THE CONTRIBUTION OF TOURISM IN LOCAL ECONOMIC

DEVELOPMENT: THE CASE OF BUFFALO CITY METROPOLITAN

MUNICIPALITY

BY

YOLANDA TSHOBENI

20631249

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF

THE DEGREE OF MASTER’S IN PUBLIC ADMINISTRATION AT THE
NELSON MANDELA UNIVERSITY.

JANUARY 2019

SUPERVISOR:

DR TANDO RULASHE

i
DECLARATION

ii
ACKNOWLEDGEMENTS
I would never have been able to complete this treatise without guidance from my
supervisor, assistance from my friends, colleagues and support from my family, as
indicated below.

My sincere gratitude goes to my husband Thabang Tshobeni, my children, Oluthando

and Galelo Tshobeni, for their, psychological, and continual support towards my
academic success.

I would also like to thank:

My supervisor, Dr Thando Rulashe, for his guidance, support advice and skilful
mentorship throughout the entire research process.

I would like to acknowledge my mother Lulama Nazo, my father Mandayi Rala, my

sisters, Bongeka Nazo, Ziphozihle Somlotha, Zibuyile Rala, for always being there for
me whenever I needed support.

I am also grateful to Ms Enesia Tsuga (my house helper) for being a mother, a teacher
to my kids while I was busy with my studies.

Finally, I would like to thank my countless friends for their love and support.

iii
 LIST OF ACRONYMS

BCMM: Buffalo City Metropolitan Municipality

CAQDAS: Computer assisted qualitative data analysis software.

DEDEAT: Department of Economic Development Affairs and Tourism

GDP: Gross Domestic Product

IDP: Integrated Development Plan

MICE: Meeting, Incentives, Conferences, and Events

NTSS: National Tourism Sector Strategy

SAT: South African Tourism

STASSA: Statistics South Africa

TBCSA: Tourism Business Council of South Africa

TSASA: Tourism Satellite Account for South Africa

WTTC: World Travel & Tourism Council’s

List of figures

1. Figure 1 Chapter outline

List of tables

1. Table no 1: Economic Impact of tourism in Buffalo City Metropolitan Municipality

from 2011-2014

iv
EXECUTIVE SUMMARY

The primary aim of the study was to analyse the contribution of tourism to Local
economic development in BCMM. Tourism is one of the most important sectors of the
economy and an extremely lucrative business. The industry is growing and carries great
potential of contributing to a country and/or local areas’ economy and development.
What motivated the study is that there are no published studies on the contribution of
tourism to LED in BCMM. Therefore, is a lack of information on the importance of
tourism activities on promoting the local communities’ economies and social well-being
by helping to reduce poverty. Even though, the municipality gives some information on
activities that are being done by the municipality to work with the local communities that
have tourist attraction hubs, the information does not delve into economic issues that
are needed to ensure that there is promotion of development in areas that are around
the tourist attraction hubs.

The study was qualitative and it used secondary data to achieve its objectives. Data
was sourced from journals, municipal documents, newspapers and many other
secondary sources. Results showed that tourism in BCCM has led to economic
development in that there are quite a number of attractions and tourism products in the
city i.e. museums, theatres, beautiful beaches, conference, restaurants, and
accommodation facilities, and this is where job opportunities are created. The tourism
sector is one of the key areas with great potential for poverty alleviation and has been
taken as a key portfolio to be appropriately monitored to foster its growth and
development in the Buffalo City Metropolitan.

v
TABLE OF CONTENTS

DECLARATION ...........................................................................................................................II
ACKNOWLEDGEMENTS ...........................................................................................................III
LIST OF ACRONYMS……………………………..........................................................................IV
LIST OF TABLES & FIGURES...................................................................................................IV
EXECUTIVE SUMMARY………………………………………………………………………………..V
TABLE OF CONTENTS .............................................................................................................VI
1.1. CHAPTER ONE INTRODUCTION AND BACKGROUND ............................................ 1
1.2. STATEMENT OF THE PROBLEM .................................................................................. 3
1.2.1 RESEARCH QUESTIONS .............................................................................................. 4
1.2.2 OBJECTIVES OF THE STUDY ....................................................................................... 4
1.3. SIGNIFICANCE OF STUDY ............................................................................................ 4
1.4. DELIMINATIONS OF THE STUDY ................................................................................. 6

1.5. ETHICAL CONSIDERATION .......................................................................................... 6

1.6. DEFINITION OF TERMS .................................................................................................... 7
1.7. OUTLINE OF THE STUDY ................................................................................................. 9
1.8. CONCLUSION .................................................................................................................... 9
CHAPTER TWO: LITERATURE REVIEW ................................................................................10
2.1 INTRODUCTION.................................................................................................................10
2.2. Tourism .............................................................................................................................10
2.3. THE CONCEPT OF TOURISM ..........................................................................................13
2.4. TOURISM IN SOUTH AFRICA ..........................................................................................25
LED strategies for Municipalities ...........................................................................................42
Local Government Promoting Local Economic Development .............................................48
Role of Tourism in Local Economic Development ...............................................................48
Challenges Associated with Tourism ....................................................................................51
2.5. CONCLUSION ...................................................................................................................59
CHAPTER THREE: RESEARCH METHODOLOGY.................................................................60
3.1 Introduction .......................................................................................................................60
3.2. Research Design ..............................................................................................................60
3.2.1 Research approach ........................................................................................................61

vi
3.3. Scope of the study ...........................................................................................................66
3.4. UNIT OF ANALYSIS ..........................................................................................................67
• Geographical scope of the study ........................................................................................... 68

• Time scope of the study .......................................................................................................... 68

3.5. Research Population........................................................................................................68

3.6. Data collection..................................................................................................................68
3.7. Data collection instruments ............................................................................................68
3.8. Data Analysis ...................................................................................................................69
3.9. Data presentation .............................................................................................................70
3.10. Conclusion .....................................................................................................................70
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND PRESENTATION ....................71
4.1 Introduction .......................................................................................................................71
4.2 Presentation of main findings ..........................................................................................71
4.3. Conclusion .......................................................................................................................82
CHAPTER FIVE: CONCLUDING REMARKS AND RECOMMENDATIONS ............................83
5.1 INTRODUCTION.................................................................................................................83
5.2 Findings from the Study ...................................................................................................83
5.2.1 Findings from Literature Review ...................................................................................86
5.2.2 Findings from Primary Research ..................................................................................85
5.3. Recommendations ...........................................................................................................86
5.4. Areas for Further Research .............................................................................................87
5.5 Conclusion ........................................................................................................................87
REFERENCES…………………………………………………………………………………………………………………88

vii
CHAPTER ONE: INTRODUCTION AND BACKGROUND

1.1 INTRODUCTION AND BACKGROUND

Tourism is one of the most important sectors of the economy and an extremely lucrative
business. The industry is growing and carries great potential of contributing to a country
and/or local areas’ economy and development. According to Dwyer, Forsyth and Dwyer
(2010:12), tourism has grown substantially over recent decades as an economic and
social phenomenon. Furthermore, Matias, Nijkamp and Sarmento (2011:44) state that
tourism industry is the fastest growing sector of the economy. World Travel and Tourism
Councils (WTTC) (2015:44) also support this assertion, revealing that, the Travel and
Tourism sector is expected to grow faster than the wider economy and many other
industries over the next decade. It is anticipated to support over 370 million jobs by
2026 (WTTC, 2015:44). It is evident that tourism certainly does contribute to the
country’s economy.

South Africa is one of the countries benefiting from the expansion of tourism. The
independence of South Africa saw a significant increase in the number of tourist who
are visiting the country. According to Trade Economics (2017:1) tourist arrivals in South
Africa averaged 502 877 from 1979 until 2017, reaching an all-time high of 1 558 854 in
January of 2016 and a record low of 37 430 in June of 1979. Pointing out a similar
assessment, Tourism Satellite Account for South Africa (TSASA) report (2016:55),
released in February 2016, provides an overview of tourism’s contribution and role in
three spheres, namely employment, attracting foreign exchange and economic growth.
TSASA report (2016:55) alludes that in 2005, for example, 475 664 individuals were
directly employed in the tourism sector. In 2013 alone, the number of persons employed
in the tourism industry amounted to 4.5% of all employed persons in South Africa,
providing jobs of all skill levels and in all areas of the country and in 2014, this number
was raised by 205 153 to 680 817 individuals employed (TSASA, 2016:55).

1
Coastal regions are supposed to benefit from the influx of tourists in the country as they
are endowed with a lot of natural resources. The Eastern Cape being one of the
province which has a number of coastal areas that are likely to attract tourists is
supposed to be benefiting from this expansion in tourism. However, as highlighted by
the BCMM Integrated Development Plan (2016:48), of the 20 986 593 people living in
poverty in South Africa, 3 780 924 people are in the Eastern Cape which means that
40% of South Africa’s population and 55% of the province’s population live in poverty. In
Buffalo City Municipality region, there are more than 373,000 people living in poverty,
representing approximately 49% of the population (ECSECC, 2012). The alarming
levels of poverty in the province suggest that there is need to look into what can be
done to ensure that the poverty rate decrease. Tourism like other industries can
contribute to the alleviation of poverty.

The Buffalo City Metropolitan Municipality is one of the areas in the Eastern Cape that
receives a lot of tourists. According to the WTTC (2015:44), in 2014 international visitors
to Buffalo City Metropolitan Municipality (BCMM) contributed R 537 195 080 to the
economy of the city and the Domestic Overnight Visitors contributed R 2 674 235 782
and day visitors R 2 842 209 878 for an overall domestic contribution of R 5 516 445
660. This was enough to sustain 44 254 jobs for the year. Despite the progress that is
experienced by the tourism sector in the municipality, some of the communities in these
tourist attraction areas in the municipality remain underdeveloped, with these
communities still impoverished.

What motivated the study is that there are no published studies on the socio-economic
impacts of tourism in BCMM. Therefore, is a lack of information on the importance of
tourism activities on promoting the local communities’ economies and social well-being
by helping to reduce poverty. Even though, the municipality gives some information on
activities that are being done by the municipality to work with the local communities that
have tourist attraction hubs, the information does not delve into economic issues that
are needed to ensure that there is promotion of development in areas that are around
the tourist attraction hubs.

2
Areas like BCMM still have ‘two distinct’ areas in the same where some places are more
developed and other areas are underdeveloped. This situation shows that there is a gap
that needs to be addressed to ensure that there is even distribution and optimal use of
resources to develop tourist attraction areas evenly. This study will therefore, analyse
the economic impact of tourism in BCMM.

1.2 STATEMENT OF THE PROBLEM

The tourism has been expanding tourism industry should translate into economic growth
for communities that are hubs for tourist attraction. According to Monakhisi (2008:26)
tourism growth should mean, inter alia, access to food, security and economic
empowerment, especially for previously neglected individuals and communities. The
scholar further argues that meaningful involvement and economic empowerment
through tourism may be achieved if opportunities are created for local communities to
own tourism-related businesses, to establish partnerships for business development, to
manage outsourced functions of the tourism industry and to encourage affirmative
procurement by both public and private sectors and meaningful representation in
decision-making structures of the industry (Monakhisi, 2008:26). Considering the
assertions by Monakhisi (2008), the current state of the province and mainly focusing on
the tourist areas like Chintsa in Buffalo City Metropolitan Municipality reveals that there
is need to investigate the socio-economic impact of tourism in the area.

According to Farmaki et al (2014:12) there is limited research that has been undertaken
on the ability of industry stakeholders to achieve responsible tourism goals, especially
within the coastal tourism destinations (such as BCMM in the context of this study). The
contribution of tourism to LED of the Buffalo City Metropolitan Municipality has not been
clearly investigated mainly because tourism is not a clearly identifiable industry. Tourism
activity is “hidden” in other industry activities (accommodation, transportation, meals,
entertainment, and so on). Having considered the above problem, the study thus seeks
to investigate the importance of measuring the economic significance of tourism job
creation, and reveal tourism’s value and its impact in job creation for the economy of
BCMM.

3
1.2.1 RESEARCH QUESTIONS
The primary aim of the study is to analyse the socio-economic impact of tourism in
BCMM.
The study is looking at analysis the socio-economic impact of tourism in BCMM. Given
the above-mentioned problem, the following research questions will need to be
answered by this study.
1. What are the economic and social impacts of tourism in BCMM?
2. What is the contribution of tourism activities to the economy of the local
communities?
3. What strategies can be taken to maximize the opportunities and benefits to the
local community?
.
1.2.2 OBJECTIVES OF THE STUDY
Based on the main research questions, the following objectives were formulated for this
study:

1. To assess the contribution of tourism to Local economic development in BCMM

2. To investigate the contribution of tourism activities to the economy of the local

communities.

3. To determine the strategies that can be taken to maximize the opportunities and
benefits to the local community.

1.3 SIGNIFICANCE OF STUDY

The study will have theoretical implications. The study will contribute towards the new
information generation primarily based on empirical data about contribution of tourism to
Local economic development in BCMM. The study will therefore contribute towards the
body of knowledge concerning the contribution of tourism to Local economic
development in BCMM. The study will also attempt to add to studies that are needed to
demonstrate tourism’s socio-economic contribution to the BCMM especially in
communities that have tourist attraction areas.

4
Any development strategies that might be initiated and implemented by the national and
provincial government, local municipalities, local communities and other private
stakeholders depends on the information that is available to be able to understand,
invest and value tourism sectors and amenities. These different players have to
understand the importance of tourism’s socio-economic impact to support it. Therefore,
this study, through empirical data that will be gathered from the investigation will
contribute to the available body of knowledge closing the gap of the limited information
on the socio-economic impact of tourism in tourist attraction hubs in BCMM.

The study might also have policy implications. This study will provide information that
might be used to devise policies that are aimed at improving the tourist attraction hubs
in the BCMM area. This will imply that the improvements in policy will not only help the
local communities but also the municipality to improve policies that used in its tourism
sector to be development oriented. Furthermore, this could assist in improving the
following: jobs creation through tourism, defining and understanding the core areas of
tourism in BCMM and developing sustainable strategies for socio-economic
development in BCMM. The study will supply information that might help to ensure that
positive changes in tourism result in positive development in BCMM communities
thereby alleviating poverty in the province. This alignment can only be premised on
sound policy that is built on well researched information, therefore this study will attempt
to contribute towards such policies.

The study will also have pragmatic implications. The study seeks to investigate the
importance of tourism to the LED in BCMM, as such the findings of the study might help
to improve socio-economic conditions of the area. The study will look at the
contributions of tourism and how to maximize the benefits from the sector so as to make
contributions to people’s lives through issues such as creation employment
opportunities within the municipality. The data that will be collected can be used in the
departments in solving practical challenges. Therefore, this information can help
decision makers formulate the most appropriate development plans when, for example,
seeking public resources in order to stimulate the growth of tourism at the same time

5
ensuring community development. The study therefore will aim to provide practical
recommendations that are useful to the local communities that are hubs of tourist
attraction as well as the municipality as the custodians and main drivers of the tourism
sector.

1.4 DELIMINATIONS OF THE STUDY

The study was only limited to one area: BCMM. The study did not use many other
tourist destinations in the Eastern Cape. This was due to time and financial constraints.
Furthermore, the study only used one data collection instrument which is secondary
sources.

1.5 ETHICAL CONSIDERATION

Kumar (2014:45) mentions that there are many stakeholders in research, whether
quantitative, qualitative or mixed methods. Kumar (2014:49) further lists the
stakeholders as the research respondents or subjects, the researcher and the funding
body, and argues that it is important to look at ethical issues in relation to each of them.

Voluntary Participation: Before interviewing or administering the questionnaire, the

participants, will be made aware that they are not obliged to participate in the research
process. The subjects will be given an option of partaking or declining to take part
before the data collection process commences. Additionally, the research subjects will
be afforded the chance to clarify any concerns throughout the administration process.
The study will make sure that the confidentiality of the research participants will be
ensured by substituting their real names with pseudonyms. The researcher will explain
to the respondents that their participation is voluntary and that, if they feel that they are
no longer willing to participate, they are free to withdraw their participation.

Informed Consent: informed consent will be obtained from every participant.

Participants will be made aware of the purpose of the study by outlining the objectives
of the study. Tracy (2013:37) mentions that weak consent leads to poorer data.

6
Tracy (2013:37) also argues that members must know that their participation is
voluntary and understand how to opt out. The researcher will ensure that consent is
sought in the right way, by being honest and transparent.

Anonymity: all participants will be assured that their identity will remain anonymous. The
participants will be made aware that the information from the study will not be used
anywhere except for academic purposes. The participants will be made anonymous as
the researcher will not ask for the participants’ names so as not to link the responses to
any individual.

Confidentiality: before participating in the research, the respondents will also be assured
that the information they would provide would be treated with confidentiality. In addition
to this, any special concern about threats to anonymity will be considered as the sample
could be an identifiable source due to a relatively small sample size.

Furthermore, none of the data will enable anybody to have access to any of the
research participants and precautionary measures will be taken to keep the digital data
safely. The data will be kept in safe place for at least three years after the study has
been conducted and be destroy to ensure that it is not used for any other purpose.

1.6 DEFINITION OF TERMS

Development - Andrews (1988:140) defines development as the continuation of

education and training for the purpose of acquiring sufficient experience, skills and the
right attitude to be appointed to the highest managerial position

Service Delivery - it is the provision of Public activities, benefits or satisfaction.

Services relate both to provision of tangible public goods and to intangible services
themselves, (Fox & Meyer, 1995:118).

Tourism - Tourism is not a new phenomenon and its origins can be traced back to the
Greek and Roman times, where the purpose of visits was for summer holidays (Butler
2009). Since then, tourism has increased as a leisure activity, with large numbers of

7
people being able to take holidays and travel, visiting the seaside or ski resorts (Butler
2009; Arva and Deli-Gray 2012).

Socioeconomic development - socio-economic development is the process of

social and economic development in a society. Socio-economic development is
measured with indicators, such as GDP, life expectancy, literacy and levels of
employment (Arva and Deli-Gray, 2012).

Economic growth - Economic growth is the increase in the inflation-adjusted market

value of the goods and services produced by an economy over time. It is conventionally
measured as the percent rate of increase in real gross domestic product, or real GDP
(Butler 2009).

Local economic development - Local Economic Development (LED) is an approach

towards economic development which allows and encourages local people to work
together to achieve sustainable economic growth and development thereby
bringing economic benefits and improved quality of life for all residents in a local
municipal area (Garay, 2015).

8
1.7 OUTLINE OF THE STUDY

Chapter one - introduces the research problem and discusses it by giving the questions
that the researcher would like to investigate. This chapter also outlines the significance
of the study as well as the objectives of the study, primary and research problem.

Chapter two - discusses the literature review relevant to the study of tourism socio-
economic impact globally, regionally and nationally. The focus shall be to present the;
literature that underpins the study.

Chapter three - discusses the research methodology of the study. This includes
population, sample, the sampling technique and as well as the data collection methods,
data collection instruments and data analysis procedure.

