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Executive Summary SA TOURISM’S STRATEGIC PLAN FOR THE 5-YEAR PERIOD 2012/13 – 2016/17 & HIGH-LEVEL ANNUAL PERFORMANCE PLAN & BUDGET FOR 2012/13. For presentation to Portfolio Committee on 13 March 2012 CEO: Thulani Nzima. Our Mandate. - PowerPoint PPT Presentation
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1 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Executive Summary
SA TOURISM’S STRATEGIC PLAN FOR THE 5-YEAR PERIOD 2012/13 – 2016/17 & HIGH-LEVEL ANNUAL PERFORMANCE
PLAN & BUDGET FOR 2012/13
For presentation to Portfolio Committee on 13 March 2012CEO: Thulani Nzima
3 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Our Mandate
4 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Convince consumers that SA can be
trusted to deliver memorable experiences
Convince consumers that SA can be
trusted to deliver memorable experiences
Engage Stakeholders to deliver quality
visitor experience that re-affirm the
brand promise
Engage Stakeholders to deliver quality
visitor experience that re-affirm the
brand promise
Work the distribution channel
to promote SA
Work the distribution channel
to promote SA
Energise and empower the
organisation to innovate and
achieve excellence
Energise and empower the
organisation to innovate and
achieve excellence
Invest only in selected markets to deliver volume and
value
Invest only in selected markets to deliver volume and
value
SA Tourism mandate, key business objectives and strategies effective 1 April 2011
Create a thriving tourism sector by making South Africa a destination of choice
Create a thriving tourism sector by making South Africa a destination of choice
Possible Tourism sector outcome which SAT will need to deliver against
SAT outcome
Strategies to deliver
outcome
Make the SA brand a Global Player in portfolio markets which will grow tourism’s trended revenue to the economy by 1.5%
p.a
Make the SA brand a Global Player in portfolio markets which will grow tourism’s trended revenue to the economy by 1.5%
p.a
5 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Linking to Government’s Key Priorities
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Linking Government priorities to SA Tourism priorities
1. Government has set five key priorities for the next five years including the creation of decent work and sustainable livelihoods, education, health, rural development including food security and land reform and the fight against crime and corruption.
2. These five priorities has been converted into Government’s Medium-Term Strategic Framework which highlights 10 priorities and 12 outcomes over the MTEF period. Tourism falls under the Economic Sectors and Employment Cluster, one of the 5 Government clusters and its actions appear under Outcome 4: “Decent employment through inclusive economic growth”.
7 Copyright © 2011 SA Tourism. Not to be reproduced without permission
National Tourism Sector Strategy
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NTSS – Targets
Arrivals – 15 million foreign arrivals by 2020.
Domestic tourists to grow by 3.4m from 14.6m in 2009 to 18m by 2020 and total trips to grow from 30m to 54m, with holiday trips increasing by 5m.
GDP – Increase tourism’s contribution to the GDP from an estimated R189.4 billion in 2009 to R499 billion by 2020.
Contribution of domestic tourism to GDP to grow to 60% from 52% in 2009.
Job creation – the tourism sector is committed to consolidating its efforts to create jobs and aims to create 225 000 jobs by 2020 – 177 000 in the tourism sector and 48 000 through direct government investment.
9 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Our Research-based Methodology
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The review adopts a “fresh eyes” approach by considering all the countries in the world, and filtering them based on a set of objective attractiveness criteria
Consideration Set
Attractive Markets
COST-BENEFIT EVALUATION &
UNDERSTANDING OF MARKETING ISSUES
CORE, TACTICAL, INVESTMENT &
WATCHLIST MARKETS
Salient Set
Qualitative process involving a panel
discussion
Approach to Portfolio Review
11 Copyright © 2011 SA Tourism. Not to be reproduced without permission
How attractive are these markets in the short term and the
long term?
Core, tactical, investment and
watch-list markets
2nd filter
Key steps of the Portfolio Review Process
Application of cost-benefit evaluation
1st filter
4th filter
Exclude markets with less than 20,000 arrivals p.a. or
no airlift
3rd filter
Markets with less than 20,000 arrivals p.a. in 2008 but with airlift
(strategic hubs)
Final portfolio
Top sub-Saharan Africa markets PLUS Africa land
markets
Exclude sub-Saharan Africa
Exclude markets with less than 4 million
people living in urban areas and less than 20,000 arrivals p.a.
or no airlift
Include all Africa land markets*
Exclude markets of less than 3 million people or GDP per capita is less than
US$2,000
Top 50 markets in terms of outbound volume and value
Salient set
*Africa land markets are markets where more than 60% of arrivals to SA arrive by land.
12 Copyright © 2011 SA Tourism. Not to be reproduced without permission
The results of the evaluation will illustrate the suggested core, tactical,
investment and watch-list markets within each region
Results of Portfolio Review
Less Attractive But Easier
Tactical Markets Markets where there are particular
opportunities, i.e. “low hanging fruit”
15% of organisation’s effort deployed against these markets
Attractive And Easier
Core Markets Markets that deliver the “bread &
butter” 60% of organisation’s effort
deployed against these markets Best capabilities allocated to these
marketsLess Attractive And Difficult
Watch-list Markets
Markets that are on the radar Activity in these markets will only
occur if there is spare capacity in the organisation
5% of organisation’s effort deployed against these markets
Attractive But Difficult
Investment Markets Invest in these markets ahead of
return, i.e. invest for the future
20% of organisation’s effort deployed against these markets
Core markets are those which present the
greatest opportunity
Tactical markets are those which should be considered
for specific, tactical opportunities
Watch-list markets need to be watched for value segments
Attractiveness of Market
Ea
sie
r to
Ta
rge
t
Investment markets are those where some
investment is made for returns in future
13 Copyright © 2011 SA Tourism. Not to be reproduced without permission
The 4th Portfolio Review process will end March 2014; the 5th Portfolio Review will take place during July 2012 and fully implemented by 01/04/2014
Africa & Middle East
UK & Americas Asia & Australasia Europe
Core Markets
Angola
Botswana
Kenya
Nigeria
South Africa*
USA*Australia*
India
France*
Germany
Netherlands
UK*
Investment Markets
DRC
Mozambique
Brazil
Canada
China (incl. Hong Kong)
Japan
Belgium
Italy
Sweden
Tactical MarketsLesotho
SwazilandNew Zealand Ireland
Watch-list Markets
Malawi
Namibia
Zambia
Zimbabwe
Argentina Republic of Korea
Austria
Denmark
Portugal
Spain
Switzerland
Strategic Importance
Bahrain, Oman, Qatar, Saudi Arabia
Strategic Air Links/Hubs
Egypt, Ethiopia,
Ghana, Mauritius, Tanzania,
Senegal, UAE
Malaysia
Singapore
4th Portfolio
2011-20142008 – 20102005 – 20072002 – 2004
Reg
ion
al D
irec
tor
Sta
keh
old
er
Man
ager
Glo
bal
C
han
nel
M
anag
er
Re
sp
on
sib
ilit
y
Co
un
try
Man
ager
*Indicates Business Tourism Hubs
14 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Africa delivers the
highest number of
tourist arrivals
Africa delivers the
highest number of
tourist arrivals
Africa delivers more than 70% of all arrivals every year Tourist arrivals from Africa grew at ~10.3% annually from 2003–2010. Africa’s
contribution to the total tourist arrivals to South Africa increased from 68.1% in 2003 to 77.0% in 2010
Africa delivers more than 70% of all arrivals every year Tourist arrivals from Africa grew at ~10.3% annually from 2003–2010. Africa’s
