Tourism,business linkages and small enterprise development in South Africa

Although considerable attention is given to the prospects for developing small, medium and micro-enterprises (SMMEs) in South Africa's tourism economy, very little relevant research has been undertaken in this regard. In this article, the findings are presented from over 60 detailed interviews conducted with key enterprises and entrepreneurs involved in tourism, outsourcing and small enterprise development in South Africa. The aim is to examine opportunities for outsourcing and business linkage development in South Africa's tourism economy, and to investigate the difficulties that confront the tourism SMME economy through examining the status of business linkages between large tourism enterprises and SMMEs in South Africa. The South African research is located within the context of existing works on tourism and small enterprise development in developing countries.     

Information communication technologies and the potential for rural tourism SMME development: The case of the Wild Coast

This article explores how information communication technologies (ICTs) can help tourismbased small, medium and micro-enterprises (SMMEs) address their constraints to growth and development in rural South Africa. More specifically, it reports on research conducted in the Wild Coast region of the Eastern Cape province focussed on the constraints, and related information needs affecting the success of rural SMMEs operating in the tourism industry, and explores how ICTs might address these limitations. Within the context of the constraints faced by rural SMMEs, this article examines the information needs and current patterns of communication that impact on the development of the sector, the nature of tourism SMMEs in the case study area, and the potential use of ICTs to support tourism-based SMME development in rural areas.     

Tourism and regional development: The case of South Africa's distressed areas

Uneven development is a long-established feature of South Africa's space economy. Recent policy initiatives have been launched for tourism to be a vehicle for regional development. Against the background of international debates about tourism and regional development, this article examines the tourism economy of South Africa's 23 priority development districts or distressed areas that are the current focus of national policy to redress uneven development. The nature and growth of tourism occurring in these areas is shown to be primarily domestic tourism and concentrated upon visiting friends and relatives travel. The prospects for regional development ultimately hinge upon leveraging potential assets for leisure tourism. Key challenges for incipient tourism-led regional development in South Africa are identified.     

SDIs: Infrastructure,agglomeration and the region in industrial policy

This article reports on the initial findings of an Industrial Strategy Project Research Programme on a key current element of national industrial policy, namely Spatial Development Initiatives (SDIs). The ISP Research Programme is concerned with industrial investment. The operational industrial SDIs are examined against the backdrops of the pattern of contemporary industrial location in South Africa and the emergence of a regional industrial policy for the country; the long‐run experience with SDI‐type programmes internationally and in South Africa; and directions in current regional industrial development theory and practice, particularly those interventions aimed at strengthening the economies associated with regional/sectoral clusters or agglomerations typically embedded in metropolitan locations. The preliminary findings of research commissioned on long‐run industrial development in Richards Bay, and the current SDI processes under way in the Fish River SDI (Eastern Cape) and the West Coast SDI (Western Cape) are then presented These findings demonstrate that for the SDIs to meet their intentions in terms of maximising inward investment, creating jobs and catalysing durable regional economic development, the large opportunity present to use SDI processes to build the capacity and social infrastructure for economic development at local and regional level on — and between — both public and private sector sides should be grasped. To this end, it is also suggested that SDIs be closely linked to other government industrial promotion and support activities, notably the cluster initiatives and SMME support programmes, both of which may themselves need, at this point, far clearer regional focus.     

Tourism and local economic development: The case of the Highlands Meander

Local economic development (LED) planning is of major policy importance in post-apartheid South Africa. Although issues surrounding LED have attracted considerable policy attention, one neglected theme has been the role of tourism as a lead sector for LED. The aim of this article is to examine the planning and workings of one tourism-led LED initiative in South Africa. The case study is that of the Highlands Meander in Mpumalanga province, where five towns are collaborating in their LED initiatives in order to promote the area's tourism products. A key finding is that this growing tourism initiative is currently not benefiting local black communities. Recommendations are offered for developing a pro-poor tourism initiative.     

The impact of tourism on poverty in South Africa

This paper evaluates the potential impact of tourism on poverty in South Africa on the basis of recent survey data on international tourism spending patterns. It looks at three scenarios, using an applied general equilibrium model. The main finding is that the poor benefit very little in the short term from additional tourism income. A further finding is that domestic and international tourist expenditure affect the economy differently; both markets are therefore important. In essence, the research confirms that tourism receipts can be used as a tool to alleviate poverty, but in South Africa this must be supported by policies that focus on the labour market and human resource development.     

The role for competition policy in economic development: the South African experience

Competition policy is part of the new international orthodoxy in economic policy and, at the same time, was viewed in South Africa as a crucial element of economic transformation. This article reviews the role of competition policy in economic development and the experiences of developing countries such as Brazil and South Korea. It then assesses the effects of competition policy in South Africa after 1994, with the main focus being on the performance of the new competition institutions established in 1999. The case of the steel industry is used to assess the approach and impact of the institutions in a concentrated sector that has simultaneously undergone processes of liberalisation and domestic consolidation.     

