Briefing to the Select Committee on Trade and
Briefing to the Select Committee on Trade and International Relations on Rural Tourism Development 21 February 2018
Content Rural Tourism Strategy • • Slide No: 4 -6 Vision and Mission Rationale for the Rural Tourism Strategy Strategic Themes Goals Implementation of Programmes as per Rural Tourism Strategy 8 Capacity Building and Skills Development Programmes 9 -22 • Local Government Induction (Capacity Building Programme) • Youth Training Programmes • National Youth Chefs Training • Hospitality Youth Programme • Wine Service or Sommelier Training • Food Safety programme • Tourism Blue Flag Programme • Executive Women Development Programme • Tourist Guide Training • Energy Resource Efficiency Programme GTAC Working for Tourism Programme 23 February 2018 2
Content (Cont…) Enterprise Development • • Slide No: 23 -46 SMME’s • Challenges faced by SMME’s • Roll out of Enterprise Development Plan • Incubator Projects Business Development Market Access Support Programme • Hidden Gems • Summary of SMME support Needs and locations • Types of Businesses supported • Enterprise Development and B-BBEE portals • Awareness of Enterprise Development Tourism Incentive Programme • 47 -52 Solar PV Projects Product Development (Destination Development) § § 53 Shangoni Gate Phalaborwa Wild Activity Hub Tsitsikamma Big Tree Gateway Universal Accessibility Project (UA) GTAC Working for Tourism Programme 23 February 2018 3
Rural Tourism Strategy Vision: A developed rural tourism economy. Mission: Enhance the growth and development of tourism in rural communities, particularly in less visited provinces. Rural Development Strategy Implementation 21 February 2018 4
Rationale for Rural Tourism Development Direct response to government outcomes namely: • Outcome 4: Create decent employment through inclusive economic growth, • Outcome 7: Develop vibrant, equitable, sustainable rural communities contributing towards food security for all; and • Outcome 11: Creating a better South Africa and contributing to a better and safer Africa in a better world. In addition, the NTSS addresses three strategic themes which reflect: • tourism growth and the economy; • enhanced visitor experience; and • sustainability and good governance referring to means of addressing the issue of geographic, seasonal and rural spread. Rural Development Strategy Implementation 21 February 2018 5
Rural Tourism Strategic Themes Strategic Theme One: Product Development Strategic Theme Two: Tourism Marketing Strategic Theme Three: Human Resource Development Strategic Theme Four: Tourism Infrastructure Development Strategic Theme Five: Tourism Research and Information Rural Development Strategy Implementation 21 February 2018 6
Goals • Create a platform to share knowledge of best practice, development opportunities and challenges in rural areas for tourism development; • Facilitate the coordination of rural tourism development initiatives amongst relevant stakeholders; • Create an enabling environment for rural tourism development to stimulate job creation and local economies; • To identify and recommend strategic areas/nodes for tourism development in rural areas within the sector; • To guide strategic development within key documentation generated for tourism development and management in South Africa. Rural Development Strategy Implementation 21 February 2018 7
Implementation of Programmes as per Rural Tourism Strategy 1. Capacity Building and Skills Development 2. Enterprise Development and Transformation 3. Tourism Incentive Programme (TIP) 4. Destination Development Rural Development Strategy Implementation 21 February 2018 8
Capacity Building & Skills Development Programme Rural Development Strategy Implementation 21 February 2018 9
1. Capacity Building & Skills Development Programme LOCAL GOVERNMENT INDUCTION PROJECT DESCRIPTION: • The project prioritises spatial nodes that have a potential to stimulate tourism growth in rural areas. The approach utilised is in the form of workshops and site visits to projects that can be used as case studies for lessons learnt and improvement. • The beneficiaries are municipal officials in Local Economic Development and Tourism units. SMMEs, local Community representatives, traditional as well as Political leadership within the selected communities becomes part of the developments. • Experts on areas identified through a needs analysis approach of the area are sourced from different institutions like universities, government agencies and private sector organisations to deliver on the identified needs. PROJECT OBJECTIVE: • To provide an integrated approach on capacity building and create a platform for stakeholder engagement and information sharing for the public sector, private sector and communities focussing on rural municipalities. Rural Development Strategy Implementation 21 February 2018 10