contribution to the total tourist arrivals to South Africa increased from 68.1% in 2003 to 77.0% in 2010
Africa is growingAfrica is growing
Africa witnessed a remarkable growth in GDP and GDP per Capita (18.9% and 16.3%, respectively), from 2003–2008
Tourist arrivals from Africa to South Africa increased at a much faster rate of 10.3%, compared to the growth of 3.3% in tourist arrivals from rest of the world, during 2003–2010
The value that Africa brings to the South African economy goes beyond tourism (i.e., hotels and attractions), and has major benefits for the whole economy (especially in manufacturing and other downstream industries)
Africa witnessed a remarkable growth in GDP and GDP per Capita (18.9% and 16.3%, respectively), from 2003–2008
Tourist arrivals from Africa to South Africa increased at a much faster rate of 10.3%, compared to the growth of 3.3% in tourist arrivals from rest of the world, during 2003–2010
The value that Africa brings to the South African economy goes beyond tourism (i.e., hotels and attractions), and has major benefits for the whole economy (especially in manufacturing and other downstream industries)
Africa is accessibleAfrica is
accessible
Africa is South Africa’s natural hinterland
– Accessibility of South Africa to a significant number of travellers, particularly those in Southern African countries, and their familiarity with the country, are the major benefits
– South Africa captures more than 50% of total outbound departures from African countries
Africa is South Africa’s natural hinterland
– Accessibility of South Africa to a significant number of travellers, particularly those in Southern African countries, and their familiarity with the country, are the major benefits
– South Africa captures more than 50% of total outbound departures from African countries
Africa still represents untapped potential
Africa still represents untapped potential
South Africa has the potential to further exploit its proximity and strength as a choice destination in the African market, which is still emerging from purpose-based travel into a true leisure-driven tourism market
South Africa receives a relatively small number of travellers from countries other than African countries, which implies that there is tremendous opportunity for growth
South Africa has the potential to further exploit its proximity and strength as a choice destination in the African market, which is still emerging from purpose-based travel into a true leisure-driven tourism market
South Africa receives a relatively small number of travellers from countries other than African countries, which implies that there is tremendous opportunity for growth
Source: Grail Research & Monitor Analysis
Importance of Africa to meet NTSS targets
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Convince consumers that SA can be trusted to
deliver memorable experiences
Convince consumers that SA can be trusted to
deliver memorable experiences
Engage Stakeholders to deliver quality visitor
experience that re-affirm the brand promise
Engage Stakeholders to deliver quality visitor
experience that re-affirm the brand promise
Work the distribution channel to promote SAWork the distribution
channel to promote SA
Energise and empower the organisation to
innovate and achieve excellence
Energise and empower the organisation to
innovate and achieve excellence
Invest only in selected markets to deliver volume and value
Invest only in selected markets to deliver volume and value
Our Strategies to deliver on the outcome
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These 5 strategies have been converted to 5 Programmes to comply with the National Treasury Annual Resource Plan template:
Programme 1: International Portfolio Marketing (purpose:to increase international arrivals focusing on Africa growth in particular & spend by marketing SA internationally and aggressively grow Africa)
Programme 2: Head Office marketing (purpose: provision of support & toolkits for international regions to promote global visibility of SA brand & to aggressively promote a culture of domestic tourism)
Programme 3: Grading of tourism products (purpose: promote word-of-mouth international and domestic marketing, following quality delivery of experiences to visiting international and domestic tourists, through the grading of tourism establishments using global best-practice grading systems and business processes)
Programme 4: Head Office financial support (purpose: provision of real-time accurate financial information and business processes to ensure quality execution of approved Business Plans & Budgets while complying with policies and procedures (which will maximise our chances to maintain clean audit reports)
Programme 5: Head Office administrative support (purpose: 1.provision of human resources, systems and structures to support execution of all approved Business Plans and Budgets 2. To fully implement the Convention Bureau & achieve its KPA’s)
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Six Strategic Orientated Goals
1. Annual arrivals to South Africa increase to 12 068 030 by 2015 (NTSS target) and 15 000 000 by 2020 while the number of domestic tourists per annum should increase to 16 million by 2015;
2. The average spend per arrival in South Africa is R 12 536 per person during the 2012 calendar year;
3. Become the most preferred Tourism Brand by obtaining an average positive brand awareness percentage of 79% in all the markets where Brand Tracking is done;
4. To deliver on the quality experience expected by the international and domestic tourist by having at least graded 6 172 tourism products in South Africa by 31 March 2013;
5. To continuously improve internal policies, procedures and business processes so that it supports the spending of no less than 98% or no more than 102% of its consolidated annual approved budget as well as the achievement of clean annual audit reports
6. To grow South Africa’s business events industry, and continuously improve the culture within the organisation by living the SAT values and thereby reduce its average annual turnover rate to no more than 10% while achieving an average score of at least 3,3 in the Deloitte Best-Company-to-Work-for survey.
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Strategic Outcome Orientated Goal
Number 1
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Strategic Outcome Oriented Goal 1: To market South Africa in such a way that annual arrivals to South Africa increase to 12 068 030 by 2015 and 15 000 000 by 2020
Historic arrival targets and actual arrivals were as follows: 2009 actual arrivals: 9 933 966 (3,6% increase over 2008 actual) 2010 actual arrivals: 11 395 700 (14,7% increase over 2009 actual) 2011 calendar year arrival target: 11 504 920 ( 0,96% increase over 2010 actual)
2012 calendar year arrival target: 11 922 201 (Tourist: 8 460 226) ( 3,6% increase in arrivals over 2011 target)
2013 calendar year arrival target: 12 343 315 ( 3,5% increase over 2012 target) 2014 calendar year arrival target: 12 683 472 ( 2,7% increase over 2013 target)
At its September 2011 Board meeting the Board agreed that SAT must include tourist targets as well. Not having adequate data points (every 5 years for 1 year projected) to set these tourist targets, the following must be noted:
The tourist arrival target is estimated using the annual average incidence of tourist arrivals within the visitor arrivals for 2009 and 2010.
This method of estimation is not reliable as the number of tourist arriving each month is variable. The data on tourist arrivals is an estimation only and not targets.
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MTEF allocation to aggressively grow Africa
Goal 1 Continued……
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Objectives to drive growth from the continent to meet NTSS targets
Increasing regional awareness of South Africa as a tourism and leisure destination.
