Definitii Turism

Tourism Development in Small Towns:
the Case of Parys, Free State
Irma Wilkinson
A mini-dissertation submitted in partial fulfilment of the requirements for a

Masters in Development Studies
Faculty of Economic and Management Sciences

University of the Free State
Supervisor: Prof. Gustav Visser
January 2008
Tourism Development in Small Towns: the Case of Parys, Free State I. Wilkinson
Acknowledgements
Thanks to Prof. Gustav Visser for giving me direction, as well as providing academic and intellectual support during
the course this study.
Thanks to all respondents who were willing to participate in the study and who so graciously shared their time,
knowledge and resources. Special thanks to the following institutions for providing valuable information; the
Tourism Office at the Fezi Dabi District Municipality; the Tourist Info Office endorsed by the Parys Development
Forum and African EPA.
Thanks to my friends for your support and to my family for believing in me, encouraging me, praying for me, as well
as putting up with all of my ‘nukke en grille’ over the last two years.
Thanks to Anneke for assisting me with the fieldwork, your help is highly appreciated. Special thanks to the
following persons at Urban-Econ; Leanna, thanks that I could ‘pick your brain’ ever so often and for sharing your
insights and resources; Carla for assisting me with the proof-reading of the document and Werner for creating
some of the maps used in this study.
Most of all, thanks to my Heavenly Father for giving me the ability, the courage, the perseverance and the will
without which the realisation of this study and the completion this course would not have been possible.
The Free State landscape gladdens my heart no matter what my mood. When I am here I feel that nothing can
shut me in that my thoughts can roam as far as the horizons.
- Nelson Mandela -
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List of Abbreviations
AGES Africa Geo-Environmental Services

ASGISA Accelerated and Shared Growth: South Africa
ATI Academy for the Tourism Industry
BEE Black Economic Empowerment
CBD Central Business District
CDE Centre for Development and Enterprise
DEAT Department of Environment Affairs and Tourism
DBC Dome Bergland Conservancy
DTI Department of Trade and Industry
HDSA/s Historically Disadvantaged South African/s
IDP Integrated Development Plan
IMP Integrated Management Plan
ISCOR Iron and Steel Corporation
FDDM Fezile Dabi District Municipality
FSDPF Free State Development and Planning Framework
FSGDS Free State Growth and Development Strategy
FSP Free State Province
GDP Gross Domestic Product
GGP Gross Geographic Product
LED Local Economic Development
MEC Member of Executive Council
NHRA National Heritage Resources Act
NLM Ngwathe Local Municipality
ODI Overseas Development Institute
PEA Potential Economically Active
PDF Parys Development Forum
SAI South Africa Info
SAT South African Tourism
SAR South African Railways
SDF Spatial Development Framework
SMMEs Small, Micro and Medium sized Enterprise/s
T&T Travel and Tourism
THETA Tourism and Hospitality Education and Training Authority
TGCSA Tourism Grading Council of South Africa
VDWHS Vredefort Dome World Heritage Site
VFR Visiting Friends and Relatives
UNESCO United Nations Educational, Scientific and Cultural Organization
UNWTO United Nations World Tourism Organization
USFs Unique Selling Features
WTTC World Travel and Tourism Council
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Table of Contents
List of Figures vi
List of Tables vi
Chapter 1: Introduction 1
1.1 Background Information Regarding Parys 1

1.2 Research Question 2
1.3 Aims and Objectives of the Study 2
1.4 Research Methodology 3
1.5 Research Limitations 6
1.6 Outline of the Research Report 7
Chapter 2: Literature Review 9
2.1 Leisure, Recreation and Tourism 12

2.2 Small Towns and Rural Decline 14
2.3 Tourism as a Development Strategy 16
2.4 Tourism SMMEs 17
2.5 Second Home Development 19
2.6 Supply-side Concepts 20
2.7 The Tourism Economy 21
2.8 Responsible Tourism Guidelines 23
Chapter 3: Economic Overview of the Impact of Tourism 25
3.1 The Scale and Impact of Tourism on the South African Economy 25
3.2 The Free State Perspective 29
3.3 Local Economic Profile of the Ngwathe Local Municipality 30
Chapter 4: Situational Analysis Regarding the Tourism Industry of Parys 36
4.1 Spatial Analysis 36

4.2 Tourism Supply Analysis 41
Chapter 5: The Historical Development of Parys 49
5.1 The Origin and Early Development of Parys 49

5.2 The Development of Parys as a Recreational Resort 52
5.3 Recent Developments vis-à-vis Tourism in and around Parys 55
5.4 Concluding Remarks 58
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Chapter 6: Discussion and Analysis of Primary Research Findings 59
6.1 A Profile of Tourism SMMEs 59

6.2 The Nature of the Tourism Industry in the Parys Area 61
6.3 A Summary of Key Findings 67
6.4 SWOT Analysis 68
Chapter 7: Comparative Analysis 73
7.1 A Comparison vis-à-vis the Characteristics of Tourism SMMEs in the Free State 73
7.2 A Comparison vis-à-vis Several Aspects of the Clarens and Parys Tourism Systems 75
7.3 Conclusion 78
Chapter 8: Development Implications and Recommendations 79
8.1 Development Vision and Objectives 79

8.2 Strategic Development Thrusts 80
8.3 Support Interventions 86
8.4 Key Success Factors 88
8.5 Recommendations for Future Research 90
8.6 Conclusion 91
List of Sources 93
Annexure 98
Annexure I: Non-agricultural land uses of the VDWHS 98

Annexure II: Planned land use applications for the VDWHS 98
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List of Figures
Figure 2.1: Leisure, Recreation and Tourism 13

Figure 2.2: Two-tier Model – a Supply-side Definition of the Tourism Industry 21
Figure 2.3: The Relation between the T&T Industry and the T&T Economy 23
Figure 3.1: Foreign Tourism Arrivals to South Africa, 1965 to 2006 25
Figure 3.2: Provincial Distribution of Tourism Flows (2005) 29
Figure 3.3: Economic Profile of the Ngwathe Local Municipality, 1995 to 2005 30
Figure 3.4: Catering and Accommodation Growth Performance, 1995-2005 31
Figure 3.5: Ngwathe Local Municipality Employment Levels 33
Figure 4.1: Location of Parys on the Urban Fringe 37
Figure 4.2: Spatial Orientation and Accessibility of Parys 38
Figure 4.3: Town Layout of Parys 39
Figure 4.4: Tourism Product Offering in the Area 42
Figure 5.1: Parys Hotel 52
Figure 5.2: The Mimosa Tearoom 55
Figure 6.1: The Period of Operation Regarding Tourism SMMEs in the Area 59
Figure 6.2: The Highest Level of Education Indicated by the Owners of Tourism SMMEs 60
Figure 6.3: Life Stage of Tourism SMME Owners in the Parys Area 61
Figure 6.4: Reasons for Visits 62
Figure 6.5 The Influence of the Declaration of the VDWHS on Visitor Numbers in the Area 63
Figure 8.1: Strategic Development Implications for Tourism Development in the Parys Area 80
List of Tables
Table 1.1: Research Methodology 4

Table 3.1: Recent South African Tourism Statistics 27
Table 3.2: Sectoral Growth in the Ngwathe Local Municipality 32
Table 3.3: Unemployment Figures (2001) 34
Table 4.1: Characteristics of Accommodation Establishments in the Area 43
Table 5.1: The Historical Development of Parys 50
Table 6.1: Barriers to the Development of Tourism in the Area 63
Table 6.2: Recommendations Regarding the Development of Tourism in the Area 65
Table 6.3: SWOT Analysis of the Tourism Industry in the Parys Area 70
Table 7.1: A Comparison between the Characteristics of Tourism SMMEs in the Free State
and Parys 74
Table 7.2: A Comparison Regarding the Key Success Factors for Tourism Business
Development between Clarens and Parys 77
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Declaration
I declare that the mini-dissertation hereby submitted for the Masters in Development Studies at the Centre for
Development Support, University of the Free State, is my own independent work and that I have not previously
submitted this work for a qualification at/ in another university/ faculty. All sources of information used have been
indicated and acknowledged by means of complete references.
The copyright pertaining to this study belongs to the University of the Free State.
Signature:
Date:
vii
Abstract
The potential of tourism as a development strategy for small towns is recognised in tourism development literature
and tourism is increasingly regarded as a viable avenue for local economic development. Small towns on the
urban fringe has benefitted from tourism development in South Africa. The town of Parys on the Vaal River was
chosen as the focus of this case study. Parys falls within the Free State Province, but is situated on the periphery
of the greater Johannesburg metropolitan area. Parys has experienced tourism development over the past few
years which have resulted in local economic growth, especially reflected vis-á-vis the trade industry, amidst the
decline of other sectors such as manufacturing.
This study found that tourism has played an important role in the historical development of Parys. The town has
developed as an inland, domestic resort and retirement haven over the years. During the early years, the town
council of the time played an important role in the development of Parys as a domestic resort and were involved in
concerted efforts towards promoting the town as a leisure destination. The first effort to promote the town, in this
regard, dates back to 1911. During the last decade, Parys has experienced a renewal in tourism flows in
accordance with national trends; tourism growth in the area did, however, accelerate over the past two to three
years. Tourism growth in the area coincides with the declaration of the Vredefort Dome as an UNESCO World
Heritage Site. It is thus suggested that the declaration of the World Heritage Site played an important role
concerning tourism growth in the area, and will continue to do so in the future as planned developments with regard
to the site is realised.
The unique selling points of the Parys area, concerning tourism, is presently centred around arts and antiques,
followed by weddings and teambuilding activities, as well as conferences. Based on the research conducted as
part of this study it is concluded that the characteristics of tourism SMMES in Parys strongly reflects the
characteristics of tourism SMMEs elsewhere in the Free State as determined by Rogerson (2005).
It is proposed that potential exists for the expansion of adventure tourism and nature-based tourism; the
development of more budget, as well as luxury accommodation. Recommendations in connection with the future
development of tourism in the area include; tourism product development focussed on attractions; the identification
of key market segments such as budget tourists and the family market; destination and product marketing;
investment in tourism infrastructure and ensuring the responsible management of tourism development in the area.
The contribution of this research study lies in the confirmation of trends pertaining to tourism development in small
towns in South Africa, as well as in the provision of strategic directives towards the future development of tourism
in the area. It is suggested that recommendations in this regard could be applied to tourism development in other
small towns.
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Chapter 1: Introduction
Tourism is a growing industry within South Africa and has grown tremendously since the age of democracy. The
tourism industry has been described by Crispian Olver, from the Department of Environmental Affairs and Tourism
(DEAT) as a ‘success story of the new South Africa’ (SAI, 2004:1). Tourism is regarded as an attractive option
towards ensuring local and rural economic development (Binns and Nel, 2002a; b), job creation and sustainable
environmental development, amidst struggling industries like mining and agriculture (Van der Merwe et al., 2005;
Donaldson, 2007). Tourism is thus widely regarded as a development option in peripheral areas such as small towns
(Rogerson, 2005b, 2004a; Donaldson, 2007). The Centre for Development and Enterprise (CDE) suggest that small
town growth and renewal can be ascribed to the development of small towns as retirement centres and tourist
destinations (CDE, 1996). The tourism industries of towns on the urban fringe are thus growing; attracting the urban
population during leisure times inter alia weekends and vacations (Donaldson, 2007).
Parys has grown in popularity as a tourist destination and has become ‘quite a fashionable settlement’ (Free State
Guesthouses, 2007 [online]) over the past few years. Growth in small towns can often be ascribed to second home
development (Hoogendoorn and Visser, 2004) associated with the growth of the tourism industry in a locality.
Hoogendoorn, et al. (2005) identified a trend for weekend homes along the Vaal River.
In this report, a case study is presented regarding the tourism industry of Parys and its surrounding areas; factors
that gave rise to the development of tourism in this town have also been identified along with opportunities and
barriers to development. Strategic development directives and initiatives are recommended for the future
development of the tourism industry in the area. The role of tourism in small town development is the point of
reference from which this study will be approached.
1.1 Background Information Regarding Parys
The town of Parys is situated on the southern embankment of the Vaal River, approximately 120 km south of
Johannesburg on the northern border of the Free State province. The Vaal River demarcates the border between
the Free State and the North West Provinces. Parys falls under the jurisdiction of the Fezile Dabi (Northern Free
State) District Municipality (FDDM) and in the Ngwathe Local Municipality (NLM). Parys has grown as a tourist
destination over the past few years with interesting walk-in shops; which include antique shops, art galleries, quaint
buildings, gift shops, coffee shops, etc. The unique attributes of the area such as; available water resources, the
topography and the geography of the area, etc. provides opportunities for adventure and recreation activities.
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The Vredefort Dome, within which the towns of Parys and Vredefort are situated, was declared an UNESCO World
Heritage Site in July 2005. The Dome is currently regarded as the world’s oldest and largest meteorite impact
structure measuring approximately 200km in diameter (Myburg, 2007[online]; Reimold, 2007[online]). The
geographic location of Parys, along the Vaal River, in conjunction with the series of hills and gorges situated in the
Dome, makes the area ideal for a variety of adventure and recreational activities such as; river rafting, abseiling, rock
climbing, mountain biking, 4x4 off-road driving, hiking, canoeing, boating, fishing, bird-watching, bathing, camping,
picknicing, etc. The recognition of the area as a World Heritage Site presents development opportunities that are
expected to result in an economic injection, as well as investment into the area. Funding towards the development of
tourism and infrastructure in the area has been allocated by the National Government, as well as the Free State
Provincial Government. DEAT has allocated R18 million to development in the area (Pinnock, 2005) and Mr. Neo
Masithela, MEC for Tourism in the Free State, has recently stated that the provincial budget provides for several
projects that will benefit rural communities in the Free State; the Vredefort Dome receiving R2.9 million toward further
development. (Blaaw and van der Berg, 2006).
1.2 Research Question
This report is guided by the following key research question:
To gain an understanding regarding the developmental considerations pertaining to the tourism industry in the Parys
area, as well as to assess barriers and opportunities vis-á-vis tourism development in Parys and surroundings. Also
to outline strategic directives and initiatives towards future tourism development in the area.
1.3 Aims and Objectives of the Study
The aims and the objectives can be outlined as follows:
• To conduct a literature review with specific focus on the tourism industry in South Africa, small town
development and tourism SMME development in peripheral areas. Also to investigate the dynamics of
the leisure, recreation and tourism nexus and other relevant aspects.
• To provide an economic overview of the impact of tourism on national, provincial and local level; South
Africa, the Free State Province and the Nqwathe municipal area in which the town of Parys is situated.
2
• To provide a situation analysis regarding the tourism industry in Parys and surroundings which include
a spatial analysis with regard to the location of Parys and a supply analysis concerning tourism SMMEs
in the area.
• To conduct a brief investigation regarding the development history of Parys with reference to the
development of tourism in the town.
• To conduct primary research in order to compile a profile of tourism SMMEs, as well as to develop an
understanding of developmental considerations vis-à-vis the tourism industry in the area. Also to
assess strengths and weaknesses of the local tourism industry will, henceforth, be assessed; as well as
the current development opportunities and barriers that inhibit growth of tourism in the area.
• To draw up a comparative analysis, regarding characteristics of tourism SMMEs, between the Parys
and tourism SMMEs in the Free State; as well as between Parys and Clarens concerning key success
factors for tourism development. This analysis is to be based on the primary research conducted in this
study and research conducted by Rogerson (2005) and Marais (2004), respectively.
• To suggest strategic directives and implications towards the development of the tourism industry in the
area and to include recommendations in this regard, as well as to provide conclusions based on the key
findings of the study.
1.4 Research Methodology
A case study approach is adopted for this investigation. The case study approach is an accepted and often utilised
research method with regards to tourism research (Beeton, 2005). The case study approach lends itself to utilising a
variety of sources and presenting findings in a variety of ways towards gaining an in-depth understanding regarding
various aspects related to a specific case. Miles and Huberman (1994) describe research case studies (in Beeton,
2005:42) as: “a holistic empirical inquiry used to gain an in-depth understanding of a contemporary phenomenon in
its real-life context, using multiple sources of evidence”. Stake (1983) asserts that case studies have the capacity of
taking numerous study foci into account by including several groups of individuals within the boundaries of a case, for
example a town (Beeton, 2005). The focus of the study is to accomplish just that; to gain a more in-depth
understanding of the developmental considerations concerning the tourism industry in Parys; to understand the
strengths and weaknesses of the tourism industry; and to identify barriers and opportunities vis-á-vis future
development by consulting with various groups of individuals in the town and using various other sources. Case
studies also provide a data source (Blaxter et al., 2001) that can be utilised for further analysis and research.
3
A further, in-depth study is thus possible, as the study will present an overview of the tourism industry in Parys;
specific aspects that relate to the topic can be investigated in more depth at a later stage. Table 1.1 below depicts a
summary of the research methodology concerning this study.
Table 1.1: Research Methodology

Descriptive
Research design
Case study
Category A: Tourism SMMEs Category B: Tourism Stakeholders
25 Respondents 10 Respondents
Study population & sampling
Probability sampling Non-probability sampling
Systematic sampling Purposive and snowball sampling
Semi-structured interviews (Category A and B)
Data gathering instruments & Document review
techniques Observations
Desktop search
Content analysis
Data analysis
Numerical coding (qualitative and quantitative data)
Voluntary participation
Ethical considerations Informed consent
Anonymity
Source: Compiled by author
A combination of quantitative and qualitative techniques, as well as a variety of sources will be utilised for this study
towards ensuring the triangulation of data and the amelioration of bias (Table 1.1). The study is mainly descriptive in
nature, as it aims to describe the nature of the tourism industry and tourism SMMEs in Parys, as well as
accompanying developmental considerations. Data gathering instruments for the compilation of a case study
include; interviews with Tourism SMMEs and tourism stakeholders in the area, as well as observations by the
researcher.
Semi-structured interviews have been conducted with tourism SMMEs (Category A) in order to collect the data
required. Interviews with 30 key role-players were planned, but due to time constraints and unwillingness by some
respondents, 25 telephone surveys were completed with tourism SMMEs in the Parys area. Telephone interviews
ensured a more scientific approach to sampling; a list of tourism SMMEs was compiled as described in Chapter 4. It
was thus possible to apply the systematic sampling technique in identifying possible respondents. The tourism
SMMEs were then categorised into the following categories; art and antiques shops; food and beverage
establishments, accommodation establishments and adventure activities. The proportion of surveys to be completed
in those categories was determined accordingly, with a larger share of the surveys conducted with accommodation
establishments due to the large number of these SMMEs in the area in relation to the other tourism SMMEs
mentioned. This was done towards ensuring a representative sample.
4
The names of tourism establishments were arranged alphabetically in each category and systematic sampling was
used to determine the respondents to be interviewed with ‘back-up’ groupings of respondents, should some of the
contacted respondents not be available or not wish to take part in the study. The questionnaire utilised for the
interviews in this category was piloted and a number of minor modifications were made to the questionnaire as a
result of the piloting. The questionnaire was designed in English and Afrikaans and respondents were given the
choice in which language they wished to respond.
Interviews with respondents in Category B were more informal and less structured; a list of topics for discussion was,
however, prepared for each interview. Face-to-face, as well as telephone interviews have been conducted with
respondents in Category B. Non-probability sampling methods were applied to identify respondents in this category
and the process contained elements of judgement and snowball sampling, because certain respondents were
recommended for consultation by other participants. Ten interviews were conducted with respondents representing
the following groups, organisations or individuals:
Local government, local and district council

Parys Development Forum (PDF)
Local entrepreneurs
Estate agents and property developers connected with Parys
Tourism information and booking offices
Persons with knowledge regarding the history of Parys
It should be mentioned that some of the interviews were short discussions regarding specific issues, but six of the
interviews were more in-depth. Some of the respondents also represented more than one category, for example
members of the PDF who are also local entrepreneurs. Due to ethical considerations, anonymity of respondents in
this category is respected and the names of individuals are thus not disclosed in the study. Insights, comments and
perceptions of respondents in this category will be referenced throughout the study to the interviews as indicated in
the list of sources; the category, organisation or institution presented by respondents is also referenced throughout
the study.
Other sources of information utilised include the review of documents and promotional material provided by
individuals and institutions; observations made by the researcher during visits to the area including; a historic tour of
the town by a local historian and participation in a LED Public Participation Indaba facilitated by Urban-Econ
Development Economists. Desktop research was also conducted.
5
Secondary sources of information include; provincial and local planning documents, for example the Free State
Growth and Development Strategy (FSGDS) and the Free State Development and Planning Framework (FSDPF);
the Integrated Development Plan (IDP) and Local Economic Development (LED) Strategy of the local municipality,
the Integrated Management Plan (IMP) for the Vredefort Dome World Heritage Site (VDWHS) and other related
documents. Publications by the Department of Environmental Affairs and Tourism (DEAT) and South African
Tourism (SAT) have been utilised, as well as documentary data. Examples of documentary data include; historical
documents, tourism promotional materials, newspaper clippings, internet searches, articles, speeches, etc. (Patton,
2002).
Information of a quantitative nature was coded numerically before and after the data collection process by the
researcher to aid analysis. Content analysis was applied to analyse qualitative data. Content analysis examines the
“words and phrases within a wide range of texts, including books, book chapters, essays, interviews and speeches
as well as informal conversations and headlines” (Babbie and Mouton, 2001). Other techniques that aided the data
analysis process (Blaxter et al., 2001) included the annotation and labelling of concepts in order to ensure that the
data analysis process is analytical in nature. Concepts, categories and statements, as well as any other interesting
pieces of information have, consequently been selected in order to illustrate arguments. Some of the survey data
with respondents in Category A is of a quantitative nature and was analysed on a numerical basis and converted into
tables and graphs where applicable. Key findings are interpreted and analysed in Chapter 6.
The most important ethical consideration connected to the study is voluntary participation. All the respondents
participated in the study on a voluntary basis and there were no incentives for participation. All respondents were
informed about the purpose of the study before he or she was questioned. The responses of individuals are treated
as anonymous and the identities of individuals are not disclosed in the study.
1.5 Research Limitations
A lack of detailed and accurate information on tourism SMMEs operating in Parys is considered to be a limitation to
the research process. A database of tourism SMMEs in the area was compiled from a variety of sources. No
complete list of tourism SMMEs in the area is available; the information was incomplete and incorrect, for example
names of establishments with no contact details, incorrect telephone numbers, names of establishments that do not
exist anymore, etc. It is clear that the tourism websites utilised are not updated on a regular basis.
6
Some of the owners of tourism SMMEs were unwilling to participate in the survey, stating that they did not have time
to partake in a ten minute interview. When asked if they could be contacted at another time, most complied, but
some were still unavailable at a later stage.
An important consideration regarding the research area has to do with the location of the tourism SMMEs in the
Parys area. It is estimated that up to 60% of especially accommodation establishments in the area, advertised as
tourism SMMEs in the locality of Parys, are situated on the northern side of the Vaal River and thus fall in the North
West Province (Interview 3). When the surveys were conducted no distinction was made between SMMEs situated
in the North West and the Free State Provinces. The supply of tourism SMMEs surveyed is regarded to contribute to
the tourism system of Parys and its immediate surrounds, even though some SMMEs are located on the other side of
the river and thus fall into the jurisdiction of other municipal councils and another province than that in which Parys is
situated. It should be realised that development of tourism systems in localities are not always demarcated
according to political boundaries, but often influenced by natural surroundings. In the case of tourism development in
the Parys area, it is clear that that many tourism activities developed on either side of the Vaal River, irrespective of
political boundaries, which is described as the ‘backbone’ of the tourism industry in Parys (Interview 3). This should
be remembered when reviewing the findings of the study and it should not be assumed that all the SMMEs
mentioned fall in the surroundings of Parys with regard to its Free State boundaries. The limitation thus lies in
making inappropriate assumptions by supposing that the tourism industry of the Parys area, from the Free State
perspective, is larger than it in fact is.
1.6 Outline of the Research Report
The research report consists of the following sections:
Chapter 2: Literature Review

