Confidential Copyright © 2004 South African Tourism— ConfidentialKnysna Febraury 2005 1

Confidential

Copyright © 2004 South African Tourism— Confidential Knysna Febraury 2005 1

South African Tourism

PORTFOLI O COMMI TTEE

11 October 2005

GEARING

SOUTH AFRICA

TO BE GLOBALLY

COMPETITIVE

Achievement Summary

• 47.8 billion TFDS as opposed to 15 billion Gold• R1,532 Average Spend• 93.6 billion – 7.4% GDP• 539,017 Direct Employmment• 9 nights average length of stay• 2 provinces visited per traveller• 101 million BEE spend• Comply with employment equity• 47 billion in domestic travel• Unqualified audit• Its possible brand launch• Shot’ left domestic campaign• Continue to comply with employment equity – 77.4%

Confidential


Overview to 2004

In the past 10 years, since our first democratic election in 1994, foreign tourist* arrivals to South Africa have grown by more than 3 million arrivals. After a slow start in 2004, the third and fourth quarters registered the highest arrivals for that quarter in our history. The continued growth of foreign tourism arrivals is the reason why tourism is called the ‘new gold’ of the South African economy for its job creation and contribution to the gross domestic product of our country.

The Tourism Growth Strategy outlines core and investment markets in different regional portfolios, so flexibility is built into the model and the risk is spread across markets in order to maximise our return on investment in one of the most fast changing and globally competitive industries in the world. The strategy has paid off in 2004 as the growth in all other regions has exceeded the losses out of two of the European markets (France and Germany) and Mozambique with a healthy growth out of Africa, the Americas and Asia.

Note: The full 2004 Annual Report is available on www.southafrica.net/research

* Foreign tourist arrivals as defined by the World Tourism Organisation of a ‘tourist’

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0

1

2

3

4

5

6

7

8

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

State of Emergency

Foreign Tourist Arrivals to South Africa, 1965-2004

*based on opinion of participants interviewed, anecdotal evidenceSource: StatsSA

Arr

ival

s, m

illio

ns

First Democratic Elections

Nelson Mandela released

Sanctions against South Africa lifted

1970s and 80s - Stagnation Stagnation drove low investment, focus on narrow white

domestic market and costs

1990-1998 - Growth Initial period of short-term

profit-taking followed by period of investment growth and entry of foreign players

1998 onwards - Cyclicality Global events, currency volatility

drive uncertainty and short-term strategy by firms

Investment rates remain weak overall

Sanctions Era

6.7 million arrivals

South Africa has gone through a rapid period of growth and in 2004 we are

holding the gains we have made

RugbyWorld Cup

9/11

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Total arrivals to South Africa reached a record high of 6.7million in 2004

5,787,370

6,677,8396,504,890

6,429,5835,890,514

5,731,424

4,944,430

4,488,272

3,668,956

5,872,254

5,140,124

1,500,000

2,500,000

3,500,000

4,500,000

5,500,000

6,500,000

7,500,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Foreign Tourist Arrivals to South Africa (1998 - 2004)

Source: SAT Arrival Statistics, 2004

CAGR:

1994 – 2004: 6.2%

1994 – 1998: 11.8%

1998 – 2001: 0.3%

1998 – 2004: 2.6%

2001 – 2004: 4.9%

Overall arrivals grew by 172,954 from 2003 to 2004. ‘Overseas’ arrivals increased by 0.3%, (5,226) while Africa grew by 4,2 % (188,821): the difference was a decline in both unspecified and Indian Ocean Islands

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In 2004 there was an overall growth of 2.7% over 2003

Total arrivals for 2004

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2003 6,504,890 4,485,064 262,496 265,628 1,319,172

2004 6,677,839 4,673,724 290,625 275,001 1,287,057

Difference 172,949 188,660 28,129 9,373 -32,115

% change 2.66% 4.21% 10.72% 3.53% -2.43%

Total Africa & Middle East Americas Asia & Australasia Europe (incl UK)

Arr

iva

ls (

tho

usa

nd

s)


There was growth of foreign tourism arrivals across all the regional portfolios except Europe

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Year on year arrivals – Africa: 4.2% up