Chapter four - focuses on data analysis and also the explanation of the data that will be
collected. The chapter shall explain the results of the study. It will present the results
that the study found. The results will be displayed in a qualitative form.

Chapter five- presents summary of the findings, conclusions and recommendations.

The chapter shall give an outline of how the study was done, how the results were
arrived at and the nature of the results. After that it will give recommendations based on
the study’s findings.

1.8 CONCLUSION

This chapter provided a discussion of the background aligned to the aim and objectives
of the study. It concluded by giving the meaning of the key terms as well as an overview
of the research structure. A good understanding of tourism and how it contributes in
local economic development is important and has been highlighted. The next chapter
focuses on the literature review of the study.

9
CHAPTER TWO: LITERATURE REVIEW

2.1 INTRODUCTION

This chapter deals with the literature on the contribution of tourism in local economic
development in order to give the reader a clear picture of the problem at hand. For the
purpose of this study the researcher used books, internet sources, articles and
government documents relating to tourism. The researcher will mainly focus on the
following: the contribution of tourism, integrated local plan, tourism in South Africa,
community development, tourism employment, and capacity building. The historical
background of local economic development, the importance of local economic
development, role players, strategies and their implementation in South Africa is also
discussed in this chapter. In addition, the problems encountered with LED and the
financing mechanisms available in South Africa are also discussed.

2.2 Tourism

Tourism is an important contributor to employment in many economies and tourism-

induced employment has been discussed by a number of researchers. Statistics show
that the tourism industry is a major contributor to the GDP and a major foreign
exchange earner in many countries (Monakhisi, 2008:63). In poor communities,
infrastructural development such as the building of roads, aimed at stimulating tourism,
may also create opportunities for trade (UNWTO, 2002:43). More so, the promotion of
tourism has been identified as a key strategy in bringing about economic growth,
community development and poverty relief in the developing world (Binns and Nel,
2002: 235). Research by Mehta (2007:8) tourism appears to be a major sector of job
creation. The sector continues to outperform the wider economy, as it has done for
consecutive years generating 105 million direct jobs in 2015 (3.6% of total employment).
By 2025, the industries will account for 131 million direct jobs, an increase of 2% over
the next 10 years.

10
Mathieson and Wall (2006:77) suggest that there are three types of employment
generated by tourism:

1. Direct employment results from visitor expenditures in tourist plants such as

hotels;

2. Indirect employment is still in the tourist supply sector but does not result directly
from tourist expenditures and

3. Induced employment is the additional employment resulting from the effects of

the tourism multiplier as local residents re-spend the additional money which they
have earned.

South Africa is becoming a prime African tourist destination, with tourism accounting for
8.2 per cent of the country's GDP and creating nearly 800 000 jobs (Acheampong,
2011:11). Tourism supports one in every twelve (12) jobs in South Africa. South Africa
has earmarked tourism as a key sector with excellent potential for growth, the
government aims to increase tourism’s contribution, both direct and indirectly, to the
economy from the 2009 baseline of R189,4-billion (7.9% of GDP) to R499-billion by
2020 (South Africa National Department of Tourism, 2012:18).

Locally, tourism has been contributing to the local economic, according to WTTC report
2015, in 2014 international visitors to BCMM contributed R 537 195 080 to the economy
of the city. Domestic Overnight Visitors contributed R 2 674 235 782 and day visitors R
2 842 209 878 for an overall domestic contribution of R 5 516 445 660. This was
enough to sustain 44 254 jobs for the year.

11
 Economic Impact of tourism in Buffalo City Metropolitan Municipality from 2011-
2014

2011 2012 2013 2014

Foreign Direct spend R 613 415 496 R 866 274 135 R 550 084 887 R 537 195 080
Domestic Direct spend overnight Visitors R 1 874 532 458 R 2 055 130 906 R 2 053 276 234 R 2 674 235 782
Day Visitor Spend R 1 785 168 000 R 2 149 119 000 R 2 471 486 850 R 2 842 209 878
Domestic Direct spend Overall R 3 659 700 458 R 4 204 249 906 R 4 524 763 084 R 5 516 445 660
Overall Direct Spend R 4 273 115 954 R 5 070 524 041 R 5 074 847 971 R 6 053 640 740
Job Creation/Sustainability 34 842 39 813 38 424 44 254
WTTC Multiplier for SA 3.14 3.12 3.13 3.00
Table 1: WTTC report 2015

Papatheodorou, Forsyth, and Graham (2016:30), view tourist destinations from five
broad sectors namely attractions, transport, accommodation, supporting facilities and
infrastructure. The researcher explains that attractions encourage tourists to visit the
location, the transport services enable them to do so, the accommodation and support
facilities alike (for example shops, banks, restaurants, hotels) cater for the tourist’s well-
being during their stay and the infrastructure assures the essential functioning of all the
above sectors. Activities undertaken in BCMM by tourists are shopping, nightlife, social,
visiting natural attractions, business, beach, cultural, historical heritage, wildlife, theme
parks and adventure activities and they boost the local economy which in turn promotes
job creation.

In a study by Dwyer, Forsyth and Dwyer (2010:12), the impacts of tourism are of
interest to private businesses, government agencies and individuals living in the areas
that tourist’s visit. Informed private decision making and public policy require that
executive officials, employees and their dependents understand the contribution that
tourists and those that supply these businesses. In summary, it is evident that tourism
positively contribute towards the economy of a country or region. However, there is little
evidence to show that the economic gains are translating into socio-economic gains for
the local communities that are tourist attraction hubs especially in BCMM which has a
lot of people who are impoverished.

12
2.3 THE CONCEPT OF TOURISM

Tourism is not a new phenomenon and its origins can be traced back to the Greek and
Roman times, where the purpose of visits was for summer holidays (Butler 2009). Since
then, tourism has increased as a leisure activity, with large numbers of people being
able to take holidays and travel, visiting the seaside or ski resorts (Butler 2009; Arva
and Deli-Gray 2012). Tourism has transformed from being a luxury for the rich and
includes millions of people from diverse economic backgrounds (Goeldner and Ritchie
2009).

There are many discussions debates and concerning the definition of tourism, resulting
in tourism becoming a complex term (Saayman 2013). However, a working definition is
necessary to understand this complex phenomenon. Holloway and Humphreys (2012)
provide a more common definition of tourism taken from the World Tourism
Organisation (WTO) as: the movement of people travelling to and staying in
destinations outside of their usual environment, for not more than a year, for leisure,
business as well as other purposes. Activities are undertaken throughout the tourists’
stay in the destination and tourism services are created to cater for their needs
(Holloway and Humphreys 2012). Saayman (2013) includes the terms tourists, job
providers, government systems and communities in his definition of tourism and
interprets tourism as the total experience that originates from the interaction between
tourists, job providers, government systems and communities in the process of
providing attractions, entertainment, transport and accommodation to tourists. The
definition provided by Saayman (2013) relates to the definition provided by Goeldner
and Ritchie (2009), who define tourism as the procedures, activities, and outcomes that
arise from interactions among tourists, tourism suppliers, host governments, host
communities as well as the surrounding environments that attract and host visitors.

Tourism is also a multi-dimensional and multi-faceted activity, that touches numerous

lives and many diverse economic activities Cooper (2012), comprising of activities,
facilities and industries that deliver a travel experience including transport,
accommodation, restaurants, shops, entertainment, activity facilities as well as other

13
hospitality services that are available for individual or groups travelling away from home
(Goeldner and Ritchie 2009).From the above definitions of tourism, it can be concluded
that tourism is not a simple form of business as it includes several sectors of the
economy and impacts many lives (George 2008; Cooper 2012).

➢ The Unique Characteristics of Tourism

Page and Connell (2006) outline six economic characteristics of tourism which make
tourism unique when composed to other industries, and they are as follows:

➢ Tourism as an invisible export industry

This refers to a situation where there is no tangible product and consumers tend to
make a purchase without seeing the product first-hand. This happens when a customer
makes reservations to a hotel through the internet or telephonically without seeing the
hotels live (Wall & Mathieson, 2006);

➢ Tourist supporting goods and services

This refers to the promotion of existing infrastructure and services which may be
required or new ones created. Tourists visiting a destination require ancillary goods and
services such as transportation facilities, water supplies, sewerage systems and retail
functions. These services have to be created, expanded or imported, depending on the
availability of existing supplies and the nature and the magnitude of the tourist demands
(Wall & Mathieson, 2006);

➢ Tourism as a fragmented product

According to Cooper et al. (2000), tourism is a composite of an industrial product, as it

consists of a number of elements such as transport and accommodation, food and
beverages, retail, the entertainment sector as well as landscape and cultural resources.
This suggests that tourism has strong linkages with many sectors of the economy and it
is the strength of these linkages that determine the value of income and employment
multipliers associated with tourist expenditure. The variety of industries included under

14
the umbrella of tourism means that there are a variety of employment opportunities
generated by the tourism activity. For example, tourist expenditure is injected directly
into hotels, shops, restaurants, and recreational facilities, while indirect benefits from
tourist expenditure may be in the form of local tax revenue, improvements in the
infrastructure of the destination areas and extensions of community services (Wall &
Mathieson, 2006).

➢ Tourism as a highly priced-and income-elastic product

This means that tourist decisions can be greatly influenced by small changes in price
and income. It is subject to strong seasonal variations, to pronounced an unpredictable
external forces, to the heterogeneous nature of tourist motivations and expectations,
and is highly elastic with respect to both price and income. Collectively, these factors
promote a low level of customer loyalty with respect to destinations, modes of travel,
accommodation units and travel intermediaries (Wall & Mathieson, 2006).

➢ Tourism as a perishable product

This means that it cannot be stored, that is, it should be sold for that when it is still
available. Tourist demand is highly seasonal and lead to marker fluctuations in the
levels of activity in the industry. The rigidity of the tourist supply, coupled with the fact
that supply cannot be readily moved, means that there is an inability to increase
production beyond certain inelastic limits posed by the destination supply, at least in the
short-term. This means that sufficient revenue must be earned during the peak season
to offset a decline in support for the remainder of the year. For example, if a hotel room
is not booked one night, then that income is lost (Wall & Mathieson, 2006);

➢ Tourism is subject to unpredictable external influences

There are influences such as currency, politics, and tourist motivation. Long distance
pleasure travel is a luxury. Political unrest at a particular destination, terrorist activities,
and changes in international currency exchange rates, energy shortages and unusual
climatic events can cause tourists traffic to divert to new destinations with more
amendable conditions (Wall & Mathieson, 2006).
15
➢ The Economic Impact of Tourism

Tourism is of global importance and as it contributes immensely to the Gross Domestic

Product and creates job opportunities (Arslanturk, Balcilar and Ozdemir 2011; Seetanah
2011; Cooper 2012). Moreover, tourism is ranked as the third largest industry in many
countries contributing to major social and economic development (Goeldner and Ritchie
2009). Statistics reveal an important growth rate amongst international arrivals in 2012,
recording over 1 035 billion visitors’ arrivals worldwide (UNWTO 2013). Europe was the
most visited region in 2012 with 534 million visitors, followed by Asia with 234 million
visitors and America with 163 million visitors, Africa recorded 53 million visitors, while
there were 52 million visitors in the Middle East (UNWTO 2013).

Tourism increases a country’s GDP. For example, in the Caribbean and Pacific Islands,
over 50% of the GDP is derived from tourism, which rises to 88% in the case of the
Maldives, and in northern Botswana tourism contributed about 45% to the GDP of the
country (Mbaiwa 2003). The tourism industry serves as a primary source for generating
revenue and infrastructural development, for example, developments in water supply,
sewage treatment, or new entertainment facilities (Chen and Chiou-Wei 2009; Fletcher,
Fyall, Gilbert and Wanhill 2013). The industry also generates tourist expenditures into
the local economy, encourages development of an entrepreneurial culture and
maintains the growth of enterprises in a tourism destination (Cooper 2012). The tourism
industry also has a great effect on local population employment, increasing employment
advantages and minimizing the boundaries of poverty (Shukla and Ansari 2013).
Tourism also serves as an important foreign exchange earner, contributing to the capital
of goods that are used in the manufacturing process and stimulating research and
development (Brida and Risso 2009). Furthermore, tourism generates the multiplier
effects by contributing to the development of other sectors, for example:
accommodation, food, transportation, hospitality, construction, textiles, agriculture,
fishery retail trade, and entertainment (Goeldner and Ritchie 2009; Gokovali 2010).
Youth and women also benefit from tourism through skills development and education
(Cook, Yale and Marqua 2010; Gokovali 2010).

16
Tourism has direct, indirect and induced impacts on local economies, these can often
be largely divergent between countries, based on the structure of the sector but most
importantly on how well linked tourism activities are with the local economy. Greater
linkages generally translate into higher levels of local economic activity (and growth),
which tend to occur when tourism enterprises source their goods and services
(including labour) locally whilst low levels of economic linkages occur where tourism
enterprises are dependent on imports (including staff) to supply their demands. The
overall impacts of the sector are the sum of the direct, indirect and induced effects
(WTTC, 2012a):

• Direct Impacts: Represents the GDP generated by activities that directly deal
with tourism such as hotels, travel agents, airlines and tour operators as well as
restaurants and other activities that cater to tourists.

• Indirect Impacts, impacts which accrue due to the activities undertaken by the
sector, and are a function of three different factors:

1. Capital Investment in tourism: Includes capital investment within all sectors that are
directly involved in the tourism industry as well as spending by enterprises in other
sectors on tourism assets such as transport or accommodation.

2. Government Spending for Tourism: Government spending to support the tourism

sector, which can include both national and local spending. Activities include tourism
promotion, visitor services, administration etc.

3. Supply Chain Effects: These represent the purchase of domestic goods and services,
as inputs to the production of their final outputs, by enterprises within the tourism sector.

• Induced Impacts: Represents the wider contribution of tourism through the

expenditures of those who are directly or indirectly employed by the tourism
sector.

Tourism can make a positive economic contribution such as increasing foreign

exchange earnings which subsequently improves the balance of payments, expands the

17
service sector by generating employment over a wide range of skill levels, attracts
investment capital for infrastructure development, stimulating improvements of
transformation infrastructure, economic diversification and long term stability (Boo
1991), cited in Zupan (2003). According to Dixon and Serman (1991) and Alderman
(1994), cited in Zupan (2003), the most common sources of revenue obtained from
tourism include amongst others, entrance and accommodation fees, restaurants, shops,
tour guiding, souvenirs, conference facilities as well as donations. According to many
scholars of tourism (McNeely, 1998 and Mbaiwa, 2003), tourism is regarded as the
largest growing industry globally, especially in the area of job creation, and the above
statements support that. Tourism is the largest industry where people can reap the
economic benefits as it has different sectors where the skilled and unskilled people can
be employed.

➢ The Social and Environmental Contribution of Tourism

From a cultural perspective, tourism connects people from different cultures creating
cultural exchange through traditional arts and crafts, performance of traditional dances,
preserving the historical and natural sites (Cook, Yale and Marqua 2010; Fletcher, Fyall,
Gilbert and Wanhill 2013). Furthermore, local communities are able to uplift their spirits
and values through festivals and events (Cooper 2012; Fletcher, Fyall, Gilbert and
Wanhill 2013). From an environmental perspective, tourism provides opportunities for
creating awareness of environmental preservation, thus, improving the physical
surroundings and contributing to the preservation of built and natural environment (Kim,
Uysal and Sirgy 2013; Cooper 2012; Fletcher et al., 2013).

➢ Tourism employment

The tourism industry is a major contributor to global employment opportunities (Dhiman

2012). It provides employment to 204 million people globally, accounting for 10.9 per
cent of all consumer spending as well as 6.9 per cent of all government spending, and
also serves as a great multiplier effect on other industries (Amalu and Ajake 2012;
Dhiman 2012). It was estimated by OAS that 1.15 jobs are created for every room in the

18
tourism sector and for every one job created directly within the tourism sector, two other
jobs are created in other sectors of the local economy (Vaugeois, 2000; OAS, 2010).

Tourism also creates direct and indirect employment opportunities in service industries
that are linked with the tourism industry, such as the transportation services through
airlines, taxi cabs and cruise ships (Goeldner and Ritchie 2009; Amalu and Ajake 2012;
Mbina 2015). The direct employment includes front offices in hotels, restaurants, travel
agencies, tourism information offices, aircrafts, cruise lines, resorts or shopping outlets.
Such employment provides direct employment because employees are in contact with
tourists and cater for tourists’ demand (International Labour Office 2011; UNWTO
2014). Tourism also supports indirect employment, such as restaurant suppliers, and
construction companies that build and maintain tourist facilities, as well as necessary
infrastructure, aircraft manufacturers, various handicrafts’ producers, and marketing
agencies (International Labour Office 2011; UNWTO 2014). These are more or less
dependent on the companies providing direct employment for their revenues.

Furthermore, the International Labour Organisation (ILO) affirms that career

opportunities in the tourism industry are more accessible than in many other sectors of
the economy due to the diverse and fragmented nature of this industry (Zwane, Du
Plessis and Slabbert 2014). The tourism sector is considered valuable to developmental
agencies, such as the United Nations World Tourism Organisation, since it is able to
create employment opportunities for the educated and uneducated by promoting small
tourism enterprises and creating infrastructural services for the poor (Gartner and
Cukier 2012).

Moreover, the tourism industry develops the structure and balance of economic
activities in the locality as well as encourages entrepreneurial activity for local
communities (Saayman, Saayman and Ferreira 2009; Manavhela and Spencer 2012).
The inverse effect of tourism provides a ripple impact as infrastructural advancements,
such as the construction of news buildings, roads, and parks, are conceivable. Such
constructions also provide temporary employment for the immediate community
members (Snyman 2012). Part of the attractiveness of tourism jobs is a location’s
19
attractiveness to potential employees, perceptions of the standard of living, sociability,
and attributes of the physical environmental (Solnet et al., 2014). However, a range of
these perceived benefits are derived by migrants that may motivate them to seek
tourism employment in countries and destinations far from their homelands (Solnet et
al., 2014). Drawing upon the review of literature provided above, tourism employment
can, therefore, be further explained as being direct, indirect and induced (de Beer 2011;
Ladkin and Szivas 2015).

➢ Tourism and Community Development

Tourism serves as one of the most popular strategies for community development,
enhancing local and national development (Aref, Gill and Aref 2010; Ibrahim and
Razzaq 2010; Aref and Gill 2011). It generates social peace, and cultural exchange,
thus, improving the quality of life in an area by increasing the number of attractions,
recreational opportunities, and services (Eshliki and Kaboudi 2012). Tourism also offers
residents with opportunities to meet interesting people, foster friendships, learn about
the world, and expose themselves to new perspectives (Eshliki and Kaboudi 2012). In
tourism, community development is evaluated under the terms participation,
empowerment, sustainability and community capacity (Aref, Gill and Aref 2010).

