PORTFOLIO COMMITTEE BRIEFING ON

STRATEGIC OBJECTIVES AND 2010 FIFA WORLD CUP READINESS

National Department of Tourism18 August 2009

Overview of the presentation

• Tourism at a glance (Trends and institutional arrangements)

• Overview of Strategic Objectives, Priorities and Performance Areas

• Rational for choice of the Priorities and Key Performance Areas (KPA’s)

• Brief overview of indicators and Targets (2009/10)• Progress on 2010 Preparation• Lessons from the Confederation Cup and British and Irish

Lions Tour• National Tourism Strategy Development Process• Medium-Term Budget• Monitoring and Evaluation Mechanisms

Tourism Role Players

Quality

Assessments &

accommodation

Quality

Assessments &

accommodation

Transport Transport

Skills & Service Levels

Skills & Service Levels

Marketing &

Branding

Marketing &

Branding

Product and

SMME

Product and

SMME

Safety Safety

Incentives

and Investment

Incentives

and Investment

2. Tourism Enterprise Partnership & NDT

3. Safety and Security, Department of Health, Department of Transport

1. South African Tourism, Provinces and Industry

8. Tourism Grading Council, Industry, Register of Guides (NDT and provinces)

5. Theta, NDT, Provinces & Industry

6. Department of Transport (land and air)

TransformationTransformation4. TECSA and NDT

7. The dti

Strategy Driven and coordinated

by NDT

Establishment of the National Department of Tourism (NDT)

• Presidential proclamation (strengthening tourism)

• Completed resource split of DEAT

• Draft Sector strategy in place

• Discussion document on legislation development in place

• Purpose, Roles, Functions and draft structure in place

South Africa continues to outperform global tourism growth. Global international arrivals grew by 1.3% in 2008 while arrivals to South Africa grew by 5.5%

Note: UNWTO estimates incorporate provisional data for some regions

Source: Statssa Tourism & Migration release December 2008, SAT analysis; UNWTO World Tourism Barometer, Jan 2009

8.3% 7.9%

10.2%

4.2%

13.4%

4.7%6.1%

5.5%4.6%

1.6%0.1%

11.3%

3.6%

1.3%

0%

5%

10%

15%

20%

South Africa

Africa Asia and the Pacific

Europe Middle East Americas World

07 vs 06

08 vs 07

Year-on-Year Change in Foreign Arrivals to each region%

Ch

an

ge

2007Arrivals (Millions) 9 44.2 184.9 480.1 46.4 142.1 898

2008 Arrivals (Millions) 9.6 46.9 188.3 488.5 52.9 147.6 924

*Comments captured above based on opinion of participants interviewed and anecdotal evidence

Source: StatsSA, Tourism & Migration release

Arrivals to South Africa continues its upward climb reaching 9,6 million arrivals in 2008

0

2

4

6

8

10

121

96

6

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

State of Emergency

Foreign Tourist Arrivals to South Africa, 1966-2008

Arr

iva

ls (

Mill

ion

s)

First Democratic Elections

Nelson Mandela released

Sanctions against South

Africa lifted

1970s and 80s – Stagnation

Stagnation drove low investment, focus on narrow white domestic

market and costs

1990-1998 – Growth

Initial period of short-term profit-taking followed by period of

investment growth and entry of foreign players

1998-2004 – Cyclicality Global events, currency volatility

drove uncertainty and short-term strategy by firms

Investment rates remain weak overall

Sanctions Era

9,6 million arrivals in 2008

Rugby

World Cup9/11

Market share• Tourism contribution in 2008 8,4% (R178,6bilion GDP, number of

jobs 1 014 000) • Estimate Global decline by 8% to April 2009• UN Would Tourism Org (UNWTO) projects a further 5 – 6 % decline

globally• 2.5% decline in arrival in the 1st 3 months• Events driven increase/growth in the 2nd quarter (Confed Cup, Indian