Arrivals from Africa January to December

0

50

100

150

200

2003 28,872 20,243 38,082 31,814 30,866 197,626

2004 28,543 17,727 40,422 31,653 31,752 203,368

Difference -329 -2,516 2,340 -161 886 5,742

% change -1.14% -12.43% 6.14% -0.50% 2.87% 2.90%

AngolaIndian Ocean

IslandsKenya, Tanzania,

UgandaMiddle East Nigeria, Ghana SADC Air

Arr

iva

ls (

tho

usa

nds)


The increase in Africa were driven largely by SADC (both air and especially land – this is despite a 65,000 decline out of Mozambique) and East and West Africa

Arrivals from Africa January to December

0

1,000

2,000

3,000

4,000

5,000

2003 4,156,965

2004 4,291,512

Difference 134,547

% change 3.20%

SADC Land

Arr

iva

ls (

tho

usa

nds)

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Year on year arrivals – the Americas: 10.7% up

Arrivals from the Americas January to December

0

50

100

150

200

250

2003 17,452 34,692 187,447 22,905

2004 21,137 37,170 208,159 24,159

Difference 3,685 2,478 20,712 1,254

% change 21.12% 7.14% 11.05% 5.47%

Brazil Canada USA Other Americas

Arr

iva

ls (

tho

usa

nd

s)


The growth out of the Americas was driven by the third year of growth out of the United States, where we have also seen the greatest decline in seasonality (see slide 22)

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Year on year arrivals – Asia & Australasia: up 3.5%

Arrivals from Asia & Australasia January to December

0

50

100

150

2003 71,687 42,822 41,018 21,311 80,532

2004 75,675 51,080 36,172 23,091 97,241

Difference 3,988 8,258 -4,846 1,780 16,709

% change 5.56% 19.28% -11.81% 8.35% 20.75%

Australia China India JapanOther Asia & Australasia

Arr

iva

ls (

tho

usa

nd

s)


There was growth across Asia. The decrease in India is the effect of the Cricket World Cup in 2003 when more than 5,000 Indians came out for the finals

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Year on year arrivals – Europe: down 2.4%

Arrivals from Europe January to December

0

100

200

300

400

500

2003 127,760 257,018 49,818 120,933 456,468 307,175

2004 109,276 245,452 50,429 120,838 456,368 304,694

Difference -18,484 -11,566 611 -95 -100 -2,481

% change -14.47% -4.50% 1.23% -0.08% -0.02% -0.81%

France Germany Italy Netherlands UKOther

Europe

Arr

iva

ls (

tho

usa

nd

s)


The loses out of were driven by France and the Germany. Arrivals out of the UK and Netherlands improved in the second half of the year reporting in flat results in 2004: Interestingly we gained market share in France (slide 32) while we lost significantly in Netherlands and Germany.

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Total international trips 2004 vs 2003

714691

760

0

100

200

300

400

500

600

700

800

2002 2003 2004

mill

ion

s

Global tourism grew by about 69 million trips (10%) in 2004

International tourist arrivals 2004

402

119 112

28 31

414

153124

35 33

0

50

100

150

200

250

300

350

400

450

Europe Asia/Pac Americas ME Africa

mil

lio

ns

• Europe remains the world’s #1 tourism region. France remains the top destination

• Arrivals to Europe grew at 3% over 2003

• Growth in global arrivals was driven off growth in

• Asia 2.9% (which has now in 2nd place having overtaken Americas) driven by huge regional travel

• Americas 11%

Growth in global tourism:

• 2002 to 2003: -3.2%

• 2002 to 2004: 3.2%

• 2003 to 2004: 10%

Source: World Tourism Barometer January 2005 – WTO; The World Market for Travel & Tourism – Euromonitor 2005

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5,731

5,891 5,872

5,787

6,430

6,505

5,200

5,400

5,600

5,800

6,000

6,200

6,400

6,600

1998 1999 2000 2001 2002 2003

4,167

4,460

4,931

4,856 4,841

4,746

3,600

3,800

4,000

4,200

4,400

4,600

4,800

5,000

1998 1999 2000 2001 2002 2003

South Africa has been growing in a period where our largest competitor

(Australia) has been losing ground until 2004

Tourist Arrivals to Australia, 1998-2003

Num

ber

of T

ouris

ts, 0

00s

Source: SAT Arrival Statistics, Oct 2002; ATC

Num

ber

of T

ouris

ts, 0

00s

Tourist Arrivals to South Africa, 1998-2003

CAGR98-03 = 2.6%

CAGR98-03 = 2.6%

Growth Rate, CAGR

98-01 = 5.2% 01-03 = 6.0 %

01-03 = 6.0 %

98-01 = 0.3%01-03 =

-1.1%

01-03 =

-1.1%

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60

100

140

1998 1999 2000 2001 2002

Agro-processing

Chemicals

Automotives

Clothing

Metals

Machinery

Tourism

GDP Contribution per Sector (Indexed*), 1998-2002CAGR

(1998-2002)

