Chapter 1: An Introduction to KwaZulu-Natal1.1 Physical Geography
South Africa lies at the southern tip of the African
continent, between 220 and 350 south. Physically it is
larger than Germany, France, Italy, Belgium and Holland
combined. The country is dominated by a plateau of over 1
200 meters and a narrow coastal belt washed by the cold
Benguela current on the west and the warm Mozambique
current on the east. It has a coastline of over 2 900
kilometres, from the Indian Ocean on its eastern shores to
the Atlantic on the west. Within its borders, the large
variety of climatic zones allow a wide diversity of plant
and animal kingdoms to flourish.
The province of KwaZulu-Natal, on the eastern side of the
country, is bordered by the warm Indian Ocean to the east
and the escarpment of the Drakensberg, separating it from
the mountain kingdom of Lesotho, to the west. It covers
almost 8% of the country’s geographic area. The relatively
low lying coastal strip rises to rolling hills in the
Midlands before reaching the high altitudes of the
mountains and escarpment. The province boasts two of the
country’s major natural harbours at Durban and Richards
Bay. It also boasts two World Heritage Sites – The Greater
St Lucia Wetland Park and the uKhahlamba Drakensberg Park.
1.1.1 Climate, Temperature and Rainfall
The wide expanse of surrounding ocean generally provides
South Africa with a temperate climate, although weather
patterns vary widely. The Cape has a Mediterranean climate
with hot, sunny summers and cold, rainy winters, while for
most of the rest of the country summer rains are the norm.
Rainfall decreases westwards with about 1 000mm annually in
KwaZulu-Natal, to less than 250mm in the west. South Africa
is a dry country with an average annual rainfall of under
500mm. Summers are generally warm to hot with temperatures
averaging 230, while winters rarely experience temperatures
below 100. Only the high escarpment is regularly subject to
snowfalls, and frost is a phenomenon which occurs only in
the interior of the country. The interior has fewer than 80
days of rain a year with an average of 8,5 daily hours of
sunshine.
KwaZulu-Natal has a warm, sub-tropical, maritime climate,
with temperatures moderated by the expanse of the Indian
Ocean. Summers are hot and humid, averaging 280 and
experience the majority of the annual rainfall, while
winters, with average temperatures of 230, are warm, dry
and clear with occasional frost in the interior. Winter
sunshine averages almost 7 hours a day, some of the highest
in the country. The province boasts an all-year tourism
friendly climate. Sea temperatures are also relatively
stable, averaging 210C around the year providing
possibilities for a diversity of aquatic activities in any
season, including diving, fishing, swimming, boating and
surfing.
1.1.2 Rivers and Lakes
Although there are many rivers and lakes in the country,
none of them
are navigable due to the paucity of rainfall and lack of
perennial
snows. There are many man-made dams with resort facilities
and in the
north the natural lakes and estuaries of Maputaland and the
St Lucia
Wetland Park constitutes a world heritage site.
1.1.3 Vegetation
Due to the varied climate of the country, South Africa’s
vegetation is one of the most diverse in the world, ranging
from sub-tropical forest to desert scrub. South Africa is
also the only country to contain an entire floral kingdom,
the Cape fynbos, within is borders.
KwaZulu-Natal’s vegetation varies from tropical and
subtropical types at the coast, through rolling grasslands,
to tundra types in the high Drakensberg. As the best-
watered province, vegetation tends to be lush along the
coastal strip. Enormous coastal forests are found on some
of the highest sand dunes in the world along the coast
north of Richards Bay.
1.1.4 Resources
South Africa is the world’s largest producer of gold,
platinum, chromium, vanadium, manganese and alumino-
silicates. Kimberley’s Big Hole, where diamonds were mined,
is the largest hand-dug excavation on earth. The Western
Deep Levels gold mine is the world’s deepest, at 3 777
meters.
KwaZulu-Natal has an abundance of coal in the north of the
province as well as a variety of other minerals, and the
combination of its soils and climate make it ideal farming
country. Sugar production within the province is a
significant industry.
