Address by the MEC for Economic Development and Tourism, Mr
Michael Mabuyakhulu, on the occasion of the Chief Executive Officers breakfast
held at the Hilton Hotel, Durban

On behalf of the Government of South Africa and the cabinet of the province of
KwaZulu-Natal, we wish to express our pleasure at being part of this important
breakfast interactive session wherein leading role-players and stakeholders in the tourism sector converge to discuss ways in which this sector can be grown to contribute even more to sustainable economic development.

Programme Director, it is indeed our singular honour, as the province of KwaZulu-Natal, to host this year’s edition of Tourism Indaba and again to get an opportunity to exchange ideas with friends and colleagues from across the globe who are players in the tourism sector.

When we look back at the humble beginnings of this Tourism Trade Fair known as Tourism Indaba, we are amazed by what we have accomplished over the past 32 years of this travel and tourism spectacle. This year’s edition is even more special owing to the fact that two important conferences are being held on the sidelines of the tourism show, the Hotel Investment Conference Africa and the Sea Trade Africa Cruise Forum.

We are grateful for the faith shown by our sister provinces as well as other countries in helping us build Indaba into Africa’s foremost travel and tourism show. We believe that it is time that, as a country, we took a decision to give Indaba its permanent home. It is also clear in our minds that this province of KwaZulu-Natal, the Zulu Kingdom should be the automatic permanent host of this spectacle. This is not based on any warped sentiment but on the concrete evidence before us which shows that our province has grown this spectacle over the past few years.

A decision on making our province the permanent home will also remove any lingering doubts in the minds of exhibitors and stakeholders while, at the same time, it will open space for government and other roleplayers to invest in growing indaba even further. This year we have 13 000 exhibitors and we have no doubt that in the next five years we will crack the 20 000 mark if we settle the issue of the permanent seat of Indaba.

Programme Director, we are just emerging from the worst global economic meltdown of our time. The tourism sector, like all other sectors, was not spared the wrath of the 2009 economic downturn. Tourism, precisely because it is an industry that relies heavily on disposable income, was hard-hit by the belt-tightening that came in the aftermath of the downturn.

However, Programme Director, in the aftermath of the debilitating recession of 2009, international tourism demand is steadily regaining momentum. Recovery in the global tourism industry is faster than initially expected. In 2010, Africa still accounted for only 3.4% of global tourism receipts and 5.2% of tourist arrivals. However, developing countries now represent half of global growth, and six of the 10 most rapidly expanding economies are located in sub-Saharan Africa. Figures published by United Nations World Tourism Organisation (UNWTO) show that international arrivals are projected to rise by four to five percent in 2011 to around 950 million. We are confident that sub- Saharan Africa will enjoy a fair share of this global growth.

Tourism is the world's largest sector, with annual revenues of almost $500 billion. Globally, tourism accounts for roughly 35% of exports of services and over eight percent of exports of goods. Approximately 340 million people are directly and indirectly employed in tourism around the world. In 1950, international foreign tourist arrivals, a key indicator of tourism growth, were an estimated 25 million. By 2004, they had reached 760 million and are predicted to grow to 1.56 billion in 2020.

This clearly is a sector on the rise. The question for us is: “What percentage of this growth will happen in the developing world and how will it contribute to sustainable economic growth particularly in the continent of Africa?” In other words, with the figures looking positive we need to determine for ourselves how much of this growth will happen on our continent and how we aim to benefit from it.

We trust that as indaba progresses, we will be able to respond to these questions for, if we fail to respond adequately, then our tourism sector will stagnate and not reach the potential it promises.

But, back to the story of the downturn and its effects. In the case of South Africa and the greater Southern African Development Community (SADC) countries, we were fortunate because the hosting of the 2010 FIFA Soccer World Cup provided us with a cushion which softened the blow of the downturn. While we suffered, we may not have suffered like the rest of the countries of the world.

While data on actual investment towards the hospitality sector in KwaZulu-Natal and South Africa at large is scarcely available, the hospitality sector benefitted tremendously from the 2010 FIFA Soccer World Cup.

For instance, the number of hotel establishments increased by 55% from 29 in 2004 to 45 in 2010 and the number of hotel rooms also increased by 21% from 4 051 to 4 898. For this, we commend the vision of CEOs and the companies they run for having faith in the ability of their tourism investments to yield results.

As you can attest, your investments were not ill-informed because we hosted the most memorable World Cup that has ever been seen. Attendance at stadia as well as public viewing areas of fan parks was without equal in the history of the World Cup. And, critically, hosting this spectacle enabled us to introduce ourselves to the world. It has been said, Programme Director, that tourist destinations that prosper are those where government creates an enabling environment for them to thrive through, among others, investment in infrastructure and the creation of targeted policies for the tourism sector.

In this regard, we believe that our government has done exceptionally well in striking a balance between creating the relevant policy regime without stifling the creativity of tourism sector role-players. While we must fulfil an imperative to create equality and transform this sector such that it benefits and is open to all of our people, we understand that we are not competitors with those who run tourism businesses. Instead we see ourselves as enablers rather than competitors in this sector.

Likewise, we have invested a lot of resources in uplifting the infrastructure necessary for the development of this sector. The R2 billion King Shaka International Airport which is an anchor project within the R7 billion Dube Trade Port celebrated its first anniversary six days ago and continues to grow from strength to strength.

The positive spin-offs from investment have already begun to show with the imminent announcement of a new, international direct flight run by a world-class airline which will fly directly to Durban. This is over and above the daily Durban-Dubai Emirates flight from King Shaka International Airport. Clearly, we are a province on the rise and, therefore, we are a logical investment destination for tourism investors based on our track record.

Programme director, today also marks a momentous occasion for our province because this morning we will be able, for the first time, to share with the CEOs the new KwaZulu-Natal brand identity. This province is known for a number of inimitable tourist attractions. We have warm weather throughout the year. We boast pristine beaches which, in many instances, are a walk away from internationally-recognised game parks. We also boast a kaleidoscope of cultures. Our heritage is without equal and our tourism infrastructure is amongst the best in the world.

However, we have noticed that in presenting these riches to prospective tourists or investors, we were not always coherent because of the different images that we projected. Scholars in brand identity maintain that an identity is more than a just a logo and a pay-off line but is the embodiment of the vision, aspirations and the beliefs of that particular entity.

We then decided, in order to ensure uniformity and cohesion in terms of our messaging, to adopt a universal brand identity for KwaZulu-Natal which, while it re-affirms that we are part of South Africa, also captures the unique spirit of the province of KwaZulu-Natal. The new brand identity is a symbol with which we should develop affinity for it represents the best that KwaZulu-Natal and South Africa have to offer. To the investor, it represents unparalleled opportunities for growth and development. Ladies and gentlemen, it is my singular honour to present the new identity of KwaZulu-Natal.

I thank you.

Source: KwaZulu-Natal Department of Economic Development