In her (oft-repeated) words, Minister of Tourism, Patricia de Lille, is a doer, not a talker. And at every public engagement with industry that Tourism Update has attended – public or private – she has sat, listened, and taken detailed notes.
At the end of the discussion, De Lille puts down those notes, gives her audience a stern look, and then says: “Okay, what are we going to do about it? And how and by when?”
She has highlighted that she only has 400 days in office until the next elections and has expressed her commitment to working with the private sector to address the barriers to growth and recovery post-COVID. And to help unlock opportunities.
At a Women in Tourism breakfast at Africa’s Travel Indaba 2023 in May this year, De Lille said: “If you wait for the government to act, you are going to be waiting til Jesus comes. Nothing will get done unless the private sector works with Government and provides guidance on what is needed.”
She consulted broadly with industry associations and prioritised several interventions. Last week marked 100 days since the Minister was appointed. She has provided feedback on progress regarding these interventions.
Growth of tourism numbers
“When I took office on March 7, the busy summer tourism season was coming to an end. The period between December and March is a busy one for the country’s tourism sector as visitors flock to our shores looking for sun, sea, and everything in between.
“The latest tourism figures from StatsSA reveal that our tourism sector is on a rapid path to recovery, and although we are not yet at pre-COVID travel numbers, we are edging closer, but that requires work,” highlighted De Lille.
Between January and December 2022, nearly 5.7 million visitors graced SA shores, including four million from Africa. This was a significant 152.6% increase from 2021.”
For the latest Statistics: Quarter 1: January to March 2023, international arrivals to South Africa amounted to 2.1 million visitors, a 102.5% increase compared with the same period in 2022.
“While still 21.5% lower than 2019 levels, we're gaining ground rapidly. The African continent led the way again with 1.6 million arrivals, followed by Europe's 387 000 and the Americas' 104 000 visitors.”
From a domestic perspective, the Q1 2023 performance surpassed pre-pandemic levels and those of Q1 2022.
In the first quarter of 2023, foreign direct spend soared to R25.3 billion (€1.2bn), marking a 143.9% increase compared with Q1 of 2022.
South African Tourism oversight and governance
One of the critical matters of contention was the proposed R1 billion (€50.3m) Tottenham Hotspur Football Club (FC) sponsorship deal with SA Tourism.
“In early March, I sought and obtained legal advice regarding the Tottenham matter. In terms of that advice, there were three reasons why the Tottenham sponsorship was deemed unlawful and invalid. I requested a response from the previous SA Tourism Board on why the proposed deal with Tottenham Hotspur FC was not unlawful and invalid,” explained De Lille.
On March 24, the Minister updated the media and the public on the SA Tourism and Tottenham Hotspur FC sponsorship proposal and requested a response on this matter from the previous SA Tourism Board by March 29.
De Lille received a response in which the previous SA Tourism Board agreed not to proceed with the proposal. The proposal was therefore stopped in late March.
Subsequently, after receiving reports on numerous serious allegations and governance concerns about the previous SA Tourism Board, the Minister wrote a letter to the then chairperson of the Board, Dr Thozamile Botha, asking for representations on why she should not dissolve the Board in terms of my powers under the Tourism Act.
In mid-April, eight of the 11 previous SA Tourism Board Members, including the Chairperson, resigned. The remaining three members of the previous Board could not form a quorum, and the Board was no longer functional.
“I then dissolved the board in terms of the Tourism Act, and this was gazetted on April 21. On the same day, I announced the appointment of three persons to manage the affairs of SA Tourism Board and gazetted the appointment of three persons.”
“The status of the SA Tourism Board is that an advert and call for nominations for members to serve on a full SA Tourism Board is now open until July 6, and interested parties are encouraged to apply.”
The Minister expects the appointment of a full and new SA Tourism Board to be completed by October this year after the recruitment and all due processes have been followed and completed.
“In the meantime, together with the department and the interim board, we are working to bring greater stability and efficiency to SA Tourism with our goal remaining to grow inclusive tourism in South Africa,” she said.
Tour operator licences
“I met with the Minister of Transport, Sindisiwe Chikunga, as tour operator licences are granted by her department. Our task is to reduce red tape and improve the turnaround time for processing tour operator licence applications and renewals,” noted De Lille.
She said that by April 12, the tour operator licence backlog stood at 418; this was down from the initial backlog of over 1 000 licence applications last year.
“In early May, I met with Minister Chikunga and we agreed that the Minister of Transport would write to all MECs for Transport and Safety for a moratorium on enforcement of tour operator permits where tour operator licence applications and renewals are pending. The enforcement of the moratorium is still pending.”
E-visas
A priority is to improve access to South Africa for visitors by collaborating with the Department of Home Affairs to improve ease of travel through the implementation of the e-visa system and digitising of passenger processing at ports of entry.
“In early March, I met with Minister of Home Affairs, Dr Aaron Motsoaledi regarding the challenges with processing visas and Minister Motsoaledi undertook to increase the visa adjudication capacity and to enhance the e-visa system.