1.2 Demographics1.2.1 Lifestyle
The province of KwaZulu-Natal offers a relaxed lifestyle,
with access to virtually every major sporting, recreational
and cultural facility. Sophisticated urban facilities,
including music, art and theatre, are found close to the
natural attractions of Africa, including game reserves,
mountain scenery and endless beaches. As a whole, the
province provides every possible resource for the tourist
and is, indeed, geared for this industry.
1.2.2 Demographics
The 1996 Census figures place the present South African
population at 37,9 million. An update on Census data
population figures, provided by Statistics South Africa for
mid-2002, indicated that the population at that period was
estimated at 45,5 million. The average population growth
rate is 1,98%, although four provinces exceed this. KwaZulu-
Natal’s growth rate is 1,66% per year according to
Statistics South Africa (SSA). Also, within South Africa,
the economically active population was estimated at 14,5
million as of mid-1995, although this figure is not to be
relied upon too strongly. SSA’s latest figure for the
economically active sector of the population of the country
is 9,1 million (SSA 2000).
Women outnumber men, particularly in rural areas, although
the national male-female ratio is 48:51 (mid-2002, SSA).
Functional urbanisation, including informal settlements
around existing towns and cities, is approximately 52% for
South Africa (mid-2002 estimates, SSA) and, according to
SSA, 43% for KZN.
KwaZulu-Natal has the largest population of South Africa’s
nine provinces, at 9,2 million (2002), a figure which
includes estimates of reductions due to HIV/AIDS. This is
approximately 20,9% of the total South African population
(BMR 2000). Of this total, approximately 1,6 million people
in KwaZulu-Natal fall into the economically active category
consisting of those aged between 15 and 65 years.
Several general demographic trends have been identified
for the country as a whole - continuing urbanisation, rapid
population growth, and a youthful population. However,
there has also has been a notable decrease in the work
force as a result of an increase in the effect of HIV/AIDS,
and the full effect of the pandemic has yet to be felt
amongst the workforce. The largest proportion of HIV/AIDS
deaths are being found to occur in KZN.
1.2.3 Political and Economic Profile, Socio-Economic
Infrastructure
Almost a decade ago South Africa undertook a transition
from minority to majority rule, with a fully democratic
election taking place in April 1994 for the first time.
Nelson Mandela, of the African National Congress, was
elected President, and his party obtained a large majority
(62,6%) of the votes. In the second democratic elections of
the country in June 1999, the ANC again obtained a large
majority and Thabo Mbeki was elected President.
The national government is made up of a State President, a
Deputy State President and a Cabinet representative of
parties elected during national elections. There are two
houses of Parliament, a National Assembly with 400 members,
and a Senate with 10 members from each region.
South Africa’s economy is based primarily on
manufacturing, mining and agriculture although the
contribution of financial services and business increased
from about 12% to nearly 18% during the nineties (South
Africa Yearbook 2000/01). The Government has also committed
itself to disciplined fiscal and monetary policies and the
pursuit of a mixed market economy. It is active in forging
multi-lateral and bi-lateral agreements and in seeking
regional and international linkages designed to promote the
country’s development. South Africa is a signatory to the
General Agreement on Tariffs and Trade (GATT), and efforts
are being directed at increasing local industrial
competitiveness.
The USA has identified South Africa as being one of ten
big emerging markets, and expects these ten markets to
double their share of global GDP to 20% by 2010, and to
increase their share of world exports to a figure greater
than that of Japan and the EU combined. Since the 1994
elections, over R2 billion in foreign investment has flowed
into South Africa. Foreign investor purchases on the
Johannesburg Stock Exchange increased from R4 billion in
1992 to R12 billion in 1993 and R22,4 billion in 1994
(Ernst and Young, Strategic Trends 1995/6). This increased
further to R60 billion in 1998 to more than R58 billion for
the first three quarters of 1999.
KwaZulu-Natal has until very recently been administered
jointly from Pietermaritzburg and Ulundi. During 2002
Pietermaritzburg was decided upon as the sole
administrative capital of the province.