5.0%

-1.1%

5.2%

3.7%

1.2%

* All numbers indexed to 100 for the year 1998; ** Calculated numberSource: DTI; Quantec, 2004; SAT; Monitor Analysis

8.9%

Con

trib

utio

n to

GD

P (

inde

xed)

GDP Contribution in 2002

R11,1bn

R2,8bn

R14,3bn

R7,1bn

R72,3bn**

R27,8bn

R14,7bn

The tourism sector’s GDP growth rate is in the top 4 but is the highest

absolute contributor in the SA economy

4.1%

The tourism GDP figures have been modeled using WTO figures, foreign direct spend in South Africa, Domestic spend and spend by South Africans in other countries

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-3%

-2%

-1%

0%

1%

2%

-5% 0% 5% 10%

Internally, the tourism sector is the only priority1 sector showing positive

growth in employment and GDP, however transformation levels are poor

Note: 1 Priority sectors as identified by Cabinet, CAGR applied to each sector for period 1998-2002, Tourism GDP values are estimatesSource: DTI; Quantec, 2004; SAT; Monitor Analysis, GCP Phase 1 2004

Growth in Employment vs. Growth in GDP Contribution (1998-2002)

Employment (CAGR:98-02)

Contribution to GDP (CAGR: 98-02)

Clothing

Agro Processing

Machinery

Chemicals

Metals

Automotives

Negative growth

Positive growth

Positive growth

Negative growth

Tourism

On an Internal BasisTourism is performing well

relative to the other priority sectors and is creating jobs and value

However, transformation of the tourism levels in the industry are poor

On an Internal BasisTourism is performing well

relative to the other priority sectors and is creating jobs and value

However, transformation of the tourism levels in the industry are poor

Campaign Evaluation

October 2005

Executive Summary

• Sho’t Left was the first campaign designed to boost the growth of domestic tourism in South Africa as a direct result of the Domestic Tourism Growth Strategy unveiled at Indaba 2004.

• The campaign was run from Mid June to the end of September 2005.

• At the heart of the campaign was a TV insert series run on the national broadcaster in prime time highlighting things to see and do around the country

• In support of the TV programme and to ensure conversion to action, this campaign employed all media options and leveraged every opportunity to market the notion of “taking a Sho’t Left” to the public.

Domestic Portfolio 2005-6

Sho’t Left overview

• Key Objective:– To get more people to take more short

trips more often• Key Target Market:

– Emerging domestic traveller • Key Message:

– Domestic travel is affordable and do-able

TV programme58% Reach achieved of

Emerging market

Radio Campaign 79% reach of

Emerging market

TV promos Reach of 512 AR’s

90 Taxis1.8 million

Impacts250000 passengers

Billboards

Viral email& Posters

Estimated reachOf 100,000employees

Print AdsDaily Sun & Sunday Sun

45% reach of Emerging market


Unleash the possibilities of taking

more short breaks, more often

Extension CampaignPR Coverage

EventsRoad Show to large

Employers, universities& shopping centres

Reality Game Show

13 epsSABC 2

Conversion Campaign

Tour OperatorsWeb-site

Call centreTravel Agents

GSA’s

Advertising Campaign

TV Ads & promos (SABC1,2,3 and e)Radio (Metro, Ukhozi and Yfm)

Print (Daily Sun)Internet banners & SMS messaging

Rank TV & Stokvel TVPackage brochure

Sho’t Left


Sho’t Left TV Show

The Sho’t Left Chalenj!

Hosted by Desmond Dube


BEE GSA Pilot Programme

• We hope to pilot a sales programme with Sho’t Left • This is detailed under the “New Channel” strategy• We will look at two agents, recruited and trained to sell

the Sho’t Left packages at large employers and trade unions.