“Capacity was increased with an additional 18 people deployed to the e-visa hub. Minister Motsoaledi indicated that this increased capacity would allow the e-visa hub to process up to 300 e-visas a day,” said De Lille.
South Africa initially rolled out the e-visa system to 14 countries, and visitors from an additional 20 countries can now apply for e-visas.
South Africa also has visa waivers for most countries across the world, including SADC countries, where no visa is required for periods of between 30 and 90 days.
Tourism Equity Fund
The Tourism Equity Fund (TEF) was stalled due to a court matter, but in May, De Lille settled the case.
The target is to have the TEF fully disbursed by March 2024 and to develop and implement mechanisms to unlock the implementation of the TEF to ensure black ownership within the confines of the law and support Small to Medium Enterprises in the tourism sector.
The revised implementation plan is currently being finalised by the Department of Tourism and the Small Enterprise Finance Agency (SEFA) within the confines of the existing and applicable legislation.
The drafting of the improved TEF application criteria is being finalised in consultation with the MECs for Tourism and the Tourism Business Council of South Africa (TBCSA).
“We are now finalising the concept and criteria for applications to the Tourism Equity Fund within the existing BBBEE legislation and the Tourism BBBEE Codes. This will unblock R1.42 billion (€71.4m) in funding to facilitate accelerated sector transformation.
“It is anticipated that the revised TEF concept and implementation process will be tabled to Cabinet for approval in July 2023,” said De Lille.
Tourism infrastructure development
Another priority is to create enabling conditions for a visitor experience through infrastructure development. The target is the maintenance and upgrade of tourism infrastructure.
De Lille explained: “In May, I met with the Development Bank of South Africa (DBSA), which is implementing agents of the tourism infrastructure projects, to review the poor performance of projects.
“We are reviewing and aligning the Memorandum of Agreement (MoA) between the Department and the DBSA to improve implementation on the infrastructure maintenance and upgrade projects.
“I have also called on the team at Infrastructure South Africa (ISA) to provide support on these projects in terms of contract management and providing additional support with professionals in the built environment at ISA.”
The department’s 2023/24 Annual Performance Plan has 25 infrastructure maintenance projects in five provinces. Twenty-three of these projects commenced implementation in the 2022/23 financial year, while two projects commenced in the 2023/24 financial year.
All 25 maintenance projects will be completed in this current financial year (2023/24).
In the current Annual Performance Plan, there are also 29 community-based projects. Construction has started on 20 projects.
Construction of these projects is expected to commence in this financial year.
Two other community-based projects are currently in planning with contractor procurement to start in this financial year.
“In terms of heritage sites, I have met with the Minister of Arts and Culture, Zizi Kodwa, and senior officials from his department to enhance the working relationship and collaboration between the two departments on maintenance of heritage sites. We have signed a Memorandum of Agreement between the two departments for maintenance of heritage sites,” said De Lille.
Tourism safety
Tourism safety is a key area of work. “In this regard, I have met with the National Tourism Safety Forum in May to discuss the implementation of the 2018 National Tourism Safety Strategy.”
The Tourism Safety Forum includes the National Department of Tourism, MECs of Tourism, the police, the National Prosecuting Authority, the Tourism Business Council of South Africa, and many other tourism associations representing the private sector.
“We agreed that it is now time to implement the actions outlined in the National Tourism Safety Strategy, which was adopted by all parties in 2018. The implementation of this was delayed during the pandemic, but it is now time to get back on track and expedite the implementation of actions that will enhance safety and our visitors’ experience,” said De Lille.
Increasing visitor numbers
Increasing the number of visitors to South Africa is another key area of work, and this involves developing and implementing a brand strategy to promote South Africa as a preferred destination.
“Our target is to increase visitor numbers and spend above pre-COVID levels by March 31 next year. In terms of global and domestic destination brand campaigns, plans are under way to conclude key campaigns for key source markets, including west, central, and East Africa,” said De Lille.
Tourism Sector Master Plan
The final priority is the conversion of the Tourism Sector Recovery Plan, adopted by the Cabinet in March 2021, to the Tourism Sector Master Plan.
The Department is finalising the first draft of the Master Plan. It is anticipated that the Master Plan will serve before Cabinet in August 2023 to seek approval for public consultation.
Additional work
The Minister has identified the need for a National Tourism Airlift Capacity co-ordinating mechanism in the department to enhance relations and collaboration with partners such as SA Tourism, Airports Company South Africa and provincial air access structures.
“I have also highlighted a need for strategic, coherent, and consistent messaging for all partners and stakeholders in the tourism sector to ensure that we market the country and speak to the world with one voice and one clear message: that we are open for business and ready to welcome travellers from all over the world.
“I will be meeting with key tourism partners, including the Tourism Business Council of South Africa, SATSA, and BrandSA later this month to work on a revised and more strategic marketing and communication plan and campaign,” said De Lille.
“The first three months in the portfolio have been busy, exciting and rewarding and I am encouraged by the passion and commitment of all stakeholders. I will continue working with all stakeholders to take tourism to the next level, and again my ethos is urgency and implementation.”
