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Recommended Citation Van Deventer, Marna, "The mpI act of political and socio-economic strategies on crime and service in developing countries; A Focus on South Africa" (2000). Thesis. Rochester Institute of Technology. Accessed from

This Thesis is brought to you for free and open access by the Thesis/Dissertation Collections at RIT Scholar Works. It has been accepted for inclusion in Theses by an authorized administrator of RIT Scholar Works. For more information, please contact [email protected]. ROCHESTER INSTITUTE OF TECHNOLOGY Department ofHospitality and Service Management Graduate Studies

M.S. Hospitality- Presentation of Thesis/Project Findings

Name: Mama van Deventer Date: 11/16/00 SS# _

Title ofResearch: The Impact ofPolitical and Socio-economic Strategies on Crime

And Service in Developing Countries:

A Focus on South Africa

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Thesis Committee: (1) Dr. James Jacobs, Jr. (Chairperson)

(2) Dr. Richard Marecki

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Title ofThesis/project: The Impact ofPolitical and Socio-economic Strategies

On Crime and Service in Developing Countries' A Focus on South Africa

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FORMK The Impact of Political and Socio-economic Strategies on

Crime and Service in Developing Countries:

A Focus on South Africa.

by

Marna van Deventer

A project submitted to the Faculty of the School of Hospitality and Service Management at Rochester Institute of Technology in partial fulfillment of the requirements for the degree of Master of Science

May 1998 Abstract

The purpose of this study is to examine the current situation of crime and service in South Africa and the various factors influencing it. Strategies and measures taken to address these problems are discussed. Data gathered shows crime rates as compared to the United States of America and major capitals throughout the world.

This study shows the impact crime and bad service has had on the tourism industry in South Africa and the necessity to find and implement a holistic plan for the future. Most developing countries in the world are faced with similar issues that are impacting the success of the tourism industry as successful income provider. Current studies and crime prevention models are based on First World countries with economies and societies strong enough to combat crime successfully. The reality is that these strategies are not completely transferable to countries without the resources and infrastructure of their First World counterparts. Given the multitude of restraints and obstacles that South Africa is facing, some of the strategies currently employed that show some degree of success might be implemented and beneficial for other developing countries, as an alternative to current strategies in place.

in Acknowledgements

I arrived from South Africa in March 1 998 with a vision and a lot of determined to succeed. My first day on campus became the beginning of the very best time of my life. To Diane Sommers and Anne Zachmeyer a very special thanks for taking me under their wings and making me "one of the family". In memory to my advisor Dr. Richard Marecki for wisdom and learning. With thanks also to Dr. Francis Domoy and Dr. Jim Jacobs for focus and support throughout.

Also, I want to thank the people close to me that supported me with love and assistance: My sister Lisl, that unfailingly provided me with masses of

requested information, statistics and research material. My mother Adelheid, that encouraged me and provided me with all the information I needed from the

Department of Environmental Affairs and Tourism that she works for. For Heidi a big thanks for all the literature sources and Johan for his interest.

To my husband Tony - your love and support has been a pillar of strength for me. Thank you for all you gave.

Finally, I want to dedicate this paper in memory of my father, Johannes Cornells

higher- van Deventer. He taught us to climb mountains and to always go with determination, dedication and commitment. That has made it possible for me to succeed.

IV Table of Contents

Page

Abstract iii

Acknowledgements iv

Table of Content v- vii

List of Tables viii

List of Figures ix, x

Chapter 1 : Introduction

Introduction 2, 3

Problem statement 3

Background 4-6

Purpose 6

Significance 7

Methodology 7, 8

Hypothesis 8

Scope & Limitations 8

Instruments used 8

Definition of terms 9

Chapter 2: Literature Review

Introduction 10 Section 1 : Political structures

1. Background 10-12

1.1 The role of tourism in SA 12

1.2 The problem 13-16

1 .3 Visions, objectives and principles 17,18

Section 2: Socio-economical influences

1. Background 18-28

2. The problem 29-33

Section 3: Crime

1. Background and statistics 33-67

2. Initiatives to combat crime taken by various sectors 68

2.1 Government initiatives 68, 69

2.2 Political parties 69, 70

2.3 Business 70-72

3. Key constraints 72-73

4. Opportunities 74

Section 4: Improved service quality

1. Background 74-76

2. Key constraints 77, 78

Summary 78

Chapter 3: Findings, conclusions and recommendations

Introduction 79,80

Summary of the Review of Literature 80, 81

VI Summary of the Methodology Used 81

Conclusions 81, 82

Recommendations 82

Chapter 4: References 83-89

VU List of Tables

Page

Table 1 : World Tourism Statistics of international arrivals,

international receipts and projected growth of

international arrivals 21

Table 2: International / Foreign arrivals to SA, 1980-1997... 27

Table 3: Crimes reported in SA, 1 987 - 1 994 38

Table 4: Crime in major cities throughout the world 44

Table 5: USA and SA population statistics 47

Table 6: Crime in the United States 50

Table 7- Crime in the South Africa 54

Table 8: Crime statistics in the USA and SA compared 62

visitors' Table 9: International ratings: impressions of

service and safety 66

VUl List of Figures

Page

Figure 1: Map of Africa 1

Figure 2: Map of South Africa 1

Figure 3: International arrivals worldwide, 1 960 - 1 995 22

Figure 4: International receipts, 1960-1995 23

Figure 5: International arrivals, projected growth:

1995-2010 24

Figure6: International arrivals to SA, 1980- 1997 28

Figure 7: .Violent crimes 39

Figure 8: Social fabric crimes 40

Figure 9: Property related crimes 41

Figure 1 0: Violence aimed at property 42

Figure 11: Homicides reported, 1995- 1997 45

Figure 12: Homicides per 100,000 of the population of the city

average 46

Figure 13: SA population by provinces 48

Figure 14: Population of the USA versus SA 49

Figure 15: Violent crimes 51

Figure 16: Social fabric crimes 52

Figure 17: Property related crimes 53

Figure 18: Violent crimes 55

Figure 19: Social fabric crimes 56

IX Figure 20: Property related crimes 57

Figure 21 : Commercial crimes 58

Figure 22: Violence aimed at property 59

Figure 23: Crimes heavily dependent on police detection 60

Figure 24: Crimes unaccounted for 61

Figure 25: Crime statistics: SA&USA1994 63

Figure 26: Crime statistics: SA&USA: 1995 64

27' Visitors' Figure ratings of SA 67 Figure 1 : Map of Africa

Figure 2: Map of South Africa (Provinces)

SOUTH AFRICA - provinces

ibiburg

Durban

ATLANTIC fNOfAN OCEAN OCEAN

East London

Cape Town Port Elizabeth CHAPTER 1

Introduction

The tourism industry in developing countries like South Africa (SA) has undergone major change in the last century. Even so, it has lagged behind world development because of various aspects prevalent in its economy and society.

For example, losses in revenue to the hospitality industry occurred to the amount of million cancellations of a terrorist R1 , 2 due to after international reporting

bombing at a popular in August 1998 (Business Day, 1998). A

negative image of the country as a tourist destination is easily formed because of widespread reporting of criminal incidents and high crime rates. Subsequently, that

leads to mistrust of the country as valid tourist destination. Those hospitality

institutions still in business had to increase prices so drastically in order to survive,

that prices became unaffordable for the local population, making it impossible for

them to contribute realistically to the hospitality industry.

The influences poor service and crime statistics have on international

nightmare" travelers are immense. It results in the so-called "traveler's that

unfortunately occurs quite often in developing countries all around the world: mixed

up hotel reservations, poor assistance at airports or hotels, leaving tourists stranded, being robbed or even being brutally attacked. Many aspects of life contribute to the present situation and conceptions: The political and governmental structures that do not exercise enough support or control to combat or contain bad situations or the insufficient acknowledgement or addressing of the existing problems. Social and cultural situations as well as differences have an enormous

impact. The current as well as the historical economic situation adds to the problem of poor service and crime. Communication barriers, training, and empowerment are those aspects that have the strongest influence on the grass

roots level. All of these and more are intertwined and have an immense impact on the tourism industry. The influences and impacts that all of these (and many more factors like these) can have on a growing industry are immense and not accounted for enough by the tourism industry and in particular service providers.

This paper will provide insight into the factors contributing to and the

reasons for the prevailing high crime rate and poor service, as well as the

measures that up to now has been taken to address these situations. It will also

report on the results that these actions might possibly have on the main tourism

industry in South Africa (SA).

