queenstown paca ® : promotion of the local economy in queenstown / lukhanji
TRANSCRIPT
Queenstown PACAQueenstown PACA®®
::Promotion of the Local Economy Promotion of the Local Economy in Queenstown / Lukhanjiin Queenstown / Lukhanji
What is Participatory Appraisal of What is Participatory Appraisal of Competitive Advantage (PACACompetitive Advantage (PACA®®
)?)?
Participatory
Appraisal of
Competitive Advantage
Involve local stakeholders Motivate local stakeholders to take an
active role in an LED initiative Transfer know-how to local stakeholders
and businesses
Do a quick scan of the local economy Assess and refocus ongoing local
economic development activities
Identify strengths, skills, talents and opportunities
Identify business and LED opportunities
What have we been doing?What have we been doing?
Interviews with businesspeople and stakeholders in Queenstown / Lukhanji
Miniworkshops with– Tourism sector– SMME support agencies– Training and education institutions– Local business men
Structure of this presentationStructure of this presentation
What is Local Economic Development (LED)? What is the first diagnostic of Queenstown?What are the first proposals to promote the local
economy in Queenstown?
1. What is Local Economic 1. What is Local Economic Development (LED)?Development (LED)?
What isn’t What isn’t Local Economic DevelopmentLocal Economic Development
Attraction ofnew investment= investmentpromotion
SMME support+ development
Skillsdevelopment
Employmentcreation
Communitydevelopment
... in a segmented and fragmented way!
What is What is Local Economic DevelopmentLocal Economic Development
Attraction ofnew investment
SMMEdevelopment
Skillsdevelopment
Employmentcreation
Communitydevelopment
How does local economic How does local economic development relate to other development relate to other activities?activities?
Local development
SMMEpromotion
Infrastructure
Transport
Energy
Technology
Health
Schools
Water / sewage
Community development
Employmentcreation
Poverty alleviation
Housing
Education
HIV / AIDS
Local economicdevelopment
Investmentpromotion
Skillsdevelopment
SMMEdevelopment
Why there is a tension between Why there is a tension between economic and community developmenteconomic and community development
Principles of economic development:
Rivalry / competition Invisible hand of the
market Survival of the fittest
Principles of community development:
Solidarity Collaboration Support for the weak and
disadvantaged
Consequences: It is important to separate economic development and
community development in terms of organization and implementation
It is possible, and indeed essential, to seek areas of overlap, to create synergies, and to learn from each other
2.2.What is the first diagnostic of What is the first diagnostic of QueenstownQueenstown / Lukhanji / Lukhanji??
Sectors considered in the Sectors considered in the first first Queenstown / LukhanjiQueenstown / Lukhanji PACA PACA®®
Tourism Sector
Queenstown / Lukhanji as Distribution Hub
Queenstown / Lukhanji as Service Hub
General Observations
General observations:General observations:Strong points and opportunitiesStrong points and opportunities
Underutilised industrial areaAvailability of vacant factory premisesExistence of a number of large manufactureresDynamic businesspeople sincerely interested in
the development of Queenstown / LukhanjiProactive approaching by interest groups to
PACA TeamComparatively low crime rateSchools of outstanding quality in national terms
General observations:General observations:WeaknessesWeaknesses
No active marketing of Queenstown / LukhanjiCulture of Non-CooperationFragmentation in business communityNot enough communication and information
sharing taking place Access and integration of new-coming
businessmen is difficultSale and dismantling of vacant factory hallsHawkers fill up sidewalksNot enough coordination between some local
government activities
Tourism Sector:Tourism Sector:Strong points and opportunitiesStrong points and opportunities
Potential source of continuous revenue Location at N6-Road Continuous support from Regional Tourism Office Game reserve and its supportive industries Bongolo dam Opportunities for a range of outdoor activities Considerable number of B&B accommodations available Strong demand for:
– Caravan site - 4 X 4 Trails– Hotel accommodation - Birding– Hunting & game sale - Fishing– Flying
Tourism Sector:Tourism Sector:WeaknessesWeaknesses
Lack of tourism awareness Lack of knowledge on the needs /expectations of tourists Insufficient Signage Remote location of entrance gate to game reserve Only few tourist activities available Missing entertainment facilities (e.g. movie theater) No hotel accommodation in Queenstown / Lukhanji Difficult currency exchange Lack of Transport Shuttle Services No proper stopover of Tourist Bus-Routes Location of Local Tourist Office
Queenstown Queenstown / Lukhanji / Lukhanji as as a a Distribution Hub:Distribution Hub:Strong points and opportunitiesStrong points and opportunities
Central location within a large rural catchment area
Good road and rail infrastructureWell established suppliers (hardware, furniture,
motorspares, wide range of food etc.)Should benefit from common supply chains (e.g.
