For Immediate Release

PRESS STATEMENT

BOOST TOURISM TRADE CONFIDENCE BY IMPROVING INTER-GOVERNMENTAL RELATIONS

Pretoria, 23 June 2014: The Tourism Business Council of South Africa (TBCSA) haswelcomed the State of the Nation Address by President Zuma with a request forGovernment to prioritise inter-governmental/business relations and creating an enablingenvironment for the travel and tourism trade.

TBCSA Chief Executive Officer, Mmatšatši Ramawela said the trade welcomed the SONA’sconsistent feature of the travel and tourism industry, saying this sends a strong messageabout Government’s regard for the industry.“We welcome the Presidents’ consistent profilingof travel and tourism in his speeches. To us it’s a demonstration of the increased coverageand attention the industry is receiving within Government.

Ramawela emphasised the need for Government to create a conducive environment for thetrade, highlighting the need to improve inter-governmental relations as one of the mainchallenges which the TBCSA has identified. “Recent pronouncements on immigrationregulations without broad consultation with the travel and tourism trade as a partner ofGovernment constitutes an unfortunate disconnect between the public and private sector.The harm already done in terms of forward bookings and tourist perceptions about thedestination is unfortunate and we fear that it may take some time to repair” she said.

Commenting on the SONA’s remarks about increasing foreign visitor arrivals to more than15 million annually by 2017 and increasing tourism’s contribution to the country’s revenue,Ramawela said that the President’s ambition of achieving double-digit growth in touristarrivals was achievable but could only be reached if there was greater cohesion in intergovernmentalstrategy and support given to the travel and tourism trade.

Marc Corcoran, President of the South African Vehicle Rental and Leasing Association(SAVRALA) said: “SAVRALA welcomes the recognition by President Zuma of Tourism’spotential to assist growth in the South African economy. “We look forward to work withMinister Hanekom to ensure that appropriate government policy and resources place tourismhigher on the agenda to ensure that the R125bn revenue target is achieved. We are,however, concerned that the President failed to address the lack of progress to attain theDecade of Action 2020 road safety targets which should by now have seen a turnaround inthe annual road carnage which continues to claim over 14,000 South African lives annually”.

Ramawela said sentiments expressed by SAVRALA on transport matters are similar to thefrustrations experienced by other sectors within travel and tourism, whose work is directlyimpacted by legislation and policy decisions made elsewhere in the realm of Government.

“In the President’s words, change will not come without some far-reaching interventions. Webelieve one of the interventions should be improvement in inter-governmental and businessrelations at a local, provincial and national level. Create the right climate, and then theinvestment and job creation will follow” Ramawela concluded.

Ends

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For further information please contact: Ms. Kagiso Mosue, TBCSA Corporate Communications Manager on +27.12.654.2660

Editors Notes

TBCSA

Tourism Business Council of South Africa (TBCSA) is a member-based organisation, made up of TourismAssociations as well as leading businesses operating in the Travel and Tourism sector. The Council seeks toensure that the industry is unified and speaks with one voice when engaging relevant stakeholders on macroeconomicissues affecting the sector.

Sector associations affiliated to the TBCSA are as follows:
1. AHI – Afrikaanse Handelsinstituut
2. AASA – Airlines Association of Southern Africa
3. ASATA – Association of South African Travel Agents
4. BARSA – Board of Airline Representatives of South Africa
5. EXSA – Exhibition & Event Association of Southern Africa
6. FEDHASA – Federated Hospitality Association of South Africa
7. FGASA – Field Guides Association of South Africa
8. HOSA – Hiking Organisation of South Africa
9. NAA –SA – National Accommodation Association of South Africa
10. ORCSA – Off-Road Council of South Africa
11. PHASA – Professional Hunters Association of South Africa
12. RASA – Restaurant Association of South Africa
13. SACA South African Chefs Association
14. SAACI – Southern African Association for the Conference Industry
15. SABOA – Southern African Bus Operators’ Association
16. SATSA – Southern Africa Tourism Services Association
17. SAVRALA – Southern African Vehicle Rental Association
18. SAYTC – South African Youth Travel Confederation
19. VOASA – Vacation Ownership Association of South Africa

