Tourism’s next big challenge

We survived the Ebola panic; we survived the Visa fiasco (and hopefully South Africa will still catch up with Ethopia in making visas easily obtainable).  Now government is taking steps which threaten to damage tourism from the inside, showing a complete lack of understanding for how the industry works.

Plett - it's a feeling

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Cape Town Drought: When the political system fails…

The Joint Association Member Meeting (JAMMS) held its biggest ever meeting when over 600 people from the tourism and hospitality industries came to interact with the City of Cape Town and Provincial government over plans for Day Zero – the day most taps are turned off and even stricter water rationing starts – now set for 4 June 2018.

JAMMS represents Cape Town Tourism, FEDHASA Cape, SAACI Western Cape and SATSA Western Cape, who have been trying to get answers for their members from the relevant authorities since a possible Day Zero was first mooted.  With no success.

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Tips for surviving the Western Cape’s water crisis

On June 1, the City of Cape Town (CoCT) follows in Eskom’s infamous electricity loadshedding footsteps and plans to introduce watershedding.  Poor planning and management means that Capetonians will be inconvenienced and suffer hardships, but what does it mean for the Province’s tourism industry — its economic lifeblood?

Water dropVisiting Cape Town — and many of the towns in the Province — for a dirty weekend or holiday could take on an entirely new connotation!  The biggest challenge is that no-one knows what to expect.  Will the water supply that allows a shower only last a few hours a day with a lifeline trickle at other times?  Which areas might have to rely on water tankers alone? Continue reading

If dams go dry – what it means for tourism in Cape Town

The latest forecast for Cape Town’s rainfall in June, July and August is that it will be 40% below annual averages.  And there are predictions that this drought could last at least two years.  Cape Town could become the first world city to simply run out of water due to bad management and too much wishful thinking.  And that’s something CapeTalk radio has been emphasizing for months.

Listening to the Kieno Kammies show on CapeTalk last week and the on-air spat about the water crisis between City of Cape Town (CoCT) Mayco member responsible for water, Xanthea Limberg and Tony Ehrenreich (Cosatu), one couldn’t help but feel that politicians put party politics and point-scoring above the interests of the city.  It was a spat that made a mockery of the mayor’s call the night before for everybody to work together! Continue reading

South Africa slips in World Economic Forum Tourism Competitiveness Index

The Asian Tourism Century is Arriving as Japan, China, South Korea and India Boost Region’s Tourism-Friendliness while South Africa drops five places.

  • Asia has most improved its tourism-friendliness of all regions, the 2017 World Economic Forum’s global Travel and Tourism Competitiveness Index reveals today
  • Japan (fourth, up five places), China (15th, up two) and India (40th, up 12) are Asia’s exponents in the global index led by Spain, France and Germany; the United States (sixth, down two places) and Switzerland (10th, down four) fall back
  • The travel and tourism sector in many countries around the world remains a bright spot in economic and job growth, but technological and sustainability challenges are growing
  • Download the full report, highlights, summary, profiles and rankings here

The 10 most Travel and Tourism-enabled countries

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Best News for Cape Town in a long time

The freeways to nowhere on Cape Town’s Foreshore have been a feature of the city for over four decades.  Redevelopment of 6 hectares of the Foreshore should start by the end of next year and will see a big reduction in the traffic congestion where the N1 Freeway enters the city and meets the intersections to the CBD, V&A Waterfront and the Atlantic suburbs.

The introduction of a significant amount of affordable housing in the CBD will also see Cape Town redress its apartheid legacy.

10 statistics that will leave the rest of South Africa green with envy

Buried in Premier Helen Zille’s state of the province speech‚ delivered on Friday in the Western Cape legislature‚ were 10 statistics that will leave the rest of South Africa green with envy.