Furthermore, tourism facilitates community development through business mentoring

and educational opportunities for local communities, increasing skills and knowledge in
local communities, which translates to an improved livelihood amongst the community
members (Aref, Gill and Aref 2010). For local communities, tourism should be
developed in a way that benefits the local communities, strengthens the local economy,
employs local workforce, respects traditional lifestyles and cultures and is
environmentally sustainable, using local materials, local agricultural products and
traditional skills (Choi and Murray 2010). Mechanisms, such as policies and legislation,
should be introduced to ensure a flow of benefits to local communities (Choi and Murray
2010).

20
Due to the above-mentioned positive contributions of tourism, many local communities
now rely on tourism to provide economic, social, and cultural development amongst
others within their community, which has led to tourism being increasingly viewed as a
crucial component of community development (Aref, Gill and Aref 2010). As can be
seen form the literature, tourism is widely recognised as a tool for community
development. Therefore, this study intends to draw links between the literature and the
BCMM case study.

➢ Community participation in tourism

Participation is a process in which stakeholders, particularly the local communities,

influence and share control of development initiatives and the decisions and resources
which affect them Michael, Mgonja and Backman (2013), with the goal being to improve
communication between stakeholders in the interest of facilitating better decision-
making and sustainable development (Aref 2011b). Without participation, there is
obviously no partnership, no development and no programme. Hence, lack of
community participation in decision-making to implement tourism development can lead
to failure in the community development (Aref 2011b).

Participation also allows local community members to select decision makers, including
local authorities, to develop tourism policies that encourage local community members
to participate in tourism (Magi and Nzama 2009). Community participation in tourism
can support and sustain local culture, tradition, knowledge and skill, and create pride in
community heritage, especially for the community of Eshowe, living in close proximity of
SZCV (Aref 2011b). Furthermore, community participation in tourism contributes to
development, empowerment and greater self-reliance of communities (Telfer and
Sharpley 2008). Hence, involving community and considering their views in the tourism
planning and development process is a key component of effective planning (Hung,
Sirakaya-Turk and Ingram 2011; Nejati, Mohamed and Omar 2014). Furthermore,
involving community and allowing their views in the tourism planning and development
process benefits policy makers as it provides a clear understanding of local attitudes
towards tourism (Nejati, Mohamed and Omar 2014).
21
Community participation is a historical process that allows a community to become
independent, allowing a transfer of power to communities and allows respect for the
human values and beliefs (Singh 2012; Michael, Mgonja and Backman 2013).

The participatory development approach has appeared in international development

repeatedly though it has been called by different terms and applied into the
development process in different ways. Moreover, there are different ideas on types of
community participation and different experts have classified the same concept under
the same scope but with different names (Tosun 1999). Thus, it is possible to examine
types of community participation under many headings. The implication of United
Nations (1981) have classified it under three main headings. These include:
spontaneous participation; induced participation; and coercive participation (Tosun
1999). In this typology of participation, spontaneous participation is at the high end of
the participation sequence, in which the community is self-motivated and is actively
involved in the process (Hung, Sirakaya-Turk and Ingram 2011). Induced participation is
where the authorities are ultimately responsible for final decisions andthe community
merely suggests ideas for tourism development (Saufi, O'Brien and Wilkins 2014).
Coercive participation is at the lower end of the participation sequence in which
authorities are unwilling to involve the public in decision-making, and participation is
limited to policy implementation (Hung, Sirakaya-Turk and Ingram 2011).

➢ Capacity building

Capacity building is a complex and difficult term to define and refers to the narrow
notion of staff development through formal education and training programmes in order
for staff to be regarded as fully qualified personnel (Moscardo2008; Aref and Gill 2011;
Koutra and Edwards 2012). The concept capacity building was first introduced during
the late 1980’s and can be traced back to the work of Paulo Freire’ who gained
international recognition for his experiences in literacy training in North-eastern Brazil.

22
Capacity building may also refer to a process whereby “individuals, groups,
organisations and countries develop their abilities individually and collectively in order to
perform functions, solve problems and achieve objectives” (Moscardo 2008; Koutra and
Edwards 2012; Uchendu 2015). Capacity building is also an on-going process that
seeks to obtain, transfer, match and enhance skills and competencies of people,
through education and training (Crabbe, Martinez, Garcia, Chub, Castro and Guy 2009;
Yigitcanlar 2009; Swanepoel and de Beer 2012). It prepares and enables people to
enter into a range of situations with steady abilities, independencies and self-
confidence, having the capacity to actively engage in obtaining agreements and
solutions that work (Crabbe, Martinez, Garcia, Chub, Castro and Guy 2009;
Yigitcanlar2009; Swanepoel and de Beer 2012).

Furthermore, capacity building is built before a community project begins (Hamzah and
Khalifah2012). In order for capacity building to be effective, it needs to be research
based, focused on developing educational and content knowledge, collaborative,
closely linked to the local context, evaluated beyond measures of satisfaction and
involves building leadership capacity (Dinham, Crowther, Bain, Walker and Chan 2011).
Moreover, it needs to become more extensive to the point that it moves beyond the still
persistent focus on workshop-based training (Virji, Padgham and Seipt 2012). It must be
a long-term attempt that strengthens institutions and builds human resource capabilities
on an end-to-end basis, not only addressing capacity gaps in knowledge generation and
sharing, but also catalyses efforts to move from knowledge to action (Virji, Padgham
and Seipt 2012).

Capacity building is a crucial component for the development, implementation and

maintenance of effective community development (Aref, Montgomery and Ma'rof
2013:58). It cannot transpire without action of community leaders in building community
capacity, as they are able to enhance capacity by ensuring active involvement of
community members (Aref, Montgomery and Ma'rof 2013). Capacity building is also a
necessary function of governance and other local government-related activities
(Swanepoel and de Beer 2012).

23
It is used in creating awareness in the local community with regards to resources
management, development and creating an enabling environment (Swanepoel and de
Beer 2012). In tourism, capacity building includes strengthening human resources,
strengthening organisational and individual capacity, developing suitable facilities and
training for tourism, as well as assessing tourism impacts (Aref 2011; Hamzah and
Khalifah 2012). This, further assists communities to improve their ability to participate in
the tourism decision-making process, increasing qualities and assets that a community
is able to draw upon in order to improve their lives (Hamzah and Khalifah 2012: 12). For
communities, capacity building is an effective, observable and highly-valued process for
tourism developers to be able to contribute to sustainable community development,
which stimulates community development processes and addresses tourism
developmental issues (Aref and Gill 2011: 94). These issues mentioned in the literature
is important to this study and is linked to the third objective of this study on tourism
capacity building opportunities.

The levels of community, as indicated by Aref and Gill (2011: 95); and Pat-Mbano and
Ezirim (2015: 399), are divided into individual level, organisational level and community
level:

• At individual level, capacity building refers to the ability of individuals to set and
achieve objectives through knowledge and skills enhancement;

• At organisational level, it refers to anything that influences an organisation’s

performance, leadership, structure of the organisation, resource mobilisation,
physical and intellectual resources; which also includes organisation strategy,
management, business approach, and organisation linkages, such as networks
and partnerships and organisation systems; and At community level, it includes
informal and formal linkages between organisations and individuals and
organisations within the community, infrastructure within the community,
networks and resources from external support to community and focuses on
social capital developments, which includes networks, relationships between
people in a community and levels of trust and co-operation that exist within a
24
 community. All activities that community members engage in enable the
community to address problems, and improve their communities. This level of
community is necessary for the community of BCMM, as it allows community to
use any form of linkages, whether formal or informal, to be able to enhance
development of any kind within the community, thereby, allowing communal
problems to be addressed effectively.

Different concepts have been used by authors, such as Murray, Moscardo, Skinner and
Chaskin, in order to evaluate capacity of communities. These include positive attitudes,
knowledge and information, skills, education and training (which also highlights the third
objective of this study, which is to identify tourism capacity building opportunities, the
training offered to BCMM employees), access to resources, partnerships, relationships,
networks and collaborations, civic engagement, participation and involvement; a shared
vision, local support and communication (Bennett et al., 2012).

2.4 TOURISM IN SOUTH AFRICA

In the past tourism development in South Africa was restricted as the main focus was
on the mining, manufacturing and agricultural industries with small numbers of people
being attracted by the game reserves, spas and hot springs (George 2008; Saayman
2013). Tourism was believed to be an activity catered for the white race group and also
serving for a select of wealthy white visitors (Ivanovic 2008; Magi 2012; Bialostocka
2014). Other barriers included inadequate resources, lack of partnerships, limited scope
for development, and exclusion of disadvantaged groups from tourism development
(Ivanovic 2008: 19). The implementation of the apartheid policy in 1948 led to the
creation of separate tourist facilities including beaches, hotels and restaurants,
increasing exclusion of black people from the tourism industry (Frey and George 2010;
Steyn and Spencer 2011). Between 1948 and the early seventies, tourists were
attracted by South Africa’s cultural and historical attractions, game parks, beaches,
good climate with the country experiencing recurring visitors due to motives such as
visiting friends and relatives (Steyn and Spencer 2011). However, between 1976 to
1986, international visitor numbers started to decline due to socio-political barriers
25
linked to the Sharpeville and Soweto’s acts of resistance (Steyn and Spencer 2011). In
order to fix the problem caused by the Sharpville and Soweto’s acts to resistance, the
South African Tourism Board (SATOUR) was established. This Board was responsible
for domestic and international tourism marketing and introduced South Africa as “a
world in one country” and tourism showed growth with game and nature reserves
becoming world famous attractions (Steyn and Spencer 2011: 178).

Currently, the tourism industry has been declared a priority industry by the South
African government due to the substantial economic benefits it brings to the country’s
economy (Ivanovic 2008; Adinolfi and Ivanovic 2015). Since the 1994 democratic
elections, South Africa has become one of Africa’s leading tourism destinations (Butler
2010; Rogerson 2012), with international tourist arrivals increasing since the end of the
apartheid era (Lepp and Gibson 2011). In the post-apartheid era, tourism has become
one of the country’s leading industries, creating employment and generating income
(Nwafor 2012). Furthermore, tourism is one of the fastest growing industries in South
Africa and a leading source of foreign exchange earner providing employment
opportunities and contributing to poverty reduction (Nieman, Visser and Van Wyk 2008;
Moyo and Ziramba 2013). The tourism industry in South Africa also provides new
development opportunities, economic benefits for local communities, and is an
important tool for empowerment (Saarinen 2010).

Furthermore, statistics from 2012 revealed a major growth in visitor arrivals to South
Africa which totaled to 9 616 946 visitor arrivals to South Africa (South African Tourism
2014). This was a growth of 428 596 in comparison to the 9188368 visitor arrivals to the
country in 2012 (South African Tourism 2014). South Africa is also the leading
destination amongst major regional tourism destinations, such as Botswana, Egypt,
Kenya, Mauritius, and Zimbabwe, attracting about 50% of tourists (Akinboade and
Braimoh 2010). Major tourist attractions include the wine lands, culture and heritage,
ecotourism, adventure tourism, coastlines as well as the beaches (George 2008;
Akinboade and Braimoh 2010; George 2010). In 2013, tourism employment figures
were 617287 compared to 598432 tourism jobs in 2012 (South African Tourism 2013).

26
In the same year (2013), the tourism industry contributed R93.3 billion to the country’s
Gross Domestic Product (GDP) compared to R84.3 billion contributed in 2012 (South
African Tourism 2014).

World class attractions in South African cities, such as Johannesburg, Cape Town and
Durban, include nature reserves, wine routes and World Heritage sites (Donaldson and
Ferreira 2009; Rogerson 2011).Johannesburg, Cape Town and Durban have become
the foremost tourism destinations in South Africa, having a strong place in the market
due to meetings, incentives, conventions and events (MICE), which serve as major
contributors of continued growth in South Africa’s tourism industry (Donaldson and
Ferreira 2009;Akinboade and Braimoh 2010). This no doubt has encouraged longer
length of stays in South Africa by including pre- and post-event trips (Donaldson and
Ferreira 2009; Rogerson 2011; Fenich, Hermann and Hashimoto 2012), further
contributing to R4 billion in South Africa’s economy (Fenich, Hermann and Hashimoto
2012).

Although Johannesburg, Cape Town and Durban are popular tourism destinations,
tourism in South Africa faces challenges specifically with communities who have not
benefited from the ownership of the national tourism product (Rogerson 2011: 319).
This lack of ownership has led to a misrepresentation and opposition towards the
tourism sector (Frey and George 2010: 622). In order to address the situation,
government implemented Black Economic Empowerment (BEE) (Frey and George
2010: 623). BEE was introduced to encourage companies to address issues of
management, strategic representation, employment equity, skills and development as
well as corporate social investment, further leading to the BEE certification and
government tenders (Frey and George 2010: 623; Magi 2010: 124).

Despite such barriers in South Africa, the hosting of the Soccer World Cup, in 2010,
provided the country an opportunity to prove that it could host a major sport event in the
same manner in developed countries, such as Germany, Korea and Japan, which
hosted the previous world cups (du Plessis and Maennig 2011: 349; Knott, Allen and

27
Swart 2012: 112). This has positioned South Africa as a key tourism and events
destination in developing countries (South African Tourism 2010).

The White Paper on Development and Promotion of Tourism (South Africa, 1996)
outlines key economic objectives of tourism in accordance with the tourism vision, which
is “a united, sustainable and competitive tourism in South Africa which will lead to global
practice in social, environmental and cultural and responsible tourism”. These objectives
support the vision. These objectives are to: generate economic growth and foreign
exchange, by aggressively developing and promoting tourism; establish tourism as a
national priority; create sustainable employment opportunities and contribute to the well-
being of all the people of South Africa; optimise opportunities for Small Micro and
Medium-Sized Enterprises (SMMEs), specifically emerging entrepreneurs; use tourism
to aid the development of rural communities; promote domestic tourism amongst all
South Africans; encourage tourism growth and cooperation in South Africa; facilitate
balanced tourism development in South Africa; create a conducive tourism investment
climate; encourage linkages between tourism and other industries in order to curb
leakages and stimulate the multiplier effect; and lengthen the tourism season in order to
minimise the negative effects of seasonality on the industry (South Africa, 1996).

The key economic objectives of tourism are developed to support the vision of tourism
and to ensure that the positive economic impact of tourism are maximised and that the
tourism industry is sustainable. The other importance of these objectives is that they
ensure that the seasonality of tourism is addressed as it is outlined in one of the
objectives which states that one of the objectives is to lengthen the tourism season in
order to minimise the negative effect of seasonality on the industry, and most
importantly that tourism is established as a national priority. This means that the
government will ensure that tourism is marketed and potential investors, such as,
national and international investors will know about South African tourism, and as a
result the people of South Africa will enjoy the benefits of tourism practices and
activities. For the purpose of this research the economic impact of tourism will focus on
both its positive and economic impacts.

28
➢ The Positive Economic Impact of Tourism in South Africa

Tourism brings both economic and non-economic benefits and costs to the host
communities. According to Edgell (2006), the economic impact of tourism amongst
others includes the new businesses, job creation, increased income, new products,
improved infrastructure, economic diversification and economic integration of the local
economy and special services and opportunities to link with other services and
products. Tourism is a powerful economic force for improving employment, foreign
exchange, income and tax revenue. The generators of both positive and negative
impacts of tourism for a city, province, country or a destination area are tourists. The
economic impact of tourism spending is a function of the numbers of domestic and
international tourists and their expenditures. Tourism destinations are becoming
increasingly competitive as more and more destinations look at tourism to become the
new economic generator replacing declining activity in agriculture, mining and
manufacturing (Goeldner and Ritchie, 2003).

Mathieson and Wall (1982) quoted by Page & Connell (2006) and Page (2005) state
that the magnitude of the economic impacts of tourism is influenced by five factors,
which are: the type of tourism facility and attraction for tourists; the volume and level of
tourist spending; the level of economic development in the region; the extent to which
tourists spending is maintained in the region; and the extent of tourism seasonality in
the region. On the basis of a forenamed factors, it is possible to determine if the
economic impacts will be beneficial or detrimental to the host communities. The
economic impact that tourism can have on the host community or region depends on
the area, the type of attraction, types of tourism available in the tourist destination,
products or services sold and tourists spending. According to Page (2005), it is possible
to identify some of the common economic benefits of tourism based on the five factors
outlined here such as: the generation of income for the local economy; creation of new
employment opportunities; improvements to the structure and balance of economic
activities within the locality; and the entrepreneurial activity encouraged.

29
The positive impact of tourism can, therefore, be discussed under the following
subheadings, namely, balance of payments, income, employment, tax revenue and
government benefits.

➢ Income

As tourism stimulates economic activity in a destination, it assists in improving the

overall economic status of the country. Tourism can lead to an increase in the country’s
GDP. Tourism plays a major role in contributing to the increase of income of the host
population by creating jobs for the local people. The jobs range from jobs that need
skills or qualifications to general work which does require any expertise. In the Kruger
National Park (a world renowned National Park in South Africa) there is a community
situated at the Punda Maria gate and they sell their artefacts and other products to
tourists, and most of them are international tourists. That has improved the standard of
living of the community and has contributed to the economic growth of the local
communities concerned.

➢ Employment

Tourism provides both direct and indirect employment opportunities such as in hotels,
restaurants, airlines, cruise lines, and resorts which provide direct employment because
their employees are in contact with tourists and provide services to the tourists. It stands
out among major industries in creating new jobs, resisting economic downturns and
providing a major source of jobs for minorities, women and the youth. The travel and
tourism industry has proven itself to be a dependable source of job opportunities for all
groups of people in the community, as it employs people of all skill levels (Van Harsel,
1994 and Page 2005). According to van Harsel (1994) there are three (3) types of
employment which maybe generated by tourism:

➢ Direct employment

These types of jobs are created as a result of visitor expenditure and they directly
support tourism activity. Jobs are created in a hotel as tourists use the hotel and at the
same time need to be served.
30
➢ Indirect employment

These are jobs created within the tourism supply sector but not as a direct result of
tourism activity. These may refer to service suppliers supplying a service or delivering a
stock to a tourist destination.

➢ Induced employment

These are jobs created as a result of tourism expenditure as local residents spend
money earned from tourism activities. This refers to situations where if a member of a
host community sells souvenirs to tourists and he or she use that money to buy
somewhere else. What is important to the local communities is the fact that the small
businesses are the ones that dominate the travel and tourism industry. Van Harsel
(1994) states that out of 14 million travel and tourism related business firms, 98% are
classified as small businesses.

➢ Local Economic Development and Tourism

Economic development has been defined as the capacity of a national economy, whose
initial condition has been more or less static for a long time, to generate and sustain an
annual increase in its Gross National Product (Todaro, 1994). From a policy
perspective, economic development can be defined as efforts that seek to improve the
economic wellbeing and quality of life for a community by creating and/or retaining jobs
and supporting or growing incomes and the tax base (Sullivan and Sheffrin, 2003).
Economic development is therefore a process by which a nation improves the
economic, political, and social wellbeing of its people. The success of a community
largely depends upon its ability to adapt to the dynamic local, national and international
market economy. Each community has a unique set of local conditions that either
enhance or reduce the potential for local economic development, and it is these
conditions that determine the relative advantage of an area in its ability to attract,
generate and retain investment (Swinburn et al., 2006).