• They will be paid a contract salary for three months and provided with a list of prospects (large employers, trade unions and universities)

• A presentation, posters and Sho’t Left brochures, a business card and uniform to support them in the sales process.

• This is not an advertising, PR or branding function, and we will therefore recommend bringing in a specialist organisation to assist us with this aspect of implementation

• This pilot will be used as a basis for developing a full business plan around the development of a GSA force for the domestic market

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National Tourism Conference – Johannesburg 2004Phase 1 GCP 2004 Monitor Group and South African Tourism © 34

Size of Target Market in the 9 markets

67,940,000

Size of Target Segments (we are currently

focusing on) in the 9 focus markets

24,798,300

We know the sizing the opportunity in a group of markets we focus on –

China, Japan, India, US, UK, Germany, France, Kenya and Nigeria

For the markets we have studied in depth – the opportunity is massive

Current Arrivals from 9 key Markets

1,208,929

Confidential


The number of tourists producing these outcomes are only a small fraction

of the market potential

2003 ArrivalsFirst timer

holidaymakers in 2003Target market Opportunity

SA's penetration into targeted

markets

Kenya 17,743 1,826 400,000 4.4%

Nigeria 22,645 5,129 1,000,000 2.3%

USA 187,447 71,460 10,400,000 1.8%

Australia 71,687 28,583 3,000,000 2.4%

France 127,760 78,078 9,300,000 1.4%

Germany 257,018 118,562 14,600,000 1.9%

Netherlands 120,933 59,139 1,300,000 9.3%

UK 456,468 199,453 9,200,000 4.5%

Source: Branding Tracking results-2004, SAT Departure Surveys 2003, StatsTool 2003

South Africa’s percentage market share of certain key market show how little of South Africa’s potential is actually being utilized

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Global CompetitorsGlobal Competitors

Domestic DemandDomestic Demand

National GoalsNational Goals

Competing Competing OperatorsOperators

Competing Competing OperatorsOperators

Supporting Supporting IndustriesIndustries

Supporting Supporting IndustriesIndustries

Consumer GoalsConsumer Goals

Strategic ContextStrategic ContextStrategic ContextStrategic Context

GlobalDemandGlobal

Demand

Competing Product Competing Product OwnersOwners

Competing Product Competing Product OwnersOwners

Becoming a global player is about an internal dialogue on how we move

forward as a destination to make sure that we are more competitive

It is built on a shared vision of the future and an understanding of where we work together and where we compete in a transparent way

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Enhancing competitiveness is ultimately about enhancing firm-level

decisions

Goals and

Vision for the

Tourism Sector

(Already Decided)

Government has certain desires for the

tourism industry based on a national

context Outcomes of firm

level choices

(over time) will create

or destroy - jobs and

value

Government’s success is measured by the outcomes of firm level choices

The question is: How does Government intervene in an industry if it wants to enhance competitiveness and therefore create jobs and grow

GDP?

The question is: How does Government intervene in an industry if it wants to enhance competitiveness and therefore create jobs and grow

GDP?

We need a framework for understanding what actions can be taken that will have a positive impact on firm level decisions. This means understanding the decision making process and its inputs.

Source: Monitor Group

Confidential


Enable efficient and successful

firm level choices

Outcomes of firm

level choices



value

Choices about: Segments,

Product, Price, Promotion, Positioning Packaging,

Capacity and Investment

Government can assist industry by facilitating the availability of high quality

inputs that are used in the firm-level decision process

Goals and

Vision for the

Tourism Sector

(Already Decided)

Access to capital: finance,

skills, human resources

Transparency and

availability of information

Access to markets

Set the rules of engagement:Micro conditions:

Industry regulation, incentives, quality

control, transformation, etc

Create a suitable national platform

for business:Macro conditions:

Legal, Safety, Infrastructure, etc

Market level INPUTS

Macro and Micro INPUTS

Outputs of firm level choices

The framework for thinking about firm level choices is easy to understand, as it consists of inputs, outputs and outcomes. Within this framework, Government and Industry play various roles in ensuring the availability of quality inputs


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firm level choices

Outcomes of firm level

choices (over time) will create


value




The following framework allows Government and Industry to design an

action plan for enhancing the competitiveness of the tourism industry

Goals and

Vision for the

Tourism Sector

(Already Decided)