Problem Statement

In SA there is an enormous potential for tourism to become one of the main

income factors in the country's economy. Unfortunately the high crime rate and

poor levels of service that exists have negatively impacted the industry. There is

still too strong a focus on marketing and improving, of local tourist facilities as

solution to sustainable tourism development for the future while not enough

attention is paid to actual crime prevention strategies, the upgrading of existing

service concepts or training programs to improve service. Background

Tourism is becoming globally more and more competitive and developing

countries (that mostly consist of Third World economies) are starting to rely more

heavily on tourism as a vital part of their national Gross Domestic Product (GDP).

Recently SA has been focusing on and are preparing for major tourism revenue as

a main future income provider, as the industry is growing to the world's largest

GDP

"discovered" Some countries have been for their exoticness or are in the

process of becoming a highly desirable destination for travelers. SA definitely has

that potential: balmy climates, exotic cultures, wide beaches stretching for

hundreds of miles along the country's shores, spectacular mountains, gorges and

most importantly, one of the three oldest nature reserves in the world where a

scientific approach to nature conservation assures the survival of threatened

species and offers the traveler a chance to experience nature at its best.

Unfortunately, various factors can make traveling in SA a sometimes difficult and

"word-of-mouth" even outright negative experience, preventing return or positive advertising that results in loss of revenue.

There are various reasons for this occurrence: Perceptions and strategies that have been garnered in the past century still have a strong influence on the present. Changes are taking place slowly and the strategies that are followed and designed to prepare SA as a major tourist destination, with the hope of it becoming the strongest economic source of income for the country, seems to be based more strongly on developing facilities and marketing procedures. Very little attention is paid to the improvement of current structures and implementation of new forces to combat criminality, improve service quality and to change society's perception and practice of it.

Poor service quality in all the levels of the tourism industry results from a multitude of things - at all levels of society, from governmental structures to the employer's or employee's perception of service quality, incompetence through ineffectual training that prevents empowerment at even the grass-roots-level.

Other factors like cultural differences and language barriers are attributed to the state of service, creating an appalling situation that needs to be rectified as soon as possible.

Most important though, are the high crime rate and the impact that has on

power" the country. A major part of the country's "brain is being drained through a wave of emigration in an attempt to escape the situation. This creates a gap in trained manpower that needs to be addressed. Training for the tourism industry has up to now been lacking and with job rationalization (retrenching, lay-offs and frozen positions if the employee resigns) as well as the present economic restrictions (the devaluation of currency, high import and export taxes and tariffs, high inflation rate, extreme income taxing and sales taxing), there will be no easy solution. Reporting of crime overseas is taking its toll and will eventually harm the industry if the spiraling crime rate is not being turned around soon.

International arrival figures will show that tourism started to increase after the downfall of in SA. With the lifting of sanctions in 1990 and the consequent foreign investment and wave of positivism directed towards the country, tourism has become the ideal income generator. Its position as a big

income provider is growing but not nearly at it's full potential. In the creation and

planning of a sustainable development tourism plan more attention will have to be

paid to the prevention of crime and other strategies as well as the improvement of

poor service before an eventual increase in tourism arrivals and expenditures can

take place.

Purpose

The purpose of this study is to demonstrate the impact of high crime rates in

SA as compared to other countries (specifically the United States). Further, to

discuss the standard of poor levels of service that are prevalent. It also provides

insight to the measures and steps that have been taken in a desperate attempt to

combat these problems. Significance

The tourism industry is moving into a new age. The First World traveler cannot expect to be met with First World standards in the Third World, but in reality, competitiveness is setting the stage for the future. The whole world is moving from a manufacturing to a service oriented one. Even developing countries should be expected to adapt and grow; to be able to satisfy customer's needs on the most basic levels, using resources that are available or creating innovative ways to accomplish this.

Huge potential is available to be sculpted into working models and the

processes for that should be garnered and designed. There are great barriers to overcome - cultural differences and perceptions, political influences, social and

language barriers to cross. If the right systems are in place, success would be

more obtainable.

Methodology

This study is reviewing the current situation pertaining to the political, socio- economical, criminal effects on the tourism industry and service quality in SA as it has been influenced by past and present factors. It should provide some insight as to the reasons for the occurrence of it and shed some light on what solutions might play a role in preventing a continuation of this situation in the future. The study will use descriptive research to identify various factors. Factual

data will be gathered that describes the situation, problems will be identified and

current situations will be justified. Comparisons and evaluations will be made in

determining what strategies are functional or unsuccessful.

Hypothesis

This study will show the necessity to combat factors like the high crime rate

and poor levels of service quality that are influencing the tourism industry.

Scope and Limitations

This study will focus on some of the major issues influencing the current

situation (political, economic and criminal). Some issues that will not be discussed

are cultural differences, communication and language barriers, employee training

and empowerment. Though they all play a relevant role, it could be addressed in a

further study, as it will broaden the scope too much.

Instruments Used

Research will be done by using a multitude of articles from local

publications faxed from SA as well as books both locally and internationally

published. Library searches produced journal articles and relevant books on

integrating subjects. Interviews are conducted long distance via E-mail and

Internet research provided relevant information. The period of data collection is twelve months.

8 Definition of Terms

Affirmative action: As practiced in SA currently, the forcing of employers to

"power" rationalize positions held by white people and hire staff on the basis of race and skin color. The favoring of these employees, regardless of competence or qualifications, to prevent being penalized by law for ratio imbalance in the company.

Foreign arrivals: International arrivals to SA.

Political structures: Governmental policies, practices, goals and strategies that are focused on and have an influence and impact on the tourism industry, its structure and development.

Rand: South African currency. Currently (May 1999) exchanged at about R6.3 for

US$1.

Service Quality: Interpersonal skills and basic service infrastructure (e.g. telecommunications, car rental, roadways, etc.) that is essential for the successful operation and development of the tourism industry to meet and exceed the needs

"guests" and requirements of favorably and with a degree of excellence. CHAPTER 2

Literature Review

Introduction:

This review of literature can be divided into the following four sections:

Political structures and perceptions, Socio-economical influences, Crime and

Service Quality. All of the sections interact and will show the current state of affairs.

Section 1: Political Structures

1. Background.

In 1994, a huge transformation took place in SA when the African National

Congress (ANC) took over as ruling party in the government. International sanctions were lifted and the doors of economic potential to the rest of the world opened, providing new means for the country as international tourist destination.

The central government started planning new models to break down, rebuild, restructure and re-organize most of the old apartheid regime policies. Some were

implemented to a certain degree of success, but strides for improvement into the future has been slow to take place. Restructuring of the government and its various bodies are still taking place. New strategies are tested and the implementation of decisions based on intensive studies through a democratic process of information sharing and input of specialized knowledge by consultants, still have to be applied in practice.

10 Some of these studies are completed to the stage where policy papers have been published but implementation still has to take place.

In June 1998, Deputy Prime Minister, Thabo Mbeki, pointed out that SA as a nation and a society will pay a hideous price if aspects like nation building, crime prevention and more are not addressed (The Star, 1998). Distrust and rage have formed and the lack of peace within the society is promoting crime. On top of that, the meager funds that was poured into the unification of the country after the apartheid era contrasts sharply with what was available to after unification and has left yawning gaps in SA's legacy that needs to be repaired and bridged. Serious measures have already been taken, but the results of these strategies still have to become visible to make a difference.

The government's attitude towards crime has unfortunately not been consistent. In August 1998, President Nelson Mandela said that SA need to create a culture that would motivate law-offenders to become law-abiding and productive

all" citizens so that they contribute "to the good of (Sowetan, 1998). He described

daughters" them as "our brothers, sisters, sons and who had a right to unlock their potential. Justice Minister Dullah Omar said that the strongest possible action should be taken against offenders, to which witnesses responded: "At this moment it means free board and lodging paid for by taxpayers of SA, with the best possible

entertainment" medical care, beauty pageants and (Pretoria News, 1998). It is apparent that currently there is very little disincentive for criminals and until

11 measures are taken to change that, the situation will not improve. An argument

that poverty is the root cause of criminality is confirmed by the Center of Policy

Studies. It has argued been that there is little prospect of reducing crime through job-creation schemes - only if the cost of crime is increased and its benefits

reduced, will a decision to abandon crime to take up employment become rational.