Capacity Building & Skills Development Programme 1. LOCAL GOVERNMENT INDUCTION (Cont. . ) PROGRAMME IMPACT • The impact in Bushbuckridge was the establishment of a Local Tourism Organisation (LTO). The structure managed to have engagements with the industry such as Business Breakfast in 2016. • NDT was part of the interdepartmental task team that developed a Bushbuckridge Economic Development Master Plan. • Through the capacity building and IDTT key projects were identified to stimulate economic growth in Bushbuckridge • In Dr RS Mompati and Ngaka Modiri Molema an Interim LTO was established. This organisation assists in strengthening relations between the different stakeholders and the coordination of initiatives that stimulates tourism growth. • In Mopani District, a Tourism Strategy was developed and LED forum was established. • NDT has identified Matsamo Cultural Customs project to be supported through capacity building in Nkomazi Municipality. A task team was established in Nkomazi to assist in the resuscitation of Matsamo Cultural Customs project. There is a demonstration of improved alignment and communication between spheres of government and private sector. BLM is now supporting the capacity development of Nkomazi Local Municipality. Rural Development Strategy Implementation 21 February 2018 11
Capacity Building & Skills Development Programme 1. LOCAL GOVERNMENT INDUCTION (Cont. . ) PROGRAMME IMPACT (Cont…) • Through capacity building workshops conducted in Zululand district and OR district municipalities, a twining programme was identified. Twinning of Nyanya Resort in Zululand Dan’s Country Lodge in the OR Tambo districts were established. These two products are sharing best practices and learning from each other as they have a lot in common. • In Ngaka Modiri Molema district, an interim LTO that represented all local municipalities was established. SMME forum for communication was established where they are kept abreast on what is happening in the industry. • Through the Capacity Building programme implemented in Vhembe district, the SMMEs from Thulamela had a two day session where the establishments owners/managers and staff were exposed to the practical part on the best practices in hospitality industry: i. e. front office etiquette, customer service, preparation and presentation of meals by a chef and the rooms division: the professional way of making up beds. Rural Development Strategy Implementation 21 February 2018 12
Capacity Building & Skills Development Programme 2. YOUTH TRAINING PROJECTS The Department of Tourism, through the Expanded Public Works Programme (EPWP), is training young people with a Matric as a basic qualification between the ages of 18 -35 in various fields within the Tourism and hospitality sector. The aim of the training interventions is to: • To train and develop the skills of young people in order to increase the pool of skilled labour force within the Tourism & Hospitality Industry • To create temporary jobs for unemployed people, focusing on the Youth, Women and People with Disabilities • To contribute towards poverty alleviation through payment of a stipend. • To provide learners with accredited training programmes that will enable them to obtain credits towards further studies. Rural Development Strategy Implementation 21 February 2018 13
Capacity Building & Skills Development Programme 2. 1 National Youth Chefs Training Programme • This programme is offered through the South African Chef Associations (SACA) as the implementing agent. It is a three year full qualification which has been split into the following learning areas: • Professional Cookery Certificate: no: 73295, 120 Cr ; • Diploma in Professional Cooking: no 73289, 120 Cr; and • Advanced Diploma- Specialising in Pastry: no 73292, 120 Cr. • Learners are trained in 20% theory and 80% practical work and they are placed in workplaces to acquire the relevant skills. The project is now in its 5 th phase of implementation. About 3600 young people from all nine (9) provinces have benefited from this programme during the past 4 years. • Criteria for Selection of beneficiaries: • Proficiency in English and basic knowledge of numeracy • Unemployed youth of ages between 18 and 35 • Matric / Grade 12 • SA Citizen Rural Development Strategy Implementation 21 February 2018 14
Capacity Building & Skills Development Programme 2. 2 Youth in Hospitality Service Training Programme • The Hospitality Youth Training Programme is a twelve month learnership programme and covers 30% theory and 70% workplace training, leading to the attainment of an accredited full qualification. Enrolled learners undergo training in the following areas: • Food and Beverage Services NQF 4 • Accommodation Servicers NQF 2 • National Certificate in Fast Foods NQF 3 Programme Objective The objective of the programme is for learners to: • gain insight into the day to day activities of a job within their field of interest; • understand how the job fits into the overall operation of the hospitality industry; and • learn about experience that supports this learnership. • The programme is now in its 4 th year of implementation. About 6813 unemployed youth benefited during the initial three years of implementation. • The current phase commenced in November 2016 and was completed in October 2017. A total of 1919 learners have been enrolled for the programme. Rural Development Strategy Implementation 21 February 2018 15
