marketing investment framework · contents • sa tourism’s goal for the next five years (slide...

Presentation to Portfolio Committee

Oxford Economic Model

and

Market Investment Framework

2017–2021

18 August 2017

Slide no. 1

Contents

• SA Tourism’s Goal for the Next Five Years (slide 3)

• Approach for Developing the Marketing Investment Framework (slide 4)

• Consultation Process (slide 5)

• Stakeholder Feedback (slides 6 – 8)

• Developing the Market Investment Framework (slides 9 – 29)

• Operating Strategy: The Hub and Spoke Model (slides 30 )

• Strategy Framework for Engagement with the Provinces(slides 31)

Slide no. 2

3

© South African Tourism

ZAR ~109Bn (TTFDS based on 2016 ) ZAR ~9.7Bn (holiday Revenue based on 2016)

…by international tourists, who, on a day spends

ZAR 850 and stays 9.2 nights in SAin 2016

AllInternational Tourists

To meet the goal aspirations, South Africa should reach

~14.0 million international tourist arrivals…

…by domestic holiday tourists, who, on a day spends

ZAR 530 and stays 5.1 nights on a trip

Domestic Holiday Tourists

Boosting the domestic holiday travel will allow South Africa to reach

~3.6 million holiday trips…

ZAR ~118Bn by 2021(TTFDS + Holiday Revenue)

SA TOURISM’s GOAL FOR THE NEXT FIVE YEARS

TOTAL TOURIST Revenue1

Note: 1Based on the spend in 2016, and not adjusted for inflation or currency fluctuations;Source: Departure Survey 2016; MIF, SA Tourism Domestic Survey

Total tourism revenue from the two markets (i.e., international and domestic) is expected to reach ZAR 142Bn by 2021

ZAR ~142Bn by 2021(TTFDS + TTDS based on 2016)

4


Our approach to develop the marketing investment framework is laid out below:

Gathered inputs from stakeholders to develop hypotheses and identify the guiding principles that would help define the framework for the strategic thrust

Drafted preliminary framework, taking cognisance of the key objectives of the thrust

Discussed and review the Marketing Investment Framework with the relevant stakeholders and gathered their inputs and refine them

Finalised the framework in accordance with the inputs shared by the stakeholders, and in mutual discussion with the SA Tourism business teams

Got final sign-off on the Marketing Investment Framework and portfolio selection from the relevant stakeholders

Final Sign-off on the Framework

Finalise the Framework

Discuss Frameworkwith Relevant Stakeholders

Draft Framework for Investment Choices

Gather Inputs from Relevant

Stakeholders

5


6


Conversations with the stakeholders have provided the following inputs to

be considered when developing the investment framework

The opinion of stakeholders across the South Africa’s tourism ecosystem was gathered to

determine the guiding principles to develop the investment framework

Synergy in Efforts

Clarity in Role

Simplicity

Pragmatic Approach

Measurability of Impact

Agility

Guiding Principles

7


All the entities operating in South Africa’s tourism ecosystem need to have a unified focus on the destination’s tourism positioning, with synergised efforts and simplified processes

Over the years, the addition of various elements to the existing processes for defining portfolios has resulted in making the processes complex and cumbersome; therefore, MIF has define (redefine) clear and standard guidelines

Simplicity

Synergies needed must be achieved among different entities operating in the tourism ecosystem

New MIF needed to relate to industry’s footprint in the market.

Synergy in Efforts

Clarity in Role

Share the mandate of SA Tourism in the tourism value chain and its role in contributing to the economy of the country.

Key Guiding Principles

Gu

idin

g P

rin

cip

les

8


Additionally, the efforts towards meeting the goal should be practical and allow for agility, and

the impact should be assessed to establish effectiveness

Agility

The evolving internal and external parameters, which impact the South African tourism ecosystem, have been addressed, to tap into the potential of emerging opportunities and or quick wins

It is imperative that the efforts to spur the South African tourism industry should not only follow a scientific approach but also factor in the realities of the operating environment, which is what the MIF delivers

Pragmatic Approach

Gu

idin

g P

rin

cip

les

The impact of various efforts that SA Tourism is making to enhance tourism growth in South Africa were assessed. There is a clear set of indicators to establish the ROI across various aspects of the tourism value chain, which will allow monitoring of different entities’ effectiveness.