A return to coercion is the missing element in the government's efforts to control

crime.

An awareness of the connection between crime and tourism is being

explored: the ideological structure that the Department of Environmental Affairs

and Tourism has developed, focuses on tourism in SA on various levels:

1.1 The role of tourism in SA

With a population of 41 million and a land area of 490,000 sq. miles or 1,22 million

sq. km (nearly 5 times the size of the UK), SA's resource base for tourism is great

because of its immense diversity and attractions. Tourism has become fiercely

competitive and natural advantages alone are no longer enough as sustainable feature. Technology, science, information and innovation are forcing Third World countries to catch up to global standards. (The Department of Environmental

Affairs and Tourism, 1996).

12 1.2 The problem

Because of the restraint of sanctions and government policies in the past, the country has missed out on global tourism growth opportunities. Key constraints that limit the effectiveness of the industry in a political sense are:

? Tourism that has been inadequately supported and funded by the government

because of the limited view of the potential of the industry. It was seen as a

thing of the past, focused on the privileged class only. Unless the necessary

plans, policies, actions and resources to implement them are put in to place, no

success story shall be told.

? A myopic private sector that is market-based. There is a limited view about the

responsibility of goods / service providers to concern themselves with the

satisfaction or dissatisfaction of the customer. Interactions to build partnerships

with local communities, fellow sector interests and governmental bodies are

severely limited, preventing structured and high-level service quality

performance perceptions.

? Limited integration of local communities and neglected groups into tourism by

previous governmental policies caused various concerns and anxieties:

thing" The idea that tourism is "a white man's and for the upper classes.

A lack of education, knowledge, exposure and understanding and therefore

also a lack of involvement.

Language barriers and inequalities excluded many from the process.

Lack of finance, control of and access to the market halted involvement.

13 Lack of incentives for reward and unwillingness of the existing

establishment to build partnerships prevented meaningful involvement. This

has hampered the industry up to now (further discussed in section 2).

? Inadequate training, education and awareness among the population due to

shortages of training facilities. Presently there is a capacity for 10,000 trainees,

with an expectation of the requirement of 100,000 more per year for the next 5

years. The data suggests that only 10% of the requirements are met at current

output. Added to that is the uneven spread of facilities in the country. The

Institute for Hospitality Studies (HIS) director Peter Hallmann confirms that the

current post secondary / tertiary training system does not satisfy the needs of

the industry (The Department of Environmental Affairs and Tourism, 1996).

? Inadequate protection of the environment will result in a crisis. SA is the third

most bio-diversible country in the world (it has one third of the plant species

and 8% of the world's plants) but also has 2000 plant species on the

endangered list. Attention will have to be paid to land distribution, landlessness,

soil erosion, deforestation, water shortages and pollution, air pollution and

coastal zone management if the country wishes to rely on its natural aspects as

a travel incentive.

? Lack of infrastructure, especially in rural areas created an alarming absence in

participation of potential suppliers. This hampers tourism on a large scale since

huge areas of the country are and stays undeveloped.

? Inadequate ground transportation service because of lack of funding preventing

easy access to many destinations.

14 ? Inclusive national, provincial and local structures for the essential and much

needed development, management and promotion of tourism must be

developed if tourism is to reach its full potential on the international market.

Methods to promote growth and to ease legislative, bureaucratic, skill, market

access, and organizational constraints, need to be developed. (The

Department of Economic Affairs and Finance, 1997).

? Various legislation and bills pertaining to the tourism industry needs to be

revised taking into account the newly created policies.

Another aspect that has hampered the growth of tourism infrastructure is

the implementation of . Skilled knowledge is forced out of all

levels of the business and governmental sectors through pressure put on these

"power" institutions to rationalize jobs of white people in positions of and replace

them according to percentages of people rated by skin color. Economic pressure,

restraint, dismissal or disciplinary action is implemented to enforce the

achievement of the necessary requirements. Between 1994 and 1997 ad hoc

measures were introduced unsuccessfully. Recently, a well structured and

systematic policy paper applying to the civil service has been published, requiring the setting up of affirmative action policies and practices by all managers

containing numeric targets and time frames. By the year 2000, the level of black

people in management levels is slated to increase form 33% to 50%, while women

should occupy 30% (currently 13%) and disabled people 2% (currently 0.02%).

15 The South African Institute of Race Relations is monitoring the implementation of

affirmative action. The survey noted that some 88% of companies had some type

of affirmative action policy in 1997 while 32% believed that their programs were totally or somewhat successful. This view was held by only 22% in 1996. However,

56% of firms said that active resistance to these programs among their employees was declining, even though they still saw affirmative action as a form of

discrimination. There had been an increase (from 12% in 1996 to 21% in 1997) in the number of organizations that said they had experienced deterioration in the

quality of work because of affirmative action.

Private companies like Rennies Travel and American Express Travel were warned that to keep major contracts from government based organizations,

meaningful joint venture partnerships with black businesses will have to be entered

into. (Business Day, 1998).

In the implementation of this policy, many positions are necessarily filled with under qualified personnel that need intensive training before higher levels of

performance can be achieved. This process is cost- and labor intensive and sets the stage for economic and performance restraints, especially in the tourism

industry, where the customer expects service quality as a prerequisite to satisfaction.

16 1.3 Visions, objectives and principles

The vision in SA is generally to develop the tourism sector as a national priority in a sustainable and acceptable manner, for it to have a significant contribution to the improvement of life for all South Africans. As a leading economic sector nationally, a globally competitive tourism industry will be a major force in the reconstruction and development efforts of the government.

The government has incorporated principles underlined by the

Reconstruction and Development Plan (RDP) into the tourism plan. It should be fully integrated and sustainable, incorporating al facets of the country. It should be

people-driven, for the sake of safety and security, to democratize and nation-build.

Tourism has the power to do all this. The various reasons are that tourism employs

a multiplicity of skills, creates entrepreneurial opportunities, provides an alternative

to urbanism and thus brings development to rural areas. It is dependent on the

restoration of nature and so features as protector. It can build cross-cultural

good" relations and is vital for peace. It is a "final - the value added in the final

stages of production is added in SA.

The aspect of service quality has been given some attention by the government. Policies the government wishes to apply to ensure and maintain high

standards of service and facilities are:

? Promoting development of quality tourism standards.

? Apply the standards to all tourism activities.

17 ? Review and reform the existing structure and system of standards.

? Introduce flexibility, consumer relevance and grading procedures.

? Ensure that standards and their related costs do not act as barriers to entry

for a previously neglected part of the population.

? Encourage all establishments to upgrade their standards of service.

The government envisions various key role players: national, provincial and local governments, the private sector, labor, communities, women, media, conservation agencies and other non-governmental organizations.

As a follow-up to the White Paper, the Department of Environmental Affairs

GEAR" and Tourism formulated "Tourism in a medium-term tourism development strategy for the period 1 998 - 2000. The Cabinet approved the document towards the end of 1997

Section 2: Socio-economic Influences

1. Background

The basis of tourism as economic activity has direct and indirect benefits - the potential for it to spawn entrepreneurship, create new services, to strengthen and dynamize other sectors of the economy, generate foreign exchange and create employment is immense. It is also a leisure and educational activity that can serve to improve the quality of life, promoting awareness and understanding among different cultures, bridging language and communication barriers. A

18 dynamic process needs to be created to address the present and future challenges

to the industry. It can bring about changes within the context of a dedication to

social commitment, economic empowerment, environmental responsibilities and a widening of access to opportunities and partnerships.

Figures provided by the WTO (World Tourism Organization) show that in

1995, 567 million tourist arrivals generated US $373 billion in tourism receipts

worldwide, double the rate in spending compared to the growth of arrivals over

1994.

Market Size of World Tourist Arrivals and Tourism Growth for 1995.

+ 8% from 1994

+ 4% from 1994

Am

Tourism Receipts i Tourist Arrivals 1 US $ 373 billion 567 million !

19 Over the last decade, tourist arrivals have grown 72%, which indicates an enormous growth pattern. (Table 1 & Figure 3).

The industry keeps growing, adding to economies all over the world.

Tourism receipts are up with an astounding 217% in the last decade alone, from

US $77 billion in 1960, to US $373 billion in 1995. (Figure 4).

Based on input from all around the globe, by the year 2010, there will be

over 1 billion international travelers. From 1995 to the year 2000, a 24% growth is forecasted, with another 45% from 2000 to 2010. (Figure 5).

