Model 4: Qualitative and Quantitative Methods are used equally
6.2 THE TOURISM DEVELOPMENT AGENCY APPROACH
6.2.1 Ugu District Municipality
Ugu District Municipality opted to develop a tourism development and marketing agency that conducts the tourism function in the district on behalf of the district municipality. A company called Ugu South Coast Tourism (Pty) Ltd (UGUSCT) was therefore established as a development and marketing agency for Ugu District Municipality. According to KwaZulu-Natal Top Business (2011) tourism is a major economy cultivator in the district and is based on the sea and associated activities.
Ugu District Municipality has a number of highly acclaimed Blue Flag beaches. The large waves are ideal for surfing and the countless bays boast model areas for sea kayaking, kite surfing and scuba diving. Fishing along the coast has become a popular sport for both locals and holiday makers. "The Greatest Shoal on Earth"
describes the huge number of sardines that leave Africa's west coast to follow the
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plankton-rich cold ocean current that flows up the south coast during the winter months (UGUSCT, 2010).
Fifty thousand common and bottlenose dolphins, sharks, schools of game fish, seals and thousands of sea birds all follow the huge shoal, competing for nature's bounty.
The Ugu District Municipality region offers unsurpassed natural wonders in the hinterland. The Oribi Gorge is a natural gorge that offers sporting activities not for the faint-hearted, such as the Wild Swing, Rock Climbing, Abseiling, and many more.
Ugu South Coast Tourism is responsible for ensuring that all these tourism attributes of Ugu District Municipality are developed such that they become tourism attractions and benefit all the citizens of the district. For the purpose of this study, the approach adopted by Ugu District Municipality is called the Tourism Development Agency Approach (UGUSCT, 2010).
6.2.1.1 Institutional legitimacy of Ugu South Coast Tourism
According to the General Manager, Tourism Development, of Ugu South Coast Tourism (Pty) Ltd, this municipal entity is a multi-jurisdictional agency. The Ugu District Municipality established Ugu South Coast Tourism (Pty) Ltd as a Municipal Entity as contemplated by Section 86B of the Local Government Municipal Systems Act (Act 32 of 2000). Ugu South Coast Tourism (Pty) Ltd covers the local municipality areas of Ezinqoleni, Hibiscus Coast, Umdoni, Umuziwabantu, Umzumbe and Vulamehlo which are established within the geographical area of the Ugu District Municipality. In terms of Section 84 of the Local Government: Municipal Structures Act and Chapter 8A and specifically Section 86 of the Local Government: Municipal Systems Act, only Ugu Municipality is authorised in the district to deal with and develop Tourism in terms of its Service Level Agreement with South Coast Tourism (Pty) Ltd (UGUSCT, 2010).
Ugu South Coast Tourism (Pty) Ltd is operated, managed and administered at both strategic and operational levels. The company is entirely owned by the Ugu District Municipality. Strategic direction is provided by the Board of Directors appointed by Ugu District Municipality. The Board members are a combination of public and
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private sector professionals. Municipal Managers from all six local municipalities and a senior official from the Ugu District Municipality are members of the Board of Directors. The Chief Executive Officer (CEO) of UGUSCT is responsible for implementing strategic issues whilst at the same time, manages the operations of the company, [http://www.tourismsouthcoast.co.za. (2010)].
6.2.1.2 Rationale for the Development Agency Approach
The aims and objectives of the UGUSCT are to promote tourism growth and development of tourism in the Ugu District Municipality area. UGUSCT aims to develop new tourism initiatives in the hinterland, improve existing tourist attractions and market the region as a premier tourist destination. UGUSCT also seeks to provide Visitor Service Centre’s of high quality. Service Centre’s will provide professional service to the community of the region and visitors. UGUSCT offers services such as provide tourism advise to existing and new members; coordinate training and workshop for participants in the tourism sector; monitor compliance to district and local tourism policies by established and new entrants to the local tourism operator industry. The UGUSCT was therefore developed as the implementing agency for all the tourism related activities by Ugu District Municipality to ensure that all the local municipalities receive an equal attention and the tourism potential for all the regions with Ugu District Municipality is unleashed (UDM, 2010).
Ugu District Municipality and all the local municipalities contribute funds to the operations of Ugu South Coast Tourism (PTY) Ltd to ensure that all the areas under Ugu District Municipality receive an equal attention and are properly serviced by this entity. As much as Ugu District Municipality is an hundred percent shareholder of UGUSCT, local municipalities contribute financially to the agency in fulfilling their statutory requirement to develop and promote local tourism.