As the confetti from the ANC election victory party settled over the weekend, the tourism industry gathered in Durban, for Indaba 2014, to showcase its broad ranging products and services to local and international visitors. South African tourism, exceeding over 10 million arrivals last year and its growing GDP contribution which now exceeds 9%, has demonstrated sustained growth well above the global industry norm.  Reflecting further on the extent of this performance, one is reminded that yet another record was broken, at the time, in 2010 during the hosting of the FIFA World Cup when over 8 million foreign visitors arrived in the country.

A labour-intensive industry, with a supply chain that links across multiple sectors, tourism was identified as a priority in the government’s planning and policy frameworks being as one of the six job drivers of the New Growth Path framework.  The National Development Plan (NDP) also identified the need for critical actions to boost private investment in labour intensive areas and export earnings which is a typical feature of the tourism industry. Aligned to the NDP, the National Tourism Sector Strategy, launched in 2011, aims to ensure the sector realises its full potential in terms of job creation, social inclusion, services exports and foreign exchange earnings. At its current levels, the tourism industry matches the gold sector however the National Department of Tourism expects tourism to grow from a baseline in 2009 of R189 billion to R499 billion by 2020.

SAVRALA (Southern African Vehicle Rental and Leasing Association) car rental members have also shown similar growth patterns in certain segments. The measured market, in 2013 at R4,7 billion in revenue, reported a 9% growth over the previous year and while rental volumes showed a very modest overall 2% growth, international customers grew by over 20%. However, these international customers are also price sensitive which was illustrated by a 10% reduction in rental period, to an average of 8 days, last year. More locally, unsurprising, with the increasing financial burden on households and the demise in the number of local low cost airline operators, the domestic leisure rental volumes decreased by 8% last year. While general business travel remains a key segment, the growth of both local and international visitors requiring car rental services and the many other related services, would see many new and much needed jobs being created in tourism.

As a long haul destination, South Africa competes in several key markets against other long haul destinations such as the Far East and Australasia. The cost and capacity of air access to South Africa, and the continent in general,  is often the first challenge in efforts to try and ensure that tourism can take the necessary steps to achieve its ambitious targets. It is notable that the Tourism Minister Marthinus van Schalkwyk reflected on this key enabler during this year’s Durban Indaba.

As the tourism industry awaits the announcement of the new members of President Jacob Zuma’s Cabinet, it is hoped that tourism will play a more central role in his administrations focus over the next five years, given its rich abundance of opportunity.

While tourism has got a good story to tell, it’s critical that in five year’s time, we have a much better South African tourism legacy to look upon.

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Press release issued 06-12-2012

SAVRALA as an organisation has always been very conscious of its social responsibility and has for years encouraged members to open their hearts and their wallets.

This year SAVRALA’s charity of choice was the SANParks Honorary Rangers, as well as the award-winning Ezemvelo KZN Wildlife Organisation. Both the SANParks Honorary Rangers and Ezemvelo are volunteer charity organisations that are heavily involved in preventing rhino poaching as well as all other areas of conservation.

Having already raised an impressive R100 000 at SAVRALA’s Golf Day on 22 February 2012 at the beautiful Blue Valley Golf Course in Midrand, SAVRALA managed to raise an additional R7 100 on the eve of their annual Manufacturer of the Year (MOTY) Awards held on Friday, 26 October 2012.

The cheque for the second contribution was handed to David Webster, chairperson of the Johannesburg region of the Rangers, at the last SAVRALA NEC (National Executive Committee) meeting by the new incoming President, Marc Corcoran. SAVRALA were in turn presented with a certificate by the Honorary Rangers for their involvement in the worthy cause of saving the rhino and in recognition of their generous contribution.