20 Table 1 World Tourism Statistics

Figure 3 - see page 22

International Arrivals from 1960 - 1995

Year Arrivals in millions 1960 69 1965 113 1970 166 1975 222 1980 284 1985 330 1990 459 1995 567

Figure 4 -see page 23 International receipts: increased 217% in 10yrs. Year Receipts in $- billion 1960 $7 1965 $12 1970 $18 1975 $41 1980 $105 1985 $117 1990 $265 1995 $373

Figure 5 - see page 24

World tourism: projected growth Year Arrivals in Millions 1995 567 2000 702 2010 1,018

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24 Tourism in SA has grown from 2% of the Gross Domestic Product (GDP) in

1994 to 4% in 1995, compared to 10.9% of the global GDP (10.5% to the USA,

13.4% to the European, 12.3% to the British and 13.5% to the Caribbean). The potential exists for SA to triple its percentage GDP and double foreign exchange earnings by 2000 (The Daily News, 1998).

In 1996 the South African industry earned R13 billion (Rand) in foreign income and R20 billion in 1997 Currently it is the fourth largest earner of foreign currency, generating some R23 billion in the tourism industry.

According to SATOUR, every 9 tourists visiting SA create one direct and two indirect jobs. In 1994, 17,000 direct and 34,000 indirect jobs were created. In

1995, 24,000 direct and 48,000 indirect jobs were created and in 1996, 13,000 direct and 26,000 indirect jobs were created.

The goal is to increase the contribution of the tourism sector to GDP to 8 percent by the year 2000 which would generate R40 billion annually in foreign exchange and provide over 800,000 direct jobs ( Board,

1997).

25 The potential exists to increase foreign arrivals to 15% thereby earning in excess of R200 billion per annum by 2005. The average increase of international tourism arrivals was 16% for the past 5 years but from 1994 to 1996 a staggering

34.8% increase has brought with it an added income of R9 billion (Sowetan, 1997).

International tourism is a vital element with air arrivals spending an average of

R1 4,000 per visit compared to R6,000 of land arrivals.

In 1995, SA received 4.48 million international visitors with the bulk originating from Africa (73%), Europe only 15%, North and South America, the

Middle East, Australasia and the Indian Ocean Islands together only 12%. In 1995,

1.1 million visitors from outside of Africa arrived in the country, with 7.9 million domestic tourists spending 17 million holidays in 1994. There is huge potential for

SA to increase the overseas, regional and domestic market. (Table 2 & Figure 6).

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28 2. The problem

Key constraints that limit the effectiveness of the socio-economic industry:

? Limited development scope due to past policies prevented the economy

from drawing income from tourism.

? Tourism has been inadequately supported and funded through lack of

financial mechanisms, frameworks, strategies and incentives by the public

and private sector.

? Disinterest and uninvolvement by the private sector prevented the

generation or activation of a possibly large source of income.

companies' ? The slow pace of privatization is obscuring views on the clarity

of future owner structure and so hampers increased foreign investment

(Nevin, 1998).

? Previous approaches contradicted the efforts to encourage balanced,

integrated development in particularly disadvantaged areas, especially the

expansion of tourism education and training into these areas because of

lack of access to them.

? Poor service seems to be an accepted norm by the bulk of service providers

and domestic tourists. The industry is characterized by a lack of

competitiveness, which does not promote better service.

? Poor linkages of major infrastructure facilities and centers to peri-urban/

peripheral/rural areas exist due to financial, geological and physical

features.

29 ? Incentives to attract potential investors for tourism development are

inadequate.

? Limited documented statistics due to the lack of mechanisms to regulate

and monitor the industry is a handicap to the development of future policies.

? Inefficient and ineffective marketing and promotional strategies exist

because of the inability of current institutions to develop and include

emerging markets into the industry.

? The weakest economic link in the economic chain is the service sector

(entertainment, health, banking, insurance etc.). It has the ability to make or

break the system.

Tourism has the power to create sustainable development. The various

reasons are:

? Tourism presents significant opportunities for SA. As the world's largest

industry it employs 212 million people worldwide and generates US $3.4

trillion in world gross output. It is expected to grow 50% by 2005 by which

time the industry will be worth US $7 trillion to the world economy.

? It is the world's largest generator of jobs (212 million people in 1995).

Between 1995 and 2000, one new job will be added every 2.5 seconds to

create 125 million new jobs. In SA 480,000 jobs already exists with a

potential to create 2 million more by 2000.

? If properly organized it can create immediate employment through the need

for live entertainment and crafts in local communities.

30 ? Tourism is labor intensive and many more jobs can be created per unit of

capital investment. Many tourism activities are within the scope of the small

operator.

? It generates foreign exchange in measure, brings a ready market into the

country and thus has the potential to influence visitor's taste and create an

export market.

? Travel demand is continuous - not focused on a certain time period.

? The impact of tourism is greater than the initial expenditure by the visitor. It

creates enormous potential for linkages with other sectors of the economy.

(The Department of Environmental Affairs and Tourism, 1996).

Increase in prices due to inflation added to the lack of service quality, which

in turn curtails international tourism. Expenditure in SA has increased twofold within the last six months. It costs the general British tourist 20% more to travel to

SA than and even then they find costs higher than the expected service warrants. If the crime factor is taken into consideration as an added disincentive, the trends of decreasing interest in SA as a tourist destination will intensify. This issue will be addressed further in Section 4.

industry" The "fear in SA is booming. In an attempt to increase personal safety, all sorts of strategies and apparatus are being implemented. Vigilante squads, alarm systems, bulletproof windows, electronic detection, high fencing and even electrical wire fencing are just some examples. According to the South

31 African Security Association, it brought with it a turnover of R9 billion in 1997, a

33% increase on figures of 1994. In 1996, South Africans spent R3, 6 billion on employing guards to secure houses and business properties and about R2 billion on anti-theft devices for cars.

Another aspect that is influencing the economic situation is the wave of emigration, stimulated by the lagging economy and upward spiral of crime. Official figures showed that between 1994 and 1997 South African experienced net emigration of 17,346 people. This was the longest sustained outflow of people since the period 1941-1945, when emigration was 5,009 people. The result is that

drain" a big "brain is taking place, robbing a country with lagging resources in human trained capital, of a major part of its asset. Surveys showed that up to 74% of skilled South Africans want to emigrate because of the spiraling crime and violence. Almost one-fifth of SA chartered accountants are living and working overseas and up to 80% of these may have emigrated permanently. Of a total of

17,591 SA chartered accountants belonging to the SA Institute of Chartered

Accountants (Saica), 3297 are absentee members - living and working overseas.

"real" President Mandela remarked that South Africans do not run away from crime. Being asked to tolerate lawlessness will lead to no success.

Economic growth figures released on 22 February 1999 show the damage to the economy by the unexpected surge in interest rates last year, triggered by the Rand's collapse. The gross domestic product (GDP) figures confirm that SA is

32 in recession. They paint a picture of an economy in which job-creating sectors

such as manufacturing and construction are in deep trouble, while less labor-

intensive activities such as finance are doing relatively well. Statistics SA said

GDP fell an annualized 0,3% in the fourth quarter after declining 2.5% in the third.

The growth rates are seasonally adjusted and annualized, which means change

between two quarters is projected forward for a full year. The formal definition of a

recession is two consecutive quarters of falling annualized growth. Economists

expect the recession to continue until the middle of 1999, but lower interest rates

should spur an upward swing in the second half. Nevertheless, few economists

expect economic growth to exceed 0.5% this year. (Breytenbach, 1996).

Section 3: Crime

1. Background

The WTO reviewed African tourism in 1995 and considered SA to be one of the most promising tourism destinations on the African continent. The potential is outstanding, providing peace and harmony remain.

Countrywide, political violence seemed to decline steadily although crime statistics soared. In May 1995, the Cabinet approved the establishment of an interdepartmental committee of Ministers to develop a comprehensive national crime combating strategy. The spokesperson of the President's Office, Prof. Jakes

Gerwel, said that the plan would not just focus on policing, but would include a more holistic approach towards combating crime. In August 1995, the Minister for

33 Safety and Security, Sidney Mufamadi, the Minister of Defense, Joe Modise, the

Commissioner of the SAPS, Commissioner George Fivaz, and the Chief of the

SANDF, General George Meiring, met to discuss the security situation in various parts of KwaZulu-Natal, the Eastern Cape and . The meeting focused on various areas in these provinces where violent crimes continued to occur with unacceptable frequency and gravity. Both Ministers resolved that, as a matter of urgency, the strength of security forces operating in those areas would be substantially increased with immediate effect.

