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Briefing to the Portfolio Committee on Tourism SA Tourism Updated 5 Year Strategic Plan and Annual Performance Plan (Review 2014 /15) 04 July 2014

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Title: Briefing to the Portfolio Committee on Tourism SA Tourism Updated 5 Year Strategic Plan and Annual Performance Plan (Review 2014 /15) 04 July 2014


1
Briefing to the Portfolio Committee on
TourismSA Tourism Updated 5 Year Strategic
Plan and Annual Performance Plan (Review 2014
/15)04 July 2014

2
Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

Strategic Plan Annual Performance Plan 04
July 2014
3
Vision and Mission
  • Mission
  • Vision
  • To develop and implement a world-class tourism
    marketing strategy for SA. In pursuance of this,
    SA Tourism will
  • Implement domestic, regional and international
    marketing strategies informed by research
  • Implement a business events strategy
  • Implement and maintain a recognisable, credible
    and globally benchmarked system of quality
    assurance
  • Facilitate strategic alignment of Provinces and
    industry in support of global marketing of
    tourism.
  • Facilitate the removal of identified obstacles to
    tourism growth.
  • Ensure the efficient utilisation of resources to
    deliver the tourism strategy
  • For South Africa (SA) to be the preferred tourist
    destination in the world, in order to maximise
    the economic potential of tourism for our country
    and its people.

Slide no. 2
Strategic Plan Annual Performance Plan 04
July 2014
4
SA Tourism recently refined its current
objectives and strategies for the period until
2014/5 - in line with Governments Performance
Information Management Policy
Create a thriving tourism sector by making South
Africa a tourism and business events destination
of choice
Possible Tourism sector outcome which SA Tourism
will need to deliver against
Make the SA brand a Global Player in portfolio
markets, hubs and decision making centres which
will grow tourisms trended revenue to the
economy by 1.5 p.a. (excluding inflation)
SA Tourism outcome
Strategies to deliver outcome
Slide no. 3
Strategic Plan Annual Performance Plan 04
July 2014
5
SA Tourisms Mandate set out in the Tourism Act
makes it clear that it needs to make choices that
will benefit all South Africans
The mandate to SA Tourism is ...
Sustainable GDP Growth
Sustainable job creation
Redistribution and transformation
Increase in tourist volume
Increase in tourist spend
Increase length of stay
through six key objectives
Improve geographic spread
Improve seasonality patterns
Promote transformation
by acting in a focused way to
Strategic Plan Annual Performance Plan 04
July 2014
6
Business Focus
LEISURE TOURISMpreferred tourism destination
BUSINESS EVENTS MEETINGS preferred business
events destination
GRADING/ QUALITY ASSURANCE improve quality
visitor experience
SUPPORT
Strategic Plan Annual Performance Plan 04
July 2014
7
Minister of Tourism
South African Tourism Board
NDT Director General
NDT DG
South African Tourism Board
Chief Executive Officer
Global Manager Product
Chief Financial Officer
Chief Marketing Officer
Chief Quality Assurance Officer
Chief Operating Officer
Chief Convention Bureau Officer
Regional Director Europe
QAO
Global Manager Stakeholder/ Global Trade
Slide no. 6
Strategic Plan Annual Performance Plan 04
July 2014
8
SA Tourism Board
Chairperson Frank Kilbourn
NDT DG
Deputy Chairperson Zweli Mntambo Also
Chairperson of Audit Risk Committee.
AYANDA NTSALUBA
SIZA MZIMELA
Global Manager Product
GRAHAM WOOD Also chair of the Awards
Committee
South African Tourism Board
KANANELO MAKHETHA Also chair of the NCB
Sub-Committee
TUMI MAKGABO Also chair of the Marketing
Committee
Regional Director Europe
QAO
THEBE IKALAFENG
ALLAN MOORE
DIRK VAN SCHALKWYK .
MONWABISI KALAWE
Global Manager Stakeholder/ Global Trade
Slide no. 7
Strategic Plan Annual Performance Plan 04
July 2014
9
Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

