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ADDRESS BY ANC PRESIDENT JACOB ZUMA TO THE TOURISM BUSINESS COUNCILMichelangelo Hotel, Sandton, Johannesburg, 3 March 2009
The Chairperson of the Tourism Business Council CEO, We are happy to take time off the election trail to meet with the tourism industry! We felt it important to have this meeting, as tourism is one of the most critical sectors of our economy. The ANC and its government views the Tourism Business Council of South Africa as one of the key partners within the tourism industry. We fully respect and acknowledge that the Tourism Business Council of South Africa (TBCSA) is the voice of the tourism business sector. Without strategic partners such as the TBCSA, it was going to be almost impossible to create an enabling environment for tourism development in this country. Tourism is the largest and most rapidly expanding economic activity throughout the world. As reported by the World Tourism Organization, travel and tourism involved 625 million people internationally and generated 445 million US dollars in the last decade.
The global tourism industry is expected to grow significantly in future as personal incomes and leisure time increase, and as transportation networks improve. Since the dawn of democracy in South Africa, the tourism industry has been growing at unprecedented rates. As we speak, we are on track to reach, and even exceed, 10 million tourist arrivals per year by 2010. More than 9 million people visited South Africa last year, which represents an eight percent increase since 2006 and almost twice the growth enjoyed by the global industry. This performance is realized despite economic challenges of high interest rates, exorbitant food and fuel prices experienced in 2008. It is globally accepted and acknowledged that tourism has an unrivalled potential to create sustainable jobs and grow the economy faster than any other sector. It is also on record that tourists and holidaymakers account for 38 Million leisure and religious trips around South Africa visiting friends and relatives each year. In recent years, our government has estimated that tourism accounts for eight percent of GDP. It is also estimated that the tourism industry is well positioned to grow its GDP contribution to 12 percent with a potential to create more than 500 000 jobs by 2014. The growth of the tourism industry in South Africa should be celebrated by all of us. This is testament to the fact that we are creating more jobs and more entrepreneurial opportunities. All South Africans should be more than 100 percent committed to growing the tourism industry through the work we do, through working with the industry and our partners, and through working harder, with more passion and more determination. South Africa is a developmental state, which is faced with challenges of growing and stabilising the economy, ensuring food security, creating sustainable jobs and eradicating poverty. The unprecedented socio-economic benefits from tourism demonstrate that this is a strategic industry for investment and business opportunities. We will therefore be focusing on developing our tourism industry to contribute to our vision of creating decent work for South Africans. We have committed ourselves to make the creation of decent work opportunities and sustainable livelihoods, the primary focus of our economic policies. Decent work embraces both the need for more jobs and for better quality jobs. The underlying factor is that all economic policies must address the challenges of poverty, unemployment and inequality. We will work with the tourism industry and all other sectors of our economy, to achieve these goals. Ladies and gentlemen, we wish to emphasise to employers in industries that tend to rely on contract workers that we intend to introduce laws to regulate contract work, subcontracting, out-sourcing and labour broking. The objective is to prevent the exploitation of workers and ensure decent work. Provisions will be introduced to facilitate unionisation of workers and the conclusion of sectoral collective agreements to cover vulnerable workers in these different legal relationships, and ensure the right to permanent employment for affected workers.
