CEO MESSAGE: TOURISM INDUSTRY POTENTIAL RECOGNISED AS ECONOMIC CONTRIBUTOR

Ms Mandlakazi Skefile, Nelson Mandela Ba Tourism CEO

Nelson Mandela Bay Tourism (NMBT) welcomes the 5 year plan that will focus on the tourism sector in the city as expressed by executive director, Anele Qaba in The Herald on the 5 February 2016 emphasising that tourism is a key sector in the destination to be developed.

Tourism is positioned as one of the six core pillars of growth in the country’s New Growth Path (NGP) framework. The National Development plan (NDP) recognizes tourism as one of the main drivers of employment and economic growth. The positive effect of travel and tourism on an economy can be greatly beneficial for a destination in terms of business opportunities, trade and capital investment, creating jobs creative thinkers and entrepreneurs for the workforce whilst protecting the heritage and cultural values.

The National Tourism Sector Strategy (NTSS) has a major role in positioning tourism as one of the 6 core pillars of the South African economy. The strategy will work towards increasing the number of tourists to the country, with the target to increase the number of foreign tourist arrivals to 15 million in 2020.

It will also aim to increase tourism's contribution to the GDP from an estimated R189.4 billion in 2009 to R499 billion by 2020. In the area of job creation, the tourism sector is working towards creating an additional 225 000 jobs by 2020.

As per the research from the World Travel and Tourism Council (WTTC) the direct contribution for South Africa from Travel & Tourism to the GDP was ZAR113.4bn (3.0% of total GDP) in 2014. The total contribution of Travel & Tourism to GDP was ZAR357.0bn (9.4% of GDP) in 2014. WTTC research further shows in 2014 that the Travel & Tourism industry in South Africa directly supported 679,500 jobs (4.5% of total employment). .

Nelson Mandela Bay (NMB) was able to derive and contribute in excess of R18 billion to the GDP during 2014 from the tourism sector through direct and indirect spend sustaining 44 254 jobs. This was an increase on 2013 local contributions of R15 billion through direct and indirect spend that sustained 38 424 jobs in the tourism sector.

Tourism is one of the highest contributors to the economy locally and nationally, however with the 5 year plan to support the industry, the tourism sector could soon be the number one contributor. There are barriers that hinder NMBT from increasing tourism traffic to the destination. These include flight carriers such as British Airways and Mango who have recently scheduled fewer flights to and from the destination that impact tourism arrivals.

With the shift to focus on tourism, NMBT hopes to overcome barriers such as infrastructure development and maintenance as well as township tourism and SMME development.

NMB has become a highlight on many itineraries for cruise liner industry operators through initiatives and sales meetings initiated by NMBT. An increase in cruise liner dockings in the Port Elizabeth Harbor has seen increased tourism traffic to the destination and global exposure for NMB through passenger experiences and tour packages sold. Currently passengers disembark on a working dock that is not always conducive for leisure travelers. The sustainability of the dockings and future cruise tourism depends on developing a cruise liner strategy and tourist friendly dock for passengers to feel welcome and delighted whilst disembarking vessels.

According to the SA Cruise Tourism Report, the total net spending by passengers on cruise liners was about R472 million in 2010 and was expected to increases to R911 million by 2025. Through strategic marketing and sales meetings with cruise ship ground handlers NMBT has seen as increase in luxury cruise liners to Port Elizabeth. This is roughly a R25 million increase to the local economy through cruise liner tourism. The latest docking ship manifesto show that 25 vessels – carrying about 14 400 passengers and 6000 crew members – were booked to docked in the Port Elizabeth harbor between November 2015 and April 2016 which is an increase on the 15 vessels from the previous year.

All kinds of major events such as sporting events, cultural events and more are able to position NMB to be highly sustainable and competitive. Mega Events bring visitor traffic to a destination allowing for the attractions, activities and the cities world class facilities to be showcased and experienced on a national and international media platform allowing a global audience to be introduced to the destination.

Whilst the tourism spend is able to increase economic contributions through being in a position to host mega events through support so will the destination be able to invest in facilities, infrastructure and amenities that will improve the lifestyle of visitors and locals alike.

This will be further possible to accomplish with the support of the Premier of Eastern Cape, Phumalo Masualle who confirmed this while delivering the state of the province address on the 19^th December 2016.

Finance and economic development MEC Sakhumzi Somyo further elaborated and confirmed during the State of The province address that to facilitate job creation during a tough economic climate included supporting the Nelson Mandela Bay Municipality with a 5 year plan that will focus on agriculture, tourism and the ocean economy.

Tourism needs support and through increased investment into the sector, inbound tourism will increase and so will the sector’s contribution to job creation and economic growth. This increase will further reap socio – economic rewards through sustainable development creating the ideal destination to live, work and visit.