Chapter 3: Economic Overview of the Impact of Tourism on National, Provincial and Local Levels
Chapter 4: Situational Analysis Regarding the Tourism Industry in Parys
Chapter 5: Historical Development of Parys
Chapter 6: Discussion and Analysis of Primary Research Findings
Chapter 7: Comparative Analysis
Chapter 8: Development Implications and Recommendations
7
The literature review follows in the subsequent chapter, with a focus on the following topics; the relationship between
leisure, recreation and tourism; small town development; tourism as a development strategy; tourism SMMEs;
second home development as a result of tourism development; supply-side concepts regarding the travel and
tourism industry; a brief overview of the travel and tourism economy and responsible tourism guidelines.
8
Chapter 2: Literature Review
Tourism, according to Sharpley (2002) is one of the major social and economic phenomena of modern times.
Tourism is considered as an industry and its contribution to national and international economies is a relatively new
concept. The comparative youth of the industry has, however, been characterised by meteoric growth. Since the
1960s the tourism industry has experienced rapid global growth and evolution, having experienced a number of
environmental changes (Simpson, 2001).
Tourism is a major contributor to national income on a macro-economic level, thus contributing to the Gross
Domestic Product (GDP). The main economic impacts of tourism are; expenditure and income generation,
employment creation and foreign currency earnings (Tribe, 2005). Tourism seems to be the only realistic means of
earning foreign exchange, creating employment and attracting foreign investment in many developing countries
considering; the limited industrial sector, dependence on the primary sector, limited natural resources and
dependence on international aid (Sharpley and Tefler, 2002). The economic importance of tourism depends on the
level of economic development within a country. As countries develop and become richer, spending on leisure
pursuits and thus tourism increases, while in low-income economies resources are typically used to satisfy basic
needs, for example spending on basic amenities such as food, clothing, shelter etc. (Tribe, 2005). Spending on
leisure and recreational pursuits bears relation to national spending patterns and volume domestic tourism flows.
Domestic tourism is a significant contributor to the tourism industry that often receives less attention than
international tourism. Domestic tourism can be regarded as a better generator of local income, because it relies on
local sources (Sharpley and Tefler, 2002). Governments of developing countries tend to place less emphasis on
domestic tourism, in relation to its more glamorous international counterpart, despite growth in domestic tourism and
a growing middle-class (Scheyvens, 2002). It is thus important to realise the importance of the role that domestic
tourism plays in the leisure and recreation industry. The leisure industry is increasingly seen as an appropriate
vehicle to aid economic growth, especially in developing countries (Tribe, 2005).
Academic attitudes towards tourism and its developmental role have moved away from their initial enthusiastic
approach towards an increasing degree of ambivalence; the concept of tourism as a significant economic benefactor
remains well supported nevertheless (Simpson, 2001). In the light of the above-mentioned; “tourism is not a
panacea for pro-poor development in Africa, nor is tourism equally appropriate for all countries” (ODI, 2006:3).
Scheyvens (2002) supports the before-mentioned statement, but includes that tourism can ensure certain benefits
and reduce inequalities between rich and poor.
9
She argues further that the outright condemnation of tourism in the developing world seems inappropriate when
communities are struggling to find means of sustaining their livelihoods (Scheyvens, 2002). Sharpley and Tefler
(2002) conversely challenge the popular assumption that tourism is an effective vehicle for development. Tourism
benefits in general do not filter down to poor communities as often assumed, and do not necessarily bring about
development. It can thus not be assumed that the benefits of tourism will insure equity, equality, community
upliftment etc. The most significant contribution made by tourism to the local economy is the creation of low level,
semi-skilled jobs.
High leakages exist with in the market; profits end up in the pockets of large international or national enterprises and
do not filter through to poor communities in most cases. Countries can however capture significant benefits from
international tourism at the macro economic level (ODI, 2006) with regards to economic growth and the contribution
of the tourism economy to the GDP. Tourism can thus help diversify and stabilise the local economy, create
business opportunities, employment and contribute to the tax base (Butler and Hall, 1998). It should however not be
assumed that development is purely economic (Scheyvens, 2002). Development is a multi-dimensional process
(Scheyvens, 2002). The definition of development has expanded in recent years to a more holistic definition that
includes economic, social, cultural, political and environmental factors (Sharpley and Tefler, 2002). In the light of the
before-mentioned, Sharpley is thus correct in arguing that tourism, other than the economic benefits, does not
necessarily ensure development in terms of social, political and environmental aspects.
The twentieth century has witnessed the spectacular growth of the leisure and tourism industries (Shaw and
Williams, 1994). Ever increasing flows in tourism numbers have led the mass tourism phenomenon that emerged
during the 1930s with the introduction of paid holidays and car ownership in developed countries. Charter flights and
the economic boom in the West after the Second World War (1950s) ensured further increases in the number of
international tourists. Mass tourism is a form of mass leisure that stems from Fordist mass consumption (Shaw and
Williams, 1994). Mass tourism is a post-modern phenomenon that developed along with the increase of leisure time
since the age of industrialisation and is, therefore, characteristic of the tourism consumption patterns within the
Developed World. The field of mass tourism has however become increasing internationalised (Shaw and Williams,
1994) and mass tourism has resulted in many adverse effects on communities and environments.
The adverse impacts of tourism on communities and the environment have inter alia led to the development of
alternative approaches to tourism in recent years. Problems associated with tourism in the Developing World include
a dependency on foreign exchange, which can be problematic due to tourism’s volatile nature.
10
The tourism industry is influenced by a number of externalities e.g. political instability, environmental influences,
terrorism, economic recessions, etc. Other adverse impacts include issues, such as the perpetuation of spatial
inequalities, environmental decline, cultural alienation etc. (Sharpley and Tefler, 2002). Alternative tourism strategies
usually include concepts such as; small-scale, locally-owned operations, community participation, environmental
sustainability, nature-based attractions, integrated development and pro-poor approaches, etc. (Sharpley and Tefler,
2002). It is, however, not correct to assume that small-scale operations are necessarily more sustainable than large
scale operations (Sharpley and Tefler, 2002). It is important to take site-specific considerations into account and to
remember that development and conservation are often on opposite ends of a continuum. Striking a balance in
terms of development and environmental sustainability is thus important if not always easily attainable. Small-scale,
locally-owned operations can however result in lower economic leakages (Sharpley and Tefler, 2002). Tourism
revenue is thus more likely to remain and circulate within the local economic system resulting in multiplier effects in
the local economy. Large scale, foreign owned tourism operations do, on the other hand, result in high leakages
across national borders.
A manifestation of the mass tourism is the dominance of trans-national organisations in the tourism industry within
developing countries (Sharpley and Tefler, 2002). Sharpley and Tefler (2002) argue that the increasing dominance
of trans-national organisations and the growing structural power of global market forces are connected with capitalist
restructuring and economic globalisation. The before-mentioned thus reinforces the dominance of developed
countries with regard to international trade relations, subduing developing countries into a role of dependence.
Sharpley (2002) explored the relation between core and peripheral areas in terms of tourism development. He
postulates that peripheral, developing states are in the position of dependence on foreign capital and international
tourists. The flows of international tourism remains highly polarised and regionalised with international tourism being
dominated by the industrialised world (Sharpley and Tefler, 2002). The major tourist flows thus occur between the
more developed countries and to a lesser extent from developed to developing countries. Furthermore, tourism
exacerbates the social and economic inequalities between the core and periphery (Sharpley and Tefler, 2002). As
the core-periphery divide is true for developed and developing states, it is also true inside the national boundaries of
a country. In South Africa, core-periphery divides are very apparent with the society e.g. between urban and rural
areas, between towns and townships, former white and black areas e.g. former homelands, etc. (Rogerson; 2005b,
2004a).
11
Shaw and Williams (1994) argue that form and the level of tourism development in developing countries depend on
the stage of integration into the world economy or in other words; the extent to which the periphery are integrated
with the core. There are four stages of integration namely; none, weak, moderate or strong based on Hall’s typology
(1986). Shaw and Williams contend that Hall’s typology can be used as a model for tourism incorporation; the
greater the incorporation, the greater the market articulation and thus the greater impact of the core on the periphery.
The impact of the core on the periphery, with regard to tourism, does however remain limited due to the asymmetrical
flows of tourism from developed to developing countries (Shaw and Williams, 1994). In pursuing tourism a
developing country thus opens itself up to the forces of market and globalisation (Sharpley and Tefler, 2002).
Gender, race, life-cycle and other social dimensions, often acting in combination are critical filters which condition
social access to tourism, leisure and recreational activities (Shaw and Williams, 1994). Structural features,
circumstances and environmental constraints determine an individual’s ability to participate in tourism and leisure
activities (Shaw and Williams, 1994). In addition to the aspects mentioned above; cultural norms, leisure time,
disposable income, the level of education, access to tourism areas, socio-economic conditions, etc. thus determines
an individual’s ability to participate in tourism and leisure activities. Tourism systems have the potential to
exacerbate inequalities with regard to access and participation in tourism and leisure activities. Inequalities are
clearly distinguishable with regard to the flow of tourism between developed and developing countries.
2.1 Leisure, Recreation and Tourism
The concepts of leisure, recreation and tourism are interrelated, as indicated in Figure 2.1. Leisure is a modern
concept, often conceptualised as; discretionary time (Tribe, 2005; Smith and Godbey, 1991). Leisure can be
envisaged as a ‘state of mind’ or a ‘form of activity’ that a person engages in when free from obligations e.g. work
(Butler et al., 1998). The work-recreation-work cycle was brought on by industrialisation (Smith and Godbey, 1991).
This cycle led to the introduction of the concept ‘leisure time’. Recreation subsequently relates to the pursuits
undertaken in leisure time, these pursuits can either be home-based e.g. sports, entertainment etc. or undertaken
away from home (Tribe, 2005). When leisure and recreation activities are undertaken away from home, for at least
one night, these activities are defined as travel and tourism activities for leisure and recreation purposes (Tribe,
2005; Smith and Godbey, 1991).
12
Time Other
Leisure Work
Recreation
Home-based Recreation away Travel &

recreation from home tourism
Figure 2.1: Leisure, Recreation and Tourism

(Source: Tribe, 2005:3)
Among the six kinds of leisure described by Kaplan (1960) are the regular leisure activities of the employed during
holidays and vacations, as well as the leisure activities pursued by the aged when retired (Smith and Godbey, 1991).
These, before-mentioned, kinds of leisure pursuits relate to recreational activities away from home for travel and
tourism purposes, for the most part. Recreation and leisure are important motivations in the tourism experience
(Smith and Godbey, 1991). Travel undertaken as a pleasurable and rewarding activity falls in most
conceptualisations of leisure and recreation (Smith and Godbey, 1991). Travel and tourism share several areas of
commonality with recreation and leisure. “Many authors link both recreation and leisure, as well as tourism, to a
spiritual search” (Smith and Godbey, 1991: 94). Godbey thus links, tourism, recreation and leisure to the “existential
quest for meaning in industrial life” (Smith and Godbey, 1991:94).
In many cases, leisure, recreation and tourism activities are identical, the key difference being; the location of the
activities, the duration of time involved and the attitudes, motivations and perceptions of participants. The differences
between recreation and tourism, except at a philosophical level, have decreased in recent years and the distinctions
have thus become increasingly blurred (Butler et al., 1998). The reason for the above-mentioned is the changes in
the economic and social fabric of society related traditional timing, settings and patterns vis-à-vis work and leisure
activities (Butler et al., 1998).
According to Shaw and Williams (1994) there are a number of points at which tourism and (non-tourism) leisure are
inter-related. The first point of interaction relates to the notion that tourism and leisure are tied together in the same
time-space framework. Tourism and non-tourism leisure activities thus compete for the same time available for
recreation after work related obligations. Tourism and leisure, secondly, compete for the same portion of disposable
income with regard to household budgets.
13
Tourism and leisure activities are lastly both socially constructed. Tourism and leisure cannot be adequately
understood without reference to each other due to their inter-related nature and construction.
2.2 Small Towns and Rural Decline
Differential growth of small towns and the concomitant decline of settlements is an international phenomenon that
has been echoed in South Africa over the last few decades (Van der Merwe et al., 2005). Many small town and rural
communities have experienced a continual haemorrhage with regard to population and business loss (Black and
Kenyon, 2001). This decline is not a new global phenomenon, but its effects have intensified over the last two
decades. Widespread economic and demographic decline pertaining specifically to small towns and rural areas can
be identified in countries such as; Australia, the United States of America, New Zealand and South Africa (Black and
Kenyon, 2001).
Rural societies and economies have experienced extensive restructuring since the 1950s with relation to; rural-urban
migration, the commercialisation of agriculture, the impacts of technology and the changes in political and economic
arrangements at local and global level (Butler et al., 1998). Economic and demographic decline of small towns and
rural communities is apparent within communities that are traditionally dependent on primary industries such as
mining, fishing and traditional agriculture (Black and Kenyon, 2001; Marais 2004). Additional external pressures that
impact on the stability of communities include; environmental decline, rapid technological change, changing lifestyle
options and consumer habits, low incomes or unemployment, decline in the provision of social services and a
deteriorating infrastructure, youth and skilled labour migration resulting in a low or semi-skilled local labour force, etc.
These issues are common concerns affecting small towns and rural communities on an international scale (Black
and Kenyon, 2001).
The economies of most sub-Saharan African countries are dependent on the agricultural sector. Agriculture is,
predominantly, a rural industry that has recorded weak growth rates of agricultural production over the past fifty years
or so. The proportion by agricultural sector in Africa has accordingly declined from approximately 78% in 1965 to
68% in the 1990s (Delancy, 2001). Agriculture’s contribution to the GDP, in South Africa, declined from 20% in the
1920s to less than 6% in the late 1990s (Edwards, 2001). The mining sector has displayed a gradual decline in
production output; the sectoral share of total gross output has decreased from 8.6% in 1984 to 6.8% in 1997
(Edwards, 2001) and mine closures have been prominent in South Africa over the last 20 years (Marais and
Atkinson, 2006).
14
The agriculture and mining sectors have, therefore, suffered huge employment losses in South Africa. The
agriculture sector shed 1,2 million jobs and the mining sector 211,000 jobs between 1970 and 1995 (Bhorat, 1999).
These job losses can be ascribed to decreases in production outputs by these two sectors. As a result the
economies of many small towns, dependent on agriculture and mining, are struggling. The decline of the agricultural
and mining industries results in unemployment in small towns and rural communities. A certain share of the labour
force thus migrates to urban areas in search of employment. The economic decline, low incomes and hard living
conditions in rural areas are thus contributing factors to large-scale urbanisation. According to the World Bank,
approximately 32.3% of the sub-Saharan population lived in urban areas in 1997 and the urban population has been
increasing with and annual rate of at least 4.7% since 1987 (Delancy, 2001). Urbanisation, partly due to the decline
in the agricultural and mining industries, thus results in the socio-economic decline of small towns and rural
communities. Urbanisation is also results in high rates of population growth in sub-Saharan Africa.
During the 1980s and 1990s many academics, regional planners and policy makers agreed that small towns have a
significant role to play with regard to regional development. Small towns, as service centres, can contribute to the
regional economy by providing production linkages that will result in ‘trickle-down’ benefits to the local economy (Van
der Merwe et al., 2005:296). Hinderlink and Titus (2005) contest the ‘conventional wisdom’ that small towns have a
significant role to play towards regional development. They argue that small towns have inherent weaknesses with
regard to production and servicing functions and thus, in fact, only have a modest developmental role. Their
arguments are based on the research findings, by a team of Geographers at the University of Utrecht. The
comparative studies, started in the 1980s, focused on the functioning of small towns in a number of regions, in order
to determine the towns’ developmental role in each of the regions (Hinderlink and Titus, 2005). The factors that
reflect the perceived, inherent weakness of small towns, based on the case studies include; a large servicing sector
in small towns absorbing more labour than strictly needed, public services that do not cater for the needs of lower-
income masses contributing to socio-economic stagnation in rural areas and a fragmentation of trade activities due to
competition from more efficient large traders in higher order centres (Hinderlink and Titus, 2005). One of the major
findings is thus that small towns rarely play a prominent role in regional development; small towns do however seem
to fulfil a supportive role (Hinderlink and Titus, 2005). The role of small towns is thus more modest than anticipated
by some.
A number of rural communities in the international area have recognised the long-term effects of population and
service decline and despite the issues and pressures have adapted, embraced change and began to prosper (Black
and Kenyon, 2001). While many small towns are struggling to survive there are examples of those who have;
“managed to transform themselves into prosperous tourist destinations” (Donaldson, 2007).
15
There are many examples of such towns in South Africa. Trends identified by the Centre of Development and
Enterprise (CDE), with regard to small town renewal, include that many of the growing towns are attractive retirement
centres or tourism destinations. The possibilities for economic growth and job creation include inter alia the
development and expansion of the tourism industry in specific small towns (CDE, 1996). It would seem that towns
within the proximity of metropolitan areas are increasing becoming involved in non-agricultural activities (Donaldson,
2007). Easy access and a sense of rurality categorises these towns as the pleasure periphery; places to which the
urban population migrate in their leisure time, such as weekends and vacations (Donaldson, 2007).
2.3 Tourism as a Development Strategy
Exponential volume increases in international arrivals over the last few decades have led many countries to adopt
tourism as an appropriate mechanism to revitalise their peripheral areas and to stimulate economic development,
especially in response to the decline of primary economic sectors (Simpson, 2001). Rogerson (2000) has identified
tourism as a key local economic development (LED) strategy, especially for smaller urban centres (according to
Binns and Nel, 2002a). It is perceived by many that tourism has potential as a pro-poor strategy, which is an
emerging theme in development literature, to promote community development and sustainability in a manner that is
not harmful to the environment and the communities involved (Binns and Nel, 2002a). Tourism was identified as one
of the most effective tools towards the sustainable growth of poor, underdeveloped countries by the World Tourism
Organization (ODI, 2006). Sharpley and Tefler (2002) state that destinations with special natural, cultural or
historical significance are adopting tourism as a development strategy.
According to the Department of Environmental Affairs and Tourism (DEAT) the tourism sector is viewed as a key
driver with regard to economic expansion and employment creation and thus an integral part of South African policy
vis-à-vis local economic development (Viljoen and Tlablela, 2007). Tourism is thus often utilised as a small town
renewal and rural development strategy. Options such as culture or adventure tourism are promoted as growth
activities in areas that have been subjected to agri-industrial collapse or in remote areas where the diversification of a
marginal agricultural economy is desirable (Viljoen and Tlabela, 2007). A few international examples (Viljoen and
Tlabela, 2007) of the above-mentioned follows.
In Malaysia, government-initiated agri-tourism centres were developed for educational and recreational purposes and
are combined with historic and cultural attractions in rural areas. Tourism is used as a tool for rural regeneration in
Eastern Europe with the focus on the diversification of underdeveloped areas, etc.
16
Sharpley (2002) argues that the benefits of tourism as a vehicle for development includes the transfer of wealth
between rich and poor on an international and domestic level; the absence of trade barriers to tourism unlike other
forms of international trade; the utilisation of natural resources, for tourism purposes, that has limited or no alternative
use e.g. sea, beaches, mountains etc.; the creation of backward linkages between industries to provide tourism
products or services e.g. suppliers of transport, food and beverages, entertainment, etc.
Binns and Nel (2002a) indicate that the combined assets of natural beauty, local entrepreneurs and established
community organisations can foster tourism development and therefore local economic development in small towns.
Redundant mining infrastructure can be used for tourism development in areas that have been subjected to mine
closure for example, a mine museum or the development of mine heritage routes like the Horizon Tourism Route that
includes the town of Koffiefontein in the southern Free State (Marais and Atkinson, 2006). Tourism is thus viewed
as a tool towards elevating poverty and stimulating employment creation, especially in rural areas, with few other
economic development opportunities, that has natural or cultural tourism products to offer.
It is, however, important to mention that development should be at a level that does not exceed the carrying capacity
of the destination and thus causes serious or irreversible changes to the destination (Tribe, 2006). Development
should thus be able to sustain itself in the long run. Even though it is recognised that tourism has the potential to
contribute greatly to rural development and regeneration, expectations are often unreasonable and unrealistic. Many
public and private institutions regard tourism as an easy path to economic development and restructuring.
In conclusion; “it is not easy to plan high quality and sustainable tourist developments that balance (1) the economic
and social needs of the local residents with tourists’ needs and expectations, and (2) tourism with environment
(namely, conservation and preservation) concerns. In other words, sustainable tourism is not an easily achieved
goal” (Butler and Hall, 1998:38). Despite concerns raised with regard to the growth of the tourism industry in the
developing world, tourism is still perceived by many as a viable development option (Scheyvens, 2002).
2.4 Tourism SMMEs
The future development of the tourism economy should include government transformation objectives such as; Black
Economic Empowerment (BEE) and the promotion of SMMEs. The before-mentioned aspects are of critical concern
for policy makers (Rogerson, 2005a; 2005b). According to Rogerson (2005b) the tourism economy in South Africa is
characterised by three groups of enterprises:
17
• The larger established operations, often groups of enterprises which usually consist of hotel groups,
casinos, large travel and tour operators e.g. Sun International, Thompson’s Tours etc.
• Established SMMEs, which usually consist of privately owned guesthouses, guest farms, restaurants,
game farms, bed and breakfast establishments, medium-sized tour operators etc.
• Emerging SMMEs, which comprises mostly of survivalist micro and informal tourism establishments in
rural areas.
Rogerson also states that the vast majority of South African tourism enterprises can be classified as SMMEs
(Rogerson, 2005b). The before-mentioned reflects an international trend; 99% of tourism enterprises in the United
Kingdom can be classified as SMMEs and 95% of tourism enterprises in Australia (Rogerson, 2005b:628). No
concise and generally accepted definition for SMMEs (Small, micro and medium sized enterprises) exists in South
Africa. The general description of SMMEs based on the National Small Business Acts of 1996 and 2003 is; SMMEs
should have less than 200 employees in the case of medium enterprises and up to five employees in the case of
micro enterprises.
The total annual turnover requirements vis-à-vis SMMEs range between R39 million p.a. (in the mining sector) and
R5 million p.a. (in the agricultural sector), the turnover requirements for other sectors fall between these two
parameters as detailed in the Act (National Small Business Act, 1996; 2003). Established SMMEs are characterised
by a number of elements. These SMMEs are usually established businesses that enjoy a number of critical
advantages over survival-focussed SMMEs (Rogerson, 2005b). Established SMMEs mostly operate within the
private sector. White entrepreneurs who have enhanced access to capital resources and social networks
predominantly own these enterprises. These entrepreneurs generally have higher levels of education and possibly
some level of management experience. On the other hand; emerging or survivalist SMMEs are typified as rural
based, micro-sized enterprises usually consisting of one entrepreneur and a few helpers. The focus of these SMMEs
is often based on survival because most of the entrepreneurs were forced to start their own, small businesses due to
a lack of formal employment in the region. These SMMEs are mostly black-owned. It should however be mentioned
that there are larger black-owned tourism enterprises situated in small towns, but these are few and far between due
to slow transformation of BEE ownership and empowerment in the tourism industry.
The large established tourism operations are dominant in the market (Rogerson, 2005b; Sharpley, 2002). These
enterprises are able to cater to the needs of the mass market and accommodate the bulk of international arrivals to
South Africa. On the other end of the spectrum, emerging SMMEs usually provide niche market product offerings
often focussed on providing cultural and heritage experiences.
18
The emerging SMMEs are less able, owing to a variety of barriers, to capture a significant proportion of the market,
as competition exists between established and emerging SMMEs. Large established enterprises are usually located
in established urban centres; whereas emerging, survivalist enterprises are mostly situated in peripheral rural areas.
‘Lifestyle entrepreneurship’ is an emerging trend among tourism SMMEs (Rogerson, 2005b). Lifestyle entrepreneurs
establish small tourism businesses, particularly bed and breakfast or small guesthouse establishments (Rogerson,
2005b). Lifestyle entrepreneurs in small towns are usually well capitalised, retirees or new lifestyle seekers from
metropolitan areas, as found in the town of Clarens (Rogerson, 2005b).
Farm stays and agro-tourism is another emerging tourism SMME trend. Local entrepreneurs use tourism as an
alternative source of income and means to diversify the local economy. The farm tourism is an international trend
and a strategy towards rural development, also in developed countries like the United Kingdom (Lane, 1994).
2.5 Second Home Development
Second homes are a major contributor to regional economies, especially in peripheral areas (Hall and Müller, 2004).
Significant growth in small towns and villages in South African can be ascribed to second home development
(Hoogendoorn and Visser, 2004). According to Hoogendoorn et al., (2005); second home development, investment
and visitation is a key variable that leads to considerable changes particularly in high natural amenity areas. Most
second homes are purchased for purposes related to lifestyle dimensions (Hall and Müller, 2004). These lifestyle
dimensions include concepts such as; ‘escaping’ from urban life, living a more ‘authentic’ or ‘real’ life, a step ‘back to
nature’, etc. (Hall and Müller, 2004). Private holiday homes are often purchased for investment purposes and
eventual retirement (Hoogendoorn et al., 2005; Hall and Müller, 2004). Families mostly use these second home
properties as holiday homes until the time of retirement. These properties can also be used as a means to generate
income. For example, owners might turn the property into an accommodation establishment e.g. a guest house, even
if they do not reside permanently in town or village of the second home property, the property may also be rented out
during holiday seasons etc. (Visser, 2006).
A trend, in terms of the development of second home ownership in South Africa over the last decade, suggests that
clear evidence of second home development exists with regard to weekend leisure in ‘locations that are relatively
close to the main metropolitan regions (Hoogendoorn et al., 2005:120). Individuals from metropolitan areas, thus,
often buy properties on the ‘urban fringe’ due to the proximity of such homes to their places of residence, making
visits to second homes ideal, especially, over weekends.
19
“The latest trend for weekend homes is the movement towards the south of the province to the Vaal River”
(Hoogendoorn et al., 2005:120). Parys is situated along the Vaal River on the Northern border between the Free
State and North West Provinces. Parys is approximately one hour’s drive from Johannesburg and the distance
between Parys to the Gauteng border is 36 km via the N1 and the R59.
Second home ownership has various impacts on the local community; one of the most significant impacts is the
increase in house prices making properties very expensive for the residents of the town who do not generate high
incomes. Other impacts will be briefly mentioned, based on the findings of a case study on Clarens, another Free
State town whose growth is a local and national success story over the last decade (Marais, 2004), by Hoogendoorn
et al. (2005; 2004). The positive impacts of second home development include; significant renovations on second
home properties provide local employment; a need for hired domestic assistance also creates employment; the local
authority benefits due to rates and taxes; leisure activities pursued by owners during their visits creates demand for
leisure related activities and facilities and the acquisition of foodstuff and household goods can boost the local
economy if leakages can be prevented.
It should be mentioned that the jobs created are mostly temporary, in the case of construction and renovation, or low-
skilled in the case of domestic assistance. Negative impacts of second home development include; the property
mobility of permanent residents is strained due to a demand-based increase in property values; second home
owners acquire properties in formerly ‘white’ areas; wage levels are low due to the fact that they are mostly low or
semi skilled; employment is often irregular and can lead to underdevelopment (Hoogendoorn et al, 2005:135) and the
provision of affordable goods and services to the poorer segment of the community is neglected.
2.6 Supply-side Concepts
The supply side of the tourism industry consists of businesses that supply goods and services to the tourism industry
for consumption by visitors. The tourism industry thus consists of industries and organisations involved in facilitating
travel and tourism activities (Smith, 1995) within the locality under consideration or a specific tourism destination e.g.
a small town. According to the World Travel and Tourism Council (WTTC), the travel and tourism industry consists of
the following economic sectors; transport, accommodation, catering, entertainment, recreation and other tourism
related services (see Figure 2.3 in the following section).
20
A common difficulty regarding the definition of tourism relates to the fact that locals also utilise the services of
enterprises that supply to the tourism industry in a locality, for example; restaurants are visited by locals and visitors
alike (Smith, 1995). A conceptual solution was proposed by the Canadian National Tourism Task Force on Tourism
Data in 1985, the two-tier model was thus developed (Smith, 1995), as illustrated in Figure 2.2 below.
Percentage of revenue Examples:

from tourists:
10-90% Tier 2 Restaurants, taxis, local

attractions
90-100% Tier 1 Airlines, hotels, accommodation
establishments, national parks
Figure 2.2: Two-tier Model – a Supply-side Definition of the Tourism Industry

(Source: Smith, 1995)
Tier 1 represents establishments that would not exist without tourism and Tier 2 are businesses that would continue
to exist if no tourists visited the locality. The location of local businesses will determine whether the businesses is
classified in Tier 1 or Tier 2, for example; a restaurant at a busy tourism attraction will fall into Tier 1 as it would
probably not exist in the absence of the tourism attraction, but a restaurant elsewhere could fall into Tier 2.
According to Rogerson (2005b) tourism enterprises can be more narrowly confined to the following sub-sectors
operating within the bounds of the travel and tourism industry:
• Accommodation (e.g. bed and breakfasts, guesthouses, backpacker hostels, etc.)

• Hospitality and related services (e.g. restuarants, catering, attractions, arts and crafts, etc.)
• Travel Distribution System (e.g. tour operators, tour guides, tourism information offices, tourism
booking offices, etc.)
2.7 The Tourism Economy
The tourism sector is highly distinctive and complex with regard to economic analysis (Rogerson, 2005a). Definitions
regarding the precise boundaries of the tourism economy are unclear. It is thus not easy to isolate spending on
recreation, leisure and tourism products and services from other expenditure in national accounts (Tribe, 2005: 260).
The before-mentioned can be regarded as an international barrier.
21
Tourism is not explicitly reflected in the System of National Accounts, because tourism is a consumption-based
services industry that does not produce a tangible product, but utilises the products and services of other classified
industries (DEAT; SAT, 2006). All the products and services that are produced and consumed in meeting tourism
demand are accounted for in the national economic accounts, but the specific contribution of tourism is not readily
apparent (Tribe, 2005:260).
It should also be mentioned that traditional GDP figures tend to under value the true contribution of recreation, leisure
and tourism to the national and regional economies (Tribe, 2005:260). The reason for the above-mentioned is that
some leisure pursuits do not involve activities bought or sold in the market. For example; informal sports and leisure
cannot be measured by GDP statistics. If a domestic tourist from Gauteng decides to visit his second home on the
Vaal River and takes his boat for a spin on the river, this activity will not be accounted for in the regional Gross
Geographic Product (GGP) statistics.
In South Africa, local definitions and measurements of the tourism impact have been strongly influenced by the
Tourism Satellite Account (TSA), following the international standards set by the World Tourism Organisation (WTO)
(Rogerson, 2005a). The boundaries of the travel and tourism industry comprising of transport, accommodation,
catering, recreation and services for visitors is one of South Africa’s highest priority industries and employers (WTTC,
2002). The above-mentioned boundaries, as reflected in the TSA, estimate the direct impact of tourism on the
economy (Tribe, 2005:260). The indirect contribution of tourism to the economy is thus ignored by the TSA (Tribe,
2005:260).
The measurement of the wider travel and tourism economy should take economic role-players such as food and
beverage suppliers, wholesalers, financial services, manufacturing, constructions etc. into account. The list is
extensive as indicated in Figure 2.3. The potential of creating backward linkages resulting in multipliers in the local
economy through tourism related activities is thus highlighted. The figure indicates the two dimensions of the Travel
and Tourism Economy, namely; the Travel and Tourism (T&T) Industry and the Travel and Tourism Economy.
22
Figure 2.3: The Relation between the T&T Industry and the T&T Economy
(Source: Rogerson based on WTTC, 2005a)
2.8 Responsible Tourism Guidelines
The Responsible Tourism Guidelines, published by the Department of Environmental Affairs and Tourism (DEAT) in
2002 is the most recent addition to the South African tourism development policy environment (Rogerson and Visser,
2004a). Responsible Tourism Development (RTD) provides the opportunity to maximise the socio-economic
potential of the tourism industry, by influencing the planning process of tourism development. RTD provides a more
sustainable approach to tourism development and enhances both the natural and cultural environment. Responsible
Tourism incorporates the ‘triple bottom line’ imperatives of social, economic and environmental sustainability
obtained from sustainable tourism development and combines it with a party or organisation that can be held
accountable. The mentioned guidelines encourage tourism enterprises to grow their businesses, whilst providing
social and economic benefits to local communities and respecting the environment. The impacts of tourism
developments should thus be spread across time and space, while minimising the negative effects of development.
Guidelines for responsible tourism development are indicated in the box below:
23
GUIDELINES FOR RESPONSIBLE TOURISM OPERATORS

Economic Guidelines
• Assess economic impacts before developing tourism
• Maximise local economic benefits by increasing linkages and decreasing leakages
• Ensure that communities are involved in and benefit from tourism
• Assist with local marketing and product development
• Promote equitable business and pay fair prices

Social Guidelines
• Involve communities in planning and decision making
• Assess social impacts of tourism activities
• Respect social and cultural diversity
• Be sensitive to the host culture

Environmental Guidelines
• Reduce environmental impacts when developing tourism
• Use natural resources sustainably
• Maintain biodiversity

Source: DEAT, 2002
Increased benefits to local communities is one of the primary underlying principles of responsible tourism. Three
significant guidelines, in this regard, flagged for private sector engagement in tourism development include
(Rogerson and Visser, 2004a):
• The development of partnerships and joint ventures in which communities have a significant stake in
and, with appropriate capacity building, a substantial role in management.
• The procurement of locally produced goods and services by private sector tourism establishments
wherever quality, quantity and consistency permits.
• The recruitment and employment of staff in an equitable and transparent manner in order to maximise
the proportion of staff employed from the local community.
Detailed and sensitive planning is essential to ensure the development of a responsible tourism sector within a
locality. Responsible and sustainable tourism development will not occur spontaneously; concerted efforts by
government and private sector are thus needed to ensure that responsible tourism principles are incorporated into
policies, strategies and actions aimed at tourism development.
An economic overview regarding the scale and impact of tourism on the South African economy; the Free State
province and the local economic profile vis-à-vis the travel and tourism in the Ngwathe Local Municipality (NLM).
24
Chapter 3: Economic Overview of the Impact of Tourism
The impact of tourism on the South African economy is discussed first, followed by an investigation regarding the impact of
tourism on provincial and local level.
3.1 The Scale and Impact of Tourism on the South African Economy
The tourism industry is one of the fastest growing industries internationally and is currently regarded as the second
fastest growing sector in the South African Economy (DEAT, 2006). Foreign tourism arrivals to South African have
grown exponentially since the country became a democracy in 1994. Foreign arrivals have increased by more than
100%, from 640,000 in 1994 to 7.4 million in 2005 (SAT, 2006). This figure has grown to 8.4 million in 2006 (SAT,
2007). Figure 3.1 indicates the increase in foreign tourist arrivals to South Africa over the last 40 years. From the
1960s to the late 1980s, the tourism industry experienced a stage of stagnation with regard to international arrivals.
Foreign tourism arrivals started to pick up from the 1990s onwards with significant increases in foreign arrivals
recorded since the country’s democratic transition in 1994. A steep incline in curve is thus reflected with regard to
the mentioned period as indicated in the figure below.
Figure 3.1: Foreign Tourism Arrivals to South Africa, 1966 to 2006

(Source: SAT, 2007)
The 2010 World Cup is expected to provide a significant boost to the tourism economy if tourism is planned and
promoted towards maximum effect (DEAT, 2005).
25
It is predicted that 27,000 employment opportunities will be created in the tourism industry during the run-up to the
2010 World Cup (DEAT, 2005). It is thus expected that foreign tourism arrivals will continue to increase in the near
future with 2010 in mind. The tourism industry is positioned to become the largest employer in the economy,
affording a considerable contribution to the GDP over the next decade. “It is widely anticipated that the tourism
sector will become one of the key drivers of economic expansion and employment creation in South and southern
Africa over the next decade” (Kristen and Rogerson, 2002: 29). Tourism also adds value to the GDP because it is an
export earner. Tourism industry is responsible for an important stream of revenue with regards to rates and taxes.
Most tourism taxation revenues arise from income, sales and profit taxes, but specific taxes on tourism, for example
e.g. airport taxes; environmental taxes etc. add value (Tribe, 2005: 265).
Rogerson (2005a) states that for the period 1998-2002, tourism exhibited the strongest growth with regard to positive
employment growth (absolute numbers in formal sector employment) and its contribution to the GDP. The
contribution of the tourism industry to the GDP was approximately 8.15% in 2005. The tourism sector is the highest
absolute contributor to the South African economy with the growth rate of the sector being fourth in the economy
(SAT, 2004).
Domestic tourism is a large contributor to the tourism industry, but is often paid less attention than its more
glamorous international counterpart. Domestic tourism is expected to continue to grow, as historically disadvantaged
individuals become tourists. According to DEAT (2004) the domestic tourism market is comparable with the
international market in terms of size, but not in terms of spending. There are currently only a small proportion of the
domestic population taking trips for holiday purposes, the most revenue generating form of tourism, because most
domestic tourists travel for the purposes of visiting friends and relatives (VFR). The Domestic Tourism Growth
Strategy by DEAT states that the domestic tourism market has untapped value and potential for growth (DEAT,
1994). Domestic tourism has the potential to generate earnings for areas of the country that are less well known by
foreigners (WTTC, 2002) and can play a meaningful role in rural development.
Table 3.1 designates the most recent, annual South African tourism statistics by SAT in 2007 and provides a
comparison between the international and domestic tourism statistics. Domestic visitors undertook approximately
36,2 million trips in 2005, spending approximately R21.1 billion. The number of trips increased to 37.1 million in
2006, but total domestic direct expenditure decreased to R16.5 billion during the same year. It is clear from the table
above that the number of domestic trips exceeds the number of international arrivals.
26
Tourism revenue generated by foreign tourists is, however, significantly more than the revenue generated from
domestic tourists due to the huge VFR domestic market. 69% of domestic tourists travelled for VFR purposes in
2005 (SAT, 2006). Gauteng is the most visited province by foreign tourists and Kwa-Zulu Natal the most popular
destination with regards to domestic visitors.
Table 3.1 Recent South African Tourism Statistics

Year 2005 2006
Total foreign tourist arrivals 7.4 million 8.4 million
Foreign Arrivals
Total foreign direct spending

R 53,4 billion R 50 billion
(EXCL capital expenditure)
Average spend in SA by tourist per day R 1,538 R 680
Average length of stay by foreign visitors 8.4 nights 8.2 nights
Most visited provinces by foreign visitors Gauteng, KwaZulu Natal, Western Cape
Number of domestic trips 36.2 million 37.1 million
Domestic Trips
Total domestic direct expenditure R 21.2 billion R 16.5 billion

Average domestic spend per day R 134 R 107
Average domestic length of stay 4.3 nights 4.1 nights
Most visited provinces by domestic travellers KwaZulu Natal, Gauteng
Tourism’s contribution to the GDP R 122,5 billion R 141, 9 billion (2006E)
impact
(direct and indirect) (7.96% of GDP) (8.3% of GDP)

Total
Total employment in tourism

864 460 947 530 (2006E)
(direct and indirect)
Source: Urban-Econ, 2007 based on 2006 & 2007 SAT data
Tourism is a ‘high immediate priority sector’ and growth platform targeted by the Accelerated and Shared Growth
strategy for South Africa (ASGISA, 2006:6). The South African Government places high priorities on tourism in terms
of socio-economic development with a clear focus on transformation, Black Economic Empowerment (BEE), poverty
alleviation, education and training for Historically Disadvantaged South Africans (HDSAs), etc. (WTTC, 2002). South
Africa can benefit tremendously by sustainable tourism practices and tourism can include previously marginalized
communities. The late 1990s saw tourism being positioned as one of the top five economic sectors in South Africa
and the sectors was identified as having important growth potential (WTTC, 2002). The economic impacts of tourism
expected for South Africa include (WTTC, 2002:26):
• Travel and tourism is a high growth activity which is expected to grow with 4.8% per annum in real
terms between 2002 and 2012.
• The industry is labour intensive creating employment across the full employment spectrum. The
industry is expected to employ approximately 1,500,000 people directly and indirectly by 2012.
27
• The travel and tourism industry is a major exporter and a significant earner of foreign exchange that
has a positive influence on the GDP.
• The industry is a catalyst for the construction and manufacturing industries resulting in increased
capital investment that will in turn contribute to economic growth.
• The industry is a receiver and generator of government funding in the sense that it channels
government expenditure and creates revenue for the government through taxes.
There are, however, certain challenges and barriers that persist with regard to the development of tourism in South
Africa. The main challenges are briefly outlined as stated in a Global Competitiveness project, commissioned by
DEAT and the DTI in 2004.
• Even though the tourism industry is the only priority sector showing positive growth with regard to
employment and GDP, the levels of transformation remain low.
• A lack of skills, throughout, appears to be inhibiting the growth of the industry. Training expenses
leads to an increase in the operating costs of travel and tourism enterprises.
• Access to finance is a major barrier concerning market entry and growth, especially with regard to
tourism SMMEs. It is perceived that an information gap exists between entrepreneurs and financing
houses.
• Data deficiencies are identified in the industry. A lack of data and statistics is perceived to be a
constraint. Data available is not always comparable because it originates from different sources.
Marketing and market knowledge are also underdeveloped.
• At the micro-environment a lack of capacity presents constraints, as well as a lack of industry
organisation. The travel and tourism industry remains highly fragmented in South Africa.
• A lack of tourism specific infrastructure, which includes public transport, public services and tourist
information are key barriers with regard to the future development of the industry.
• Crime and violence remains a major barrier to tourism growth in South Africa. Increasing perceptions
by the international community that South Africa is an ‘unsafe’ destination thus have adverse effects
on the tourism industry (SAT, 2004).
The Free State perspective with regard to current statistics and the potential for future development are outlined
subsequently.
28
3.2 The Free State Perspective
The Free State, like many other provinces, has adopted tourism as a development strategy in the province (Visser
and Kotze, 2006). Currently the Free State only attracts a relatively small proportion of the domestic and
international tourism markets, as reflected in Figure 3.2 (based on SAT 2006 figures). Natural scenery is regarded
as the Free State’s main tourism product, followed by historical and cultural tourism products (FSGDS, 2005). The
Free State is often regarded as en route destination with the transportation function of linking the popular tourism
regions of the Western Cape, Gauteng/ Mpumalanga and Kwa-Zulu Natal. International tourists, thus, do not include
the Free State in their travel itineraries (Visser and Kotze, 2006: 89). According to DEAT; the Free State can
currently lay claim to approximately 5% of the South African tourism market (DEAT, 2006). The figure below
indicates that 8.7% of foreign tourists visited the Free State in 2005 and 5.2% of domestic visitors. According to
research by Visser and Kotze (2006), the Parys area is the forth most important cluster with regard to tourism
enterprises in the Free State after Bloemfontein, Clarens and Bethlehem (Visser and Kotze, 2006: 91).
60.0%
49.4%
50.0%
40.0% 35.9%
% of tourists
30.0% 21.7%
21.6%
20.0%
20.0% 14.9%
9.3% 8.5%
7.3% 8.7% 8.0% 7.6% 7.0% 7.7%
10.0% 5.2%
4.5% 2.6%1.6%
0.0%
ga
e
N
po
t
e
e
ng
es
ap
ap
ap
at
KZ
an
po
te
.W
St
.C
C
.C
au
al
m
E.
ee
N
m
W
Li
G
pu
Fr
M
International Dom estic
Figure 3.2: Provincial Distribution of Tourism Flows (2005)

(Source: SAT, 2006)
The promotion of tourism is regarded as one of the key strategies to ensure economic development in the province,
according to an economic strategy by the Free State Department of Tourism, Environmental and Economic Affairs
(Free State Province, 2003). The potential that tourism holds for the province was recognised a few years ago; the
Free State Development and Planning Framework (FSDPF) recognised in 1998 that tourism has ‘significant’ and
‘substantial’ potential for further economic development in the province (FSDPF, 1998:5). The expansion and
development of the ‘existing adventure-based weekend and day-trip market of Parys and the Vaal River System’ is
identified as an opportunity for development in the Northern Free State (FSGDS, 2005).
29
Parys is identified as a ‘prominent service and economic centre’ in the district with ‘unique nature and environmental
assets’ that has exceptional tourism potential (NLM IDP, 2003). The FSGDS (2005:134) states that the Parys area
should focus on day-visitors and weekend visitors and that the area has a number of established tourism attractions
and sufficient infrastructure to cope with a reasonable number of visitors. Tourism is identified as a growth sector in
the Ngwathe LED strategy (Urban-Econ, 2007) and tourism is regarded as an important driver and the leading
growth sector in the area (Interviews 2 and 3). In conclusion; tourism is identified as a development priority in the
Free State and in the NLM with specific reference to Parys in order to ensure economic growth and an increased
contribution of tourism to the local GGP.
3.3 Local Economic Profile of the Ngwathe Local Municipality
The town of Parys falls within the Ngwathe Local Municipality (NLM) 1 that was formally known as the Parys
Municipality. The figures outlined in this section give an indication of the economic activities, economic growth, sector
employment and unemployment with regard to the NLM 2 .
3.3.1 Economic Profile
Figure 3.3 illustrates the economic profile of the Ngwathe Municipal area in time series format constant 2002 prices.
10.5%
General government services 12.7%
14.8%
Community, social and other personal services 13.0%
11.1%
Finance and business services 13.7%
6.2%
Transport & communication 4.8%
15.7%
Wholesale & retail trade; catering and accommodation 14.9%
1.8%
Construction 2.7%
3.3%
Electricity & w ater 1.6%
25.7%
Manuf acturing 28.9%
1.6%
Mining 3.0%
9.3%
Agriculture, f orestry and fishing 4.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
1995 2000 2005
Figure 3.3: Economic Profile of the Ngwathe Local Municipality, 1995 to 2005
(Source: Calculations based on Quantec Research Data, 2007)
1 Sub-place economic data for Parys is not available from the source (Quantec research data), an economic profile of the local municipality
was thus compiled.
2 Note that 2006 data was not available from the source when the graphs in this section were compiled in 2007. The 2005 data was thus the
most recent at the time.
30
The following economic characteristics of NLM are discussed vis-à-vis Figure 3.3:
• Evident from Figure 3.3 is the dominance of the manufacturing industry in the NLM over the last few
years. It is, however, clear that this sector has experienced a decrease in its economic contribution to
the economic value added (GGP) over the forecast period. The sector contributed approximately
26.7% to the local economy in 2005.
• The trade sector, which includes wholesale and retail trade, as well as catering and accommodation,
is the second largest contributor to the Gross Geographic Product (GGP). This sector contributed
15.7% to the local economy in 2005. A slight increase was recorded in the trade sector between 1995
and 2005.
• Community, social and other services was the third largest contributor to the local economy,
contributing 14.8% in 2005.
• Agriculture and mining do not contribute significantly to the GGP. The agricultural sectors contributed
9.3% to the local economy in 2005 and the mining sector contributed only 1.6%.
3.3.2 Economic Growth
With regard to the Tourism Satellite Account, the Travel and Tourism Industry encompasses transport,
accommodation, catering, recreation and other services. The figures presented in this section includes these aspects
according to the statistics available, in order to give an indication of the status quo of the Travel and Tourism industry
in the NLM. Figure 3.4 below gives an indication of the growth performance vis-à-vis the Catering and
Accommodation Sector and the Total GDP.
12.0%
10.0% 10.2% 9.9%