Premier League and Lions Cup)• Land Market still the most resilient• Spend per tourist has not been affected (air travelers are those less

affected by economic crisis)• Distribution continues to be a challenge - Business Tourism (main

driver behind the decline) and land market driven by shopping experience

• Challenges include – economic crisis, health and crime

Transformation• The main players in the industry are transformed• Sector codes acquired legal status in the 1st quarter of

2009• Matching facility in place • The industry is dominated by businesses with turnover of

less than R5m (mainly family businesses)• Challenges regarding access to finance for deals• 1st compliance report due end of the year• Challenges with multiplicity of the legislative framework

for government procurement• High turnover rate of black managers due to demand• Limited investment in skills development

Enterprise Development

1st quarter:• Over 342 SMMEs (246 of which are HDE)

assisted to a tune of R83,992,525 worth of transactions

• 8 380 Non hotel rooms signed for inclusion in accommodation inventory for World Cup™

• 321 Emerging tour operators trained• Heritage clusters developed in four Host Cities,

namely Cape Town, Durban, Nelspruit and Soweto

Enterprise DevelopmentFor 2008/9 financial year alone: • Increase in turnover of R568 million generated for enterprises supported

tthrough TEP• 9 879 Person years of work created on • 1 436 Enterprises assisted through the Business Development Fund, • of which 66% were historically disadvantaged• 944 Tourism small businesses trained on Business Skills• 1 222 Tourism small businesses trained on SA Host• 3 068 Tourism small businesses trained on tourism toolkits• 60 Tourism small businesses mentored• 50 three-year growth strategies developed for small businesses with • a turnover of more than R1million and operating for longer than 5 • years• 4 Tourism clusters developed• 285 Craft sales generated• 3 053 Non-hotel rooms signed up for 2010

Skills development• Tourism Career Fair (hosted 15 000 learners in 2008/9 – expecting

20 000 in 2009/10)• 4030 Ambassador trained• Excellence programme in place• 1657 tourism SMMEs have been trained in tourism related business

skills. • 6 graduates where put on special hotel management training with a

hotel group in Canada. • 65 tourist guides across provinces received foreign language

training in Spanish, Portuguese, French and German all of which are languages spoken in soccer loving countries.

• Finally, an agreement has been struck with Spain Embassy for training of 40 tourist guide in September 2009.

Quality Assurance and Removal of blockages

• 610 new properties graded in the 1st quarter• 1 242 properties renewed their grading• There is a number requests for late renewals (within

policy provision)• Universal access still a challenge (to be addressed in the

new strategy)• Need to strengthen quality assurance beyond just

accommodation grading• Reduction of visa turn around times – Nigeria, China etc• Rollout of the airlift strategy• Responsible Tourism Guidelines for industry in place

Broader Medium-Term Strategic Objectives strengthening the tourism sector

• Establish a National Vision and Strategy for the Tourism Sector

• Establish a National Legal Framework for the Tourism Sector

• Establishment of a National Department of Tourism• Grow and sustain the market share (domestic and

International)• Develop and Transform the Tourism Sector • Create Jobs and Alleviate Poverty (to split from the

Environment Sector EPWP)• Promote corporate and cooperative good governance

14

Rational for 2009/10 Priorities KPA’sMTSF PRIORITY DEPARTMENTAL PRIORITIES

Speed up growth and transformation of the economy to create decent work and sustainable livelihoods

• Strengthening and growing Tourism• Sector transformation• SMME development• Sustainable Job creation• Sustainable GDP Growth• 2010 FIFA World CupTM

Massive programme to build social and economic infrastructure

• Tourism Product Development• 2010 FIFA World CupTM

Rural development • Rural, Cultural and Heritage Tourism development

• Promote geographic spread i.t.o visited Provinces

15

Rational for 2009/10 Priorities and KPA’s

MTSF PRIORITY DEPARTMENTAL PRIORITY

The fight against crime and corruption

• Tourism safety awareness and victim support

Cohesive and sustainable communities

• Community development through implementation of poverty alleviation projects

• Promote domestic tourism

Create a better Africa and a better world

• NEPAD Tourism Programme rollout

Education • Tourism Human Resources development Programme

Key Priorities and KPA’s (Mandate related)

