Portfolio Committee on Tourism

COMMITTEE ROOM V119, PARLIAMENT, CAPE TOWN

Tourism success and challenges in respect of job creation and sustainable livelihoods

in the Local Sphere of Government

- 26 OCTOBER 2010 -Muthotho Sigidi – DDG: Department of Cooperative Governance

RSA Constitution (1996) – Vision for Local Government

(S152) The objects of local government are-

a) to provide democratic and accountable government for local communities;

b) to ensure the provision of services to communities in a sustainable manner;

c) to promote social and economic development;d) to promote a safe and healthy environment; ande) to encourage the involvement of communities and community

organisations in the matters of local government.

Tools• Integrated Development

Planning, Budgeting• Performance Management• Working with Citizens &

Partners

Outcomes• Provision of household

infrastructure & services• Creation of liveable, integrated

cities, towns and rural areas

• Local Economic Development (LED)

CharacteristicsMaximising social development and economic

growth Integrating and co-ordinating Democratising development, empowering and redistributing Leading and learning

White Paper on Local Government (1998)

National Priorities Of The Current Administration

12 OUTCOMES

1. An improved quality of basic education.2. A long and healthy life for all South Africans.3. All people in South Africa become and feel safe.4. Decent employment through inclusive growth.5. A skilled and capable workforce to support an inclusive growth path.6. An efficient, competitive and responsive economic infrastructure network.7. Vibrant, equitable, sustainable rural communities with food security for all.8. Sustainable human settlements and an improved quality of household life.9. A responsive, accountable, effective and efficient local government

system.10. Environmental assets and natural resources that are well protected and

continually enhanced.11. A better Africa and a better world as a result of our contributions to global

relations.12. An efficient and development oriented public service and an empowered, fair

and inclusive citizenship.

LED is Central to the LGTAS & the LG Ten Point Plan

MUNICIPAL INFRASTRUCTURE GRANT: PROVIDING FUNDING INCENTIVES

Instruments & Programmes Supporting LED

• There are different categories of infrastructure that MIG funds can be used for (B, P and E components)

B Component (basic residential infrastructure)– Water supply– Sanitation– Storm-water management– Municipal roads– Refuse removal– Community lighting– Solid waste disposal sites

Qualifying infrastructure components for MIG funding

• P component (public municipal services)– Public transport such as taxi ranks and bus shelters,

municipal airports and pontoons, ferries and harbours– Emergency services such as fire stations– Community services such as: childcare facilities,

beaches and amusement facilities; cemeteries; funeral parlours and crematoria; facilities for animals; fencing; local amenities (libraries and Thusong centres); local sports facilities; municipal health services; and public places.

Qualifying infrastructure components for MIG funding

• E component ( micro enterprises and social institutions servicing the poor)– 5 Percent of total MIG funds is available for infrastructure to support LED– MIG funds may be used for municipal infrastructure to provide

services to institutions such as schools, clinics, police stations, prisons, churches and recreational facilities

– However, only services or institutions which are used extensively by the poor may be included

– These services include electricity, water supply, sanitation, storm water management, municipal roads, refuse removal and street lighting.

– MIG funds may be used to bring the infrastructure up to the border of the site of the institution.

Qualifying infrastructure components for MIG funding

• E component ( micro enterprises and social institutions servicing the poor)– 5 Percent of total MIG funds is available for infrastructure to support LED– MIG funds may be used for municipal infrastructure to provide

services to institutions such as schools, clinics, police stations, prisons, churches and recreational facilities

– However, only services or institutions which are used extensively by the poor may be included

– These services include electricity, water supply, sanitation, storm water management, municipal roads, refuse removal and street lighting.

– MIG funds may be used to bring the infrastructure up to the border of the site of the institution.

Qualifying infrastructure components for MIG funding

Allocations for the E-component

  2010/11 2012/13 2013 Total

Allocation 9,924,000 11,936,000 14,513,000 36,373,000

% share of LED 5% 5% 5%  

Funds available for LED 496,200 596,800 725,650 1,818,650

         

• The 2010/11 MTEF provides R1,8 billion to be spent by municipalities on municipal infrastructure to support SMMEs development

• This constitute funding that can be used for encouraging tourism which boost local economic development

• However, municipal allocation for this sector has been insufficient• There are very few municipalities that are doing projects that

support the LED • This is due to the lack of participation of relevant sector

departments at the early stages of IDP development• Municipalities spend MIG funds on projects that are in municipal

IDP• The department is organizing working sessions with identified

municipalities that do not have projects to support LED• Relevant sector departments would be invited to be part of the

meetings

MTEF Allocations for the E-Component

PROVISIONS OF THE NATIONAL TOURISM STRATEGY

• The current lack of specific budget allocation towards the development of tourism at local government level has been raised in the National Tourism Sector Strategy.

• The Sector Strategy outlines several actions to address the issue.

It states that there must be engagement with SALGA (South African Local Government Association), national treasury and CoGTA to ensure that a comprehensive framework for the tourism activity at local level is developed.

• Capacity building for tourism at local government level is critical to improving the overall planning for and management of South Africa’s tourism industry.

• Identified as one of the problem areas that needs to be resolved as part of the National Tourism Sector Strategy is the lack of understanding and knowledge of tourism at a local government level.

