Eastern Cape tourism sector poised for growth as investments pour in

Significant tourism investments running into millions of rands which have generated job creation and economic growth opportunities for the Eastern Cape in the last year have placed the province on track to unlock its untapped tourism potential.

Eastern Cape Development Corporation (ECDC) tourism sector specialist Lucky Tshayiviti says the most prominent of these investments is the newly unveiled luxurious Radisson Blu hotel in Port Elizabeth.

Arab investors, Dubai World Africa, have also bought a major shareholding at the world-renowned Shamwari game reserve. The reserve has hosted prominent personalities such as golf legend Tiger Woods and film star John Travolta. The Arabs have brought in modern infrastructure and beautified the area.

"ECDC is also involved in a cable car project in Port St Johns which will cost an estimated R120 million. The cable car, modeled on the Table Mountain concept, will ferry tourists from the town to the mountain which has a beautiful view of the sea and biodiversity. The municipality anticipates that this project will increase the volume of tourists in the area and create jobs.

"A feasibility study has been completed and the Department of Economic Development and Environmental Affairs (DEDEA) is being lobbied for additional infrastructure finance," says Tshayiviti.

ECDC advised the municipality on potential investors for the project and the type of support it can expect to receive from the corporation, government and the private sector.

The municipality is in a process of securing funding having made applications to DEDEA. The municipality has also made funds available from its Integrated Development Plan (IDP) for the project.

"These investments have led to ECDC to develop a tourism sector investment plan for the Eastern Cape. The plan will serve as a comprehensive tool to guide tourism investment in the province. It is currently underway and is due for completion in mid- October," says Lucky Tshayiviti.

Tshayiviti says the plan examines national and regional trends in tourism while identifying international and African markets in which the province can secure tourism investments. ECDC has identified the Arab region, particularly the United Arab Emirates (UAE) as a high priority area in attracting tourism investments followed by Central Europe. The corporation is also planning a mission to the UAE.

"Arab investors have bought land in strategic areas in the province for future developments in the hospitality industry. They've chosen the Eastern Cape because it has the infrastructure and beautiful ecosystems and biodiversity," explains Tshayiviti.

Tshayiviti explains that the sector investment plan follows the review of the provincial tourism master plan last year. The review process examined opportunities in the industry and how to deal with threats, infrastructure development and how these can be translated into investment opportunities.

He says information on tourism investments, visitor numbers, a demand and supply analysis and tourism trends is information that should be readily available and the processes underway will help ensure that this is achieved.

Tshayiviti adds thats tourism is a big money spinner contributing about 8% to South Africa's Gross Domestic Product (GDP). He says the country's tourism industry is growing and therefore there is a need for "reliable information and statistics that will assist us in our planning."

"There is an opportunity for the Eastern Cape tourism industry to take advantage of this growth considering that 2010 is around the corner. Providing the necessary tourism investment infrastructure is one way of ensuring this.

"We must be able to offer tourism investors quality infrastructure and this is where ECDC plays a crucial role in making sure that this infrastructure is made available," says Tshayiviti.

Tshayiviti says the Nyandeni Local Municipality is working with the Development Bank of Southern Africa (DBSA) to advance work on the Mlengana economic development project. The R30 million project includes a tourism village made up of rondavels and restaurants. ECDC has forwarded the proposal to DEDEA for funding.

He says the municipality in Bizana is planning a theme park which will include a guesthouse with hiking trails alongside it to attract tourists into the area. The park will be run by an entity that is yet to be established.

The Baviaanskloof Local Municipality has also approached ECDC for possible funding and signed a memorandum of understanding with the Eastern Cape Parks Board for the development of tourism products in the nature reserve.

Although the Wild Coast is known for its beauty and significant tourism potential, the lack of infrastructure in the area poses huge challenges which have led to the withdrawal of investments. This is because the lack of infrastructure means investors cannot access the area. Subsequently, Port Elizabeth has emerged as the area with the best tourism potential in the province because of established tourism infrastructure.

"There were withdrawals of investments in Coffee Bay in the last two years because of poor infrastructure and lack of access," he says.

Tshayiviti says the plan is to link tourism development with the new focus on rural development. As a result, "we are creating rural tourism products in the former Transkei to sell its cultural heritage." Infrastructure is critical in this regard.

Tshayiviti says plans are underway to create a transport route that will run from KwaZulu-Natal to East London to solve the issue of access to Wild Coast. The R1,3 billion route is expected to create about 4 000 jobs.