Strategic Plan Annual Performance Plan 04
July 2014
10
Steps of the Portfolio Review
3rd filter
2nd filter
1st filter
133
117
Exclude markets population less than 3 million
people OR GDP PPP of less than 11 000
Top markets in terms of outbound volume and value
Exclude Africa and subdivide it into 5 regions
199 countries
Exclude SADC (Africa Land markets) from the
elimination process (proximity to SA).
42
Salient set
From the remaining countries. Excludes countries
with less than 150k outbound Travel and
Population of less than 3 Million
40
How attractive are these markets in the short
term and the long term?
24
The remaining countries including SADC (Africa
land markets) qualify for Africa Salient set of
countries
Core Tactical Investment and Watch-List markets
4th filter
Final portfolio
Application of cost-benefit evaluation
Africa land markets are markets where more than
60 of arrivals to SA arrive by land.
Strategic Plan Annual Performance Plan 04
July 2014
11
Key things that have changed in the 5th Portfolio
Review
  • APPROACH
  • 1. We treat the African continent differently
    from the rest of the world
  • Africa gets subdivided into 5 different regions /
    hubs
  • Countries with outbound less than 150K per year
    and a population of 3 Million are filtered out.
    The average outbound per annum for African
    countries is 500K , while population is 7
    million. The aim is to include as many countries
    as we can hence the very low threshold.
  • SADC (Africa Land Markets) automatically qualify
    because of its proximity.
  • 2. For the rest of the world, we no longer use
    the 2 000 Gross Domestic Product (GDP) filter.
    Instead we use GDP Purchasing Power Parity (PPP)
    of 11 000 per annum as a filter for
    affordability. This is similar to the Big Mac
    Index.
  • 3. We plan to use the Hub Strategy approach
    around the world to increase market penetration.
    The Hub approach will also be applied when
    markets have been filtered through all the other
    criteria so that we can combine markets in the
    portfolio based on proximity, language, trade
    links for instance, the US and Canada Japan
    and Korea as well as Netherlands and Belgium
    among others.

Strategic Plan Annual Performance Plan 04
July 2014
12
5th Portfolio Review Outcome to be Implemented -
effective 01/04/2014 30/03/2017
AFRICA AMERICAS ASIA AUSTRALASIA EUROPE THE UK
CORE MARKETS Angola Mozambique Nigeria Tanzania Domestic Brazil USA Australia China India France Germany Netherlands UK
INVESTMENT MARKETS Botswana, DRC, Ghana, Lesotho, Uganda, Zimbabwe Canada Japan South Korea Italy Russia
TACTICAL MARKETS Namibia UAE Zambia Singapore Switzerland
WATCH-LIST MARKETS Ethiopia Malawi Swaziland Argentina New Zealand Austria Belgium Denmark Finland Norway Spain Sweden Turkey
STRATEGIC IMPORTANCE Egypt, Israel, Morocco, Saudi Arabia, Tunisia, Malaysia
Brazil 7/14
Australia
Angola 6/14
France
USA
India
Germany
Nigeria
Netherlands
China
Kenya 05/14
UK
Japan
Italy
South Korea
Planned Country Offices
Existing Country Offices
Strategic Plan Annual Performance Plan 04
July 2014
13
The Hub Strategy for Global Markets to increase
market penetration, footprint and efficient
resource utilisation.
Asia Australasia
Europe
Americas
Latin Americas
Central Europe
Asia Pacific
North Americas
United Kingdom
Germany (Office) Hub
Russia
United Kingdom (Office) Hub
Ireland
Scotland
Wales
China - Office Hub
Hong Kong
Macau
Japan
South Korea
USA (Office) - Hub
Canada
Brazil (Office) Hub
Argentina
Chile
Spain
Turkey
Africa
Switzerland
West Africa
Austria
East Africa
Benelux Scandinavia
Australasia
Nigeria (Office) Hub
Ghana
ECOWAS countries
Kenya (Office) Hub
Tanzania Uganda
Ethiopia
Netherlands (Office) Hub
Belgium
Australia (Office) Hub
New Zealand
France (Office)
Norway
Sweden
Denmark
Finland
France Stand Alone
India
Central Africa
India (Office) Stand Alone
Angola (Office) Stand Alone
DRC Hub
Italy (Office)
Asia Air Link Hub
Italy Stand Alone
Malaysia
Singapore
SADC
Botswana
Malawi
Zimbabwe
Lesotho
Notes Planned SA Tourism Offices
(2013/2014 to 2014/2015) 1 Trade Relations
Manager will be appointed approved by Board
(2014/2015) (Shanghai, South Korea, Russia,
Scandinavia as well as Tanzania and Uganda)
Future Plans (2015/16 and Beyond)
Zambia
Namibia
Mozambique
Strategic Plan Annual Performance Plan 04
July 2014
14
Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

