South Africa Tourism Satellite Account Parliament Portfolio Committee

South Africa Tourism Satellite Account Parliament Portfolio Committee on Tourism 12 October 2010 1

Content • Important concepts and definitions • The TSA process in South Africa • Draft TSA for South Africa, 2005 • Tourism Statistics at Statistics South Africa 2

Concepts & Definitions Country of Residence Lived in RSA for at least one year Intend to live in RSA for at least one year 3

Concepts &Definitions Forms of Tourism Inbound Domestic Outbound 4

Concepts &Definitions The Usual Environment 40 kilometres Once a week or more 5

Concepts &Definitions Tourist “person traveling outside the usual environment for more than one day but not more than a year and the person is not remunerated at the destination” 6

TSA process in SA 1998 - 1999 Develop expertise through the UNWTO (ongoing) 2002 March 2002 May 2002 2003 - 2004 Oct 2004 WTTC developed simulated TSA for SA WTTC update for SA Inter-institutional committee (working team) formed Visit by French expert to provide advice for development of TSA Development of new data sources for the TSA Visit by TSA expert to assess the status of the TSA April 2005 Discussion document on the status of the TSA July 2005 Development of TSA model based on supply and use tables 2006 - 2008 Addressing data gaps – further development of the TSA model and discussion documents on the status of the TSA 7

TSA process in SA Develop expertise through the UNWTO (ongoing) May 2009 First draft TSA for SA, 2005 Indaba Nov 2009 National Accounts rebased and benchmarked Nov 2010 Final TSA for SA 2005 and pre limenary TSA for 2006 to 2008 8

TSA process Only TSA from 2002 to 2007? NO • Domestic tourism module in the General Household Survey – became the Domestic Tourism Survey • SAT departure survey – SASQAF (NSS) – acceptable statistics • Re – engineering of the Tourism and Migration release • Standardisation of concepts and definitions within Stats SA and between organisations 9

Draft TSA, 2005 Launch of the draft TSA Joint Launch Stats SA SAT DEAT Two phased approach 10 SARB

Draft TSA, 2005 The 10 tables of the TSA 11

Draft TSA, 2005 Key concepts used in the TSA 12

Draft TSA, 2005 Flows of tourism expenditure through the South African economy, 2005 13

Draft TSA, 2005 The Key Results of the draft TSA for SA, 2005 Gross value added of the tourism industries R 65 221 million (4, 7%) Tourism direct gross value added R 42 355 million (3, 1%) Tourism direct gross domestic product R 45 649 million (3, 0%) Direct employment in the tourism industries 14 527 630 (4, 3%)

Draft TSA, 2005 Results of the TSA (UNWTO) versus WTTC (previously quoted by industry) Draft TSA, 2005 Direct contribution to GDP Direct and indirect contribution to GDP WTTC, 2005 3, 0% 3, 29% - (The TSA ONLY measures DIRECT contribution to the GDP) 8, 15% 527 630 (4, 3%) 478 630 (3, 9%) Direct employment • TSA (UNWTO) – Internationally recommended methodological framework for calculating the contribution of tourism to the economy (GDP) • WTTC – Simulated model 15

Draft TSA, 2005 Comparison – Tourism vs traditional industries 16

Draft TSA, 2005 Distribution of value added and employment within the tourism industry 17

Draft TSA, 2005 International comparison 18

Tourism Stats Tourism Statistics in Statistics South Africa (short term indicators) • Survey of tourist accommodation (P 6420) – total income generated by the accommodation industry (accommodation, restaurants and bar sales, other income), stay units available, stay unit nights sold, occupancy rates 19

Tourism Stats Tourism Statistics in Statistics South Africa (short term indicators) • Survey of food and beverages (P 6410) – total income generated by the food and beverages serving industry (food sales, bar sales, other income) 20

Tourism Stats Tourism Statistics in Statistics South Africa (short term indicators) • Tourism and migration (P 0351) – arrivals and departures 21