The impacts of tourism investment on rural communities: Three case studies in South Africa

Significant research, both locally and internationally, has been undertaken on tourism development and its impacts on the empowerment of rural communities. This article analyses the extent to which three tourism projects in South Africa, namely the Makuleke tourism initiative, Umngazi River Bungalows and the commercialisation of Manyeleti Game Reserve, have improved the livelihoods of rural communities and contributed to rural economic development. The projects are analysed in terms of both their economic and non-economic benefits, as well as their contribution towards the attainment of certain key policy objectives of the South African government.     

Domestic tourist spending and economic development: The case of the North West Province

Globally, tourism is the largest and fastest growing industry, outpacing all other industries. In South Africa, tourism is widely regarded as a growth catalyst, able to generate much-needed income and employment opportunities. The market potential of domestic tourism has, however, been downplayed in favour of international tourism. This research argues that tourism – especially domestic tourism – can contribute significantly to regional growth and development in South Africa. A survey was carried out among domestic tourists in the North West Province, one of the poorest provinces in South Africa. This survey was used to draw up a demographic and spending profile of the average domestic tourist in the province, and to determine the possible implications of this spending on different macroeconomic variables in the province.     

An empirical analysis on the effects of the inflation targeting framework on monetary policy in South Africa

This article examines the impact of the adoption of an Inflation Targeting (IT) framework in 2000 on the conduct of South Africa’s monetary policy. Taylor rule analysis is used to test empirically whether the implementation of IT in South Africa can be shown to have impacted on the conduct of monetary policy. In particular, the article analyses whether the implementation of the IT framework yields the expected changes when comparing the conduct of monetary policy pre and post the adoption of the IT framework. Thereafter, an analysis of term structure of interest rates, which serve as a proxy variable for market expectations, is used to test whether South Africa’s IT framework has resulted in more predictability and transparency in monetary policy conduct. Lastly, the article analyses the impact of the global financial crisis of 2008–2009, the so‐called Great Recession, on the predictability and transparency of monetary policy in South Africa.     

Making tourism work for the poor: Strategies and challenges in southern Africa

This article analyses strategies for 'pro-poor tourism' (PPT), ie strategies that increase the benefits to poor people from tourism development. Based on an international review of six pro-poor tourism case studies, it outlines the wide range of pro-poor tourism strategies used and their impacts to date, with particular focus on southern African case studies. By analysing their progress, problems and the critical factors influencing them, the article identifies implications for the way forward. This review underpins four propositions. First, despite commercial constraints, much can be done to enhance the contribution of tourism to poverty reduction, and a 'PPT' perspective assists in this endeavour. Secondly, PPT strategies can, and should be, incorporated by all actors in tourism, whether in government or business, at local or policy level. Thirdly, a wide range of impacts on poor people, going well beyond jobs, need to be recognised and enhanced. Finally, PPT strategies are difficult, but particularly relevant in southern Africa given the challenges of economic and political transformation, as well as the opportunity to influence international discussions on 'sustainable tourism' at the World Summit on Sustainable Development in Johannesburg in 2002.     

The impact of the South African government's SMME programmes: a ten-year review (1994–2003)

This article critically reviews the impacts of the first ten years of the national government's small, medium and microenterprise (SMME) programmes. In particular, the evaluative focus is in terms of impacts in relation to a range of policy objectives, including poverty alleviation, job creation and the enhancement of national economic growth as part of post-apartheid reconstruction. Key findings relate, inter alia, to the weak state of official data for undertaking impact evaluation; the fact that the SMME economy exhibits only a weak contribution as regards employment creation because most SMMEs do not grow; and, the fact that existing government SMME programmes largely have been biased towards the groups of small and medium-sized enterprises and, to a large extent, have bypassed microenterprises and the informal economy.     

Constraints facing tourism entrepreneurs in South Africa: a study in the Gauteng and Mpumalanga provinces,South Africa

The current study is an investigation into tourism entrepreneurship of small, medium and micro enterprises in Gauteng and Mpumalanga. Through Principal Factor Analysis, the paper identifies a three-factor instrument that could be used as a diagnostic tool to investigate how government policies and support, the tourism industry's products and services, and perceptions about South Africa could advance or constrain the development of small, medium and micro tourism in South Africa. Such a tool can be used to identify problematic areas in order to take remedial action to manage sustainable tourism in South Africa and prevent the leakage of profits.     

Rethinking township tourism: Towards responsible tourism development in South African townships

Township tourism in South Africa has grown in popularity since 1994 and is considered by some to be an appropriate mechanism for stimulating local economic development. This paper suggests, however, that it is not necessarily a viable or responsible development option, since it does not automatically ensure pro-poor benefits or enhance community development. Primary research conducted in Soweto to understand visitor demand and tourism stakeholder perspectives suggests there is a demand for responsible tourism in townships. The paper contributes to South African debates about the developmental role of tourism, township tourism and local economic development, responsible tourism, and the related policy implications. It calls for responsible township tourism development in which local authorities play a vital role and recommends the development of township tourism attractions, with a focus on culture and heritage, to create unique visitor experiences.     

