World Cup: How to prepare
the hotel industry and the
tourist infrastructure
Eddy Khosa
Chairman: FEDHASA
August 2008
I am a proud African
South Africa
Our land of opportunity at the Southern
tip of the African continent
FEDHASA
will help to
make the
dream
reality!
Africa’s
time has
come!
South Africa is
ready to host
South Africa 2010
FIFA Soccer
World Cup!
FEDHASA
Federated Hospitality Association
of Southern Africa
FEDHASA is the voice of the hospitality
industry with a strong focus on
representation and lobbying
FEDHASA truly represents industry
All leading hotel groupings in South Africa
Bead & Breakfasts and guesthouses
Government and public sector organisations
Sector development organisations
Grading and governance bodies
FEDHASA board members include:
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DEAT
HILG
THETA
TBCSA
TOMSA
TGSA
TEP
DELOITTE
2010 MATCH
FEDHASA builds on a proud legacy
Representing the South African Hospitality Industry on a local, provincial, national
and global level to protect the interests of all stakeholders of the industry, thereby
enabling members to achieve their business objectives.
Significant FEDHASA milestones:
• Founded in 1949
• National Liquor Board established in 1961
• Spearhead grading standards in 1964
• Influence into Hotels Act and formation of Dept of Tourism in 1965
• Name change in 1984 to include wider hospitality sectors
• Commenced lobbying with ANC in 1988
• FEDHASA white paper on growth of tourism industry in 1991
• Full South African democracy in 1994
• Contribute to delivery of a successful Rugby World Cup in 1994
• Portfolio committee system in 1998
• Host international IHRA conference in 1999
• HILG folds into FEDHASA in 2008 to form one representative body
Our role in the industry
FEDHASA has
a focus on
representation
and lobbying,
not marketing
FEDHASA
translates
legislative
compliance
from
Government to
hospitality
industry
Nature of the
membership of
the FEDHASA
represent the
entire
hospitality
industry
including hotel
industry
Clear role of
FEDHASA is to
be the
representative
voice of the
whole
hospitality
industry
Key FEDHASA differentiators
National and
regional
membership with
talented people
with strong industry
knowledge
Membership
mandate very clear
on role and
responsibility
Three autonomous
structures
representing the
total national
industry
Supported by
Government and
recognised as the
official voice of the
hospitality industry
Global trends are in our favour
Global tourism growth continues
• Latest research anticipates a slowdown in the industry in 2008, but
bright prospects for coming 10 years afterwards
• Moderate impact as a result of global economic downturn
• Challenges coming from US slowdown, weak dollar, higher fuel
costs & climate change concerns
• Continued strong expansion in emerging countries – both as a
tourism destination as well as a source for international visitors
• Africa (5.9%), Asia (5.7%) & the Middle East (5.2%) experiencing
higher growth rates
• Mature markets (Americas and Europe) are falling below the world
average with growth at (2.1% and 2.3% respectively)
• Overall impact of this slowdown for mature markets is expected to
be offset by the strength in emerging markets, in particular China &
India, whilst Middle East are undertaking massive tourism-related
investment programmes
•Source: WTTC (World Travel & Tourism Council), TSA (Tourism Satellite Accounting) research – March
2008
South Africa grows more competitive
• Tourism, the South African economy and global
destination competitiveness are all positive:
– SA’s global competitiveness as a global destination depends on four
things
– air access
– skills development
– tourist product development
– safety & security of visitors
– Tourism has delivered more than a million South African jobs
– Government, the private sector, the industry and nation continues
working together to achieve potential
– Tourism is a growing and sustainable industry
South African Tourism :, Moeketsi Mosola, South African Tourism CEO, March 2008
Positive foreign tourism growth
Total of arrivals
Source: Statistics SA
The South African offering at a glance
Our friendly people are our biggest asset
Scenic beauty, animals and great weather
Top class hospitality infrastructure with great
variety and choice
Offers very good value for money
Great diversity in the quality products and
experiences that are on offer
Our challenges are also opportunities
Political
•Political importance of 2010 as a key hospitality milestone
•Uncertainty in dynamics within the ruling party on the advent of a national election in 2009
•Strong drive for inclusion of previously excluded sectors of the industry
•Recent occurrence of Xenophobia
Legal
•Clear representation of industry required
•Push for empowerment and transformation
•Stronger push for a more regulated environment
Economic
•International economic slow-down in inbound source markets
•Rising input costs in the hospitality space
•Increased competition from other “new” markets
•Sustainable economic opportunity of FIFA 2010 and beyond
•Calls for greater empowerment in all industry sectors
•Cost of imported services and products and local skills shortage
Social
•HIV / Aids and TB in the Southern African region
•Role of hospitality industry in times of disaster
•Migration of people from poor neighbouring economies
•Disparity in levels of education, literacy and income
•Greater environmental role and awareness
Ready to deliver a successful 2010
Capitalise on the
major
opportunity
FEDHASA is an
effective link
between
industry,
Government and
organising
bodies
Deliver
successful
hospitality
participation with
all the key
players on board
Ensure
sustainable
positive impact
beyond 2010
Our approach for 2010 success
National tourism goals are clearly defined for 2010
Support at all levels as a key tourism milestone
All the right players are part of this continental priority including MATCH
FEDHASA monitors readiness of our industry against set milestones
Close working relationships with organising bodies
Empowerment of the industry is a key initiative
National and regional strategies are in place
Confederations Cup 2009 will be precursor and preparative experience
Building a legacy beyond 2010
2010 is a
significant
SMME
development
opportunity
SMME to
become part of
mainstream
economy
through 2010
Entrepreneurial
empowerment
and skills
development is
a key focus
Opportunity to
fast-track
transformation
of the industry
Non-hotel
contracts
brings new
business
opportunity
through
development of
guesthouses,
B&Bs etc.
Influential partnerships for success
What 2010 holds for South Africa
The
opportunity to
welcome the
world and
showcase our
fantastic
country ...
empower our
people
through
tourism
development
...
develop our
sustainable
hospitality
industry
beyond 2010
...
extend our
typical South
African
warmth to our
visitors ...
show that
South Africa
is truly the
gateway for
Africa’s
continental
success!
Thank you
We look forward to welcoming
you to South Africa!
South Africa – it’s possible