Measurability of Impact

Key Guiding Principles

9


Formulate an optimal investment plan

Define a robust portfolio to target opportunities

Thrust 1 : Developing the Market Investment Framework

OPTIMISING MARKETING INVESTMENTSDevelop and implement an investment strategy that allows SA Tourism to focus on prioritised markets

10


To achieve the goal of 5 in 5 SA Tourism needed to develop a marketing investment strategy that will help the organisation focus on prioritised Markets and Segments

To achieve the goal of adding five million tourists to the existing baseload, in the next five years, SA

Tourism needs to develop a marketing investment strategy that will help the organisation focus on

prioritised markets and segments

Design a robust and replicable portfolio review approach for SA Tourism, taking into consideration

each market’s attractiveness and the

overall targets

Reassess Key Source Markets

Develop an agile, intuitive excel-based model to help SA Tourism distribute its marketing budget across

identified key markets

Develop Marketing Investment Model

Develop and test various market scenarios to

formulate an optimal investment plan and performance review

schedule based on the current allocated financial

resources

Inform Investment Strategy

Build an agile model that will enable SA Tourism to

assess their performance in the future and adjust their

strategy accordingly

Prepare for Future Scenarios

1 2 3 4

11


Developing the Marketing Investment Framework SA Tourism’s is guided by the philosophy of bringing together the targets, market selection and available resources, to establish optimal marketing investments

Why?Purpose/ Mandate

What?Targets

Where?Markets

How?Investment

Gain clarity on the role of SA Tourism to inform the investment and

partnership strategies

Optimal Investment Distribution

Establish annualised targets in line with market performance and investment by leveraging information from an Oxford Econometric model

Prioritise markets for marketing investment based on performance and outlook, South Africa’s ability to win in the market, return on past investments

and SA Tourism’s mandate

Optimise marketing investment distribution to ensure high return on

investments by mapping targets across the prioritised markets and identifying

synergies across entities operating in the tourism ecosystem

12


Key steps in developing the Marketing Investment Framework

Targets

Investments

Determine growth to be achieved across different markets - TDM

Allocate budgetacross the prioritised markets by leveraging baseline

growth, setting activated

growth, and applying the

relative cost of acquisition

Outcome: Relative ‘cost of acquisition’ of tourists across

all markets

MarketsLevel 0:

Eliminate markets based on data

availability

Level 2: Rank markets on outbound

attractiveness

Level 1: Rank markets on macroeconomic

strength/stability

Market Attractiveness

Rank markets on South Africa’s ability to win

Ability to Win

Outcome: Priority order

of Markets

Assess arrivals (by specific purpose) from the existing

portfolio markets

Determine marketing spend (for the purpose) across the specific portfolio markets

Outcome: Growth rates to assess nominal growth

across all source markets

13


SA Tourism leverages the Tourism Decision Metrics (TDM) developed by Oxford Economics.

The model forecast Global Tourism Demand for 190 countries.

It currently estimates that the WORLD will reach 1,553Mn arrivals by 2021

From the Global tourism demand it calculate a share of each destination country based on historic and future performance. For SA it estimates a share of 12.7Mn arrivals by 2021.