Capacity Building & Skills Development Programme 2. 3 Sommelier Training and/or Wine Service The Wine Service and/or Sommelier Training is a three-year training programme. The planned enrolled learners for the training programme is 300 young people from three provinces, namely Western Cape, Kwa. Zulu-Natal and Gauteng. Current only 265 learners have enrolled for the programme and plans are underway for the Northern Cape province. Objective of the training: The objective of this programme is to skill the unemployed youth to make sure that they are employable within the Hospitality and Wine industry. The training focuses on the following areas: • Bar Attendant Skills programme; • Wine server course, cellar door experience, basic wine tasting; • Wines of the World; • Food and Wine pairing; • Wine making processes; • Viticulture; • Customer Care and • Table attendant. Rural Development Strategy Implementation 21 February 2018 16
Capacity Building & Skills Development Programme 2. 4 Food Safety Programme • The Food Safety is an apprenticeship training programme targeting the unemployed youth of South Africa. The programme covers 10% theory and 90% workplace practical training which lead to the attainment of an accredited skills programme. • The total number of enrolled learners for the programme are 492 and the programme is implemented in eight provinces. Plans are at an advanced stage to recruit additional learners in the Northern Cape. • Food safety is a scientific discipline aimed at handling, preparing, and storing food in ways that prevent foodborne illnesses. This includes a number of routines that should be followed to avoid potentially severe health hazards. Objectives of the Training Programme • The objective of the experiential programme/internship is to train unemployed youth to enable them to acquire skills and gain work experience to enhance employability in the hospitality and tourism sector. Rural Development Strategy Implementation 21 February 2018 17
Capacity Building & Skills Development Programme 2. 4 Food Safety Programme Objectives (Cont…) • The programme targets the youth who have completed the National Diploma in Hospitality/Catering from TVET Colleges • The training focuses on the following areas: • Good Manufacturing Practices: NQF Level 1 • Personal Hygiene and Food Safety Practices: NQF Level 2 • Good Storage and Distribution Practices in Food Environment: NQF Level 3 • Conduct audits and optimise product and process quality within a quality management system in a Food Processing Environment: NQF Level 5 • Learners selected for the training must be: • Between the ages of 18 to 35 • A South African Citizen • In possession of a National Diploma hospitality/catering level N 6 • Must have basic numeracy and communication skills in English Rural Development Strategy Implementation 21 February 2018 18
Capacity Building & Skills Development Programme 2. 5 Tourism Blue Flag Programme The training programme for beach stewards is a three year programme which is aimed at improving tourism facilities and services offered at 75 Blue Flag beaches across three provinces, namely, Kwazulu Natal, Western Cape and Eastern Cape. Programme Objective: The programme plans to train 300 learners as beach stewards in an Accredited National Certificate: Environmental Education Training & Development Programme. (NQF level 5) Currently there are 205 learners that have enrolled and are placed at 51 beaches. Criteria for selection of beneficiaries: • Proficiency in English • Matric or Grade 12 • Unemployed youth of ages between 18 and 35 • Further studies or experience preferred • Good Communication skills • Ability to swim would be an added advantage • South African Citizen Rural Development Strategy Implementation 21 February 2018 19
Capacity Building & Skills Development Programme 2. 6 Executive Women Development Programme The target market for the pilot phase was twenty black South African women in senior management positions in the tourism industry. • The admission requirements for the training programme are: a Matric or National Senior Certificate plus NQF level 6 or 7 and at least five (5) to ten (10) years managerial experience in a senior management position. Alternatively, a portfolio of evidence for Recognition of Prior Learning can be considered. • The programme is offered as distance learning and with two block sessions per year. The programme consists of seven modules, ranging between twelve (12) and twenty-four (24) credits each, and a total hundred and eight (108) credits, offered over twelve months. All the modules are compulsory in this programme. Programme Objectives: • To ensure that senior female leaders in the tourism industry are able to overcome leadership challenges by developing and directing innovative organisational strategies in a complex environment. • To promote transformation of the tourism industry through mentorship and structured executive development programmes • The recruitment and selection of the second phase of 40 women has been finalised. The process is in it’s final stages, whereby UNISA is registering the students on the system. The 1 st study school was scheduled for 12 -16 February 2018. Rural Development Strategy Implementation 21 February 2018 20