WHAT PRICE‐LEVEL DATA CAN TELL US ABOUT PRICING CONDUCT IN SOUTH AFRICA

This article reports the findings of a study of two unique microdata sets, which are the unit level basis of South Africa's measured Consumer Price Index and Producer Price Index, over the period December 2001‐December 2007. In particular, based on techniques that have been used in comparable international studies, findings are reported on the frequency and magnitude of price changes, the duration of prices, and heterogeneity in pricing. The results for South Africa are compared with the stylised facts for pricing conduct, which have been presented in recent international studies. The article offers an illustration of how microdata‐based findings on pricing conduct may impact on the modelling of monetary policy by introducing micro‐founded results into an open economy dynamic stochastic general equilibrium model for the South African economy. The article concludes by identifying areas for further research, where it has not as yet been determined how South African pricing conduct compares with certain stylised pricing facts identified in the international literature.     

Tourism development in the SADC region: The opportunities and challenges

This article presents an assessment of recent tourism performance in the countries of the Southern African Development Community region, as well as an evaluation of future prospects. It examines growth rates and source markets in developing a profile of current tourism to the region. It identifies and assesses the current and probable future impact of a range of issues and problems, which are serving either to help or hinder tourism development. It suggests necessary actions for facilitating the accelerated development of tourism. The article also analyses the countries' tourism development policies and their competitive standing with other parts of Africa and other world regions from the market's viewpoint. It evaluates future growth prospects for the region by relating these various strands of analysis to the assessments made in the World Tourism Organization's Tourism 2020 vision study. The conclusion is one of qualified optimism: the natural and sociocultural resources of the region match the growing tastes of the international tourism market but, without concerted action to improve international access and tackle the major (real and imagined) threats to tourist safety prevailing in the region, growth rates will continue to be below their potential. The region's physical remoteness from the military theatre of action consequent to the 11 September 2001 terrorist attacks in the United States could well bring the countries of the SADC, and especially South Africa, some benefit from being perceived in tourist-generating markets as safe from these activities.     

Towards a science and technology‐policy for South Africa

The history of industrial development in South Africa is marked by lack of a coherent science and technology policy. The changing political and economic context has brought a recognition of the need for such a policy, especially for attaining international competitiveness. This article explores some considerations that should enter into the formulation of such a policy. It focuses on the definition of goal sets for science and technology policy and on the mechanisms needed to pursue them; discusses the debate between the structuralist and neoclassical approaches to the role of technology in growth and development; and examines the roles of various research and development agents and some of the main determinants of R&D activity for their implications for policy instruments.     

Nature-based tourism on communal land: The Mavhulani experience

South Africa is experiencing a boom in nature-based tourism in which underdeveloped and previously marginalised homeland areas are not sharing. The aim of this article is to determine some of the crucial constraints which inhibit tourism in these areas, by exploring various tourism development issues based on insights gained from research undertaken at Mavhulani bush camp, a seemingly successful nature-based tourism development project. This venture is run on communal trust land in the former Venda homeland area.     

Agricultural trade policy reform in South Asia: the role of the Uruguay round and policy options for the future WTO agenda

This paper examines the role of the Uruguay Round Agreement on Agriculture (URAA) in agricultural trade policy reform in South Asia and policy options for the future reform agenda of the World Trade Organization (WTO). A key policy inference is that, to be effective, planning for freeing agriculture should involve simultaneous reforms of import and export regimes, and domestic production support mechanisms. Policy related lending, in particular provision of financial support for social safety programs, can play an important role in making such comprehensive reforms politically palatable and feasible. While overloading the WTO with matters that fall beyond its purview may be counterproductive, there is certainly a case for a coordinated effort involving the WTO and international development finance institutions.     

Mobile entrepreneurship: Informal sector cross-border trade and street trade in South Africa

This article presents the results of a study on the participation of non-South Africans in the handicraft/curio sector of street trade in South Africa in informal sector cross-border trade. The findings provide an introduction to the largely unexplored phenomenon of informal sector cross-border trade between South Africa and neighbouring states and challenge some of the common myths about non-South African street traders which pervade public discourses around migration. The Southern African Development Community (SADC) is presently involved in prolonged and contentious negotiations to establish a free trade area for the region based on the SADC protocol on trade and development. At the same time, against a backdrop of anti-immigrant rhetoric, the South African government is developing a new migration policy. The article argues that informal cross-border entrepreneurs should not be disadvantaged by the renegotiation of regional trade agreements and the reformulation of South Africa's new migration policy.