8.0%
6.0% 4.7%
5.7%
4.0%
2.6%
2.0% 2.1%
0.0%
1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004-
-2.0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
-4.0%
-5.3%
-6.0%
-6.7%
-8.0%
Total GGP Catering & accom m odation Linear (Total GGP)
Figure 3.4: Catering and Accommodation Growth Performance, 1995-2005 (Constant 2000 Prices).
31
It is clear from Figure 3.4 that the growth performance of the aggregate GGP in the region has decreased between
1995 and 2005. The Catering and Accommodation Sector has, on the other hand, recorded an aggregate increase
for the same period. This sector recorded a growth rate of 5.7% for the period 2004/2005.
Table 3.2 indicates the economic growth of all sectors in the Ngwathe Local Municipality between 1995 and 2005.
The sectors that have a direct impact on the tourism economy have been highlighted. It is clear that the growth rate
of the aggregate GGP declined over the period 1995 to 2005 (as also reflected in the figure above). The growth
performance of the trade sector (which includes wholesale and retail trade, as well as catering and accommodation)
has declined during the period 2000 to 2005, but the catering and accommodation sector, when viewed in isolation
has recorded an aggregate increase, as reflected in Figure 3.4. The transport and communication sector recorded
growth of 4.5% for the period 1995 to 2000 and a slightly lower proportion of 4.0% for the following five years. The
finance and business services recorded a decline of –1.6% for the period 1995 to 2000 and a slightly higher growth
of 0.7% for the following five years. Community, social and other services recorded positive growth of 3.5% for the
period 1995 to 2000 and 2.5% for the period 2000 to 2005.
Table 3.2: Sectoral Growth in Ngwathe Local Municipality (NLM)

Industry 1995-2000 2000-2005 1995-2005
Total GGP 2.8% 0.5% 1.7%
Agriculture, forestry and fishing 23.2% -3.5% 9.0%
Mining -9.9% 0.9% -4.7%
Manufacturing 1.6% -0.6% 0.5%
Electricity & water 10.6% 8.3% 9.4%
Construction -4.6% -0.3% -2.5%
Wholesale & retail trade; catering and accommodation 2.9% 1.4% 2.1%
Transport & communication 4.5% 4.0% 4.3%
Finance and business services -1.6% 0.7% -0.4%
Community, social and other personal services 3.5% 2.5% 3.0%
General government services -0.5% 0.0% -0.3%
Source: Calculations based on Quantec Research Data, 2007
It is clear that the local economy experienced an aggregate decline during the period 2000 to 2005. The sectors,
with regard to the tourism economy, that experienced the strongest growth between 1995 and 2005 was the
transport and communication sector with 4.3%, the community, social and other services with 3.0% and the catering
and accommodation sector with 2.6%. It is thus concluded that the tourism economy reflected a marginal economic
growth in the area for the period investigated. The next section deals with sectoral employment.
32
3.3.3 Sectoral Employment
The aim of this section is to present the employment profile of the NLM from a formal employment perspective.
Figure 3.5 provides an indication of the proportional contribution of each sector towards aggregate employment
levels.
16.6%
General government services 13.3%
20.0%
Community, social and other personal services
17.7%
9.9%
Finance and business services 3.7%
1.8%
Transport & communication 1.5%
Wholesale & retail trade; catering and accommodation 15.4%
10.1%
4.9%
Construction 5.9%
0.5%
Electricity & w ater
0.4%
Manufacturing 10.1%
10.4%
0.7%
Mining
3.5%
20.1%
Agriculture, forestry and fishing
33.5%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
1995 2000 2005
Figure 3.5: Ngwathe Local Municipality Employment Levels

The following conclusions are drawn regarding employment levels in the NLM as indicated in Figure 3.5:
• It is clear from the figure above that the primary sector, which includes agriculture, is the major
employer in the area. It should be mentioned that agriculture is the major primary sector in the Parys
area since forestry and fishing activities do not occur in the region.
• The agriculture sector did however shed 4,698 jobs in the area between 1995 and 2005.
• The community, social and personal service sector is the second largest employer in the Ngwathe
area, followed by the government service sector. The community, social and personal service sector
contributed 20.0% towards formal employment in 2005 and the government services sector
contributed 16.6% towards formal employment in the area during the same year.
• The trade sector, which includes catering and accommodation, contributed 15.4% towards formal
employment in 2001.
33
• The trade sector (including catering and accommodation) and the finance and business sector were
the only two sectors that recorded a growth in employment in the area over the last ten years. The
trade sector was responsible for the creation of 397 new jobs between 1995 and 2005 and the finance
and business sector created 854 jobs during the same period.
A comparative analysis regarding unemployment rates in the Free State Province, the NLM and the town of Parys is
discussed below and the basic figures are outlined in the Table 3.3.
Table 3.3: Unemployment Figures (2001)
Area # Employed # Unemployed PEA Unemployment rate
Free State Province 590,660 446,268 1,036,928 43.0%

Ngwathe Local Municipality 22,099 19,743 41,842 47.2%
Parys 2,542 1,007 3,549 28.4%
Source: Calculations based on Quantec Research Data, 2007
The NLM had a population of 118,768 in 2001 and the town of Parys had a population of 10,701 3 . In 2001, 41,842
persons in the NLM had the Potential of being Economically Active (PEA). This figure includes individuals that are
aged between 15 and 65 who are either employed or unemployed. The unemployment rate was thus calculated
accordingly. In 2001, 47.2% of the NLM was unemployed and 28.4% of the PEA population in Parys. It is thus clear
that the unemployment rate within Parys is much lower than that of the local municipality and the province, which had
an unemployment rate of 43.0% in 2001.
3.3.4 Concluding Remarks
• The manufacturing sector contributes most to the GGP of the Ngwathe Municipal area, followed by the
trade sector; the community, social and personal service sector, the government service sector and
the finance and business service sector. It is thus clear that the trade sector, which includes catering
and accommodation, together with the various services sectors contributes significantly to the GGP.
• The above-mentioned is indicative of the important role that the Travel and Tourism Industry plays in
the local economy (based on the Tourism Satelite Account definitions).
3
Note that 2001 National Census figures were used (available from Quantec Research Data). Since no population census was conducted
in 2006, the 2001 figures are the most recent figures available regarding population and unemployment.
34
• Transportation, which is also part of the Travel and Tourism Industry made a small contribution to the
local economy during the period investigated and is thus indentified as a sector with development
potential with regard to the Travel and Tourism Industry, due to its strong economic growth (as
reflected in Table 3.2).
• The catering and accommodation sector and the community, social and other services sectors are the
only sectors investigated with regard to the TSA that have reflected positive economic growth over the
last ten years. The trade sector and the community, social and other service sector did also reflect a
growth in formal employment.
• The unemployment rate of Parys is significantly lower than the unemployment rate of the local
municipality and the province, based on 2001 data.
• It is also clear from the analysis that that primary sectors, such as argiculture, are declining in Parys.
This phenonmenon, with regard to small towns, is discussed in detail in Chapter 2.
A supply-side analysis of the tourism products and services in and around Parys follows in the subsequent section.
35
Chapter 4: Situation Analysis Regarding the Tourism Industry of Parys
This section of the study investigates the status quo of the tourism industry in Parys. The first part of this section
deals with the spatial considerations such as the location of Parys, its accessibility etc. The second part of this
section contains a supply analysis of tourism products, facilities and services, as well as tourism supporting products
and services in Parys and its immediate surroundings.
4.1 Spatial Analysis
4.1.1 Considerations Regarding Location
The location of Parys is one of its key assets with regard to the development of tourism in the area. Three defining
features, prominent to the location of Parys, have been identified:
Its proximity to Gauteng, especially Johannesburg (approximately an hour’s drive away)

Its location on the banks of the Vaal River
Its proximity to the Vredefort Dome
The significance of these defining features is briefly outlined below.
Parys’s proximity to Gauteng has contributes to its popularity as a weekend destination. It is clear from the
promotional materials reviewed that Parys is marketed as such. The number of accommodation establishments in
the Parys area offering inter alia; wedding and conference facilities and services adds to the weekend destination
appeal of the Parys area, as do the number of adventure and leisure activities available. The before-mentioned
tourism products and services mentioned will be discussed in more detail as part of the Supply Analysis presented in
the subsequent section. Figure 4.1 indicates the location of Parys on the periphery or ‘urban fringe’ of Gauteng. The
distance between the inner and the outer radius is 29 km. Figure 4.1 also outlines the location of Parys in relation to
the Free State, Gauteng, North West, Limpopo and Mpumalanga Provinces. It is clear that Parys falls on the border
between the Free State and the North West Provinces.
36
Figure 4.1: Location of Parys on the Urban Fringe

(Source: Map generated by Urban-Econ, 2007)
Most of the establishments in Parys offering adventure and leisure activities are situated along the Vaal River. The
water resource and nature of the river, such as the width of the river, ensures water activities such as river rafting,
fishing, river tubing, etc. It should be mentioned that an estimated 60% of accommodation establishments which
includes adventure activities, conference and team building facilities etc. in the area, as advertised as tourism
SMMEs in the locality of Parys, are situated on the northern side of the Vaal River in the North West Province. This
is a good example of tourism clustering and collective marketing initiatives that enhance the attractiveness of tourism
establishments towards marketing various attractions in an area as a single destination or ‘place’ (Rogerson, 2004a).
The spatial distribution of SMMEs as mentioned above should be kept in consideration with regard to supply analysis
provided in this chapter.
4.1.2 Accessibility
Parys is very accessible from Gauteng via the N1 and R59. The accessibility of Parys with respect to various access
routes is depicted in Figure 4.2. It was observed that the 20km stretch of the R59 from the N1 to Parys is being
upgraded. Construction of double lanes in certain areas along the road is underway.
37
The R59 connects Parys with Sasolburg (37km in distance), Potchefstroom is 48km from Parys via the R53 and
Parys is connected with Kroonstad via the R59 (through Vredefort) and the R721. Parys has an airfield, which
enhances its accessibility. Figure 4.2 provides an indication of spatial orientation and accessibility of Parys.
Potchstroom – R53
JHB
R59
Parys-town area
R59
Vredefort
Kroonstad – R721
Figure 4.2: Spatial Orientation and Accessibility of Parys

(Source: Google Earth, 2007)
4.1.3 Role of Parys vis-à-vis the District
According to the Integrated Development Plan (IDP) of the NLM, Parys is an important service centre to the following
towns within the district; Vredefort, Heilbron, Koppies and Edenville. The provision of services specifically includes
education, health and professional services to the district. The manufacturing and commercial sectors are prominent
in Parys according to the IDP, confirming the implications of the economic profile as analysed in the previous
chapter. It was concluded in the previous section that the manufacturing and trade sectors, with specific reference to
the tourism industry’s contribution, contributed most to the GGP of the Parys area. Parys also has an important role
with regard to the distribution of products and services to other towns in the area and within the North West Province.
38
4.1.4 Urban Characteristics
Parys is one of the main towns in the area and the largest town in the local municipality. Parys is largely urbanised
according to the IDP, 90.1% of the local population resides within the town area. The mentioned urban character of
Parys stands in contrast to the neighbouring town of Vredefort that is principally dependent on the agricultural sector
and thus has a larger rural population. According to the National Census statistics of 1996 and 2001, the population
of the Parys town area was 8,226 and 10,701 respectively (Quantec Research Data). The aggregate annual
population growth rate between 1996 and 2001 was 5.4%. This high rate could be either due to an extremely high
population growth or an increase in urbanisation.
The street layout of Parys reflects a grid pattern. The R59 runs through Parys via Loop Str., Water Str. and Breë Str.
from Sasolburg to Vredefort (Northeast to Southwest), see Figure 4.3. Art galleries, special interest and coffee shops
are mainly clustered along the mentioned streets in close proximity to the CBD, but other tourism SMMEs such as
guesthouses and restaurants are scattered throughout the town.
Figure 4.3: Town Layout of Parys

(Source: Map generated by Urban-Econ, 2007)
39
4.1.5 Considerations vis-à-vis the Vredefort Dome
The Vredefort Dome World Heritage Site (VDWHS) spans an area of approximately 190km in diameter. Parys and
Vredefort (16km from Parys) lie within the crater. The conservation area falls within Free State and North West
Provinces on either side of the Vaal River. It should also be mentioned that the conservation area does not fall with
in the municipal demarcation of the Ngwathe Local Municipality. Parys falls outside the buffer zone of the World
Heritage Site and is not included in the conservation area (see Annexure I and II). Parys will thus not be affected by
the regulations and restrictions imposed by UNESCO with regard to the World Heritage Site. Parys is accordingly
regarded as a ‘gateway’ to the VDWHS as discussed in the subsequent chapter. Various accommodation and
adventure establishments are situated in and around the Dome, a few kilometres away from Parys. The Dome
Bergland presents a spectacular landscape with impressive ridges and valleys (Reimold, 2007[online]). The hills and
gorges of the Dome ensure an ideal location for a variety of extreme sports and adventure activities such as
abseiling, adventure racing, mountain biking, quad biking, horse riding, etc.
The Dome is preserved by the Dome Bergland Conservancy (DBC) and apart from its adventure tourism potential,
has significance due to its geological, archaeological, historic and cultural value, as well as its biodiversity (Reimold,
2007[online]). The Dome area is especially bio-diverse as a result of its unique origin which resulted in the creation
of a number of interesting ecosystems (Venter, 2007). The natural resources of the area include (DBC, 2007[online];
Venter, 2007):
• The Dome is one of the best birding areas in South Africa with more than 400 bird species and over 70
butterfly species
• At least 99 plant species have been identified in the Dome area
• An estimated 57 species of small and larger mammals have been identified e.g. baboons, wild cats,
jackals, duikers, steenbucks, kudus, leopards etc.
• A Yellow Fish Conservancy operated and managed as a private game reserve is also situated in the
dome.
It is clear that the VDWHS lends itself to the development of nature-based tourism activities such as hiking, bird
watching, educational tours, etc. based on the available natural resources, as well as adventure tourism activities.
Sites of geological, archaeological and cultural heritage value also exist, which hold development potential. The
VDWHS presents opportunities for education, research and economic development (Reimold, 2007[online]).
40
A supply analysis with regard to tourism products and services with Parys and its surrounds are presented in the
succeeding section of this chapter.
4.2 Tourism Supply Analysis
The following sources were utilised in order to compile a database of SMMEs and analyse the supply of tourism
products and services in and around Parys:
Information was sourced from the two tourism marketing and information offices in Parys in the form of
promotional material. The respective websites of these two offices were also visited (see list of sources).
The website of the Fezile Dabi (Northern Free State) Tourism Board/ Department was utilised.
Information was also sourced from the website of the Free State Tourism Board
It should be mentioned that no one website or promotional brochure can be regarded as comprehensive with regard
to the scope of tourism products and services available in the area. The provision of tourism related information is
thus highly fragmented; a lack of co-ordination between the marketing efforts of the privately run, local tourism
information offices and the efforts of the district and the province is thus evident. The tourism information office
endorsed by the Parys Development Forum (PDF) provided the most information of all sources utilised. The before-
mentioned however points out a weakness with regard to the distribution of tourism information about Parys; the
most useful and comprehensive information regarding tourism products and services is thus found in Parys. The
observed marketing efforts to draw visitors from outside the area, not familiar with Parys, can thus be regarded as
insufficient and inadequate. It should be realised that the supply analysis is indicative of the specific point in time
when the information was sourced and that the tourism system is dynamic with regard to the supply of tourism
SMMEs.
A database of all tourism related and supporting products and services in the area was complied. This database is
not an exhaustive compilation of all tourism SMMEs in the area. It is unclear how many of these SMMEs are still in
operation and how many SMMEs have been established since the compilation of the database. Tourism businesses
not advertised in the mentioned promotional materials have also not been taken into account. It does, however, fall
outside the scope and purpose of this study to determine the exact number of tourism SMMEs in the area or to
compile an accurate and up-to-date database.
41
The supply analysis aimed at providing an indication of the range and type of tourism activities and facilities currently
available in the area, as well as to provide a base from which a representative sample for the focused primary
research could be drawn. The supply analysis with regard to specific tourism facilities, as discussed below, is
informed by the above-mentioned database based on the sources mentioned, observations by the researcher and
other relevant, secondary information gathered.
4.2.1 Tourism SMMEs
The tourism SMMEs are discussed under the following sub-sectors as suggested by Rogerson (2005b), with regard
to supply in the area of Parys:
Accommodation establishments
Hospitality and related services
Travel Distribution System
Figure 4.4 provides an indication of the tourism product offering as determined by the supply analysis. It is clear the
largest proportion of tourism SMMEs are accommodation establishments, followed by adventure and/ leisure activity
providers; arts, crafts and décor shops, antique or furniture shops and lastly food and beverage establishments. The
characteristics of these SMMEs are discussed subsequently under the sub-sectors indicated above.
Serviced Accommodation
8.6%
Adventure and/ Leisure
9.3%
Activity Providers
Arts, Crafts and Décor
43.6%
10.7% shops
Self‐catering
Accommodation
12.9% Antique or Fur niture
shops
15.0% Food and Beve rage

Establishments
Figure 4.4: Tourism Product Offering in the Area

(Source: Compiled by Author)
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Accommodation Establishments
It was determined that there are 61 accommodation establishments in and around Parys 4 . It is clear that
accommodation establishments constitute the largest proportion of tourism SMMEs in the area. Of the before-
mentioned establishments, 25 are situated in the town area and 36 are located outside Parys, most of these
establishments are located along the Vaal River or within the VDWHS. It should, however, be realised that a large
proportion of accommodation establishments and adventure activity operators in the Parys area are located on the
Northern embankment of the Vaal River and thus fall in the North West Province, even though these establishments
form part of the tourism system of Parys, because Parys is the closest town and service centre. The estimated ratio
is 40:60 with regard to establishments in the Free State side and North West side of the Vaal River respectively
(Interview 3). Nine of the above-mentioned accommodation establishments are adventure or leisure tourism
operators e.g. SMMEs offering outdoor adventure or teambuilding activities, private nature reserves, fly-fishing
lodges, etc. which includes accommodation in their product offering. Accommodation establishments can be
regarded as Tier 1 establishments concerning the supply-side definition as these SMMEs would not exist in the
absence of tourists to the area. Table 4.1 provides an indication of the characteristics of accommodation
establishments in the area.
Table 4.1 Characteristics of Accommodation Establishments in the Area
Type of accommodation establishment % of establishments
Accommodation establishments situated in Parys 40.9%
Accommodation establishments situated outside Parys, some on the North West side of the Vaal River 59.1%
Accommodation establishments catering for weddings 14.8%
Accommodation establishments catering for conferences 26.2%
Accommodation establishments providing leisure‐based activities 32.8%
Accommodation establishments providing self‐catering facilities 21.3%
Accommodation establishments which have TGCSA star grading 13.1%
Accommodation establishments which have their own websites 40.0%
Source: Compiled by Author
According to the promotional material provided or gathered via the sources indicated at the beginning of this section,
14.8% of the accommodation establishments indicated that they cater for weddings and 26.2% indicated that they
cater for conferences. Various leisure and adventure activities are included in the product offering of accommodation
establishments as reflected in the promotional materials, even if the establishments do not specialise in these
activities as their core facilities.
4 55 accommodation establishments recorded in the database of the Parys Info Office of the Parys Development Forum (Interview 7)
43
For example; an accommodation establishment specialising in conferences and weddings may indicate that
activities, such as hiking, fishing, horse riding, river rafting, etc. can be enjoyed at the establishment or can be
arranged for on request. Of establishments surveyed 32.8% indicated that they offer leisure and/ adventure based
activities and 21.3% indicated that they have self-catering facilities. A relatively small proportion of establishments
(13.1%) have been graded by the Tourism Grading Council of South Africa (TGCSA). It is clear from the promotional
material and websites investigated that approximately 40% of accommodation establishments have their own
websites, in addition to advertising on the websites of the tourism promotion boards or offices as indicated at the
beginning of this section. Included in the supply of accommodation are four holiday resorts and four private nature
reserves that provide accommodation.
A number of self-catering chalets (15) are advertised in the area. Bookings can be made through a central booking
service and the contact details of owners are not readily available. These chalets are stand-alone cottages, usually
old houses or farmhouses that have been renovated and made available for weekend rentals and are not considered
as businesses in their own right. These facilities are thus not included in the research sample, which was compiled
with the aim of specifically targeting tourism SMMEs. Camping sites and caravan parks were also not included in the
research sample. Note that the aspects mentioned above with regard to proportions provided have been derived
from the promotional material and websites reviewed. The proportions are thus based on the quantity of
establishments as construed from the promotional materials reviewed.
In many cases information available with regard to tourism SMMEs was incomplete and skeletal; in other cases more
detailed information on specific establishments was available. More information was available on establishments
who spend more on the marketing and promotion of their businesses. The proportions discussed above provide an
indication of broad trends and not of absolute numbers or proportions. In conclusion, trends and specific features
vis-à-vis accommodation establishments in and around Parys follows:
Approximately 40% of accommodation establishments are located in town and 60% around Parys, along the
Vaal River and within the Dome. It is clear that leisure and/ adventure activities is a prominent niche market
in the area, based on the location of the establishments and the deduction that approximately one third of the
establishments offer leisure and/ adventure activities.
Weddings and conferences are the second most prominent niche market in the area vis-à-vis accommodation
establishments. This prevalence of this market is related to the weekend destination character of Parys, as
portrayed in several of the promotional materials and websites reviewed.
44
Many of the accommodation establishments provide self-catering facilities and a relatively small number of
establishments have a star grading by the TGCSA.
Hospitality and Related Services
• Adventure and /Leisure activity Providers
A large share of the tourism product offering in the area comprises of adventure and/ leisure activities. There are
approximately 21 SMMEs specialising in adventure or leisure. An adventure or leisure related excursion is often an
attraction in itself and is thus a strong pull factor in the area e.g. visitors will visit the area over a weekend in order to
embark on a river-rafting trip as the main purpose of visit. Nine of these SMMEs provide accommodation, as
mentioned in the previous section on accommodation. All of the businesses are situated outside Parys along the
Vaal River with specific reference to water-based activities e.g. river-rafting, river cruises, river tubing, fishing etc.
Other activities e.g. abseiling, mountain biking, hiking, etc. tend to be situated in the hills, valleys and gorges of the
dome structure. Teambuilding activities form part of this group of tourism SMMEs.
• Food and Beverage Establishments
A total of 23 food and beverage establishments, which includes restaurants and coffee shops, were recorded. The
vast majority (approximately 90%) of these establishments are located in town, excluding accommodation
establishments offering meals, such as dinner and breakfast. Five food and beverage franchises were counted, such
as Kentucky Fried Chicken, Wimpy, etc. in addition to the establishments mentioned. These establishments are
however not regarded as tourism SMMEs for the purposes of this study. Visitors and locals alike utilise the services
of food and beverage outlets. These establishments can thus be regarded as Tier 2 establishments with regard to
supply-side definitions.
Eight of the mentioned food and beverage establishments are located within the tourism precinct of Breë, Water and
Loop Streets and these establishments were considered for the research sample, because it is more likely that these
SMMEs attract more visitors than the other establishments mentioned and can thus be regarded at Tier 1 tourism
establishments.
45
• Antique or Furniture Shops
The majority of antique or furniture shops (approximately 70%) are situated in the tourism precinct of Breë, Water
and Loop Streets. Thirteen antique or furniture shops were identified in Parys. Parys has become known for its
antiques and arts, together with the variety of outdoor activities on offer in recent years. These two features can thus
be identified as ‘unique selling features’ (USFs) or drawing cards to the area of Parys. Antique and furniture shops
target mainly tourists or visitors and are thus classified as tourism SMMEs (Tier 1).
• Arts, Crafts and Décor shops
Eighteen SMMEs categorised as either art, craft or décor shops were identified in Parys. These shops consist
mainly of art galleries, but décor and craft shops have also been included in this category. The majority of these
SMMEs are situated along Parys’ main road, the R59, targeting mainly tourists or visitors. A number of artists also
reside in Parys, according to one of the tourism websites reviewed, there are 10 artists living in Parys. It is, however,
unclear how many of these artist still live and work in Parys.
Travel Distribution System
Parys has a tourism information office run by the Parys Development Forum and a tourism booking office that is
privately owned and operated independently from the tourism information office.
4.2.2 Speciality shops
Twenty-three speciality shops were identified. Types of business in this category include; salons, beauty clinics,
bakeries, bookshops, couture businesses, outdoor shops, tuisnywerhede, jeweller shops, etc. Some of these
businesses are located along the main road or city centre of the town. These SMMEs cannot be classified as
tourism SMMEs per se, because the predominantly local client base of these enterprises. A certain proportion of
their customers will, however, be tourists or visitors. Two fashion designers live and work in Parys.
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4.2.3 Other Tourism Supporting Products and Services
Parys is a service centre to the district as discussed before, the following services providers promote themselves in
tourism promotional material and are highlighted as relevant to the study:
There are an estimated 25 estate agents in Parys (Interview 7)