More than 1 ,000 additional security force members were deployed in

KwaZulu-Natal to boost the Community Safety Plan (CSP) in the province. The

CSP, which was launched earlier in 1995, seemed to have a significant effect. In

KwaZulu-Natal, 55 people were killed in June 1995 versus 83 in May. Similar safety plans were also initiated in other provinces resulting in a drop in violent crime. Political violence claimed 74 lives across SA in June, compared to 142 in

May 1995.

On 15 August 1995, delegates from more than 300 different business organizations and institutions met to discuss the problems of crime and corruption in SA and to find practical ways and means of solving them. Also present at the

Business Initiative against Crime and Corruption convened by the Council of South

African Banks (Cosab), were Ministers from the departments of Safety and

Security; Justice; Land Affairs; Public Works; Water Affairs and Forestry;

34 Environmental Affairs and Tourism; Arts, Culture, Science and Technology; and

the Office of the President. Delegates from the SAPS also attended the

proceedings. More than 80 topics were discussed during the Cosab conference

and various proposals included in a preliminary report, which would be finalized by

a task of 20 people group elected at the summit. The proposals include, among

other things, that:

? The SANDF assist the police in activities like police patrols, roadblocks and

administrative functions.

? Crime-prevention should form part of the RDP.

? A central database should be established which would include neighboring

countries and international information on criminals, their modus operandi

and statistics.

? A vision of a crime-free SA be formulated and promoted which should

include the right to freedom of every citizen, but with emphasis placed on

everyone's responsibility to become involved in the process.

? The business sectors finance the police in the form of a trust plan (possibly

compulsory) to help improve all levels of the police.

In October 1995, a workshop on economic crime and corruption was held in

Sandton, Gauteng. The workshop, attended by top-ranking police officers, leading businessmen, the justice and correctional service departments and academics was intended to identify resources available to police and the commercial sector and to develop workable strategies against serious crime and corruption. Proposals

35 discussed included a code of conduct for businesses and organizations, legislation

to enhance international cooperation as well as cooperation between the private

sector and the police.

In November 1995, top policemen of 1 1 southern African countries met in

Midrand, Gauteng to discuss strategies to effectively combat the escalating crime

in the region. Issues addressed by the Southern African Police Chiefs' Co

operation Organization included cross-border organized crime, money laundering,

gun and drug smuggling, and vehicle theft. In the same month, the Minister for

Safety and Security announced that police measures would be reinforced in

KwaZulu-Natal before the March local government elections in the province to

combat the high level of criminal violence.

Several anti-crime exercises were launched countrywide during 1995. In

May 1995, the SAPS launched Operation Safety in an all-out effort to curb violent crime in , Randburg, Sandton and Alexandria. The campaign was aimed at, among other things, vehicle hijackings, robbery and assault. During the operation, police on the ground were assisted by helicopters, while the SANDF and police reservists also participated.

In June 1996, the head of the crime investigation unit of the South African

Police Service (SAPS), Commissioner Wouter Grove, told the Parliament's safety and security standing committee, that an average of 52 people were murdered

36 every day, a rape was committed every 30 minutes, a car was stolen every 9

minutes and an armed robbery was committed every 1 1 minutes. According to the

head of the police's crime management information center, the soaring crime and violence is not a result of organized crime, but of a weak social fabric, poor

interpersonal relations and alcohol abuse. The culture of violence, contempt for the

law, availability of firearms, and socio-economic problems such as poverty and

unemployment all contributes to the high level of crime.

Crime figures of SA show a constant increase over a period of time. The

crimes are divided into sections: violent crimes, social fabric crimes, property

related crimes, commercial crime, violence aimed at property, crimes heavily

dependent on police action for detection and crimes accounted for under robbery with aggravating circumstances. (Table 3 & Figures 7-10).

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42 To form an educated view of the severity of the crime rate in South Africa, a chart comparing crime statistics of major cities around the world are provided. This will form a clearer example of crime rates. (Table 4, Figure 11 & 12). Crime incidents should be taken as a ratio per 100,000 of the population of the country.

To form an idea of population statistics and to thus be able to compare

more realistically the crime rates per country, statistics and figures on census of the population (Table 5, Figure 13 & 14) are provided. These show the differences

in population totals. SA's last census was taken in 1996 and figures were made

available to the public only after 1997 The total amount of population amounts to

40,258,032. The majority of these are situated in the provinces of KwaZulu-Natal

(8,417,021) and Gauteng (7,049,881) a province not even one-third the size of

KwaZulu-Natal. These give a clearer understanding of the concentration of

population in certain provinces / areas.

To better compare specific crime statistics, more tables and figures

compare statistics of both the United States (Table 6, Figures 15-17) and SA

(Table 7, Figures 1 8 - 24). These enable the viewer to clearly identify the extent of criminality in SA. Compared to crime statistics of the United States on a basis of

incident per 100,000 of the population, SA's crime rates per type of crime are much higher (Table 8, Figure 25 & 26) and show clearly the necessity for concern.

43 Table 4

World crime in major cities throughout the world

CITY NUMBER OF HOMICIDES* HOMICIDES* PER 100 000 1995-1997 OF THE POPULATION OF

THE CITY AVERAGE 1995 -1997 London 472 2.07 Belfast 39 4.37 Edinburgh oo****** Q yJO****** Vienna 86 1.8 Brussels 13 0.43 Prague 105 2.87 Copenhagen 68 3.97 Helsinki 47 3 Paris 211 3.28 Berlin 396 3.8 Athens 47 1.35 Budapest 160 2.8 Dublin CQ****** a oy****** Rome 135 1.7 Amsterdam ^ "7 4 AAAA J QQ****** Oslo 31 2.07 Warsaw ** 276 5.63 Lisbon*** 169 9.73 Moscow 4 723 18.13

Stockholm**** 180**** 4.13****

Geneva 22 4.17 Canberra 6 0.64 Tokyo** 390 1.1 Wellington 8 1.73 Pretoria***** 1 512 41.12

156****** Washington DC 1 69.34******

* Intentional killing of a person excluding attempts: murder, manslaughter (excluding death by dangerous driving), euthanasia and infanticide; excluding abortion and help with suicide. ** Including attempts. *** Including cases where cause of death is unknown. **** 1997 figures not comparable with previous years due to a change in statistical routines.

***** Including rural areas. ****** 1994 - 1995 (Source: British Home Office: Research and Statistics Directorate)

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46 Table 5

USA population census: SA population data: 1997 estimates 1996 Census Alabama 4,319,154 Northern Province 4,929,368 Alaska 609,311 KwaZulu-Natal 8,417,021 Arizona 4,554,966 3,956,875 Arkansas 2,522,819 Northern Cape 840,321 California 32,268,301 North-West 3,354,825 Colorado 3,892,644 Gauteng 7,049,881 Connecticut 3,269,858 Mpumalanga 2,800,711 Delaware 731,581 Free State 2,633,505 District of Columbia 528,964 Eastern Cape 6,302,525 Florida 14,653,945 Total 40,285,032 Georgia 7,486,242 Hawaii 1,186,602 Idaho 1,210,232 Illinois 11,895,849 Indiana 5,864,108 Iowa 2,852,423 Kansas 2,594,840 Kentucky 3,908,124 Louisiana 4,351,769 Maine 1,242,051 Maryland 5,094,289 Massachusetts 6,117,520 Michigan 9,773,892 Minnesota 4,685,549 Mississippi 2,730,501 Missouri 5,402,058 Montana 878,810 Nebraska 1,656,870 Nevada 1,676,809 New Hampshire 1,172,709 New jersey 8,052,849

New Mexico 1 ,729,751 New York 18,137,226 North Carolina 7,425,183 North Dakota 640,883 Oklahoma 3,317,091 Ohio 11,186,331 Oregon 3,243,487 Pennsylvania 12,019,661 Rhode Island 987,429 South Carolina 3,760,181 South Dakota 737,973 Tennessee 5,368,198 Texas 19,439,337 utan 2,069,148 Vermont b88,y/8 Virginia 6,/33,y9b wasnmgton 5,610,362 West Virginia 1,815/8/ Wisconsin 5,169,6// Wyoming 4/9,/43