Strategic Plan Annual Performance Plan 04
July 2014
15
MTEF Allocation to Aggressively Grow Africa
  • Ring fenced budget to increase arrivals and spend
    from Africa to contribute to GDP and job
    creation.
  • R50 million (2012/13) and R84 million for the
    MTEF period up to 2016/17
  • Setting up five marketing offices in key African
    markets by 2020
  • Implementation of regional tourism programmes
  • In Africa Air markets, sizable opportunity exists
    to attract high value business and leisure
    travellers.

Strategic Plan Annual Performance Plan 04
July 2014
16
Regional Hub Strategy
  East Africa Hub Central Africa Hub West Africa Hub
Summary of opportunity   Kenya is a relatively small market with only 36k arrivals in 2012. Serving additional countries, such as Uganda and Tanzania from Kenya would increase arrivals to 95k taking advantage of similar consumer profiles. Good regional integration and growth is possible. Angola, similarly to Kenya, will be a hub office also servicing DRC and Congo-Brazzaville. DRC will be serviced using a virtual office with only 1 Trade Relations Manager based in DRC but reporting to the hub office in Angola.   This approach is cost effective and most practical given the proximity and high connectivity. The Nigerian market is large and fast growing. Serving Ghana from Nigeria adds another 25k arrivals to the Nigerian market. Arrivals from Ghana are also growing fast. Combined arrivals from both Ghana and Nigeria represent some 104k arrivals.
Summary of opportunity   In 2013 a scoping exercise was performed to determine how to penetrate the market. We will, continue to monitor Congo-Brazzaville and other surrounding Central African states to leverage opportunities as they arise. Achieved milestone The Nigerian office is fully operational.
Strategic Plan Annual Performance Plan 04
July 2014
17
Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

Strategic Plan Annual Performance Plan 04
July 2014
18
Domestic Tourism
  • A new Domestic Tourism Campaign, Nothing is more
    Fun Than a Shot Left was launched in September
    2013 to promote the following
  • Discover own country and its hidden gems
  • The culture of taking short breaks
  • Total annual spend has increased from R21.8
    billion in 2012 to R24.3 billion in 2013 and
    average spend from R850 per trip to R960 per
    trip.
  • The number of trips undertaken decreased from
    25.4 million in 2012 to 25.1 million and the
    number of nights from 4.8 to 4.4.
  • Additional budget of R100 million has been
    allocated to increase domestic tourism.
  • Engage low cost airlines to improve regional
    distribution
  • Radio DJ Programmes
  • Strive to influence and promote the culture of
    domestic tourism

19
Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Market Portfolio
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