Seven old age homes were identified in Parys
Thirteen businesses provide homeowner services
Seventeen businesses sell hardware and appliances aimed at homeowners
Twelve businesses provide financial, legal and consulting services e.g. banking, attorneys, accountants
etc.
Seven businesses provide vehicle services
The above-mentioned section is included in order to indicate that services exist to support SMMEs in the area, as
well as opportunities for business linkages between tourism SMMEs and other SMMEs in order to maximise the
impact of tourism on the local economy.
4.2.4 Attractions in and around Parys
In addition to the historical attractions discussed in the previous chapter the following attractions are highlighted
(Holtzhauzen, 2007[online]).
• Parys has two golf courses. One of these golf courses in the Vaal de Grace is a Nick Price signature
Golf Estate and the other the Parys Golf and Country Estate. Both estates are typical golf estate
developments with up-market residential developments and recreational facilities.
• The Vredefort Dome and Golf Island in Parys are classified as ‘must-see’ attractions according to the
promotional material reviewed.
• Adventure and leisure activities offered are often attractions or draw cards in themselves, as are
conferences and weddings.
• The town itself is an attraction. Day-visitors come to spend a day in Parys visiting art, antique and
coffee shops, as well as to walk around the tourism precinct i.e.; along Loop, Water and Breë Streets.
The town, with specific reference to the tourism precinct exerts a ‘sense of place’ with its unique shops,
historical and interesting buildings and plattelandse atmosphere.
47
• Historical attractions include the Anglican Church (1915), the Dutch Reformed Church (1899), the
Suspension Bridge (1919), the Parys Museum, the War Memorial in front of the town hall, the
Ossewatrek monument, Liebenbergkoppie outside the town which is associated with Voortrekker
battles.
• A number of events are another visitor pull force to Parys, thus supporting the tourism industry. Events
include:
The Dome Adventure Festival is held annually in October endorsing adventure and extreme sport
activities
Wings and Wheels/ ‘Wieke en Wiele’ is an annual motor and aircraft event held in April. Plans to
include an air show are being considered by the organisers.
The Vaal Meander Wine Route (July/ August annually) will be extended to include the Parys and
Vredefort Dome areas. According to a newsletter by the Parys Development Forum (April 2007) the
popularity of this event is growing every year. Visitor numbers reportedly tripled between 2004 and
2006.
Other events include; motorbike rallies, livestock auctions (every four months), horse shows (every
four months) and a crater cruise
4.2.5 Concluding Remarks
It is clear from the promotional materials reviewed that Parys in being marketed as a weekend destination. Its unique
selling features are arts, antiques and adventure. Wedding, conferences and teambuilding is another important
niche market. Parys benefits from a pristine location along the Vaal River within the vicinity of the Vredefort Dome as
an added advantage with regard to location. Parys is easily accessible via established road networks. It is slightly
more than an hour’s drive, from Johannesburg, but less than an hour from other large towns such as Potchstroom,
Sasolburg and Kroonstad. It is clear that tourism plays an important role in the local economy based on the number
and the variety of tourism SMMEs identified. The natural surroundings and countryside character of Parys are
defining features with regard to the image of the area.
Historical considerations regarding the development of Parys are investigated in the subsequent chapter.
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Chapter 5: The Historial Development of Parys
A historical overview of the development of Parys is provided in this chapter. General historical details are included
in this chapter with a special emphasis on the development of Parys as a recreational resort and recent tourism
developments in the area are also discussed.
5.1 The Origin and Early Development of Parys
During 1873 the Dutch Reformed Church started to investigate the possibilities of establishing another congregation
north of the Renoster River and south of the Vaal River. Towns were far apart during the time and church goers had
to travel far distances to attend services. Three gentlemen from Heilbron approached the owners of the farm
Klipspruit, on the banks of the Vaal, with the purpose of laying out the farm as a township (Minnaar et al., 1966).
One of the gentlemen was a land surveyor. The extent of the church’s influence in this action is, however, unclear.
The owners of the farm could, however, not be persuaded to hand over their property. The farm Vischgat where
Vredefort was established later was accordingly approached with the same request. The owners of Klipspruit quickly
had a change of heart once they realised that a golden opportunity nearly slipped through their fingers (Minnaar et
al., 1966). The town Parys was laid out on Klipspruit early in 1876; the first sale of plots occurred during the same
year at a price of £25 each (Minnaar et al., 1966). An interesting observation was made by Van Zyl (1968) regarding
the origin of Parys; he asserts that Parys can be classified along with other towns such as Harrismith, Bloemhof, and
Smithfield, which were founded due to the private initiatives of individuals or small groups of people (quoted by Van
Eeden, 1976:10). Van Zyl (1968) conducted a central place study regarding the urban development of northern Free
State towns; he suggests that the mentioned towns owe their development to the ondernemingsgees of individuals or
small groups who had their own farms or had bought farms for the specific purpose of dividing them into plots for the
establishment of towns. Profit-seeking is thus the main motivating force behind these actions. It is proposed that the
name of Parys was bestowed on the town by a German land surveyor, a certain Mr. Schilbach, who served in the
Franco-Prussian war and who had taken part in the Siege of Paris (Minnaar et al., 1966). He is said to have likened
the Vaal to the Seine due to apparent geographical similarities between the two settlements (Minnaar et al., 1966).
No great progress was made with regard to development in the town during the first years of its existence (Minnaar
et al., 1966). In the early years Parys had a struggling agriculture economy (Interview 5). Agricultural products
produced in Parys included mainly grain inter alia; mielies, alfalfa and tobacco with fruit and vegetables being
cultivated on the large agricultural plots (landbouerwe) in town (Interview 5).
49
No market existed for local produce and roads were in a poor condition, South Africa was going through a period of
depression at the same time (Minnaar et al., 1966). The first sign of progress was the appointment of a special
Justice of Peace to Parys in 1882 (Minnaar et al., 1966). Table 5.1 indicates a time-line vis-à-vis development in
Parys.
Table 5.1: The Historical Development of Parys
Date Historical Event
1874 During a meeting of the presbytery or ring of the Dutch Reformed Church it is decided that another congregation,
between the Renoster and Vaal Rivers, be formed.
1876 The town Parys is established and laid out on the farm Klipspruit. The first plots are sold during the same year.
1881 The first government school is established with 26 pupils on the register. The school is closed and reopened in
1883.
1880 A request is made to the Volksraad to recognise Parys as a town. 300 plots have been sold to date and Parys has 20
households.
1882 The first sign of progress in made in the town, when in 1882 a special Justice of Peace is appointed to reside in
Parys.
1883 A Village Management Board is appointed to fulfil the municipal function to the town.
1886 Gold is discovered on the goldfields of the Witwatersrand bringing in its wake better times for Parys
1887 The Village Management Board is replaced by a municipality (Town Council).
1903 Parys becomes the seat of Magistracy and thus main town in the region.
1905 A railway line to Parys is completed.
1910 A weir, built in the Vaal River, is completed ensuring water via irrigation canals to plots in town. A dam at Rooibult
is built subsequently.
1911 The first advertisement appears in the Bloemfontein Post with the aim of drawing visitors to Parys
1912 An electrical lighting scheme for the town is installed and the system opened.
1915 A bridge over the Vaal River is built, connecting Parys with the road to Potchefstroom
1922 The council approached the Publicity Department of the South African Railways (SAR) to assist them advertising
Parys as a leisure and recreational resort.
1925 Parys receives 5,000 visitors over the Festive Season, who spends an approximate R30,000 in the town over this
time.
1945 A policy is drafted towards stimulating industrial development in Parys. The policy is accepted by the Industrial
Development and Publicity Committee.
1951 The establishment of Sasolburg and ISCOR at Vanderbijl Park contributes the industrial development of Parys.
1960s Various manufacturing and light industries are established, during the decade, contributing to economic growth
and development in Parys.
1980s The N1 highway is built from Johannesburg through Kroonstad to Bloemfontein, bypassing Parys and Vredefort.
2000 (circa) Artists start establishing themselves in Parys
2004 The Parys Development Forum is established.
2005 The Vredefort Dome is declared as an UNESCO World Heritage Site
Source: Compiled by Author based on historical data and interviews

The beginning of municipal life commenced in 1883 with the appointment of a Village Management Board (Minnaar
et al., 1966). The Village Management Board was later replaced by a municipality in 1887. The first Dutch Reformed
church was established in 1984 (Van Eeden, 1976).
50
The discovery of gold on the Witwatersrand sparked development in the town due to its fortunate position near to one
of the main roads to the north via Bloemfontein, 70 miles from the City of Gold (Minnaar et al., 1966). As a result:
“Many travellers passed backward and forward, and their spendings improved things very much in the struggling little
dorp” (Horn in Minnaar et al., 1966:13). Markets for agricultural produce thus emerged, stimulating trade between
Parys and the Transvaal (Interview 5).
The Anglo-Boer War (1899-1902), however, brought development to a standstill and caused destruction to the town.
The town was the scene of guerrilla warfare with snipers exploiting the natural advantages of the area; as a result
most of the buildings in the town were destroyed (Minnaar et al., 1966). Drastic changes and developments occurred
after the war owing to concerted efforts by the leaders of the town and the town council (Van Eeden, 1966). Since
the turn of the century the$ development of Parys accelerated primarily due to the construction of the railway and the
building of the water works in the Vaal River (Van Eeden, 1966:19). After the completion of the dam in 1910 Parys
had an abundant flow of water available, the town council thus decided that an electric lighting scheme should be put
in place in order to use the under-utilised water of the irrigation scheme to generate electricity. (Minnaar et al.,
1966). By 1912 Parys had electric lights (Minnaar et al., 1966). A reinforced concrete bridge over the Vaal River
was completed in 1915; this bridge was tarred by 1921 (Van Eeden, 1976). The bridge ensured increased traffic to
the town and thus resulting in an increase in trade and the opening up of markets in the area. Farmers on the
Transvaal side of the River came to Parys rather than travelling 48km to Potchefstroom, the closest town in
Transvaal. Parys was also more accessible by motor and the town thus received more visitors who visited the town
for recreational purposes (Van Eeden, 1976).
Up until 1922, when the Vaal River Co-operative Tobacco Farmers Association was established, industrial
development remained very slow in Parys (Van Eeden, 1976). Parys was regarded suitable for the manufacturing of
jams, pickles and biscuits and canned fruit (Van Eeden, 1976). Industrial development of any significance remained
however non-existent until the mid-1940s. A policy towards promotion of industrial development in Parys was
accepted by the Industrial Development and Publicity Committee of the Council in 1945 (Van Eeden, 1976). The
purpose of the policy was to attract the right investors to Parys, to provide employment for locals, thus preventing the
migration of residents to larger urban areas and to propose specific steps encourage to industrialists to investigate
the possibilities of Parys. Specific sites were set out for development, in addition water and electricity supply to these
sites were provided and regulated. As a result a sharp increase was observed in the amount of approved building
plans for Parys, but a decrease occurred from 1954 (Van Eeden, 1976). An increase in industrial development and
the subsequent growth of the town occurred during the 1960s.
51
By the mid-1970s Parys had a number of prosperous light industries (Van Eeden, 1976). Parys benefited from road
transport networks as a result of its advantageous position on a national road. Van Eeden (1976) suggests that,
even though Parys has a number of light industries, a lack of specialised traders and wholesalers indicates that
Parys should regard its recreational resort as its main industry.
5.2 The Development of Parys as a Recreational Resort
Since the early 1900s the potential and ideal location of Parys as weekend recreation destination, for visitors from
Johannesburg, was recognised (Van Eeden, 1976). It was noted during a meeting, concerned with whether
Vredefort or Parys should be the seat of Magistracy on 13 May 1903, that the only advantage of Parys was its river
where people from Johannesburg can come and relax over weekends (Van Eeden, 1976:22).
Before Parys became known as a recreational resort, concerted efforts were made by residents to promote the
interests of the town through established organisations. A boating club was established in 1909 and a swimming club
was also founded as a result of the popularity of sunbathing and swimming in the river. The need for swimming
regulations arose regarding swimming times, ensuring safety, etc., as well as the need for sanitation facilities and
bathing booths along the river. These aspects were sanctioned by the swimming club, which played an important
role in the development of Parys as a recreational and leisure resort. The bathing booths along the river were
completed in 1911 (Van Eeden, 1976). The town council also regarded the development of Parys as an inland
holiday resort as a matter of great importance and endeavoured to draw of visitors to the town (Van Eeden, 1976).
Figure 5.1: Parys Hotel

(Source: Van Eeden, 1976)
52
A certain Mr. Beamish, a local entrepreneur, should however be accredited as the person who; first realised the
possibilities of Parys as a recreational resort, who initiated the development of recreational and leisure facilities in the
town and the promotion there of (Van Eeden, 1976:31). Owing to the efforts of Mr. Beamish the first advertisement,
a full page, illustrated advertisement, regarding Parys appeared in the Bloemfontein Post over December in 1911
with the aim of drawing visitors to the town (Van Eeden, 1976). Mr. Beamish built rondawels on one of the islands in
the Vaal River round about 1912, these facilities was unfortunately rather inaccessible when the river was high; he
later also built the town’s first bioscope (Minnaar et al., 1966).
In 1913 the first Sunday School Conference of the Dutch Reformed Church was held in Parys (Interview 5). In 1914
the town council decided to that, in order to improve the safety of swimming areas, poles will be planted in the river to
indicate the depth of the river at various spots; ropes would also be attached to ropes to aid those who were not
strong swimmers (Van Eeden, 1976). In 1915 a donation was made by the Council’s Department of Public Works to
the swimming club in order to erect a diving board (Van Eeden, 1976). Leisure facilities were thus improved in order
to ensure a higher standard to visitors (Van Eeden, 1976). In 1916 plans was made by the Council to improve the
sanitation and dressing facilities for public use along the river and remove dangerous rocks in the river at designated
swimming spots (Van Eeden, 1976). On the request of the swimming club a caretaker was appointed to see to the
cleaning of the swimming areas and public facilities (Van Eeden, 1976).
The Council developed a resort; Mimosa Gardens, on the banks of the Vaal with leisure and recreational facilities
such as; swimming, accommodation and other public facilities. Improvements made by the Council in 1919 included
the construction of an entertainment area and café, new rondawels, a new safer swimming area in the river, parking
for visitors, a bowls court and skating court (Van Eeden, 1976). The Town Council approached the Publicity
Department of the South African Railways (SAR) in 1922 to assist with advertising the town (Van Eeden, 1976). SAR
agreed to grant financial support to the Council on the condition that the Council commit to printing the proposed
brochures and posters on an annual basis. It was accordingly proposed to the council that photo cards with pictures
of Parys will be put on display at 350 stations; and that 5,000 brochures be printed annually; posters were also added
to the advertising campaign (Van Eeden, 1976). It is clear that the advertising campaign and the renewed vigour of
the Council to develop and promote the town as a recreational resort paid off. In 1925 the town received 5,000
visitors over the festive season who spent an approximate R30,000 over the season (Van Eeden, 1976). During this
time the town had a population of 3,000, about a dozen motors for rent, three hotels, seven butchers and 15
boarding houses, in comparison with 1911 when the town had a population of 1,200, two hotels, one boarding house,
two butchers, around 10 shops, one bank and no motors for rental (Van Eeden, 1976).
53
It should be mentioned that approximately 3,000 of the 5,000 visitors over the festive season in 1925 arrived in Parys
by rail (Van Eeden, 1976). Many of the urban residents from the urban middle classes frequented inland domestic
resorts (Hoogendoorn et al., 2007) not being able to afford visits to coastal areas or motor cars during these times.
Towns in relative proximity to urban areas and accessible via rail networks thus benefited and domestic tourism
resorts developed, for example Warmbad, Badplaas, etc. The advertising programme in co-operation with the SAR
continued until 1942. In 1951 an illustrated brochure that promoted the recreational facilities and the town life of
Parys appeared (Van Eeden, 1976). Parys grew in popularity as an inland recreation resort during the 1950s and
1960s drawing mostly domestic visitors from the Vaal Triangle, the Western Transvaal and the Free State (Van
Eeden, 1976). An Olympic sized swimming pool was constructed in 1963 (Van Eeden, 1976). A trend that emerged
over the years is that of day- and weekend-visitors (Van Eeden, 1976). Day-visits included family picnics along the
river during the festive season on days such as; New Years Day, Christmas Day, Boxing Day etc 5 .
Van Eeden (1976) remarked that the location of Parys next to the Vaal River is ideal for the establishment of holiday
homes and the proximity to Johannesburg is an added advantage. Parys had two main recreational areas, namely
the Mimosa Gardens and the feesterrein further east along the river. The feesterrein included public recreation
facilities, such as a launching area for boats, fishing areas, rondawels, a caravan park, a swimming pool, a restaurant
and was often used for volksfeeste (Van Eeden, 1976) and Geloftefeeste on the 16th of December. The feeshuis on
the grounds of the feesterrein was built in 1932 (Interview 5). Both facilities belonged to the Municipality 6 . Van
Eeden (1976:41) asserts that: “As alles in ag geneem word, moet elkeen saamstem dat Parys in the afgelope paar
jaar ‘n vooruitstaande binnelandse vakansie oord geword het. Met visie en inisiatief kan dit nog verder ontwikkel
word in ‘n unieke vakansieoord”.
It should be mentioned that efforts to brand Parys emerged as early as the 1920s. It is clear from the information
provided by Van Eeden (1976:41) that destination images utilised for Parys in advertising campaigns included: ‘Pearl
of the Orange Free State’ and the ‘Pride van the Vaal River’.
5 The author’s mother remembers a family picnic on Boxing Day 1966 and states that Parys was a popular picnic spot for day visitors during
the time with many people camping along the river for the day. The family travelled from Johannesburg and spent the night with family in
Carltonville. There were limited accommodation facilities in Parys during the time.
6 The Mimosa Gardens still belong to the Municipality but are currently in a state of disrepair, even though the facilities are still in use. The
feesterrein was superseded by the development of the Parys Golf and Country Estate in 2006. The feeshuis has been preserved.
54
Figure 5.2: The Mimosa Tearoom