Total 267,636,061

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53 Table 7

Crime in South Africa RATIO PER 100 000 OF THE POPULATION HK 1994 1995 1996 1997 1998 VIOLENT CRIMES Mtinder; 62.1 59.8 56.7 53.1 52| tempted MUnJer? s^S^sl 64 60.2 63.5 60.6 62.71 'with^gravatingi51rcUERStaaOes 200 185.3 151.8 151.7 188.31 SOCIAL FABRIC CRIMES jgjgjjlrv /gft>: XP&SgB 96.9 106.6 111.8 113.2 104.1 ^^jcii^tp^iSi^l 482.7 495.7 502.6 500.6 489.91 Common Assault-^ :M 449.1 466.8 456.2 437.9 424.71 PROPERTY RELATED CRIMES JHofl^feleaKing^ m 532.1 556.2 552.2 542.8 567.2 akjha^BusiSl^l 211.7 199.7 197.7 194.1 201.91 oatiilRofabefjfj 75.5 90.9 114.2 114 131.61 stoiacahfefts 105.2 103.1 94 94 86.3 Sljoplifting^ 157.8 144.6 140.2 140.7 134.7 l^ftl^iicrtonsrehiclcil 248.2 236.3 220.2 223.2 233.61 IJ^JSOmaf/ftom^ehtaes 'i 434.3 442.4 411.3 389 406.61 <3*fir^fieftSI 903.9 898.3 861.3 852.1 914.3 COMMERCIAL CRIME

emTb^Se;rneSts;"fetc^^S?IS^^te^ 149.7 143.5 143.1 142.6 134.9 VIOLENCE A MED AT PROPERTY

MSSS^^SS 27 22.7 22.6 21.6 21.9 M^^uJs.dariiagevlo-propcjijity;^ 286.6 291.4 290.2 276.3 271 CRIMES HEAVILY DEPENDENT ON POLICE ACTION FOR DETECTION Dnjgtelatf&Wmeim&iWm 113.6 96 90.2 96.1 87.6t ^e^ifiil'tbtfirear^^ 26.3 27.3 29.4 28.1 31.41 Df^A(^dS^^^m^iM^]Sf^cb^o]W^^^ 62.7 52.4 52.7 59.1 53.41 m TOTAL OF (20) SPECIFIC CRIMES \ 4 689.5 4 679.2 4 561.9 -,j .a.**.. -; ^^^^^^^^^^^^^^^^^^^S gjM S^S55HSH5S5K|55|SK^ CRIMES ACCOUNTED FOR UNDER ROBBERY WITH AGGRAVATING CIRCUMSTANCE GSffjafficjrig^ SSSBSESiESs; 29.4 29.1 32.7 HfaaSKfitglffi^cftsI 8.4 9.4 12.6 Rlqfe^rySfica^ffltranslt^ 0.5 0.5 B&t^^tjb^jf^ 1.5 1.1 0.9 tUP sssisi INCREASED EMfeHpffF1 STABIUSED DECREASED

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o^^ 1 I -T T~ m o 10 o in o in m in <* -

S}U9|ppui

58 o ** CO 3 Q) > o co-c: c T5 CO CD o

< o 4 4 o o

CO cn f t cn

.2

cn 1 cn CO c c2

t 2 I CM 5 co CM cn CO CD 2 (J) 13 TO Ll Q- o (0

! I m cn II ? cn i i

s Q) I O 1

o o o o o o o m o m o io o in co co CM CM s)ueppu|

59 o "O o> Si> i CD c ooo *-> o c c CO iTOO

^ of CO ?

.c

c

^p ** co cn o ? cn c Q) .2

Q) o 3 ^ a cn o o cn Q. 0. o o ! -+# o CM Si CD CD ^12 ? o cn flj 3 -S> 2 g> "C o CD C o O ^^ & .

Q .2 m *** cn ^ ? o> i^? ^ q: GJ Q> 5: 1

<0 cn o 5 v. O o o o o o o CM o oo CD CM

s^uappui

60 sz CO c CO

i o .2 It CD O) o o .Q tz CO JQ c 8 *L - co o L_ o ^ CO c CO o CO -^ ^* ^ -9 CO c o i=-- CO :=:, ZJ o CO O T - Q^.E 00

4 o 4 4 i

.2

CM CD L. ZJ 12 TO .5 CO o >-

*

O o o (0

Q>

.s

O sjueppui

61 Table 8

Crime in SA and USA compared: 1994 and 1995

RATIO PER 100 000 OF THE POPULATION

agjjS^j&bS&jisKg^gfeS' mt^mmmm^ m ^M^Sfr '^1

Type of cnme SA USA 62.1 96.9 39.6 931.8 427.6 2,868.70 1,871.00

Type of crime SA USA 62.1 8.2 96.9 37.1 962.5 418.3

2,856.80 1 ,736.40

62 TO

Si CD

W O instill CD XI X) O QZ g) ZJ CO CO Q. CO CO E T3 0) o CO 0 > o CO E 1_ TO ft- TO o m < CM co

5> CD Q.

CD < Q. CO CO

o E HUH o CD T3

o o o o o o o o o o o o o m o m o in CO CN CM *- T~

uoiieindod jo 000 OOP Jdd auiuQ

63 LO

g)

Q. E o CD

CO o E CM ft-

3 < o co

d) 06 a < CO

E

o

0 0 0 0 0 0 0 0 0 0 0 0 0 m 0 m 0 m t *- CO CM CM

uojjeindod jo 000 00 1 J^d eaiUQ

64 Figures and perceptions of crime are a deterrent to the industry and remain the primary concern of tourists. The increase in general crime and violence, have impacted the number of tourists visiting SAfrom 1980 to 1990. Since then, it appears that a drastic increase have taken place. (South African Survey,

1995/1996). The increase in foreign arrivals from 1994 to1996 alone is a staggering 34.8 %. (Refer back to Table 2 & Figure 6). Even so, the potential growth of the industry, which is targeted for 7,7 million tourists by 2000, might not

be reached if the situation is not brought under control. Surveys have shown that tourist fall mainly victim to crimes such as muggings and theft from hotel rooms

and cars, as well as hijackings. There is percentage wise less victims of violent or

severe crimes, but these crimes do the most harm. They are widely reported and

seen as the most atrocious of crimes. The increasing number of attacks on tourists

in SA cannot be tolerated, because it has a devastating effect on the economy and the creation of job opportunities.

Research conducted by SATOUR shows that 55% of foreign visitors fear for their personal safety in SA. On a scale where 8.0 can be regarded as acceptable

and a rating below 7.0 indicates s definite problem, personal safety was rated at an

average of 6.2. (Table 9 & Figure 27). This table and figure shows clearly that

South Africa's crime is impacting perception of personal safety, which could potentially impact the growth of tourism in South Africa negatively.

65 PI lq -* h- CM llO) 00 co 11111111111

i"^ M" sJMl CO o> iiiiH00

aSHHSfW

Hal05 a> CO CD & 00 00 CO

2 llliiffiil CO CD EH00 oo CO o 00 CO c: Mp| c CD HUH o TJ CO It- CM o> CO c CD 2 jgffiiB|0> lO CO ** o "co o Bh o Shoo CM o> lO MB o ^Hoi CD Oi o o CO CD <*- Si ICO lO loo" Ili co CO fBjIfj 00 00 CD ft^K isE o ^H|co T CO lO c CO jPl||o> o> oo CD o c o GEggB

IS \o> O) oo CD c '35 CO h co 00 lO o o mmmm ci o wmm CM CM E 00 00 00 CD mBSsm *"*

1s!r1 Bh jgg**.' ^B^ HS s^ri IS ^ H IkSPj 3 3SC-; CO 'via m > IsESy iSsOi V) CO ^^E|gK7Ta JCD: CD * ^1 J-SSjIA' ;*fei *JC- Km w Ho.