31
Just as was the case with economic development, Local Economic Development means
different things to different people. Local economic development can be defined as a
process by which public, business and non-governmental sectors work collectively to
create better conditions for economic growth and employment generation. The purpose
of local economic development is to build up the economic capacity of a local area to
improve its economic future and the quality of life for all. The ability of communities to
improve the quality of life, create new economic opportunities and fight poverty depends
upon them being able to understand the processes of LED, and act strategically in the
changing and increasingly competitive market economy (Swinburn eta/., 2006:1).

Nel and Humphrys (1999:27) define LED as the process or strategy in which locally
based individuals or organisations use resources to modify or expand local economic
activity to the benefit of the majority in the local community. Local initiatives may be
either self-generated by community members or stimulated by external agencies such
as a higher level government. According to Trousdale (2003:1), LED is a participatory
process where local people from all sectors work together to stimulate local commercial
activity, resulting in a resilient and sustainable economy. LED is seen as a tool to help
create sustainable jobs and improve the quality of life for everyone, including the poor
and marginalised. The process seeks to empower local participants in order to
effectively utilize business enterprise, labour, capital and other local resources to
achieve local priorities.

Zaaijer and Sara (1993:129) define local economic development as a process to be

driven by local residents. It involves identification of resources endowed locally,
including ideas and skills necessary towards the anticipated economic growth and
development. This initiation advocates recognition of the importance of involving people
for the benefit of the same people. It exposes the full effective and efficient utilization of
resources that comprises resources of natural resources and human labour.

LED is an outcome, based on local initiative and driven by local stakeholders. It involves
identifying and using primarily local resources, ideas and skills, to stimulate economic
growth and development.
32
The aim of LED is to create employment opportunities to the benefit of all residents.
LED is an ongoing process and encompasses all stakeholders in a local community
involved in a number of different initiatives, aimed at addressing a variety of socio-
economic needs in that community. LED's aim is to address a socially and economically
unacceptable situation (DPLG, 2003).

The concept of LED arose in the context of globalisation. As trade expanded across the
world, many producers of goods and services faced competition from producers and
countries that were able to provide goods and services at lower prices and sometimes
better quality. Globalisation brings both opportunities and threats. The opportunities lie
in expanding trade beyond the boundaries of local and regional and national boundaries
through competitive production techniques, value addition to local produce and
innovation in local economies. The threats lie in each player's ability to adapt to global
economic forces and in having to produce goods and services at costs which can
compete on international markets. This means that the technology used and standards
of production need to meet international requirements (World Bank, 2003).

LED has evolved as a policy approach in the early 1970s by municipal governments
realising that businesses and capital were moving between locations for competitive
advantage. By actively reviewing their economic base, communities gained an
understanding of the opportunities for, and obstacles to, growth and investment. With
this newfound understanding, communities attempted to expand their economic and
employment base by devising and undertaking strategic programs and projects to
remove obstacles and facilitate investment (Swinburn eta/., 2006:1-2).

The understanding of LED internationally has been recognised as a response to key

contemporary trends such as increasing decentralisation of power and decision making
to the local level. Globalisation forces linked to changing local conditions have also
elevated LED as an important concept. These trends are not unique to any part of the
globe. Though occurring at different rates, the effects of globalisation and global
economic crises have helped to ensure that local economic initiatives and self-reliance
are a discernible trend around the world (Zaaijer and Sara, 1993:3).
33
The World Bank (2001) summarises the post 1960 understanding of LED through three
waves of development. In each of these waves LED practitioners have developed a
better understanding of successful and unsuccessful programs. Although LED has
moved through each of these waves, elements of each wave are still practiced today.
The first wave was from the 1960s to the early 1980s. During this period, the LED focus
was on the attraction of manufacturing investment, hard infrastructure investment and
attracting outside investment. The second wave focused on retaining and growing of
existing local businesses. The emphasis was still on inward investment attraction, but
usually this was becoming more targeted to specific sectors. The late 1990s and
onward can be classified as the third wave. During this wave of LED, greater focus was
placed on soft infrastructure investments, public-private partnerships, networking and
making the entire business environment more conducive to business (World Bank,
2001).

In developing countries and regions with high levels of unemployment and poverty,
pro-poor tourism can make a difference in poor communities. Pro-poor tourism provides
local poor or marginalized people with the ability and position to obtain economic
benefits without excluding them from opportunities. Benefits could be obtained through
employment and establishing of small tourism related businesses, benefits from
infrastructure such as roads, water, electricity and communication and lastly
empowerment through participation and decision making (Sloan et al., 2005).

There are three ways in which tourism could reduce poverty in a specific locality. Firstly,
through direct impacts such as wages, employment and training, secondly, through
indirect impacts such as value chains from sub-sectors including food, construction,
transportation, and many other sectors. Evidence indicates that the indirect impact of
tourism could be adding approximately 60 percent on top of the direct impacts of
tourism. Lastly, tourism has a range of dynamic impacts including livelihood strategies
for households, improved business climate for small business development, and
infrastructure development (Ashley, De Brine, Lehr and Wilde, 2007).

34
According to Ashley et al. (2007), tourism as an industry has a substantial impact
on local people and local economies in developing countries. It is estimated that
earnings of low skilled people within a specific geographic tourism area are
approximately equivalent to a quarter of tourist spending within that area. This suggests
that poor or low income earning tourist labourers benefits directly from tourist spending.

Tourism’s economic impact is felt in many economic sectors, but as a sector its
boundaries of contribution is difficult to define. Most local economic sectors are in some
way linked to tourism. Tourism entails all services and goods that are provided
specifically for visitors that would not have used such goods and services
otherwise. According to the Organization of American States (OAS) (2010), the tourism
spending multiplier effect is equal to 1.60, meaning that for every one unit of currency
spent on tourism, the impact on the total economy is equal to 1.6 units. Tourism can
also benefit the local economy in terms of value-added services and products,
especially for countries with effective domestic agricultural sectors. To further increase
value-added benefits of tourism, travel services must be mostly owned and managed by
local people. Tourists usually travel to high quality environmental regions which
usually exclude industrial areas, but include regions of natural beauty within a
rural setting. Tourism could therefore be a driving force in rural regions with limited
industrialization, but with some agricultural value. A strong linkage with the
agriculture sector will also limit leakages through large scale imports of
products. In rural settings, agri-tourism can add to the viability of small
commercial farming. Agri-tourism includes farm tours, farm guest-homes,
entertainment such as festivals, petting farms and other events. Toader et al (2012)
found that in rural Romania rural tourism requires innovative activities for success.
Examples of such innovation include product innovation through the introduction of
new products and events and improvement in current products, organizational
innovation with improved collaboration between local stakeholders and lastly
marketing innovation such as tourism fairs and the use of social media. Tourism
compares favourably with other economic sectors as an employment generator
(Goleman and Boyatzis, 2008).
35
Tourism plays an important role in the employment creation process, especially in
developing regions. According to Baum (1995) the following characteristics regarding
employment exist within the tourism sector namely, high levels of fluctuation of
demand for services and products, domination by self-employment and small family
firms, labour intensity, high labour turn-over due to an image or perception of low levels
of pay, low skills and long working hours, and lack of training. By addressing some of
these issues, tourism development can be improved. According to the Organization of
American States (OAS), tourism is expected to continue to grow due to factors such as
population growth, rising incomes, globalization and integration of world economies
and therefore improved methods of managing tourism can have a positive effect on
the economy (OAS, 2010). The Huron Business Development Corporation (2004) listed
a number of factors for successful local economic development (LED) with a focus
on the tourism sector which include political stability and commitment,
investment in infrastructure, effective policies and planning, broad participation by all
stakeholders, capacity, building on strengths, promotion of entrepreneurship and
partnerships.

The tourism sector has strong linkages with other economic sectors and these linkages
need to be optimized for accelerated economic development. Linkages with sectors
such as retail, agriculture, transport and construction will enhance the local multiplier
effect and eventually create better economic growth and employment opportunities
(Akama and Kieti, 2007). There are however some challenges with tourism
development in developing regions which include; lack of skills, poor cooperation
between stakeholders and safety conditions in the area just to name a few (UNWTO,
2006). In order to ensure sustainable tourism development that assists in economic
growth, the following key strategies are proposed by the International Monetary
Fund (IMF) (2006) and Honey and Gilpin (2009):

• Identify and protect natural and cultural assets that allows for the
comparative advantage in tourism for a specific region.
• Ensure local participation and ownership in tourism development.

36
 • Build capacity in institutions and infrastructure.
• Formulate a comprehensive and integrated tourism development strategy as part
of the local economic development strategy including aspects such as marketing.
• Reduce crime and corruption.
• Promote domestic tourism.

The potential of tourism to significantly contribute to economic development is based on

the uniqueness of the sector. These unique factors could include the diversification of
the economy, it allows for export growth, attracts people to even the most remote
locations with unique culture and natural attractions, is labor intensive and supports a
range of local skills from low to high skills, it promotes small-scale enterprise
development, and it allows infrastructure and communication network development.
A further benefit of tourism as a developmental sector is that it is usually
considered to be price and income elastic. This means that minor changes in income
or price could affect the sector, but prices and income are relatively stable in the tourism
sector (Vaugeois, 2000; Honey & Gilpin, 2009; Richardson, 2010).

➢ Principles of LED and Tourism

Rogerson (2002) in a review of the literature identified ten key principles for successful
tourism-led local economic development. The principles are listed below:
1. A need for realism by policy-makers as to whether tourism is a viable option‖.
2. The Need for Holistic Development
3. Tangible Benefits must be distributed to Poor Communities
4. Economic Activities should be Diverse
5. Prevent a ‘Tourist Oasis’
6. Keep Developments Small and Organic
7. Encourage Local Networks
8. Monitor Development
9. Maximise Community Participation
10. Good Governance, Cooperation and Institutional Thickness

37
➢ Local Economic Development in South Africa

Across the world high poverty and unemployment rates prove to be two of the most
pressing issues faced in the modern world. This is no different for South Africa. The
country is plagued by significantly high poverty and unemployment rates, contributing to
a dwindling economy. However, tourism has been cited as a possible solution to
alleviate poverty and unemployment as it could lead to the creation of numerous direct
and indirect linked jobs. Numerous international organisations such as the UNWTO and
WTTC propose tourism as key factor for driving socioeconomic advancement, across
the world and especially for developing countries. It is reasoned that if tourism is
implemented and managed correctly, the industry has the potential to increase
economic growth, improve education, food security and as a result contribute to
alleviate poverty. Furthermore, it could even contribute to environmental protection and
awareness. With this being said, the industry is often over-looked in its potential to
contribute to economic growth and development. Furthermore, research on the impact
tourism has on local economies, especially in South Africa, has been limited. It is for this
reason that this study aimed to achieve the primary objective to determine the impact of
tourism on local economic development (LED), by analysing the Buffalo City
Municipality, Eastern Cape, South Africa.

In South Africa, local economic development is seen as one of the most important ways
of decreasing poverty. Local economic development must aim to create jobs by making
the local economy grow. This means that more businesses and factories should be
started in the municipal area. As part of the Integrated Development Planning(IDP), key
stakeholders in a municipality must come together to reach agreement and take
decisions to make the economy grow and create income opportunities for more people,
especially the poor. National government makes policy and provides funds, research
and other support for local economic development. Municipalities decide on LED
strategies and the process of arriving at a LED strategy must be part of the Integrated
Development Planning process.

38
The LED strategies should be based on the overall vision outlined in the IDP and should
take into account the result of the analysis done to identify problems and prioritise
development projects. It should also look at things like integrating our residential and
work areas, building development corridors between areas and supporting the economy
with good public transport. National and Provincial government provides support for
municipalities in developing local economic strategies The Department of Provincial and
Local Government has identified the following as key principles underlying LED:

➢ Poverty and unemployment are the main challenges facing South Africa. LED
strategies must prioritise job creation and poverty alleviation
➢ LED must target previously disadvantaged people, marginalised communities
and geographical regions, black economic empowerment enterprises and
SMMEs to allow them to participate fully in the economic life of the country
➢ There is no single approach to LED. Each locality may develop an approach that
is best suited to its local context
➢ LED promotes local ownership, community involvement, local leadership and
joint decision making
➢ LED involves local, national, and international partnerships between
communities, businesses and government to solve problems, create joint
business ventures and build local areas
➢ LED uses local resources and skills and maximizes opportunities for
development
➢ LED involves the integration of diverse economic initiatives in an all-inclusive
approach to local development
➢ LED relies on flexible approaches to respond to changing circumstances at local,
national and international level

The evolution of LED policy in post-1994 South Africa is closely associated with the
transition to developmental local government. As early as 1995, Constitutional debates
on the future form and shape of local government articulated a far more proactive role
for municipalities.

39
The declaration of local government as a sphere (rather than a tier) of government
reflects the importance that was attached to local state actors during that early period.
The final version of the Constitution itself declared that a fundamental objective of local
government was to promote social and economic development in localities. The White
Paper on Local Government (1998) introduced the concept of developmental local
government. This concept is defined as a local government committed to working with
citizens and groups within the community to find sustainable ways to meet their social,
economic and material needs, and improve the quality of their lives (RSA, 1996a). The
policy document makes it quite clear that local government is not responsible for
creating jobs. Instead, it will be responsible for ensuring that overall economic and
social conditions of the locality are conducive to the creation of employment
opportunities. Therefore, local government is charged with creating an enabling
environment (Nel, 2001).

LED is a strategy to fight the plight of the poor and unemployment directly, but also has
other indirect benefits for human development at a local level. An LED strategy need to
include at least the creation of jobs by attracting new business, achieve local economic
stability and result in a diverse economy. LED strategies should focus on stimulating
businesses that use local resources for exporting of final products elsewhere (van Wyk,
2004). The South African Department of Local Government (DPLG, 2003) asserts that
in adopting LED as a strategy, the South African government is encouraging people at
all levels of society to participate in economic decision making which explores creativity
and builds entrepreneurship at all levels of society. Given the challenges that the
country faces in job creation and poverty eradication, LED builds a platform for bringing
all hands on deck in working towards sustainable long term solutions. The rational is
that initiatives to develop urban management capacity must be supported by provincial
and national government, but the management of the urban areas themselves can best
be carried out at a local level where decision-makers are in touch with local needs and
conditions.

40
The framework for LED defines functions of three key tiers of the government:

• National government. A national framework of laws, policy (including standards) and

funding mechanisms to support urban development throughout South Africa;

• Provincial government. Within the national context, to establish a provincial framework

of laws, policy and funding mechanisms sensitive to the specific realities and needs of
the cities and towns within the province and capacity building and support for
municipalities; and

• Local government. The primary responsibility of municipalities is to ensure integrated

urban planning and management for the efficient functioning of cities and towns
(Department of Housing, 1997).

The vision that forms the core of the Department of Provincial and Local Government's
(DPLG) policy guidelines for implementing local economic development in South Africa
is of creating robust and inclusive local economies that exploit local opportunities,
address local needs and contribute to national development objectives such as
economic growth and poverty eradication (DPLG, 2005). From the evolving practice of
LED described above, ten principles guide LED thinking in South Africa from a
government's perspective (DPLG, 2006): -

➢ Through a developmental approach, government has a decisive and

unapologetic role to play in shaping the economic destiny of our country;
➢ Creating an environment in which the overall economic and social conditions of
the locality are conducive to the creation of employment opportunities is the
responsibility of local government;
➢ Local Economic Development is an outcome of actions and interventions
resulting from local good governance and the constant improvement and
integration of national priorities and programs in local spaces;
➢ Inward investment from the state or private sector will only be effective where the
potential and competitive advantages of each area are known and exploited;

41
 ➢ Promoting robust and inclusive local economies requires the concerted,
coordinated action of all spheres and sectors of government centred on the
application and localisation of the principles espoused in the National Spatial
Development Perspective (NSDP);
➢ Locally owned appropriate solutions and strategies must emerge to support
national frameworks in both rural and urban local spaces and should promote
sustainable development and sustainable human settlements;
➢ South Africa competes in a global and increasingly integrated world economy
whose threats must be minimised and whose opportunities must be exploited;
➢ Private companies, including social enterprises and cooperatives, form the heart
of the economy and have a crucial role to play as partnerships with public and
community role players that will ultimately stimulate robust and inclusive local
economies;
➢ People are the single greatest resource and including all citizens in development
and increasing their skills leads to increased opportunities for stimulating local
economies;
➢ Local initiative, energy, creativity, assertive leadership and skills will ultimately
unlock the latent potential in local economies and will shape local spaces (DPLG,
2006).

The Department of Local Government (DPLG) (2006) has set the following
objectives, flowing from the above guiding principles:

➢ To support local economies in realising their optimal potentials and making local
communities active participants in the economy of the country;
➢ To elevate the importance and centrality of effectively functioning local
economies in growing the national economy;
➢ To wage the national fight against poverty more effectively through local level
debates, strategies and actions;
➢ To improve community access to economic initiatives, support programmes and
information;

42
 ➢ To improve the coordination of economic development planning and
implementation across government, and between government and
nongovernmental actors; and
➢ To build greater awareness about the importance and role of localities and
regions which play an increasingly significant role as points of investment
facilitated by supportive national policies (DPLG, 2006).

LED strategies for Municipalities

Developing an LED Strategy requires that a municipality does an analysis of the existing
situation, look at opportunities for growth and decide on the best strategies to achieve
their goals.

The following are some key strategies that a municipality can put in place to meet its
goals:

➢ Developing the infrastructure of the municipality to make it easier for businesses

to operate (i.e. houses, transport, roads, water and electricity etc). This is mainly
addressed in the IDP of the municipality. Whilst it contributes to providing better
living conditions it also creates an environment that promotes economic growth.
➢ Promoting tourism, which currently is one of the biggest growth industries in
South Africa. This includes developing local tourist sites and facilities, improving
security and ensuring that all residents are welcoming of tourists.
➢ The municipalities tender and procurement policies must favour small contractors
and emerging businesses. Where these companies cannot provide the required
services, steps must be taken to get larger companies to enter into joint ventures
with smaller partners.
➢ Marketing the municipality, its infrastructure and people to local and international
businesses. This can be combined with service centres that provide assistance
and information to businesses that wants to start operations in the municipality.

43
Local Government Promoting Local Economic Development
The establishment of the provincial and local government spheres in South Africa
emanated from the political compromises reached at CODESA (1991 – 1994), rather
than primarily being based on a functional premise. Amongst these compromises were
the independence of key central institutions and the inclusion of a provision for a
constitutionally guaranteed Bill of Rights that included protection of private property as a
fundamental human right. At the local level, even more important concessions were
made during the negotiations - in contrast to the arrangement at national and provincial
levels – power sharing government was entrenched at the local level until the first local
government elections in 1996.

The ambit of local government’s role in the national development process stems from
the Constitutional (1996)13 definition of the role of local government. However, before
municipalities could be fashioned into the institutions envisioned by the Constitution, it
was first necessary to effect institutional transformation, and particularly the
consolidation of apartheid-based municipal government. This was a complex
undertaking and was realised through a carefully designed three phase process to
affect the “normalisation” of South Africa local government.