Increase arrivals and spend from Africa to contribute to GDP and job creation.
In SADC , our market penetration is high but opportunities exist to promote repeat travel and to turn shoppers into holiday travel.
In Africa Air markets, sizable opportunity exists to attract high value business and leisure traveller.
Setting up five marketing offices in key African markets by 2020.
Implementation of regional tourism programmes.
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Overview – Air markets
In addition to developing each market individually, we will look at growing arrivals in key regional markets adjacent to Kenya and Nigeria, with spillover effects from activities in the DRC
Summary of
Opportunity
Summary of
Opportunity
Key Elements
of Approach
Key Elements
of Approach
East African Regional Strategy
East African Regional Strategy
Kenya is a relatively small market on a standalone basis, with only ~32k arrivals in 2010
Serving additional EAC countries, such as Uganda and Tanzania would be beneficial Combined arrivals of
over 70k Similar consumers Good regional
integration and growth Large regional market potential suggests the need to establish presence in the market rapidly
This presence will start immediately by building key relationships (e.g., media, trade, etc.) to be leveraged for winning in these markets
In the short term, we will start developing a fully-fledged regional strategy for the EAC
West African Quick Win Strategy
West African Quick Win Strategy
The Nigerian market is a large, and fast growing market
Serving Ghana adds ~20k arrivals to the Nigerian market
Arrivals from Ghana are growing fast
Combined arrivals from Ghana and Nigeria represent ~81% of ECOWAS’s arrivals or ~70k arrivals Our strategy in West Africa will include showing, in the short term, our presence in Ghana by developing critical trade and media partnerships and making very targeted investments in the market
In addition, we will build our understanding of consumers and trade in Ghana through targeted research
Finally, we will continue to monitor the market’s growth and adapt our investment decisions in the long term
Central African Spillover Effect
Central African Spillover Effect
The DRC market remains an investment market
Its high tourism potential, however, warrants increased investment
Due to the proximity and high connectivity between the DRC and Congo-Brazaville, any activities in the DRC will have spillover effects into Congo-Brazaville
Limited additional effort is required in the short to medium term as effects will automatically spill over with no additional effort
We will, however, continue to monitor Congo-Brazaville and other surrounding Central African states to leverage opportunities as they arise
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Arrivals targets for Africa – 5 years
2009 Actual
2010 Actual 2012 Target
% growth over 2011 Stretch
% growth over 2010 2013 P
% growth over 2012 2014P
% growth over 2013 2015P
% growth over 2014
Africa - Air 317,122 358,809 377,642 3.9% 5.2% 385,225 2.0% 392,713 1.9% 400,270 1.9%
Angola 39,207 39,557 45,548 7.1% 15.1% 47,421 4.1% 49,300 4.0% 51,486 4.4%
DRC 31,998 32,099 36,912 7.4% 15.0% 41,272 11.8% 45,686 10.7% 48,771 6.8%
Kenya 28,196 32,129 34,119 4.3% 6.2% 34,799 2.0% 35,669 2.5% 36,451 2.2%
Nigeria 45,527 49,520 55,559 3.4% 12.2% 56,228 1.2% 56,553 0.6% 58,057 2.7%
Other Air 172,194 205,504 205,504 2.8% 0.0% 205,504 0.0% 205,504 0.0% 205,504 0.0%
Africa - Land 7,490,425 8,498,735 8,959,083 3.6% 5.4% 9,312,060 3.9% 9,580,773 2.9% 9,881,328 3.1%
Botsw ana 836,072 829,928 858,315 3.4% 3.4% 866,688 1.0% 889,555 2.6% 900,940 1.3%
Lesotho 2,098,278 2,679,106 2,875,433 5.7% 7.3% 3,082,726 7.2% 3,090,018 0.2% 3,097,311 0.2%
Malaw i 152,358 137,062 148,949 8.7% 8.7% 149,642 0.5% 150,336 0.5% 151,029 0.5%
Mozambique 1,361,133 1,329,590 1,537,567 11.2% 15.6% 1,660,922 8.0% 1,885,970 13.5% 2,154,340 14.2%
Namibia 216,698 226,697 226,697 0.0% 0.0% 227,117 0.2% 227,327 0.1% 227,537 0.1%
Sw aziland 1,087,739 1,038,047 1,041,161 -1.2% 0.3% 1,043,804 0.3% 1,046,682 0.3% 1,049,561 0.3%
Zambia 164,276 172,315 176,628 2.5% 2.5% 177,533 0.5% 178,439 0.5% 179,345 0.5%
Zimbabw e 1,573,871 2,085,990 2,094,334 -1.6% 0.4% 2,103,627 0.4% 2,112,446 0.4% 2,121,265 0.4%
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Implementation Timeline
AngolaAngola
DRCDRC
KenyaKenya
NigeriaNigeria
Year 1 Years 2-3 Years 4-5
Market preparation
Develop trade environment
Start to develop consumer-facing communication
Office set-up
Implementation of activities and monitoring the market
Review of activitiesActivity planning and development
of baseline to monitor
Review office set up
Market monitoringDevelopment of baseline to monitor
Office set-up
Implementation of activities and monitoring the market
Review of activitiesActivity planning and
development of baseline to monitor
Review office set up
Quick Wins in Uganda, Tanzania Develop and Implement Regional Strategy in the EAC
Capture Quick Wins in Ghana
Office set-up
Implementation of activities and monitoring the market
Review of activitiesActivity planning and
development of baseline to monitor
Review office set up
Source: Grail Research & Monitor Analysis
Develop and Implement Ghana Strategy
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Strategic Outcome Orientated Goal
Number 2
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Domestic Tourism
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Overall results
Key Metrics 2007 2008 2009 2010
Domestic Travel
Incidence
Annual 43.5% 46.5% 47.6% 43.0%
Monthly1 9.9% 9.0% 8.2% 7.9%
Number of Trips
Annual 35.9 Million 32.9 Million 30.3 Million 29.7 Million
By PurposeVFR: 68%, Holiday: 16%, Business: 7%, Religious:
7%, Medical: 1%
VFR: 71%, Holiday: 16%, Business: 5%, Religious:
5%, Medical: 2%
VFR: 76%, Holiday: 12%, Business: 5%, Religious:
5%, Medical: 1%
VFR: 74%, Holiday: 13%, Business: 5%, Religious:
6%, Medical: 1%
Spend
Total Annual Spend
R20.0 Billion R25.8 Billion R22.4 Billion R21.1 Billion
By Purpose
VFR: 45%, Holiday: 37%, Business: 14%,
Religious: 3%, Medical: 0%
VFR: 45%, Holiday: 39%, Business: 12%,
Religious: 3%, Medical: 2%
VFR: 59%, Holiday: 22%, Business: 17%,
Religious: 2%, Medical: 1%
VFR: 51%, Holiday: 31%, Business: 14%,
Religious: 3%, Medical: 0%
Average Spend per Trip
/ per DayR550 / Trip; R120 / Day R780 / Trip; R170 / Day R730 / Trip; R170 / Day R710 / Trip; R160 / Day
Trip Length
Total Annual Bed Nights
157.8 Million 149.0 Million 128.4 Million 130.8 Million
Average Nights per Trip
4.4 4.5 4.2 4.4
28 Copyright © 2011 SA Tourism. Not to be reproduced without permission
NTSS Objectives Related to Domestic Tourism
Keeping in mind the targets set out in the NTSS, it is important to identify the most attractive segments on which to focus activation efforts
Note: 1The classification of the consumer-level job required is a subjective evaluationSource: Monitor/ Grail Analysis; National Tourism Sector Strategy, February 2011, Department of Tourism, Republic of South Africa