"S5; SIwFf JUS ?I5> '31 U- * 0 JH ,_

66 CO CO CO CO CD CD c c CO CD TJ 5 O C Q. CO CD 1_ CD CD (g LL I to 0_ co D H 11

.5 "co

w =1 <

8.*CO CO UJ <2 ._ < o co -

CO

o

w 0) O) l^B c "5 > CN ^ CO w c MH CD o o i_ CO =a (0 ZJ ^n TO CO c CD G) o O Q. ^m CD +- L_ < u. CO

CO T3 a: o I o

CO "55 E CO o

id

CO u

OCOCOh-COm'^-OOCNt-

9|bos )u;od-0 e uo s6ui;e^j

67 2. Initiatives to combat crime taken by various sectors

2.1 Government initiatives

In May 1996 the government launched a National Crime Prevention

Strategy that was aimed at improving the functions and co-ordination of government departments in fighting crime. Key elements of the plan were: the enhancement of the police service's ability to gather intelligence on criminals and syndicates, greater co-ordination in bail and sentencing policies, a better turnaround in prosecution times and a significant reduction in corruption in the police force and the judiciary. The four pillars of the plan were:

? The development of a criminal justice system capable of a certain and rapid

deterrence.

? The altering of community values in order to create public pressure against

crime.

? The limiting of opportunities for crime, including maximizing the constraints

on crime through urban upgrading such as street lighting.

? The intensification of regional co-operation in the fight against cross-border

crime.

A few other measures taken were:

? The signing of laws which grant the government far reaching powers for the

management of public gatherings and demonstrations which became

operational in 1 996.

68 ? A prohibition on the carrying of firearms at public gatherings in specific

magisterial districts.

? Introduction of new legislation to facilitate investigation and prosecution of

criminals, provide tougher sentences, protect witnesses and speed up trials.

? The changing of rules so that all criminals serve at least half their sentences

before being considered for bail.

Another measure was the dividing of areas into sectors for increased police visibility with motorcycle, foot and on horse patrols and to intensify tourist policing.

2.2 Political parties

Various political parties took initiatives in fighting crime:

The (IFP) suggested:

? A referendum on reintroducing the death penalty.

? Tougher sentencing for violent crime.

? Tightening of bail conditions for violent offenders.

? Establishing of crime-commissions.

? Granting of full crime-prevention powers to local government policing

agencies.

? The support and encouragement of private-sector anticrime initiatives.

The Democratic Party (DP) called for:

? Cities and towns to become the central focus of crime prevention initiatives.

69 ? Specific minimum sentences for perpetrators and offenders.

? The establishment of a dedicated anticrime fund.

? Voluntary service in the SAPS.

The National Party (NP) said:

What was needed was the introduction of a holistic law enforcement strategy

that would include:

? The tightening of bail conditions.

? More stringent use of parole.

? Tighter border control to keep out illegal immigrants, who contributed to

crime and took away jobs opportunities from South Africans.

3.3 Business

Crime" Various business communities started the "Business Against campaign in August 1995. Some initiatives were:

? Assisting the criminal justice system with the document blockages in the

system.

? Donation of vehicles to the SAPS to combat vehicle crime.

? Helping with the installation of closed circuit television surveillance cameras

in pilot projects.

? Providing the SAPS with cellular phones.

? Providing guidelines for businesses to become involved in forums.

70 ? Helping to establish regional community networks and task teams to combat

certain crimes.

A review that was done by an organization initiated by the Department of

Environmental Affairs and Tourism, the Tourism Safety Task Group, indicated that no one organization can control or beat crime in the proportions it has escalated to.

For the good of the country and its tourism industry several projects has been

launched successfully in an attempt to combat crime locally. A holistic approach

seems to be the only way to solve the problem (Tourism Safety Task Group,

1997).

Some steps have already been taken:

? Hotels are involved in community projects to ensure safety of their guests.

? Education of the tourist and their acceptance of their own responsibility in

taking precautions.

? A Good Samaritan project of volunteers, at the call of tourists locally, helps

prevent unnecessary events of crime by educating, warning and assisting

them.

Care" ? The "UBUNTU - We program as an added incentive to combat crime

and improve training and service quality.

The private sector and tourism authorities have identified crime as a major

threat to the country's growing tourism industry. As arrivals increase, so do crime

71 against tourists. Foreign media presence has doubled since 1994 resulting in an increasing number of international reports on incidents of crime in the country, impacting the industry hugely.

3. Key constraints

Certain constraints limit the effectiveness of the industry:

? Lack of credible statistics and information of tourist related crime.

? Inadequate training, education and awareness as to how crime can be

prevented and combated.

? Inadequate protection of the establishment and society by law enforcement

agencies because of limited manpower, orientation to and understanding of

the industry.

? Lack of infrastructure, especially in rural areas prevents the fighting of crime

by official authorities.

? Guidelines and priorities on how to address tourist-related crime and

violence need to be more specific, concrete and aimed at implementation at

local, regional and national levels.

? Growing levels of crime and the lack of protection or security measures

employed by the local and federal government has allowed the situation to

escalate to unacceptable and uncontrollable levels.

? An international public relations campaign needs to be implemented to

World" improve media perception as SA as "Crime Capital of the

72 On a general level, police authorities are trying to combat crime by operating focused projects to eradicate crime to some degree of success. Still, it is essential for the private sector to commit them to continuously increase skills and adapt to changing circumstances. Employment of security guards, bulletproof windows, alarm systems and vigilante squads is on the increase. In 1997, R9 billion was spent on security measures - triple the amount of three years ago.

Another aspect deterring the police force is rationalization. Due to the economy, many businesses have been forced to cut jobs in order to survive.

Unfortunately, it has been no different in the SAPS. With a budget of R1 1 billion per annum, 84% is spent on human resources, which leaves a meager R2 billion to equip the force. A plan has been implemented that contains models for basic policing, a code of conduct for members, the role of officers in the criminal justice system and how to improve financial management. These interventions were beginning to work: illegitimate absenteeism in Johannesburg dropped form 17% to

12%. The ultimate goal was to reduce SAPS personnel from 135,000 to between

120,000 and 123,000 in the next five years. This manpower cut coincides with the cutting of more that 1,000 troops from the SANDF (South African National Defense

Force) used in crime prevention. No studies have been done yet to determine how that would impact the success of crime prevention plans already in motion, or those that still need to be addressed.

73 4. Opportunities

Some opportunities have come to light regarding tourism-related crime:

? The expansion of community initiatives and awareness of the benefits of

tourism if crime could be effectively curtailed.

? Creation of inter-related mechanisms like the private, public and protection

services.

? Visible tourism policing could be expanded to the tourism industry.

Recently a R3 million White Paper on Safety and Security was released

publicly in Midrand near Johannesburg, on Friday September 11th, 1999 after

being passed by Cabinet. It outlines a State Policy for tackling crime until 2003, focusing largely on crime prevention and devoting certain powers to municipalities

and metropolitan councils. The sad thing is that the local government admitted to

not being able to afford to implement the White Paper, due to severe economic

restraints.

Section 4: Improved Service Quality

1. Background

SA is the most developed tourist product in the Southern region of Africa but the most fundamental problem is the level of service and resident's attitude about it. "This is Africa", said with a shrug, is a popular response to complaints (Green,

1 995). Research undertaken by SATOUR indicates that less than two thirds of

74 overseas visitors to the country rate service levels as acceptable (Refer to table 9 and Figure 35 on pp. 63 & 64).

There is a definite need for the planning, development and expansion of service infrastructure to enhance, promote, support and increase service quality in developing countries. Focus is still centered more on marketing and providing the necessary facilities than on services marketing. This model is directed primarily towards attracting new customers instead of keeping present ones and the underlying assumption is that the market consists of a very large number of customers whose needs are more or less homogeneous. (Holmlund & Kock,

1996).

This model does not take into account the characteristics of services, which are more heterogeneous, abstract processes where delivery, consumption and production take place simultaneously. An important issue is how to standardize service and how to produce it efficiently. Unfortunately, more attention is given to the internal processes and efficiency than elements like customer perceived service quality or external quality.

Existing recommendations of the Department of Environmental Affairs and

Tourism, focus on:

? The need for conference market expansion (which is presently growing at

10% per annum) and facility improvement.

75 ? National models for grading of facilities.

? Subsidized accommodation and transportation.

? Promotion of activities focused on culture, sport and entertainment.

? Training and education of the broad spectrum of citizens through an

integrated system that provide all with equal opportunities to embrace a

tourism culture of hospitality, friendliness and service.

The historical spatial / physical development pattern in SA has resulted in the establishment of areas of disparity and imbalance in terms of quality and quantity of service and infrastructure (The Department of Economic Affairs and

Finance, 1997).