  1. Unemployment is 13.8 percentage points lower than the national average‚ and rural unemployment (14%) is the lowest since records began.
  2. 56% of mortgage bonds registered by Gauteng residents in the last year were for properties in the Western Cape.
  3. 75% of South Africa’s venture capital deals are done in the Western Cape‚ primarily involving tech start-ups.
  4. International tourist arrivals are up 16% in the past year.
  5. The backlog in issuing title deeds to housing subsidy beneficiaries is 28% — less than half the national figure of 59%.
  6. 234 Wi-Fi hotspots will be added to the existing 150 by the end of the year. They offer 250MB of free data per month‚ then charge R45 for an additional 5GB.
  7. Internet pages opened at Western Cape schools grew from 375 million in June 2015 to 3.8 billion in January 2017.
  8. The value of building plans approved increased by 27% in 2015‚ compared with a 6% decline nationally.
  9. Employment in farming and agricultural processing has increased by 40% in the last two years.
  10. 97% of fires are brought under control within an hour of being reported.

From: http://www.sowetanlive.co.za/news/2017/02/18/10-amazing-stats-thatll-make-you-wish-you-lived-in-the-fairest-cape

Transformation: “education levels provide the transformation ceiling”

Finally some common sense!  The following comes from the Institute of Race Relations (IRR) and emphasizes that education and skills training needs to be addressed before even more meaningful transformation can take place.  And government’s track record for education is abysmal.  So, until government gets it act together on education, everything else is wishful thinking.
Gwen Ngwenya, the IRR’s Chief Operating Officer

Gwen Ngwenya, the IRR’s Chief Operating Officer

The IRR’s transformation audit, in its January issue of Fast Facts, reveals that racial transformation of the South African workplace, asset ownership and state institutions has been significant and continues to improve.

The Commission for Employment Equity’s data shows that the proportion of top managers who are black has increased from 12.7% in 2000 to 27.6% in 2015, or by 117.3%. The proportion of senior managers who are black has increased to 38.8% in 2015.

Stock market ownership data reveals that levels of black African ownership increased from 14.9% in 2000 to 23% in 2013. White ownership levels have fallen by more than half to a level below that of black Africans, from 71.4% in 2000 to 22% in 2013.

Of those who have a home and have it fully paid off 84.1% are African and 7.4% are white. The extent of transformation in home ownership data is largely due to black Africans who have received free or subsidised housing from the State.

In terms of judges of the superior courts, 98.2% of judges were white in 1994. As of 2016, 64.5% are black (African, Coloured, Indian/Asian).

Despite the successes, those who advocate for an acceleration of racial transformation point out that 80.7% of all people in the country are black African. This figure is used as the benchmark to which proponents of racial ‘representivity’ suggest South Africa should aspire. Transformation indicators, e.g. levels of asset ownership and employment in management, if benchmarked against that percentage fall dramatically short.

However, the IRR argues that racial transformation should be benchmarked against the economically active and qualified population rather than the total population of black Africans. It is the economically active and highly qualified cohort who are able to be absorbed into skilled employment and higher echelons of management and leadership.

If we look at these numbers, according to the IRR, black African people account for 77.7% of the economically active population and for 70.7% of the population with a matric qualification. The numbers come down even further when it comes to the population with a post-school qualification.

Here, black Africans account for 51.4% of all people with a post-school qualification. This latter figure is seldom cited in the racial transformation debate even though it is a more realistic benchmark against which employment equity indicators should be judged.

Just 26% of black African children (who sat for the mathematics exam in 2015) obtained 40% or above. The figure for white children is 84.9%. It is not clear how continuing to enforce ever more stringent racial equity and other targets in the economy will overcome the problem of poorly performing schools.

If transformation can be said to be ‘held back’, that would be primarily because of failures in education. According to Gwen Ngwenya, the IRR’s Chief Operating Officer, “education levels provide the transformation ceiling.”

Stricter demographic targets in the absence of sufficient advances in education will become a policy that will strangle South Africa’s economic growth rate. Transformation policy for employers must continue to be informed by the available skilled population and not the total demographic distribution of racial groups.

This report on transformation forms the first of a three-part release ahead of the 2017 State of the Nation Address. The three reports from the IRR will cover transformation, race relations and a report on the economic silver lining. 

Update on Immigration Regulations – don’t hold your breath

Is progress being made with the visa regulations issue? If you relied solely on the Tourism Business Council of SA‘s (TBCSA) update to it’s members, you would think so. Until you get to the sentence, “A Board resolution has been taken that media will be engaged on this matter on a need-to-know basis – we wish to avoid the pitfalls of having this matter playing itself out in the public space and want to ensure that our engagements remain robust but handled with due care.”  Which means they have discarded transparency and are playing voetsie-voetsie with government.

