Tourism sector's recovery to take place in phases, says Minister
The tourism sector's recovery will take place in phases, Minister Mamoloko Kubayi-Ngubane said in a budget vote speech on July 22.
"With regards to interventions, we envisage that Phase 1 will primarily focus on the protection of the domestic supply side of the sector. In Phase 2, the emphasis will be on managing the reopening of the sector as tourism activities scale up.
"Phase 3 will target factors that can drive long-term growth in tourism supply and demand," she said.
Due to the Covid-19 crisis, the Department of Tourism has tabled a revised Annual Performance Plan, with revised annual targets,
“Our five-year targets remain as outlined in the five-year strategic plan. We are confident that the sector will recover and we shall be able to meet our five-year targets. We are going to use the money we have been allocated to work towards building a firm foundation for a rapid and inclusive recovery of the tourism sector.”
Kubayi-Ngubane said that the one intervention that will drive demand in the recovery period is the meetings, incentives, conference and exhibitions (MICE) sector.
"We will aggressively bid to host large international events in anticipation of the opening of the borders so that, upon opening, we can immediately drive up demand for our supply market and also build confidence that South Africa is safe and open for business," said the Minister.
Kubayi-Ngubane further stated that, to prepare tourism attractions for the return of tourists as part of Phase 1 of the sector's recovery, SANParks and the Expanded Public Works Programme (EPWP) will work together to maintain infrastructure in three national parks.
“The EPWP will fund the implementation of an infrastructure maintenance programme in partnership with SANParks in three national parks – the Marakele National Park, in Limpopo; the Addo Elephant National Park, in the Eastern Cape; and the Karoo National Park, in the Western Cape.”
Meanwhile, the Minister said the department still expected to meet the target of creating 2 500 work opportunities through the Working for Tourism projects in collaboration with the EPWP.
With regard to entrepreneurship, the Minister said the department would also implement enterprise development programmes, primarily targeted at women and youth.
These programmes will provide developmental support to rural tourism enterprises over the medium-term period. The programmes include hub-based tourism incubation support and offsite national support for small, medium-sized and microenterprises.
"Our four incubators in Pilanesberg, Manyeleti, Phalaborwa and Mier are currently offering business support programmes for tourism businesses affected by Covid-19, conducted through online platforms,” said Kubayi-Ngubane.
Further, she mentioned that the department was establishing a technology innovation incubator and a tour operator incubator to assist tour operators.
“The technology innovation incubator is aimed at nurturing enterprises that introduces technology innovation in the sector and the tour operators incubator is aimed at assisting emerging players to better manage their businesses."
Lastly, the Minister said the tourism department will implement the New Venture Creation Programme for youth in food services businesses.
“This initiative will spawn new value chains of restaurants that do not offer sit-down services and can be run from not so traditional geographic locations serving only online clients. Attached to this will be a growing transport services sector for the youth particularly in food delivery services,” said Kubayi-Ngubane.
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