Conference Centre ,Johannesburg by Mr Jeff Radebe, MP, Minister of
Transport
27 February 2007
Programme Director Ms Leanne Manas
South African Tourism CEO Moeketsi Mosala
Johannesburg Executive Mayor Amos Masondo
Representatives of the tourism industry
Conference organisers
Distinguished guests
Members of the media
Ladies and gentlemen
It is a great honour for me to address this conference, which is putting
Tourism on a business perspective and gives me the opportunity as Minister of
Transport to highlight the close relationship between Tourism and
Transport.
Tourism contributes significantly in business development, job creation and
investment. My portfolio compels me to ensure a strong link between transport,
business and tourism. These three are inseparable if our economy is to grow
within the much desired six percent per annum in the next couple of years.
According to recent research conducted by the World Travel and Tourism
Council in association with Accenture, the international business tourism
industry is worth approximately US$672 billion and is expected to grow by about
six percent per year. Tourism contributes some R21 billion to the South African
economy every year and sustains nearly 260 000 jobs. It provides more than R6
billion annually to salaries and contributes R4 billion to the central fiscal
in the form of taxes. Annual growth is believed to be between 4 and 5
percent.
Ladies and gentlemen, international tourism arrivals are also sky rocketing
due to South Africa's prominence as a favoured destination. Foreign business
tourism arrivals have increased by 30 percent from 307 000 in 2002 to 398 000
in 2005. It is estimated that 2005 saw some 2,5 million business tourists -
foreign and local - in South Africa. These figures, distinguished guests, are
encouraging but they also shed a warning light for us to gear up in terms of
our transport infrastructure and services.
Because of increased tourist movements, Government will continue to fast
track its plans on improved transport infrastructure and services. As more
international tourists come to South Africa by air, advanced plans are on track
to deal with the influx challenge. Airports Company South Africa (ACSA) has
started on a five-year investment programme in all the major airports in the
country. It has ramped up its capital expenditure commitments to R19,3 billion
from R5,2 billion to meet expected growth in passenger traffic beyond 2010.
ACSA's airports infrastructure plans are aimed at handling 31 million
passengers in the 12 months to March, up from 28,8 million passengers in the
previous year.
Work already underway at OR Tambo International Airport includes additional
duty free space and the Pier One development to handle the new Airbus A380 and
more passengers through air bridges. We have moved considerably in complying
with the International Civil Aviation Organisation (IACO) and the South African
Civil Aviation Authority safety standards so that we minimise the risks
associated with air traffic accidents. The 2010 World Cup event will also bring
a lot of mobility and as such we have taken stern and appropriate measures to
make sure that effective, safe and reliable public transport systems will be in
place.
South Africa's AsgiSA programme requires a lot of support in various areas
of the economy that include effective transport, energy, telecommunication
systems and respective infrastructure development in these areas. Our efforts
to upgrade and build infrastructure before and after the 2010 games will go a
long way and the benefits will be even more evident after the event. As
Government we are determined to ensure that our aeroplanes, trains, buses and
taxis and their relevant infrastructure are sound so that it will be all
systems go come 2010.
Long after the final whistle of the World Cup Soccer Tournament, towns and
industries will be functioning much better and more effectively and sustainable
transport systems will be available and the lives of many people will improve.
The economy will also be thriving. With our projected growth in job creation
and economic growth, it is important that our planning in all sectors of the
economy should be balanced so that when we host the 2010 Soccer World Cup we
have reason to be comfortable. I must say our track record on tourism arrivals
is remarkable and we are expecting a rising trend in this regard. Because we
are hosting the 2010 World Cup an upward trend of visitors to South Africa is
expected, we are therefore working tirelessly in terms of transport services
and infrastructure. The figures that we have are clear indications that our
tourism industry must be supported with effective, safe and reliable transport
systems throughout the country.
A recent South African Tourism report shows that a lot needs to be done to
maximise the potential of our own tourism wealth. South Africans are certainly
travelling with more than 36 million trips recorded in 2005/06 but only 4,5
million of those were for holiday purposes. The report highlights the need for
the industry to continue to focus on growing domestic tourism figures in tandem
with international growth objectives. It also shows that the provinces
extracting the most value from domestic tourism are KwaZulu-Natal, Gauteng and
the Western Cape, who together reap 63 percent of the R21,2 billion, with
Gauteng travellers alone responsible for 39 percent of the revenue generated.
International tourism with 7,3 million tourists is generating 70 percent of the
value in the industry and domestic tourism is already generating a value of 30
percent with 4,5 million holiday trips. By increasing the number of people
travelling for holiday within South Africa, the contribution of tourism to
Gross Domestic Product (GDP) can be maximised in line with the government's
economic growth initiatives. These figures, ladies and gentlemen, can only be
sustained if we invest more on our transport services domestically and
internationally.
Domestic and international tourism has gained more prominence in the South
African Tourism mandate over the past few years and will continue to be an area
of focus along with global marketing of the destination to ensure that the
doors of travel in South Africa are open to all. With the much-anticipated
influx of the 2010 Soccer World Cup visitors, the Department of Transport is
ensuring that the modes of transport that include air, buses, taxis and trains
will be in full operation by 2010. It is of critical importance that all
participants and visitors to the 2010 Soccer World Cup be accommodated in their
movement from hotels to stadiums effectively.
Most South Africans are excited about us hosting the World Cup event. The
2010 FIFA World Cup is a major milestone in our history and marks the beginning
of a major revolution in South Africa's transport system. Our approach for the
2010 World Cup represents a concrete foundation for the transport system beyond
2020. For the first time in history, South Africa will have major investments
across all transport systems passenger rail, taxis, buses, and road networks
and this will inevitably represent a wide-spread development ever seen in our
country.
We have registered significant progress in integrating the Gautrain into the
broader public transport network with the integration plan completed and
approved. The Gautrain is to be established as the main public transport spine,
with new commuter rail enhancement and linkages through intermodal facilities
and feeder systems. My Department is finalising the development of regional
rail plans and business plans in each metropole where Metrorail services
operate.
This will quantify the actual needs for each corridor, while at the same
time giving an indication of the investment requirement and how improvements
will be implemented. Distinguished guests, I must stress that we have begun our
revolution to maximise the existing infrastructure and integrating different
transport modes as well as galvanising maximum support from all South Africans.
We have already commenced our major investments across all areas of transport
systems.
We have allocated R9 billion for the public transport and non-motorised
transport infrastructure for 2010 R5,2 billion for airports infrastructure
upgrading R63 billion for the preservation and development of our road network
throughout the country, R7,7 billion in the recapitalisation of taxis and
mostly importantly R5 billion is being invested in the Bus and Passenger Rail
Systems.
In conclusion, ladies and gentlemen, the importance of this conference
cannot be overemphasised. South Africa is a great tourism destination
internationally. Our economy is one of the best in Africa and we are poised to
grow even further. Our determination to host the 2010 Soccer World Cup is a
clear indication that we are a nation with the tools, commitment and dedication
to move forward and harness our much desired goal for success and eradicate
poverty, create jobs and attract more foreign and direct investment for the
much needed growth.
I thank you
Issued by: Ministry of Transport
27 February 2007