• Development of the National Tourism Strategy• Review the National Tourism Legislation• Ensure South Africa's (Tourism) readiness for

the 2010 FIFA World CupTM

• Promote Tourism Product Development (Including product diversification – sports, medical, events, cultural, business tourism etc)

• Sustainably grow the sector• Sustainable Job Creation• Tourism Sector Transformation

Key Priorities and KPA’s (Mandate Related)• Implementation of the Social Reasonability Programme

linked to EPWP (Job creation, skills and infrastructure development)

• Ensure adequate and relevant skills availability (HRD strategy implementation)

• Quality assurance for tourism products and services (accommodation grading and system review)

• Promote Responsible Tourism (Good corporate citizenship by Industry – includes Universal Access Principles)

• Marketing South Africa as an international destination of choice (Growing the GDP, Job creation, tourist spend, geographic spread and seasonality)

• Promote domestic tourism

Key Priorities and KPA’s (Governance Related)

• Enable Parliamentary oversight• Strengthen Tourism Cooperative Governance (improve

intergovernmental Cooperation and Coordination)• Ensure quality stakeholder engagement• Ensure financial resourcing of the sector strategy • Ensure availability of adequate human capital –

(government capacity)• Facilitate risk management (including better

understanding of sector vulnerabilities)

Key Priorities and KPA’s (Governance Related)

• Facilitate affirmative procurement (use of government procurement lever to promote transformation)

• Improved knowledge and information management (including access to quality and timely sector information)

• To be a transformed employer of choice• Ensure effective entity oversight• Maintain high standards of accountability and

responsibility (achieve unqualified audits)

2009/10 TargetsSkills availability in the tourism

sector.

•KPI Target 2009/10

% Implementation of Tourism HRD Strategy 50%

% Implementation of Tourism Service Excellence Strategy

50%

Number of existing tourist guides up-skilled and new entrants training

160

Number of training and placement opportunities created internationally and nationally.

150

KPI Target 2009/10

Number of accommodation establishments graded

1632 new properties to be graded

6007 properties to renew their grading

% of public sector reporting on procurement from graded establishments

45% of national public sector departments

National guidelines for mandatory registration for tourism businesses in place

Research international and national guidelines for mandatory registration of tourism businesses

Structural arrangements for tourism quality assurance for South Africa Reviewed.

Review legislation and make recommendations to create a tourism quality assurance agency for SA

2009/10 Targets - Quality of Tourism products and services

KPI Target 2009/10

Awareness material on the importance of energy efficiency for the industry published

Brochure containing tips for the industry to be energy efficient published

Frequency of Imvelo awards on responsible tourism hosted in partnership with FEDHASA

Annual

% implementation of the recommendations for the minimum standards for responsible tourism

Minimum standards for responsible tourism in place with buy-in from the industry

2009/10 Targets Promote Responsible Tourism

KPI Target 2009/10

Number of proposals developed per province 2

Number of 2nd economy establishments per province supported

2

Report on the feasibility study for Cruise Liner tourism

Undertake feasibility study of cruise liner tourism

Development of new product Development of a framework for medical Tourism

Partnership to host investment conferences for product development

Partner with the TBCSA to host the Hospitality Investment Conference for Africa (HICA)

2009/10 Targets - Promote the development of product in the tourism sector

KPI Target 2009/10

% implementation of 2010 tourism plan enterprises 50% (revised to 90%)

