south african tourism – business review...

South African Tourism – Business Review 2010/11

22 March 2011

Agenda

Vision/Mandate

Overall Performance

Performance against targets

Strategy in Action

Domestic Review

Tourism Grading Council Review

Financial Results for the 2010/11 financial year

Key Messages

Tourist arrivals for 2010 is at 8,073,552 which is a growth of 1,061,687 (+15.1%) versus 2009. This compares very well in international terms. Figures from the United Nations World Tourism Organisation show that global tourism arrivals is estimated to have grown by 6.7% in 2010, which means that South Africa outperformed the global market by more than 8%. Revenue figures will be released for annual report.

The domestic market was affected by the financial crisis as domestic tourism decreased by 8% in 2009 with 30 million trips being undertaken compared to the 33 million in 2008. Domestic tourists also tightened their spending in 2009 as total revenue declined by 14% to R22 billion. The figures for 2010 will be released on 29 March and included in annual report.

South Africa maintained a similar level of awareness in 2010, as was reported for 2009; however our performance dipped slightly on positivity and short-term consideration in 2010, compared to 2009. We performed exceptionally well in the period immediately after the World Cup, but then moderated down back to pre-World Cup levels by November 2010.

We have reached just over 1.7 billion consumers in 2010/11 with a combination of Brand TVC’s, vignettes, outdoor executions and online impressions.

Our key initiative for 2011/12 will be the roll-out of our 20 experiences in 10 days campaign and the launch of phase II which features visitors from Angola, Brazil, China & Germany.

Winning in 2011/12 is about pushing harder and leveraging our phenomenal Brand awareness/positivity from the 2010 World Cup. Our key marketing strategy will continue to focus on protecting our leadership in wildlife and adventure which will be supported by our hospitality and welcoming people. We have a powerful creative idea that will drive all our work in the 2011/12 fiscal.

Vision

Vision

For South Africa to be the preferred tourist destination in the world, in order to maximise the economic potential of tourism for our country and its

people

Mission of SA TourismTo develop and implement a world-class international tourism marketing

strategy for SA. In pursuance of this SAT will:

Facilitate the strategic alignment of the provinces and industry in support of the global marketing of tourism to SA.

Remove all obstacles to tourism growth.

Build a tourist-friendly nation.

Ensure that tourism benefits all South Africans.

Our Mandate

Share our vision with stakeholders

Share our vision with stakeholders

Use the trade to grow our business Use the trade to

grow our businessGrow & nurture our

staff Grow & nurture our

staff

Improve brand traction in markets

Improve brand traction in markets

Increase value- extraction in SA from

all tourists

Increase value- extraction in SA from

all tourists

Fine-tune internal systems and

communication

Fine-tune internal systems and

communication

SA Tourism’s objectives and strategies over the past couple of years until the end of 2010/11

Sustainable GDP Growth

Sustainable GDP Growth

Sustainable job creation

Sustainable job creation

Redistribution and transformation

Redistribution and transformation

The Tourism Act’s mandate to SA Tourism

is ...

. . . through four key

targets/objectives . . .

. . . by focusing on doing only the following “Big 6 things”

very well!

Achieve targeted total arrivals to SA in 2007 - 2010

Achieve targeted total arrivals to SA in 2007 - 2010

Achieve total average tourist spend inside SA in 2007 - 2010

Achieve total average tourist spend inside SA in 2007 - 2010

SA to be the most preferred tourist brand by 2014

SA to be the most preferred tourist brand by 2014

SA Tourism to be the best tourism organisation by 2010

SA Tourism to be the best tourism organisation by 2010

Overall Performance

9 Copyright © 2011 South African Tourism

Tourist arrivals to South Africa grew to 8,073,552 in 2010. This growth was driven by growth from all regions

AFRICAAFRICA

5,721,639 arrivals12.8% up from 2009

Central & South America120,329 arrivals109.2% up from 2009

North AmericaNorth America337,652 arrivals22.5% up from 2009

EuropeEurope1,321,624 arrivals8.1% up from 2009

AsiaAsia259,961 arrivals39.1% up from 2009

AustralasiaAustralasia128,149 arrivals26.3% up from 2009

Middle East49,279 arrivals19.3% up from 2009

Indian Ocean Islands19,538 arrivals19.2% up from 2009

Source: StatsSA, Tourism & Migration release, SAT analysis


SA continues to outperform global tourism growth, which grew by 6.7% in 2010 while tourist arrivals to South Africa grew by 15.1%

