M van Schalkwyk: National 2010 FIFA World Cup Tournament Accommodation
Workshop

I am excited to be convening the first national 2010 Federation
International Football Association (FIFA) World Cup Tournament Accommodation
workshop, which is a milestone in our preparations for an event that is going
to provide a major boost to our economy. This workshop is an excellent first
step towards ensuring that the benefits of the World Cup are felt by all
sectors of the business community from multinational companies to family
businesses. It is an excellent example of government working hand in hand with
the tourism industry and broader stakeholders to make sure that our planning is
aligned and targeted towards a common goal – an African World Cup that we can
all be proud of.

We anticipate that 3,5 million people will be involved in the upcoming
tournament – this includes spectators, officials, sponsors and of course, the
players themselves. An estimated 445 000 of the total number of participants
will be foreigners and the balance will be South Africans who are expected to
travel extensively within the country during the tournament.

According to the estimates in the 2010 tourism organising plan, the number
of beds required per host city per match is as follows:

Bloemfontein: 19 900
Cape Town: 21 900
Durban: 32 900
Nelspruit: 19 900
Polokwane: 19 900
Port Elizabeth: 27 400
Rustenburg: 19 900
Gauteng: 76 800 - 109 700 (depending on the location of matches)

These estimates may change as the match schedules are finalised, but they
provide a basis from which we may begin planning. In this regard, I would like
to congratulate MATCH for the impressive progress that they have made in
contracting hotel rooms in preparation for 2010. To date they have contracted
almost 19 000 rooms in South Africa. Beyond our borders, MATCH has contracted
157 hotel rooms in Botswana and 329 rooms in Swaziland. This is a clear
indication of the depth of our commitment to ensuring that the rest of the
continent sees clear gains from the first African World Cup.

In previous tournaments, only hotels were contracted to accommodate people.
However, I am proud to announce that we are delivering on our promise to ensure
that participants in the 2010 World Cup will be treated to a uniquely African
experience. For the first time ever, non-hotel accommodation such as national
park accommodation, lodges, guesthouses, and bed and breakfasts will also be
contracted. In order to access this opportunity, establishments will have to
obtain a grading rating from the Tourism Grading Council.

To facilitate this, the Tourism Enterprise Programme (TEP) a partnership
between the Business Trust and DEAT will partially subsidise the cost of
grading for the first two years for small, medium and micro enterprises
(SMMEs). I would also like to encourage SMMEs to take advantage of TEP's
tourism awareness training. Tourism Enterprise Programme (TEP) also offers
human resource management, financial management and general business management
training to SMMEs.

This will assist them to provide the best possible service to their clients
and ensure that the benefits to their businesses last well beyond the World
Cup. As a department, we are investing over R170 million in the TEP over the
next three years. This is an exponential increase on our prior contributions to
TEP, and demonstrates our commitment to making these processes work for small
businesses in our sector.

I have always believed that it is important to boost the number of graded
accommodation establishments in South Africa, as this provides an incentive for
improving and maintaining high service standards. I am very pleased to be
witnessing the signing of a memorandum of understanding later this morning,
which will consolidate co-operation between MATCH and the Tourism Grading
Council.

This partnership will result in substantial legacy benefits for South Africa
– in other words, benefits that outlast the World Cup Tournament. However, in
order to meet the initial goal of providing World Cup visitors with quality
assured accommodation, we will need to plan well in advance. In this regard, I
would encourage property owners to do thorough research on sustainability
beyond 2010, before undertaking major investments in anticipation of the
event.

To assist in the planning process a series of workshops will be held,
starting two weeks from now, explaining the MATCH contracts. These workshops
will be held in each of the provinces to ensure that hotel and non-hotel
accommodation establishments throughout the country are covered. The dates for
these road shows are as follows:

Bloemfontein: 27 October (including Free State and Northern Cape)
Durban: 30 October - 1 November
Gauteng: 2 November
Rustenburg: 3 November
Mbombela: 6 November
Polokwane: 7 November
Western Cape: 8 - 9 November
Port Elizabeth: 10 November

SMMES will have the opportunity to obtain the contracts and actually sign
them at the workshops. Accommodation contracted by MATCH will be marketed
globally via the MATCH brochure and the http://www.fifa.com website. The coverage of
provincial workshops will include satellite accommodation areas. This is a
strategic move that will achieve the dual objectives of spreading tourism
benefits beyond cities where matches are taking place and of providing
spectators with an even wider range of accommodation options.

To this end, MATCH is aggressively pursuing their target of 55 000 rooms by
2010. I am confident that by working closely with our department, the tourism
industry and other stakeholders, they will achieve or even exceed this target.
The challenge is for us to maintain the momentum of this workshop and play our
part in turning the dreams of 2010 into a reality that enriches South Africa
and the continent.

Enquiries:
Riaan Aucamp
Cell: 083 778 9923

Issued by: Department of Environmental Affairs and Tourism
12 October 2006