The heart of the South African Local Government system is its developmental
character, and it was designed to both democratise local governance and serve as the
font of social and economic development. The 1998 White Paper on Local 13 (Republic
of South Africa, 1996) Government (WPLG) captures the developmental intentions of
the local governance sphere as follows:

“developmental local government is local government committed to working with

citizens and groups within the community to find sustainable ways to meet their social,
economic, and material needs and improve the quality of their lives. This
comprehensive understanding of the ambit of local government’s role in the national
development process stems from the Constitutional definition of the role of local
government”.

44
The Constitution (1996) envisages a local sphere of government consisting of
municipalities which are established for the whole of the territory of the Republic. The
objectives for this local sphere of government, municipalities, are to strive, within its
financial and administrative capacity, to:

➢ provide democratic and accountable government for local communities;

➢ ensure the provision of services to communities in a sustainable manner;
➢ promote social and economic development;
➢ promote a safe and healthy environment; and
➢ encourage the involvement of communities and community organisations in the
matters of local government (Republic of South Africa, 1996).

The establishment of a decentralized system of government in South Africa after 1994

has involved a progressive devolution of developmental power to local governments,
backed up by an increasing level of financial support through the equitable share
allocations and a set of dedicated capital grants for infrastructure from the national
budget. This has been accompanied by moves to build ‘developmental local
government’ as set out in the Local Government White Paper in 1998 and envisaged in
the 1996 Constitution. The White Paper put developmental local government firmly at
the centre of its proposals. It defines this as local government committed to working with
citizens and groups within the community to find sustainable ways to meet their social,
economic and material needs and improve the quality of their lives. The White Paper
spells out four interrelated characteristics of developmental local government:

➢ maximising social development and economic growth;

➢ integrating and co-ordinating;
➢ democratising development; and
➢ leading and learning (The Department of Provincial and Local Government,
1998).

The Local Government Transition (amendment act) Act of 1996 requires municipalities
to promote economic and social development. Metropolitan areas are empowered to
promote integrated economic development. The LGTA requires that local authorities
45
determine, formulate and implement an IDP. The IDP (Integrated Development Plan) is
a general framework under which all planning for key social, economic and
environmental sectors fall (RSA, 1996).

The Constitution of the Republic of South Africa (Act No 1 08 of 1996) establishes local
government as a separate sphere of government responsible for service delivery, and
imposes a specific set of responsibilities on national and provincial spheres of
government to support and strengthen the capacity of municipalities. Section 152 and
153 of the Constitution (Act 1 08 of 1996) defines one of the objectives of local
government as to structure and manage its administration, budgeting and planning
processes to give priority to the basic needs of the community to promote social and
economic development of the community. Several basic needs rights of the community
are stipulated by the Constitution, which have to be addressed or ensured by
government (RSA, 1996).

The statutory principles for developmental local government are contained in the
legislation of the Municipal Systems Act of 2000. The Local Government Municipal
Systems Act (32/2000) sets out the internal systems of municipalities that enable
municipalities to operate in such a way that they move progressively towards the social
and economic upliftment of local communities, and ensure universal access to essential
services that are affordable to all. In Section 26 of the Act (32/2000) it is stipulated that
each local municipality must formulate an integrated development plan (RSA, 2000).
LED is one of the dimensions within the IDP and therefore, local municipalities are
legally obliged to plan and pursue LED activities. A key component of the Act is the
issue of Integrated Development Planning of which LED is regarded as a core aspect.
The Integrated Development Plan (IDP) is conceptualised as a tool to assist
municipalities to achieve their development mandates. LED is an essential part of the
developmental mission of local government, and it is linked to the overall approach to
planning and public investment (DPLG, 2000). It is clear that municipalities must be the
local coordinating agents for the implementation of the local economic development
initiatives, in close partnership with the private sector and community interests.

46
To successfully bridge the historical divides, municipalities will have to become more
development orientated, and be concerned with the upliftment of the local community.
For LED to be successful, the process must include the participation of local political,
community and business actors in the economic and social development of their urban
area or region. It must also be built on a common vision for the short, medium and long
term, and must identify and emphasise local comparative advantages (Department of
Housing, 1997).

The local municipality can take up different roles in the promotion of LED. In this role,
the municipality acts as a co-ordinating body. An important tool for co-ordination is the
Integrated Development Plan, which draws together the developmental objectives,
priorities, strategies and programmes of a municipality. The lDP can be used to ensure
that LED Initiatives are co-ordinating with other municipal programmes, and
approximately linked to national and provincial initiatives.

In this role the municipality improves the investment environment in the area. This could
be done through streamlining development, or improving planning procedures and
zoning regulations. Municipalities stimulate business creation or expansion. The
municipality may provide premises at low rentals to Small, Medium and Micro
enterprises (SMME's), or compile brochures on local investment opportunities, or
promote a particular sector or activity in a key venue.

Entrepreneur in this role the municipality takes on the full responsibility of operating a
business enterprise. A municipality can also enter into a joint venture partnership with
the private sector or a NGO (DPLG, 2003). At one level the municipality can act as a
coordinator of local activity. The important tool for local authorities is the lDP. With a
facilitator role that they are given, the local authorities create a conducive environment
for local economic development through the lDP. The stimulator role involves business
stimulation through the favouring business development. The entrepreneur role is where
the municipality takes the full responsibility of running a business. The municipality can
assume different roles at different times and may choose to play a more direct role in
some LED initiatives than in others.
47
Almost all efforts aimed at developing the local economy will require some input,
participation and support from local government. The Buffalo City Municipality Economic
Development and Agencies states that local government is a primary, but not an
exclusive institution for LED. Within this context, the key roles that the local government
can play are summarised as (EDA, 2006):

➢ To provide leadership and direction in policy making (by-laws and processes to

regulate land in manner that reduces the costs of doing business and maximises
the involvement of people in the local economy);
➢ To administer policy, programme and projects (the core function of anybody or
structure responsible for LED is to co-ordinate and maximise the impact of
programmes and projects with respect to growth and development); and
➢ To be the main initiator of economic development programmes through public
spending, regulatory powers, and (in the case of larger municipalities) their
promotion of industrial, small business development, social enterprises and
cooperatives (DPLG, 2006).

Role of Tourism in Local Economic Development

A large body of studies have analysed the role of tourism in local economic
development in both developed and developing countries. Tosun (2000) investigated
the challenges to sustainable tourism development in Turkey. It was found that the
factors that have emerged as challenges to sustainable tourism development related to
priorities of national economic policy, the structure of public administration, an
emergence of environmental issues, over commercialisation, and the structure of
international tourism system. It concludes that although the principles of sustainable
tourism development are beneficial, their implementation is an enormously difficult task
to achieve and owing to the prevailing socio-economic and political conditions in the
developing world. Hence, any operation of principles of sustainable tourism
development necessitates hard political and economic choices, and decisions based
upon complex socio-economic and environmental trade-offs.

48
Moreover, it states that implementation of these hard decisions may not be possible
unless international organisations encourage and collaborate with governments of
developing countries to implement the principles of sustainable tourism development.

In another study in South Africa Binns and Nel (2002) employed the case study
approach to study the extent to which local government uses economic, social and
environmental resources to promote tourism as a local economic development strategy
in two previously disadvantaged communities – one in KwaZulu–Natal and the other in
the Western Cape. The findings generally suggest that tourism-based LED can serve as
both a catalyst for socio-economic development, as well as a mechanism through which
the negative effects of apartheid can be partly addressed.

South Africa as a young democracy has a conservative economic history which led to
its economy being strongly rooted in commodities (e.g. minerals and agricultural
produce). During the apartheid era, the majority of South Africa's citizens were deprived
of land, skills and opportunities to establish businesses, consequences of which are
deep rooted challenges in re-building the economic competence of the country. In an
attempt to address the inequalities of the past, the South African government has
undertaken a number of economic policies. At the heart of the economic transformation
has been the adoption of a local economic development framework, which underpins
planning and employment creation at the local level or municipalities (DPLG, 2003).

According to Mufamadi (2000), LED is an outcome based local initiative which is driven
by local stakeholders. It involves identifying and using primarily local resources, ideas
and skills to stimulate economic growth and development. The aim of LED is to create
employment opportunities for local residents: alleviate poverty, and redistribute
resources and opportunities to the benefit of all local residents. It is widely accepted that
sustainable tourism occurs when a local area pursues activities to develop their tourism
industry with an emphasis on balancing economic returns with poverty alleviation,
resource protection and the interests of local residents.

49
The German Forum on Environment and Development (1999) defined sustainable
tourism as follows:

“Sustainable tourism has to meet social, cultural, ecological and economic

requirements. Sustainable tourism holds a long-term view, for present and future
generations, ethically and socially just and culturally adapted, ecologically viable and
economically sensible and productive.”

In recent years, sustainable tourism has emerged as an increasingly important part of

any economy because it is not so dependent on financial capital or major infrastructure
and is, therefore, an entry sector that can achieve quick results for poorer areas. It is
also seen as a win-win option, designed to meet the economic needs of a community
without degrading the cultural and natural environment. Despite the fact that tourism
has emerged as a valuable tool for LED, it is not without limitations.

According to Rogerson (2002), for any locality to be successful in terms of tourism as a

driver for development, three crucial preconditions must be satisfied. First, localities
must develop a total tourism product or portfolio of products which will attract visitors
(Davidson and Maitland, 1997). The tourism product is viewed as a combination of
resources and services. Resources constitute the initial attraction that the destination
has for visitors whereas services are provided to make possible or enhance the visit,
and supplied mainly, or in some cases entirely, for tourists. As argued by Smeral (1998)
the competitive position of any tourism destination is determined to a large extent by the
diversity and quality of its resources and services. Specifically, quality is seen as a
significant factor impacting the competitiveness of tourism spaces.

According to Davidson and Maitland (1997), the resource base of any locality comprises
its natural resources (e.g. climate, environment, landscape), built environment
resources (historic sites, retailing attractions and the like) and socio-cultural resources
(including arts, culture, festivals, sports attractions).

50
The appropriate packaging and marketing of the unique combination of resources of
localities in terms of 'imaging' a place is essential for its success. Essential services as
part of a locality's tourism product would include transport services (provision of roads,
airport facilities), hospitality services (accommodation, restaurants and bars) and critical
support services (tourist information centers, conference or guide services) which are
geared to attract visitors and enhance their experience. Overall, it is evident that the
attractiveness of particular tourism spaces arises from its blend of resources and
services. As pointed out by Davidson and Maitland (1997), without such a mix, a place
will not work as a destination.

The second factor is locality development (Helmsing, 2001). Locality development

includes several components, including participatory local planning, improvement of
land use regulation and the creation and expansion of economic and social overhead
capital, including local training institutions (Tosun, 2000; Helmsing, 2001). A typical
example would be establishment of local training institutions aimed to provide
necessary skills for employment in tourism or for enhancement of tourism
entrepreneurship opportunities through small business development. The last factor is
the effective planning and management of tourism at destinations (Davidson and
Maitland, 1997).

Generally, tourism destination management involves a partnership between public and

private sectors. On the one hand, the planning and development of tourism at
destinations is seen as far too important to be left solely in the hands of private sector
entrepreneurs, whose primary concern is profits which often may have no long-term
allegiance to the locality as a whole. On the other hand, if tourism development is
dominated by the public sector then it is viewed as unlikely to be developed at an
optimum rate from an economic point of view (Bramwei and Sharman, 1999).
Accordingly, a third approach, the so-called public-private partnership, has been touted
as the best approach for the tourism spaces to be created and sustained (Law, 1993;
Agarwal, 1999).

51
Challenges Associated with Tourism
Although tourism can bring about valuable economic benefits, it can also generate
negative impacts. Boo (1991) cited by Zupan (2003), states that tourism in general is an
unstable and greatly unpredictable source of income influenced by uncontrollable
factors such as political instability, weather and international market whims. The
negative impact of tourism can be discussed under the following subheadings, namely
inflation, opportunity costs, dependency, seasonality, income and employment.

➢ Inflation

Tourism development often creates inflationary effects on the local economies, relating
to land, property and goods. Growth of tourism creates additional demand for land and
competition. The potential buyers force the price of land to rise. The demand for more
hotels, vacation homes and tourist facilities may bring sources of income to builders,
real estate agents and landowners, but the local residents are forced to pay more for
their homes and taxes because of the increased land values (Wall & Mathieson, 2006).
The increased demand for land increases the price. While this is beneficial to those
selling property and the land, it has a negative impact on the local population, especially
those that are not involved in tourism business. The local people find themselves having
to compete for land and housing with the tourism development interests. For example,
Wall and Mathieson (2006) and Page (2005) show the impact of inflation by stating that
inflation and unemployment place great pressure on local resources and encourage the
government to expand the tourism industry in an attempt to rejuvenate the economy. As
a result, the local people may migrate because of these pressures to go and look for
employment because of lack of domestic employment that comes with tourism so that
they can afford the necessary services that they are competing for with the tourism
industry or destinations.

52
➢ Opportunity Costs

According to Page (2005) and Wall & Mathieson (2006), opportunity costs relate to the
time, efforts and money of developing tourism at the expense of other areas of
investments. The money that the government will use to invest in tourism will not be
available for other uses. Host communities feel left out and rejected when more money
is being spent to develop tourist facilities whereas there are some of the services that
they do not have access to. For example, in the Madikwe Game Reserve in the Zeerust
area, the local people resent the game reserve mainly because much attention is being
given towards the development of the game reserve whereas the local people do not
have access to basic needs such as electricity and water (TRACK, 2002).

➢ Dependency

Page and Connell (2006) and Page (2005) state that heavy reliance or dependence on
a single industry in a region or a country is very risky in the long run. By relying too
heavily on tourism for their livelihoods some tourist destinations have made themselves
vulnerable to changes in tourist demand. Although tourism is a growth industry and the
total volume of tourist traffic is likely to increase in the foreseeable future, all
destinations may not share in that growth (Wall & Mathieson, 2006). Tourism scholars
such as Jafari (1987) and Wilkinson (1987), cited by Wall and Mathieson (2006) indicate
that tourism is highly susceptible to changes in price, fashions and the growth and
competitiveness of new destinations as well as to outside changes such as global
economic trends and, political and security situations in the industry. Political unrest at
one destination can rapidly reduce the demand for that location and, at the same time,
divert it to others. Economic dependency on tourism is a much criticised policy,
particularly for less developed countries, particularly because of the unpredictable
nature of tourism. It is advisable and therefore preferable for a destination to attract a
broad base of tourists so that, if there is any downturn in one particular market, then the
consequences are not so damaging and do not affect the whole economic state of the
tourism industry (Wall and Mathieson, 2006).

53
➢ Seasonality

Seasonality is one of the major disadvantages in tourism and can have negative
economic effects on a tourist destination and the local population (Wall & Mathieson,
2006). Page (2005) refers to tourism as a fickle industry, because it is highly seasonal.
This has implications for investment and the type of employment created. Tourism
employment is often characterised as being low skilled, poorly paid, of low status and
lacking long-term stability. Even though high season in tourism may bring the
opportunity to generate significant revenue from tourism, the economic gain must be
sufficient to allow an income which will support individuals and the economy throughout
the year.

An incident of seasonality generally means that employees in the tourism industry have
jobs for a certain part of the year. Profits in the tourism industry have to be made in a
shorter time period than in most industries and spreading them across the year may not
seem as lucrative as imagined. Others, depending on climate and location, attempt
market diversification, that is, they introduce different products in one establishment so
that when it is off-peak/season for other products others are still in peak-season. They
also promote new products, and introduce incentives for customers (Wall & Mathieson,
2006). For example, during school holidays for instance if a couple visits a tourist
destination like a hotel and sleeps there for few nights and brings along a child, the child
may not pay for breakfast or may pay half price for accommodation. Alderman (1994, in
Zupan, 2003) emphasises the impact of the seasonality of tourism and, indicates that it
is not profitable to have capital equipment idle during some parts of the year because it
decreases the return on investment and infrastructure. At times tourism may cause
labour shortages when its seasonality coincides with the peak agricultural harvest and
this can possibly lead to an increased demand for agricultural imports, which results in
costs known as leakages.

54
➢ Leakages

In most cases the foreign exchange generated by tourism activities may not benefit the
local economy, because the profit made usually is leaked to foreign countries. Foreign
investors like multinationals (MNCs) that control accommodation, travel and tourism
organisations receive large portions of tourist spending. Leakages may occur through:
repatriation of profits generated from foreign capital investment; vertical integration; not
sourcing services and goods locally; payment for holidays made in the generating
country; and ownership of transport (Cooper, et al, 2000). For example, Forever Resorts
is a foreign brand and in most cases they send foreign managers to countries where
they have branches to manage their brands. Bull (1995, cited in Page & Connell, 2006)
indicates that the large and well developed destinations demonstrate the lowest leakage
rates as they have supply industries which can compete with foreign imports and,
therefore, retain more money within the local or regional economy. The less developed
countries have a higher propensity to import due to lack of supporting industries. In this
case the tourism multiplier effects cannot develop to its potential as most of the tourist
revenue filters out of the destinations. For example, Fletcher (1988) and Opperman and
Cohen (1997, cited by Page & Connell, 2006) state that leakages of between 27-35%
are experienced in Singapore and that about 53% of every US dollar leaks out of the
Pacific Islands to Palau. (De Holan and Phillips, 1997, cited in Page & Connell, 2006)
state that leakage as high as 75% occurs in Cubafor reasons such as: lack of industries
producing goods and services to support tourism; inadequate distribution systems; the
enormity of a firm’s inefficiencies in the local economy; and the presence of international
hotels.

➢ Income and Employment

The promoters of tourism always promise jobs and improved incomes to the host
communities, but in many cases such promises are not fulfilled. For example,
managerial posts, better paying jobs require highly skilled people and you find that there
are no people with such skills in the local areas, and as a result they end up hiring
people from outside the country to fill such positions (Wall & Mathieson, 2006).
55
In other cases, the income generated may not benefit the poorest in the society. Page
and Connell (2006) indicate that the poorest may not benefit because firstly, the income
generated may leak out of the destination to a foreign investor, and secondly, it may
filter to those who have a direct interest in the tourism business rather than those who
exist within a certain type of economy. Alderman (1994) in Zupan (2003) believes that
tourism can or lead to increased property values and higher costs of living for the local
people. There are however, revenue leakages particularly from developing countries to
developed ones, that is, tourism causes properties and services to be expensive, and at
the same time it does not invest or give back to the local communities. Supporting the
above statements, the World Bank (2002) estimates that 45% of gross tourism
revenues in developing countries leaks abroad (Lawrence, 1994).