Global Tourism Demand (190 Markets)

For each origin market:

Real GDP

Consumer Spending

Exchange rates

Unemployment

Destination Market Share Calculation

For each potential destination:

Prices

Consumer price Index,

Exchange rate,

Interest rates

Destination competitiveness Index

Regulatory frame work

Environment & Infrastructure

Human, cultural and natural resources

Targets

14


Market prioritisation exercise ranks countries on their relative attractiveness as a source market and South Africa’s ability to operate and perform in that market

Marketing Investment Framework: Markets

Targets

Investments Outcome: Relative ‘cost of acquisition’ of tourists across all

markets


portfolio markets


Baseline vs. Activated Growth:Determine growth achieved with/without

marketing investment across different markets



MarketsLevel 0:


availability


attractiveness


strength/stability



Ability to Win


of Markets





15


As the framework is driven by several data points, data availability is a key criterion to remove countries from further analysis

For market prioritisation, the framework considers all the countries in the world (214 countries), and shortlists markets based on their data availability across mandatory indicators, which can be selected from the following:

As the first step, the prioritisation framework filters out countries with no data availability for select essential indicators that demonstrate the macro-economic state of the market

Markets: Attractiveness – Level 0

Indicator Name

GDP PPP per Capita

Currency Exchange Rate

Education Index

Urban Population

Political Stability Index

209

188

214

201

184

Data Availability (By Country)

Mandatory Indicator for Next Level Selection

In the current selection scenario, for a source market, if data is not

available for any of the selected indicator that market will be filtered out from the next level

analysis

16


Owing to data unavailability, lack of information consistency and redundancy, few indicators are not considered for Level 1 analysis of the market attractiveness framework

Markets: Attractiveness – Level 1 IndicatorsLevel 1

Political

Eco

no

mic

Cost of Living Index

Inflation Rate Annual Disposable Income

Inequality in Income Currency Exchange Rate GINI Index

GDP PPP (Per Capita)

GDP PPP (Total)

Unemployment Percentage

GNP (Total) GNP (Per Capita) Income Quartiles

Urban Population Urban Population (% Growth)

Population (15-64 Years) Human Development Index Youth Literacy Rate1

Education Index

Literacy Rate

Total Population

Soci

al

Technology

Others No. of International Flights 1 No. of Metro Cities 1Proximity to South Africa

Internet Penetration Mobile Phone Subscription 1 Mobile Device Penetration 1


Note: 1Excluded based on low data availability

17


Driven by the principle of simplicity : Indicators are further shortlisted using correlation analysis, removing redundant indicators reflecting similar trends

Markets: Attractiveness – Level 1 Indicators (Correlation)

Political: Political Stability Index

Inflation Rate



Annual Disposable IncomeEco

no

mic

GINI Index

Cost of Living Index

GDP PPP (Per Capita)*

GDP PPP (Total)

Education Index

Urban Population

Urban Population (% Growth)

Inequality in Income

Soci

al

Population (15-64 Years)

Total Population

Human Development Index

Literacy Rate

Technology: Internet Penetration

Others: Proximity to South Africa

Indicators are excluded on the basis of correlation between them. The indicators with correlation value of more than ±0.5 are excluded (subject to their relevance)

* Indicator is used as a composite score of the current value, historic growth rate and future growth rate


1.00 GDP PPP per Capita

0.58 1.00 Inflation Rate

-0.28 -0.15 1.00 Unemployment

-0.04 -0.13 -0.01 1.00 Inequality in Income

-0.19 -0.34 0.03 0.08 1.00 Currency Exchange Rate

-0.08 -0.11 0.09 -0.14 -0.01 1.00 Annual Disposable Income

0.05 0.12 -0.05 -0.13 0.15 -0.05 1.00 GDP PPP Total

-0.01 0.15 -0.02 -0.11 0.03 -0.01 0.92 1.00 GINI Index

-0.20 -0.23 0.04 0.06 0.87 0.01 0.12 0.06 1.00 Cost of Living Index

0.20 0.57 0.03 -0.11 -0.26 0.05 0.12 0.20 -0.22 1.00 Education Index

0.63 0.62 -0.10 -0.02 -0.29 -0.08 0.14 0.17 -0.25 0.63 1.00 Urban Population

-0.15 0.01 0.02 -0.12 0.03 0.03 0.67 0.90 0.09 0.14 0.04 1.00 Urban Population Growth

-0.56 -0.43 0.12 -0.17 0.25 0.14 0.01 -0.08 0.25 -0.36 -0.81 0.02 1.00 Total Population