Objective Measures and Targets2009 Baseline
2015 Target
2020 Target
Consumer-level Job1
To grow the tourism sector’s absolute contribution to the economy
Increase number of domestic tourists - No. of adult travellers - Population penetration - Total Domestic Trips
14.6 Mn48%30.3 Mn
16 Mn
40 Mn
18 Mn
54 Mn
GrowthGrowthGrowth
Increase domestic tourism’s contribution to the tourism economy
Domestic tourism as a contribution to tourism’s overall contribution to GDP 52% 55% 60% Growth
Upper LSM consumers: change perceptions of taking a South African holiday versus outbound holidays
No baseline
- - Culture Transformation
Middle LSM consumers: increase level of knowledge, understanding and propensity to take holidays
No baseline
- - Culture Transformation
Increase in domestic holiday travel across all markets - No. of first-time holiday travellers - Levels of, and penetration into, black market for domestic leisure tourism - Holiday travel penetration by LSM - Increase affordable and accessible tourism experiences for the domestic market - Total no. of holiday trips
No baselineNo baselineNo baselineNo baseline
4 Mn
- - - -
6 Mn
- - - -
9 Mn
Culture TransformationCulture TransformationCulture TransformationN/A
Culture Transformation
Entrench a tourism culture among South Africans
Build a culture of embracing tourism among South Africans - Increase in levels of awareness of tourism and its value within South Africa - Increase in levels of community participation in the sector - Enhance social tourism programmes
No baselineNo baselineNo baseline
- - -
- - -
Culture TransformationN/AN/A
Address the issue of geographic, seasonal and rural spread
Increase geographic spread - Total domestic bed nights 128.4 Mn 20% 34% Growth
Increase the level of tourism to rural areas - Domestic arrivals and bed nights in rural areas No
baseline - - Culture
Transformation
Decrease seasonality - Increase in share of bed nights spent in the low-season months 5.3% 7.1% 10% Growth
29 Copyright © 2011 SA Tourism. Not to be reproduced without permission
New Domestic Strategy Formulation
Project ScopeProject Scope Understand the current situation of the domestic tourism market in terms of:– Macro-environment analysis– Sector overview
Research and segment the South African domestic traveller population based on:– Needs and attitudes related to travel– Travel behaviour, buying process, etc.
Develop high-level marketing strategies for the prioritised segments by:– Understanding the impact of economic
conditions on travel behaviour– Developing high level activation
strategies to target prioritised segments
– Creating message themes towards transforming tourism culture in traveller segments
Understand the current situation of the domestic tourism market in terms of:– Macro-environment analysis– Sector overview
Research and segment the South African domestic traveller population based on:– Needs and attitudes related to travel– Travel behaviour, buying process, etc.
Develop high-level marketing strategies for the prioritised segments by:– Understanding the impact of economic
conditions on travel behaviour– Developing high level activation
strategies to target prioritised segments
– Creating message themes towards transforming tourism culture in traveller segments
Project Objectives
To segment South African domestic
travellers into groups that share similar needs and
behaviours, and provide recommendations around the marketing strategy to
engage and increase participation of these segments in domestic
tourism in South Africa. This would enable SAT to meet its key objectives around
tourism culture transformation and
growth
30 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Possible Market
Note: 1 2010 figures; As per UNISA, 2~22 Mn people in SA earned less than ZAR 3,000-3,500 pm in 2010Source: Monitor/ Grail Analysis; SAT Domestic Surveys
The target market represents 8.2Mn South Africans, all over the age of 18 and earning a personal monthly income of R3,000 or more
The target market represents 8.2Mn South Africans, all over the age of 18 and earning a personal monthly income of R3,000 or more
The study looked at South African adults earning more than R3,000 per month. Leaving a possible market of ~8.2 Mn people to target
50 Mn1
(100% of total)
Total South African population
8.2Mn2
(16.4% of total)
Adults earning more than R3,000 per month (personal income)
30.3 Mn
(60.6% of total)
Adult population over the age of 18
years
A previous SAT study has shown that... A previous SAT study has shown that...
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Segmenting the possible market
Low Income Middle Income High Income MI Middle – High Income MI
High Income
All Ages Black, Coloured/ Indian Black, Coloured/ Indian White W All Races
White, Coloured/ Indian Black 25 - 34
35+ 25 - 45 18 - 24 25 - 45 46+
VFR No Kids
Holiday
Others
Others KidsHoliday
VFR
Low Income Singles & Couples
Low Income FamiliesEstablished Holiday
Families
Seasoned Leisure Seekers
High-Life Enthusiasts
Business Travellers
Well-to-Do Mzansi Families
Low Income Black
Singles
Older High
Income
New Horizon Families
Older Middle Income Whites
Black Single-Parent Families
Up and Coming Black Singles
Using the action segmentation methodology, the available market is grouped into 14 distinct segments based on similarities in travel behaviour and preferences
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Understanding More about the Most Attractive Segments
Overview of Prioritised Segments
Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011
Spontaneous Budget Explorers
Spontaneous Budget Explorers
New Horizon New Horizon FamiliesFamilies
New Horizon New Horizon FamiliesFamilies
High-Life Enthusiasts
High-Life Enthusiasts
Seasoned Leisure Seekers
Seasoned Leisure Seekers
Well-to-Do Mzansi Families
Well-to-Do Mzansi Families
35+ Black, Coloured
and Indian Income range:
R5,001- R10,000
25-45 Black, Coloured
and Indian Income range:
R10,001+
25-45 White Income range:
R5,001+
18-45 Black, Coloured
and Indian Income range:
R10,001+
18-24 All races Income range:
R5,001+
Travel is a way to discover new
people, places and adventures. Consumers in this segment travel to
get away from the monotony of daily life; to add to their life experiences and
fond memories
Travel is a way to educate their
children, and to provide them with the opportunity to
broaden their perspectives. It is
also seen as quality time for
the family to spend together,
and a reward for hard work
Travel is a way to boost one’s
social status, and to experience the finer things in life in new and different settings
Travel is a way of life and
something of a necessity. Having grown up going on regular holidays,
this group of consumers
understands the value of travel
experiences and memories over commodities
Travel is all about escaping the
city, and being able to spend
time with friends and
family in new and different locations.