Capacity Building & Skills Development Programme 2. 7 Tourist Guide Training • This capacity building programme aims to improve the levels of services rendered by existing tourist guides throughout South Africa. The focus for the next three (3) years will be on improving the services of tourist guides in all eight (8) World Heritage Sites (WHSs). • The WHSs are amongst South Africa’s biggest draw-cards and ensuring that the knowledge and quality of tourist guides operating at these WHSs are of a very high standard is essential in attracting more visitors to our country. • The training programmes that will be implemented at the identified WHSs will be based on the skills gaps of existing tourist guides operating at the WHS’s. Two WHS’s sites have been selected for the 2017/18 financial year, i. e. u. Khahlamba and Mapungubwe. • The Department entered into agreements with the respective entities responsible for the management of these identified sites based on the proposals that will outline the capacity needs at the respective attractions. Accredited training providers as well as subject matter experts were utilised to implement the various up-skilling programmes. Rural Development Strategy Implementation 21 February 2018 21
Capacity Building & Skills Development Programme 2. 8 Energy Resource Efficiency Programme The programme involves the training of 60 youth in 3 provinces (Limpopo, Gauteng and Kwa. Zulu-Natal) on the National Cleaner Production Centre (NCPC-SA) resource efficiency and cleaner production methodology. Objectives of the training programme: • To capacitate young people studying Tourism or Electrical Engineering at TVET colleges with the skills to conduct resource efficiency assessments • To support the Energy Efficiency Incentive which is managed by IDC on behalf of the Department. • It is anticipated that this programme will empower young people with new skills to enter the job market or to start their own businesses. Rural Development Strategy Implementation 21 February 2018 22
Enterprise Development Rural Development Strategy Implementation 21 February 2018 23
Enterprise Development • The Department has developed a new approach to support Small, Micro to Medium Enterprises (SMMEs) in tourism. To ensure efficiency in the delivery of such services, an Enterprise Development and Transformation Unit has been established in the new organisational structure. • The Unit’s Enterprise Development programme seeks to provide business development and market access support in order to improve the sustainability and job creation potential of SMMEs in tourism. Rural Development Strategy Implementation 21 February 2018 24
Challenges faced by SMMEs • The small business sector plays a critical growth role in the South Africa economy yet it continues to face serious impediments to growth. • The common challenges faced by SMMEs as cited by a recent study by the Bureau for Economic Research include amongst others; • Poor access to finance and credit; • Lack of access to markets; • Access to business related information; • Burdensome labour laws, regulatory compliance and government bureaucracy; and • Unviable business operations. Rural Development Strategy Implementation 21 February 2018 25
Support needed by SMMEs per sub- sector SUPPORT NEEDED BY SUB-SECTOR (%) 120% 100% 80% 15. 6 9. 4 16. 7 9. 4 10. 4 16. 8 10. 9 40% 19. 3 15. 6 20% 0% 9. 4 15. 6 16. 7 8. 3 16. 7 7. 3 10. 4 11. 7 10. 9 9. 7 13. 1 9. 4 8. 3 12. 5 14. 6 60% 9. 4 15. 6 10. 3 13. 9 12. 4 14. 2 10. 4 15. 3 12. 2 11. 1 16. 7 8. 9 15. 0 12. 6 11. 0 14. 2 11. 8 14. 2 11. 0 15. 9 9. 8 13. 7 14. 1 6. 7 14. 1 12. 7 Marketing Capacity building Acc to info. Financial assistance Acc to infrustructrure Bus. Advisory services Info. Com Tech Food and beverage Transport Accommodation Tour operator Rural Development Strategy Implementation 21 February 2018 Business Tourism/MICE Attractions 25. 0 16. 7 12. 7 11. 1 15. 6 12. 1 12. 2 10. 2 Arts and Crafts 13. 0 Research dev. & Innovation Sports and Recreation 26
Roll out of Enterprise Development Plan The following activities are being rolled out to ensure the delivery of business development services from the previous financial year: • Appointment of a panel of service providers with enterprise development expertise and experience to deliver mentorship and coaching services to SMMEs; • Identification of beneficiaries across the country; • Conducting diagnostic of needs of selected enterprises; • Provision of mentorship and coaching to enterprises; • Support of 2 tourism incubators in Moruleng (Pilanesberg) in the North West Province and Bushbuckridge (Manyeleti) in Mpumalanga; • Merging of the Enterprise Development and Broad Based Black Economic Empowerment information portals; and the • Organisation and hosting of nationwide Enterprise Development Awareness campaign targeted at communities and youth. Rural Development Strategy Implementation 21 February 2018 27
Incubator projects • Research has shown that SMMEs are most vulnerable to failure during the first 3 years of their operation. • The process of business incubation in the ICT and Manufacturing sectors has proven success to help enterprises to survive and grow during this period. • The department is rolling out tourism business incubation projects at thriving tourism hubs or destinations as one of the strategic ways to deal with failure within the tourism SMME sphere. • The tourism incubation programme is being piloted in Moruleng, Pilanesberg in North West Province and Bushbuckridge, Manyeleti tourism node in Mpumalanga Province. • The Department is in talks with SEDA to share best practices and to incorporate supplier development initiatives to support local producers and suppliers alongside tourism businesses. Rural Development Strategy Implementation 21 February 2018 28