The loss of land and protected areas impose costs for local communities as they utilise
natural resources, such as wood for craft making and fruits, to supply tourism
destinations and to create a form of employment for themselves (Snyman 2012).
Furthermore, this loss of land and protected areas causes a growing concern for the
conservation of natural resources, human wellbeing and the long-term economic
viability of communities (Manavhela and Spencer 2012). Although the tourism industry
is of global importance, it includes negative impacts such as being largely dominated by
a high rate of migrants, further creating an economic barrier for the indigenous local
community (Shakeela, Ruhanen and Breakey 2011). This can cause tension in the
community, especially if the migrants are perceived to be a burden on community
resources, to represent competition for jobs or if they do not integrate into the host
society and, thus, seem to challenge social norms (Janta et al., 2011). However, it is
evident that migrants are satisfying tourism vacancies mainly because local employees
are not willing to tolerate the poor working conditions of the tourism industry (Walmsley
and Partington 2014).

56
In some circumstances, tourism employment has a low status, requires low skills, has
informal working hours with low income, is monotonous, and highly-pressurized, with
poor management and career structures and is not recognised as a main career option
(Liu and Liu 2008; Shakeela, Ruhanen and Breakey 2011; Janta, Lugosi, Brown and
Ladkin 2012). Walmsley (2004); Baum (2007); Jiang and Tribe (2009); Costa, Breda,
Malek and Durão (2013); Baum (2015) argue that the tourism labour market has eight
characteristics, including; low pay, low skilled, related to a negative image to the extent
of being “Mickey Mouse jobs in a candy-floss economy”, exposed to poor management,
seasonality, a “refugee sector”, and lacks a clear career structure.

Furthermore, the tourism industry possesses poor conditions, high staff turnover,
minimal investment in training and challenges in recruiting skills in a number of key
areas, high level of labour drawn from socially disadvantaged groups, poor status and
the virtual absence of professionalism (Baum 2007; Jiang and Tribe 2009). This makes
employees more disposed to stress and creates an imbalance between work and life
(Janta, Lugosi, Brown and Ladkin 2012; Baum 2015). Tourism also possesses
insufficient opportunities for career development, low benefits, demands work in
unsocial hours and leads to employee dissatisfaction (Costa, Breda, Malek and Durão
2013; Lebe, MatjažMulej, Rok and Mulej 2014; Ladkin 2015). It can also lead to inflated
amounts of income in payments for goods and services (Amalu and Ajake 2012: 18;
Spencer and Rurangwa 2012: 1054). Tourism increasingly demands skills traditionally
associated with other areas of employment, attracting skills that are not especially
unique and are readily available in the external labour market (Baum 2015). This means
that firms often deploy a weak internal labour market, proving that tourism is an easy
industry to access (Riley and Szivas 2009), with employees often considered from a
combined resource perspective with little recognition of individual needs (Duncan, Scott
and Baum 2013).

57
The tourism industry worldwide is faced with a barrier of not being able to attract or
retain quality employees. This has resulted in a shortage of skilled personnel and other
factors including low levels of pay and seasonality (Richardson 2009; Solnet, Nickson,
Robinson, Kralj and Baum 2014). Furthermore, Zwane, Du Plessis and Slabbert (2014);
and Wakelin-Theron (2015) also point out that the tourism industry is incapable in
assessing the benefit of training and the expertise needed to provide training, which
hinders and discourages the provision of on-going employee training in the tourism
industry.

Problems associated with tourism employment are also linked to labour intensity, highly
dominated by females, part-time and seasonal employment, challenging working
conditions with low wages, inconvenient working hours, low labour unions, and poor
health and safety conditions (Liu and Liu 2008; Ayac 2010; Cave and Kilic 2010;
Cooper, Wheeller, and Ruhanen 2012; de Beer, Rogerson and Rogerson 2014). Similar
tourism employment problems were previously highlighted by Christensen and
Nickerson (1995) who argued that concerns about tourism centre around low wages,
minimal career opportunities, and seasonal and part-time jobs that leave workers under-
employed.

The tourism industry also faces systemic and inflexible workforce challenges relating to
the sector’s status as an employer, the impact of demand on career opportunities,
workplace conditions, and employee participation (Solnet, Nickson, Robinson, Kralj and
Baum 2014). Another challenge associated with seasonal employment is retrenchment
and attrition of employees who are forced to migrate to other cities to seek employment
(Lundberg, Gudmundson and Andersson 2009; Biermann 2011; de Beer, Rogerson and
Rogerson 2014). This leads to a negative employment image for the tourism sector and
creates a problem in the recruitment and retention of quality staff in the tourism industry
(Richardson 2009). De Beer, Rogerson and Rogerson (2014) also mention that, in the
tourism industry, employees are expected to meet tourists’ demands with a smile, while
being overworked and underpaid.

58
Furthermore, other barriers of seasonality in employment, as highlighted by Biermann
(2011) and Solnet et al (2014) include; cash flow problems, unused capacity, a high
need for seasonal and part-time employees, as well as difficulty in attracting investors.
In Gambia, local hotels often cut off half of their staff during off-peak seasons, and, in
Mexico, tourism employment is often associated with low salary and seasonality, with
local communities feeling cheated by government as the best job opportunities are
being taken or offered to non-indigenes of Mexico (de Beer, Rogerson and Rogerson
2014). With these issues forming a background, this study also investigates various
issues linked to employment at the BCMM. The tourism employment is also regarded to
be an informal sector with high numbers of micro, small and medium enterprises, also
including informal elements such as street vendors, locals selling arts and crafts as well
as second homes that are used to provide tourist accommodation (Ayac 2010).
Although the tourism industry is faced with a number of constraints, some of the
constraints are generally accepted as inevitable and natural processes (Zwane, Du
Plessis and Slabbert 2014). The BCMM case will also serve as a platform to determine
the job levels, skills, capacity development, and tourism employment categories enjoyed
by staff.

Tourism is a major global industry that provides a huge opportunity for economic
growth, foreign exchange earnings, employment and income generation. It has been
seen that tourism results in a range of economic impacts, both negative and positive,
depending on the socioeconomic characteristics of the tourist destination, and the types
of tourism practices in the destination area (Wall and Mathieson, 2006).

2.5 CONCLUSION

This chapter discussed tourism and its contribution to local economic development, with
emphasis to socio-cultural and environmental impacts that tourism has on the local
community. From the literature review provided, it is clear that tourism has an economic,
social and environmental significance which creates employment, enhances cultural
understanding and preserves cultural and national heritage. The chapter further
59
highlighted that tourism promotes cultural pride, enhances infrastructure, and benefits
the local communities through the provision of tourism and recreational facilities.
Moreover, the afore-narrated literates assert that tourism improves the standard of
living, stimulates the local economy, broadens education and promotes peace. The
literature also emphasised the imperativeness of community empowerment and the
need to participate in the tourism planning, decision-making and development
processes.

60
CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This chapter explains the research methodology. Research methodology refers to the
method by which data are gathered for a research project. According to Zindiye
(2008:123), it is a ‘blueprint’ for the collection, measurement and analysis of data in
order to achieve the objectives of a research project. Research methodology is
important in a research work because it specifies the sampling design. Here, the
researcher explicitly defines the target population and the sampling method. The
motivation for choosing a specific sampling method is also provided. The chapter also
highlights research instruments used in the data collection and the justification for their
use. It also outlines the research design adopted, the research population and sample,
data collection method and instruments and the data presentation and analysis plan.

3.2 REASRCH DESIGN

According to Gupta and Gupta (2011:32), research design is the formulation of the
structure and strategy of investigation conceived in order to get answers to research
questions and control variance. In other words, the research design articulates what
data is required, what methods are going to be used to collect and analyse this data,
and how all of this is going to answer your research question. Both data and methods,
and the way in which these will be configured in the research project, need to be the
most effective in producing the answers to the research question (taking into account
practical and other constraints of the study). Research is therefore an overall method of
organised planning so as to carry out a research study. The function of a research
design is to ensure that the evidence obtained enables you to effectively address the
research problem logically and as unambiguously as possible.

61
In social sciences research, obtaining information relevant to the research problem
generally entails specifying the type of evidence needed to test a theory, to evaluate a
program, or to accurately describe and assess meaning related to an observable
phenomenon (Yin, 2003).

Research design can be thought of as the logic or master plan of a research that throws
light on how the study is to be conducted. It shows how all of the major parts of the
research study– the samples or groups, measures, treatments or programs, etc– work
together in an attempt to address the research questions. Research design is similar to
an architectural outline. The research design can be seen as actualisation of logic in a
set of procedures that optimises the validity of data for a given research problem. Gupta
and Gupta (2011:36) state that the research designs are normally categorised as
follows;

Descriptive research design: Gupta and Gupta (2011:36) state that this research
design calls for the researcher to be able to describe clearly research purpose, the aim
is to measure and find adequate tools and methods for measuring it along with a clear
cut definition of population to be investigated.

Action research - The essentials of action research design follow a characteristic cycle
whereby initially an exploratory stance is adopted, where an understanding of a problem
is developed and plans are made for some form of interventionary strategy. Gupta and
Gupta (2011:36) state that the intervention is carried out (the "action" in Action
Research) during which time, pertinent observations are collected in various forms. The
new interventional strategies are carried out, and this cyclic process repeats, continuing
until a sufficient understanding of (or a valid implementation solution for) the problem is
achieved. The protocol is iterative or cyclical in nature and is intended to foster deeper
understanding of a given situation, starting with conceptualizing and particularizing the
problem and moving through several interventions and evaluations.

62
Case study - According to Mouton (1996) a case study is an in-depth study of a
particular research problem rather than a sweeping statistical survey or comprehensive
comparative inquiry. It is often used to narrow down a very broad field of research into
one or a few easily researchable examples.

The case study research design is also useful for testing whether a specific theory and
model actually applies to phenomena in the real world. It is a useful design when not
much is known about an issue or phenomenon.

Hypothesis testing or casual researches: this allows the researcher to test the
hypothesis of casual relationships between variables” (Gupta & Gupta, 2011:36).

Casual design: Causality studies may be thought of as understanding a phenomenon

in terms of conditional statements in the form, “If X, then Y.” This type of research is
used to measure what impact a specific change will have on existing norms and
assumptions (Yin, 2003). Most social scientists seek causal explanations that reflect
tests of hypotheses. Causal effect (nomothetic perspective) occurs when variation in
one phenomenon, an independent variable, leads to or results, on average, in variation
in another phenomenon, the dependent variable

Meta-analysis design -Meta-analysis is an analytical methodology designed to

systematically evaluate and summarize the results from a number of individual studies,
thereby, increasing the overall sample size and the ability of the researcher to study
effects of interest (Yin, 2003). The purpose is to not simply summarize existing
knowledge, but to develop a new understanding of a research problem using synoptic
reasoning. The main objectives of meta-analysis include analyzing differences in the
results among studies and increasing the precision by which effects are estimated. A
well-designed meta-analysis depends upon strict adherence to the criteria used for
selecting studies and the availability of information in each study to properly analyze
their findings (Yin 2003).

63
Lack of information can severely limit the type of analyzes and conclusions that can be
reached. In addition, the more dissimilarity there is in the results among individual
studies [heterogeneity], the more difficult it is to justify interpretations that govern a valid
synopsis of results.

Explanatory research - This is where a researcher has an idea or has observed

something and seeks to understand more about it. An exploratory research project is an
attempt to lay the groundwork that will lead to future studies or to determine if what is
being observed might be explained by a currently existing theory (Yin, 2003). Most
often, exploratory research lays the initial groundwork for future research.

This study shall be explanatory. It will seek to provide and understand the contribution
of tourism to Local Economic Development in BCMM. The issue has not been looked
into by many studies. Explanatory research is conducted for a problem that has not
been studied more clearly, establishes priorities, develops operational definitions and
improve the final research design.

3.2.1 Research approach

A research methodology aims at ensuring that there are methods and tools of problem
identification and problem solving by means of creating research design, scope,
sample, instrument, as well as validity and reliability testing, and analysis (Cant,
2011:65). Gupta and Gupta (2011:1) state that the purpose of conducting research is to
gain knowledge about a problem through a documented prose work designed.
Research can be accomplished by means of employing two basic approaches for data
collection on the topic being studied, which are the qualitative approach and the
quantitative approach

3.2.2 Quantitative approach

According to Shafeek (2009:79), the quantitative approach is interested on examining

gathered information using analysis based on the statistics. Quantitative approach aims
at generalising of the results obtained from the large sample to a wider population.
64
Quantitative Research is used to quantify the problem by way of generating numerical
data or data that can be transformed into usable statistics. It is used to quantify
attitudes, opinions, behaviors, and other defined variables – and generalize results from
a larger sample population. Quantitative Research uses measurable data to formulate
facts and uncover patterns in research. Quantitative data collection methods are much
more structured than Qualitative data collection methods.

According to Gupta and Gupta (2011:1) the quantitative approach to gathering

information focuses on describing a phenomenon across a larger number of participants
thereby providing the possibility of summarizing characteristics across groups or
relationships. This approach surveys a large number of individuals and applies
statistical techniques to recognize overall patterns in the relations of processes.
Importantly, the use of surveys can be done across groups. For example, the same
survey can be used with a group of mentors that is receiving training (often called the
intervention or experimental groups) and a group of mentors who does not receive such
a training (a control group). It is then possible to compare these two groups on
outcomes of interest, and determine what influence the training had. It is also relatively
easy to survey people a number of times, thereby allowing the conclusion that a certain
feature (like matching) influence specific outcomes (well-being or achievement later in
life) (Babbie and Mouton, 2007).

Using survey methods across a large group of individuals enables generalization. For
example, if policy makers wanted to instantiate a policy about mentor training, they
would likely require some evidence that this training actually works (Cooper and
Schindler, 2009:195). Interviewing a few individuals, or conducting a focus group with
forty matches, might be reflective of specific cases in which the mentoring training
worked, however, it would not provide strong evidence that such training is beneficial
overall. Stronger support for successful training would be evident if using quantitative
methods.

• Enables gathering information from a relatively large number of participant

65
 • Can conduct in a number of groups, allowing for comparison

• Allows generalizing to broader population

• Provides numerical or rating information

• Informative for instantiating policy or guidelines

• Lends to statistical techniques that allow determining relations between variables

(think of better word) (Cooper and Schindler, 2009:195)

In agreement to Shafeek (2009:79), Cooper and Schindler (2009:195) state the fact that
quantitative approach is informed by collecting data and use statistical methods to
analyse such data. On the other hand, qualitative research data collection instruments
ask mostly open-ended questions that allow participants to freely respond in their own
words.

3.2.3 Qualitative research

Kolb (2008:26) observed the fact that the qualitative approach is more focusing on the
attitudes, responses and perceptions unlike the qualitative approach which focuses on
the numbers and variables. Qualitative Research is primarily exploratory research. It is
used to gain an understanding of underlying reasons, opinions, and motivations. It
provides insights into the problem or helps to develop ideas or hypotheses for potential
quantitative research. Qualitative Research is also used to uncover trends in thought
and opinions, and dive deeper into the problem. Qualitative data collection methods
vary using unstructured or semi-structured techniques. Some common methods include
focus groups (group discussions), individual interviews, and participation/observations.
The sample size is typically small, and respondents are selected to fulfil a given quota.

Using open-ended questions and interviews allows researchers and practitioners to

understand how individuals are doing, what their experiences are, and recognize
important antecedents and outcomes of interest that might not surface when surveyed
with pre-determined questions (Cant, 2011:65).
66
Although qualitative research can be thought of as anecdotal, when pooled across a
number of participants it provides a conceptual understanding and evidence that certain
phenomena are occurring with particular groups or individuals.

• Allows identification of new and untouched phenomena

• Can provide a deeper understanding of mechanisms

• Gives a one-on-one and anecdotal information

• Provides verbal information that may sometimes be converted to numerical form

• May reveal information that would not be identified through pre-determined

survey question (Cant, 2011:65)

Qualitative research has a long history in sociology and has been used within it for as
long as the field itself has existed. This type of research has long appealed to social
scientists because it allows the research to investigate the meanings that people
attribute to their behavior, actions, and interactions with others. While quantitative
research is useful for identifying relationships between variables, like, for example, the
connection between poverty and racial hate, it is qualitative research that can illuminate
why this connection exists by going directly to the source the people themselves (Kolb
(2008:26).

This study shall use a qualitative approach to achieve its objectives. According to Kolb
(2008:26) qualitative research is designed to reveal the meaning that informs the
action or outcomes that are typically measured by quantitative research. This study
shall use qualitative data to investigate meanings, interpretations, symbols, and
the processes and relations of social life. What this type of research produces is
descriptive data that the researcher must then interpret using rigorous and systematic
methods of transcribing, coding, and analysis of trends and themes.

67
3.3 Scope of the study

The scope of the study provides answers to questions such as, where the study was
conducted, what was researched and who was studied. These questions have to be
answered if resources are to be used efficiently, because without the knowledge of the
population, the study unit to be studied and the study area, resources would not be
adequately spent. Population refers to the total elements included in the research study.
The study unit is the sample elements to be researched and the study area refers to the
place where the study was done (Wheather and Cook, 2000:203).

Lastly it covers the sampling technique that was used to select the respondents who
participated in this research.

3.4 UNIT OF ANALYSIS

The unit of analysis being the major entity of the study which focuses on the ‘what’ and
‘who’ is studied forms a significant of the study. According to Riddick & Russell
(2008:99) knowledge about which group benefits most and least from an initiative can
be used to develop strategies for obtaining subsidies. So it is important that the
researcher focuses on the correct unit of analysis which is the group that benefits the
most and least from the initiative. Babbie (1989) cited in Terre Blanche, Durrheim &
Painter (2006:41) distinguishes between four different unit of analysis that are common
in research which are individuals, groups, organizations and social artifacts. Trochim
(2006:20) also notes that unit of analysis includes the geographical units and social
interactions. The unit of analysis is not always clear. Terre Blanche, Durrheim & Painter
(2006:41) also assert that although there are no clear boundaries between these
different units of analysis, the researcher must ask on which aspects of loyalty the
research will focus on.

68
Considering what has been outlined above on the unit of analysis, for this study, the
part on the ‘who’ is going to be used by the study as the major unit of analysis will be
the people affected by tourism activities in the Buffalo City Metropolitan Municipality
who are supposed to experience the economic impacts and those that are supposed to
drive the process of economic difference and development. In this case, the focus is on
the people in area who are located near the tourist attraction hub. Implying that the unit
of analysis will be centred on those communities that are supposed to be benefiting
from the tourism activities in that area. The unit of analysis will also look at finding out
the views of various BCMM stakeholders involved in tourism, that is, Department of
Environmental Affairs and Tourism; Buffalo City Metropolitan Municipality Tourism
Department; Eastern Cape Parks and Tourism Agency and Buffalo City Development
Agency are playing a role in ensuring that there is socio-economic difference in the
communities with tourism activities.

The part of ‘what’ is being studied will also focus on the socio-economic impact of
tourism in the area of BCMM. The study will focus on what the tourism sector is
contributing towards LED in BCMM. This means that the geographical unit will be the
BCMM.

3.4.1 Geographical scope of the study

The scope of the research is limited to Buffalo City Metropolitan Municipality. East
London is a city on the southeast coast of South Africa in the Buffalo City Metropolitan
Municipality of the Eastern Cape province. The city lies on the Indian Ocean coast,
largely between the Buffalo River and the Nahoon River, and hosts the country's
only river port. As of 2011, East London had a population of over 267,000 with over
755,000 in the metropolitan area.