To a certain extent, travel is
also about exposing the children to
alternative ways of life and activities
Avg. Length of Stay: 5.2 nights
Trips/year: 3.1 Avg. Spend:
R1,160.50
Avg. Length of Stay: 4.5 nights
Trips/year: 3.1 Avg. Spend:
R1,265.54
Avg. Length of Stay: 7.7 nights
Trips/year: 4.4 Avg. Spend:
R1,853.40
Avg. Length of Stay: 5.6 nights
Trips/year: 3.2 Avg. Spend:
R1,687.80
Avg. Length of Stay: 5.4 nights
Trips/year: 3 Avg. Spend:
R1,252.00
33 Copyright © 2011 SA Tourism. Not to be reproduced without permission
Integrated Marketing Activation
Source: Monitor/ Grail Analysis
The umbrella strategy combines aspects from all segments to create awareness and positivity around tourism for all South Africans
Value PropositionValue Proposition
Travelling in South Africa is not only a great way to explore the country and discover the many reasons why the rest of the world wants to visit, but also an accessible way to escape and have fun with family and friends
Have fun in new/ different surroundings, whether with existing friends or meeting new friends along the way
Spend quality family time and broaden the family’s horizons, while being rewarded for hard work
Domestic travel is the quickest and easiest way to enjoy invaluable and enviable world-class experiences
South Africa has so many different places and ways to escape, relax and spend quality time with loved ones
Break away from daily pressures, whether relaxing with family or having good times with friends
Umbrella StrategyUmbrella Strategy
Spontaneous Budget
Explorers
Spontaneous Budget
Explorers
New Horizon New Horizon FamiliesFamilies
New Horizon New Horizon FamiliesFamilies
High-Life EnthusiastsHigh-Life
Enthusiasts
Seasoned Leisure Seekers
Seasoned Leisure Seekers
Well-to-Do Mzansi
Families
Well-to-Do Mzansi
Families
Products Products
Lots of activities with friends without being prescriptive
Accessible and informative family holidays
Glamorous and comfortable holidays
Explore hidden cultural, culinary and landscape gems
Hassle free and comfortable getaways
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NDTNDT
Develop and execute a national educational campaign in collaboration with the Department of Education to build awareness around tourism and its value to South Africa
High-level Implementation Plan
Roles and Responsibilities
Source: Monitor/ Grail Analysis
ActivityActivity
These roles and responsibilities extend to the more specific activities required, with us, SAT taking the lead on activating the market through both national-level demand-building...
Activating the Market:
Demand Building
Activating the Market:
Demand Building
SATSAT
Provide direction to advertising agency in development of the national marketing communication campaign
– Oversee all elements of the campaign, including integrated media strategy
Work to disseminate the planned key message to industry and channel partners to enable understanding and alignment
Develop toolkit to guide provincial and local players in their communication to ensure alignment with national messaging objectives
Provincial and Local Authorities
Provincial and Local Authorities
Develop provincial strategy and messaging relevant to brand building at a more general level
Fund, and oversee, development of provincial marketing communication campaigns in line with Toolkit developed by SAT
IndustryIndustry
Continue to prioritise consumer segments for activation according to business objectives
Understand national strategy and identify areas in which it aligns with business strategy
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Ensure that resources are allocated to both SAT and provincial and local authorities to enable them to activate the market effectively
Establish common platforms where stakeholders can discuss issues around collaboration
High-level Implementation Plan
Roles and Responsibilities
Source: Monitor/ Grail Analysis
ActivityActivity
And overseeing all elements of fulfilment through both SAT-led activity, and the provision of guidelines to assist collaborators in industry and government
Activating the Market:
Fulfilment
Activating the Market:
Fulfilment
Oversee development and dissemination of information through physical and online channels
Provide insight into segment information needs and product needs to relevant industry and channel partners
– Collaborate to develop and disseminate information and packages Investigate alternative physical channels and develop JMAs where possible to further the accessibility of products
Identify and provide training to channel partners to enable capability building
Using toolkit and guidelines provided by SAT, prioritise segments that are well-suited to activation by the province and/ or cities
Oversee development and dissemination of information brochures relevant to provincial strategy
Provide direction for provincial information needs to relevant industry and channel partners
Collaborate with industry and channel partners to develop packages that are aligned with provincial strategy
Collaborate with SAT and provincial authorities to provide product-specific information to be delivered to prioritised consumers through relevant information gathering channels
Collaborate with SAT and provincial authorities to develop product packages relevant to prioritised consumer segments
Make space available for information dissemination
– E.g., Pamphlet distribution at front desks of car hire companies, hotel reception, travel agency windows, airline magazines
NDTNDT SATSAT Provincial and Local Authorities
Provincial and Local Authorities IndustryIndustry
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Co-ordinate, and fund, the audit of available product
Work with other government bodies, industry and industry bodies to move development of product forward
Liaise with other government data collection agencies (e.g., StatsSA) to ensure that SAT is getting the required information and data
Co-ordinate and help to connect SAT to other parties collecting information that may be useful for tracking of the market (e.g., GCIS)
High-level Implementation Plan
Roles and Responsibilities
Source: Monitor/ Grail Analysis
ActivityActivity
In terms of tracking the market and ensuring supply, it is important for us, SAT to leverage key relationships and co-ordinate the various stakeholders to ensure that these elements of the strategy are executed
Tracking the Market
Tracking the Market
Ensuring Supply to the
Market
Ensuring Supply to the
Market
Track the evolution of the domestic market, based on key indicators
– Trigger in-depth analysis and updated segmentation of the market when necessitated by sustained changes to the market landscape
Evaluate the impact of activation activities on the travel behaviour of domestic consumers
Evaluate the response to products developed for specific segments
Work with the NDT to conduct an audit of products available
– Map against segment needs to identify gaps
Supplement research provided by SAT to enable tracking of the evolution of relevant consumer segments
Feed province-level data back to SAT
Adjust provincial and local strategy as necessary based on changes to the market and changes to the national strategy by SAT
Work together with SAT and NDT to identify product availability and gaps at provincial level
Work with SAT and NDT to find areas where national product development objectives align with the business objectives of the industry and can be filled through industry action and with industry funding
Make internal research and insights available to SAT, in order to enable a feedback loop that provides views on the consumer from multiple angles and sources
NDTNDT SATSAT Provincial and Local Authorities
Provincial and Local Authorities IndustryIndustry
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Introduction Growth Maturity
national campaign: travel like a tourist in your own country & be the envy of the worldTravel is an accessible way for you to live a vicarious life, if only for a short while. The possibilities and opportunities that lie in wait for you while you’re exploring are infinite and immediate.
insiders sa: see your world as the world sees itBy encouraging people to escape to their ideal destination in their minds, the segment relevant deals that will be within our communication mix simply serve as the confirmation and hassle-free way to access the market’s ideals.
Domestic Campaign
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Average Spend per Arrival
Goal 2 Continued………….