Strategic Plan Annual Performance Plan 04
July 2014
20
Strategic Outcome Oriented Goals, Goal Statement
and Objectives
Strategic Objective Justification NTSS Alignment
1 Increase foreign visitor arrivals to SA More foreign visitors will yield more tourism spend resulting to increased GDP contribution Aligned
2 Increase domestic tourism in SA Making SA more attractive to South Africans. This will increase tourism spend and GDP contribution Aligned
3 Increase tourism trended revenue contribution to the economy (Total Foreign Direct Spend (TFDS) Total Domestic Direct Spend (TDDS)) Attract tourists that will increase trended revenue contribution to GDP Aligned
4 Increase SA brand awareness Making SA more attractive to visitors and results in increased spend Aligned
5 Provide quality assurance for tourism products Marketing through word of mouth of the quality experience offered in SA Aligned
6 Increase business events Selling SA as a Meetings Destination Aligned
Strategic Plan Annual Performance Plan 04
July 2014
21
Strategic Outcome Oriented Goals, Goal Statement
and Objectives
Strategic Objective Key Perform -ance Indicator Audited Outcome/ Actual Performance Audited Outcome/ Actual Performance Baseline 2013/14 Performance Medium Term Targets Medium Term Targets Medium Term Targets Medium Term Targets
Strategic Objective Key Perform -ance Indicator 2011 / 12 2012/13 2013/14 2014/15 Quarterly Targets 2015/16 2016/17
Increase foreign visitor arrivals to SA of foreign visitor arrivals (annually) 12 255 155 13 451 565 12 518 310 Tourist arrival estimate 9 616 964 16 033 947 Tourist arrivals estimate 10 000 228 Q1 3 906 086 17 041 406 Tourist arrivals estimate 10 446 753 18 049 947 Tourist arrivals estimate 10 911 069
Increase foreign visitor arrivals to SA of foreign visitor arrivals (annually) 12 255 155 13 451 565 12 518 310 Tourist arrival estimate 9 616 964 16 033 947 Tourist arrivals estimate 10 000 228 Q2 3 687 842 17 041 406 Tourist arrivals estimate 10 446 753 18 049 947 Tourist arrivals estimate 10 911 069
Increase foreign visitor arrivals to SA of foreign visitor arrivals (annually) 12 255 155 13 451 565 12 518 310 Tourist arrival estimate 9 616 964 16 033 947 Tourist arrivals estimate 10 000 228 Q3 4 053 864 17 041 406 Tourist arrivals estimate 10 446 753 18 049 947 Tourist arrivals estimate 10 911 069
Increase foreign visitor arrivals to SA of foreign visitor arrivals (annually) 12 255 155 13 451 565 12 518 310 Tourist arrival estimate 9 616 964 16 033 947 Tourist arrivals estimate 10 000 228 Q4 4 386 156 17 041 406 Tourist arrivals estimate 10 446 753 18 049 947 Tourist arrivals estimate 10 911 069
of buyers that SAT will host at Meetings Africa and Indaba during the financial year N/A N/A Total 376 Indaba 207 Meetings Africa 169 Total 427 (Indaba 250 Meetings Africa 177) No quarterly targets 486 hosted buyers (Indaba 309 Meetings Africa 177) 486 hosted buyers (Indaba 309 Meetings Africa 177)
Increase domestic tourism in SA of domestic travellers 13.9m 12.5m 12.0m 12.9m Q1 3.4m 13.5m 14.3m
Increase domestic tourism in SA of domestic travellers 13.9m 12.5m 12.0m 12.9m Q2 2.6m 13.5m 14.3m
Increase domestic tourism in SA of domestic travellers 13.9m 12.5m 12.0m 12.9m Q3 3.4m 13.5m 14.3m
Increase domestic tourism in SA of domestic travellers 13.9m 12.5m 12.0m 12.9m Q4 3.5m 13.5m 14.3m
Strategic Plan Annual Performance Plan 04
July 2014
Slide no. 20
22
Strategic Outcome Oriented Goals, Goal Statement
and Objectives
Strategic Objective Key Performance Indicator Audited Outcome/ Actual Performance Audited Outcome/ Actual Performance Baseline 2013/14 Performance Medium Term Targets Medium Term Targets Medium Term Targets Medium Term Targets
Strategic Objective Key Performance Indicator 2011/12 2012/13 2013/14 2014/15 Quarterly Targets 2015/16 2016/17
Increase domestic tourism in SA of total domestic trips 26.3m 25.4m 25.1m 25.9m Q1 6.9m 28.4m 31.2m
Increase domestic tourism in SA of total domestic trips 26.3m 25.4m 25.1m 25.9m Q2 5.0m 28.4m 31.2m
Increase domestic tourism in SA of total domestic trips 26.3m 25.4m 25.1m 25.9m Q3 6.9m 28.4m 31.2m