Availability and access to capital: finance,

skills, HR


skills, HR

Transparency and


Transparency and


Access to markets

Access to markets

Organized Industry

leadership

(led by the TBCSA)

Organized Industry

leadership

(led by the TBCSA)


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firm level choices

Outcomes of these

firm level choices



value

The goals and vision for the tourism industry are the same as the core

national economic objectives

Goals and

Vision for the

Tourism Sector

(Already Decided)

Goals and

Vision for the

Tourism Sector

(Already Decided)








skills, HR

Transparency and


Access to markets

Organized Industry

leadership

Sustainable GDP Growth

Sustainable GDP Growth

Sustainable job creation

Sustainable job creation

Redistribution and transformation

Redistribution and transformation

Source: Monitor Group, South African Tourism

Choices about:

Segments, Product, Price,

Promotion, Positioning Packaging,


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firm level choices

South Africa’s outcomes are a function of the number and mix of tourists

visiting our shores








skills, HR

Transparency and


Access to markets

Organized Industry

leadership

Outcomes of firm

level choices



value

Goals and

Vision for the

Tourism Sector

(Already Decided)

The current performance of tourism to SA is currently being produced by a very small percentage of the total

market opportunity

Source: Monitor Group, South African Tourism




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firm level choices

Several product shortcomings emerged from the GCP study

Goals and

Vision for the

Tourism Sector

(Already Decided)








skills, HR

Transparency and


Access to markets

Organized Industry

leadership

Outcomes of these

firm level choices



value

Current product shortcomings: Domestic tourism products Cultural product Adventure product Family product Value-for-money

Current product shortcomings: Domestic tourism products Cultural product Adventure product Family product Value-for-money

Source: Monitor Group, GCP Phase 1 2004




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Outcomes of these

firm level choices



value

At a firm level, the barriers to efficient decisions are around market access,

skills and a lack of pertinent information

Goals and

Vision for the

Tourism Sector

(Already Decided)

Organized Industry

leadership


skills, HR


skills, HR

Transparency and


Transparency and


Access to markets

Access to markets


firm level choices







Narrow band of interested consumers

Safety and security perceptions

Dependence on word-of-mouth referrals

SA is a niched & underdeveloped play in the channel

SMEs access to the channel is constrained

On certain key routes – airline capacity is constrained

Narrow band of interested consumers

Safety and security perceptions

Dependence on word-of-mouth referrals

SA is a niched & underdeveloped play in the channel

SMEs access to the channel is constrained

On certain key routes – airline capacity is constrained

A lack of appropriate skills appears to be increasing the cost of doing business and constraining growth

Finance is available but access is constrained

A lack of appropriate skills appears to be increasing the cost of doing business and constraining growth

Finance is available but access is constrained


Choices about:




Poor accessibility to consumer information

General lack of pertinent Industry performance information and monitoring

Poor accessibility to consumer information

General lack of pertinent Industry performance information and monitoring

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Access to finance is an issue – but for very clear reasons when one

considers the relative positions of entrepreneurs and finance houses

ENTREPRENEUR

Complex business challenges Lack of available industry and consumer

data Business plans are based on

assumptions and anecdote Industry is attractive and seen to be

‘sexy’

“Build it and they will come”“Build it and they will come”

FINANCING HOUSES

Banks tendency is to strive for zero risk exposure

Acknowledge the complex business challenges faced by entrepreneurs

As a consequence have identified multiple risk areas for evaluation

“Rigorous data driven evaluation of business plans across multiple dimensions”

“Rigorous data driven evaluation of business plans across multiple dimensions”

INFORMATION GAP

There is very little performance data on the tourism industry and its sub-sectors, this makes it very difficult to assess business plans on an empirical basis.