Number of Tourism Ambassador recruited and trained 500

2009/10 Targets – 2010 FIFA World Cup

Transactions Facilitated Annual Target

Value of Transactions R450,000,000

Person Years of Work 6,000Enterprises Assisted 1,600

HDE Enterprises Assisted 1,350

New SMMEs registered 1 000

Small business diagnostics completed 1 000

Tourism Small Businesses Trained Annual Target

SA Host 1 165Toolkits 2 302Business Skills 1 187

Mentorship 80

Marketing - 2009/10 Targets

2007 Actual 2008 Estimate

ARRIVALS

Actual 9,090,881 9,481,762

Best case scenario 10,359,097 9.3% 11,021,005 12.2% 11,059,538 6.5%

All things being equal 9,824,858 3.6% 10,384,337 5.7% 10,433,526 0.5%

Worst case scenario 8,870,816 -6.4% 9,478,613 -3.5% 9,494,509 -8.6%

SPEND2

Total Spend R 7,000 R 9,300

Land markets R 5,800 R 6,500

Air markets R 10,200 R 13,800

LENGTH OF STAY3

Land markets 2

Air markets 6

SEASONALITY4

Land markets 1.69% 1.18%

Air markets 2.30% 2.50%

DISTRIBUTION5

Land markets 1.37 1.24

Air markets 2.17 1.82

TRANSFORMATION6

First measures according to the BEE scorecard

As per Tourism scorecard

R 7,300

R 15,500

2.14%

1.01%1.06%

2.26%

Up by one night

10% modal shift

Up by one night

10% modal shift

As per Tourism scorecard As per Tourism scorecard As per Tourism scorecard

1.91

1.30 1.33

1.96

Up by one night

10% modal shift

1.12%

2.38%

1.27

1.87

2009 Target revised1 2010 Target 2011 Projection

R 9,900

R 6,900

R 14,600

R 11,100

R 7,700

R 16,400

R 10,500

2010 Tourism Organizing Plan Focus Areas

Create a national content management platform

Create interface to enable transaction booking

Research WC demand to better understand profile, perceptions and expectations

Scale-up SAT call-centre Create a 2010 national tourism volunteer

program Identify and utilise opportunities to

capture information about 2010 arrivals Develop a robust database of available

products

Engage with key stakeholders in SA and neighbouring countries to package products for 2010 and to manage displacement

Deliver the brand to convert arrivals to brand ambassadors

Identify 2010-related opportunities to brand South Africa as a world-class tourism destination

Manage displacement Increase the number of graded establishments Identify existing and alternative accommodation

for short-term spikes in demand

Ensure sufficient tourism-friendly public transportation to tourism focal points

Ensure completion & implementation of a national tourism safety plan

Address poor service levels and skills shortages at key consumer touch points

Coordinate event planning to maximise tourism value from the event

Coordinate development and upgrading of attractions

SAT / NDT

AccommodationAccommodation

Transport & Safety

Transport & Safety

Skills & Service Levels

Skills & Service Levels

Marketing &

Branding

Marketing &

Branding

InformationInformation

Events &AttractionsEvents &

Attractions

1.1.

2.2.

3.3.

12.12.

13.13.

14.14.

15.15.

17..17..

16.16.

18.18.

5.5.

6.6.

10.10.

11.11.

9.9.

7.7.

8.8.

4.4.

SATSAT NDTNDT

2010 Preparations ProgressAccommodation 35 352 rooms contracted out of 55000 as required by Match

7997 establishments graded, equaling 116 000 rooms

Skills and Service Levels

Sector skills plan and Tourism HRD Strategy in place

Service Excellence Strategy in place with 250000 front line staff to be trained

Tourism Ambassador Programme in place with 4000 trained for Confederations cup

Information GIS Mapping in place

Tourism 2010 Guide in place

2010 Consumer Portal in place

Marketing and Branding

Global marketing campaign launched at Indaba and will be reach 6 billion viewers

Events and Attractions

Participated in different for a to market 2010

Transport and Safety

Tourism safety and awareness strategy is in place and implemented by 6 of the 9 provinces

Aviation Strategy and Transport Plan in place and taking into consideration tourism issues

