Chairperson, today, with the World Cup a mere 37 days away, I can say with the utmost confidence that not only is South Africa ready to welcome the world, but we cannot wait to host the best World Cup ever. I can say this because I believe that every South African will, as we have done in the past when we have been presented with great opportunities, make the most of this chance to proudly show off our country, our facilities, our culture and our hospitality to the world.
Our future is in the most capable hands we could possibly entrust it to. It is in the hands of all South Africans, united in our effort to show the world the best that we can be. The tourism legacy of the World Cup presents us with a particular opportunity to put our industry on a new trajectory in terms of expansion and growth.
Tourism, both globally and locally, is a powerful catalyst for economic growth, job creation and the redistribution of wealth. Globally, the number of international arrivals grew from about 25 million in 1950 to an estimated 880 million in 2009. This is an industry which not only has direct economic benefits, but also opens up opportunities for small businesses. It has a particularly strong local impact in terms of the provision of goods and services and it also contributes directly to job creation and poverty reduction.
In addition, tourism is one of the major export sectors of poor countries and a leading source of foreign exchange in 46 of the 49 least developed countries. According to the United Nations World Tourism Organisation, UNWTO, in 2009 international tourist arrivals declined in all regions of the world except Africa, which bucked the trend with robust growth of 5,1%. Sub-Saharan regions did particularly well and collectively grew by 6,4%.
Although there are many reasons to be cautiously optimistic about the international picture, we must also keep in mind the risks to the industry. This includes that some of South Africa's main source markets in terms of international arrivals, such as the United Kingdom and Europe, are recovering quite slowly. Recent global incidents, such as the H1N1 virus and the Icelandic volcanic eruption, have again highlighted the vulnerability of the sector in terms of external shocks.
Our local tourism industry outperformed the world trends last year and we saw growth in foreign arrivals of 3,6%, while globally the figure was -4%. That resulted in a total of more than 9,9 million foreign arrivals to the country compared to about 9,6 million in 2008. The total foreign direct spend in 2009 grew by 7%, compared to 2008, totalling R79,4 billion. This is a tremendous feather in the cap of the industry at a time when all other tourism markets worldwide were in a slump, and we continue to outperform all our direct competitors.
Arrivals to South Africa were driven by healthy growth from, amongst other countries, Asia, with a 3,7% increase, African air markets with a 3,3% increase, and African land markets with 5,7% growth. The particularly good growth from China - although it is from a relatively low base - with a 12,4% increase and India with a 7,5% increase, is considered a good return on South African tourism's investment in these markets. I know that there will be issues raised and questions asked and I will respond to them when I reply.
Our mandate to South African Tourism is to invest our money with only one objective in mind, and that is the best possible return on our investment as government - no political decisions, no other kinds of decisions - we as government want the best return on our money.
South African Tourism has recently completed its third review of its portfolio markets and the results point to, amongst other things, significant potential in Africa, particularly in Angola and Nigeria. South African Tourism's international marketing plans will be adjusted accordingly, to make sure that we capitalise on this potential and further extend our good relationships in Africa. Many people historically did not regard Africa as a good tourism market. In our view it is, and we must start focusing on those countries where, at the moment, we have the most potential.
In terms of the local picture, the number of South African adults who undertook domestic trips increased from about 14 million in 2008 to about 15 million last year. This represents about 48% of the population undertaking an average of 2,1% domestic trips in 2009. The number of trips taken, however, fell from about 33 million in 2008 to 30 million in 2009. The average nominal spend per trip also declined from R780 in 2008 to R730 in 2009 as consumers tightened their belts. This is a continuation of a trend that started in 2007 as a result, obviously, of economic pressure on consumers. Given the volatility of the international market, it is, of course, vital that every country fosters a healthy domestic tourism industry, and this is one of the aspects of our industry we will address in the Tourism Sector Strategy. According to the World Travel and Tourism Council - WTTC - estimates for 2009, tourism's direct and indirect contribution to our GDP grew by 2,7% to R198,4 billion compared to the previous year, 2008. This represents 7,4% of GDP.
This kind of continued and consistent growth can be seen as a resounding vote of confidence not only in our tourism industry, but in South Africa as a destination. I have no doubt that our reputation as a world-class destination will be further entrenched after the World Cup.
The World Cup will leave a tangible and lasting tourism legacy in South Africa. We are able to showcase major investments in infrastructure in terms of hotels, transport links, airports, stadia and facilities - and if there are any questions in that regard, I will respond to them when I reply. Our industry will also benefit from powerful word-of-mouth marketing through hundreds of thousands of visitors who will return home as ambassadors and advocates for South Africa as an extraordinary tourism destination.
