4. TOURISM SECTOR

1. SECTOR OVERVIEW

Tourism is a human activity of socio-economic and cultural significance, and if well managed, can act as an agent for both economic and social change. Tourism is, in particular, a way of integrating communities and countries into the global market economy.

Worldwide, the export value of international tourism is the third highest after crude petroleum products and motor vehicles - contributing some 11% to the GDP of the world economy in 1995. In 1994, Africa as a whole accounted for a mere 1.8% of total world trade in tourism (estimated at US$337 billion).

North African countries - Tunisia, Algeria and Morocco - have dominated the continent in terms of tourism income. Emergence from political and economic isolation, has resulted in South Africa, in a very short space of time, becoming the second most popular tourist destination of the continent (after Tunisia). It is estimated that, in 1995, tourism’s contribution to the South African economy (GDP) will be in the vicinity of 4%, taking into account a 52% growth in the number of foreign visitors.

The potential for South Africa to grow its tourism industry, triple its contribution to national income and to at least double its foreign exchange earnings (1995 - R13 billion) by the year 2000, is very real. Growth potential in the international, regional and domestic markets is substantial, considering that the majority of the previously disadvantaged groups in the society are a dormant market and that neighbouring African markets have good potential for further development. If, tourism grew to contribute 10% to the GDP of South Africa, the industry would generate some R40 billion annually and create an additional 2 million jobs.

Tourism attraction and development is a key focus area for the Mpumalanga Province. It has a competitive advantage in the rich array of natural features, prolific wildlife and scenic beauty. After Cape Town, Johannesburg and Durban, Mpumalanga is the most popular destination for foreign visitors, contributing R2.3 billion to the foreign exchange earnings of the Province. Tourist attractions are many, and vary from game viewing in the more than seventy (70) game parks to spectacular natural wonders created by the gigantic escarpment of the Transvaal Drakensberg. Mpumalanga offers impressive caves with large dripstone formations, a rich cultural heritage, traditional African tribal art and craftwork and contemporary art work by scores of artists working in the relaxed atmosphere of the Lowveld. Mpumalanga is also in the process of developing a well regulated gaming industry and is currently holding public hearings to establish the location of four casino licences granted to the province in terms of new national legislation.

3. Tourism in the Northern Province

Tourism currently contributes approximately 11% (1991) to the GGP of the Northern Province. It is the least developed sector in view of its sizeable potentials, and has long been recognised as one of the Provinces key comparative advantages. Past fragmentation of management structures has contributed to this under-development and co-ordination/rationalisation processes are underway to address this.

The Lowveld sub-region of the Northern Province has many attractions of natural beauty ranging from tropical forests, waterfalls and dams in the Tzaneen area to the Kruger Park and other game parks which run adjacent to the eastern border of the sub-region. The sub-region has a rich cultural heritage providing a diverse range of historical and cultural sites including the Venda Dombo dance and the Cycad forests of Mudjaji the Rain Queen which have linkages to Zimbabwe. Given the rich and varied fauna and flora the Lowveld sub-region intend becoming an important eco-tourism destination.

The Provincial Government, in recognising the potential of the Tourism sector, proposes the following key policy interventions:- A professional marketing campaign nationally and internationally; the cohesive planning; development and utilisation of natural attractions such as nature conservation areas, mountains, forests, reservoirs and dams for tourism; and commercialisation of state owned tourism facilities and privatisation where appropriate.

4. An Emerging Regional Destination

In various combinations, Mozambique, Zimbabwe, Swaziland and the Mpumalanga and Northern Provinces of South Africa are involved in a variety of tourism initiatives - including the "Peace Park" in Mozambique linking to the Kruger National Park, various "conservancy" developments in Zimbabwe, Mozambique and Swaziland and importantly, coastal development in Mozambique. The opportunity exists to develop and manage this tourism region cooperatively and to market it as one of the worlds unique regional destinations.

The immediate transport infrastructure improvements in the Maputo Development Corridor dramatically enhance these opportunities.

4.1.5 Institutional Arrangement

The institutional arrangements for tourism in South Africa are as follows:

• The tourism industry falls under the national Ministry of Environmental Affairs and Tourism and is seen as a provincial affair to be driven by the private sector. The national department is responsible for co-ordination and communication, facilitation, long term master planning and policy making;
• A strategic framework for Tourism Development in South Africa exists and currently guides and supports tourism development;
• A discussion document towards a White Paper on the Development and Promotion of Tourism in South Africa was distributed during March 1996 for comments by all stakeholders and community interested parties;
• A South African Tourism Development Authority is being proposed by the draft White Paper. The key functions will be international marketing, promotion and public relations, research, industry standards and support with product and human resource development;
• In the Mpumalanga Province, sector responsibility lies with the Department of Economic Affairs and Tourism; The department is supported in its responsibilities by the Mpumalanga Tourism Authority (strategic direction of tourism) and the Mpumalanga Gaming Board (gaming industry);
• The Environmental Conservation function in the Mpumalanga Provinces lies with the Department of Environmental Affairs. The department is supported by the Mpumalanga Parks Board (conservation and tourism) and the Environmental Council (environmental ombudsman);
• Tourism in Northern Province falls under one of four sub-divisions in the Department of Environment and Tourism and has a staff complement of three. In terms of the South African White Paper on tourism, a Tourism Advisory Board has been established to advise the Department in the interim. For each of the four sub-regions in the Province an advisory forum, consisting of two community members and one private sector representative, has been established. The future functioning of the Board will be determined through an act of the Provincial Parliament.
• The Industrial Development Corporation supports eco-tourism through financial support, loans and risk equity, to develop, improve and/or expand tourist facilities in game parks and conservation areas and to renovate, refurbish and extend existing accommodation throughout South Africa.

