture partnership.Slide21

DURBAN / KWAZULU NATAL CONVENTION BUREA

Durban KwaZulu-Natal Convention Bureau established in 2010

“Convention Bureaus promote the business tourism potential of a destination, their main purpose is to increase the number of events, conferences and meetings held in the destination; whether a city, a region or a country” (ICCA, 2009)Special division of Tourism KwaZulu-Natal

Operation costs – 30% eThekwini Municipality and 70% EDTEABusiness events of meetings, incentives, conferences and events are:Powerful Stimuli for Socio-Economic Development;Tourism flow and spend;Post tertiary education and training;Knowledge development and networking

Develop and establish industries;Enhance destination image … generate new tourism flowSlide22

DURBAN / KWAZULU NATAL CONVENTION BUREA

Delivery in terms of 2014/2015APPSlide23

DURBAN / KWAZULU NATAL CONVENTION BUREA

Other ‘Dividends’

Bid secured – 18 since January 2014 worth in excess of R300mn;Africa’s leading meeting and conference destination by World Travel Awards 2014,2015;ICCA ranking improvement 97 in 2013

vs 157 in 2012 vs 172 2011;Support committees15;Delegate boosts 4;Sales calls and workshops 8+

Qualified leads 70+;Physical evidence of professionalism – ICCA, SAACI, EXSA and SITESlide24

MARKETING OBJECTIVES

To build a strong, integrated KwaZulu-Natal (KZN) destination brand

To defend and grow KZN’s domestic market shareTo grow international arrivalsTo develop & promote KZN as a business tourism destination

To strengthen trade relations with trade partnersTo create and optimally utilise communication opportunities to build and maintain a positive image of the destination brand amongst consumers and stakeholdersTo increase brand awarenessSlide25

Trade EngagementSlide26

Trade EngagementSlide27

DURBAN AEROTROPOLIS

Airlift and route development for King Shaka International Airport is part of the broader strategy to develop the Durban Aerotropolis or Dube airport city which will be driven by a globally connected King Shaka International

Airport

. The KwaZulu-Natal Integrated Aerotropolis Strategy (IAS) recommends the development of Durban Aerotropolis centred on King Shaka International Airport that spans an area covering one hour travel from the airport.

The IAS recognises the role of regional airports in promoting Durban Aerotropolis with the following interventions identified:

Identify passenger and cargo latent demand for air links to KZN regional airports, prioritising infrastructure upgrades at airports that will support KZN IAS strategic goals.Develop regional airport infrastructure to support Aerotropolis initiativeIdentify developments that should take place in regional airports to support the AerotropolisSlide28

ROUTE DEVELOPMENT

A route development strategy and a support programme for international connectivity is in place to support direct air connectivity from Durban to any hub of a major trading partner.

A multidisciplinary committee comprising tourism entities, ACSA (King

Shaka), Dube Trade port and the provincial government was set up to drive route development for King Shaka International Airport. Table below shows targeted airlines:

Airlines for Single Routes

Airlines for Multiple RoutesAirlines exerting multiplemarket influenceBritish Airways Virgin Atlantic Lufthansa Turkish Airlines KLM / Air France Brussels Airlines Kenya Airways SASEthiopian AirwaysNorwegian

Arik AirCondor

SwissSAA SA Express

SA

Airlink

Fastjet

Kulula

Comair

Mango

Emirates

SAASlide29

ROUTE DEVELOPMENT STRATEGY AND TARGET AIRLINES

The strategy identifies seven distinct market groups where air service growth and development could be delivered based on current traffic data. These are listed in the table below.

Group

Target

FocusTarget Airline

1LondonSecure a direct non-stop scheduled passenger service to London, preferably Heathrow Airport to operate with at least 3 frequencies per week on a year round basis and a suitable aircraft to accommodate cargo upliftSAAVirgin AtlanticBritish Airways Condor, Norwegian2The Gulf region

Target growth through additional capacity or increased frequency with the incumbent Gulf carrier Emirates, keeping relationships open with Etihad and Qatar Airways should Emirates not want to expand. Emirates

Etihad Airways Qatar AirwaysSlide30

ROUTE DEVELOPMENT STRATEGY AND TARGET AIRLINES…

Group

Target

Focus

Target Airline

3International Hub AccessSecure a direct non-stop scheduled service to mainland Europe and Asia to capture the significant European market outside of the UK and Indian subcontinent and Asian traffic. Turkish AirlinesLufthansaKLMAir France SAS Swiss

Brussels Airlines Alitalia Air India

Jet Airways4

Regional Africa

Develop a comprehensive network from Durban across Africa, capturing under-served, latent demand, improving business and cargo links, and creating the emergence of Durban as a connecting centre.