Some steps have been taken by various organizations to start programs on improving service in SA: the TSTG have combined forces with the Hospitality

Care" Industries training Board (HITB) to launch the "Ubuntu - We program aimed at educating service providers about the importance of providing excellent service to tourists. There is an awareness of the sensitivity of the industry - and the fact that crime is a major threat to its growth. The HITB has recently established a

National Qualifications Framework (NQF), which aims to enhance the status, skills and literacy of hospitality employees. This is sadly only a drop in the bucket.

76 2. Key constraints

Key constraints that limit the effectiveness of the service industry:

? Tourism and service quality education, training and awareness programs

has been inadequately supported and funded because of lack of knowledge

regarding the importance of the role it plays in the industry. It is relatively

fragmented, not specific uncoordinated and inaccessible.

? Limited integration of local communities and previously neglected groups

into tourism prevented them from delivering and contributing to multitude of

essential services in the industry: as operators of infrastructure like Bed &

Breakfasts, taxi services, museums, entertainment; to deliver services as

travel agents and tour guides; as suppliers like maintenance, tourism

products and crafts and many more.

? Poor service has long been an accepted by the bulk of service providers in

the private sector and by domestic tourists. The industry is characterized by

a lack of competitiveness and awareness, which does not promote service.

? Lack of inclusive national, provincial and local infrastructure prevents the

training of employees in existing sectors to better or enhance service quality

performance to an acceptable level.

? The absence of an agreed upon curriculum or model for training as well as

the severe financial costs that impede training.

? The lack of a code of ethics regarding service quality.

? The lack of service quality measurement models.

77 Studies have shown that meeting the need of your customer will not make them loyal. It takes finding ways to make your service truly stand out (Steward,

1997). Employee attitude is maybe the toughest challenge to overcome. With strategies like enforced affirmative action impeding growth and competence, huge discrepancies are created. Training to facilitate skills, knowledge and to garner appropriate attitudes toward service quality is essential to empower employees

(Rowe, 1998). The quality of the interpersonal interaction between the customer

and the contact employee influences satisfaction. Here communication, language

barriers and interpersonal skills play major roles in creating chasms in especially

developing countries. This needs to be addressed if tourism is to be integrated in a

sustainable manner.

Summary

The factors discussed in sections 1 - 4 all influence the development of SA

as a major tourist destination. It is clear that intensive study will have to be done to find working models to solve current problems in an effective and efficient manner.

Many constraints impede the success of these strategies and they need to be

researched and addressed to determine their impact on the tourism industry for the future. The issues discussed in this thesis are all an integral and an essential part of the tourism industry on a global level. Up to now it has been recognized but very

little attention has been paid to solutions. Factors that will have to be taken into

account were some of the issues not discussed in this paper like cultural differences and language barriers, employee training and empowerment.

78 CHAPTER 3

Findings, Conclusions and Recommendations

Introduction

This study presents the impact crime and service quality has on the tourism

industry of SA. The impact on the economic situation since the ANC has come into

power in 1994 has been devastating. Data gathered shows that the crime rate as

well as crime incidents in South Africa per capita is much higher than compared to

the United States. Even in comparison to other capital cities all over the world, the

crime rate in Johannesburg is one of the highest. Politics and economics are

inevitably linked. The government is struggling to build a new nation and

implement governmental changes in an effort to restructure operations and

strategies. Affirmative action is being implemented. A large amount of time and

money has been spent on planning and development but very little implementation

has taken place up to now. A certain amount of chaos has been reigning and it is

clear to see that there is very little control over criminality in the country. Efforts are

made from all levels in society - from government to business and local citizens to

combat the situation and get it under control. The data currently available is still

only a drop in the bucket and not incorporated into a comprehensible or all-

encompassing system to be used and analyzed. New strategies are being formed to address the current situations and only time will tell whether these will prove to be successful.

79 As a developing nation, South Africa is highly dependent on tourism as

GDP generator. The country is one of the most beautiful in the world and can offer

more than enough to draw every class of tourist. Plans are made for the future and

tourism is seen as a great income and job generator for the future. However, not

enough attention is paid to the real impact of crime as deterrent to tourist arrivals.

Also, until a sound strategy can be implemented to prevent crime and apply

disincentives, the potential growth of tourism and its positive effect on the economy

will be hampered severely. Another factor that needs attention is the standards of

service quality. Until attitudes are changed, quality perceptions elevated and

training standards and facilities improved, South Africa will not benefit

economically.

This study attempts to combine available data to form a more

comprehensive view of the current situation and role of tourism in SA. It studies the

impact of crime and service quality on the foreign / international visitor to SA. It

also examines all the planned and suggested strategies by the various sectors of

the country in an attempt to solve these problems.

Summary of the Review of Literature

The review of the literature presents 69 newspaper articles published between 1996 and 1999, 20 books or articles, written between 1992 and 1998, 10 governmental publications, issued between 1995 - 1998 and 6 web sites.

There are 4 sections addressed in the literature review

80 Section 1 : Political structures

Section 2: Socio-economical influences

Section 3: Crime

Section 4: Service Quality.

An emphasis was placed on Section 3, but because sections 1 - 4 all interact, it was included in this study. The data available presents possible solutions and were listed as such.

Summary of the Methodology Used

The study used descriptive research in noting the information gathered from

all available sources. It emphasizes the current situation in SA, gives some insight

as to the reasons for the occurrence thereof and shed some light on what solutions

might play a role in preventing a continuation of this situation in the future.

Conclusions

This study draws to the attention the fact that the fight against crime or the

improvement of service quality in any country cannot be the responsibility of the

government alone. It has to be a collective effort involving civilians as much as it

does the police force and all the governmental systems available. Social, moral

and economic development in the end remains the most formidable long-term guarantee against crime. It is also apparent that economic stability and growth will determine the ability (financially and otherwise) of a society to implement the various plans and strategies. Initiatives need to be implemented, but if funding,

81 motivation and commitment do not exists, most of these strategies to combat the problematic situation will be unsuccessful.

Recommendations

This study focused mainly on possible and initial solutions to solve the problems of criminality and poor service in SA. Further studies on the impact of these factors and the implementation of strategies designed to combat the situation, could provide more insight as to the requirements and prerequisites necessary for success. Another factor that should be taken into account is that this study and any further investigation into the subject would be of great value to most other developing countries. The strategies currently being developed in SA are unique and might prove to be more successful than those currently implemented by First World nations with the necessary resources available.

82 CHAPTER 4

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South African Tourism Board. (1998, May). Indaba '98. SATOUR NEWS, p. 1.

South African Tourism Board. (1998, December). New exciting era dawns for SATOUR and South African tourism. SATOER NEWS, pp. 1-3.

South African Tourism Board. (1998, April 17). Tourism statistics. SATOUR RESEARCH & INFO, pp. 1-8.

South African Tourism Board. (1998). Scenic evaluation index: Tourism. South Africa Yearbook, pp. 146-150.

The Department of Environmental Affairs and Tourism. (1998). Tourism in Gear: Tourism Development Strategies 1998 2000. June Design & Marketing Consultants, pp. 1-5.

The Department of Environmental Affairs and Tourism. (1997, November). Tourism Safety Task Group. TSTGTIMES. pp. 1^1.

The Department of Environmental Affairs and Tourism. (1997, September). Tourism Safety Task Group. TSTGTIMES. pp. 1-4.

The Department of Environmental Affairs and Tourism. (1996, June). White Paper: Development & Promotion of tourism in South Africa. Government of South Africa, pp. 1-59.

The Department of Economic Affairs and Finance. (1997, June). White Paper on Tourism. Gauteng Provincial Government, pp. 1-42.

Websites

The CIA World Fact Book, (1998). The United States Geography [Online]. Available: http://www.odci.gov/cia/publications/factbook [1999, February 23]

Federal Bureau of Investigation, (1999). Crime statistics [Online]. Available: http://www.fedstats.gov/index20.html [1999, February 25]

U.S. Census Bureau, (1999). Population estimates http://www.census.gov/population/www/estimates/statepop.html [1 998, December 13]

88 Breytenbach, W. (1996). Economics and politics in South Africa: five years from now [Online]. Available: http://www.southafrica.net/government/perspectives/p14.html [1998, August 20]

South Africa Government Policy (1998). Government safety and security: Crime and Violence in 1995 [Online]. Available: http://www.southafrica.net /government/ safety/crime.html [1999, January 27]

South African Police Service (1997). Crime statistics [Online] Available: http://www.saps.co.za/8_crimeinfo/bulletin/index.htm [1998, June 27]

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