Incubators • The 100 SMMEs under incubation have so far received needs assessment evaluation, marketing training and exposure (7 of them were part of the Hidden Gems programme at Indaba 2017); • Additional to the above the SMMEs also received: SARS training on tax returns, attended workshops given by commercial banks, Small Enterprise Finance Agency (SEFA) and Small Enterprise Development Agency (SEDA); • Three (3) enterprises from the Moruleng incubation accompanied the Minister of Tourism to Rwanda and had an opportunity to interact with trade and counterparts from SADC. Rural Development Strategy Implementation 21 February 2018 29
Selection of SMMEs • The programme supports viable existing Small, Micro and Medium Enterprises (SMMEs) at selected tourism nodes or destinations. • Two incubators each enrolling 50 SMMEs have been implemented so far and will run for 3 years. SMME operators have been selected in consultation with Provincial Department of Tourism and Economic Development and Local Municipal Structures. Rural Development Strategy Implementation 21 February 2018 30
Selection of SMMEs (Cont…) Requirements for admission into an incubator: • CIPC registered in existence for a year and preferably 24 months; • Membership to a local tourism association preferable/ advantageous; • Owner must be RSA Citizen; • SMMEs must be in hospitality, travel and tourism industry and closely related economic activities i. e. events, festivals, conferences etc; • Owner or manager plays a central role in managing business; • SMMEs must be within 150 km radius of the hub; • Willing to sign a cooperation/commitment contract with incubator coordinator re: sharing of business records, attendance of workshops, mentorship and coaching sessions; and • Commitment to provide own contribution in selected aspects of business development i. e. industry association membership, grading and business equipment support. Rural Development Strategy Implementation 21 February 2018 31
Moruleng Incubator: North West: Bojanala District in Moses Kotane Local Municipality This incubator was launched in 30 October 2016 in Moruleng, North West Province and enrols 50 enterprises for development support for a 3 -year period. Rural Development Strategy Implementation 21 February 2018 32
Types of business in the Moruleng Tourism Incubation Programme (50) Sub- Sector Accommodation establishments Tour operators Busine ss type B& B Guest House Tour Operato rs Tour Guidin g Numbe rs 7 6 21 1 Sub total Hom Othe e r Stays 1 3 17 Rural Development Strategy Implementation 21 February 2018 22 Attractio ns Food and Total Beverage Restauran ts 9 2 50 33
Manyeleti Incubator, Mpumalanga: District Bushbuckridge Local Municipality (50) This incubator was launched on 31 March 2017 and enrols 50 SMME’s for development support in the next three years. Summary of Interventions required Number of SMMEs Business Administration Training 50 Business Planning Training 50 Development Training 50 Finance Training 50 HR Training 45 Market Access Training 50 Legislation/accreditation/grading/compliance Training 48 Marketing Training 50 Mentorship Training 35 Pricing Training 42 Service excellence Training 16 Rural Development Strategy Implementation 21 February 2018 34
Types of business in the Manyeleti Tourism Incubation programme (50) Subsector Accommodation establishments Tour operations Busines Bed and Guest Lodge s type Break- houses fast Number s 8 4 7 Attractio Entertainm Food & ns ent beverag e Other Subtota Tour Sub-total l Operator Guiding s 4 23 Rural Development Strategy Implementation 21 February 2018 17 7 24 Event 2 Restaura nts 1 TOTAL 50 35
Business Development and Market Access Support Programme Rural Development Strategy Implementation 21 February 2018 36
Business Development and Market Access Support Programme • The purpose of the business development and market access support programme is to establish the development needs of SMMEs and to deliver mainly non-financial support to enterprises through mentorship, training, market access exposure, coaching and networking opportunities. • Provinces submitted databases of SMMEs to the Department in line with the given selection criteria. Rural Development Strategy Implementation 21 February 2018 37
Business Development and Market Access Support Programme (Cont…) • Qualifying criteria include: • Small and medium sized inbound tourism enterprises operating for at least 6 months and with an annual turnover sized inbound tourism enterprises operating for at not exceeding R 45 million; • Formally registered enterprises in terms of the Companies Act, Co-operative Act and the Trust Property Control Act; • Majority South African and privately owned; • 50% or more black ownership; • Tax compliant in accordance with the regulations of the South African Revenue Service; • Adequately insured; • Accommodation establishments should be graded by TGCSA and • Compliance with other statutory requirements such as Transport Operating Licenses, etc. Rural Development Strategy Implementation 21 February 2018 38