-0.18 -0.05 0.02 -0.12 0.00 0.03 0.52 0.79 0.07 0.08 -0.05 0.96 0.08 1.00 Population 15-64 Years

-0.17 -0.04 0.02 -0.12 0.00 0.03 0.52 0.80 0.07 0.08 -0.03 0.96 0.07 1.00 1.00 Human Development Index

0.66 0.73 -0.15 -0.02 -0.32 -0.10 0.16 0.19 -0.28 0.67 0.95 0.07 -0.82 -0.01 0.00 1.00 Literacy rate

0.50 0.43 -0.09 0.12 -0.02 -0.03 -0.03 0.10 -0.02 0.45 0.83 0.04 -0.72 -0.02 0.00 0.82 1.00 Internet Penetration

0.635 0.76 -0.13 -0.03 -0.35 -0.10 0.14 0.18 -0.29 0.60 0.84 0.05 -0.68 -0.03 -0.02 0.91 0.65 1.00

18


Total Outbound TripsPercentage of

Long Haul Trips

Relative weights of the different indicators are calculated by regressing them against dependent variables that demonstrate the anticipated impact from the level of analysis

Markets: Attractiveness – Level 1 Indicators (Regression)

Level 1Africa Land Markets Overseas Markets

Political: Political Stability Index

Inflation Rate

Inequality in Income

Eco

no

mic

GDP PPP (Per Capita)

Urban Population

Urban Population (% Growth)


Soci

al

Technology: Internet Penetration

Others: Proximity to South Africa

Dependent Variable

Education Index


Africa Air Markets

The weights are calculated by taking proportion of the coefficients of each variable in the regression equation

The weights are further readjusted to ensure that each variable is given relevant weight

5%

6%

6%

5%

5%

13%

9%

13%

6%

7%

25%

12%

17%

18%

6%

6%

11%

5%

5%

10%

5%

5%

10%

12%

3%

5%

5%

6%

15%

22%

8%

5%

10%

19


Similar to Level 1, a few indicators are not considered for Level 2 analysis due to data unavailability or redundancy

Markets: Attractiveness – Level 2 Indicators

Level 2

Glo

bal

Tra

vel I

nd

ex

No. of International Tickets Sold (Air/ Water/ Road) 1

Total Domestic Trips Passport IndexTotal Outbound Trips

Short Haul vs Long Haul Trips % Leisure Outbound TripsOutbound Air Passenger Carried

% Business Outbound Trips

Tourist Outbound Expenditure

Sou

th A

fric

a Tr

ave

l In

dex

‡

Holiday Arrivals (% of Total) MICE Arrivals (% of Total) Length of StayAverage Spend in South Africa

No. of Expatriates Travelling to South Africa*

Average Spend by Purpose

No. of International Packages Sold 1

*Total Arrivals to South Africa are estimated based on country of residence and not nationality (and includes information on expatriates travelling). This data is considered as a key component to estimate weights, and its impact has been accommodated while prioritising markets

‡The geographic positioning of a country has an impact on the outbound nature of the source markets; thus, to ensure relevance of outbound attractiveness of South Africa’s source markets, travel behaviour related to South Africa has been considered

Note: 1Excluded based on low data availability

20


For Level 2 analysis, a few redundant indicators are removed from the assessment by

leveraging correlation analysis to streamline the list of indicators

Markets: Attractiveness – Level 2 Indicators (Correlation)

Level 2

Total Domestic Trips


Short Haul vs Long Haul Trips

Total Outbound Trips*


% Leisure Outbound Trips

Outbound Air Passenger Carried

Holiday Arrivals (% of Total)

MICE Arrivals (% of Total)

Average Spend in South Africa

Length of Stay

Glo

bal

Tra

vel I

nd

ex

Sou

th A

fric

a Tr

avel

Ind

ex

Passport Index

Indicators are excluded on the basis of correlation between them. The indicators with correlation value of more than ±0.5 are excluded (subject to their relevance)

* Indicator is used as a composite score of the current value, historic growth rate and future growth rate