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Strategic Outcome Oriented Goal 2:
Goal Statement 2 Through the execution of its Strategic Plan and Annual Performance Plan, the
following spend per person should be achieved on average for every person arriving in South Africa:
2010/11 actual R8,900 per person (this excludes prepaid) 2011/12 calendar year target: R11 960 per person (this includes prepaid) 2012/13 calendar year target: R12 536 per person (now calculated NITS
i.e. includes prepaid) 2013/14 calendar year target: R13 360 per person
To market South Africa in such a way that the average spend per arrival in South Africa are at least R12 536 per person during the 2012 calendar year being in South Africa
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Spend per Country
Through the execution of its Strategic Plan and Annual Performance Plan, the following spend per beperson should achieved on average for every person arriving in South Africa:
CURRENCY 2011 2012
Africa - Air
Angola USD 4,421 4,639
DRC USD 3,460 3,634
Kenya USD 2,814 2,957
Nigeria USD 5,502 5,886
Africa - Land
Botswana ZAR 2,845 3,004
Lesotho ZAR 5,583 5,898
Malawi ZAR 9,349 9,928
Mozambique ZAR 12,068 12,744
Namibia ZAR 6,061 6,401
Swaziland ZAR 13,127 13,823
Zambia ZAR 8,706 9,194
Zimbabwe ZAR 6,757 6,748
Americas
Brazil REAL 9,487 10,084
Canada CANADIAN DOLLAR 6,086 6,317
USA USD 5,674 5,874
Asia & Australasia
Australia AUZ DOLLAR 6,531 6,812
China RMB 44,136 45,814
India RUPEE 195,101 212,883
Japan YEN 634,229 652,622
Europe
France EURO 3,384 3,506
Germany EURO 2,912 3,013
Italy EURO 3,446 3,498
Netherlands EURO 3,149 3,257
Sweden EURO 3,341 3,468
UK POUND 2,424 2,513
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Strategic Outcome Orientated Goal
Number 3
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Strategic Outcome Oriented Goal 3:
To become one of the most preferred Tourism Brand by 2014 as measured by the following criteria:
1. Brand Knowledge2. Brand Journey3. Conversion of positive brand awareness to sales
Increase Average Brand Awareness
Achieved 79% in Feb 2011 Target 79% Feb 2012 to 2015
To market South Africa in such a way that South Africa becomes a most preferred Tourism Brand by 2014 obtaining at least a 79% brand awareness
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2008 2009 2010 2011
MarketClosure
RatioRank
Closure Ratio
RankClosure
RatioRank
Closure Ratio
Rank
Netherlands 1 in 3.44 7 1 in 3.27 6 1 in 2.96 6 1 in 2.86 6
Germany 1 in 2.17 8 1 in 2.21 7 1 in 2.14 8 1 in 1.87 6
UK 1 in 2.16 7 1 in 2.40 7 1 in 2.24 8 1 in 1.94 3
France 1 in 3.44 8 1 in 3.90 8 1 in 3.57 8 1 in 3.18 8
USA 1 in 3.87 9 1 in 3.57 10 1 in 3.14 10 1 in 2.28 5
India 1 in 1.91 8 1 in 2.05 8 1 in 1.68 6 1 in 1.58 6
Australia 1 in 3.40 8 1 in 2.79 8 1 in 2.82 7 1 in 2.81 7
Kenya 1 in 1.24 1 1 in 1.06 4 1 in 1.30 2 1 in 1.61 3
Nigeria 1 in 2.09 5 1 in 1.39 8 1 in 1.77 6 1 in 1.74 2
Significantly below Average for 13 destinations (at 95% confidence level)
Conversion – Global Target (2008-11)
2008 2009 2010 2011
MarketClosure
RatioRank
Closure Ratio
RankClosure
RatioRank
Closure Ratio
Rank
Italy 1 in 3.44 7 1 in 4.09 8 1 in 3.98 6 1 in 3.87 8
China 1 in 2.10 8 1 in 2.44 6 1 in 3.45 7 1 in 3.07 6
Japan 1 in 6.36 9 1 in 4.77 9 1 in 4.44 8 1 in 4.43 9
Brazil NA NA NA NA 1 in 3.21 7 1 in 2.94 8
Significantly below Average for 13 destinations (at 95% confidence level)
Core Markets1
1 in 2.75 (2008)1 in 2.85 (2009)1 in 2.56 (2010)1 in 2.10 (2011)
Core Markets1
1 in 2.75 (2008)1 in 2.85 (2009)1 in 2.56 (2010)1 in 2.10 (2011)
Investment Markets2
1 in 2.78 (2008)1 in 3.12 (2009)1 in 3.76 (2010)1 in 3.26 (2011)
Investment Markets2
1 in 2.78 (2008)1 in 3.12 (2009)1 in 3.76 (2010)1 in 3.26 (2011)
Note: Global closure ratios weighted according to marketing spend in market; Closure Ratio = Visited in Past 18 Months / Sought Info in the Past; 1Core Markets’ score does not include Kenya and Nigeria for 2008 to 2010; 2Investment Markets’ score does not include the Brazil market for 2010Source: SAT BrandTracker Feb-08 through Nov-11 (merged for each year)
Global Closure Ratio1 in 2.75 (2008)1 in 2.88 (2009)1 in 2.65 (2010)1 in 2.19 (2011)
Global Closure Ratio1 in 2.75 (2008)1 in 2.88 (2009)1 in 2.65 (2010)1 in 2.19 (2011)
The closure ratio improved for both core markets and investment markets in 2011, as compared to 2010
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SA Brand Journey – Global Target (2008-11)
Compared to 2010, South Africa’s global scores on Positivity and Short-term Consideration have improved slightly in 2011
Note: In 2011, Core Markets weighted according to relative investment spend – Australia = 7.3%, France = 13%, Germany = 15.2%, India = 7.8%, Netherlands = 9.5%, UK = 20.2% , USA = 21.4%, Kenya = 2.7%, Nigeria = 2.7%; Investment Markets weighted according to – China = 38.9%, Italy = 25.8%, Japan = 11.6% and Brazil = 23.7%; Global Average, weighted according to investment spend – Core = 90%, Investment = 10%; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Feb-08 through Nov-11 (merged for each year)
Awareness PositivitySought Info in the
PastLikely to Visit in Next 18 Months
2008 Actual 76% 37% 22% 11%
2009 Actual 79% 38% 21% 11%
2010 Actual 79% 36% 22% 10%
2011 Actual 79% 37% 22% 12%
Global Targets
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Key Brand Journey Metrics (2011)
Note: Core Markets weighted according to relative investment spend – Australia = 7.3%, France = 13%, Germany = 15.2%, India = 7.8%, Netherlands = 9.5%, UK = 20.2% , USA = 21.4%, Kenya = 2.7%, Nigeria = 2.7%; Investment Markets weighted according to – China = 38.9%, Italy = 25.8%, Japan = 11.6% and Brazil = 23.7%; All rating questions have been analyzed using top 2 box approach Source: SAT BrandTracker Feb-11 and Nov-11
Total Awareness
PositivityLikely to Visit
in FutureLikely to Seek Info
Sought InfoPlan to Visit in Next 18
Months
Visited Recently
Australia 82% 27% 23% 10% 13% 6% 5%
France 77% 36% 25% 18% 17% 9% 5%
Germany 69% 35% 26% 14% 17% 8% 9%
India 64% 40% 34% 39% 34% 24% 21%
Netherlands 87% 42% 32% 18% 27% 10% 9%
UK 91% 35% 35% 15% 20% 12% 10%
USA 82% 40% 30% 21% 21% 12% 9%
Kenya 72% 44% 51% 38% 45% 31% 28%
Nigeria 77% 47% 60% 41% 34% 32% 19%
China 78% 29% 36% 29% 33% 18% 11%
Japan 26% 8% 13% 3% 5% 1% 1%
Italy 73% 44% 33% 26% 29% 13% 7%
Brazil 63% 31% 23% 21% 20% 8% 7%
Core Markets1 80% 37% 31% 20% 21% 12% 10%
Investment Markets 67% 31% 30% 23% 26% 12% 8%
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Metric NetherlandsGerman
yUK France USA India Australia Kenya Nigeria Italy China Japan Brazil
Memorable 4 3 6 9 5 6 4 2 4 4 9 8 8
Adventurous 1 2 3 3 3 1 1 1 4 2 2 2 1
Natural Wildlife Experience
1 4 2 2 3 1 1 1 2 3 2 3 1
Welcoming People You Can Interact With
6 8 9 8 5 6 7 8 4 7 9 9 5
A Wide Variety of Experiences
3 3 5 5 5 4 5 5 4 4 8 9 6
Breathtaking 1 2 3 7 4 2 4 3 5 2 2 6 8
Enriching 4 4 7 8 7 4 8 3 5 4 10 6 6
Unique 2 4 6 7 8 2 5 5 5 5 8 4 2
An Authentic Travel Experience
3 6 7 5 4 2 6 5 5 3 9 5 2
Value for Money 4 8 7 9 7 4 8 1 5 9 10 10 9
Safety & Security 8 10 10 8 5 8 9 10 8 7 10 10 9
Knowledge of the Brand – SA Rank Versus All Destinations (2011)