Number of SMMEs (Hidden Gems – Market Access)Cont…. . Province No. of of Applications No. Trained Eastern Cape 39 39 2626 11 11 Free State 27 27 2424 9 9 Gauteng Kwa. Zulu Natal Limpopo Mpumalanga North West Northern Cape 60 60 14 14 32 32 37 37 40 40 40 27 27 27 46 13 40 64 3846 10 10 Northern Cape Western Cape 64 41 2938 11 10 Western Cape TOTAL 392 41 284 29 90 11 TOTAL 354 Rural Development Strategy Implementation 21 February 2018 284 Total. Number. Selected 10 6 10 10 13 10 6 10 90 39
Skills Development for Hidden Gems • Registered SMMEs were invited to attend a 5 -day Tourism Operator Training Course hosted in each province. • Topics included: • Statutory requirements; • Tourism channel and services including classifying tourists and • • • developing itineraries; Commission, pricing and costing; Contract and supplier management; Insurance; Customer service and quality assurance; Marketing and networking (including collateral requirements); Sales tracking and impact monitoring (ensuring greater adherence to monitoring and evaluation); Advanced presentation skills; Preparation, attendance and follow-up for exhibitions and other trade marketing platforms; Insights into trade requirements; Rural Development Strategy Implementation 21 February 2018 40
Location of SMMEs on the Enterprise Development and Market Access Support Programme (Cont…. ) Province Eastern Cape Gauteng Free State Town East London Local Buffalo City Port Elizabeth Municipality Nelson Mandela Bay Metro District Buffalo City Municipality Nelson Mandela Umthatha OR Tambo KSD Rosendal Maluti-a-Phofung Local Soweto, Johannesburg City of Johannesburg Vanderbilpark Tembisa Emfuleni Ekurhuleni Tembisa Ekurhuleni Vaal Midvaal Thulamela Local Limpopo Thohoyandou Municipality Vaal Midvaal Klerksdorp City of Matlosana North West Potchefstroom Tlokwe Local Victoria West Pixley-ka-seme Thohoyandou Thulamela Limpopo Loxton Pixley-ka-seme Northern Cape Local Fraserburg Namakwa Cape Town Metro Municipality Oudtshoorn Oudsthoorn Western Cape Plettenberg Bay Bitou Rural Development Strategy Implementation 21 February 2018 Hermanus Overstrand No of businesses No of 17 businesses 5 Soweto, City of Johannesburg Various Rural Towns Various Johannesburg Metropolitan Bloemfontein Mangaung Metro Mangaung Council Phutaditjhaba Maluti-a-Phofung Local Vanderbilpark Emfuleni Gauteng District Municipality Local Municipality 14 14 18 18 Thabo Mofutsanyana 12 Thabo Mofutsanyana Sedibeng 4 District Council Johannesburg Metropolitan Council 15 Sedibeng District Council Ekurhuleni 10 Metropolitan Ekurhuleni Metropolitan Council Sedibeng District Council 4 10 Vhembe District Municipality 25 Sedibeng Kenneth Kaunda District Council Kenneth Kaunda Ubuntu Vhembe District Ubuntu Municipality Karoo Hoogland Cape Town Metro Eden Overberg 2 25 14 2 4 14 11 6 3 32 6 641 8
Types of businesses supported per province (Business Development and Market Access Support) Prov. total SMME Accommodation Guest B&B House Lodge Hotel Travel services Backpackers Tour operator Arts & craft/ attraction Events Restaurants Bee (Y/n ) Tour guides Travel Agent Arts & craft Black owned FS 50 8 1 5 0 0 10 7 0 15 4 Y 46 NW 18 6 3 1 1 0 2 1 1 3 0 Y 13 EC 55 25 9 2 1 4 2 1 1 4 6 Y 42 NC 47 9 0 0 1 2 0 6 29 Y 23 LP 25 3 4 10 2 1 2 0 1 Y 25 GP 30 8 5 0 0 0 14 0 0 1 2 Y 29 KZN 30 6 7 5 0 0 6 0 0 1 5 Y 30 MP 45 21 1 9 0 0 12 0 0 Y 45 WC 48 8 4 2 2 1 9 8 2 6 3 Y 19 Rural Development Strategy Implementation 21 February 2018 42
Summary of SMME support needs Intervention required Description of support required by SMMEs Marketing support Marketing - intelligence/segmentation/access/social media/ action plan – most suitable actions Assistance with Business Profile/marketing materials Networking skills and packaging products to increase Business linkages Business coaching Dealing with trade Face-to-Face mentoring/coaching on business basics such as costing of products, HR, goal setting Preparing for Exhibitions/ Deal making Service excellence Personal development Staff training i. e. customer care, sales Presentation skills – to sell your ideas with confidence Rural Development Strategy Implementation 21 February 2018 43
Summary of SMME support needs (Cont…) Intervention required Description of support required by SMMEs Training in finance and assistance with software Financial management skills tools for effective management skills Legal compliance Legislation/accreditation/grading/compliance Financial assistance Exposure to role players who can facilitate access to funding in the tourism industry (begin dalk met wat ‘n “bankable buss plan” is? ) Access to trade Information technology skills for business development Exposure to Provincial/National role players in the Tourism Industry for market access – invite role-players as speakers Exposure to computer programmes that can assist you’re an establishment i. e. e-diaries, Exposure to computer programmes that can assist booking systems an establishment i. e. e-diaries, booking systems Rural Development Strategy Implementation 21 February 2018 44
Enterprise Development and B-BBEE Portals In advancing the reduction of the information gap and to development a reliable and credible database for tourism SMMEs in South Africa, the department has merged two online information portals which will provide the following services to SMMEs: - • business related news and information on tourism, • enable SMMEs to register their businesses on a national database, • offer a platform for large and small enterprises to do business through a match making tool and • facilitate enterprise quality assessment and improvement. Rural Development Strategy Implementation 21 February 2018 45