(Source: Van Eeden, 1976)
Parys has become known as a ‘sleepy little retirement town’ (Myburg, 2007[online]:1) over the years, especially for
the white, urban middle class (Interviews 5 and 6). The development of Parys as a retirement town is attributed to
the following aspects: the large agricultural plots (landbouerwe) in town allowing persons to cultivate their own fruit
and vegetables, as well as pursue hobbies such as gardening; the provision of water to the plots via irrigation
channels; the proximity to medical care and professionals in Transvaal, as well as the rural ambiance of the town
(Interviews 5 and 6). An point of interest is that the suitability of the town as a ‘garden city’ for the retirement of
British naval and military officers was investigated by Sir Roland Bourne from London in 1925 (Van Eeden, 1976:74).
Even though there was considerable interest, nothing came of the correspondence between the mentioned person
and the local council (Van Eeden, 1976). Should the development have taken place it would have altered the
development history of Parys. It is postulated that such a development would have ensured the development of
more upmarket facilities and would have drawn additional foreign investment to the town, possibly resulting in a more
‘posh’ image of the town. Parys has become known for its antique shops over the years, this is regarded as a unique
feature of the town. The first antique shop in Parys opened in the 1960s (Colman, 2007).
5.3 Recent Developments vis-à-vis Tourism in and around Parys
The N1 highway was constructed during the 1980s. The new national road bypassed Parys and Vredefort,
connecting Johannesburg with the south via Kroonstad and Bloemfontein. The locational advantage Parys had in
being situated along a national highway was thus no longer in effect. Fortunately trade via Parys to the western Free
State and North West Province continued thanks to established markets (Interviews 5 and 6) and the role of Parys as
a service centre in the area.
55
A few large industries in the manufacturing sector have pulled out of the area in recent years as a result of industries
being brought over by other businesses and due to weak labour relations (Interviews 5 and 6). This trend is reflected
in the economic overview of the district provided in Chapter 3, which indicates that the contribution of the
manufacturing sector to the local Gross Geographic Product (GGP) has decreased with 3.2% between 1995 and
2005. Declining tendencies are also observed in the agriculture and mining sectors. All three of these sectors shed
employment during the mentioned time period. The decline of the agriculture and mining sectors are a trend
associated with small towns during the last few decades (see Literature Review). On the other hand, positive growth
with regard to the GGP and employment is observed in the transport, trade and catering and accommodation
sectors.
Tourism flows to the area started to pick up slowly since 1990 (Interview 3), thus coinciding with the national trend
regarding the growth of the tourism industry during the 1990s. From around 2000, various artists started to settle
themselves in Parys, opening galleries, coffee shops and the like (Interview 4). It is suggested that this acted as a
catalyst for tourism development in Parys. Boonzaaier and du Toit (2007:19) assert that: “In the past 3 to 4 years
Parys has become an artist hub with more than 100 artists living in the area at the moment”. Some of the artists
were well known and their names were used to promote the town, the Parys Development Forum (PDF) founded in
2004 played an important role in this regard (Interview 4). The PDF fulfils the dual role of a chamber of commerce
and a tourism bureau and is also responsible for promoting Parys as an adventure tourism destination; its efforts
include the development of the Dome Adventure Fest which has grown in popularity over the last few years
(Interview 6). It is apparent that visitors numbers, coupled with tourism development, have increased sharply over
the last three years (Interview 6). Boonzaaier and du Toit (2007) estimate that the region receives approximately
50,000 visitors per annum; with reasonable visitor flows over peak weekends, annual events and school holidays.
According to estimations by locals the area and received in the order of 6,000 visitors over Easter and 8,000 visitors
over Christmas in 2006 (Boonzaaier and du Toit, 2007:19). It is suggested that there is a strong correlation between
the growth of tourism in the Parys area the declaration of the Vredefort Dome as an UNESCO World Heritage Site in
2005 (see research findings in Chapter 6).
High expectations exist regarding the potential socio-economic impacts that the VDWHS holds for development in
the area (Aucamp, 2007). Economic development does not necessarily lead to social development (Aucamp 2007;
Sharpley and Tefler, 2002, Scheyvens, 2002). The guidance and support of skilled people (Aucamp, 2007), as well
as the effective management of the site is imperative to ensuring upliftment in the area.
56
Africa Geo-Environmental Services (AGES) was appointed by the Free State Department of Tourism, Environmental
and Economic Affairs to facilitate the development of an Integrated Management Plan (IMP) for the site. The
establishment of a Management Authority is recommended by UNESCO to ensure that world heritage sites are
managed in a suitable way and towards the implementation of the IMP (IMP, 2007). It is recommended that the
Management Authority be representative of all stakeholders towards an inclusive and joint management approach.
It is evident from the IMP (2007) that the area is in transition from agriculture to tourism and the tourism potential of
land on the periphery of the VDWHS is recognised. Parys is recognised as a gateway to the Dome, since it falls
outside the buffer zone of the conservation area (see Annexure) and identified as a primary development node with
regard to the VDWHS (Saayman et al., 2007). It is clear that potential for tourism development exists in Parys owing
to the declaration of the Vredefort Dome as a World Heritage Site. This will be discussed further in the subsequent
chapter.
Roads in the area of Parys are being upgraded by the Free State Provincial Government (Interview 3) and
construction on the R59 is currently underway. Other current proposed developments on the Free State side include
a gateway centre that will be developed by the FDDM. The gateway centre will include the following facilities
(Interview 3):
A visitor centre with the possibility of expanding the facility to an interpretation centre in future should
necessary funding be accrued.
Hiking trails
A trading post
A geological exhibition
The slogan proposed for the branding of the VDWHS is; ‘where the stars touched the earth’ 7 . It is clear that the
branding efforts proposed for the Dome focus on the natural attributes of the area, such as nature, history and
cultural heritage.
7 This information appears on the promotional material designed for the VDWHS by African EPA.
57
5.4 Concluding Remarks
It is clear from the discussions provided in this chapter that tourism based on recreation and leisure has played an
important role in the economy of Parys since shortly after the turn of the previous century. Parys, therefore,
developed as a popular inland resort drawing mostly domestic visitors, especially since the 1950s. Entrepreneurial
initiatives sparked tourism development in Parys and in the early years the efforts of the Town Council were integral
to the promotion and development of the town. Visitor flows to Parys started to increase again since the early 1990s,
mirroring national trends. The tourism industry started growing more significantly since 2000 with drastic increases
in; visitor flows, tourism developments, residential developments, such as two golf estates and property prices since
2005.
Parys is known as a retirement town and has seven old age homes as indicated in the Supply Analysis (Chapter 4).
The art and antique shops in town are unique features of Parys. Second home development is deducted as a trend
in Parys and its surroundings. Weekend and day-visitors are a noted trend with regard to the nature of the tourism
industry in Parys. Parys is considered as a gateway to the VDWHS since is falls outside the buffer zone of the
conservation area and has thus been identified as a primary development node in the area. It is clear that the town
and the surrounding area have progressed over a few years as a result of tourism development.
It is concluded that the future development of the tourism industry in Parys is dependent on the development of the
VDWHS (Interview 3). Should initiatives planned for the development and promotion of the VDWHS be successful,
more visitors will be drawn to Parys and the industry will continue to grow. If not, the growth potential of tourism in
the area will be inhibited.
58
Chapter 6: Discussion and Analysis of Primary Research Findings
The findings presented in this chapter are based on the semi-structured surveys with tourism SMMEs in the area
(respondents in Category A) and interviews with tourism stakeholders (respondents in Category B). The surveys and
interviews were conducted during the course of 2007, mainly in the latter quarter of the year. The research findings
are discussed, followed by a SWOT analysis, as concluded from the research. These findings provide the
characteristics and perceptions of SMMEs surveyed as part of this study and are thus only an indication of the
broader picture concerning tourism SMMEs in the area and the tourism system connected to Parys.
6.1 A Profile of Tourism SMME’s
The research sample was chosen from the following groupings of tourism SMMEs:
Antique and art shops
Food and beverage establishments e.g. restaurants and coffee shops
Accommodation establishments in and around Parys
Adventure tourism operators around Parys
At the beginning of each survey, the interviewer requested to speak to the owner of the business, explained the
purpose of the interview, reassured the respondent that the information provided will be treated as confidential and
anonymous, and requested the consent of each respondent before continuing with specific questions. The research
findings regarding the profile of the owners of tourism SMMEs interviewed and related characteristics are discussed
below. Figure 6.1 indicates how long SMMEs have been in operation.
M o re than 10
years, 8.0% Less than a year,
12.0%
6-10 years, 16.0%
1-2 years, 44.0%

3-5 years, 20.0%
Figure 6.1: The Period of Operation Regarding Tourism SMMEs in the Area
(Source: Author’s surveys)
59
Most tourism SMMEs surveyed (44.0%) were established during the past two years. This confirms findings, as
discussed in Chapter 5, which indicates that the tourism industry has grown significantly over the last two years. Of
the SMMEs interviewed 20.0% have been in existence for three to four years and 16.0% for 6-10 years. Of
businesses interviewed, 80% indicated that they experienced an increase in business over the last few years. The
highest level of education of tourism SMMEs surveyed is indicated in Figure 6.2.
Degree, 16.7%
Diplo ma, 20.8%
P o st graduate
qualificatio n,
16.7%
Other, 0.0%
M atric (Grade
12), 45.8%
Figure 6.2 The Highest Level of Education indicated by Owners of Tourism SMMEs
It is clear that 45.8% of owners have completed a Matric (Grade 12) qualification. Of owners, interviewed, 20.8%
have a tertiary diploma, 16.7% of respondents have either a degree or a post-graduate qualification. Of respondents,
interviewed, 92% indicated that they have no formal training in a tourism related field and only 16% have prior
experience in the tourism industry. Most respondents were previously employed in the following sectors, before
starting their current businesses:
Finance and business services (56.0%)

Government and social services (16.0%)
Transport (8.0%)
Respondents were given the choice whether to answer questions in Afrikaans or English; 80% of respondents opted
to answer the questions in Afrikaans. Of respondents interviewed 68.0% were female and 32.0% male and all
respondents were white entrepreneurs. It is thus concluded that transformation levels are low and that white, female
entrepreneurs are the main owners of tourism SMMEs interviewed.
60
Figure 6.3 indicates the life stage in which the owners of tourism SMMEs find themselves. It is apparent that 48.0%
of respondents are parents with mature children and thus in their middle ages. The life stage in which the second
highest proportion of respondents fall is; married couples with young children (20.0%), followed by singles (12.0%)
and retirees (8.0%).
Other 0.0%
Retired 4.0%
A empty-nester 8.0%
L ife stag e
A parent w ith mature childern 48.0%
A single parent 4.0%
Married - new parent 20.0%
Married w ithout children 4.0%
Single 12.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Percentage
Figure 6:3 Life Stage of Tourism SMME Owners in the Parys Area
Of respondents interviewed, 56.0% indicated that that he or she was the sole owner of the business, 32.0% indicated
that he or she was in business with his or her spouse; 8.0% indicated that he or she was in business with relatives
and only one respondent indicated that he had a BEE partner.
It is clear that most of the SMMEs are relatively small and do not employ many employees; 83.3% employ between
one and 10 persons; 12.5% employ between 11 and 20 persons and only one business employed more than 20
persons. Most of the employees originate from the Parys area (83.3%) or other towns in the area or the district
(8.0%). It is thus clear that local labour is the main source of employment to tourism enterprises in and around
Parys.
6.2 The Nature of the Tourism Industry in the Parys area
6.2.1 Perceptions of the Tourist Industry by Respondents in Category A
It is clear from the surveys conducted that visitors to the Parys area originate from the following source markets, in
order of importance:
61
The Gauteng Province

The Free State Province
The North West Province
Most of the visitors to the area are domestic visitors and the international market is very small at present. It was
estimated; by 12.0% of the respondents, that domestic-international visitor ratio is 80:20; while 20.0% estimate that
this ratio is; 90:10. The majority of respondents (52.0%), however, indicated that international visitors to the area are
‘very few’ (less than 10%). Figure 6.4 indicates the main reasons why visitors visit the area, based on the
perceptions of respondents.
35%
30%
25%
Percentage
20%
15%
10%
5%
0%
Weddings Conferences Arts and Adventure and People visiting Other
and teambuilding antiques leisure second homes
Reasons for visitation
Main reason Second reason Third reason
Figure 6.4: Reasons for Visits

The three main reasons for visitation appear to be; visiting arts and antiques shops, followed by visitors attending
weddings and teambuilding activities or conferences. Persons visiting second or holiday homes are also an
important reason for visitation to the area. Currently, participation in adventure and leisure activities is not regarded
as one of the main reasons for visitation. It was indicated by several respondents that Parys receives a substantial
number of day-visitors to the area, especially over weekends. Figure 6.5 indicates the perceived influence the
declaration of the VDWHS had on visitor flows.
62
50.0%
44.0%
45.0%
40.0% 36.0%
35.0%
Percentage 30.0%
25.0%
20.0%
15.0%
8.0% 8.0%
10.0%
4.0%
5.0% 0.0%
0.0%
Decreased Stayed the Increased Increased Increased Unsure
same slightly moderately substaintially
Responses
Figure 6.5: The Influence of the Declaration of the VDWHS on Visitor Numbers to the Area
Of respondents interviewed, 44.0% were of the opinion that visitor numbers to the Parys area had increased
moderately since the declaration of the Vredefort Dome as an UNESCO World Heritage Site in 2005; 36.0% were of
the opinion that visitor numbers increased substantially (Figure 6.4). It is thus concluded that the declaration of the
VDWHS did have an influence on visitor numbers due to increased awareness of the area (Interview 6). Barriers to
the development of tourism in the area as identified by respondents are indicated in Table 6.1.
Table 6.1: Barriers to the Development of Tourism in the Area
Main barriers to tourism development % of responses
Poor service delivery 44.0%
Need for improved marketing 40.0%
Fragmented tourism system 20.0%
Lack of things to do 12.0%
People are apposed to change or development 8.0%
Lack of tour guides 8.0%
Lack of signposting 4.0%
Source: Compiled by Author based on SMME Surveys (Respondents in Category A)
Most of the respondents (44.0%) regarded poor service delivery by the local council as the main barriers to tourism
development in the area. It was mentioned that the Vaal River is polluted and that the water quality in the area is
poor. The poor condition of roads in the area was another matter of concern, as well as dirty streets. The municipal
holiday resort and parks are un-kept, according to some respondents. Poor or inadequate marketing is considered
as another barrier to development.
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Respondents indicated that inadequate information is provided by the tourism information offices, the area are not
marketed sufficiently outside the town due to a lack of sufficient distribution of information regarding the area, etc. A
need accordingly exists for improved and better marketing of the area, as well as improved distribution of information
at strategic locations in the vicinity of source markets.
Various respondents (20.0%) considered the tourism system in the area to be fragmented due to a lack of co-
operation between tourism SMMEs and other tourism stakeholders in the area. It was indicated by two of the
respondents that an attitude of; ‘for each his own’ exists among tourism SMMEs; enterprises are thus only furthering
their own concerns. It is, therefore, clear that collaborative initiatives towards furthering tourism in the area are not in
place.
A lack of ‘things to do’ in the area is regarded as another constraint. One respondent indicated that people visit
Parys because of curiosity (awareness created), but ‘do not know what to do once they are in Parys’; thus limiting
visitor expenditure in the area. The before-mentioned is also related to the poor distribution of information, regarding
attractions and activities in the Parys area, outside the town. The area has a large proportion of accommodation
establishments as indicated in the Supply Analysis (Chapter 4); opportunities consequently exist for the development
of more attractions and economic generating activities in the area that provides visitors with ‘something to do’.
Various respondents indicated that some of the residents are opposed to change and development. This has been
ascribed to the ‘small town mentality’ of the local residents (confirmed by Interview 4). This would likely be the
opinion of entrepreneurs or developers from urban areas that are frustrated with the lack of vision and the slow pace
of development experienced in small towns. Other constraints include; a lack of tour guides in the area; a lack of
signposting and the perceived inconsistency of tourism grading in the area.
Of respondents interviewed; 84.0% agreed that the hosting of events or festivals will benefit the tourism industry in
Parys. Suggestions with regard to specific events or festivals that could be successful in the area were provided by
respondents; the following proved the most popular, in order of importance:
Music festivals
Art festivals
Events related to sport and/ adventure tourism activities
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It was suggested by a few respondents that the Dome Adventure Fest should be expanded. Suggestions for other
events or festivals included; nature related festivals, a wildsfees; a biltongfees, an antiques fair and a carnival. Table
6.2 specifies recommendations, provided by respondents, with regard to the stimulation and promotion of tourism in
the area.
Table 6.2: Recommendations Regarding the Development of Tourism in the Area
Recommendations for Tourism Development
Combine accommodation and adventure activities
Restore buildings and enhance the aesthetic appeal of buildings
Develop and expand the arts
Extend shopping hours over weekends
Develop health resorts
Ensure a variety of shops
Build an information centre at the Dome
Ensure improved marketing initiatives and market the area outside the town
Ensure more economic generating activities
Opportunities for local guides
Promote events or festivals in the area
Source: Compiled by Author based on SMME Surveys (Respondents in Category A)

6.2.2 Characteristics of the Tourism Industry in the Parys area
The discussion in this section is based on interviews with respondents in Category B, as well as secondary sources.
It is clear from interviews with respondents in Category B that the tourism industry in the Parys area has grown
significantly over the last two years and that tourism is considered as the primary growth sector in the area. Property
prices and visitor flows to the area have increased accordingly. Tourism flows to Parys have increased notably since
2005 (Interview 6 and 7). It is regarded, by several of the respondents interviewed, that the development of tourism
in Parys was a spontaneous process. It is, however, clear that entrepreneurial initiatives, market demand and a
general increase in tourism activity in South Africa were contributing factors (Interviews 4,6,7). The current target
market can be described as domestic visitors, mainly from Gauteng visiting the Parys area over weekends or on day-
trips (Interview 3).
The river is considered as the ‘backbone’ of the tourism industry in the area (Interview 3) with numerous
accommodation establishments that provide wedding, team-building and conference facilities, as well as a number of
adventure tourism operators situated on the banks or in the proximity of the river. Adventure tourism is regarded as
a driver with regard to tourism in the area (Interview 4). It is suggested that adventure tourism can be expanded in
the area (Interview 4, 7 and surveys).
65
The Dome Adventure Fest draws approximately 4,000 visitors to the area during the event (Interview 7). Winter
months tend to be quieter (Interview 7) and initiatives to draw visitors during these months need to be investigated.
Initiatives to draw international visitors to the area have been launched by the Tourism Office at the district
municipality targeting self-drive visitors from the Benelux countries, as well as Germany. A self-drive map and
brochure has been published and distributed for this purpose focussing on arts and crafts, as well as nature and
culture. It would seem that response to this marketing initiative has been limited to date (Interview 3). More research
is required in this regard, as well as an upgrade in tourism infrastructure, for example road signage, the condition of
roads, the availability of maps and the effective distribution of relevant information to relevant market segments,
before such an initiative will be a success.
Accelerated second home development is evident over the past few years. Estate agents confirm that property
prices increased drastically over the past few years, especially over the last two years. According to Colman (2007)
the increase in property prices over the past few years is estimated to be between 200 and 300 percent. This is
attributed to lower interest rates during the time and an increase in demand due to people flocking to the area,
especially from Guateng (Interview 8). The development of the Parys Golf and Country Estate on the existing golf
course commenced in 2006. 475 stands were made available, approximately 75% of which have already been sold
(Interview 9). The Vaal de Grace, a Nick Price signature, golf estate is the second golf development on the outskirts
of Parys. The development falls within the borders of the Free State and the North West Provinces, as has been laid
out on either side of the Vaal River. Of 304 planned stands, only 70 were still available for sale in February 2007 and
80 houses have already been built at that stage (Die Noord Vrystaatse Gazette: 12 Februarie 2007). It is estimated
that between 50% and 60% of these properties belong to individuals from outside Parys (Interviews 4 and 6). The
most recently developed residential suburb in town, Oudewerf, has only limited plots available, no land has been
made available by the municipality for future residential development at present (Interview 6). According to an estate
agent in Parys the matter is receiving attention (Interview 8) and it is expected that the Council will allocate land for
development close to Oudewerf, in town, for the development of townhouse complexes (Colman, 2007).
There seems to be a link between the declaration of the VDWHS and the growth of the tourism industry in the area.
The declaration of the VDWHS led to increased awareness and publicity for the area; resulting in increased private
sector investment in turn and an increase in visitor numbers (Interview 6). It is expected that more international
visitors can be drawn to the area in the light of proposed developments for the VDWHS as discussed the following
section (Interview 6).
66
Due to the position of Parys on the periphery of the VDWHS and thus outside the conservation area, restrictions and
regulations vis-à-vis conservation, for example restrictions regarding new structures and large developments are of
no effect on Parys (Interview 6 and 7). Excessive restrictions, in terms of development regulations and bylaws, can
hamper development (Rogerson, 2005). Parys, thus, has a locational advantage being regarded as primary
development node in the area. The future developments in Parys will, thus, ensure that the impact of developments
is directed away from the conservation area (Interview 3). This will, in turn, contribute to an expanding tourism
industry in and around Parys.
Barriers to development are perceived to the disrepair of municipal infrastructure in the area and poor service
delivery as indicated by respondents in Category A (Table 6.1). The poor condition of roads, dirty streets, etc. is
perceived to create a bad impression thus impacting on the image of Parys and effecting repeat visitation (Interview
3). Certain roads in the area i.e: the R59 to Parys are currently being upgraded by the Provincial Government
(Interview 3 and observations by author). Other barriers include the lack of involvement of the local council in
tourism development; the lack of road signs and tourism signage, etc. The local municipality’s involvement in the
promotion of tourism is very limited (Interview 3 and 6) and it is clear that the tourism industry in Parys is private
sector driven. One respondent remarked on the inability of the local council to recognise opportunities (Interview 6).
According to respondents, the following tourism development opportunities exist in the area:
Nature-based tourism product offerings (Interview 6)