The province has a monarch, King Goodwill Zwelithini, the
King of the Zulu nation. The provincial government is run
by a Premier and 10 Cabinet Ministers who represent major
parties which enjoyed success in provincial elections. The
KwaZulu-Natal Regional Legislature consists of 81 members
elected by voters in a system of proportional
representation from regional party lists. In terms of
Schedule 6 of Act 200 of 1983 (as amended) the province
will have executive and legislative competence within its
region over: agriculture, casinos, cultural affairs,
education, environment, health services, housing, language
policy, local government, nature conservation, police,
provincial public media, public transport, regional
planning, roads, road traffic regulations, tourism, trade
and industrial promotion, traditional authorities, urban
and rural development and welfare services.
The Premier of KwaZulu-Natal is Mr Lionel Mtshali, and the
provincial cabinet ministers with their respective
portfolios as of April 2003, are:
Agriculture and Environmental Affairs: Mr Dumisane
Makhaya
Economic Development and Tourism: Mr Roger
Burrows
Education and Culture: Mr Narend
Singh
Finance: Mr
Peter M Miller
Health:
Dr Zweli L Mkhize
Housing: Rev
Wilson Ngcobo
Public Works: Rev
Celani J Mthethwa
Social Welfare and Population Development: Prince
Gideon L Zulu
Traditional and Local Government Affairs:
iNkosi Bonga Mdletshe
Transport: Mr
S’bu Ndebele
Abundant natural and human resources have helped KwaZulu-
Natal to build an extensive and modern infrastructure and a
strong business and industrial base. Besides abundant
water, other natural resources include extensive coal
fields, a variety of strategic minerals, the cheapest
electrical power in the world, and a vast array of
important tourist resorts and attractions including some
500 kilometres of coastline.
Business benefits include an excellent communications
infrastructure, an abundance of labour, high standards of
local management as well as good institutional capacity,
which includes excellent banking, insurance and other
services in the province.
Schools are located throughout the province, while four
universities have campuses in the region. Public libraries,
technikons, teacher training colleges and other tertiary
institutions can be found in several centres.
The languages most widely used in KwaZulu-Natal are Zulu
and English.
1.2.4 Economic Regions
The nine provinces show some marked differences, with
highly skewed income and population profiles.
South Africa had a per capita income of R18 203 in 1999
(South Africa Yearbook 2000/01). This had been reduced to
R13 502 by 2000 (BMR). On a national population group
basis, whites have the highest average per capita personal
disposable income, of R50 804, followed by Asians with R25
541, coloureds with R12 690 and Africans with R7 567
(2000). The development process of the rapidly growing
black middle class has been accelerated by recent political
developments. The population benefited from real wage
increases as well as a rise in employment and during 1995
real per capita disposable income rose by 0,3%, the first
increase since 1988. The rate of increase in personal
disposable income has not been able to keep up with
spending, however, and combined with lower savings, implies
that much of consumer spending is still being financed by
credit (Economic Comment, 1996). Furthermore, a sharp
decrease in the value of the Rand had a serious detrimental
effect on disposable incomes nationwide in 2001 but there
was some recovery during 2002.
KZN was reported as having an annual household income of
R25 380 for 2000.
On a district basis, Gauteng is the most important in
economic terms, followed almost equally by the Durban
Metropolitan Area and the Cape Peninsula.
In 1997, South Africa had a work force of approximately
9,6 million. As specified earlier, this had decreased to
9,1 million by the end of 2000 (SSA). The total national
household expenditure was estimated at R603,6 billion for
2000.