South African Express

SA

Airlink

Kenya Airways

Air Namibia

Air Botswana

Air Mauritius

FastJet

–Base potential,

Mango – Base potential,

Kalula.com – Base potential,

Arik Air,

EthiopianSlide31

ROUTE DEVELOPMENT STRATEGY AND TARGET AIRLINES…

Group

Target

Focus

Target Airline

5DomesticTo operate a comprehensive domestic network of services that connects Durban to all the major cities in South Africa with a regular, high frequency network of affordable services that serve the business and leisure markets.South African ExpressSA Airlink, FastJet – Base potential, Mango – Base potential, Kalula.com – Base potential,

Fast Jet6

CargoAttract a dedicated based regional freighter operation and specific long haul operations to meet the immediate needs of the KZN region.

Solenta

Aviation (DHL)

Safair

, DHL

UPS,

Cargolux

,

Lufthansa Cargo,

Air China Cargo,

Emirates Cargo

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Charter Flights

To complement the target scheduled network, secure dedicated long haul and short haul charter services to deliver increased visitor numbers and support the objective to be the premier leisure destination of South Africa.

Thomson (UK)

Thomas Cook (UK)

Tui

Travel (Europe)

Virgin Holidays (UK)

LOT Polish Airlines

Mega Maldives (China via Maldives)

CAISSA (China)

EdelweissSlide32

ROUTE SUPPORT

The

route development strategy recommends the creation of a Route development Fund that is split into three distinct categories as follows:-

New routesExisting Route/airlines expansionOther

routes that may be viewed as non-strategic but import from growing traffic at KSIAFor the development of the New Routes, the strategy recommends that a Fund be established that can cover two specific elements for this sector:-

A substantive fees and charges mitigation and;An element of revenue guarantee and/or substantive marketing and/or bonus rewards for load factors and /or cargo carried.Slide33

ROUTE SUPPORT

Existing Airlines at KSIA for International and Regional RoutesSlide34

REGULATION OF TOURIST GUIDES

The Tourism Act no. 3 of 2014, stipulates that any person who wishes to be registered as a Tourist Guides must register with the National Department of Tourism (National Registrar) through the Provincial Registrar in the prescribed manner

The Department ensures the implementation of the legislation by maintaining an accurate database of registered tourist guides. According to the provincial database there are 380 tourist guides who are fully compliant with the legislation.

The Department conducts workshops and spot checks as programmes aimed at enhancing tourist guides knowledge, provision of quality experience and curbing illegal tourist guiding. These are conducted in partnership with Municipalities, Road Traffic Inspectorate, South African Police Service and Tourist Guides Associations.

The Department provides support to relevant structures responsible for tourist guides within the tourism regions around the Province with the view of ensuring coordination and alignment of activities. The Department plans to engage heads of museum, heritage sites and other attractions of national and provincial interest with the view to utilise guides that are compliant with the legislationSlide35

LESSONS LEARNT

The regulation of tourist guides within the Province remains a challenge without a clear legislated procedure to prosecute non compliant and illegal guides

however the National Department of Tourism in collaboration with provincial departments has commenced with the process of drafting relevant regulations that will assist is the provision of guidance. Disparities and fragmented tourist guiding curriculum offered by various training institutions impacts negatively on the quality of information and experiences provided by tourist guides.

The Department has identified the need to foster and maintain relations with various sector departments, municipalities and associations for the effective implementation of the legislations.There is also a need to expose tourist guides from the previously disadvantaged communities to the latest developments in product packaging field. Slide36

Due to relatively low barriers of entry in certain categories of the sector, tourism has a huge potential of contributing to the transformation project. Yet, the pace of transformation is

agonisingly-slow.Government needs to play an even more pro-active role in pursuing the transformation agenda within the tourism sector in order to help fight poverty, unemployment and inequalityThe growth of a destination depends, for the most part, on how much is invested in promoting the destination. KZN has gone out to bid for tourism events; invested heavily in marketing; been creating in

utilising industry support measures to entice new investors and, positioned itself as part of, and gateway to, the SADC region.

LESSONS LEARNT Slide37

Thank You