The further development of adventure tourism in the area (Interview 4 and 6)
The development of more accommodation establishments especially budget and luxury (5-star)
accommodation (Interview 4), for example a hotel (Interview 7)
Draw more international visitors (Interview 3 and 6)
Investigate the possibilities of music and art festivals
6.3 A Summary of Key Findings
A brief summary of the main research findings are outlined below:
• Most tourism SMME’s came into existence over the last two to three years.
• The majority of business owners have a tertiary qualification.
67
• Most business owners do not have previous experience or training in the tourism industry, but do have
experience in the finance and business services sector.
• Of respondents, 68.0% were female; most preferred to answer the questionnaire in Afrikaans and all
respondents are white entrepreneurs.
• Most SMMEs are small businesses, employing only up to ten employees, mainly from the locality.
• Gauteng is the largest source market with regard to visitors to the area.
• International visitor flows to the area are marginal.
• The main drawing cards in the area appear to be; arts and antiques followed by weddings, as well as
teambuilding activities and conferences.
• There appears to be a link between the declaration of the VDWHS and increased visitor numbers
resulting in the growth of the tourism industry in the area.
• Second home development has grown in the area over the past few years.
• Parys has a strong weekend and day-visitor market.
• Parys has a developmental advantage due to its location on the periphery of the VDWHS.
• The main barriers to development include: a lack of service delivery; a lack of marketing; a lack of co-
operation between tourism stakeholders, pointing to a fragmented tourism system; a lack of involvement
by the local council in tourism development and promotion, etc.
• Opportunities for development include; the expansion of adventure tourism in the area, the expansion of
nature-based tourism, the creation of budget accommodation establishments, the development of more
attractions in the area, the promotion of festivals and events, etc.
6.4 SWOT Analysis
An analysis regarding the strengths, weakness, opportunities and threats, with regards to the tourism industry in the
Parys area, follows in this section. The strengths and weaknesses are usually influenced by micro-economic
considerations (Marx et al., 1998), in other words; the strengths and weakness are influenced by the internal aspects
of the tourism system and the local economy in a locality. The opportunities and threats are determined by market-
and macro-economic forces (Marx et al., 1998), for example economics, politics, market forces, etc. Opportunities
and threats specific to the local tourism system will be indicated in this analysis, as well as broader considerations.
The purpose of the analysis is to inform strategic directives and initiatives towards the development of the tourism
industry in the area (Chapter 8). A SWOT analysis is provided in Table 6.3 and is discussed briefly.
68
6.4.1 Strengths
The key strengths of the area relate to its location on the ‘urban fringe’ of Gauteng thus ensuring accessibility.
Another locational advantage is the setting of Parys on the periphery of the VDWHS, thus contributing to the potential
of Parys as a primary development node vis-à-vis the VDWHS. The scenic environment of the area, combined with
the water resources of the Vaal River can be regarded as a strength concerning tourism development. According to
Binns and Nel (2002a); natural beauty is one of the key assets of localities towards tourism development.
Cultural, heritage, archaeological and geological resources also exist in the area and have been underdeveloped as
tourism attractions. Development potential thus exists especially with regard to nature-based tourism product
offerings focussing on the mentioned resources. It is clear that the tourism industry in the area is private-sector
driven, resulting from private sector investment in the area, with very little support from local government. According
to the White Paper on the Development and Promotion of Tourism in South Africa, 1996; tourism development
should be private sector driven with local government providing a facilitating or enabling environment for
development (Binns and Nel, 2002a). The success of tourism often depends on local entrepreneurs and the private
sector (Marais, 2004), but the supporting role of government is, however, indispensable.
6.4.2 Weaknesses
Several weaknesses have been identified based on the surveys and interviews conducted as part of this study. Poor
service delivery is regarded as one of the main barriers to tourism development in the area. It is suggested that local
government should play an integral role in local partnerships (Marais, 2004) towards the future development of
tourism in the area. It is imperative that the local municipality assist with the marketing of the area (Interview 6).
According to the Municipal Structures Act, municipalities are responsible for creating awareness and promoting
localities (Interview 3).
Low levels of transformation have been observed in the area; the owners of most tourism SMMEs are white
entrepreneurs who do not have BEE partners. Poor members of the community’s only benefit from tourism are
mainly low-skilled and low paid employment. A lack of appropriate and collaborative marketing initiatives has been
indicated as a barrier to development and thus a weakness in the local tourism system. Marketing initiatives are
fragmented due to the existence of two information offices in Parys.
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A lack of local partnerships and institutions supporting tourism development points to a fragmented tourism system
that is a perceived to be a constraint with regard to the future development of tourism in the area. Some local
residents are opposed to change and development. Poor standards with regard to tourism SMMEs have been
indicated by respondents. Limited land for development, especially in the town area of Parys, are currently available
for tourism development (Interview 7). Current weaknesses such as; a lack of ‘things to do’; a lack of tour guides and
a lack of tourism products focussing on cultural heritage resources present opportunities for development, as
discussed subsequently.
Table 6.3: SWOT Analysis of the Tourism Industry in the Parys Area
Strengths Weaknesses
Location on the urban fringe Poor service deliver affecting tourism e.g. poor roads, dirty
Location on the periphery of the VDWHS street, public areas in disrepair, etc.
Natural resources Low levels of transformation
Culture; heritage; archaeological; geological resources in the A lack of marketing
vicinity A lack of involvement in tourism promotion and development
The tourism industry in private sector driven by the local council
A lack of institutions supporting tourism development
A lack of local partnerships
Opposition of residents to change or development
A lack of tourism signposting and road signs
A fragmented tourism system
A lack of ‘things to do’
A lack of tour guides
A lack of tourism products focussing on the cultural heritage of
the area
Poor standards (lack of tourism grading)
Limited land available for future development
Opportunities Threats
Places of historical significance are undeveloped as tourism Internal politics, differing management styles and policies, with
attractions; development potential thus exists in this regard regard to the management of the VDWHS
Events and attractions based on the cultural heritage of the Dependence of the tourism industry in Parys on the success of
area pose opportunities for development the VDWHS
There is a need for the development of tourism attractions in Competition from other destinations on the urban fringe
the area Market saturation
Opportunities for the training of local guides exist in the area Economic fluctuations
The expansion of adventure and ecotourism product offering Seasonality
in the area
Festivals and events
Budget tourism
Draw more international visitors
Local partnerships and increased collaboration
Source: Compiled by Author based on Research Findings
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6.4.3 Opportunities
Opportunities exist for the expansion of eco-tourism and adventure tourism in the locality, as indicated by several
respondents. Nature-based tourism product offerings can include culture and heritage attractions; nature based
products, as well as activities such as; hiking, bird-watching, geological tours etc. Various opportunities for
educational tours exist concerning the VDWHS. Adventure tourism activities are allowed in the conservation area of
the Dome, provided that natural resources are exploited in a responsible manner (Interview 6 and 7). Further
opportunities exist for the development of the following product offerings; cultural-heritage attractions and events;
festivals and events; attractions providing visitors with ‘something to do’, such as activity based attractions
specifically targeting families and budget tourism, for instance backpacker hostels or budget accommodation; self-
drive tours, etc. Opportunities also exist with regard to improved partnerships and collaboration towards tourism
development in the area. Greater co-ordination is imperative between provincial and local government, local leaders,
local enterprises, civil society etc. in the pursuit of innovative development strategies.
6.4.4 Threats
The management of the Dome is a logistically complicated matter, owing to the location of the Dome in; the North
West and Free State Provinces and two different district municipalities and two different local municipalities
(Interview 3). Internal political conflicts; differing management styles and policies, regarding the management of the
Dome, are perceived to be possible threats (Interview 6). An inter-regional development node is suggested in the
IMP (2007). The challenge for the Management Authority will be to balance the approaches of the different regions
and the needs of the different stakeholder groups, as well as to ensure that the costs and benefits of the proposed
developments in the area are shared equally (Aucamp, 2007).
It has been mentioned that the future success of the tourism industry in Parys depends on the successful
management and promotion of the VDWHS. Should the Management Authority fail in this regard; the future growth
of the tourism industry in the Parys area could be affected. Parys is regarded as a primary development node and a
gateway to the VDWHS. Expectations regarding the role of Parys and expected future development could be
inflated.
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The tourism industry, due to its nature, is a notoriously difficult industry in which to manage businesses and the
increasing competitive nature of the market relationships in which tourism businesses find themselves complicates
the matter (Fyall and Garrod, 2005). Due to the tourism boom in South Africa over the last decade or so, the tourism
SMMEs in the Parys area may experience competition from other tourism businesses in small towns on the urban
fringe as these towns develop as tourism destinations and local authorities identify and pursue tourism as a definable
growth path (Binns and Nel, 2002a). Possible market saturation was indicated as a concern by a respondent
(Interview 7), who is of the opinion that tourism development has reached its peak in the area.
Limited properties are available for development; no riverside properties are available any longer and the municipality
has yet to set out land, for instance residential developments (Interview 6). This can have adverse effects on the
future development of tourism in the area.
It should also be mentioned that the visitor flows depend on seasonality. Visitor flows are thus not optimal all year
round, posing a threat to the occupancy rates, covers and thus profitability of tourism SMMEs in the area, especially
over the winter months. Strategic interventions need to be put in place to counter the effects of seasonality in quiet
months to draw visitors to the area.
Due to the volatility of the tourism environment, the tourism market is subject to considerable market turbulence. The
tourism market is highly sensitive to general economic slowdown (Fyall and Garrod, 2005:143). The above-
mentioned pertains to both international and domestic tourists. Parys currently depends heavily on domestic visitors,
especially from Gauteng. The domestic market will be more seriously affected by economic aspects. Increases in
fuel prices, interest rates, inflation etc. results in potential domestic visitors having less disposable income to spend
on leisure and recreation activities such day-trips to tourism destinations.
A comparative analysis between tourism SMMEs in the Parys area and other areas in the Free State, as well as an
analysis with reference to specific features of the tourism industry in Clarens are provided in the following chapter.
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Chapter 7: Comparative Analysis
The results of the research findings of this study are compared with the results of two other studies regarding tourism
in the Free State. The results of the survey findings vis-à-vis Parys are compared with the characteristics of tourism
entrepreneurs and their enterprises in the Free State, based on surveys conducted by with tourism SMME
entrepreneurs across the Free State between late 2003 and early 2004 (Rogerson, 2005). The second comparative
analysis is based on research conducted by Marais (2004) concerning Clarens. The aim of this chapter is to provide
more in-depth analysis towards identifying development needs in order to formulate strategic interventions towards
the future development of tourism in the area, as discussed in Chapter 8.
7.1 Comparison vis-à-vis the Characteristics of Tourism SMMEs in the Free State
The characteristics of the overall tourism SMME economy are briefly outlined as suggested by Rogerson (2005).
Most tourism SMMEs in the Free State are accommodation establishments in the form of guest lodges and bed-and-
breakfast operations. The Free State tourism economy is overwhelmingly dominated by white entrepreneurs with
very low levels of transformation inter alia the lack of ownership of tourism enterprises by black entrepreneurs. High
levels of ownership by females with regard to tourism SMMEs are ascertained, especially in the accommodation sub-
sector. It is suggested that the level of female involvement may be as high as two-thirds of all enterprises (Rogerson,
2005:90). The main tourism clusters in the Free State are situated mainly in Bloemfontein and the Clarens-
Bethlehem area. The Eastern Free State is regarded as a ‘particular region of tourism strength’ and the Northern
Free State is perhaps the ‘most weakly developed’ (Rogerson, 2005:91). It should be mentioned that, according to
the findings of this study, the tourism economy in the Parys area has grown significantly over the last two to three
years. Business and leisure tourism are primary market components in the tourism SMME economy of the Free
State; with Gauteng as a major source market.
Table 7.1 provides a comparison with regard to the characteristics of tourism SMME entrepreneurs and their
business between the Free State and Parys; based on the research findings of a study conducted by Rogerson
(2005) and on the research findings of this study. It should be mentioned that the study conducted by Rogerson
occurred approximately three years ago. Exact figures, concerning the current situation will thus differ; but it is
postulated that the characteristics, in a broad sense, will likely remain the same. Exact figures are thus not utilised in
the analysis; but the broad characteristics of tourism SMMEs in the Free State, as indicted by Rogerson (2005), are
compared with the primary research findings of this study. A comparison is drawn between similar criteria in both
studies and only applies to the criteria indicated in Table 7.1.
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Table 7.1: A Comparison between the Characteristics of Tourism SMMEs in the Free State and Parys
Characteristics of tourism SMME entreprenuers and their enterprises Comparability rating
Compares Compares Compares
Free State Parys strongly moderately weakly Rate
~67‐100% ~33‐67% ~0‐33%
The accommodation sub‐sector is the
Most tourism SMMEs in Parys are
most significant sub‐category of tourism 3 2 1 1.00
accommodation establishments
SMMEs
Tourism SMMEs are overwhelmingly All tourism SMMEs sampled are owned by
3 2 1 1.00
dominated by white entrepreneurs white entrepreneurs
High levels of ownership of tourism
The majority of SMME owners are female 3 2 1 1.00
enterprises by females are apparent
Tourism entrepreneurship is primarily SMME owners are mostly middle‐aged
dominated by middle‐aged and retirement persons and married couples with young 3 2 1 0.67
aged persons children
A high propensity of life‐style Lifestyle entrepreneurship is not apparent
3 2 1 0.33
entrepreneurs is apparent from surveys
Some indication that tourism is an
Income generated from tourism is
additional income to farming or
supplemented by incomes from farming or 3 2 1 0.67
retirement as the main purpose for
pensions
starting the business
Most tourism SMMEs came into existence Most tourism SMMEs was started in the
3 2 1 0.3 3
since the Country's democratic transition last three years
The majority of tourism SMMEs are new Most tourism SMMEs was are new
3 2 1 1.00
business start‐ups businesses, started in the last three years
Gauteng is the major source market of Gauteng is the major source market of
3 2 1 1.00
tourism to the Free State tourism to Parys
The ratio of international to domestic International visitors to the area are
3 2 1 0.67
travellers was approximately 20:80 estimated as less than 10% of total visitors
Tourism entrepreneurship is the choice for No indications of persons starting tourism
only a tiny proportion of persons who had SMMEs due to job losses in the formal 3 2 1 1.00
lost their jobs in the formal economy economy according to surveys
Most tourism entreprenuers have prior The majority of SMME owners have prior
3 2 1 1.00
working experience outside tourism job experience outside tourism
On average 7.6 full‐time employees are On average 8.4 employess are employed
3 2 1 0.67
employed by the sample of SMMEs by the sample of SMMEs
A lack of marketing was identified by
Key obstacles identified include the need
survey respondents as one of the key 3 2 1 1.00
for improved marketing
barriers to development
Labour is mostly locally recruited from the
Labour is mostly locally recruited 3 2 1 1.0 0
town of Parys
Overall comparability rating 0.82
Source: Compiled by author based on research by Rogerson (2005) and the research findings of this study
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The purpose of the comparison is not to provide an exact assessment of the relation between tourism SMMEs in the
Parys area and that of the Free State, but rather to provide a conceptual indication in this regard. The analysis is
thus only a general indication of how the characteristics of tourism SMMEs in the Parys area relate to the
characteristics of tourism SMMEs in the Free State as pertaining to the criteria indicated in the analysis. The
comparative analysis is provided in Table 7.1 along with a comparability rating based on the judgement of the author.
It is clear from the comparative analysis in Table 7.1 that the characteristics of tourism SMME entrepreneurs and
their enterprises in the Parys area ‘compare strongly’ to the characteristics of tourism SMMEs in the Free State. The
comparability rating falls between ~66.7% to 100%. It is thus concluded that the characteristics of tourism SMMEs in
the Parys area are a strong reflection of the characteristics of tourism SMMEs elsewhere in the Free State Province,
as pertaining to the criteria indicated in Table 6.1. The characteristics of tourism SMMEs in the Parys area also
correlates with the characteristics of tourism SMMEs in South Africa, as identified by Rogerson (2005b), in relation to
the following aspects:
Most tourism enterprises can be classified as SMMEs.

Lifestyle entrepreneurship was identified in some cases.
Tourism SMMEs are dominated by white, established entrepreneurs.
Established SMMEs consists mostly of privately owned guesthouses, guest farms, restaurants, bed and
breakfast establishments.
It is clear that the level of transformation in the tourism industry in the Parys area is very low, with very few BEE
owned or operated SMMEs in the area. In fact, only one black entrepreneur was identified in the supply analysis and
only one tourism business owner indicated that he has a BEE partners. A comparison with regard to several
corresponding aspects vis-á-vis the tourism systems of Clarens and Parys are provided subsequently.
7.2 A Comparison vis-à-vis Several Aspects of the Clarens and Parys Tourism Systems
Several aspects regarding the Clarens and Parys tourism systems are compared as emerging from a study
conducted by Marais (2004) concerning Clarens and the findings of this study. The purpose of this analysis is to
indicate developmental needs in the area, critical for the future success of the tourism industry in the Parys area,
based on comparison drawn in this section.
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The small town of Clarens has emerged as a ‘tourism mecca’ in recent years (Marais, 2004). Clarens is situated
between the Maluti mountains of the Eastern Free State and is accessible from Gauteng and the Free State via
roads networks that are in a ‘generally good condition’ (Marais, 2004). Clarens was established in 1912 and retained
its retirement character until the mid 1980s when tourism development started to emerge in the town (Marais, 2004).
The before-mentioned and the building of the Lesotho Highlands Water Project ensure an influx of skilled people to
Clarens. Tourism development in the town can be ascribed to the effective contribution of both the private and public
sectors in this regard. The tourism drive in the town has also resulted in benefits to poor people in the locality, such
as an upgrade of the sewerage system in the township (Marais, 2004). Marais (2004) has identified six key success
factors that contributed to the success of Clarens as a tourism destination:
A scenic environment.
Available financial capital in the form of external capital from outside.
Private entrepreneurs with strong personalities with entrepreneurial vision.
Networks and business linkages extending beyond the borders of the town.
Good governance reflected by a council who understood its role in enhancing the tourism industry and who
provided a political drive for tourism based LED.
A crime free environment as a result of effective policing.
Parys was established 36 years prior to the establishment of Clarens and developed as domestic, inland holiday
resort since the turn of the 20th century (see Chapter 5). A retirement culture is apparent in Parys, as initially in
Clarens. It is evident that Parys and Clarens provide similar tourism product offerings in terms of art and adventure.
Poor communities in the Parys area do, however, not benefit from tourism 8 , as was indicated in Clarens. Parys has
a scenic environment that acts as a catalyst for tourism development. External capital and business networks
contributed in the growth of tourism in the area.
It is clear from Table 7.2 that the tourism industry in the area is private-sector driven due to the efforts of private
entrepreneurs and local residents perceive crime not to be a significant consideration in the area, as found in
Clarens. The road networks in the area are, however, in a poor condition (apparent from surveys and interviews). A
lack of institutional capacity and structure is observed in local government resulting in poor service delivery and a
lack of involvement in tourism development and promotion.
8 This concern was raised by local community members at a LED indaba on 12 Oct 2007.
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This was not the case in Clarens where local government play a developmental role with regards to tourism. A
comparison concerning these key success factors for tourism development between Clarens and Parys is provided in
Table 7.2.
Table 7.2: A Comparison Regarding the Key Success Factors for Tourism Development between Clarens and Parys
Key success factors Clarens Parys Source of information
The environment in which Clarens is One of the advantages of Parys is its location
Situation analysis and
Scenic environment situated is renouned for its natural on the banks of the Vaal River ensuring a
observations in the area
beauty. scenic environment.
An observed trend in the Parys area is that
Available financial capital in the form investers and entrepreneurs involved in
External capital Interviews in Category B
of external capital from outside. tourism developments are mostly from
outside, especially Gauteng.
In recent years, private individuals, local artists
Private entrepreneurs with strong
and the Parys Development Forum, a private
personalities and entreprenuerial
Private entrepreneurs sector organisation, were involved in tourism Interviews in Category B
vision ensures the success of Clarens
development in the Parys area. It is clear that
as a tourism destination.
the tourism industry is private‐sector driven.
Lack of institutional capacity and structure are
The local council understood its
observed at the local council. The local council
developmental role with regard to Surveys (Category A),
do not have a formalised or structure LED
Good governance tourism development and provided interviews (Category B) and
department. Poor service delivery and a lack
the political drive for tourism‐based other discussions
of involvement of the council in the tourism
LED.
industry is apparent.
The Parys area has business linkages with
Gauteng due to its proximity and because
Networks and business Networks and business linkages exist
Gauteng is its source market. It is, however, Interviews in Category B
linkages beyond borders of town.
suggested that business linkages and networks
can be improved.
Interviews in Category B and
A crime free environment due to
Crime not perceived as significant barrier in the perceptions of local
Crime free environment effective policing is evident in
the locality. community members during
Clarens.
a LED Indaba
Source: Compiled by author based on research by Marais (2004) and the research findings of this study
It is concluded from Table 7.2 that most of the key success factors that contributed to the growth of tourism in
Clarens is also apparent in Parys. A few shortcomings in this regard have, however, been identified and will be
addressed in the following chapter which focuses on providing recommendations concerning the development of
tourism in the area. Developmental needs, on which the success of the future growth of the tourism industry in the
Parys area will depend, are indicated below:
• It is clear that tourism growth in Parys since the 1990s occurred in the absence of political drive and
efficient local government.
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It is, however, suggested that co-operation from local government is essential for the future growth
and development of tourism in the area. A drive from government is also imperative in terms of
ensuring greater community involvement and benefits from tourism.
• Networks and business linkages needs to be improved and greater investment needs to be drawn into
the area in order to ensure economic injections that will result in the growth of the local economy.
• The formation of local partnerships, as well as effective co-operation between the public and the
private sector is essential for the future success of the tourism industry in Parys.
• The provision of tourism infrastructure, such as road networks, effective communication channels etc.
will also contribute to the expansion of the tourism industry of the area.
7.3 Conclusion
It is concluded from this analysis that the characteristics of tourism SMMEs in the Parys area compare well to that of
tourism enterprises elsewhere in the provinces, based on previous studies. Other features concerning the nature of
tourism SMMEs in South Africa correlate with that of the Parys tourism system. A concern is raised regarding the
low levels of transformation in the Parys tourism system. It is suggested that poor, local communities benefit very
little from tourism activity in the area, other than low skilled employment. Most of key success factors that
contributed to the growth of the Clarens tourism system seem to be in place vis-á-vis Parys. Key shortcomings in
this regard, that hampers tourism development, do conversely include; a lack of co-operation from local government,
a lack of business networks and linkages, the absence of local partnerships aimed at tourism development and a
lack of adequate infrastructure required to provide an enabling environment to foster local economic development
through tourism.
Development needs, as identified in this analysis, will be addressed and incorporated into the developmental
implications and the accompanying recommendations provided in Chapter 8, towards the development and the
promotion of the tourism industry in the Parys area.
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Chapter 8: Development Implications and Recommendations
Development implications and recommendations, aimed at strategic interventions, towards the promotion and
development of tourism in the Parys area are provided in this chapter. Broad strategic interventions set out in this
chapter are based on the primary and secondary research findings of this study. The purpose of the chapter is, thus,
to provide focused and strategic recommendations towards the future development of tourism in the area. Strategic
development thrusts have been identified and constitute priority areas where action and implementation aimed at the
growth of the tourism industry in the locality (see Figure 8.1). It is recommended that tourism development in the
Parys area should be focussed on the following development thrusts:
• Developing tourism products and services in the area

• Targeting and expanding strategic market segments
• Expanding destination and product marketing
• Investing in tourism infrastructure
• Managing the impact of tourism in the area
The developmental thrusts are aimed at strengthening the tourism industry and providing direction with regards to the
future development. These thrusts, together with strategic interventions and key actions required, are outlined
subsequently.
8.1 Development Vision and Objectives
It is imperative that a development vision and accompanying objectives, directed at the development and promotion
of tourism in the area be formulated, in order to ensure a strategic approach to local economic development. Other
plans and strategies should, consequently, align to the vision and overarching objectives indicated. It is
recommended that the objectives include responsible tourism practices towards the sustainable utilisation of natural
resources; social upliftment and the distribution of benefits to local communities, as well as local economic growth
and development.
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8.2 Strategic Development Thrusts
A description of the development thrusts is provided along with specific actions constituting recommended ways
towards realising strategic implications. It is recommended that the tourism industry in Parys be expanded through
the development and marketing of the products as indicated in the following section.
Key Success Factors
Development Vision and Objectives
Strategic Development Thrusts
Strategic Destination and Investment in Manage the

Tourism
Market Product Tourism Impact of
Product
Segments Marketing Infrastructure Tourism
Development
Specific actions: Specific actions: Specific actions: Specific actions: Specific actions:

• Develop tourism • Capitalise on day‐ • Place marketing • Invest in hard • Apply responsible
attractions and trip and weekend • Branding infrastructure tourism principles
facilities leisure market
• Clustering • Invest in soft • Manage the
• Expand ad‐ • Expand domestic
• Collaborative
infrastructure impact of tourism
venture tourism source markets
marketing • Invest in tourism on the society, the
• Promote budget • Draw more initiatives specific economy and the
tourism international infrastructure environment
• Expand eco‐and/ visitors • Public‐private
nature‐based partnerships
tourism
• Promote culture
and heritage
tourism
Support Interventions
• Appropriate institutional structure or framework
• Participative Local Government
• Local partnerships and leadership
• Local business linkages
Figure 8.1: Strategic Development Implications for Tourism Development in the Parys area
(Source: Compiled by Author)
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8.2.1 Tourism Product Development
Tourism product development is an integral part of any tourism strategy or plan (ATI, 2006). Specific actions aimed
at tourism product development are discussed in this section. Tourism is driven by attractions (Kotze et al., 2005).
Attractions are demand generators (Kotze et al., 2005). It is, thus, important to develop tourism attractions and
facilities to draw more visitors to the area and consequently diversify the tourism product offering in the area.
According to Van Staden and Marais (2005); the development of tourism products is central to strategic tourism
development. It is recommended that visitor attractions in the Parys area be developed around cultural, heritage and
historical resources. Lane (1994:16) suggests that an area that neither has the resources or wish to be developed as
a mass tourism destination should; “capitalise on its situation and develop small scale markets seeking heritage and
closeness to nature”. According to Prentice (1993); “culture and heritage attractions are widely recognised as being
important elements of the tourism mix at any destination” (quoted by Kotze et al., 2005:120). Examples of possible
cultural, heritage attractions include; cultural and heritage tours, museums, visitor and interpretation centres, events
and festivals, local arts and crafts, etc. Binns and Nel (2002b:198) suggested a ‘cultural event based on the
archaeological heritage of the area’. This idea can be applied in the context of the Parys area.
The development of events, fairs, festivals, conferences, concerts etc. in Parys will promote Parys as a destination
and draw more visitors, especially domestic visitors. According to Visser (2007), festival tourism has become a key
feature of the development strategies in many small towns and has the potential to generate income for local
economies, contribute to place marketing and combat the effects of seasonality with regard to visitor flows in
localities. Most survey respondents agreed that the tourism industry in Parys will benefit from the hosting of events
or festivals. The following events or festivals are thus recommended, based on research findings: a music festival,
an art festival; a festival related to nature or an antique fair. Events or festivals should preferably be organised and
planned in the winter months when visitor numbers are lower due to seasonality. It is also recommended that current
events in Parys, such as the Dome Adventure Fest be planned, organised and promoted better, as well as diversified
in order to draw higher visitor numbers.
A need also exists in the Parys area for the provision of tourism facilities, such as public ablution facilities, the
upgrade of public parks etc. The following recommendations are made with regard to the development of public
leisure areas, as well as the upgrade of existing historical resources towards greater appeal and consummation:
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• Create walking paths for town walks. Village walks are popular in countries such as the UK. Pathways
need to be developed, as well as appropriate signage, for example signs indicating attractions,
information boards regarding attractions, a map of the town indicating recommended paths and
attractions, etc. The town is small enough to ensure moderate walks of a few kilometres. Guided
walking tours can be offered providing opportunities for local guides and income generation. Existing
historical resources and tourism products, such as art galleries, coffee shops can be capitalised on, as
well as made more attractive and accessible. Parking problems and traffic congestion in town can be
alleviated by providing walking paths and dedicated parking areas for visitors in appropriate locations.
• Create bicycle paths and river walks to provide leisure facilities for residents and visitors. This is aimed
at the family market and older persons (Lane, 2003).
• Upgrade public parks and restore historic buildings. The old railway station in a historical asset,
currently in gross disrepair. The old building can be restored and developed into a restaurant or coffee
shop with small interpretation area with inter alia historical information regarding the history of the town,
the historical importance of railway transport, etc.
The final recommendation, regarding visitor attractions, is the development of more activity-based attractions aimed
at the family market providing visitors with more ‘things to do’. Examples in this regard include the incorporation of
interpretation techniques at historical and heritage attractions. An interesting recommendation is made by
Boonzaaier and Du Toit (2007) concerning visitor centres, interpretation, etc. Farm tourism with attractions such as,
petting zoos for children and other related learning activities can also be considered. Other recommendations with
regard to tourism product development in the area include:
• The primary research findings of this study identified adventure tourism as a niche market product
offering with growth potential in the area. It is thus recommended that the adventure tourism market be
expanded in the area by appropriate product development and focussed marketing. Adventure tourism
is one of the USPs of the area that should be exploited and adventure tourism can also contribute to the
tourism image of the area.
• Nature-based tourism product development is also recommended due to the natural resources in the
area that lends itself to ‘eco-tourism’ or nature-based tourism, such as bird-watching, fishing, game
viewing, geological tours, etc.
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Kotze et al. (2005) suggest nature-based tourism should be the focus of tourism development in rural or
peripheral areas in the Free State. Nature-based tourism has education potential in drawing school
groups and families, thus diversifying the market.
• It is recommended that budget tourism be promoted in the area. The research findings of this study
indicated that there is a need for budget accommodation in the area and that more international tourists
should be drawn to the area. Budget tourism is a tourism product offering that will address both needs.
Self-drive tourism should be promoted and Parys should capitalise on its proximity to Gauteng with
regard to drawing international visitors to the area for self-drive day or weekend visits and budget
tourism. According to Visser (2004), budget tourism has several potential advantages such as;
increased flows in international and domestic visitors in off-peak periods; the potential to contribute to
transformation in the industry and the redistribution of tourists in the country; increased length of stay
thus ensuring increased expenditure in the area, etc. Budget tourists or backpackers often engage in
adventure and cultural heritage activities, buy local goods and services, are more inclined to be
sensitive to host cultures, visit areas that are not on the mass tourism map, etc. (Visser, 2004).
8.2.2 Expand Strategic Market Segments
With regard to expanding visitor market segments, the following is recommended:
• Domestic source markets should be expanded. Concerted efforts should thus be made to promote and
market Parys as a tourism destination to other domestic source markets, such as the Free State and
the North West Provinces to draw more visitors from other areas than Gauteng towards expanding the
market.
• The day-visitor and weekend visitor market should be further exploited. This is a primary market
segment for the area and tourism products and services should accordingly be developed around the
market. Boonzaaier and Du Toit (2007:31) suggest that the ‘day visitor market in South Africa is largely
untapped’. It is suggested that potential exists in encouraging day-visit trips by promoting Parys as a
day-trip destination from Gauteng among domestic, with special focus on the domestic family market.
• Draw more international visitors to the area by promoting Parys as a day-trip, self-drive and budget
tourism destination and by focussing on nature-based tourism product offerings. It is important to
identify strategic international markets in this regard.
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It has been suggested by respondents (Interview 3 and 6) that countries such as Germany; France and
Benelux countries should be targeted for self-drive and eco-tourism options. Market research in this
regard is recommended before money is spent on promotional efforts. It is suggested by Kotze et al.
(2005) that stop-overs in the Free State for tourists en route to other destinations be promoted.
It is recommended that market research be conducted to define the market segments. A marketing plan or strategy
for the area should accordingly be based on the findings of the recommended research.
8.2.3 Focus on Destination and Product Marketing
According to George (2001), destination marketing is; “the provision of information, creating and portraying the image
of the destination, the provision of amenity for local residents, increasing pride in the destination, improving
international ties and promoting attractions” (quoted by Van Staden and Marais, 2005:237). The following
recommendations are made with regard to destination and product marketing:
• Marketing efforts should be focussed on the promotion tourism products and the Unique Selling
Features (USFs) of the area to strategically identified market segments; strategies towards capturing
these segments should be formulated. A place marketing campaign is also recommended based on
local tourism assets (Binns and Nel, 2002b).
• Van Staden and Marais (2005) recommend that tourism products should be combined with the image of
a destination and thus marketed. A strong branding image should be created for Parys. It is
recommended that branding for Parys be designed around the USFs of the area inter alia; nature,
culture, heritage, adventure and art.
• The clustering of tourism attractions in the area will also contribute to the promotion of the area as a
‘place’ or destination. The clustering of tourism and attractions contributes to the collective appeal of an
area thus ensuring collaborative marketing approaches towards marketing various attractions in the
area as a single destination or place (Rogerson, 2004a).
• Collaborative approaches towards marketing will also contribute to the promotion of the area as a
destination. It is thus recommend that Parys should not be marketed and promoted in isolation, but as
part of a broader, collaborative marketing strategy for the area as a destination, capitalising on
awareness created by the VDWHS. Collaboration is also needed to promote the area as an inter-
provincial tourism destination, thus benefiting the whole tourism system in the area.
84
Marketing initiatives in the area are fragmented. It is thus necessary to integrate the efforts of the
private sector, the FDDM and the Free State Province with initiatives employed by stakeholders on the
North West side of the river to ensure effective inter-provincial or inter-regional place marketing. The
NLM should also become involved in the promotion of the area.
8.2.4 Invest in Tourism Infrastructure
A lack of infrastructure supporting the tourism system was identified in this study. Investment in tourism
infrastructure is thus imperative for the future development of tourism in the area. Investment in hard, soft and
tourism specific infrastructure is thus required. Investment in hard infrastructure, which is a governmental function,
includes; the upgrade of road networks, ensuring good quality of water, public transport, etc. Investment in soft
infrastructure with regard to tourism required include; ensuring the safety of visitors, ensuring that emergency
services are available; the cleaning of streets, the maintenance of public areas, such as parks and other public
facilities. Other tourism specific infrastructure includes the decimation of tourism information of the area, grading and
ensuring quality service delivery and facilities, creating walking paths, tourism signage, etc. Government, especially
at provincial and local levels has an important role in ensuring an enabling environment for tourism development.
This function is currently lacking in the area. It should also be mentioned that public-private partnerships can be
formed, especially with regards to providing tourism specific infrastructure and thus drawing private sector investment
to the area.
8.2.5 Manage the Impact of Tourism
The impact of tourism development on the environment, the society and the economy should be managed. Tourism
developments should thus make economic sense and ensure profits; the local community should benefit from
tourism in the area and the environment should be preserved. The impacts of tourism developments should thus be
spread across time and space, while minimising the negative effects of development.
Responsible tourism should be the key principle guiding development strategies and actions. Responsible tourism
principles include environmental awareness, economic benefits of tourism should be directed to communities; locals
should have the opportunity to take part in economic activities, locals should have the opportunity to be employed,
trained and empowered. Recommendations regarding responsible tourism include:
85
• Economic leakages should be reduced by increasing local procurement through the utilisation of local
suppliers to provide goods and service for the tourism industry, for example fresh produce, arts and
crafts, local tour guides etc.
• Local labour should be utilised to ensure increased benefits to local communities.
• Joint ventures should be fostered with communities vis-à-vis appropriate capacity building and a
substantial role in management (Rogerson and Visser, 2004b:203).
• Community involvement in tourism initiatives should be promoted.
• Ownership and management of tourism SMMEs by community members should be promoted.
• Training opportunities should be provided to local community members 9
• Environmental preservation should be ensured.
Detailed and sensitive planning is essential to ensure responsible tourism development in localities. Benefits of
tourism to communities will not be generated automatically; concerted efforts are thus required by government and
the private sector to ensure that responsible tourism principles are integrated into policies, strategies and practices
aimed at tourism development.
8.3 Support Interventions
“Initiatives aimed at transforming an existing sector must encompass a broad range of strategic interventions”
(Renard, 2001). Strategic interventions require the involvement of all role-players. Capacity needs to be built at all
levels to forge partnerships between government, civil society and the private sector. Ultimately greater integration
and co-ordination is essential towards ensuring tourism development to the benefit of all stakeholders. The following
interventions are recommended in connection with supporting tourism development:
• An appropriate institutional structure to support tourism development in the area should be created.
• Local government should play a participative role in tourism development and thus provide an ‘enabling
environment’ for private sector tourism development.
• Local partnerships should be forged between government, the private sector and communities towards
tourism development. Strong vision and leadership is imperative to tourism development.
• Local business linkages need to be established in order to ensure an increase in local procurement of
goods and services and to avoid leakages from the local economy.
9 The district municipality is currently providing customer service training in tourism to locals (Interview 3).
86
The tourism industry in Parys is fragmented based on the research findings of this study. The fragmentation of the
industry results in a loss of opportunities and business by individual product owners. The critical challenge that
remains for development of the tourism industry in Parys is the development of new institutions and capacities in
order to overcome barriers imposed by limited capacity, fragmented strategies and un-coordinated development
initiatives by tourism associations and stakeholders. The fragmented nature of tourism provides a powerful catalyst
focus for inter-organisational co-ordination towards development (Fyall and Garrod, 2005:3). It is thus important that
attempts towards the development of tourism products and services, as well as local economic development through
tourism should be more co-ordinated with the attempts of government to support tourism development in the area.
Greater co-ordination between tourism stakeholders is imperative by reason of the naturally fragmented and diverse
nature of the tourism system towards ensuring tourism development that will benefit all stakeholders.
A champion acting as an active agent to drive the process of development is essential (Marais, 2004). The
establishment of a Tourism Development Forum is recommended. Such a forum should be a consolidated multi-
stakeholder body representing all the interest groups and role-players involved in the tourism industry with specific
regard to co-ordinate tourism development, promotion and marketing. A forum will provide a platform for networking
between role-players and drive the development process. Representatives from the following interest groups can be
considered 10 :
Tourism SMMEs in the area.

The interests of communities which are involved, directly or indirectly, in the hosting of tourists.
Local government.
The district tourism office at the FDDM.
The bodies responsible for the preservation of conservation areas.
The Management Authority of the VDWHS.
Local landowners.
The body or those bodies responsible for the preservation and management of sites and artefacts of
cultural and historical significance e.g. a Cultural Heritage Association in Vredefort (article 21 company)
is in the process of being established (De Wet, 2007).
Publicity associations; tourism development associations and tourism bureaux.
The PDF, as well as other business and tourism associations in the area.
10 The KwaZulu Natal Tourism Act of 1999 was used as a guideline.

87
Representatives of any other groups that may have an interest in or a contribution to make with regard to
the development and promotion of the area.
The responsibilities of the proposed forum would include; ensuring an integrated and collaborative approach to
tourism development in the area; ensuring that responsible tourism principles are incorporated in decision-making;
providing a channel of communication between stakeholders; as well as facilitating and strengthening relationships
between stakeholders. A lack of financial resources, human resources and capacity does, however, remain a
challenge with regard to the implementation of actions and strategies within localities.
8.4 Key Success Factors
Certain key success factors are required to act as catalysts for development and ensure an enabling environment for
tourism development in the area. These factors overarch the development thrusts and actions recommended and
are regarded as the ‘golden thread’ that runs through the interventions suggested towards ensuring development.
An integrated approach to tourism development is essential towards ensuring local economic development.
Greater co-ordination is imperative between provincial and local government, local leaders, local enterprises, civil
society etc. in the pursuit of innovate development strategies. Local partnerships are indispensable towards ensuring
available financial resources for development; the formation of local linkages and the reduction of economic
leakages; the implementation of strategies, etc.
Improved tourism information is required to boost the tourism industry in the Parys area and to market tourism
products effectively. Information needs to be accurate, up-to-date, and accessible. Collaborative initiatives, for
example; between local government and private sector towards providing tourism information, as well as trans-
provincial initiatives are recommended. Distribution of tourism information and promotional materials outside Parys
at strategic distribution points is essential to increase awareness and draw more visitors to the area. Elements of
tourism information include inter alia:
Tourism information and booking offices

Road signage
Interpretative signage at tourism attractions e.g. maps, information broad, directional signs to attractions
Websites about Parys
88
Tourist maps
An events calendar
Brochures distributed outside Parys at strategic distribution points
The clustering of attractions can be regarded as a spatial planning principle. By clustering attractions, planners or
developers aim to capitalise on the existing resource base, existing product strength or inherent product development
opportunities linked to market potential to strengthen or create clusters of tourism activity (ATI, 2006). The clustering
of tourism resources is sometimes referred to as the development of ‘honey pots’ (Law, 1993) or tourism precincts in
which tourism is a very important component. An example of this would be the development of visitor centres in the
VDWHS or the town area of Parys as a tourism precinct. Amenities and facilities in clusters should offer a sufficient
variety and uniqueness to attract visitors and expenditure. Tourism clustering enhances the attractiveness of tourism
destinations and ensures collective marketing initiatives towards marketing various attractions in an area as a single
destination or ‘place’ (Rogerson, 2005c). The development of tourism routes is another example of tourism
clustering, it is suggested that routes should be themed according to the USFs of the area such as; adventure
tourism attractions, cultural and heritage attractions, nature based attractions, etc. (Kotze et al., 2005). Inter-
provincial or inter-regional initiatives are also recommended with regard to the development of tourism precincts and
the clustering of tourism attractions or products.
Investment in human resources is essential in terms of addressing institutional weaknesses, as well as the lack of
capacity and skills within the locality. Investment in human resources should occur at government level, but also
within the private sector and public-private partnerships in this regard are recommended. Tourism SMMEs do,
according to responsible tourism principle, have the responsibility to provide training to their employees. Various
courses, such as the SA Host in Customer Service, tours guide and field guide course, etc. are available from the
Tourism and Hospitality Education and Training Authority (THETA) and other institutions.
Improved transport networks and accessibility is required to aid tourism development in the area. Tourism
attractions should be accessible to visitors via good road networks. Improvement of public transport networks could
also draw more visitors, especially budget tourists to the area. The upgrade of road networks is also indicated as
thrust for tourism development, part of hard infrastructure provision and thus the responsibility of provincial and local
government.
89
8.5 Recommendations for Future Research
An overview of the tourism industry in the Parys area has been provided in this report. Case studies provide a data
source that can be utilised for further analysis and research. A few recommendations for future research are
indicated below.
Research regarding the destination image of Parys and related tourism demand is imperative to understand the
decision-making behaviour of potential visitors (Jenkins, 1999). Research in this regard will aid the understanding of
the needs and wants of visitors, as well as their expectations regarding tourism activities and facilities in small towns;
informing targeted place marketing strategies. In-depth investigations regarding the development of niche product
offering and markets in the area are also recommended, for example adventure tourism, nature-based tourism,
tourism routes, art tourism, etc.
A detailed tourism strategy or plan for the area is recommended based on thorough research regarding tourism
demand, market segments and potential product development. A marketing strategy or plan for the area is part of
the suggested process in order to outline strategic marketing initiatives based on strategically identified market
segments and product offerings.
More research is needed with regard to the archaeological, historical, and anthropological resources in the area
(IMP, 2007). Sites of significance needs to be researched, properly identified and marked and preserved accordingly
(IMP, 2007) as indicated by the National Heritage Resources Act, 1999. The act inter alia promotes the utilisation of
heritage resources for research, education and tourism, as well as the integration of heritage resource conservation
in urban and rural planning and towards social and economic development (NHRA, 1999).
It is important to realise that not all cultural and heritage resources are necessarily attractive to tourist and the
potential of these resources as tourism attractions should thus not be inflated (Kotze et al., 2005). Research in this
regard is thus required in order to investigate the feasibility of cultural, historical and heritage resources as tourism
attractions with appropriate facilities and features that will enhance the attractiveness of these resources to visitors.
Attention should also be given to the investigation of ways in which the development of tourism product and
attractions in the area could contribute to local economic and social development.
90
8.6 Conclusion
Rogerson indicates the importance of tourism as an ‘anchor for growing local economies’ especially in smaller urban
centres in South Africa (Binns and Nel, 2002a:238). It is concluded that tourism has played an important role in the
historical development of Parys and has contributed significantly towards local economic development in recent
years. Tourism is considered as a primary growth sector of the area with the potential to diversify the local economy.
It is suggested that tourism will continue to play an important role in the development of Parys in the near future, but
that the future of the tourism industry in the area is dependent on the success of the VDWHS as a tourism
destination. It is construed that tourism has contributed to the regeneration of Parys in recent times, while some
small towns in South Africa are in a state of decline (Marais and Atkinson, 2006).
The potential of tourism as a development strategy for small towns is recognised, but certain defining features and
strategies promoting tourism development should be in place, such as innovation, effective place marketing, natural
beauty (Binns and Nel, 2002a). Smith (1995) indicates the importance of strategies that combine business interests,
environmental concerns and social awareness to optimise the returns from tourism to communities. The White
Paper on Tourism Development encourages community participation and the sustainable management of resources
(Binns and Nel, 2002a). Sharpley and Telfer (2002) do, however, stress the point that the most significant impact of
tourism is economic and that tourism benefits vary rarely filter down to poor communities and does not necessarily
bring about development.
Various development implications and recommendations were made towards the promotion and the development of
tourism, incorporating responsible tourism principals. Tourism development is, however, no easy task and concerted
efforts and sensitive planning is needed to ensure local economic development and the distribution of benefits.
Many challenges such as fragmented tourism systems, a lack of capacity, a lack of co-ordination, institutional
weaknesses, financial restrictions, etc. inhibit tourism development within localities. It is important to realise that
Tourism should be part of a broader LED strategy and an integrated element of broader development policy
(Sharpley and Telfer, 2002) to ensure social upliftment and socio-economic development. Greater involvement by
the private sector in existing government programmes is thus implied.
91
The contribution of this research study lies in the confirmation of trends with regard to tourism development in small
towns such as:
• growing second home development;

• the growth of tourism since the age of democracy in South Africa,
• the characteristics of tourism SMME owners;
• catalysts that gave rise to tourism development in small towns, such as the importance of
entrepreneurship and the participative role of local government;
• the importance of tourism as a local economic development strategy in small towns;
• the development of tourism destinations on the urban fringe;
• the initial retirement character of small town before evolving as tourism destinations;
• the importantance of scenic beauty as a precondition for tourism development, etc.
Indications have been provided for the development of the tourism industry in Parys that could be applied to the
tourism industries in other small towns in the Free State and other parts of South Africa. A few general implications
vis-à-vis tourism development can, thus, be derived from the study for application in other contexts.
92
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VAN STADEN, J.W. & MARAIS, L. 2005. The tourism potential of Beaufort West: a study based on visitor demand. Development
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Prepared in partnership of the CSIR for the Free State Provincial Government: distributed in 2007.
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Research Council (HSRC) Press. 23 p.
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issues in contemporary South Africa. Pretoria: Africa Institute of Africa. Pp. 182-219).
VISSER, G. 2006. South Africa has Second Homes Too! An Exploration of the Unexplore. Current Issues in Tourism, 19(4&5):351-383.
96
VISSER, G. 2007. Festival Tourism in Urban Africa: The Case of South Africa. (In Rogerson, C.M. & Visser, G. eds. Urban Tourism in
the Developing World: the South African Experience. New Jersey: Transaction Publishers. Pp. 101-126).
VISSER, G & KOTZÈ, N. 2006. The Free State Tourism Economy: Current Dynamics, Immediate Challenges and Future Research
Prospects. The South African Geographic Journal, 88(1): 88-99.
VREDEFORT DOME WORLD HERITAGE SITE – INTEGRATED MANAGEMENT PLAN: A TECHNICAL REPORT (Draft Document).
2007. Prepared for the Department of Tourism, Environmental and Economic Affairs. Potchefstroom: Africa Geo-Environmental Services
(AGES). 232 p.
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London. 56 p.
Interviews
Interviews were conducted with the representatives from the following institutions or with individuals as indicated:
INTERVIEW 1: Parys TourismInformation and Booking Office; interviewed on 10 February 2007.
INTERVIEWf 2: A brief discussion telephone discussion with an official from the LED department at the Ngwathe Local Municipality on
12 October 2007.
INTERVIEW 3: The Tourism Office of the Fezile Dabi District Muncipality, Sasolburg; interviewed on 15 November 2007.
INTERVIEW 4: Interview with a local artist and member of the Parys Development Forum on 15 November 2007.
INTERVIEW 5: Interview with a local historian and former member of council on 15 November 2007.
INTERVIEW 6: Interview with a director of the Parys Development Forum and local businessman on 16 November 2007.
INTERVIEW 7: The Parys Tourism Information Office endorsed by the Parys Development Forum on 16 November 2007.
INTERVIEW 8: Two estate agents in Parys were briefly interviewed telephonically on 11 December 2007.
INTERVIEW 9: A brief telephone discussion with the developers (Engel and Völkers) on 18 December 2007.
Observations
Observations were made during the following occations:
LED INDABA: The author attended and participated in a LED public participation indaba facilitated by Urban-Econ on 12 October 2007.
TOUR OF PARYS: The author was taken on a tour of Parys by a local historian on 15 November 2007.
VISITS TO PARYS: The author visited Parys on three occations during 2007 on: 10 February 2007, 11 October
2007 and 15&16 November 2007.
97
Annexure
Annexure I: Non-agricultural land uses of the VDWHS
Source: AGES, 2007
Annexure II: Planned land use applications for the VDWHS
Source: AGES, 2007
98

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Tourism Development in Small Towns:

the Case of Parys, Free State

A mini-dissertation submitted in partial fulfilment of the requirements for a

Faculty of Economic and Management Sciences

Supervisor: Prof. Gustav Visser

AGES Africa Geo-Environmental Services

1.1 Background Information Regarding Parys 1

Chapter 2: Literature Review 9

2.1 Leisure, Recreation and Tourism 12

Chapter 3: Economic Overview of the Impact of Tourism 25

Chapter 4: Situational Analysis Regarding the Tourism Industry of Parys 36

4.1 Spatial Analysis 36

Chapter 5: The Historical Development of Parys 49

5.1 The Origin and Early Development of Parys 49

Chapter 6: Discussion and Analysis of Primary Research Findings 59

6.1 A Profile of Tourism SMMEs 59

Chapter 7: Comparative Analysis 73

Chapter 8: Development Implications and Recommendations 79

8.1 Development Vision and Objectives 79

Annexure I: Non-agricultural land uses of the VDWHS 98

Figure 2.1: Leisure, Recreation and Tourism 13

Table 1.1: Research Methodology 4

1.1 Background Information Regarding Parys

1.2 Research Question

This report is guided by the following key research question:

1.3 Aims and Objectives of the Study

The aims and the objectives can be outlined as follows:

1.4 Research Methodology

Table 1.1: Research Methodology

Local government, local and district council

1.5 Research Limitations

1.6 Outline of the Research Report

The research report consists of the following sections:

Chapter 2: Literature Review

Chapter 2: Literature Review

2.1 Leisure, Recreation and Tourism

Home-based Recreation away Travel &

Figure 2.1: Leisure, Recreation and Tourism

2.2 Small Towns and Rural Decline

2.3 Tourism as a Development Strategy

2.4 Tourism SMMEs

2.5 Second Home Development

2.6 Supply-side Concepts

Percentage of revenue Examples:

10-90% Tier 2 Restaurants, taxis, local

Figure 2.2: Two-tier Model – a Supply-side Definition of the Tourism Industry

• Accommodation (e.g. bed and breakfasts, guesthouses, backpacker hostels, etc.)

2.7 The Tourism Economy

2.8 Responsible Tourism Guidelines

Chapter 3: Economic Overview of the Impact of Tourism

Figure 3.1: Foreign Tourism Arrivals to South Africa, 1966 to 2006

Table 3.1 Recent South African Tourism Statistics

Total foreign direct spending

Total domestic direct expenditure R 21.2 billion R 16.5 billion

(direct and indirect) (7.96% of GDP) (8.3% of GDP)

Total employment in tourism

3.2 The Free State Perspective

International Dom estic

Figure 3.2: Provincial Distribution of Tourism Flows (2005)

3.3 Local Economic Profile of the Ngwathe Local Municipality

3.3.1 Economic Profile

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

1995 2000 2005

Most tourism enterprises can be classified as SMMEs.