Increase domestic tourism in SA of total domestic trips 26.3m 25.4m 25.1m 25.9m Q4 7.1m 28.4m 31.2m
Increase domestic tourism in SA of holiday trips 3.95m 2.9m 2.98m 3.07m Q1 0.92 1m 3.3m 3.5.
Increase domestic tourism in SA of holiday trips 3.95m 2.9m 2.98m 3.07m Q2 0.615m 3.3m 3.5.
Increase domestic tourism in SA of holiday trips 3.95m 2.9m 2.98m 3.07m Q3 0.923m 3.3m 3.5.
Increase domestic tourism in SA of holiday trips 3.95m 2.9m 2.98m 3.07m Q4 0.614m 3.3m 3.5.
Number of reports - seasonality 1 Report N/A 1 Report 1 Report
Increase tourism trended revenue contribution to the economy (TFDS TDDS) Amount of Trended revenue R8 600 R12 800 (NITS) R8 200 (TFDS) R105.4b (TFDS revenue) R125.0b (Trended revenue) R128.0b (Trended revenue) Q1 R30.7b R129.7b (Trended revenue) R133.6b (Trended revenue)
Increase tourism trended revenue contribution to the economy (TFDS TDDS) Amount of Trended revenue R8 600 R12 800 (NITS) R8 200 (TFDS) R105.4b (TFDS revenue) R125.0b (Trended revenue) R128.0b (Trended revenue) Q2 R29.4 b R129.7b (Trended revenue) R133.6b (Trended revenue)
Increase tourism trended revenue contribution to the economy (TFDS TDDS) Amount of Trended revenue R8 600 R12 800 (NITS) R8 200 (TFDS) R105.4b (TFDS revenue) R125.0b (Trended revenue) R128.0b (Trended revenue) Q3 R33.3b R129.7b (Trended revenue) R133.6b (Trended revenue)
Increase tourism trended revenue contribution to the economy (TFDS TDDS) Amount of Trended revenue R8 600 R12 800 (NITS) R8 200 (TFDS) R105.4b (TFDS revenue) R125.0b (Trended revenue) R128.0b (Trended revenue) Q4 R34.6b R129.7b (Trended revenue) R133.6b (Trended revenue)
Strategic Plan Annual Performance Plan 04
July 2014
Slide no. 21
23
Strategic Outcome Oriented Goals, Goal Statement
and Objectives
Strategic Objective Key Performance Indicator Audited Outcome/ Actual Performance Audited Outcome/ Actual Performance Baseline 2013/14 Performance Medium Term Targets Medium Term Targets Medium Term Targets Medium Term Targets
Strategic Objective Key Performance Indicator 2011/12 2012/13 2013/14 2014/15 Quarterly Targets 2015/16 2016/17
Increase SA brand awareness Brand Awareness 77 81 79 80 N/A 80 81
Provide quality assurance for tourism products of graded establishment 4 886 6 022 5 671 7 088 (1 195 New 5 893 renewals) Q1 1 772 7 584 8 115
Provide quality assurance for tourism products of graded establishment 4 886 6 022 5 671 7 088 (1 195 New 5 893 renewals) Q2 1 772 7 584 8 115
Provide quality assurance for tourism products of graded establishment 4 886 6 022 5 671 7 088 (1 195 New 5 893 renewals) Q3 1 772 7 584 8 115
Provide quality assurance for tourism products of graded establishment 4 886 6 022 5 671 7 088 (1 195 New 5 893 renewals) Q4 1 772 7 584 8 115
Increase business events of delegates N/A 52 587 delegates 94 893 delegates 58 500 delegates N/A 61 500 delegates at international conventions 65 000 delegates at international conventions
Strategic Plan Annual Performance Plan 04
July 2014
24
Tourisms GDP contribution increased from 2.8
(2011) to 3.0 (2012)
8
Tourism Contribution to GDP, 2008-2012
Tourism share of SA GDP
Tourism direct GDP
Tourism Share of Direct GDP
Total Direct GDP (Billions)
  CAGR (2008-2012)
Total Contribution to GDP 6.8
Source TSA, Statistics SA Preliminary figures
are used for 2011 and 2012
Strategic Plan Annual Performance Plan 04
July 2014
25
Tourist arrivals to South Africa grew by almost
5 in 2013 in line with global growth
Year-on-Year Change in Tourist Arrivals to each
region
Change
2012 Tourist arrivals (Millions) 9.2 52.9 233.5 534.4 51.7 162.7 1,035
2013 Tourist arrivals (Millions) 9.6 55.8 248.1 563.4 51.6 167.9 1,087
Note UNWTO estimates incorporate provisional
data for some regions Source Statssa Tourism
Migration release December 2013, SAT analysis
UNWTO World Tourism Barometer, Volume 12, April
2014 Statistical Annex
Strategic Plan Annual Performance Plan 04
July 2014
Slide no. 24
26
Foreign arrivals to South Africa for January to
December 2013 grew by 10.5 over 2012 to reach
14.8 million
Europe
  • 1,628,154 arrivals
  • 6.7 up from 2012