They add, “Our Board Chairman, through his links within the ANC National Executive Committee is also working to ensure that the industry’s concerns regarding the regulations are duly considered.”  Can he do more than tourism minister Derek Hanekom (also a member of the ANC NEC) given that ANC and its NEC are in total disarray?

[pdfviewer width=”98%” height=”600px” beta=”true/false”]http://capeinfo.com/blogs/wp-content/uploads/sites/3/2016/10/12Oct16_Special_Member_Update_on_Immigration_Regulations.pdf[/pdfviewer]

The DA shadow minister of tourism, James Vos, pulls no punches in the DA’s submission to the Department of Home Affairs.

[pdfviewer width=”98%” height=”600px” beta=”true/false”]http://capeinfo.com/blogs/wp-content/uploads/sites/3/2016/10/DA_Submission_on_Draft_Immigration_Regulations.pdf[/pdfviewer]

In a separate statement, Vos says:

The recently tabled Draft First Amendment of the Immigration Regulations made under the Immigration Act by the Department of Home Affairs (DHA), does nothing to address the loss of jobs in the tourism industry, including concerns raised by the tourism industry, government departments and opposition parties.

The Draft First Amendment is nothing more than a half-hearted attempt to address the serious problems with the current regulations and will result in the ultimate contraction of the tourism industry.

The reality is that no material changes will be affected by the error-ridden Draft. Rather, the wording of a few provisions have lazily been shifted around, in what can only be seen as an attempt to create the illusion of the DHA’s willingness to engage with criticism of its policies.

The contentious requirement that parents traveling to South Africa with their children must produce an unabridged birth certificate (UBC) has not been removed. Rather than actually change the regulations, it seems that the Department only reorganised the clauses, whilst the requirements essentially stay the same.

Issues with Business Visas, as well as Corporate and Work Visas have not been addressed. The requirements places strict barriers to entry for foreigners who want to do business in South Africa. This makes it more laborious to invest in South Africa, or to attract foreign talent to our country.

Clearly the Department has put no effort into the drafting of their amendments, which provided the Department with the opportunity to improve the widely-criticised Immigration Regulations. The Department should be chastised for this entirely inadequate Draft and its poor attempt at governance.

In order to remedy these issues the DA has made a comprehensive submission to the DHA on the proposed amendments. I will also write the Deputy President, Cyril Ramaphosa, as Chairperson of the Interministerial Committee on visa regulations, to withdraw the current and proposed regulations and be replaced by electronic visas, which cut turnaround time, are safer and ultimately streamline tourist facilitations to our country.

Tourism can be used as an effective tool to create jobs, provide opportunities for small businesses, promote livelihoods for communities and bring South Africans together to share experiences. For every 12 tourists that visit South Africa, one job is created. The Immigration Regulations therefore put tourism job opportunities at risk.

So one has to ask the question, is all this talk and all these submissions worth an iota? Government is paralysed through lack of leadership (the education crisis proves this) and any intelligent agenda.

So  maybe, SATSA (SA Travel Services Association) has the only solution.

David Frost, Satsa CEO, told  South African Tourism Update that legal action against the Department of Home Affairs was a possibility and the association had already sought legal counsel.

“Legal action is an option and it is certainly the last resort and not something that anybody wants to do but it is an option when you’ve exhausted every other avenue,” said Frost. “And it looks very much like we’ve exhausted every other avenue.”

Frost said that what was needed was for the Minister of Home Affairs, Malusi Gigaba to provide the basis of the policy implementation. “Ultimately what you want is a court of law to be able to put the Minister of Home Affairs on the stand and ask him to provide the rational basis for the UBC requirement: how many children have been trafficked? How big is the problem?”

Frost added that they had sought an opinion from senior legal counsel that he would table at the Tourism Business Council of South Africa as an option to consider. “If anyone can provide an alternative remedy to sort the problem out, I’m open to listening to it,” said Frost. “It’s been two years and we’ve made no progress, nor has the Minister of Tourism, nor has the Deputy President, nor the Inter-Ministerial Committee.”