69
3.4.2 Time scope of the study

The study focused on the documents that were published between 2005 and 2017. This
is a long time period.

3.4.3 Research Population

This study will be conducted based on documents that looked at tourism in the BCMM
region.

3.4.4 Data collection

Data collection is an essential component to conducting research. Data collection is a

complicated and hard task. By and large it is also very difficult to say which the best
method of data collection is. Data collection can be derived from a number of methods,
which include interviews, focus groups, surveys, telephone interviews, field notes, taped
social interaction or questionnaires. O’Leary (2004) remarks “Collecting credible data is
a tough task, and it is worth remembering that one method of data collection is not
inherently better than another.” Therefore, which data collection method to use would
depend upon the research goals and the advantages and disadvantages of each
method.

3.4.5 Data collection instruments

The study used secondary data. Secondary data research involves gathering of
information that already exists. A significant amount of information was gathered from
secondary sources of research. Secondary sources are based on primary sources —
they are usually studies which analyze, evaluate, interpret, or criticize primary sources.
By assessing, repackaging and distributing information, secondary sources make the
information more accessible. In other words, secondary source is something written
about a primary source. Secondary sources include comments on, interpretations of, or
discussions about the original material (Kolb (2008:26).

70
In this study, municipal publications and newspaper articles are going to be the main
sources of information because they provide exactly the information the study requires.
These are generally free and often provide a lot of good information, and include
municipal units, government departments, business department of public libraries.
Government and municipal statistics are among the most plentiful and wide-ranging
public sources.

3.5 Data Analysis

Secondary analysis involves the use of existing data, collected for the purposes of a
prior study, in order to pursue a research interest which is distinct from that of the
original work; this may be a new research question or an alternative perspective on the
original question (Szabo and Strang 1997). In this respect, secondary analysis differs
from systematic reviews and meta-analyses of qualitative studies which aim instead to
compile and assess the evidence relating to a common concern or area of practice
(Popay, Rogers and Williams 1998). As will be shown below, secondary analysis can
involve the use of single or multiple qualitative data sets, as well as mixed qualitative
and quantitative data sets. In addition, the approach may either be employed by
researchers to re-use their own data or by independent analysts using previously
established qualitative data sets.

The study shall use content analysis to analyse the data. Qualitative content analysis is
more than simply counting words or pulling out objective content from texts in order to
look at meanings, themes and patterns that may be apparent or hidden in a specific text
(Mayring, 2000). In any research project, it is always important to determine the unit of
analysis.

3.5.1 Data presentation

This involves presenting findings in a logical and sequential way so that conclusions can
be drawn from them. The data shall be presented according to research questions and
research objectives. Tables and figures will be used to present data.
71
3.6 Conclusion

The data will be collected from secondary sources for presentation and analysis. In this
chapter, data collection methods and tools to be used in data collection were
highlighted. The data will be collected using secondary methods to enhance the validity
of data. Critical analysis and data presentation will be carried out in the next chapter.

72
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND PRESENTATION

4.1 Introduction

This chapter presents the results from the secondary data collected during the research
and discusses the findings and associated interpretations. The chapter aims to present
the findings that were obtained in the research. Specifically, this qualitative study sought
to achieve the research objectives reflected hereunder:

• To investigate the contribution of tourism in LED in the BCMM region.

• To determine the strategies that can be taken to maximize the opportunities and
benefits to the local community.

The data is presented according to the research objectives.

4.2 Presentation of main findings

Tourism has increased steadily in Buffalo City Metropolitan Municipality specifically in

East London. However, survey of secondary sources showed that surrounding regions
such as Mdantsane, King Williams Town and Bhisho have a limited tourism sector. In
this regard, the BCMM (2015) suggested that there should be more activities such as
heritage and culture promotions in these areas in order to create employment. BCMM is
considered one of the gateways to the Eastern Cape’s tourist corridors (Focus on
Buffalo City, 2017). Buffalo City Metropolitan Municipality (2017) reports that tourism
products expose exciting opportunities for investors, since there is far-reaching and
massive growth potential for economic expansion in both local and international
markets. Such tourism products range from beachfront hotels and holiday flats to
caravan parks, bed and breakfast establishments, and backpacker hostels, museums
and conferencing facilities. Inskeep (2011) describes hotels and other tourist facilities
and services as being an integral part of the urban fabric and they thus serve both
holiday and business travellers.

73
Buffalo City has the potential of attracting both local and international tourists, and as
such, benefits as the economic development of the city is supported by needed foreign
investment.

Buffalo City one of South Africa's unsung treasures, is located in the Amathole District
and includes East London, King William's Town, Mdantsane and Bhisho. Established
following the local government elections in 2000, Buffalo City forms the central hub of
the Eastern Cape, with the Sunshine Coast tourist route leading west for about 300km
from Buffalo city to Port Elizabeth and the Wild Coast route leading from Buffalo City,
north-east towards Durban (Eric, 2017). The Sunshine Coast boasts sleepy seaside
towns and villages with picturesque setting along river mouths, leading to golden
beaches. The Wild Coast is more densely forested with indigenous trees and plants and
boasts a rugged coastline with breathtaking views. With its temperate climate and
exceptional coastline, its golden sandy beaches and warm oceans - combined with its
rich cultural history, heritage sites and abundant natural resources - is ideally suited to
tourism. It makes the ideal, year-round holiday and business destination for both local
and international visitors.

4.2 .2 Contribution of tourism in LED in the BCMM region

All sectors of the economy play an important role in making a stable and long running
development. Tourism is one of the sectors which plays an important role in
development and also generates foreign revenues (Jameson, 2015). This sector is
peaceful and reflects the nature and beauty of the country. It helps people of far flung
areas to promote their culture and norms, it also provides opportunity to country to
make a better image around the world. There are many issues this sector is facing
nowadays and the popularity of this sector is sliding down day by day means that
people is not ready to make tours because of many problems and threats to security
and life.

The South African economy has been hit by a perfect storm of rising unemployment, a
widening budget deficit, credit ratings downgrades and most recently entered into a
74
technical recession (Elgar, 2014). This is happening in a world that is still struggling to
regain some form of equilibrium on the socio, economic and political fronts. The
situation in South Africa is further compounded by an unacceptable political
environment of capture, corruption and succession debates which is causing continual
internal focus rather than taking a global view of the nation’s competitiveness and
economic growth. The tourism industry currently enjoys tremendous growth in several
countries all over the world. There is growing worldwide interest in tourism as an
important contributor to GDP growth. Tourism, being a labour-intensive activity in all
countries, is an exceptionally fertile ground for private investors (Urry, 2016; Vialle,
2015; Vanhove, 2015). It opens up opportunities for the small businesses that are
engaged in or provide products and services to the tourism industry. The wide range of
transactions undertaken by or for travellers can impact particularly strongly on the local
farming and fishing industries, handicrafts, construction, telecommunication and others.
Tourism serves as a foothold from which the market economy can expand and flourish
(World Tourism Organization, 2014). It has an above average potential to enhance
development through employment creation, technology transfer, investments and others
that it can bring to remote, economically impaired communities (Acheampong, 2016).
The tourism industry is, thus, a key contributor to the development of various countries.
The following were seen to be contributing to LED in the BCMM:

4.2.3 Employment opportunities

Tourism in BCMM has led to economic development in that there are quite a number of
attractions and tourism products in the city i.e. museums, theatres, beautiful beaches,
conference, restaurants, and accommodation facilities, and this is where job
opportunities are created. Buffalo City Metropolitan Municipality (2017) elucidates that
Buffalo City has a heritage appeal i.e. Museums: Gately House, home of leading local
figure in business and municipal affairs in the 19th century, the national monument
containing well preserved family heirlooms; the BCMM museum, one of the most
comprehensive natural history museums in South Africa (SA).

75
Tourism, however is one ‘sunrise’ sector which can not only ‘switch on’ and generate
swift growth but is also one that, societal upheaval aside, can be immune to many of the
local issues and challenges provided that the visitor experience is not compromised.
Tourism is a vibrant and vital economic sector whose total GDP contribution in 2016
alone amounted to no less than R492.2 billion or 9.3% of GDP. The World Travel and
Tourism Council (WTTC) (2016) forecast that this sterling contribution would rise to well
above current GDP levels to 2.5% in this year and by a further 4.5% per annum
thereafter. In addition, last year the sector generated a total of 1 533 000 in jobs (9.8%
of total employment), a figure which is projected to rise by 6.7% this year to 1 636 500
jobs, notwithstanding the current recessionary pressures (WTC, 2015).

According to the Department of Environmental Affairs and Tourism (2017), tourism in

SA has been identified as one of the country’s key economic sectors, with excellent
potential for growth. It is a sector that has managed to create jobs, while increasing its
contribution to Gross Domestic Product (GDP). Binns and Nel (2012) hold that SA is
regarded as a medium income country, and is characterised by tremendous social
inequality and high levels of poverty. They further stated that in 2015, the tourism
industry contributed 8.2% of SA’s GDP and 7% of total employment. Tourism’s potential
for job creation is considerable and is particularly important in the light of significant job
losses in SA in recent years. The importance of tourism as an anchor for growing local
economies is critical in SA’s smaller urban centres (Binns and Nel, 2012). Page (2015)
observes that economic benefits accrue to tourism destinations, which then creates
employment opportunities and stimulates the development process in resorts and
localities, the author further discusses that for the local population, it is often argued by
proponents of tourism development, that investment in tourist and recreational facilities
provides a positive contribution to the local economy.

76
Urban tourism, according to Page (2015) produces three types of employment, and
these are:

- Direct employment in tourism establishments;

- Indirect employment in the tourism supply sector; and
- Induced employment or additional employment as locally employed residents
spend the money earned from the results of tourism related income circulates in
the urban economy.

Looking at the specific employment figures, it is critical to remember that this is the one
sector with the ability to provide a broad range of job opportunities: right from the very
technical to the soft-skills and the unskilled (Elvis, 2016). Tourism has the ability and
potential to generate jobs across the board in both rural, semi-urban areas and major
cities. It has the potential to encourage the direct development of entrepreneurial
opportunities in all its sub-sectors not forgetting to mention all the other indirect
employment and entrepreneurship opportunities generated elsewhere in the country’s
economic value chain.

4.2.4 Reducing poverty

Buffalo City Metropolitan Municipality (2017) observes that tourism is valued as one of
the leading contributors to a sustainable South African economy. The report maintains
that, the tourism industry is one of the fastest growing sectors as well as one with the
best chance to create significant job opportunities that can further nurture patriotic pride
and reduce poverty. The industry employs many thousands directly whilst creating even
more indirect employment opportunities and playing an important part in the further
stimulation of the stagnating economy (Buffalo City Metropolitan Municipality, 2017).

Recent research highlights that urban poverty is a major policy issue that has gathered
interest in post-apartheid South Africa (May, 2015; Rogerson, 2017). Buffalo City
Metropolitan is no exception, in that Buffalo City Quality of Life Survey, reveals that
more than a third of the city ‘s labour force is unemployed.

77
Social inequality in BCMM is striking. Of all the Africans living in Buffalo City
Metropolitan Municipality, over 45.5% are classified as poor ‘and approximately 21% of
African residents were classified as ultra-poor, whilst 0.2% and 0.1% of Whites
respectively fall into the poor ‘and ultra-poor ‘categories (IDP, 2012/2014). The high
levels of poverty are clearly spelt-out in the 2001 Census, which depicts that
approximately 70% of households point out that they have an income of less than
R1500 per month, which is the household subsistence level, with 28% of all households
indicating that they have zero income, clearly implicating that most of the poor can
barely afford basic necessities (IDP review, 2012/2014). “This clearly poses significant
challenges for development in the city, and also suggests that, while average household
income is getting bigger, a large portion of the city’s population continues to struggle on
the margins of the economy, as their sources of income diminish because of lack of
employment opportunities” (Bank, Kamman, Meyer, Makubalo, 2016).

Buffalo City Metropolitan Municipality (2017) explains that promotion of tourism is being
intensified due to its enormous potential for Small Medium and Micro Enterprises and
for job creation since this sector is so job-intensive, this means that tourism within the
area of BC also play a role in encouraging entrepreneurial activity. However, Vanhove
(2015) suggests that each coin has two sides; there is no economic activity or project
without costs.

The tourism sector is one of the key areas with great potential for poverty alleviation and
has been taken as a key portfolio to be appropriately monitored to foster its growth and
development in the Buffalo City. BCMM has the potential to benefit from the worldwide
annual tourism growth of 5%-6%, with domestic tourism to benefit more. (BCMM) and
has since commissioned a Special Purpose Vehicle (SPV) and the Tourism Master plan
in Buffalo City Metropolitan Municipality to drive the marketing of the city as a tourism
destination, in partnership between the private and public sector (BCMM IDP, 2014).
This offers the platform for local stakeholders to significantly contribute in the planning
process for key local development initiatives and in the execution as well as successful
implementation of the initiatives with the aim for sustainable local economic
development and alleviation of poverty.
78
The SPV and the tourism master plan seeks to spearhead skills development and
entrepreneurship in the tourism sector, as BCMM recognizes the responsibility of
ensuring that the previously disadvantaged individuals are also benefiting from the
sector (BCMM IDP, 2014).

The Department of Economic Development, Environmental Affairs and Tourism

(DEDEAT) has initiated and supported the Marketing of Tourism emerging
entrepreneurs as part of the National Tourism Growth Strategy, and providing marketing
platforms for the promotion of local products, in major events like the Tourism INDABA
and the Kayalam Trade Show. The Heritage Route Development was also initiated
through the partnership between municipality and National Heritage Council. The
project has been heftily funded by the Department of Economic Development,
Environmental Affairs and Tourism to the tune of R2, 5 million (BCM IDP, 2014).

Additionally, BCMM tourism department has initiated the Summer Season Programme,
which is a marketing drive to promote Buffalo City as a tourist destination and attract
visitors to the city, especially during the festive period, and has been funded to the tune
of R1.3 million, thus creating gainful employment. SMME’s have also been supported
with the establishment of tourism centres in Mdantsane and Dimbaza, made possible
through the corporation with the Industrial Development Corporation (IDC) to invigorate
the Central Business District (CBD) and Quigney areas in East London (Hindson,
Hindson & Preddie, 2013).

The Municipality annually provides strategic support to SMMEs to partake in trade

shows and in the production of their marketing materials; at district municipality level, in
2009/2010 a week long workshop on tourism was presented to teachers. Key portions
of land have been identified, and the projects identified as being potentially prime
investment opportunities that could drive tourism development and associated
employment creation and tourism economic growth in Buffalo City. Significant projects
include the Mdanstane community lodge Mdantsane Heritage Festival, Kiwane beach
resort in Tsholomnqa and a Community Game Farm in Maclean town, which
significantly empowered the previously disadvantaged. (BCM IDP, 2014).
79
4.2.5 Social opportunities

Cities can be the focal point for diverse cultural and social activities which the
population engages in, offering opportunities for entertainment, tourism and leisure
activities (Page, 2015). Urban tourism plays a key role in tourism and economic
development in cities as most urban destinations have a wide variety of attractions.
Wober (2012) notes that most major tourism destinations have a wide variety of
attractions (or primary elements) plus a deeper array of ancillary services. Additionally,
key activities in a tourist city are the range of visitor attractions, the conference and
exhibition sector suitability, the arts and entertainment offerings, sport available, hotels,
catering and some aspects of the retailing and transport sectors. Wober (2012)
underlines that tourists tend to travel throughout the year and their visits are more
varied in terms of purpose of trip, length of stay and benefits sought. Current trends
show that; tourists are combining shorter summer holidays with short breaks during the
rest of the year. Such a tourism tendency has generated a solid urban tourism demand
(Wober, 2012).

Recreational tourism is a means by which people seek psychological benefits that arise
from experiencing few places and new situations that are of temporary destination whilst
free from constraints of work and normal patterns of daily life. The demand for
recreation and tourism facilities is likely to grow because of increasing personal income,
leisure time, mobility and an overall trend towards more active and healthy life style
(Asandi, 2008). Activities of tourism may have major impacts on the marine and coastal
environment, the resources they host and the diversity of those resources. Impacts are
due to inappropriate planning, irresponsible behaviour by tourists and operators and /or
lack of education and awareness of the impacts. Sometimes decisions for tourism
development are based only on potential economic benefit. Coastal erosion often
affects coastal infrastructures that have been built for tourism purposes (Ardeson,
2017).

80
4.2.6 Economic development

The White Paper on Tourism (South Africa, 1996: 10) states that tourism, perhaps more
than any other sector, has the potential to contribute to economic development through
its linkages with the agricultural sector and that there is an increase in the demand for
new products and services such as Agritourism. Many international tourism destinations
have successfully used the tourism industry to encourage other sectors of the economy
and to generate new and innovative employment opportunities (South Africa, 1996: 10).
On contrary, authors like Lee (2012) for Singapore, Payne and Mervar (2010) for
Croatia, Katircioglu (2009) for Cyprus, Oh (2005) for Korea found the opposite: it is the
economic growth that Granger causes tourism development.

Katircioglu (2009) rejects the validity of tourism-led growth hypothesis in Cyprus, since
his results suggested that growth in real income stimulates international tourist arrivals.
Similarly, Payne and Mervar (2010) failed to find the causality from tourism
development to economic growth in the case of Croatia. They used quarterly data in
order to examine the long-run causality, and showed that there is a positive
unidirectional Granger causality from real GDP to international tourism revenues.
Accordingly, the authors suggest that tourism sector will grow once the policies that
stimulate institutional transparency and positive investment climate are implemented. As
a result, international tourists would perceive this as a signal of country`s stability and
increase in tourism revenues would follow.

An interesting study was performed by Antonakakis et al. (2015) on the sample of 10

European Union countries that included both stronger, enduring economies (Sweden
included) and countries that were severely affected by the latest Great recession in
2007. The goal was to determine the nature of relationship between tourism and
economic growth. It was found that this relationship varies over time: during the crisis
period, some of the countries have moved from tourism-led economic growth towards
economy-driven tourism development, while others have done the opposite. In other
words, this relationship is dependent on different economic events (it was noticed that
these events had higher impact on economies of Greece, Cyprus, Spain and Portugal).
81
4.2.7 Negative effects of tourism in BCMM

Borobia (2016) concludes by saying tourism dependent economies suffer from the
environmental degradation and the resulting decline in tourism cause in government
revenues and income to local communities and businesses, gradually worsening
conditions at the destination level. Furthermore, recreation, when properly planned and
15 managed can minimize impacts on coastal environment and serves as a driving
force in bringing sustainable tourism as a vehicle of development to local communities
and destinations (Borobia, 2016).