National Tourism Strategy (Department of Tourism)

Local Government Support

1. It is encouraging that some Municipalities consider tourism to offer future economic development opportunities.

2. However, there appears to be some uncertainty amongst some municipalities about how to achieve this.

3. There is a preference for spending on tangible items, notably infrastructure and Tourism Information Centres.

4. To improve tourism is to improve Local Government’s understanding of the value in funding ‘strategic’ items such as awareness visits by tour operators in the municipal area and hosting of tourism exhibitions.

5. The capacity (and enthusiasm) of South Africa’s Local Government to plan for and manage tourism appears sound, however there are a few areas of concern:

− Co-ordination of tourism responsibility − Incorporation of tourism within Council’s organisational structure − Funding for ‘strategic’ tourism issues, such as strategic planning and marketing

Vhembe District Case study on challenges and successes

The Vhembe case Study reveal some challenges

•Lack of Investment Promotion Marketing Strategies in all the 5 municipalities. •Thulamela and Makhado Local Municipalities have developed Tourism Strategies but do not have Tourism Officials, so no one is available to facilitate the implementation thereof/ implementation of the strategies is almost non-existent..•All the Municipalities except for Vhembe District do not have Tourism Officials. This means that there is no personnel (qualified/skilled) to coordinate the Tourism Function.•The District Municipality has only one Tourism Officer to coordinate tourism projects and programmes of the entire municipality/ capacity at municipal level to support the tourism industry is non existentInfrastructure issues: roads to tourism attractions areas not paved (roads that can be used by all vehicles in all weather situations), this means that either the time to go there is lengthened and tourists with low cars cannot access these places

The Vhembe case Study reveal some challenges•Lack of big showrooms where exhibitions (tourism/agriculture/ fashion/ Art& Crafts can be held.•Vhembe District has many world renowned artists, but there is lack of markets for their products.•Most cultural and heritage sites as well as museums are not well protected and some have been vandalised, e.g., Kokwane Footprints and the Breathing Stone, low conservation of archaeological and heritage sites. •The District has more than 70 cultural and heritage sites.•Lack of branding and signage•There is no Regional Tourism Authority•Insufficient graded accommodation. The District has 142 accommodation establishments and only 28% of these are graded by the TGCSA.

The Vhembe case Study reveal some SuccessesCouncil has approved the Vhembe District Tourism Strategy earlier in this year (2010)The strongest selling factor for tourism is culture, arts and crafts, and the spectacular scenery and environment.The fact that VDM has 2 Gates into the Kruger National Park and that Mapungubwe World Heritage Site in found here is a plus marketing factor.Vhembe was declared a Biosphere Reserve by UNESCO in 2009.There is good cooperation and coordination between the Vhembe District Municipality Tourism Section and LTP

The Vhembe case Study reveal some SuccessesThe VDM has committed funds to 3 community based ecotourism

projects, viz., Awelani Ecotourism Community projects (At Ha-Mutele), Mapate Tourism Project (at Mapate) and the Mhinga Cultural Village (at Mhinga)VDM has embarked on taking along Tourism Product owners to Exhibitions such as The Tourism Indaba in Durban, Rand Show in Nasrec and Sanganai Tourism Fair in Harare. The District is the process of signing MoU/ twinning agreements with Dr JS Moroka Local municipality (Mpumalanga), Masvingo District Council (Zimbabwe) and Buhera Rural District Council (Zimbabwe).Vhembe has an Annual Tourism Youth Competition, which helps to unearth young people in Tourism.The District has an Annual Showcase Tour that is conducted.

Actions to Support Municipalities

The following Actions have been identified as priorities: • Assist Municipallities that have not incorporated tourism comprehensively into their IDPs-Inform Municipalities about what sustainable tourism entails and how it can be incorporated into their Development Plans, and other relevant strategic plans•Assist Municipalities of tourism significance that are currently without tourism-specific plans to develop them, or at least feature it in one other Municipal plan. •Assist Municipalities which do not have performance measures relevant to tourism to develop these. •Facilitate improved working relationships on tourism-related issues between Municipalities and local stakeholders through collaborative alliances•Conduct inter-departmental workshops with Municipalities to inform them of the National Tourism Sector Strategy.

The Potential for tourism to create jobs at Local level

Tourism is a demand-driven sector , therefore volume and value of demand inform investment in supply and job creation In terms of the White Paper on tourism development and promotion( 1996), some of the roles of local government that have a potential to create jobs are :oMaintenance and development of public tourist attractionsoProvision of public infrastructureoProvision of public amenities such as parking, ablution facilities, public transportation, etc. oMaintain the general safety, upkeep, cleanliness and beautification of the local area..

Critical success factors for tourism at local level

For the municipalities to be able to deliver on tourism targets, the following should be considered:oEffective tourism planning – capacity building on tourism planning is critical oIntegration of local initiatives ( IDP’s ) with provincial and national strategic frameworks ( Influence initiatives in the LED strategies and IDP’s)oProvision of Tourism support services e.g. human capital development for the sector at local level for instance training of product owners oAccelerating the implementation of transformation initiatives ( BEE targets )oSupport to the District Local Tourism OrganisationsoLeverage resources through strategic partnerships

IN Conclusion

•The Department of Tourism through its participation in output one in Outcome 9 package and fund different tourism strategies for various municipalities in the Country•Deploy through secondment tourism officials in municipalities to assist with the above task