Total Outbound Trips

1.00 Total Domestic Trips

0.40 1.00 Passport Index

-0.03 -0.26 1.00 Tourist Outbound Expenditure

0.20 -0.08 0.25 1.00 Short Haul vs Long Haul Trips

- - 0.03 0.16 1.00 % Business Outbound Trips

-0.02 0.24 -0.36 -0.11 0.06 1.00 % Leisure Outbound Trips

0.02 -0.24 0.36 0.11 -0.06 -1.00 1.00 Outbound Air Passenger Carried

0.13 0.58 -0.02 -0.10 -0.10 0.18 -0.18 1.00 Holiday Arrivals (% of Total)

0.21 0.07 0.38 0.25 0.02 -0.16 0.16 0.13 1.00 MICE Arrivals (% of Total)

0.18 -0.03 -0.10 -0.04 -0.09 0.14 -0.14 0.13 -0.01 1.00 Average Spend in South Africa

- - -0.27 0.33 - 0.32 -0.33 0.66 - - 1.00 Length of Stay

0.06 -0.05 0.05 0.05 -0.12 0.00 0.00 0.11 0.22 0.06 - 1.00

21


Global and South Africa-specific travel trends and behaviour are likely to impact ‘South Africa’s Market Share’ in the outbound market; hence, it is leveraged as the dependent variable

Markets: Attractiveness – Level 2 Indicators (Regression)

Level 2Africa Land Markets Overseas MarketsAfrica Air Markets

Total Domestic Trips


Short Haul vs Long Haul Trips

Total Outbound Trips

Holiday Arrivals (% of Total)

MICE Arrivals (% of Total)

Average Spend in South Africa


Length of Stay

Glo

bal

Tra

vel I

nd

ex

Sou

th A

fric

a Tr

avel

Ind

ex

Passport Index

9%

20%

16%

8%

12%

5%

5%

12%

5%

8%

22%

9%

19%

6%

-

6%

9%

7%

17%

5%

21%

23%

15%

21%

-

5%

3%

3%

6%

3%

Market Share: Arrivals to South Africa by Total TripsDependent Variable

The weights are calculated by taking proportion of the coefficients of each variable in the regression equation

The weights are further readjusted to ensure that each variable is given relevant weight

22


Level 1 (Macroeconomic View) and Level 2 indicators (Tourism View) have a different magnitude of impact on tourist arrivals to South Africa. Therefore, the scores from these two analyses are appropriately cumulated to calculate the overall attractiveness of a market

To consider the expected difference in impact of the two parameters, both scores are provided a weighted percentage that reflects their impact on arrivals to South Africa

To calculate this ratio, the final scores of Level 1 and Level 2 are regressed against South Africa’s market share of arrivals, where coefficients from the regression output determine the weights for level 1 and 2 scores

The framework calculates the overall attractiveness score of source markets by combining scores from Level 1 and Level 2 analysis, after applying relevant weights

Markets: Attractiveness – Combined Score

Combined Score

Level 1 Score

Level 2 Score

Independent Variables

South Africa’s Market Share of Arrivals

Dependent Variable

Regression Analysis

Level 1 Weights: 20%

Level 2 Weights: 80%

Weights1

Level 1 Score

Level 2 Score


Score

Note: 1The weights have been calculated based on the relative contribution of each Level of analyses on the outcome of Level 2 across the different sets of markets, i.e., Africa Land, Africa Air and Overseas

23


Ability to Win Analysis

Ability to win analysis evaluates markets based on South Africa’s ability to operate and

perform in these markets

Markets: Attractiveness – Ability to Win

Relationship

Better political relations and welcoming visa/travel policies act as an advantage for a destination market, increasing the number of tourists from different source markets

Infrastructure

Existing diplomatic and tourism specific operational centres in source markets provide an additional advantage of ease of operation

MarketFavourability

Source markets with supporting business policies are easy to enter and conduct marketing operations

OperationalConnectivity

Better air connectivity and proximity between source and destination market provide additional advantages of reduced travel time and ease of travel, thereby improving travel

