SUSTAINABLE LIVELIHOODS – EPWP AND TOURIST GUIDES

23 AUGUST 2011

Tourism Expanded Public Works Programme

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…introduction

Sustainable Livelihoods (SL) centres on the objectives, scope

and priorities for development from the perspectives of poor

people.

The SL approach requires a commitment to understand the

livelihoods of poor people and how these can be improved.

The fundamental goal and principles of the SL approach is to

reduce poverty

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…background

The Department of Tourism is funding and managing the implementation of

tourism projects through its Expanded Public Works programme namely the

Social Responsibility Programme (SRI).

Allocated EPWP funding from the National Treasury which is exclusively

appropriated for job creation and has conditions and requirements to be

complied with.

Have committed about R700 million over the MTEF period 2011/12 –

2013/14 in funding tourism projects.

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…who are we funding• Poor communities through non-profit representative structures such as

Trusts, Co-operatives or Section 21 companies

• Municipalities

• State owned entities and provincial Tourism Authorities

• Mostly rural areas in all 9 provinces

• Townships

• Protected areas and parks

…and where

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…what do we fund1. Tourist accommodation facilities such lodges, tents, caravan parks, B&B,

resorts

2. Hospitality facilities such as restaurant and small conference centres attached

to the accommodation facilities

3. Visitor Information Centres or Interpretation Centres

4. Cultural villages as well as cultural and heritage routes

5. Hiking trails

6. Youth training and capacity building

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…key funding conditions and requirements

Projects considered for funding are those that:

• unlock domestic tourism opportunities

• are supportive of competitive positioning of South African tourism industry

• able to generate a labour content of between 35% and 60% of the total

project cost

• target rural areas and areas with the highest unemployment rate

• have the potential to be sustainable in the long-term

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…successes and impact

• Sector transformation and economic empowerment through ownership of

assets by communities

• Short and long term job creation

• Unemployment and poverty reduction

• Strong partnerships with the provincial departments, local municipalities

and the private with regards to the youth capacity building projects

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…Challenges

• Majority of the tourism facilities being developed through the SRI

programme are in the rural provinces however there is a lack of

infrastructure such as roads, telecommunications, electricity, water supply

services in these areas, which severely limits the long term sustainability of

the projects and also the participation of rural communities in the tourism

industry,

• Project failures due to lack of management, business capacity and technical

expertise of the community based owning organisations,

• Lack of operational and maintenance funds post government funding,

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…implications for lack of public infrastructure to support tourism development

• Viable tourism projects are not funded because they will not be

sustainable in the long term.

• Increased projects costs as a result of funding the development of

basic infrastructure as part of developing a tourist facility e.g access

road, bulk electricity, water and other services.

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…Interventions from NDT• Tourism is not a stand-alone sector but is inherently linked to other

economic sectors

• Infrastructure is fundamental and supports the competitiveness of the

tourism industry as well as provides the physical linkage between demand

and supply

• The NDT has committed to working closely with the provincial departments,

local municipalities and SALGA in ensuring the long-term sustainability of

the projects; and to adopt an integrated approach to infrastructure planning

and delivery actively involving the tourism sector

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…..Progress: EPWP tourism infrastructure projects

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Number of projects Budget (Million)

Funds available with NDT as at Jan 2011

EC 53 R 626,651,880 R 330,884,440FS 22 R 180,648,597 R 50,516,595GP 3 R 50,550,000 R 39,874,485KZN 13 R 162,750,000 R 116,183,065LP 18 R 214,310,000 R 120,873,674MP 8 R 88,196,961 R 25,073,230NC 5 R 40,850,000 R 35,116,628NW 9 R 50,775,000 R 38,181,028WC 9 R 56,801,434 R 19,402,239TOTAL 140 R 1,471,533,872 R 776,105,384

…..Progress: EPWP tourism infrastructure projects

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…..Progress: EPWP tourism youth projects

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Number of young people Budget

EC 25 R 1,000,000

FS 25 R 1,000,000GP 50 R 4,000,000KZN 750 R 28,000,000LP 25 R 1,000,000MP 50 R 1,000,000NC 10 R 400,000NW 15 R 600,000WC 75 R 2,000,000Chefs 800 R 25,000,000Hospitality Youth Initiative 800 R 22,000,000Total 2,625 R 86,000,000

Example of a few success stories

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Hector Pieterson Memorial Square in SowetoFunded for R16 million in 2002

During construction

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Currently receives about 25 000 visitors annually

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Funded 8 conventional flats and 2 rondavels built from stones taken from the Lilani River giving them a lovely indigenous look and feel. All flats and one of the rondavels can accommodate 4 people comfortably. The other rondavel is double storey and sleeps 9.

Lilani Hotsprings in KZN

Officially opened in 2002. The springs have been used by the local community for many, many years and they believe that the waters have healing properties for many ailments

Holo Holo Hlahatsi – Senqu municipality in the Eastern Cape

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The Holo-Hlahatsi Tourism project facilities is located near the border Eastern Cape and Free State and Lesotho and situated near to the Orange River, and is adjacent to Tiffendell, the only ski resort in South Africa. It consists of two boats, conference facilities, braai areas, four chalets, four rondavels. The department funded the project for R3,8 million. The Senqu Local Municipal (the municipality) is in the process of securing a private developer and has added an amount estimated at R5 000 000-00 five million rand to ensure sustainability of the project.

Thank you

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