Note: UNWTO estimates incorporate provisional data for some regions

Source: Statssa Tourism & Migration release December 2010, SAT analysis; UNWTO World Tourism Barometer, Jan 2011

15.1%

6.4%

12.6%

3.2%

13.9%

7.7%6.7%

0%

5%

10%

15%

20%

25%

South Africa Africa Asia and the Pacific

Europe Middle East Americas World

Year-on-Year Change in Tourist Arrivals to each region%

Chan

ge

2009 Tourist arrivals (Millions)

7 45.8 181 456.9 55.6 140.5 877

2010 Tourist arrivals (Millions)

8.1 48.7 203.8 471.5 52.5 151.2 935


Tourist arrivals performance in 2010 exceeded that of 2009 across all months. For the first time we recorded a peak in June, traditionally our low season


Tourist Arrivals to South Africa by Month

Copyright © 2011 South African Tourism12

Tourist Arrivals to South Africa and Global Arrivals, 2009 and 2010Tourist Arrivals to South Africa and Global Arrivals, 2009 and 2Tourist Arrivals to South Africa and Global Arrivals, 2009 and 2010010

Tourist arrivals to South Africa have grown at a faster rate than the global growth rate

4.8 5.5

1.9 2.3

7.0 8.1

0.29 0.34

703 924

0

2

4

6

8

10

12

2009 2010 2009 2010 2009 2010 2009 2010 2009 2010

Long-haul Markets

Africa Air Markets

Africa Land Markets

All Markets Global Arrivals

While there was growth from all markets in 2010, long-haul markets grew the fastest at 21%

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 AfricaSource: StatsSA, Tourism & Migration release, SAT analysis UNWTO Tourism Barometer Jan 2011

Tour

ist

Arri

vals

(M

illio

ns)

12.8%

21%

15.1%

14%

9506.7%


The Americas and Asia & Australasia grew the fastest in 2010 with growth of 37.4% and 34.6% respectively

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2009 7,011,865 293,868 4,836,848 333,245 288,410 1,223,020 36,474

2010 8,073,552 335,155 5,455,301 457,981 388,110 1,321,624 115,381

Difference 1,061,687 41,287 618,453 124,736 99,700 98,604 78,907

% change 15.1% 14.0% 12.8% 37.4% 34.6% 8.1% 216.3%

Total Africa - Air Africa - Land AmericasAsia &

AustralasiaEurope Unspecified

Tour

ist

arri

vals

Tourist Arrivals to South Africa by Region, Jan to Dec


Performance against targets for 2010/11 (Foreign Visitor arrivals)


The 2010 target of 4.2% was exceeded as foreign visitor arrivals grew by 14.7%.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2009 9,933,966 317,122 7,490,425 379,907 322,290 1,348,502 75,720

2010 11,395,700 358,809 8,498,735 506,050 431,044 1,440,590 160,472

Difference 1,461,734 41,687 1,008,310 126,143 108,754 92,088 84,752

% change 14.7% 13.1% 13.5% 33.2% 33.7% 6.8% 111.9%

Total Africa - Air Africa - Land AmericasAsia &

AustralasiaEurope Unspecified

Visi

tor

arri

vals

Foreign visitor arrivals to South Africa by Region, Jan to Dec


2010 target 4.2% 2.7% 5.6% 1.1% 1.6% 1.0%

2011 target 1.0% 1.2% 1.1% 0.8% 0.5% 0.9%

2011 best case target 5.6% 6.0% 5.4% 6.6% 6.6% 6.6%

Confidential


Conversion – Global Target (2007-10)