Enterprise Development Awareness Campaign • The purpose of the campaign is to increase awareness of various business support products and instruments offered by the various agencies amongst marginalised communities. • It will be a nationwide awareness campaign in conjunction with relevant Provincial Departments and their agencies, national and regional development finance institutions. • Consultations with Provinces and DFIs has since taken place and plans close to finalisation • The roll out will be popularised through aggressive community based media campaigns via community radio stations, print media and social media activations. • The campaign started in November 2017 Rural Development Strategy Implementation 21 February 2018 46
Tourism Incentive Programme Rural Development Strategy Implementation 21 February 2018 47
Tourism Incentive Programme Solar PV projects: • A substantial amount of preparatory work was required in the first year (2015/16) of this project. This included final site selection, appointment of technical advisors, determining the specific energy requirements of each site, identifying appropriate solution options for each site and developing technical specifications. This informed bid documentation that were used to procure the services of contractors to deliver turnkey solutions for each site. • From the above process the following pilot sites were selected as part of the project: • Robben Island Museum (RIM), off-shore Cape Town, Western Cape; • Karoo Desert National Botanical Garden (SANBI), Worcester, Western Cape; • Free State National Botanical Garden (SANBI), Bloemfontein, Free State; • Hantam National Botanical Garden (SANBI), Niewoudtville, Northern Cape; • Skukuza Rest Camp, Kruger National Park (SANParks), Mpumalanga; • Lower Sabie Rest Camp, Kruger National Park (SANParks), Mpumalanga; • Tshokwane Picnic Site, Kruger National Park (SANParks), Mpumalanga; • Nkuhlu Picnic Site, Kruger National Park (SANParks), Mpumalanga; Rural Development Strategy Implementation 21 February 2018 48
Tourism Incentive Programme Solar PV projects (cont…) • The department appointed one technical advisor for the project at RIM and the three SANBI sites and another for the four SANParks sites. Following the development of technical specifications for the projects at the respective sites and a formal procurement process, EPC (engineering, procurement and construction) contractors were appointed to provide turn-key solutions for the respective sites. Current project status The current status of project implementation at the respective sites is highlighted below: • Robben Island site: The agreed solution was a 666. 4 k. Wp solar PV mini-grid system that would significantly reduce the island’s reliance on the existing diesel generating system. • The integrated system would prioritise solar PV energy generation. It is supported by a 828 k. Wh battery storage to provide the island with energy at night and or on cloudy days energy generation with diesel will be used as back-up should batteries run low. • The total contract price for the solar PV installation at the RIM site was R 25 million. The project has been successfully completed and was formally launched by Minister Tokozile Xasa on 19 October 2017. Rural Development Strategy Implementation 21 February 2018 49
Tourism Incentive Programme Solar PV projects (cont…) • SANBI sites: One EPC contractor was appointed for construction at all three SANBI sites The total and combined contract price for the solar PV installations at all three sites amounts to just below R 9. 5 million. The following solutions have been implemented at the respective sites: • Karoo Desert National Botanical Garden in Worcester (Western Cape): a 50 k. Wp solar PV system connected to the municipal grid to ensure stability and allow feed-in of excess electricity resulting in substantial cost savings for SANBI. The system provides for the entire botanical garden’s daytime energy load. • Hantam National Botanical Garden in Nieuwoudtville (Northern Cape): a 25 k. Wp off-grid solution with a small back-up battery pack. The system provides the entire botanical garden’s energy load and there has not been any need to reconnect to ESKOM supply. • Free State National Botanical Garden in Bloemfontein (Free State): a 50 k. Wp solar PV system connected to the municipal grid to ensure stability and allow feed-in of excess electricity resulting in substantial cost savings for SANBI. The system provides for the entire botanical garden’s daytime energy load. Rural Development Strategy Implementation 21 February 2018 50
Tourism Incentive Programme Solar PV projects (cont…) SANParks grid-tied sites: (Skukuza and Lower Sabie) • One EPC contractor was appointed for construction at both grid-tied sites at a combined cost of approximately R 36 million. After some delays in contract negotiations construction commenced at the Lower Sabie site. There were however significant and unanticipated further delays in finalising the design solution for the Skukuza site as it emerged that trees on the site could no longer be removed since the trees were protected species on the Red-data list. • The solar PV installation at Skukuza will be a 823 k. Wp grid-tied system, while the Lower Sabie is a 542 k. Wp system. Construction at the Skukuza site will commence once the final system and layout design has been approved. Construction at the Lower Sabie site has been completed with a Provisional Acceptance Certificate to be issued pending finalisation of testing. Project completion is anticipated in April 2018. Rural Development Strategy Implementation 21 February 2018 51