Ranking (out of 10) of The SA Brand Relative to Competitors Along Key Brand Attributes – 2011
Between 2010 and 2011, South Africa’s rankings improved in seven markets, most notably in Netherlands, India and Nigeria, while in China, the rankings have declined slightly in 2011
Note: For ranking purposes, if there are more than 10 destinations in survey, the following destinations are removed from rankings: USA followed by Italy and FranceSource: SAT BrandTracker Feb-11 and Nov-11
When SA is ranked highest amongst competitors When SA is ranked lowest amongst competitors
Significantly Above Average for 10 destinations (at 95% confidence level) Significantly Below Average for 10 destinations (at 95% confidence level)
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Strategic Outcome Orientated Goal
Number 4
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Strategic Outcome Oriented Goal 4:
To deliver on the quality experience expected by the international and domestic tourist by having at least graded 6 172 tourism products in South Africa by 31 March 2013
Quality experience by the international and domestic tourist
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Plaque has been re-designed with New Security Feature
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Accommodating visitors with disabilities
South Africa needs to know how friendly our tourism accommodation facilities are to people living with disabilities or impairments!
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Strategic Outcome Orientated Goal
Number 5
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Strategic Outcome Oriented Goal 5:
For South African Tourism to achieve, through amongst others, the continuous improvement of its internal policies and procedures and the vigorous compliance with its policies and procedures by employees:
11th consecutive unqualified annual external report To spend at least 98 – 102% of our annual budget included in the
Annual Resource Plan for 2012/13
To continuously improve internal policies, procedures and business processes
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Strategic Outcome Orientated Goal
Number 6
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Strategic Outcome Oriented Goal 6:
For South African Tourism to continuously improve its internal communication and a culture of staff members living the values of the organisation in order to achieve:
An annual staff turnover rate of 10% during 2012/13 An average score of between 3,3 in the Deloitte Best-Company-to-work-for
Survey that will take place in June/July 2012 Fully operational National Convention Bureau by 1 April 2012 generating 60
leads per annum with improved delegate boosting
To continuously improve South Africa Tourism’s internal communication and of staff members living the values of the Organisation
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National Convention BureauTeam South Africa
MissionTeam South Africa will grow the nation’s business events industry. The resulting business, trade and intellectual engagement will strengthen South Africa’s global brand and economic transformation.
It will accomplish this mission by:
Positioning and selling South Africa as a preferred business events destination
Growing the industry’s capacity and skills nationally Improving the professionalism of meetings in South Africa
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SANCB Proposed Programmes 2012/13
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SA Tourism’s Consolidated Key Performance Areas for the 2012/13 financial year
SA Tourism 2012/13 Key Performance Areas for Performance Information Management
purposes
* Trade includes product owners and travel operators and agents
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Approved CPIX Parameters for Budgeting Purposes (for the calculation of overhead budgets)
Country/region
Average CPIX for 2009/10
Average CPIX for 2010/11
Average CPIX for 2011/12
Average CPIX for 2012/13
Average CPIX for 2013/14
Average CPIX for 2014/15
Average CPIX for 2015/16
South Africa 8,1%1 6,0% 5.8% 5.10% 4,6% 4,6% 4,6%United States (USD) (also used by SAT for Africa, India & China) 1,6%1 2,0% 2.10% 2.10% 2.10% 2.10% 2.10%Europe (Euro) 2,6%1 2,0% 2.00% 2.00% 2.00% 2.00% 2.00%UK (GBP) 2,0%1 2,0% 2.00% 2.00% 2.00% 2.00% 2.00%Australia (AUD) 3,2%1 2,8% 2.80% 2.80% 2.80% 2.80% 2.80%Japan (JPY) 0,5%1 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Notes:
1. Calculated taking into consideration latest IMF figures adjusted for:
• SA Reserve Bank expectations that SA’s CPIX will fall within the 3 – 6% bracket from the latter part of 2009;
• Bureau for Economic Research indicators
• The Economist predictions
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SA Tourism Utilization of Government Grant: 2012/13 – 2014/15 (R’000)
Utilization of Government Grant Medium-term estimate
2012/13 2013/14 2014/15
International Marketing 407 144 421 964 449 292
Domestic Marketing 40 000 42 400 43 672
Financial Assistance 201 246 217 613 230 685
Grading Council 26 706 27 935 29 220
Convention Bureau 28 207 32 065 33 607Project Growing Tourism from Africa
50 000 84 000 84 000
Total Government Grant 753 303 825 977 870 476
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SA Tourism Revenue budget breakdown 2012/13 (R’mil)
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SA Tourism high-level revenue: 2012/13 – 2014/15 (R’000)
Funding of SA Tourism Medium-term estimate
2012/13 2013/14 2014/15
From Government MTEF allocation 753 303 825 977 870 476
From TOMSA levies 78 000 80 000 82 000
From Grading fees 14 050 14 331 14 618
Indaba & Meetings Africa revenue 40 059 40 860 41 677
Sundry revenue 26 668 27 148 27 635
Total Revenue that agrees to final ENE submission 912 080 988 316 1 036 406
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Breakdown of budgets per programme: 2012/13 – 2014/15 (R’mil)
Name of the Objectives 2008/09 2009/10 2010/11 2012/13 2013/14 2014/15
ENE Estimate Adjustment Approved
Audited Audited Audited Budget Budget Budget
Major Programmes 765.3 853.4 857.8 840.2 -19.6 820.5 912.1 988.3 1,036.4
1International
Portfolios413.8 405.3 429.9 386.0 -19.6 366.4 439.7 495.5 514.0
2Head Office
Marketing215.8 293.7 249.2 267.0 267.0 275.2 279.5 296.3
3
Tourism Grading
Council of South
Africa
33.4 35.4 37.5 39.8 39.8 42.2 44.7 47.4
4 Head Office Finance 31.5 33.5 35.4 37.5 37.5 39.8 42.2 44.7
5 Head Office Support 70.8 85.4 105.7 109.8 109.8 115.3 126.4 134.0
765.3 853.4 857.8 840.2 -19.6 820.5 912.1 988.3 1,036.4
Breakdown of Internatio- 2008/09 2009/10 2010/11 2012/13 2013/14 2014/15
ENE Estimate Adjustment Approved
Audited Audited Audited Budget Budget Budget
1.1Project Growth
Africa50.0 84.0 84.0
1.2Other International
Portfolios765.3 853.4 857.8 840.2 -19.6 820.5 389.7 411.5 430.0
413.8 405.3 429.9 386.0 -19.6 366.4 439.7 495.5 514.0
in Rand
Total
Total
2011/12
nal Portfolios Programme Medium-Term Estimate
2011/12
Medium-Term Estimate
in Rand
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SA Tourism 2012/13 Expense budget breakdown per programme (R’mil)
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Where will SA Tourism be spending its direct marketing budget in 2012/13?