North America
  • 467, 956 arrivals
  • 6.1 up from 2012

Middle East
  • 61, 994 arrivals
  • 6.4 up from 2012

Asia
  • 480, 064 arrivals
  • 9.6 up from 2012

Central South America
  • 133, 959 arrivals
  • 6.40 up from 2012

Australasia
  • 162, 356 arrivals
  • 2.3 up from 2012

AFRICA
GRAND TOTAL
  • 11, 585,206 arrivals
  • 12.4 up from 2012

Indian Ocean Islands
  • 14, 806, 216 arrivals
  • 10.5 up from 2012
  • 27, 486 arrivals
  • 13.4 up from 2012

Note Tourist Arrivals figures shown above for
Jan. - Dec 2013 Source Statssa Tourism
Migration release December 2013, SAT analysis
Strategic Plan Annual Performance Plan 04
July 2014
Slide no. 25
27
Tourist arrivals to South Africa in 2013 grew by
4.7 over 2012 to reach 9,616,964. All regions
showed positive growth in tourist arrivals in
this period
Europe
  • 1,494,978 arrivals
  • 7.0 up from 2012

North America
  • 417,582 arrivals
  • 6.1 up from 2012

Middle East
  • 57,382 arrivals
  • 5.9 up from 2012

Asia
  • 435,076 arrivals
  • 9.2 up from 2012

Central South America
  • 129,463 arrivals
  • 8.0 up from 2012

Australasia
  • 148,660 arrivals
  • 4.0 up from 2012

AFRICA
GRAND TOTAL
  • 6,889,389 arrivals
  • 3.8 up from 2012

Indian Ocean Islands
  • 9,616,964 arrivals
  • 4.7 up from 2012
  • 24,394 arrivals
  • 13.3 up from 2012

Note Tourist Arrivals figures shown above for
Jan. - Dec 2013 Source Statssa Tourism
Migration release December 2013, SAT analysis
Strategic Plan Annual Performance Plan 04
July 2014
Slide no. 26
28
  • Europe remains the main source of tourist
    arrivals to South Africa while Asia remains
    buoyant with the highest growth.

Europe
Europe RETAIN DEFEND
  • 430,910 arrivals
  • 9.2 up from 2012

North America
North America GROW
  • 92,727 arrivals
  • 5.2 up from 2012

Africa Air GROW
Asia Australasia
Asia GROW
  • 108,272 arrivals
  • 27.1 up from 2012

Central South America
Brazil GROW
  • 35,535 arrivals
  • 15.2 up from 2012

AFRICA
Australasia
Australia RETAIN DEFEND
Africa Land GROW
  • 1,736,166 arrivals
  • 7.6 up from 2012