Procurement policies and public incentives will also include requirements to promote decent work. Working together we can find solutions and make this work. The ANC government will engage with stakeholders thoroughly and responsibly at the right time, to achieve these goals. We also see opportunities for the effective transformation of the tourism industry. ANC government policies such as black economic empowerment and affirmative action have contributed to the growth of South Africa's black middle class by 2.6 million in 2007. Small business support has been streamlined and expanded. We will continue these successful policies. The ANC government will vigorously implement broad-based economic empowerment and affirmative action policies and adjust them to ensure that they benefit more broad sections of our people, especially the workers, youth, women and people with disabilities. Policies will, in addition, actively promote skills development and equity at the workplace. Within the tourism sector, the TBCSA has an obligation to ensure that the Tourism Black Economic Empowerment Charter successfully transforms the industry. Working together with the Tourism Empowerment Council, you will be able to ensure significant progress in realising the objectives of the charter. We look forward to a positive outcome. Most importantly, to transform this industry in a meaningful way, we need to invest in equipping our people with skills and knowledge to manage tourism business enterprises. We must train and develop more black managers and owners of tourism establishments, to make the industry more representative of the population. I am acutely aware that there are several challenges in terms of the sector education and training authorities with respect to their capacity to deliver on their mandate of quality assurance and distribution of financial resources. In this regard, we have an obligation to review the entire education and training sector to ensure that it is responsive to service delivery and transformation needs of a growing tourism industry in this country. Ladies and gentlemen, we have the biggest marketing opportunity for the country, the 2010 FIFA World Cup. The tournament provides an opportunity for us to market our country. We will be able to debunk myths and stereotypes not only about South Africa but the continent as a whole. We must work to achieve this goal to prove that Africa is capable of the greatest achievements and success. The tournament also provides opportunities to grow our tourism industry while also creating jobs and fighting poverty. We want soccer lovers to fall in love with our country and its people and return as tourists after the World Cup. We therefore urge all captains of the tourism industry and ordinary South Africans to be fully involved in preparations for this world acclaimed event. In anticipation of the 2010 legacy, we are all excited and must be determined to deliver best quality service to our visitors. Our accommodation facilities must be improved and appropriately graded to ensure our visitors enjoy their stay. We must note that global trade has an 18-month to two-year buying cycle. Therefore, 2010 buying decisions are already being made. We must do everything to assure FIFA and the world that the South African tourism industry is ready to welcome visitors to its shores. This readiness should include being emotionally prepared for the tournament, and a commitment to give the world the best FIFA World Cup that has ever been delivered. The tourism industry must roll out an awareness campaign to ensure that all our people who will interact with tourists are friendly, tolerant and considerate. Coupled with this, we can also use the tournament to accelerate our campaigns to combat corruption and actively fight crime. We also have a responsibility and obligation to condemn and prevent all forms inhumane acts such as xenophobia. Xenophobic tendencies are not only un-African and inhumane, but are also counterproductive to tourism growth and people to people cooperation and linkages. We receive a significant number of tourists from African countries as we are regarded as the economic hub of the continent. We must therefore not allow any behaviour that could potentially turn South Africa into a hostile tourism destination for fellow Africans. All South Africans and visitors should also strive to keep the environment clean and healthy. Greening the 2010 FIFA World Cup must be taken as a serious responsibility as it will not only create more jobs, but it will also leave a good legacy of South Africa as a country that is committed to sustainable development. As the custodians of the World Summit on Sustainable Development, we must continue to play a leading role in this arena. The ANC government will work with all stakeholders to ensure that this world event contributes to create decent work opportunities, particularly for the youth, women and street traders. We must ensure that it promotes the procurement of local goods, services and products; and that housing units and sports facilities developed for the event are made available to local communities after the event is over. We have to ensure that the 2010 FIFA World Cup leaves a proud legacy that our children and our communities will enjoy for many years to come, and contributes to the long-term development of the country. With the looming economic recession in our country, we urge the tourism industry to do everything possible not to shed jobs. All avenues must be explored to save jobs in our country. The advantage for us is to know that the tourism industry shares our enthusiasm and optimism about the potential and growth of this sector. From our side, we want to assure you that we are serious about tourism, and that we do not regard it as a Cinderella industry. It is a job and money-spinner and a key player in our economy. Tourism establishments are the face of the country. These establishments must therefore be user friendly and leave a warm lasting impression of the warm friendly people that South Africans are. We must always remember that friendliness is one of the most important commodities. By working together to grow South Africa's tourism industry, we can do more and much better to improve the quality of life of our people. I thank you.
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