On behalf of the province of KwaZulu-Natal and the people of this province we wish to welcome all the dignitaries and the stakeholders from the tourism industry who are with us today to witness the launch of what we believe is a significant milestone in our quest the harness the potentia of cruise tourism.
As all of you know, KwaZulu-Natal is one of the provinces in our country which, in its smorgasbord of tourism products, also has 900 kilometres of pristine coastline which we have no doubt that if exploited to its fullest can bring tangible benefits not only to the people of this province but to the country as a whole.
We therefore believe that today’s launch of the cruise tourism report is a gigantic leap in our quest to position our country as one of the biggest players in the growing cruise tourism industry.
Programme director, we meet today barely a week after the release of the gross domestic products figures for the third quarter which have revealed that the economy has grown by 2,6 percent, a development which has shown that the road to full economic recovery in the wake of the economic recession is not going to be easy.
Indeed the International Monetary Fund’s (IMF’s) Regional Outlook Report for Sub Saharan Africa mentions that: “In South Africa, the growth momentum, after three quarters of acceleration, showed signs of tapering off in the second quarter of this year. Despite this, the recovery is expected to be sustained, with output growth of 3–3½ percent projected for 2010/11. In this context, the key for macroeconomic policy is to strike the right balance between supporting the ongoing recovery and strengthening policy buffers, including external reserves.”
The World Travel and Tourism Council also acknowledges that: Travel & tourism activity was hit hard by the global slump, with Travel & tourism economy GDP contracting by 4.8% in 2009. Even so, the sector worldwide still provided over 235 million jobs last year. Travel and tourism's recovery - like that of the world economy - is expected to be a gradual one. After growth of just 0.5 percent in 2010, Travel & tourism.
Economy GDP is likely to grow by 3.2 percent in 2011, with momentum building from the second half of 2010 and into next year. This sends a clear message that all of us in all different sectors of our economy, including tourism, should work hard to crank up the economy of this country. We also meet today just days after the Department of Economic Development under the leadership of Minister Patel presented in parliament the New Growth Path.
Indeed, programme director, one of the sectors that the New Growth Path has identified as key to our attainment of shared growth and the creation of employment is the tourism sector. The report states that over 250 000 jobs can be created directly in tourism and business services. In order to realise this goal, the reports state that measures should be taken to expand the tourism infrastructure and services, promote targeted marketing campaigns, manage costs, quality assurance and logistics, improve training and identify employment and entrepreneurial opportunities for the youth.
In identifying tourism as one of the pillars around which to anchor the economic recovery of our country, the report has confirmed what we have always been saying that our country can benefit a lot if we fully exploit the potential of the tourism industry.
As we speak, the tourism industry contributes more than eight percent to the country’s growth domestic products and is forecast to contribute about 12 percent in the few years to come. It is, therefore, our strong belief that in the basket of our tourism offerings cruise tourism has a big role to play in boosting the overall tourism sector and the economy in general.
We say this, programme director, because, while our country has done well in exploiting other tourism products such as business, leisure and cultural tourism, the reality is that cruise tourism is by all accounts a virgin territory for many of us. In the basket of tourism products, cruise tourism is like a newly discovered star which we have no doubt that if exploited to the fullest has the potential to shine the brightest. But more importantly it will supplement other already existing tourism offerings and ensure that we have a gamut of tourism products in our country.
According to conservative figures, the value of this sector in terms of direct tourism expenditure is in excess of 29 billion US dollars. Precisely because we appreciate that a comparative advantage that is not exploited becomes an albatross around one’s neck, as the province of KwaZulu-Natal, we have and continue to harness strategies to ensure that we get a slice of this lucrative industry.
In order to ensure that this becomes a reality, we have developed a strategy and an action plan to develop cruise tourism potential of our province and the rest of the East Coast of Africa. As many of you are aware, KwaZulu-Natal is not only an active member of the Cruise Indian Ocean Association, but we are part of the secretariat of this body.
One of the major coups we have pulled off is to engage the organisers of the Sea Trade to convene a Sea Trade Africa Workshop in Durban to which leading executives of the major cruise liners will be invited to expose them to the cruise potential of East Africa and the Indian Ocean Island.
Already, programme director, a formal agreement has been entered into with Sea Trade and we are tying up the loose ends to ensure that the workshop is a success significantly, the conference will hear from cruise line experts on what they want to see from Africa as a destination in terms of terminal operations, infrastructure, hospitality, shore excursions and regulatory environment as well as the region’s own potential as a source market for cruise passengers.
Programme director, all these initiatives underscore our commitments to ensure that we harness the tourism potential of our maritime industry for the benefit of our people. Today’s launch of the cruise tourism report therefore signals a clear commitment from the government to ensure that cruise tourism becomes one of the key pillars of the tourism industry.
The challenge facing all of us is to ensure that the strategy contained in the report on how to take advantage of opportunities in the sector, is translated into action. Those in the know say it takes a speck to change the course of the river. Today’s launch is just the beginning but could prove to be a turning point in our quest to diversify our tourism offerings.
I thank you.