Strategic Plan Annual Performance Plan 04
July 2014
29
All markets grew faster than global growth rate
between 2011 and 2013
Tourist Arrivals to South Africa and the World,
2011 to 2013
CAGR 11 to 13
1000
4.5
7.4
Tourist Arrivals (Millions)
5.7
11
13.1
6.8
15
12
3.4
4.7
14.2
8.2
10.2
change y-o-y
5
4.0
Long-haul Markets
Africa Air Markets
Africa Land Markets
Global Arrivals
All Markets
Slide no. 28
Note Africa Air Markets are markets where at
least 60 arrives to SA use air transport Africa
Land Markets are markets where at least 60 of
arrivals to SA use road transport. Long-haul
markets include all countries outside of
Africa Source Statssa Tourism Migration
release December 2013, SAT analysis UNWTO World
Tourism Barometer, Volume 12, April 2014
Statistical Annex
30
Number of Graded Establishments as at end March
2014
Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total
Backpacker Hostelling 12 2 9 9 2 2 1 1 38 76
Bed Breakfast 182 14 177 232 22 33 18 34 310 1 022
Caravan Camping 16 7 1 11 14 10 10 4 24 97
Country House 32 7 29 15 9 10 4 2 69 177
Guest House 233 54 431 146 54 112 71 71 587 1 759
Lodge 49 9 43 58 83 55 13 34 32 376
Self Catering 112 33 80 181 79 63 27 28 735 1 338
Non-Hotel Accommodation Total 636 126 770 652 263 285 144 174 1 795 4 845
Hotel Total 54 27 180 108 28 34 21 24 187 663
Accommodation Grand Total 690 153 950 760 291 319 165 198 1 982 5 508
MESE Total (Business Tourism) 7 11 72 4 15 18 5 13 18 163
Grand Total Graded Properties 697 164 1 022 764 306 337 170 211 2 000 5 671
Slide no. 29
31
Number of Graded Rooms as at end March 2014
Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total
Backpacker Hostelling 556 132 798 723 87 49 200 32 1 278 3 855
Bed Breakfast 1 575 105 1 117 1 516 258 270 119 340 1 624 6 924
Caravan Camping 655 406 50 1 025 1 368 1 112 217 660 1 534 7 027
Country House 321 81 345 170 153 103 29 25 771 1 998
Guest House 2 536 619 4 395 1 540 785 1 327 667 907 4 481 17 257
Lodge 497 263 1 248 986 1 587 1 129 156 804 445 7 115
Self Catering 985 356 792 1 563 1 699 1 452 179 863 4 083 11 972
Non-Hotel Accommodation Total 7 125 1 962 8 745 7 523 5 937 5 442 1 567 3 631 14 216 56 148
Hotel Total 3 780 1 697 20 242 8 200 1 597 2 268 957 2 827 14 460 56 028
Accommodation Grand Total 10 905 3 659 28 987 15 723 7 534 7 710 2 524 6 458 28 676 112 176
MESE Total (Business Tourism) 38 30 531 26 63 67 19 48 76 898
Grand Total Graded Properties 10 943 3 689 29 518 15 749 7 597 7 777 2 543 6 506 28 752 113 074
Slide no. 30
Strategic Plan Annual Performance Plan 04
July 2014
32
SA National Convention Bureau Update and
Performance (2013-2014)
01 APRIL 2012 Establishment of SANCB YEAR 1 OBJECTIVES Fully operational business unit SANCB FOCUS Positioning and selling South Africa as a preferred business events destination and growing the industrys capacity and skills.
STRATEGY Approval of the SANCBs 5 year strategy COORDINATING FORUM Guidelines for coordination of SANCB and all Provincial and City Convention Bureaus activities.
ICCA GLOBAL RANKING 2013 SA ranked 34th internationally, 1st in Africa, 11th long haul, 27th based on the number of participants MEETINGS AFRICA True Pan African Show celebrating 10 years in 2015 and boasting 13 African countries represented, 262 exhibitors, 170 Int, 37 association, 500 corporate buyers, 163 media
SUBVENTION Incentive programme aimed at attracting international business events to South Africa. Subvention guidelines approved by SATB. SUBVENTION Incentive programme aimed at attracting international business events to South Africa. Subvention guidelines approved by SATB.
BIDS SUBMITTED 2013-2014 FINANCIAL YEAR Note R5.1 million was spent on 57 Bids ROI R948 million BIDS SUBMITTED 2013-2014 FINANCIAL YEAR Note R5.1 million was spent on 57 Bids ROI R948 million

TOTAL BIDS TOTAL NUMBER OF DAYS ESTIMATED DELEGATE NUMBERS ESTIMATED ECONOMIC IMPACT
57 180 76 843 R948 186 400
BIDS SECURED FOR SA 2014 - 2018 BIDS SECURED FOR SA 2014 - 2018 BIDS SECURED FOR SA 2014 - 2018 BIDS SECURED FOR SA 2014 - 2018
TOTAL BIDS SECURED TOTAL NUMBER OF DAYS ESTIMATED DELEGATE NUMBERS ESTIMATED ECONOMIC IMPACT
150 689 243 468 R3 222 870 000.00
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July 2014
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Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

