Mr Jeff Radebe, MP, Minister of Transport, in East London
2 October 2006
The challenges facing the aviation industry highlight the need for all of us
to work together to elevate the role of air transportation in the economy of
Southern Africa and the rest of the continent.
Research suggests that successful tourism destinations have strong reliance
on airlines and increased airline frequencies. Many countries rely on the
aviation sector to transport tourists to various destinations, including remote
locations. The South African tourism industry is no exception to this practice.
It also requires partners in aviation for its sustainable growth moving
forward. The launch of daily flights between Bhisho and Mthatha signifies a
critical milestone in unleashing maximum utility of the aviation infrastructure
within the Eastern Cape Province in achieving strong partnership between
tourism and aviation.
Many among us are also not aware of the impact that aviation has in growing
economies. Let me say that air transport contributes about 2,4 percent of
global Gross Domestic Product (GDP). It has become the primary means of moving
people. Two billion passengers now travel by air. Air transport generates about
470 000 direct and indirect jobs across Africa, contributing over US$ 11,3
billion to African GDP. If we add air transport dependent sectors such as
tourism, then the number of jobs increases to about 3,1 million and the
contribution to African GDP reaches US$55,5 billion.
The contribution of the tourism sector to the South African economy through
air transport has increased substantially growing from approximately one
million tourist arrivals in 1990 to over seven million in 2005. In South
Africa, tourism generates in excess of R48 billion in revenues from foreign
tourists each year and since 2000, has grown at rates averaging between four
percent and six percent per annum. In addition, the tourism sector has grown
its GDP and employment contribution to the economy by supporting 540 000 direct
jobs and 670 000 indirect jobs.
Tourism is, therefore, a significant driver of economic growth and is also
assuming an ever-increasing importance in South Africa. In light of these
developments, our government has identified the tourism sector as one of the
immediate priority sectors within the Accelerated and Shared Growth Initiative
for South Africa (AsgiSA). It is against this background that on 26 July 2006
Cabinet approved a five-year strategy for the regulation of air transport in
support of AsgiSA.
The overall objective of the airlift strategy is to increase aviation's
contribution towards sustainable economic growth and job creation. This
requires the creation and maintenance of an enabling framework within which
both suppliers and consumers of air transport services may exercise reasonable
flexibility and choice.
In particular, the strategy aims at enhancing the prospects of South Africa
as a preferred air travel destination and to synchronise the basis for
bilateral air services negotiations with other national priorities and aims to
improve the regulation of particularly the supply-side of air transport
services. I can just indicate that we already have unlimited capacity
agreements with six African countries.
It is expected that the successful implementation of this strategy will
result in a significant increase in the number of passengers moving through our
airports including Bhisho and Mthatha airports. I must emphasise that safety
and security in the aviation sector is still our top priority and must remain
at the forefront of proactive intelligence work, planning, training and
implementation. We have embraced all International Air Transport Association
(IATA) and International Civil Aviation Organisation (ICAO) initiatives to
enhance security. Three months ago ICAO completed the first voluntary safety
audit in terms of its new programme. I must mention that the ICAO team
confirmed that to a large extent our aviation security is beyond question.
Our work in the aviation sector will have a major impact on our ability to
deliver a superb African 2010 FIFA World Cup. The Airports Company of South
Africa (ACSA) has also committed some R5,2 billion over the next few years for
modernisation and upgrading projects at our major airports. The Air Traffic and
Navigation Services Company (ATNS) has made major strides to improve our
airspace management safety scenarios. Infrastructure investments to assist the
programme include R96 million for the renewal of terrestrial aeronautical
navigation systems, and some R160 million for the replacement of existing older
radar systems in certain areas of South Africa.
There is today strong recognition across Africa that we need greater
co-ordination between and within African governments, airlines, airport
operators and the tourism industry that there needs to be greater investment in
research and development of new technologies to enhance the training, human
resource and intelligence drivers of the aviation sector.
The launch of the Blue Skyway Aviation initiative during Transport Month is
a sign that government is viewing the development of air transportation in a
very serious light. The launch today will ensure that we maximise the economic
potential of both Bhisho and Mthatha airports and drive new life to our rural
airstrips within the province. It is a sign of our commitment as government in
making sure that air transport is an area that we cannot give little or average
attention, but maximum investment.
I thank you!
Issued by: Department of Transport
2 October 2006