wood, steel)Low rentalsScope for a goods consolidator
Queenstown Queenstown / Lukhanji / Lukhanji as as a a Distribution Hub:Distribution Hub:WeaknessesWeaknessesNo active marketing as distribution hubLimited competition: a large number of competing
distributors are facing high buying power = service not always customer-friendly
Decreasing buying power due to unemployment and increase in basic prices
High cost of transportLong distance to main centers (Jo-burg, Cape Town,
PE, Durban) Inefficient and unreliable rail transport serviceUnavailability of certain products
Queenstown Queenstown / Lukhanji / Lukhanji as as a a Service Service Hub:Hub:Strong points and opportunitiesStrong points and opportunities
Large catchment area for banking and other service providers (150 km)
Tradition as a service and trade locality due to its location between Transkei and Ciskei
Most service requirements are offered in Queenstown / Lukhanji
Demand for better and more sophisticated services
Queenstown Queenstown / Lukhanji / Lukhanji as as a a Service Hub:Service Hub:WeaknessesWeaknesses
People moving here perceived bureaucratic procedures required by the local administration as complicated
Not well-used courier services SMME support agencies are often not focused on the needs
of SMMEs – focused on funders Customer service is not a priority – businesses are often
very complacent Banks do not meet the demands of business / customers Signage and information are not inviting people off the
main route Unwelcoming attitude perceived by some people
3.3.What are the first proposals to What are the first proposals to promote the local economy in promote the local economy in QueenstownQueenstown / Lukhanji / Lukhanji??
General ObservationsGeneral ObservationsProposal #1:Proposal #1:
Purpose: Restore of municipal park and provision of skills training
Proposal– Restore municipal park to create a more
tourist-friendly appearance and to increase the leisure value
– Use unemployed and unskilled workers to restore and subsequently maintain the park
– As a secondary result those workers obtain skills of gardening and thus future job opportunities (garden workers, Garden services)
Tourism SectorTourism SectorProposal #1:Proposal #1:
Purpose: Strengthening of Local and Regional Tourism Organisations
Proposal– Closer co-operation between private and public sector –
make sure the LTO works• Local government to support the LTO and the
marketing of Queenstown– Local government need to recognise tourism as an
important growth sector– Leverage GTZ and DBSA technical assistance to
structure and facilitate tourism activities– Only LTO registered members to benefit from joint
marketing activities
Tourism SectorTourism SectorProposal #2:Proposal #2:
Purpose: Marketing and information of Queenstown (Lukhanji)
Proposal– Create a brochure on Queenstown (Lukhanji)
• Accommodation• Activities in the region
– Review the current website initiative and contribute where possible
– Engage with tour groups and passing busses– Collect information on how similar cities
market themselves (benchmarking)
Tourism SectorTourism SectorProposal #3:Proposal #3:
Purpose: Sharing and distribution of tourism related information
Proposal– Use the media to spread news and information
regarding Queenstown tourism activities– Spread tourism statistics, tourist demands and
suggestions to tourism establishments– LTO to become the hub of tourism information– LTO to be tasked with active marketing and
spreading of information
Tourism SectorTourism SectorProposal #4:Proposal #4:
Purpose: Signage to important tourism destinations to be improved further
Proposal– Signs and route signs to be erected that leads
to important tourism destinations (e.g Game reserve, rock paintings etc)
QueenstownQueenstown / Lukhanji / Lukhanji as as a a Distribution HubDistribution Hub
Challenges:– Have to attract more business that will use
Queenstown as a distribution base– Service of rail transport need to improve– Need to attract cargo consolidators
QueenstownQueenstown / Lukhanji / Lukhanji as as a a Distribution Hub Distribution Hub Proposal #1:Proposal #1:
Purpose: Market Queenstown as a distribution hub
Proposal– Embark on a marketing campaign that will
promote Queenstown as a distribution hub• Maybe consider an incentive to attract
businesses– Involve existing distributors to address
common issues– Identify empty factories that can be used as
warehouses and market them
Queenstown Queenstown / Lukhanji / Lukhanji asas a a Distribution Hub Distribution Hub Proposal #2:Proposal #2:
Purpose: Improve the inefficient and unreliable rail service
Proposal– Enter into negotiations with Spoornet &
Department of Transport regarding service• Keep all businesses that can benefit from
this service informed of progress• Make sure the service is not downscaled
– Look at how other cities on similar routes assisted or used incentives for rail transport
– Promote opportunities in rail consolidation and cargo handling
Queenstown Queenstown / Lukhanji / Lukhanji asas a a Distribution Hub Distribution Hub Proposal #3:Proposal #3:
Purpose: Arrange for Department of Labour to present Skills Development Fund workshops
Proposal– Workshop must target business that can
benefit from upgrading the skills of their workforce
– Educate businesses about the procedures of SDF
Queenstown Queenstown / Lukhanji / Lukhanji asas a a Distribution Hub Distribution Hub Proposal #4:Proposal #4:
Purpose: Motivate distributors to develop common/improved supply chains
Proposal– Educate distributors about the benefits of
common & improved supply chains– Identify common suppliers and raw materials– Facilitate discussions between local business
and suppliers of raw materials– If transport services or cargo handling is
insufficient then identify the gaps
Queenstown Queenstown / Lukhanji / Lukhanji asas a a Distribution HubDistribution HubProposal #5:Proposal #5:
Purpose: “Buy Local” campaignProposal
– Promote local suppliers of the region to business and community (chickens, vegetables, etc)
– Identify gaps and opportunities in the service offerings and stimulate the closure (GTZ to assist)
– Discuss “supply problems” with large retailers– Consider a monthly “market in the park” for
art, craft and local producers
Queenstown Queenstown / Lukhanji / Lukhanji as as a a Service HubService HubProposal #1:Proposal #1:
Purpose: Enter into discussions with banks to improve their service
Proposal– Arrange a meeting with banks and express
concerns of business and community– Request services like Foreign exchange
service, faster queues– Reward positive response with support from
local government and media coverage
Queenstown Queenstown / Lukhanji / Lukhanji as as a a Service HubService HubProposal #2:Proposal #2:
Purpose: Reward good service & “Customer friendly campaign”
Proposal– Increase the scope of current service award to include
categories like “best tourism establishment”, “best attraction” etc
– Increase the involvement of media, associations and community in the process (do it BIG)
• Use this process to educate people about customer service and customer focus
– Create awareness of good service– Arrange for “Customer Service Training” in area
• access Skills Development Fund (SDF)
Queenstown Queenstown / Lukhanji / Lukhanji asas a a Service HubService HubProposal #3:Proposal #3:
Purpose: Promote Queenstown / Lukhanji as a service hub to the region
Proposal– Town already known as a service hub to
agriculture, expand this to other sectors– Market Queenstown as a service hub
• Create a directory of services– GTZ to assist with the stimulation of demand
between service providers and small business needs in the next few months
Thank your for your attention!Thank your for your attention!
The PACAThe PACA®® team in Queenstown team in Queenstown
Christian Schoen (PACA® consultant)Shawn Cunningham (GTZ Project Manager)Shakes Mandaba (LED-Councilor Lukhanji) Ian van Dyk (LED-Officer Lukhanji)
With support from P.J. Cloete (Councilor Lukhanji), Donovan van Wyk (Admin Director of Lukhanji), Charles Lubbe (Admin Staff of Lukhanji)
ContactsContacts
Christian Schoen ([email protected])
Shawn Cunningham ([email protected])
Ian van Dyk ([email protected])
PACA® is a registered trademark of mesopartner: www.mesopartner.com