Tourism and recreation associated with “sea and sun”, is recognized as an essential
component of domestic and international trade and a major contributor to economic
growth (Kondobia, 2015). The costs associated with unplanned and /or poorly managed
tourism can also be felt. Environmental quality and the natural resource base, which
ultimately supports tourism development, are some of the concerns raised as losses in
traditional and indigenous ways of life. Marine and coastal environment contain diverse
habitants typically comprised of sand dunes, rocky shores, cliffs, beaches, estuaries
and lagoons, wetlands, mangroves, coral reefs and seagrass beds (Denis, 2010). All
such habitats are environmental assets that provide much of the basis for tourism
activities that occur in coastal areas. Environmental degradation and change in coastal
areas directly affect their sustainability and capacity to provide environmental service,
such as acting as a buffer against erosion and storms, as well as serving as a source of
marine recreation and food resources (Croxley, 2014).

The potential employment impact of the tourism industry on both men and women in
rural areas will considerably improve family life although the urban drift among men who
migrate to cities and mines in search of employment has had a damaging effect on rural
women who continue to suffer not only from hard labour in the rural fields, poor access
to infrastructure and basic necessities such as water, but also from the impact of
Acquired Immune Deficiency Syndrome (AIDS) (South Africa, 1996: 53).

82
4.2.7 Discussion

The Eastern Cape Province is the second largest of South Africa's nine provinces in
terms of surface area. The capital of this province, Bhisho, is derived from the
indigenous word for Buffalo, which incidentally, is the name of the river on which it is
situated. The indescribable natural beauty of the province has been the greatest secret
behind the province ‘s tourism potential. The BCM tourism master plan shows great
potential to spearhead local economic development, as it possesses great attractive
scenery. The tourism master plan provides a platform that incorporates the involvement
of the locals. Hence the involvement of communities and capacity building exercises are
well-thought-out to be central to developmental approaches that seek out to extensively
spread the economic benefits of tourism ventures (Rogerson, 2017). This thereby
enforces Sen.’s capability approach which focuses on what individuals are effectively
able to do and to be (Clark, 2016). In this case the locals are given the opportunity and
freedom to participate in their own development, and in the process accumulate
significant income and goods and thereby lead the kind of life they want, which is less
poverty stricken. In as much as tourism has a room for growth, it will depend on a wide
range of factors. These includes improvements in logistics infrastructure, tourism
infrastructure (e.g. beach front), branding and marketing as well as additional resources
are required to implement a number of priority initiatives, which have already been
identified, as well consolidating the efforts of the Special Purpose Vehicles (SPV)
(Raymond, 2016).

Tourism offers an opportunity of employment creation and significant income

generation. Tourism has a potential to significantly contribute to local and national
economic development initiatives, more so, can serve as a mechanism to promote pro-
poor development initiatives and poverty alleviation in localities. Thus it is widely
acknowledged as a key economic sector (Hill, Nel and Trotter, 2016). The municipality
is faced with the challenges of having to seek sustainable solutions to address the
oversupply of tourism graduates that is not absorbed by the industry, which will provide
the very much needed employment and empowerment opportunities.

83
Tourism sector does not have that much of an impact in terms of employment creation
in BCMM as it is relatively has stunted growth. Hence the need for intervention
measures that moderate equilibrium between the needs of the tourism sector and the
provision of skills development program provided by teaching and learning institutions.
Such efforts should also be done in collaboration with Department of Economic
Development, Environmental Affairs and Tourism (DEDEAT) and the private sector,
which will spearhead the funding for skills development programs, valuable expertise
and experience in the Tourism Sector (Raymond, 2016). Thus it is imperative to develop
strong public-private partnership in order to provide sustainable economic development
through tourism. Skills development in tourism has a vital role to play towards skills and
enterprise development, realizing what Kaplan (2014) designates as South Africa’s
‘tourism-led development strategy’ (Tecle and Schroenn, 2006).

Skills development complements tourism industry growth, as opportunities that are

created in the formal tourism industry are filled by previously disadvantaged South
Africans across all work spectrums. Moreover, the growth of this skills base should
furnish a pool of potential new tourism entrepreneurs (Rogerson, 2008). This will ensure
that people can be able to take advantage of opportunities created and benefit from
development opportunities that will improve their standard of living, and alleviate
poverty. Furthermore, tourism awareness programs should be conducted at schools
and community level, including utilizing experience and expertise of senior citizens to
assist in the development of new ventures, as well as utilizing the expertise of retired
sector practitioners. Hence eminently bring forth the creation of employment and
income generation, improvement of the standard of living and hence poverty alleviation.
Rogerson (2016) substantiates this notion by arguing that pro-poor tourism is a potential
vehicle to drive local economic development.

84
4.3 Conclusion

This chapter presents the results from the secondary data collected during the research
and discusses the findings and associated interpretations. The chapter aims to present
the findings that were obtained in the research. Tourism, perhaps more than any other
sector, has the potential to contribute to economic development through its linkages
with the agricultural sector and that there is an increase in the demand for new products
and services. The relevance of tourism as a cornerstone for the development goals of
South Africa cannot be over-emphasized. That is the reason why much attention and
resources are being earmarked for the industry by the government and the private
sector. The next chapter concludes the study.

85
CHAPTER FIVE: CONCLUDING REMARKS AND RECOMMENDATIONS

5.1 INTRODUCTION

The main aim of this chapter is to make a summary of the findings of the study
conducted. The chapter shall first give a summary of the findings from literature. It will
then give a summary of the findings. Recommendations will also be suggested to
enable a more effective and efficient way of promoting tourism.

5.2 Findings from the Study

Literature Review was also compared to the research results, to determine whether they
are in harmony with the ultimate findings. The findings will be abridged and compared
with the objectives of the study as outlined in Chapter One.

5.2.1 Findings from Literature Review

Literature showed that bringing tourists into a community gives it new life, and creates
opportunities for entrepreneurs to establish new services and products, or facilities that
would not be sustainable based on the local population of residents alone. Tourists are
all potential customers, and with the right approach can be targeted in a business
strategy that allows for fantastic success. Papatheodorou, Forsyth, and Graham
(2016:30), view tourist destinations from five broad sectors namely attractions,
transport, accommodation, supporting facilities and infrastructure.

The researcher explains that attractions encourage tourists to visit the location, the
transport services enable them to do so, the accommodation and support facilities alike
(for example shops, banks, restaurants, hotels) cater for the tourist’s well-being during
their stay and the infrastructure assures the essential functioning of all the above
sectors.

86
Activities undertaken in BCMM by tourists are shopping, nightlife, social, visiting natural
attractions, business, beach, cultural, historical heritage, wildlife, theme parks and
adventure activities and they boost the local economy which in turn promotes job
creation.

In a study by Dwyer, Forsyth and Dwyer (2010:12), the impacts of tourism are of
interest to private businesses, government agencies and individuals living in the areas
that tourist’s visit. Informed private decision making and public policy require that
executive officials, employees and their dependents understand the contribution that
tourists and those that supply these businesses. In summary, it is evident that tourism
positively contribute towards the economy of a country or region. However, there is little
evidence to show that the economic gains are translating into socio-economic gains for
the local communities that are tourist attraction hubs especially in BCMM which has a
lot of people who are impoverished.

Tourism is one of the most important sectors of the economy and an extremely lucrative
business. The industry is growing and carries great potential of contributing to a country
and/or local areas’ economy and development. According to Dwyer, Forsyth and Dwyer
(2010:12), tourism has grown substantially over recent decades as an economic and
social phenomenon. Furthermore, Matias, Nijkamp and Sarmento (2011:44) state that
tourism industry is the fastest growing sector of the economy. The tourism industry
serves as a primary source for generating revenue and infrastructural development, for
example, developments in water supply, sewage treatment, or new entertainment
facilities (Chen and Chiou-Wei 2009; Fletcher, Fyall, Gilbert and Wanhill 2013).

The industry also generates tourist expenditures into the local economy, encourages
development of an entrepreneurial culture and maintains the growth of enterprises in a
tourism destination (Cooper 2012). The tourism industry also has a great effect on local
population employment, increasing employment advantages and minimizing the
boundaries of poverty (Shukla and Ansari 2013).

87
Tourism also serves as an important foreign exchange earner, contributing to the capital
of goods that are used in the manufacturing process and stimulating research and
development (Brida and Risso 2009). Furthermore, tourism generates the multiplier
effects by contributing to the development of other sectors, for example:
accommodation, food, transportation, hospitality, construction, textiles, agriculture,
fishery retail trade, and entertainment (Goeldner and Ritchie 2009; Gokovali 2010).
Youth and women also benefit from tourism through skills development and education
(Cook, Yale and Marqua 2010; Gokovali 2010).

Tourism has direct, indirect and induced impacts on local economies, these can often
be largely divergent between countries, based on the structure of the sector but most
importantly on how well linked tourism activities are with the local economy. Greater
linkages generally translate into higher levels of local economic activity (and growth),
which tend to occur when tourism enterprises source their goods and services
(including labour) locally whilst low levels of economic linkages occur where tourism
enterprises are dependent on imports (including staff) to supply their demands.

5.2.2 Findings from Primary Research

Results showed the following:

(i) Tourism has been seen to be contributing positively to the BCMM region. It was
seen that tourism has brought more income in the BCMM.

(ii) It was seen that tourism brings employment opportunities in the BCMM region.
One of the easiest advantages to identify is the jobs tourism brings. This
ranges from directly influenced positions like tour guides, hotel staff, coach
services, and restaurants. What’s great about all these businesses is that
they not only pay wages to their staff, but source goods and products locally,
giving a boost to local industry.

88
 (iii) Results also showed that tourism brings more income and more spending in the
communities in BCMM. the money that is spent directly by tourists in the
economy. Not just on tourism, but there are a huge range of basic human
requirements that need to be purchased, like food, clothing, hairdressing,
medical services, and transportation needs that all need to be filled, along
with souvenirs and amusements. In its own way, tourism supports global
trade, which you can learn more about in this course on the new economy.

(iv) Results also showed that tourism has some social benefits. In addition to the
revenue, there are also fantastic cultural advantages to tourism. It can be a
source of pride for local communities, and allows them to look at their history,
and cultural heritage and develop their own community identity. This helps the
local residents to maintain their traditions and culture, while also showcasing
it for all the visitors. This advantage of tourism is what has saved many local
heritage sites from destruction, in addition to giving tourists a wonderful
insight into the local ways of life. Tourism can help to preserve the history of a
region that may be at risk of being lost.

5.3 Recommendations
Based on the study’s findings the following recommendations are offered:

Creating a more enabling environment for tourism: results showed that tourism is
contributing significantly to LED in the BCMM region. It was also seen that there are
some obstacles to the full development of tourism in the region. This, therefore, means
that there is a need for creating an enabling environment for tourism in the region. This
is where a very simple shift is required in terms of mind-set by the manifold authorities
who perform the gatekeeping functions. We need a shift from red-tape to green tape
environment and make the tourism business experience simpler, better, faster.

89
Ensuring that there is inclusive growth of tourism: results showed that tourism has
a positive impact on the social and economic welfare of the citizens. There is a need for
the BCMM and the government to ensure that all the people benefit from the growth of
tourism in the country. This can be done by ensuring that the government and policy
makers create an empowering environment for business to thrive (government), operate
enterprises in such a way that they make it possible for budding entrepreneurs to enter
the sector and its various industries (private sector) and ensure that they give a share of
their financial resources in the budget to support tourism products and services in the
BCMM while also working together to create opportunities for all South Africans to
experience tourism in their own country.

5.4 Areas for Further Research

The study used secondary data only. There is a need to do a survey which uses
interviews, questionnaires etc to obtain first-hand information from those who are
directly affected by tourism. Getting first-hand information can bring the desired
information and this is useful for policy making. There is also a need to narrow the
geographical scope of the study and look at specific areas in the BCMM.

5.5 Conclusion

The main aim of this chapter was to conclude the study. The chapter gave a summary
of the findings from literature. It then gave a summary of the findings.
Recommendations were suggested to enable a more effective and efficient way of
promoting tourism. There is a need for the BCMM and the government to ensure that all
the people benefit from the growth of tourism in the country. This can be done by
ensuring that the government and policy makers create an empowering environment for
business to thrive (government), operate enterprises in such a way that they make it
possible for budding entrepreneurs to enter the sector.

90
References

Ashley, C. (2000) “The Impacts of Tourism on Rural Livelihoods: Namibia’s

Experience” ODI Working Paper 128, February 2000.

Banskota, K (2012) “Impact of Tourism on Local Employment and Incomes in Three

Selected Destinations: Case Studies of Sauraha, Nagarkot and Bhaktapur” Nepal
Tourism and Development Review 2, 2012.

Baum, T (2013) “International Perspectives on Women and Work in Hotels, Catering

and Tourism” ILO, 2013 CEPAL (2007) “Turismo y Condiciones Sociales en
Centroamerica: Las Experencias en Costa Rica y Nicaragua” ECLAC, 2007.

Fernandez-Morales, A (2003) “Decomposing Seasonal Concentration” Annals of

Tourism Research, Vol. 30 No.4, 2003.

Gossling, S. Peeters, P. Hall, M.C. Ceron, JP. Dubois, G. Lehmann, LV. & Scott, D.
(2012) “Tourism and Water Use: Supply, Demand and Security. An International
Review” Progress in Tourism Management, No. 33 (2012).

Horvath, E & Frechtling, DC (1999) “Estimating the Multiplier Effects of Tourism

Expenditures on a Local Economy Through a Regional Input-Output Model” Journal of

Traveo Research, Vol. 37, No. 4, May 1999.

Jordan, F (1997) “An Occupational Hazard? Sex Segregation in Tourism Employment”

Tourism Management, Vol. 18, No. 8, 1997.

Klytchnikova, II & Dorosh, PA (2009) “How Tourism can (and does) benefit the poor and

the environment – A case study from Panama” World Bank, Enbreve Responsible

Tourism Series, August 2009, No. 146.

Lee C & Kang, S (1998) “Measuring earnings inequality and median earnings in the

tourism industry” Tourism Management, Vol. 19 No. 4, 1998.

91
Meyer, D.F. & Meyer, N. (2015). The role and impact of tourism on local economic

development: A comparative study. African Journal for Physical, Health Education,

Recreation and Dance, 21(1:1), 197-214.

Mbaiwa, JE & Stronza, AL (2010) “The effects of tourism development on rural

livelihoods in the Okavango Delta, Botswana” Journal of Sustainable Tourism, Vol. 18,

No. 5, June 2010.

Mitchell, J & Martins, P (2012) “Pro-Poor Tourism Linkages in Cape Verde” ODI, May

2012 Oxford Economics (2012) “Travel & Tourism as a Driver of Economic

Development in Jamaica” Oxford Economics, 2012.

Moscardo, G. (2014). Tourism and community leadership in rural regions: linking

mobility, entrepreneurship, tourism development and community well-being. Tourism

Planning & Development, 11(3), 354-370.

Ndivo, R. M. & Cantoni, L. (2015). Rethinking local community involvement in tourism

development. Annals of Tourism Research: 275-278.

Perez-Dacal, D (2012) “The role of seasonality and tourism specialisation in wages and

employment” University of Santiago de Campostela, 2012

Rojas, L (2009) “The Evolution and Importance of Tourism in costa Rica” Estado de la

Nacion en Desarrollo Sostenible,

Saarinen, J. (2016). Cultural tourism and the role of crafts in Southern Africa: The case

of craft markets in Windhoek, Namibia. Tourism, 64(4), 409 – 418.

San Jose’ Shah, K & Gupta, V (2000) “Tourism, the Poor and Other Stakeholders:

Experience in Asia” ODI & Tourism Concern, 2000.

92
Scholtz, M. & Slabbert, E. (2015). The relevance of the tangible and intangible social

impacts of tourism on selected South African communities. Journal of Tourism and

Cultural Change: 1-22.

Steck, B (2010) “Tourism: More Value for Zanzibar” SNV, February 2010.

Sunlu, U (2003) “Environmental Impacts of Tourism” in Local Resources and Global

Trades: Environments and Agriculture in the Mediterranean Region.

South Africa. Department of Environmental Affairs and Tourism. 1996. White Paper:

The development and promotion of tourism in South Africa. Pretoria: Department of

Enviromental Affairs and Tourism.

South African Tourism. 2010. Impact of 2010 FIFA world cup. Available:

[Link]

official-statistics (Accessed 01 Nov 2018).

South African Tourism. 2016. National heritage and cultural tourism strategy launched

by tourism minister. Available: [Link]

media-and-stakeholder-national-heritage-and-cultural-tourism-strategy- (Accessed 7

Sep 2018).

South African Tourism. 2016. 2015 Annual tourism report. Available:

[Link]

(Accessed 19 Oct 2018).

South African Tourism. 2017. 2016 Annual tourism performance report. Available:

[Link]

(Accessed 23 Aug 2018).

93
South African Tourism. 2017. South African fast facts. Available:

[Link]

(Accessed 25 Aug 2018).

South African Tourism. 2015. South Africa's UNESCO world heritage sites. Available:

[Link] (Accessed 13 July 2018).

South African Tourism. 2016. Cultural villages in South Africa. Available:

[Link] (Accessed 08 Nov

2018).

South African Tourism. 2017. UNESCO world heritage sites. Available:

[Link]

heritage-sites (Accessed 19 April 2018).

Tanrivermis, H & Sanli, H (2007) “A Research on the Impacts of Tourism on Rural

Household Income and Farm Enterprises: The Case of the Nevsehir Province of

Turkey” Journal of Agriculture and Rural development in the Tropics and Subtropics,

Vol. 108, No. 2, 2007.

TPRG (2009) “The Application of Value Chain Analysis to Measure Economic Benefits

at Tanjong Piai, Pontian and Johor” Tourism Planning Research Group, University

Teknologi Malysia.

Turner, R & Sears, Z (2014) “Travel & Tourism as a Driver of Employment Growth” in

The Travel & Tourism Competitiveness Report 2013.

94
UNWTO (2008) “Climate Change & Tourism: Responding to Global Challenges”

UNWTO, 2008 UNWTO (2011) “Global Report on Women in Tourism 2010: Preliminary

Findings” United Nations World Tourism Organisation, 2011.

UNWTO (2013) “Economic Crisis, International Tourism Decline and its Impact on the

Poor” UNWTO, 2013.

Vellas, F (2011) “The Indirect Impact of Tourism: An Economic Analysis” Paper

prepared for the Third Meeting of T20 Tourism Ministers, Paris, France, October 2011

WTTC (2012) “Methodology for Producing the 2012 WTTC/Oxford Economics Travel &

Tourism Economic Impact Research”, March 2012.

Zadel, Z., Ivančić, I. and Čevapović, I. 2014. Residents' attitudes towards tourism

potential of small rural city of Pozega. Trends in tourism and hospitality industry, 3: 174-

188.

Zapata, M. J., Hall, C. M., Lindo, P. and Vanderschaeghe, M. 2011. Can community-

based tourism contribute to development and poverty alleviation? lessons from

Nicaragua. Current Issues in Tourism, 14 (8): 725-749.

Zizek, S. S., Treven, S. and Mulej, M. 2015. HRM model in tourism, based on dialectical

systems theory. Management, 10 (4): 335-353.

95