24


Qualitative indicators in the ability to win analysis are quantified on appropriate scales to conduct a relative assessment

Markets: Attractiveness – Ability to Win Indicators

Visa Regulations by South Africa

Current Partner NetworkPolitical Scenario South Africa’s Presence

Ability to Win

Trading Across Border Index

Enforcing Contracts Index

Starting a Business Index

Resolving Insolvency Index

Proximity to South AfricaAirports with Direct Flight

Perception as Leisure DestinationBrand Recall Rating as Affordable Destination

Rating as Leisure DestinationRating on Willingness to Visit Likelihood to Recommend

Relationship and Infrastructure

Market Favourability

Operational Connectivity

South Africa’sBrand Perception 1

Other Language Constraints

Note: 1Excluded based on low data availability on all markets

25


Indicators determining South Africa’s ability to operate and perform in these markets are

likely to influence the ‘Arrivals to South Africa’ from the source market; thus, arrivals is

leveraged as the dependent variable to determine the relative weights

Markets: Attractiveness – Ability to Win Indicators (Regression)

Ability to Win

Re

lati

on

ship

an

d

Infr

astr

uct

ure Visa Regulations by South

Africa

Current Partner Network‡

South Africa’s Presence

Political Scenario

Mar

ket

Favo

ura

bili

ty

Trading Across Border Index

Enforcing Contracts Index

Resolving Insolvency Index

Starting a Business Index

Others: Language Constraints

Airports with Direct Flight

Proximity to South Africa

Op

erat

ion

al

Co

nn

ect

ivit

y

‡ Leveraged ‘Tourism Competitiveness Score’ as a proxy to ‘Current Partner Network’, as state of tourism economy in a market is a good reflection of trade in the market, and can determine the possibility of having good partnerships

Africa Land Markets Overseas MarketsAfrica Air Markets

Tourist Arrivals to South Africa

17%

5%

5%

17%

6%

5%

5%

5%

10%

10%

15%

6%

17%

5%

5%

5%

5%

9%

15%

21%

6%

6%

9%

6%

7%

18%

6%

6%

6%

10%

21%

6%

5%

Dependent Variable

26


The framework calculates cost of tourist acquisition in each market, and factors in targets to be achieved and priority order of markets to distribute the marketing budget

Marketing Investment Framework: Investments

Priority Order of Markets

MarketsLevel 0:


availability


attractiveness


strength/stability



of Markets


Ability to Win

TargetsBaseline vs. Activated Growth:

Determine growth achieved with/withoutmarketing investment across different markets



Investments





Outcome: Relative ‘cost of acquisition’ of tourists across

all markets


portfolio markets


27


Budgets are allocated across the markets, in reducing order of attractiveness, to conduct in-market activity and achieve the desired growth

Opportunities that are attractive but cannot be invested in due to resource unavailability, have been categorised as ‘strategic’ markets

Remaining markets, which are not included in either the core set or the strategic set, will be dealt with minimum support

Classification of Markets across the Three Tiers: Investment Set

As SA Tourism has limited resources, it needs to prioritise the markets that should qualify in

its investment set, i.e., which can be nurtured through in-market marketing. Other

attractive opportunities need to be kept in the purview for future actions

Similarly, markets in the tiers of ‘Other Arrivals’ (i.e., VFR) and ‘Overall Arrivals’ are also classified as core and strategic

Strategic Markets

Rest of the World

Core MarketsBudgets exhaust here

28


Twenty nine (29) ‘core’ markets have been shortlisted, for dedicated

in-market marketing investments, of which:

Twenty two (22) markets predominantly contribute to holiday

and MICE arrivals

Five (5) markets predominantly contribute to VFR

Two (2) markets have the highest share of traders/resellers

The allocated budget for SAT could only afford to service a total of 29 countries. These

markets were categorised across the three tiers of the role pyramid, leading to a varied set

of responsibility within each tier.

