Fair_Trade _session 3


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Fair Trade in Tourism South Africa (FTTSA) a certification and marketing initiative : 

Fair Trade in Tourism South Africa (FTTSA) a certification and marketing initiative Presentation by Anthea Stephens

Tourism Development in South Africa : 

Tourism Development in South Africa Tourism has been identified as a major driver of post-apartheid socio-economic growth and transformation Sustainable job creation Poverty reduction Community development Black Economic Empowerment 1996 Tourism White Paper 2002 Tourism Growth Strategy 2002 Responsible Tourism Guidelines

Tourism Demand in South Africa : 

Tourism Demand in South Africa Strong domestic market, 47% of total industry value Total foreign arrivals in 2002 up 11% over 2001 – trend is still positive 1,8 million overseas arrivals in 2002 Up 20,1% from 2001 Traditional international source markets: UK, Germany, Netherlands, Switzerland,USA Growth markets: India, China, France 4,5 million arrivals from Africa in 2002

What is Fair Trade? : 

What is Fair Trade? Initiated in Europe in the 1960s to help producers in developing countries receive fair share of revenue from sale of products Products / organisations carrying the Fair Trade label guarantee that the production process is “fair” Fair Trade products include coffee, tea, cocoa, honey, sugar, rice, fruit, cut flowers, etc. Sales of Fair Trade products grew 21.2% from 2001 - 2002 Biggest markets are UK & Switzerland, fastest growing are Austria, France & Norway, greatest penetration is in Switzerland & Netherlands. Fair Trade products now in 43 000 supermarkets in Europe & US, and in 12 000 retailers, e.g. Starbucks.

What is Fair Trade in Tourism? : 

What is Fair Trade in Tourism? International network on Fair Trade in Tourism (FTT) launched in 1999 by UK-based Tourism Concern. Aimed to promote a fair & ethical tourism industry. Ensures that local people – whose land, natural resources, labour, knowledge and culture are used for tourism activities – benefit benefit from tourism. Apply fair trade labelling to tourism – means of linking products to markets and improving sustainability.

The FTTSA Initiative : 

The FTTSA Initiative Established in January 2001 following 2-year pilot project Under auspices of IUCN South Africa – link between equity and sustainability Attempt to apply “fair trade” concept and practice to tourism industry – intentional focus on certification / labelling Builds on work done by the Fair Trade in Tourism (FTT) International Network led by Tourism Concern in the UK Currently funded by DFID, HIVOS, local donors Establishing an independent non-profit company by end of 2004

The FTTSA Initiative : 

The FTTSA Initiative Attempt to link “fair” businesses to growing demand for responsible travel Focus on tourism product certification and marketing Mainstream as well as emerging enterprises from throughout South Africa Member Tourism Business Council of SA and Southern African Tourism Services Association (SATSA)

Six FTTSA principles : 

Six FTTSA principles Fair Share Democracy Respect for human rights, culture & environment Reliability Transparency Sustainability FTTSA promotes: Respect for the environment Sustainable tourism Benefits from tourism to local people

Why certification? : 

Why certification? One of many available tools to promote sustainable and equitable tourism 3rd party “stamp of approval” Can provide qualifying establishments with credibility, market advantage, business linkages Complements supply-side interventions Concrete way of testing consumer demand for responsible travel Documentation of best practice

Achievements to date : 

Achievements to date Development of certification system, emphasises social standards fair wages & working conditions, employment equity, positive local economic impacts, respect for human rights, culture & environment Development of a User Fee Model and schedule of benefits to Trademark Users (Users’ Guide) Awareness raising and networking (industry) Training of 15 independent consultants to act as FTTSA Trademark Assessors Establishment of independent expert Panel Certification of 7 establishments since mid-2003 – others in process

Key features of FTTSA Certification : 

Key features of FTTSA Certification 3 phased process: self-assessment, then on-site assessment & adjudication Business carries costs of assessment – emerging enterprises can apply for subsidy Annual “user fee” calculated according to published rates and capacity – fair system All certified products re-assessed annually Unsuccessful applicants wait 6 months to re-apply All decisions taken by a 3-member Trademark Panel System is product-driven and destination specific

Currrent FTTSA “Trademark Users” : 

Currrent FTTSA “Trademark Users” Shiluvari Lakeside Lodge (Limpopo) Sabi Sabi Private Game Reserve (Greater Kruger) (3) Storms River Adventures (Tsitsikamma, Garden Route) (4) Spier Leisure (Stellenbosch, Cape Town) (5) Calabash Lodge & Tours (Port Elizabeth) (6) Masakala Traditional Guesthouse (southern Drakensberg Mountains) Klippe Rivier Guesthouse (Swellendam, Western Cape)

Shiluvari Lodge : 

Shiluvari Lodge Small enterprise (11 employees, 24 beds) Primarily family owned Involved in FTTSA pilot project Member of local Ribolla Tourism Association Anchor for cultural tourism in poverty stricken area – arts & crafts, local tours Reliance on domestic market and foreign tour groups Trademark awarded in October 2003

Spier Leisure : 

Spier Leisure Large “mainstream” wine estate outside Cape Town 4-star hotel, conference centre, restaurants, etc. Business and leisure markets Strong commitment to sustainability and local economic development through employment, training, procurement Support to conservation projects, organic farmers, SA Sustainability Institute, local schools Preferential employment of local residents Trademark awarded in October 2003

Masakala Traditional Guesthouse : 

Masakala Traditional Guesthouse Was part of FTTSA pilot project 100% community-owned business – community trust linked to community tourism organisations Supported by SDC and New Zealand Aid Micro enterprise (2 employees) Infrastructure funded by national poverty relief programme – but lack of market knowledge and access Trademark awarded in May 2004 Trademark offers marketing support and access to niche and domestic markets

FTTSA success : 

FTTSA success Built up critical mass of certified products – good quality, good mix, substantial size portfolio Linking products to markets – worked with tour operators, fair trade & other likeminded organisations Raising domestic awareness about “fair tourism” Testing / demonstrating demand for “fair” travel options Demonstrating benefits to certified establishments Maintaining the credibility of our system Tourism can be an engine of sustainable development, but if not fair, won’t be sustainable


THANK YOU. www.fairtourismsa.org.za

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