Hon Chairperson, hon members, hon Minister and Deputy Minister, in the state of the nation address President Jacob Zuma highlighted the urgent need for the various departments to align their strategies with the National Development Plan, NDP. The NDP makes proposals for the government to tackle poverty, inequality and unemployment, which are the three main problems facing the country.

The NDP recognises tourism as one of the main drivers of the country's economy with the potential to create jobs. The Industrial Policy Action Plan, Ipap2, acknowledges the same potential, in particular the fact that the industry has a low barrier of entry for entrepreneurs and other small emerging businesses. A third policy, the New Growth Path, NGP, also profiles tourism as one of the six priority sectors for economic growth and employment.

The recognition of the tourism industry's potential by these government policies poses a challenge to the national Department of Tourism, which had to respond. Its response is reflected in the adoption of the National Tourism Sector Strategy, NTSS, in 2010 after extensive consultations with stakeholders in the industry. The NTSS sets out indicators, strategies and implementation plans spanning a period of 10 years, from 2010 to 2020. For example, the department's objective is to create 225 000 jobs by 2020, but the NDP targets 11 million jobs by 2030.

Of concern is that, so far, there is no indication as to how and when the department plans to extend its targets and align them with those of the NDP, as directed by the President in the state of the nation address. It should be noted that the adoption of the NTSS in 2010 preceded the handing over of the NDP to the President in 2012. Also, once the Tourism Bill, which has been passed by the National Assembly last month, is promulgated into an Act, it will be imperative for the department to align the implementation of section 4(2) with the 2030 targets. This section speaks to the setting of objectives, indicators, targets, promotion, transformation of tourism, and so on.

However, let me be quick to acknowledge that much has been achieved by the Department of Tourism since the adoption of the White Paper in 1996, particularly in the last financial year. The department managed to meet most of its targets without major hindrances and, in some cases, actually exceeded them. However, Cope is not convinced that at the rate at which jobs are created, the department will achieve its target, set at 22 500 jobs per annum or 225 000 by 2020.

With regard to marketing and branding South Africa as the best destination to visit, the SA Tourism agency continues to improve the international tourist arrival volume, which grew by 10,7% as against a global average of 4% for the same period.

Domestic tourism, including tourists from African countries, also continues to grow. SA Tourism still faces some challenges as it was unable to meet 55% of its targets due to a number of reasons, including the global economic recession. The challenge to SA Tourism and the department is to increase efforts to market South Africa to the local communities and to develop a domestic tourism potential.

Thus Cope welcomes the allocation of R369 million to the Domestic Tourism programme. This is the second highest in Programme 2, under domestic programmes. This recognises the still largely untapped potential.

The zoning of the country into two regions for purposes of implementation will also make the planning, execution, monitoring and evaluation of the Domestic Tourism programme a lot easier. It should lead to a more focused approach and better co-ordination among the three spheres of government, resulting in growth and the development of the sector.

We also welcome the emphasis placed on the implementation plan for the social responsibility programme, in particular the Expanded Public Works Programme, EPWP. However, we are concerned that the R319 million transferred from the Department of Trade and Industry to the tourism support programme in October last year will not be used in the current financial year. Six months down the line, one would have expected the department to have put in place a business plan for its implementation.

We see this fund as being crucial in alleviating some of the long-standing difficulties experienced by the small, medium and micro enterprises, SMMEs. The need to capacitate the emerging tourism businesses, particularly those of the historically disadvantaged groups, cannot be overemphasised.

The improvement in addressing the Auditor-General's concern on irregularities in the implementation of the EPWP in 2010-11 is noted. It is hoped that such irregularities will be a thing of the past, now that the different spheres of government aim to plan and monitor programmes together. The tourism support programme should produce visible and sustainable jobs.

The NTSS adequately addresses the issue of intergovernmental relations. What remains will be effective implementation. The conference held between the national Department of Tourism and the municipalities is a step in the right direction. It is a fact that tourism sites and tourist attractions reside at the municipal level. Therefore, municipalities which oversee these sites should play an important and visible role.

However, the hurdle remains the budgeting for tourism activities at this level. The SA Local Government Association, Salga, maintains that tourism is not a legislative imperative for local government; hence in the Integrated Development Plans, IDPs, it comes after the basic needs such as water and electricity. What needs to be done to cross this hurdle?

At the interdepartmental level, much still needs to be done if South Africa is to reach the full potential for tourism. The state of the nation address notes that lessons learnt in implementing ... I thank you. [Time expired.] [Applause.]