6.2.1.3 Effectiveness and policy alignment
Ugu South Coast Tourism operates within the national, provincial and district tourism policies. Tourism development and marketing conducted by this entity needs to be aligned with the legislative and policy provisions that govern tourism for all
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municipalities. Ugu District Municipality did not delegate policy matters to Ugu South Coast Tourism. Ugu District Municipality is still responsible for developing the Tourism Plan for the entire Ugu district. The district municipality is also responsible for policy alignment with the provincial government. The province of KwaZulu-Natal has developed a number of tourism coordinating structures, one of which is the Provincial Tourism Committee (PTC) [(UDM, 2010)..
The policy on terms of reference for the Provincial Tourism Committee established in terms of section 32 (a) of the KwaZulu-Natal Tourism Act, Act no. 11 of 1996 as amended in 2002 states that “The Minister may, after consultation with the Portfolio Committee, and by notice in the Government Gazette make Regulations on matters relating to meetings and manner of operation of the PTC established in terms of section 34 of the Act” (KZN ACT, 1996: 5) The purpose of the PTC is to allow the Minister of Economic Development and Tourism, Districts Municipalities together with the Metropolitan and other stakeholders to deliberate on tourism related issues and make recommendations for implementation by the Provincial Tourism Forum (PTF) which is a technical committee responsible the implementation of the PTC resolutions.
The Provincial Tourism Committee (PTC) discusses high level tourism policy issues that have a bearing at a provincial level. The mayors and municipal managers of district municipalities and some selected local municipalities serve in this committee.
The mayors and municipal managers of Ugu District municipality and Hibiscus Coast Municipality serve in the Provincial Tourism Committee. The Chief Executive Officer of Ugu South Coast Tourism only attends the PTC by invitation as this is a provincial policy structure and not an implementing structure and attends the Provincial Tourism Forum on behalf of the District. The Chief Executive Officer of Ugu South Coast Tourism also serves in a provincial tourism development coordinating structure called the Provincial Global Competitiveness Steering Committee (GCP). The GCP committee discusses development of mega tourism projects in the province.
Deliberations at this committee also include transformation of the tourism industry,
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safety and security for tourists and issues of access to KwaZulu-Natal as a tourism destination (UDM, 2010; UGUSCT, 2010).
Ugu South Coast Tourism plays a major role in ensuring that the tourism development plans hatched at a provincial level are firstly communicated with all the tourism stakeholders within Ugu District Municipality and then implemented accordingly. UGUSCT also plays a critical role in attracting tourism investments to Ugu District Municipality. UGUSCT has also ensured that tourism development does not only take place along the coastline with popular beaches in the South Coast but this development agency has secured financial support to develop community-based tourism projects in the hinterland local municipalities to ensure that tourism spoils are also enjoyed by local communities within the rural set up of Ugu District Municipality.
The six local municipalities within Ugu District Municipalities are still responsible for determining municipal tourism by-laws as espoused by the White Paper on Development and Promotion of Tourism in KwaZulu-Natal. The function of formulating tourism by-laws, which are tourism policies at a local level, are therefore not delegated to UGUSCT. The mandate and function of UGUSCT in relation to municipal tourism by-laws is to ensure that the existing tourism business owners and the new entrants into the tourism industry within Ugu District Municipality jurisdiction comply not only with the municipal tourism by-laws but with the national and provincial tourism legislations and policies as well. The provincial government of KwaZulu-Natal has also directed all the municipalities within the province to develop District Tourism Forums (DTFs) at a district municipality level and Local Tourism Forums (LTFs) at a local municipality level (KZN-DEDT, 2008)
The Ugu District Municipality is expected to have Ugu District Tourism Forum and all the six local municipalities within Ugu District Municipality are expected to have Local Tourism Forums. In aligning with the provincial government, Ugu South Coast Tourism advised Ugu District Municipality to establish structures that will conform to provincial requirements but in a modified manner that suits local conditions. At a district level a structure equivalent to the District Tourism Forum called Ugu Tourism
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Development Forum has been established. The structure is chaired by the Chief Executive Officer of Ugu South Coast Tourism and sits quarterly The Ugu Tourism Development Forum comprises councillors responsible for tourism portfolio at a district and local municipality level; all the tourism and local economic development officials; and trade representatives from all the six local municipalities within Ugu District Municipality (DEDT, 2008a-g). At a local municipality level, structures called Tourism Area Committees have been established in all the six local municipalities.
The Tourism Area Committees are equivalent to the Local Tourism Forums as directed by the provincial government. The representation at Tourism Area Committees comprise councillors responsible for tourism at a local municipality level, tourism official from a local municipality and tourism trade partners at a local level and sit on a monthly basis.