Tourism Incentive Programme Solar PV projects (cont…) SANParks off-grid sites: (Nkuhlu and Thokwane Picnic Sites) • One EPC contractor was appointed for construction at both off-grid sites at a combined cost of R 28. 5 million. • Similar to the grid-tied sites, protracted contract negotiations delayed commencement of construction. Construction is however well underway and nearing completion. • The solar PV installations will include a 130 k. Wp off-grid system with battery back-up at Nkuhlu Picnic Site and a 400 k. Wp off-grid system with battery back-up at the Tshokwane Picnic Site. Project completion at both off-grid sites is anticipated for March 2018. Rural Development Strategy Implementation 21 February 2018 52
Product Development (Destination Development) Rural Development Strategy Implementation 21 February 2018 53
Product Development (Destination Development) 1 SHANGONI GATE • The Department has provided R 25 Million funding for the construction of a new entrance gate at Shangoni. • The gate will provide access to the Kruger National Park from Giyani municipal area and create flexibility for visitors from the neighbouring communities in the region to visit the park. • The project will alleviate poverty in the neighbouring communities, which will create temporary jobs during the construction of the entrance gate, access roads and tourism infrastructure. • It will also create permanent jobs through the new tourism facilities inside and outside the Park as well as the secondary business opportunities that support the tourism facilities and tourists visiting the area Rural Development Strategy Implementation 21 February 2018 54
Product Development (Destination Development) 1. SHANGONI GATE (cont…) • The Shangoni Entrance Gate and tourism infrastructure includes, the construction of new access Road from western boundary fence across the Shingwedzi River to the existing tar road (h 1 -6) between Shingwedzi and Mopani Rest Camp, an Environmental Education Facility, a Reception area and toilet facilities. • A picnic site along the new route to allow visitors to exit their vehicles and enjoy refreshments, a rustic camping site as well as a tented camp to provide overnight facilities for visitors to the area are also planned. • To date, Record of Decision(Ro. D) has been issued, three appeals were received during the appeals period and awaiting feedback from DEA on the EIA Rural Development Strategy Implementation 21 February 2018 55
Product Development (Destination Development) 2. PHALABORWA WILD ACTIVITY HUB • The department has provided R 25 million funding for the development and enhancement of the Phalaborwa Gate through the development of the Wild Activity Hub. • This includes tourism infrastructure such as an entrance gate, ablution facilities, Information Centre, kiosk, restaurant, a rhino orphanage, bird viewing, walkways, backpackers, and a cool down area, Braai and waiting and play areas. • The project will enhance the Phalaborwa section of the Kruger National Park as a tourism destination and will also create employment and entrepreneurial opportunities. • To date, all public participation consultations have been conducted and inputs received necessitated changes which are currently awaiting approval from DEA. Rural Development Strategy Implementation 21 February 2018 56
Product Development (Destination Development) 3. TSITSIKAMMA BIG TREE GATEWAY PROJECT • The department has provided R 15 840 000 funding for the enhancement of the Garden Route National Park through the development of the Tsitsikamma Big Tree Gateway which includes tourism infrastructure such as entrance gate, picnic area, coffee shop, parking area, activity centre, classroom, office block, and ablution facilities. • The project will benefit local communities through employment and business opportunities on aspects of the project as coffee shop and curio shop. • Labour force during construction is also sourced from the local communities. The nearby communities of Kurland/Craggs, Covie, Coldstream, Storms River, and Thornham are earmarked for beneficiation in this regard. • To date, the installation of bulk service infrastructure has been completed. Rural Development Strategy Implementation 21 February 2018 57
Universal Accessibility The department conducted an audit of universal accessibility in four provincial parks, namely: 1. Blyde River Canyon Tourism Sites in Mpumalanga; 2. Hilltop Rest Camp at Hluhluwe Game Reserve in KZN; 3. Gariep Dam Nature Reserve in Free State; and 4. Dwesa Nature Reserve in Eastern Cape. The department will be implementing the recommendations of the audit as a pilot in the next financial year. Rural Development Strategy Implementation 21 February 2018 58
THANK YOU Rural Development Strategy Implementation 21 February 2018 59
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