1.3 Economic Sector Overview1.3.1 The KwaZulu-Natal Economy
Economic activities in KwaZulu-Natal are centred in the
Durban-Pinetown metropole and Pietermaritzburg, with
significant concentrations in the lower Umfolozi area
(Richards Bay/Empangeni), Klip River district (Ladysmith -
Emnambithi), and Newcastle - Madadeni region. The following
table presents the share in total employment in 1995 and
growth expectations in these areas: The following table
presents the share in
total
employment in 1995 and growth expectations in these areas:
Total Employment and Growth Expectations (1995)
Employment Share (%) Growth
Index (SA=100)
Pietermaritzburg 1,4 100,9
Durban-Pinetown 7,6 97,9
Lower Umfolozi 0,6
113,3
KlipRiver 0,5 106,1
Newcastle - Madadeni 0,7 104,4
Source: Bureau of Market Research
The following table presents various economic size and
growth statistics for KwaZulu-Natal:
Table 1.2 Size and Growth Statistics for KwaZulu-Natal
Value Compound
Annual % of SA
Employed Econ. Active
Labor Force, 1999 (000)
2 184 (1988-1993) -
1,8% 19.3
Real KZN GDP, 2000 R72 bn (1988-1993) 1,1%
12,6
Real KZN Income per capita,
2000 R10 592
16,4
Real KZN GDP per worker,
2000 (Rm) 32 967 (2000) 3,1%
12,6
Source: CSS/BMR/S A Yearbook 2001/02/SARBOver the period 1988 to 1993, KwaZulu-Natal outperformed
South Africa as a whole on several aspects e.g., although
the real growth in GGP for KwaZulu-Natal was only 0,1% per
annum, the growth in GDP was -0,1% per annum for South
Africa as a whole, over the period 1988 to 1993. Similarly,
the growth in real GDP per capita and per worker, over this
period, was –2,3% and 0,4% per annum respectively, for
South Africa. The South African GDP settled at 1,7% in 1997
and remained at about the same point for 1998. From 1998 to
1999 there was slightly higher growth to 1,9% and the GDP
growth for South Africa as a whole for 2000 showed real
recovery and was 3,1%. Mr Manuel’s Budget Speech in
February 2003 indicated that GDP grew by 3% in 2002 and
look set to increase on that during 2003.
The following table presents some comparison between
KwaZulu-Natal and South Africa of some economic indicators:
Indicator Statistics
KZN SA
Labour Force Participation
Rate, 1994 (%) 52,1
55,6
Labour Absorption
Capacity, 1991 (%) 55,9
61,1
Unemployment Rate, (2000)(%)
39,1
26,6
Personal Income to GDP,
1993 (%) 60,9
60,9
Source: CSS, SA Yearbook 2000/2001
KwaZulu-Natal was second only to Gauteng in terms of
percentage
contribution to SA's GDP:
Provincial Distribution of GDP 1998: R638 billion
Gauteng 38%
KwaZulu-Natal 15%
Western Cape 14%
Eastern Cape 8%
Mpumalanga 8%
Free State 6%
North West 5%
Limpopo 4%
Northern Cape 2%
Source: Source: SARB 2002
Several studies have shown a positive growth trend for
KwaZulu-Natal.
KwaZulu-Natal is ranked fourth amongst the provinces in
terms of growth in GDP over the periods 1997 - 1999, as the
following table shows:
Average Annual % Increase in Provincial GDP (1991-1994)
PROVINCE % INCREASE (1993-1994) (1991-1993)
Eastern Cape 10,8 11,7
Free State 10,7 10,3
Gauteng 10,7 12,0
KwaZulu-Natal 10,8 11,4
Mpumalanga 11,5 9,4
North-West 12,1 10,6
Northern Cape 9,5 11,1
Northern Province 9,0 11,4
Western Cape 11,6 11,9
The National Productivity Institute (NPI) defines labour
productivity as being the gross product at constant prices
to the labour input. Studies have shown that KwaZulu-
Natal’s labour productivity has improved since 1990, by a
compound annual growth rate of approximately 2,0% per annum.
Unit labour cost represents the cost of labour required to
produce one unit of output. KwaZulu-Natal is ranked second
in terms of increase in cost of labour since 1990, a
compound annual increase amounting to some 13,2% per year.
The ratio of capital to labour represents the ratio of
fixed capital stock to labour input. It is therefore an
indication of the change in capital intensity. Change in
capital intensity for KwaZulu-Natal has been growing by
about 3,8% per annum over the period 1990 to 1993.
The figure below shows the relative 2003/2004 budgets of
the nine regional governments. As befits the most populous
province, KwaZulu-Natal heads the list with R32,2 billion
allocated by the national treasury out of the R159 billion
total.
Table 1.5 2003/2004 Regional Budgets (R bn)
N.Cape 3.8
Mpumalanga 11.1
Free State 10.7
North West 12.9
W. Cape 15
Limpopo 21
Gauteng 25.8
E. Cape 26.4
KZN 32.2
Table 1.6 Sectoral Contribution (Total GGP: R159 billion)
SECTOR GGP % CONTRIBUTION
Agriculture R 2,8bn 5
Mining R 1,1bn 2
Manufacturing R 19,8bn 36
Electricity and Water R 1,1bn 2
Construction R 2,2bn 4
Commerce and Tourism R 11,0bn 20
Transport R 7,1bn 13
Financial R 9,9bn 18
Source: CSS
The importance of tourism as a contributor to the GGP of
KwaZulu-Natal is obvious, coming second only to
manufacturing.