Marketing Investment Framework: Core Markets

Core Markets (in order of priority)

Note: The categorisation across the three tiers is based on the prominent purpose of visit. For the “Holiday + MICE” tier, all Holiday and MICE arrivals have been considered, in addition to the other visits related to business, which are not classified as business resale purposes. “Other tourism arrivals” are primarily based on VFR and personal shopping. “Overall arrivals” primarily comprise business resale

India Denmark Belgium Portugal Sweden

Kenya Ireland Nigeria Namibia DRC

Netherlands Brazil Canada China Italy Tanzania

USA Australia Germany UK France Switzerland

Malawi Zambia

Other TourismArrivals (such as VFR)

Overall Arrivals (such as resellers and traders)

Holiday and MICEArrivals

Lesotho Swaziland Zimbabwe

Botswana Mozambique

29


Certain markets, ranked high in the investment framework, are not selected as ‘Core’ markets based on

value/volume contribution or available budgets. These markets are inspected for potential and ability to

collaborate, and are selected to form the ‘Strategic’ set

Based on the MIF the ROI provided sufficient ground for Treasury to allocate budget to

cover the additional 14 Strategic markets .

Marketing Investment Framework: ‘Core + Strategic’ Selection

3+1in Americas

3+4

in Asia Pacific

11+5

in Europe

12+4

in Africa+ #

Darker shade represents ‘Core’ markets

Lighter shade represents ‘Strategic’ markets

Additive numbers in grey represent ‘strategic’ markets

30


HUB-AND-SPOKE OPERATING STRATEGY FOR INTERNATIONAL MARKETS

OPERATING STRATEGY: The Hub and Spoke Model

SA Tourism will configure itself in a ‘Hub-and-Spoke’ manner, to ensure effective marketing initiatives, support to the value chain partners and effective delegation of authority and responsibility

represents hub in the region

South America

North America

Central Africa

Western Africa

Eastern Africa

Africa Land South East Asia

China

Australasia

Northern Europe

Southern Europe

United Kingdom

Central Europe

Malaysia

China

JapanIndia

Singapore

Canada

United States

BrazilArgentina

Tanzania

Botswana

Lesotho

MalawiMozambique

Namibia

Swaziland

ZambiaZimbabwe

Angola

Kenya Ethiopia

UgandaNigeria

Ghana

DRC

Portugal

Italy

France

Spain

United Kingdom

Ireland

GermanySwitzerland

NetherlandsBelgium

Finland

Norway Denmark

Sweden

Austria

UAE

Turkey

AustraliaNew Zealand

South Africa*

*Domestic market as well as markets in

South America, Central and Eastern Africa, and

Africa Land will be operated from South

Africa.

There will be some markets such as those in South America that will be managed virtually via third-party marketing agencies, in a prudent manner

31


The SA Tourism strategy is underpinned by the 5-in-5 National Tourism Target which is jointly owned by SAT and the PTAs. This drives strategic alignment, proportionate resource allocation and coordination of marketing activity.

Strategy Framework for Engagement with the Provinces

SA T

ouri

sm

5-in-5 National Tourism

Target Drives Resource

AllocationSource Markets Distribution Markets

India

Australia

Netherlands

United Kingdom

Germany

United States

China

Africa

Other DIRCO

Eastern Cape

Western Cape

Northern Cape

Gauteng

North West

Limpopo

Mpumalanga

Free State

KwaZulu-Natal

Success Factors:

• Making 5-in-5 come alive and

relevant in the provinces. APPs and

Strategies need to link up

• SAT and PTA become jointly

accountable for the targets

• Effort, resources and funding

deployed according to targets eg

hostings, APPs etc

• Elevate targets into provincial

performance (Premier + SOP)

• Grading targets included

PTA CVP:

• Strategy formulation and market

execution

• Global and local market support and

alignment

• Ownership of local activities and

activations + local capacity and

tourist activities

Current

10m

+

5m

in

5yrs

- 4% of global target

(eg)

- Key source markets

32


THANK YOU

marketing investment framework · contents • sa tourism’s goal for the next five years (slide...

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