Source: GCP Phase 1 2004 – Industry Interviews

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Choices about:





firm level choices

Outcomes of these

firm level choices



value

In the micro environment a lack of capacity at a local level and a lack of

industry organization are seen as key barriers to growth

Goals and

Vision for the

Tourism Sector

(Already Decided)


skills, HR

Transparency and


Access to markets

Institutional and regulatory capacity needs to be upgraded towards facilitating delivery and management

Develop tourism specific incentives

Institutional and regulatory capacity needs to be upgraded towards facilitating delivery and management

Develop tourism specific incentives







Organized Industry

leadership

Organized Industry

leadership

Industry is highly fragmented and some industry sub-sectors are not organized into representative associations

Cluster linkages are generally weak with low levels of information sharing

Mainstream SME participation and competitiveness issues at various points in the value chain

Industry is highly fragmented and some industry sub-sectors are not organized into representative associations

Cluster linkages are generally weak with low levels of information sharing

Mainstream SME participation and competitiveness issues at various points in the value chain


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firm level choices




Outcomes of these

firm level choices



value

Choices about: Target


Promotion, Positioning

and Packaging

There are several of the major GCP findings that apply to the national

environment

Goals and

Vision for the

Tourism Sector

(Already Decided)


skills, HR

Transparency and


Access to markets

Organized Industry

leadership




Build the SA brand Improve safety and security (reality and

perceptions) Provide the necessary infrastructure

(Public transport and tourism information provision and public amenities)

Drive transformation as a competitive advantage

Provide necessary regulatory and institutional platforms (incl aviation policy)

Build the SA brand Improve safety and security (reality and

perceptions) Provide the necessary infrastructure

(Public transport and tourism information provision and public amenities)

Drive transformation as a competitive advantage

Provide necessary regulatory and institutional platforms (incl aviation policy)


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firm level choices

Having the right outcomes for tourism is about ensuring that the industry

has the requisite quality inputs








skills, HR

Transparency and


Access to markets

Organized Industry

leadership

Outcomes of these

firm level choices



value

In order to ensure that positive outcomes are achieved; Government and Industry need to jointly address the

barriers to competitiveness

In order to ensure that positive outcomes are achieved; Government and Industry need to jointly address the

barriers to competitiveness

Goals and

Vision for the

Tourism Sector

(Already Decided)

Facilitate, lead, take action

Facilitate, lead, take action


Choices about:




Facilitate, lead, take

action

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Backup

Confidential


Europe:

Accommodation Usage Pattern: First Timers vs Repeaters

31%

8%9%

11%

8%

13%

11%

4%5%

19%

8%7%

6%

9%

36%

4%

2%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Hotel Guest House Bed andBreakfast

Game Lodge Self Catering Friends andrelatives

Backpackers Camping Trains

First Timers

Repeaters

Per

cent

age

of b

ed-n

ight

s

It is clear that first timers spend the majority of their bed-nights in hotels and repeaters spend the majority of bed-nights with friends and family

Source: Departure Survey 2003

Europe: First Time and Repeat Tourists, Percentage Bed-nights by Accommodation Type, 2003

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29%

5%6%

12%

14%

18%

6%

3%

7%

20%

5%6%

12%

17%

27%

3%2%

9%

0%

5%

10%

15%

20%

25%

30%

35%




First Timers

Repeaters

Ran

ds (

Tho

usan

ds)

There is a clear switch out of hotels and into Friends and Relatives from First Timers to Repeaters

Americas:


Americas: First Time and Repeat Tourists, Percentage Bed-nights by Accommodation Type, 2003


Confidential


32%

1% 2% 1%

14%

37%

1%0%

12%

27%

18%

0%1% 2%

45%

2%0%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%




First Timers

Repeaters

Ran

ds (

Tho

usan

ds)

Asians do not appear to be attractive tourists to the accommodation sector.

Asia:


Asia: First Time and Repeat Tourists, Percentage Bed-nights by Accommodation Type, 2003


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International tourists spend approximately more than a third of their bed-

nights in hotels and the remaining in alternative accommodation types

32,722

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Hot

el

Sel

f C

ater

ing

Gue

st H

ouse

Bac

kpac

kers

Bed

and

Bre

akfa

st

Gam

e Lo

dge

Tra

ins

Cam

ping

Tot

al

Frie

nds

and

rela

tives

Total

Rest of World

SADC

Africa

Asia

Americas

Europe

Bed-nights by Type of Accommodation used in South Africa, 2003

# B

ed-n

ight

s (t

hous

ands

)

Note: Europe – UK, Germany, France, Italy, Netherlands; Asia – Japan, China; Africa – Kenya, NigeriaSource: SAT Departure Survey, Jan-Nov 2003

Bed-nights with friends and relatives which is the largest category at over 20 million nights, has been shown separately so as not to distort the picture for paid accommodation.