Thank You 22

Draft TSA, 2005 • SOURCE DATA • International Recommendations on Tourism Statistics (IRTS) • TOURISM SATELLITE ACCOUNT • Tourism Satellite Account – Recommended Methodological Framework (TSA: RMF) Demand Supply • Departure Survey • Survey of tourist accommodation • Domestic Survey • Survey of food and beverages • Arrivals and Departures • Large sample surveys (accommodation, personal services, transport industry, real estate and business services, wholesale and retail trade) • GHS • IES • Balance of Payments • EAS • Supply and Use tables 23

Draft TSA, 2005 Methodology used for the compilation: TSA: RMF, Dec 2008 95 industries and 27 goods and services Basis – 2005 Supply and Use tables (not benchmarked) Step 1 Extraction of detailed data (products and industries) Tourism single purpose consumer durables Step 3 Step 2 Valuation of reservation services Gross margin – purchased separately 24 Dual classification – tourism exp Cost of production and component of tourism consumption

Draft TSA, 2005 No data currently collected by SAT departure survey certified by NSSD as acceptable stats – May 2007 Bo. P (adj) 25

Draft TSA, 2005 SAT domestic survey GHS tourism module Domestic Tourism Survey IC, PCE 26

TSA: what has been published Tourism Indaba, May 2009 Draft TSA for SA, 2005 Based on the 2005 SU-tables – detail for 94 industries and 27 products All stakeholders had until March 2010 to send any comments on data or methodology 27

Developments in National Acc • Benchmarking of National Accounts - new base year 2005 published in November 2009 ‘New’ SU-tables: • 292 industries • 105 products • Industry classification: SIC • Product classification: CPC Previous SU-tables: • 94 industries • 27 products • Industry classification: SIC • Product classification: linked to SIC Benchmarked 2005 SU-tables will be published in September 2010 28

Improvements Accommodation New SU-tables: Previous SU-tables: 1. 1. • 29 Other accommodation Otheraccommodation Product: 1. 1. Hotels, Restaurants Guest-houses and guest farms -farms • • Product: Caravan parks and Caravanparks and camping sites campingsites 4. 4. 1. Hotels, motels, botels and inns 3. 3. Industry: 2. 2. • • • Accommodation services

Improvements Transport Previous SU-tables: • 1. 2. 3. 4. 5. 6. 7. 8. 9. • 1. New SU-tables: • 1. 2. 4. 5. 6. 7. 8. 9. 10. 11. 12. Industry Railway transport Other scheduled passenger land transport Other non-scheduled passenger land transport Freight transport by road Transport via pipelines Water transport Air transport Cargo handling Storage and warehousing Other supporting transport activities Travel agency and related activities Activities of other transport agencies • 1. Industry Railway transport Other scheduled passenger land transport and other nonscheduled passenger land transport Freight transport by road Transport via pipelines Water transport Air transport Cargo handling Other supporting transport activities Travel agency and related activities Product Passenger transport services 3. Product Transport 30

SU-table and the TSA SU table for 2005 will be published in September 2010 Access to and permission to use unpublished pre-limenary SU –Tables for 2006, 2007 and 2008 Still open to revision (new data, etc). Final TSA for 2005, and pre-lim for 2006, 2007 and 2008 by 30 November 2010 31

Way forward Future development/improvement Separate same-day visitors and tourists (Table 1, 2 and 4) Investigate the possibility of compiling Table 3 (Outbound tourism) (no alternative data source) Use the DTS for the compilation of Table 2 (Domestic Tourism) Research the treatment of housing services provided by second homes on own account or free – (no alternative data source) Research the treatment of the service charges paid to travel agents, tour operators and other reservation services – (no alternative data source) Improve industry ratios applied to employment and measure the full-time employees (no alternative data source) 32

Tourism and Migration Travellers versus Tourists (2009) (Tourism 2009, Report 03 -51 -02 (2009)) Foreign travellers 18 778 556 Arrivals 10 098 306 Departures 8 680 250 Visitors Non Visitors 9 531 615 566 691 Same day Tourists 2 519 750 7 011 865 33