When the first soccer match of the World Cup kicks off in South Africa on 11 June, it will be the culmination of years of dedicated effort, planning and commitment. Long after the final whistle has blown at the last match, we will continue to reap the rewards of investments in this tournament, which has catalysed huge developments.
The World Cup will showcase South Africa and the continent to the world, optimise tourism and other developmental opportunities, promote football, and foster pride and confidence in Africa as a continent. According to our analysis, for that month - 11 June to 11 July - the World Cup will be watched cumulatively by 34 billion people worldwide. If you combine these elements with South Africa's breathtaking natural beauty, then we have all the ingredients for a powerful tourism and investment destination.
While we are all working nonstop to put the finishing touches on the best World Cup ever, we have also never seen the World Cup as the be-all and end- all. We acknowledge that tourism to and within South Africa has grown significantly since 1994, but we also recognise that it has not yet reached its full potential. There is concurrence that new opportunities need to be explored and, in this regard, we will pursue the development of new niche products. The diversification of our product base is part of the strategy to ensure that our visitors stay longer and, very importantly, that they spend more.
To ensure that there is an integrated and co-ordinated approach to securing the hosting rights for strategic international events, we intend to boost events tourism through the establishment of a National Conventions Bureau under the auspices of SA Tourism. It will be responsible for business and events-tourism marketing and the development of and support for bids, as well as a business tourism and events strategy.
South Africa has already secured 95 meetings and conferences between 2010 and 2016. In addition to this, we have already also put in bids for an additional 45 meetings and conferences for 2011 to 2020. With some of these conferences we are talking about 10 000 to 15 000 delegates. We have seen how sporting and other mega-events lift our nation's spirits and inspire us to be our best.
Sports tourism in South Africa is estimated to contribute more than R6 billion to our tourism industry. More than 10% of foreign tourists come to South Africa to watch or participate in sports events, with spectators accounting for 60% to 80% of these arrivals.
I can give you a very practical example of the effect of events and sports tourism on our fiscus. Research recently undertaken by SA Tourism on the impact of the Confederations Cup and the Lions Rugby Tour last year, found that the two events brought in approximately 52 000 visitors and contributed an estimated R669 million in direct expenditure to our economy. More than 90% of these visitors indicated that they would return to South Africa and, very importantly, that they would recommend South Africa as a destination to others.
Our department is finalising the national tourism strategy. The goal of this strategy is, amongst other things, to inspire and accelerate the responsible growth of the tourism industry in the years 2010 to 2015. So, it is basically a five-year booster plan. We will be ready to launch this strategy for public comment before the end of May.
In order to create an environment conducive to the growth and development of tourism in our country, the department has also embarked on a process to review and update the existing Tourism Act of 1993, which was only amended in 1993, and this piece of legislation comes from the 60s or 70s. The proposed legislation will be tabled in Parliament during the last quarter of 2010, and I look forward to working closely with the portfolio committee in that regard.
Chairperson, I would like to thank all our colleagues in the department, under the capable leadership of the Acting Director-General Mr Dirk van Schalkwyk, for their hard work. I look forward to continuing to work with him as our very capable chief operating officer.
I would also like to take this opportunity to welcome Mr Kingsley Makhubela, who was appointed by Cabinet two weeks ago as our new director- general, and who will assume this position on 1 June. [Applause.] Mr Makhubela, we look forward to your leadership as you steer our department on an exciting new course.
Thank you to SA Tourism, which continues to market our wonderful South African destination so ably. I've already welcomed Thandiwe January-McLean in the front here - she is the new chief executive officer of South African Tourism. She already appeared before the portfolio committee a few weeks ago.
I would also like to express my appreciation to all our partners and stakeholders in the tourism industry - and there are many of them. We have been called upon to work together very closely over the past year, and I trust that these good relationships will thrive and serve us well into the future.
Thank you also, on behalf of our department, to the chairperson and members of our portfolio committee for their constructive interaction and inputs. My gratitude goes to my colleague, here on my right, my Deputy Minister Ms Thokozile Xasa, for her enthusiasm and passion for the portfolio, and I enjoy working with her as my colleague. [Applause.]
Chairperson, the slogan of the World Cup as we all know is: "Ke Nako", meaning "It is time". I am grateful and proud to be a South African as we confidently welcome the world to our shores. We have made it happen; we have done ourselves proud; and we can now say that with just over 30 days left we are ready as a country. I thank you. [Applause.]