2010 Accommodation Availability – June Audit2010 Accommodation Availability – June Audit

Province

TGCSA Graded Stats South African Tourism Stats MATCH Stats

Establishments Rooms

Establishments

Market Share

(Graded Vs total

Product)2010 Host

CityMATCH Rooms

Eastern Cape 937 10,374 1,257 74.5% Port Elizabeth 4,659

Free State 301 3,686 441 68.2% Bloemfontein 1,734

Gauteng 1,006 19,651 1,722 58.4% Johannesburg 8,602

Gauteng 0 0 0   Pretoria 2,494

Kwazulu Natal 1,022 13,894 2,166 47.2% Durban 5,874

Limpopo 355 7,599 336 105.6% Polokwane 1,615

Mpumalanga 450 8,066 687 65.5% Nelspruit 1,563

North West 296 6,299 276 108.0% Rustenburg 2,194

Northern Cape 308 4,239 326

94.4% n/a n/a

Western Cape 2,465 26,205 5,742

42.9% Cape Town 6,617

Grand Total

7,140 100,013 12,953 55.1% 35,352

-This data does not include cancelled and overdue properties

-This data was extracted on the 20th of this month

- These stats do not include SAT reported stats in the accommodation sector for: Resorts, Cultural, Golf Estates, Health & Spa, Romantic & Honeymoon, Spiritual and Unusual - this amounts to 1872 properties

₁ Subject to updates

₂ includes Hotel & Non-Hotel Accommodation (defined as: Timeshare, Apartments, SMME, Team Base Camp and SANParks     

Skills and Service Levels• Sector Skills Development Strategy in place and under

implementation• Tourism Ambassador Programme is in place and is

being implemented. 4030 Ambassadors have been trained for the confederations cup

• Tourism Service Excellence Strategy is in place and is being implemented. 250 000 front line staff will be trained before 2010 World Cup

• Up-skilling of Tour operators and Tourist guides (language training)

• Training of SMME’s

Transport and Safety

1. The National Tourism Safety and Awareness Strategy and its implementation plan is in place. 6 of the nine provinces have adopted the plan.

2. The Department of Transport and Passenger Rail Agency of South Africa have committed 50 semi luxury busses to the LOC. 420 semi luxury busses will be provided to Match. 110 busses will be provided to general spectators.

3. Aviation strategy and implementation plan is in place

Information1. Stakeholder and consumer web portals are in place – still to ensure

integrated information services

2. GIS mapping of graded establishments has been completed. Plan is underway to map all tourist attractions and link them to GIS to enable visitors to move freely

3. Research is undertaken every 6 months. First data projects that 410 000 visitors will come to South Africa

4. 5 new visitor information centres are being developed in host cities. State of completion Polokwane 20%, Bloemfontein 15%, Rustenburg 80%, Nelspruit 80%, Port Elizabeth 100%

5. 2010 travel guide is in place and more than 20 000 guides have been distributed

6. Working towards establishment of a 24/7 tall free number

7. Working towards establishment of fan embassies

Marketing• Global Marketing Partnership reaching over 2 billion people

across the world through broadcasters such as:-– CNN– BBC– Eurosport– News corporation

• Domestic marketing Campaign Encouraging South Africans to be good hosts by doing the following:– Fly the SA Flag– Learn the national anthem– Support Bafana Bafana– Learn the diski dance

• More marketing required for the African Market and other potential world Cup qualifiers

Events and Attractions

• 2010 was promoted in Columbia during the UNWTO commission

• Events were also hosted in Netherlands, France, Cameroon, Poland, London and at RETOSA

• 2010 promotional material will be distributed at ATA in Egypt

• Stadiums developed to serve as tourist attractions. Moses Mabhida stadium will incorporate the Cable Car arch. Green Point stadium will provide the view of the city (part of the legacy programme)

2009 Events

EVENT ACTIVITIESWTM 2009

November

London

• Media event• Experiential exhibition

EVENT ACTIVITIESFinal Draw

December 2009

Cape Town

• Host foreign journalists• Information desk• Promotional AV

EVENT ACTIVITIESSoccerex 2009

November

JHB

• Host sponsors /partners• Tour operator workshop

2010 Events

EVENT ACTIVITIESWorld Cup

June/July

South Africa

•Media hosting• Fan parks activations• Branding opportunities

EVENT ACTIVITIESIndaba 2010

May

Durban

• Soccer Activation• Exhibition stand• Media event

EVENT ACTIVITIESITB 2010

March

Berlin

• Media event• 2010 activation

2010 Coordination

1. The Tourism 2010 Cluster which is co-chaired by The department and SAT is in place and meetings are held on a quarterly basis

2. The Department participates in the 2010 IMC, Host Cities Forum, 2010 Environment Working Group, 2010 Temporary Signage Working group, 2010 working group on public viewing.