1.3.2 Tourism Nodes
The KwaZulu-Natal region has a number of well defined
tourism nodes
in which tourism-specific development projects have been
successful
and new ones are encouraged. These are:
The Coastal Belt, divided into the North and South
Coasts
either side
of Durban and Maputaland in the far north, bordering on
Mozambique
The Drakensberg Mountains area backing onto the
mountain
Kingdom of
Lesotho, divided into the high Berg and the Little Berg or
foothills
The Midlands and Battlefields
Zululand including Maputaland
1.3.2.1 The Coastal Belt
Tourism in the Coastal Belt is based on the resources
provided by kilometres of beaches, warm seas and abundant
coastal vegetation. The northern sector contains the
Greater St Lucia Wetland Park, a declared World Heritage
site based on the Lake St Lucia wetland and lake system, as
well as a number of well-stocked game reserves run by
KwaZulu-Natal Wildlife. It is well provided with transport
routes in the form of freeways, national roads, toll roads
and other smaller, tarred roads. The main road between
Hluhluwe and Kosi Bay has been substantially upgraded and
many other roads in the area will soon also be upgraded
allowing easier access to the north east of the province.
There are railway lines for passengers and freight running
along both the north and south coasts, and inland following
the national road to Pietermaritzburg, Mooi River, Estcourt
and on to Johannesburg.
There are a number of small airports and airstrips
throughout the Coastal Belt and those located at Hluhluwe
and Mkuze are about to be upgraded.
Communications are excellent in this belt with telephone,
cellular (mobile) phone, and satellite network services
widespread. The Coastal Belt is also well provided with
water and electricity supplies.
1.3.2.2 The Drakensberg Mountains
The Drakensberg Mountain area, the province’s second World
Heritage Site, is easily accessible by road although many
of the roads in the higher or more remote areas are not
sealed. In some areas, use of 4 x 4 vehicles is advised.
There are many small airfields and air strips throughout
the area. The area is generally well provided with
electricity, telephone and water services.
1.3.2.3 The Midlands and Battlefields
The Midlands provides a wealth of tourism resources based
more on crafts, culture and history than is the case in the
other areas. An area scenic rolling hills, it provides
tourists with a wide range of possibilities, from game
reserves, resorts based on dams, to tourism adventures such
as the Battlefields Route based on the Anglo-Boer and Anglo-
Zulu wars in the Battlefields area.
1.3.2.4 Zululand
Zululand offers the mystique of the Zulu Kingdom with its
rich history and wealth of culture. The Kingdom of Zululand
and the associated monarchy draws people from all parts of
the globe.
Each area has a host of tourism trails for those who
desire more than just a lazy seaside holiday. Arts and
crafts trails including the popular Midlands Meander may be
found throughout the province. KwaZulu-Natal also pioneered
the Milescapes concept. These are essentially self-drive
tours of up to 100 kilometres taking visitors to venues of
particular interest to the north, south or west of Durban.
Maps and route details are available from tourist
information centres, and indicate points of interest from
nature reserves, hotels, restaurants, craft centres to
crocodile farms and art studios.
The province has an international airport at Durban as
well as numerous hardened/surfaced and grass light aircraft
fields near most of the major population centres. A new
international airport is being planned to the north of the
city at La Mercy.
Durban’s harbour is said to be the largest, busiest,
safest and most sheltered harbour on the African continent,
and the ninth largest in the world. Plans are at present
afoot for major further development of the port. The
harbour at Richards Bay, in the north of the province, is
the country’s second busiest harbour.
Chapter 2: The Tourism
Industry - Key Characteristics
|| Chapter 3: Tourism Principles and Practice ||
Chapter 4: Tourism Business Environment ||
Chapter 5: Foreign Investment ||
Chapter 6: Labour Relations ||
Chapter 7: Land Development Application Procedures
| |