Volume II - The Northern Cape Provincial Spatial Development ...

Volume II - The Northern Cape Provincial Spatial Development ... Volume II - The Northern Cape Provincial Spatial Development ...

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Northern Cape PSDF Volume 2 Office of the Premier & Department of Rural Development & Land Reform December 2011 • In terms of total foreign visitors, 1.3% visited the Northern Cape in 2008, which was a 1.2% decline from 2.5% in 2007. The Northern Cape consequently received the least significant number of foreign tourists. The Northern Cape is a unique part of South Africa that has a lot on offer for the tourist. Tourist destinations abound in the Northern Cape, and attract a large number of local and international visitors. Tourist attractions range from nature and wildlife conservation destinations, natural wonders, historic sites, festivals, cultural sites, stars gazing, adventure tourism, agricultural tourism, ecotourism, game farms, hunting areas, etc. Although the tourism offering is already well developed and there has been considerable investment in infrastructure in recent years, the potential for Northern Cape to capture more of the domestic and international tourism market is immense. According to the 15‐year review of the Northern Cape published in March 2009, tourist numbers into the province have shown a steady rise over the last five years, with the biggest percentage increase occurring in the third quarter of 2006, namely 4.1%. Bed nights sold decreased in more recent times due to the global recession, but the overall picture for tourism in the Northern Cape looks good. The sector’s direct contribution to provincial gross domestic product (PGDP) is about 6%. According to the World Tourism Organisation (UNWTO), tourism is ‘number one in the international services trade’ counting for 40 % of global trade in services and 6 % of total world trade 61 . It is important to emphasise the following aspects of the tourism industry (Ferguson, 2007) 62 : a) The tourism industry directly provides approximately 3 % of the global employment, or 192 million jobs – equivalent to one in every twelve jobs in the formal sector. The International Labour Organisation (ILO) predicts that this share is likely to rise to 251.6 million jobs by 2010, or one in every eleven formal sector jobs. b) Tourism also has an indirect impact beyond employment through tourism‐related goods and services, air travel and global consumption patterns. The relevance of tourism for 61 Over the past six decades, tourism has experienced continued growth and diversification to become one of the largest and fastest growing economic sectors in the world. Tourism has become one the major international trade categories. Today, the export income generated by international tourism ranks fourth after fuels, chemicals and automotive products. For many developing countries, it is one of the main income sources and the number one category, creating much needed employment and opportunities for development. The following key figures illustrate the growth of the global tourism industry: a) From 1950 to 2007, international tourist arrivals grew from 25 million to 903 million (up 6.6% on 2006). b) The overall export income generated by these arrivals (international tourism receipts and passengers transport) grew at a similar pace, outgrowing the world economy, exceeding US$ 1 trillion in 2007, or almost US$ 3 billion a day. c) Between 1995 and 2007 growth averaged over 4% a year, in spite of the stagnation between 2001 and 2003 due to terrorism, SARS and the economic downturn. d) By 2010, international arrivals are expected to reach 1 billion, and 1.6 billion by 2020. e) In 2007, just over half of all international tourist arrivals were motivated by leisure, recreation and holidays (51%) – a total of 458 million. Business travel accounted for some 15% (138 million), and 27% represented travel for other purposes, such as visiting friend and relatives, religious seasons/pilgrimages, health treatment, etc. (240 million). The purpose of visit for the remaining 7% of arrivals was not specified. f) The African continent was one of the best performers in 2007, with a growth of 7% to 44 million arrivals. The region confirmed its good momentum averaging 7% growth a year since 2000. International tourism receipts increased by 8% (in real terms) and reached US$ 28 billion (UNWTO, 2008: Tourism Highlights 2008 – www.unwto.org). 62 Ferguson L 2007: The United Nations World Tourism Organisation (Abstract). New Political Economy. 12(4). 132 Dennis Moss Partnership

Northern Cape PSDF Volume 2 December 2011 global political economy can no longer be ignored by analysts wishing to account for changing global patterns in poverty and inequality. Despite this, with a handful of exceptions, tourism as a significant feature of contemporary global political economy has thus attracted little attention in the field of international political economy. The United Nations World Tourism Organisation is an institution that promotes the spread of the tourism industry across the globe. Its role can be understood in a number of ways: (i) As a campaigning organisation for the tourism industry; (ii) As a donor for tourism development projects – important for the Biosphere Reserve; and (iii) As a primary source of research and statistics on global tourism. According to the World Travel and Tourism Council (2011) 63 that the direct contribution of Travel and Tourism to South Africa’s GDP is expected to be R143.5 billion (5% of the total GDP) in 2011, and is expected to increase by 5% per annum till 2021. Furthermore, the total contribution of Travel and Tourism economy is estimated to have employed 1, 334 000 people or 10.1% of the country’s formal workforce. It is also estimated that in 2011, tourism is to generate 594 000 jobs (4.5% of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). The PGDS states that tourism is one of the key sectors with the capacity to ‘grow, transform and diversify the provincial economy’. According to the PGDS, the vision for tourism is underpinned by a number of broad, essential and specific drivers. The ‘broad drivers’ consider the ‘big picture’ focusing on tourism’s contribution to a larger development purpose and include: • Contributing to overall economic growth in the Northern Cape and South Africa. • Working towards social upliftment and poverty alleviation through facilitating job creation. • Striving for more equitable ownership and participation in tourism through transformation. The essential drivers of the tourism sector in the Northern Cape and relate to aspects such as: a) Increasing visitor numbers, visitors spend and length of stay. b) Facilitating greater private sector investment in tourism product and small enterprise development. c) Facilitating responsible development of tourism that is commercially viable, environmental conscious and culturally sensitive. d) Branding and marketing of the Northern Cape. The Northern Cape has a comparative economic advantage in the form of a defined type of tourism vested in the following: Eco‐tourism opportunities (i) Unique sectoral or nature‐based routes. (ii) National parks, nature reserves and game reserves. (iii) Natural and cultural manifestations. (iv) Festivals and cultural events. F.1.6 SCIENCE AND TECHNOLOGY The Northern Cape holds a significant comparative economic advantage in a number of enterprises in the science and technology sector. These include the following: 63 World Travel and Tourism Council, 2011: South Africa: Travel and Tourism Economic Impact. www.wttc.org Office of the Premier & Department of Rural Development & Land Reform 133 Dennis Moss Partnership