41%

11%

11%

9%

9%

8%

7%3%

20,261

13.4mil bed-nights

13.4mil bed-nights

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The majority of the paid bed-nights are spent in Gauteng and Western Cape

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Gau

teng

Wes

tern

Cap

e

Kw

azul

u N

atal

Fre

e S

tate

Mpu

mal

anga

Eas

tern

Cap

e

Nor

th W

est

Lim

popo

Nor

ther

n C

ape

Africa

Asia

Americas

Rest ofWorld

Europe

SADC

Provincial Distribution, 2003

Sha

re o

f Bed

-nig

hts

The skew in bed nights has led to a disproportionate development of accommodation offering across the different provinces.

Note: Europe – UK, Germany, France, Italy, Netherlands; Asia – Japan, China; Africa – Kenya, NigeriaSource: SAT Departure Survey, Jan-Nov 2003, SAT Domestic Survey 2003, Monitor Analysis

1.4

2.0

2.1

2.0

2.3

1.2

Ave. # Provinces Visited

16,183

13,665

4,165

8,062

3,8453,055

2,2211,687

0,645

Confidential


40%

9%

5%

2%

9%

27%

3%

0%

5%

43%

7%5%

1%

9%

32%

2%0% 0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%




First Timers

Repeaters

Ran

ds (

Tho

usan

ds)

Accommodation usage patterns are similar in nature.

Africa:


Africa: First Time and Repeat Tourists, Percentage Bed-nights by Accommodation Type, 2003


Confidential


Length of stay in SA – Botswana, Malawi, Swaziland, Zambia, Zimbabwe

• The most common length of stay by tourists from these markets remained constant or increased in Q3 2004.

• The most common length of stay of Zambian tourists decreased by 1 night in the quarter.

Q3 2004 Q3 2003 Diff

BotswanaAverage 8 12 -4

Most common 7 5 2

MalawiAverage 6 8 -2

Most common 4 4 0

SwazilandAverage 4 4 0

Most common 3 1 2

ZambiaAverage 6 7 -1

Most common 3 4 -1

ZimbabweAverage 8 12 -4

Most common 7 5 2

Confidential


Most common length of stay - Botswana

The number of nights spent in South Africa by tourists from Botswana remained the same in Q3 2004 compared to Q3 2003. The number of tourists who spent 2 nights in South Africa in Q3 2004 was greater than in Q3 2003.

Most common length of stay - Botswana

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Number of nights

% t

ou

rist

s

Q3 2003

Q3 2004

Confidential


Most Malawian tourists spent four nights in South Africa in Q3 2004. This is consistent with Q3 2003. There was an increase in the number of tourists who spent three nights in South Africa in Q3 2004.

Most common length of stay - Malawi

Most common length of stay - Malawi

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Number of nights

% t

ou

rist

s

Q3 2003

Q3 2004

Confidential


There was an increase in the number of nights spent in South Africa in Q3 2004. There was a peak at two introduced in Q3 2004 and an increase in the number of tourists who stayed three nights in Q3 2004 compared to Q3 2003.

Most common length of stay - Swaziland

Most common length of stay - Swaziland

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Number of nights

% t

ou

rist

s

Q3 2003

Q3 2004

Confidential


There was a decrease in the number of nights spent in South Africa by Zambian tourists in Q3 2004 compared to Q3 2003. The modal peak shifted from 4 nights in Q3 2003 to three nights in Q3 2004. A shift in the seven night peak in Q3 2003 to six nights in Q3 2004 was also noted.

Most common length of stay - Zambia

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Number of nights

% t

ou

rist

s

Q3 2003

Q3 2004

Most common length of stay - Zambia

Confidential


Most Zimbabwean tourists spent two more nights in South Africa in Q3 2004. There appears to be a shift in the length of stay of Zimbabweans from the modal peak of 5 nights in Q3 2003 to 7 nights in Q3 2004. The modal peak of 12 nights in Q3 2003 seemed to shift to 10 nights in Q3 2004. While the peak of 14 nights remained, fewer tourists stayed 14 nights in Q3 2004 compared to Q3 2003.

Most common length of stay - Zimbabwe

Most common length of stay - Zimbabwe

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Number of nights

% t

ou

rist

s

Q3 2003

Q3 2004

Confidential


Documents

Confidential Copyright © 2004 South African Tourism— ConfidentialKnysna Febraury 2005 1