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Revenue and Expenditure Estimates
Revenue Revenue 2010/11 2011/12 2012/13 2013/14 2013/14 2013/14 2013/14 2014/15 2014/15 2015/16 2016/17
          ENE Estimate Adjustment Approved        
Rand Thousand Rand Thousand Audited Audited Audited Pre-Audited Budget Budget Budget Budget Budget Budget Estimate
1 Government grant 631 685 668 613 754 953 846 333 829 973 36 360 866 333 876 309 974 012 974 012 1 024 847
2 TOMSA levies 104 973 98 169 111 970 131 289 87 472 87 472 82 000 86 428 86 428 91 009
3 Indaba Meetings Africa 38 803 37 868 50 013 59 438 42 463 42 463 48 694 51 323 51 323 54 044
4 Grading fees (note 1) 6 376 5 284 3 252 1 520 14 236 14 236 14 668 15 460 15 460 16 279
5 Sundry revenue 52 567 19 045 50 318 57 610 18 168 18 168 20 567 36 531 36 531 38 466
Total Total 834 404 828 979 970 506 1.096 m 992 312 36 360 1.028 m 1.043 m 1.164 m 1.164 m 1.224 m
Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618. Note 1 Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting assessor fees of R 10 393 618.
Strategic Plan Annual Performance Plan 04
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Revenue and Expenditure Estimates per KPI
Name of the Objective Name of the Objective 2010/11 2011/12 2012/13 2013/14 2013/14 2013/14 2014/15 2015/16 2016/17
          ENE Estimate Adjustment Approved      
in Rand in Rand Audited Audited Audited Budget Budget Budget      
  Major Objectives 856 089 863 295 979 646 992 312 - 992 312 1 042 238 1 163 755 1 224 645
Administration 88 292 143 054 105 465 86 663 10 000 96 663 111 160 117 163 123 372
1     Increase annual foreign visitor arrivals to South Africa 227 535 223 734 268 375 291 519 - 291 519 290 462 291 509 310 334
2 Increase the number of Domestic Travellers 39 694 23 452 45 113 35 038  26 360 61 398 43 672 143 800 144 000
3 Increase tourism trended revenue contribution to the economy 227 535 223 734 268 375 291 519   291 519 290 462 291 509 310 334
4 Marketing South Africa to become the preferred Tourism Brand 238 465 224 258 245 850 206 828   206 828 220 292 232 187 244 493
5 To provide quality assurance by having graded accommodation establishments 34 568 25 061 3 252 37 114   37 114 40 377 39 300 41 265
6 To increase the number of international Business Events delegates in South Africa     43 216 43 631   43 631 45 813 48 287 50 846
Total Total 856 089 863 293 979 646 992 312  36 360 1 028 672 1 042 238 1 163 755 1 224 645
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SA Tourism Budget (Breakdown) by Country
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Other Resource Considerations
  • Current staff complement of 206 is not expected
    to change in the 2014/15 financial year.
  • Estimated Capital Expenditure (CAPEX) of R9.82m
    (2014/15) in respect of Head Quarters (HQ) office
    extension for Phase 1 and 2 respectively.
  • Estimated R8.01m (2014/15) for software,
    hardware, vehicles and lease improvements.

Strategic Plan Annual Performance Plan 04
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Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

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July 2014
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Concluding Remarks
  • Fragile economic recovery and expected economic
    recession
  • Promising outbound tourism growth but short haul
    travel
  • Shrinking disposable income due to austerity
    measures
  • Exchange currency weakness
  • Growing middle class in Africa
  • Unemployment dampening domestic tourism

Strategic Plan Annual Performance Plan 04
July 2014
40
Contents
  • Vision, Mission and Mandate and Governance
  • Strategic Approach and Performance
  • Africa Growth Strategy
  • Domestic Tourism Strategy
  • Strategic Objective Annual Targets, Performance
  • Breakdown of Tourism Budget
  • Concluding Remarks
  • Global Audio Visual Reconsider South Africa

Strategic Plan Annual Performance Plan 04
July 2014
41
Reconsider South Africa (New South African
Tourism brand video)
Strategic Plan Annual Performance Plan 04
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42
Thank You
Slide no. 41
Strategic Plan Annual Performance Plan 04
July 2014
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