<strong>Northern</strong> <strong>Cape</strong> PSDF<br />

<strong>Volume</strong> 2<br />

Office of the Premier &<br />

Department of Rural <strong>Development</strong> & Land Reform<br />

December 2011<br />

• In terms of total foreign visitors, 1.3% visited the <strong>Northern</strong> <strong>Cape</strong> in 2008, which was a 1.2%<br />

decline from 2.5% in 2007. <strong>The</strong> <strong>Northern</strong> <strong>Cape</strong> consequently received the least significant<br />

number of foreign tourists.<br />

<strong>The</strong> <strong>Northern</strong> <strong>Cape</strong> is a unique part of South Africa that has a lot on offer for the tourist. Tourist<br />

destinations abound in the <strong>Northern</strong> <strong>Cape</strong>, and attract a large number of local and international<br />

visitors. Tourist attractions range from nature and wildlife conservation destinations, natural<br />

wonders, historic sites, festivals, cultural sites, stars gazing, adventure tourism, agricultural<br />

tourism, ecotourism, game farms, hunting areas, etc.<br />

Although the tourism offering is already well developed and there has been considerable<br />

investment in infrastructure in recent years, the potential for <strong>Northern</strong> <strong>Cape</strong> to capture more of<br />

the domestic and international tourism market is immense. According to the 15‐year review of<br />

the <strong>Northern</strong> <strong>Cape</strong> published in March 2009, tourist numbers into the province have shown a<br />

steady rise over the last five years, with the biggest percentage increase occurring in the third<br />

quarter of 2006, namely 4.1%. Bed nights sold decreased in more recent times due to the global<br />

recession, but the overall picture for tourism in the <strong>Northern</strong> <strong>Cape</strong> looks good. <strong>The</strong> sector’s direct<br />

contribution to provincial gross domestic product (PGDP) is about 6%.<br />

According to the World Tourism Organisation (UNWTO), tourism is ‘number one in the<br />

international services trade’ counting for 40 % of global trade in services and 6 % of total world<br />

trade 61 . It is important to emphasise the following aspects of the tourism industry (Ferguson,<br />

2007) 62 :<br />

a) <strong>The</strong> tourism industry directly provides approximately 3 % of the global employment, or 192<br />

million jobs – equivalent to one in every twelve jobs in the formal sector. <strong>The</strong> International<br />

Labour Organisation (ILO) predicts that this share is likely to rise to 251.6 million jobs by<br />

2010, or one in every eleven formal sector jobs.<br />

b) Tourism also has an indirect impact beyond employment through tourism‐related goods<br />

and services, air travel and global consumption patterns. <strong>The</strong> relevance of tourism for<br />

61 Over the past six decades, tourism has experienced continued growth and diversification to become one of the<br />

largest and fastest growing economic sectors in the world. Tourism has become one the major international<br />

trade categories. Today, the export income generated by international tourism ranks fourth after fuels,<br />

chemicals and automotive products. For many developing countries, it is one of the main income sources and<br />

the number one category, creating much needed employment and opportunities for development. <strong>The</strong><br />

following key figures illustrate the growth of the global tourism industry:<br />

a) From 1950 to 2007, international tourist arrivals grew from 25 million to 903 million (up 6.6% on 2006).<br />

b) <strong>The</strong> overall export income generated by these arrivals (international tourism receipts and passengers<br />

transport) grew at a similar pace, outgrowing the world economy, exceeding US$ 1 trillion in 2007, or almost<br />

US$ 3 billion a day.<br />

c) Between 1995 and 2007 growth averaged over 4% a year, in spite of the stagnation between 2001 and 2003<br />

due to terrorism, SARS and the economic downturn.<br />

d) By 2010, international arrivals are expected to reach 1 billion, and 1.6 billion by 2020.<br />

e) In 2007, just over half of all international tourist arrivals were motivated by leisure, recreation and holidays<br />

(51%) – a total of 458 million. Business travel accounted for some 15% (138 million), and 27% represented<br />

travel for other purposes, such as visiting friend and relatives, religious seasons/pilgrimages, health<br />

treatment, etc. (240 million). <strong>The</strong> purpose of visit for the remaining 7% of arrivals was not specified.<br />

f) <strong>The</strong> African continent was one of the best performers in 2007, with a growth of 7% to 44 million arrivals. <strong>The</strong><br />

region confirmed its good momentum averaging 7% growth a year since 2000. International tourism receipts<br />

increased by 8% (in real terms) and reached US$ 28 billion (UNWTO, 2008: Tourism Highlights 2008 –<br />

www.unwto.org).<br />

62 Ferguson L 2007: <strong>The</strong> United Nations World Tourism Organisation (Abstract). New Political Economy. 12(4).<br />

132<br />

Dennis Moss Partnership

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