3. The department also participates in Presidential Izimbizos on 2010 as well as economic opportunities workshops on 2010

4. Reportback through MINMEC

2010 Challenges

• Structured coordination• Limited budget• Limited focus on human element issues• Limited focus on positioning the event in Africa• Limited marketing due to limited budgets• Lack of marketing targeted at countries that are

likely to qualify• Limited innovation on how to take advantage of

2010 opportunities

Confederations Cup Lessons - Attendance

– 7.5 out of 10 awarded for hosting the event – should be aiming for 10/10

– 584 984 participants – 2% lower than Germany Confederations Cup

• Higher than Korea Japan (34 823)• France (30 731)

– 510 008 tickets sold

Confederations Cup Lessons -Safety and Security

– 6000-8000 personnel deployed per host city– 39 related criminal cases reported

• Most publicized Brazilian and Egyptians room break ins

• 1 accident reported – German Journalist died

Confederations Cup Lessons -Access and Transport

– Special event visa piloted on Egypt– Park and ride shuttle service used for ticket

holders– Special trains arranged during matches– Inter-city transport arranged during matches

• Crowd management not up to scratch

• Signage around stadia not clear

Confederations Cup Lessons - Volunteers

• 3994 volunteers deployed trained in partnership (LOC, DEAT and THETA)– Airports– Stadia– Host City Centre– LOC Offices

• DEAT and relevant provincial officials deployed at host cities for support, monitoring and evaluation of the programme

Confederations Cup Lessons - Volunteers

• Volunteers not trained in clearly defined competencies• Most of them clueless of their role• Recommendations – need for training volunteers in

clearly defined competencies (and develop a host booklet on the following)– A host– 2010 expert– City and country guide– Fairness and security– Transport– Accommodation

Confederations Cup Lessons - Marketing

• Limited marketing in participating countries – Evident in Cairo, where limited awareness on Univisa

to be piloted for 2010.

• An opportunity to promote domestic, regional and and sub-regional tourism

• Identified marketing opportunities for 2010

Confederations Cup Lessons - Information Provision

• Consumer Portal and help line in place but not aggressively marketed

• Tourism Spatial Viewer in place but not aggressively markets

• Limited provision of information on the event at the key gateways to South Africa and to the host cities

• No demarcated information points targeted at people coming to the event

• No information on what to do after 90 minutes of the game – unlike Rugby

Confederations Cup Lessons - Information Provision

• Ensure that consumer portal has relevant information to the visitors in all languages

• Ensure that the call centre is available 24 hrs to provide information on the event in all languages

• Ensure that the above are aggressively marketed• Establish fan embassies or information centres at the entry points to

South Africa and to the Host Cities• Information centres to provide information on the event, about South

Africa, Accommodation, What to do, Places of interest and be manned by competent staff to provide guidance to the visitors

• Information packs to be produced to be given to visitors at entry point for free about the event and about South Africa in all languages

Confederations Cup Lessons - Accommodation

• Accommodation guide not in place

• No sign up for 2009 Confederations Cup

• Some areas have adequate accommodation and some do not

• No system in place to address challenges in some of the areas

• Tourism industry players in Zimbabwe disagree with Match contract

Confederations Cup Lessons - Accommodation

• 2010 accommodation guide to be developed and made available at all information centres and entry point

• Strategies to be put in place to address accommodation challenges in certain areas– Transport linkage to satellite accommodation– Use of temporary structures to accommodate fans– Use of Universities and other available

accommodation to accommodate fans

Confederations Cup Lessons - Other issues

Local character not showcased– Local food not sold in stadia– Initial FIFA ticketing system not condusive for

the South African soccer loving people who do not have access to internet

– International complaints about vuvuzela– Park and ride system not efficient– Capacity of internal airlines to carry luggage