 4.2 PROJECT LIST

The following list identifies key projects/(programmes at various different stages, in both the Mpumalanga Province and Northern Province sections of the Corridor. These are:

• Category A : Projects/programme recently completed or already in implementation. That these are complete or in implementation, does not preclude the possibility for further investment/equity participation, either in expansions or financial restructuring.
• Category B : Projects/programmes fully prepared and specifically or actively seeking, or which may benefit from, investment/equity participation.
• Category C : Potential projects/programmes in the process of being prepared and which may be seeking, or which may benefit from, investment/equity participation.
• Category D : Possible projects/programmes for consideration.
This list is not exhaustive. It reflects key projects and programmes.

 

KEY PUBLIC SECTOR AND PRIVATE SECTOR PROGRAMMES/PROJECTS/INITIATIVES : CURRENT AND PLANNED TOURISM SOUTH AFRICA MPUMALANGA PROVINCE
NO	PROJECT NAME/DESCRIPTION	LOCATION	STATUS*	CONTACT DETAILS
9	Volksrust - Vukuzakhe Core Development Area for Eco-Tourism  Volksrust is an important alternative route between Gauteng and the North and South coasts of KwaZulu Natal. It is a major inter-regional route for trucks and taxis on the Durban-Nelspruit and the OFS/Cape routes. The main railway line between Durban and Gauteng also passes through Volkrust. The area can be described as predominantly undulating highveld grassland with the added attraction of an escarpment and related mountains which provide an attractive variety of landscapes and a unique climate. The weather is very pleasant varying from cool summers to cold winters with occasional snow on the mountains. Current tourism facilities are of historical importance.  Identified development products are: Bed and Breakfast, Guest Houses, Truck Inn, Restaurants, Supporting Services - Curio Shops, Car Hire, Arts and Crafts etc. Estimated capital cost for development US$8 Million.	Volksrust	D	G Stapelberg  Tel: 01311 - 44405/6  Fax: 01311 - 44509
10	Development of Hiking Trails  Escarpment is a beautiful area for hiking trails. Proliferation of trails in Eastern and South Eastern Mpumalanga. Proliferation of small guest houses to cater for increase in tourism activities.	Elandsvalley  Dullstroom, Carolina, Belfast, Barberton areas	D	B de Sausa  Tel: 01314 - 24067
11	Artist Colony in White River Area  The development of an artist meander along the lines of the Crocodile River Ramble (NW of Johannesburg) is the basis of this initiative to encourage tourism and the sale of art and craft work to foreign and domestic tourists.	White River area	D	G Stapelberg  Tel: 01311 - 44405/6  Fax: 01311 - 44509
12	Trout Route  Route guiding tourists to trout farms, fisheries, craft market etc. Trout fishing/lodges are expanding rapidly in area. Lots of potential. Beautiful scenery.	Dullstroom, Lydenburg, Belfast area	D	G Stapelberg  Tel: 01311 - 44405/6  Fax: 01311 - 44509

3. PROJECT LOCATION

The map which follows shows the spatial location of all projects in the aforementioned list.

The numbers on the map correspond with the reference numbers given to the projects in the list.

 ANALYSIS OF TRENDS

• The industry enjoys tremendous opportunities due to the exceptional base of natural and cultural resources and the growth in regional and global tourism;
• Major investment opportunities, including regional approaches, are emerging, as a result of South Africa’s return to the international arena;
• The proximity to the Mozambique coast and the city of Maputo provide additional opportunities for broadening visitor’s experiences;
• The existing and planned developments show that eco-tourism has potential and comparative advantage. The corridor spans a wide range of different biomes, from grasslands, mountain catchment areas and wetlands, to savanna woodlands and coastal plains.
• African Ethno-tourism has a competitive advantage but is still very under-developed;
• The potential for eco-tourism, has a bias to the Lowveld area of Mpumalanga, while ethno-tourism has potential for the whole of the Mpumalanga;
• Progress with the gambling industry will open opportunities for four (4) casinos in the Province;
• The tourism sector lacks the involvement of small and medium size businesses from the disadvantaged society in the Province. This is an opportunity and needs to be strengthened;
• Tourism projects offer substantial opportunity for human resource development - this needs to be pursued.

4.5 PROJECT PROFILES

The following profiles present additional information in respect of all category "B" and "C" projects in the project list.

Further information in respect of these projects can be obtained through the contact person named.

PROJECT PROFILE : TOURISM No 3