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SA Tourism country office budgets for 2012/13
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Changes to SAT’s non-financial resources during the 2012/13 financial year
1. People
SA Tourism current staff complement of 184 is expected to increase by 3 staff members to 187 during the 2012/13 financial year. The reason for this is the additional staff required for the Brazil and Nigeria offices that will be opened no later than 31 March 2013.
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1. Skill set of staff membersNo changes are foreseen.
2. Time allocation/management of marketing staff members2.1 In terms of SA Tourism’s Board-approved market prioritization, marketing staff
members will continue to spend the following proportion of total available time on thedifferent types of markets: Core markets: 60%, Investment markets: 20%, Tactical markets:15% and Watch-list markets: 5%.
2.2 In terms of maximizing available time of all SAT managers,:2.2.1 SAT will continue to encourage short to-the-point meetings preferably not
exceeding 3 hours;2.2.2 SAT will continue to encourage staff members to rather attend to e-mails after
13h00 every day (and not during the mornings when productivity is at its optimum);2.2.3 SAT will continue to enforce the following management routines (where proper minutes should be kept available for audit-inspection purposes):
2.2.3.1 An Exco meeting every Tuesday2.2.3.2 Manco meeting twice a month (on Wednesday’s)2.2.3.3 A Country Office meeting twice a month2.2.3.4 A Business Unit meeting twice a month
1. People (continued….)
Changes to SAT’s non-financial resources during the 2012/13 financial year
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Changes to SAT’s non-financial resources
2. Systems
No change is foreseen at this stage to SA Tourism’s 3 primarysystems (Oracle, EPM Project Management and the QIT Grading Back-office system) except for the implementation/loading of regular updates/patches.
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Changes to SAT’s non-financial resources
3. Infrastructure
3.1 Head OfficeNo change
3.2 Country officesSA Tourism’s 11 country offices
will increase to 13 after the opening of new offices in Nigeria and Brazil.
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Changes to SAT’s non-financial resources
4. Business Units
No changes are necessary in SAT’s current 16 business units:
1. Office of the CEO/COO (including Internal Audit & Admin)2. Human Resources3. Africa Portfolio 4. Domestic Marketing (including Events)5. Asia, Australasia and Americas Portfolio6. Europe & UK Portfolio7. Central Marketing (including Global Brand, Channel & Agency Management)8. E-Business9. Research10. PR & Comms11. Product & Itinerary 12. Finance (including Supply Chain and Legal)13. TGCSA14. Business Systems (previously known as IT)15. Watch-list markets16. Conventions Bureau (including Business Tourism)
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Areas of co-operation with stakeholders
Stakeholder Details of co-operation
1. TBCSA & TOMSA 1.1 SAT is co-funded from voluntary tourism levies collected and SAT therefore offers some specific benefits for establishments that collects TOMSA levies1.2 SAT and TBCSA, which represents all tourism business associations, jointly addresses the industry once a year in all provinces and have bilateral meeting quarterly
2. Provincial Tourism Authorities CEO’s Forum (now called the Marketing Working Group) meeting quarterly where SAT CEO meets Provincial CEO’s to share Business Plans & Budgets and discuss specific marketing issues including joint marketing projects. SANParks, SANBI and TEP also attend. The CMO convenes the quarterly marketing forum with provincial marketing managers.
3. Fedhasa, ASATA and SATSA Sharing of information
4. NDT, other public entities & programmes:4.1 SANPARKS4.2 SA Weather service4.3 SANBI4.4 TEP
Lobby SANPARKS to also start collecting TOMSA levies. Provide exhibition space at exhibitions at beneficial rates Share informationShare informationJoint funding of ETEYA project
5. IMC, GCIS and the Department of Trade & Investment
Sharing of information and joint marketing activities
6. Miptech and Minmec Sharing of information on obtaining inputs on high-level marketing issues. SAT’s CEO attends both meetings.
7. Departments of International Relations & Cooperation and South African embassies overseas
Provide marketing collateral
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SA Tourism
Vision, Mission and Values
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Vision of SA TourismFor South Africa to be the preferred tourist destination in the world, in order to maximise the economic potential of tourism for our country and its people
Mission of SA Tourism
To develop and implement a world-class international tourism marketing strategy for SA. In pursuance of this SAT will: Facilitate the strategic alignment of the provinces and
industry in support of the global marketing of tourism to SA
Remove all obstacles to tourism growth Build a tourist-friendly nation Ensure that tourism benefits all South Africans
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Values of SA Tourism We unconditionally respect our organisation’s people, its purpose and its assets.
Living this respect with integrity translates into an authentic caring for South Africa and each other, a feeling of responsibility, and the acceptance of accountability for the outcomes of our actions.
Our team pushes the boundaries of excellence in everything we do.
We unconditionally respect our organisation’s people, its purpose and its assets.
Living this respect with integrity translates into an authentic caring for South Africa and each other, a feeling of responsibility, and the acceptance of accountability for the outcomes of our actions.
Our team pushes the boundaries of excellence in everything we do.
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Thank You
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