Lessons - British and Irish Lion Tour

• More organised• 30 000 fans• 23 000 fans descended to Durban• 1000 tickets were not sold• Significant spend on accommodation, food, drinks and

travel• Centurion Hotel Waterfront – fully booked for 2 months

due to rugby• Tshwane Guesthouses fully booked• British fan hijacked and mugged• Challenge for domestic flights to carry luggage

National Tourism Strategy … development process• Progress to date:-

– Conducted a review of existing plans and strategies– Developed a draft strategy framework– Minister has had 5 stakeholder road shows– Held 5 departmental stakeholder workshops

• Expert panel was appointed by the Minister– first workshop 6 August 2009 to formulate vision & mission– next workshop scheduled for 1 September 2009

• Draft for public comment released September – with additional workshops in remaining 4 provinces

• Strategy finalised November• Follow-up session to be scheduled with Members to discuss the

outcomes of the road shows and the actual strategy

52

FINANCE

NDT Budget 2009/10 – 2012/13

Overview of the Presentation

• Baseline • Allocations per Programme/Sub-programme• Graphical presentation of MTEF Baseline• Additional request for MTEF period• Monitoring and Evaluation Mechanism

Department of TourismBaseline for 2009/10 and MTEF period

2009/10

R’000

2010/11

R’000

2011/12

R’000

2012/13

R’000

Administration 74 372 83 838 96 018 102 455

Tourism 754 292 758 508 785 709 824 909

Sector services

278 423 309 995 328 827 345 279

Total 1 107 087 1 152 341 1 210 554 1 272 643

BUDGET ALLOCATIONS

96,018 102,455

754,292 758,508785,709

824,909

83,83874,372

309,995328,827

345,279

278,423

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2009/10 2010/11 2011/12 2012/13

RT

HO

US

AN

D

Administration

Tourism

Sector Services

Allocations for the 2009/2010 Financial YearProgramme 1: Administration

Sub-Programmes Allocation R’000

Minister 1 725

Deputy Minister 1 420

Ministry 26 984

Director-General 776

Corporate Affairs 1 066

Information Technology 3 103

Buildings and Admin Support 6 618

Property Management 10 122

Human Resources and Transformation 8 455

Communications 4 996

Legal Services 2 544

Internal Audit 595

Office of the CFO 5 968

Total 74 372

Allocations for the 2009/2010 Financial YearProgramme 2: Tourism

Sub-Programmes Allocation

R’000

Management 5 006

Tourism Industry Promotion 15 839

Tourism Industry Development 20 681

SA Tourism 656 669

Business Trust (Tourism Enterprise Partnership) 52 097

Retosa 2 500

UNWTO 1 500

Total 754 292

Allocations for the 2009/2010 Financial YearProgramme 3: Sector services

Sub-Programmes Allocation

R’000

Management 1 904

Social Responsibility, Policy and Projects 269 812

Planning, Co-ordination and Information 4 259

Business Performance Management 2 448

Total 278 423

Additional requirement

59

2010/2011R’000

2011/2012R’000

2012/2013R’000

MTEF allocation compensation of Employees

77 632 83 756 87 944

Operational expenditure 84 729 96 465 102 838

Transfer payments 989 980 1 030 333 1 081 861

TOTAL 1 152 341 1 210 554 1 272 643

Additional requirement: PHASE 1 TO 3

2010/2011R’000

2011/2012R’000

2012/2013R’000

Compensation of Employees 30 195 44 620 49 562

Operational expenditure 87 067 99 133 105 638

Computer equipment and office furniture

3 999 2 068 736

Office space 2 611 3 730 4 120

Transfer payments 108 200 138 200 131 700

Projects 206 000 215 850 227 121

Additional request 438 072 503 601 518 877

TOTAL BUDGET 1 590 413 1 714 155 1 791 520

• Quarterly reporting internally and to National Treasury• Quarterly informal assessments • Biannual formal assessments• Evaluation of quarterly reports to determine

performance level• Minister’s quarterly performance review meeting• Use of a balanced scorecard approach to overall

performance management (looking at Internal business processes linked to delivery of mandate, Financial state of the organisation, service delivery to clients, Lessons and growth – people, technology etc)

Monitoring and Evaluation mechanisms

61

THANK YOU