2007 2008 2009 2010

Market Closure Ratio Rank Closure

Ratio Rank Closure Ratio Rank Closure

Ratio Rank

Netherlands 1 in 3.37 6 1 in 3.44 7 1 in 3.27 6 1 in 2.96 6

Germany 1 in 2.17 9 1 in 2.17 8 1 in 2.21 7 1 in 2.14 8

UK 1 in 2.07 6 1 in 2.16 7 1 in 2.40 7 1 in 2.24 8

France 1 in 4.77 10 1 in 3.44 8 1 in 3.90 8 1 in 3.57 8

USA 1 in 4.28 9 1 in 3.87 9 1 in 3.57 10 1 in 3.14 10

India 1 in 2.31 9 1 in 1.91 8 1 in 2.05 8 1 in 1.68 6

Australia 1 in 4.86 8 1 in 3.40 8 1 in 2.79 8 1 in 2.82 7

2007 2008 2009 2010

Market Closure Ratio

Rank Closure Ratio

Rank Closure Ratio

Rank Closure Ratio

Rank

Italy 1 in 3.29 6 1 in 3.44 7 1 in 4.09 8 1 in 3.98 6

China 1 in 2.36 9 1 in 2.10 8 1 in 2.44 6 1 in 3.45 7

Japan 1 in 8.40 10 1 in 6.36 9 1 in 4.77 9 1 in 4.44 8

Significantly below Average for 10 destinations (at 95% confidence level)

Core Markets1 in 2.90 (2007)1 in 2.75 (2008)1 in 2.85 (2009)1 in 2.73 (2010)

Core Markets1 in 2.90 (2007)1 in 2.75 (2008)1 in 2.85 (2009)1 in 2.73 (2010)

Investment Markets1 in 2.96 (2007)1 in 2.78 (2008)1 in 3.12 (2009)1 in 3.92 (2010)

Investment Markets1 in 2.96 (2007)1 in 2.78 (2008)1 in 3.12 (2009)1 in 3.92 (2010)

Note: Global closure ratios weighted according to marketing spend in market; Closure Ratio = Visited in Past 18 Months / Sought Info in the PastSource: SAT BrandTracker Feb-07 through Nov-10 (merged for each year)

Global Closure Ratio1 in 2.91 (2007)1 in 2.75 (2008)1 in 2.88 (2009)1 in 2.84 (2010)

Global Closure Ratio1 in 2.91 (2007)1 in 2.75 (2008)1 in 2.88 (2009)1 in 2.84 (2010)

The closure ratio increased for core markets from 1 in 2.85 in 2009 to 1 in 2.73 in 2010 , while it dropped for investment markets from 1 in 3.12 in 2009 to 1 in 3.92 in 2010

Significantly below Average for 10 destinations (at 95% confidence level)

Confidential


SA Brand Journey – Global Target (2007-10)

South Africa maintained a similar level of awareness in 2010, as was reported for 2009; however its performance dipped slightly on positivity and short-term consideration in 2010, compared to 2009

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; Global Average, weighted according to investment spend – Core = 91%, Investment = 9%; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Feb-07 through Nov-10 (merged for each year)

Awareness Positivity Sought Info in the Past

Likely to Visit in Next 18 Months

2007 Baseline 75% 38% 23% 12%

2008 Actual 76% 37% 22% 11%

2009 Actual 79% 38% 21% 11%

2010 Actual 79% 36% 22% 10%

Global Target 2010 77% 40% 26% 14%

Global Targets

Confidential


SA Brand Journey – Global Target (2010)

South Africa performed very well in the period immediately after the World Cup, but then moderated down back to pre-World Cup levels by November 2010

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; Global Average, weighted according to investment spend – Core = 91%, Investment = 9%; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker

Awareness Positivity Sought Info in the Past

Likely to Visit in Next 18 Months

2009 Actual 79% 38% 21% 11%

2010 February 78% 37% 22% 11%

2010 August 85% 43% 26% 14%

2010 November 79% 35% 22% 10%

Global Targets

Confidential


2008 2009 2010 (February)

2010 (August)

Total Awareness

Unaided Awareness

Positivity

Long Term Consideration

Likely to Seek info

Sought Info

Familiarity

Short Term Consideration

Visited Recently

Closure Ratio

78% 81%

20% 19%

38% 39%

32% 33%

18% 18%

22% 21%

22% 22%

11% 11%

8% 7%

1 in 2.75 1 in 2.85

80% 87%

19% 21%

38% 44%

32% 39%

17% 24%

21% 26%

22% 19%

11% 15%

8% 11%

1 in 2.82 1 in 2.49

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & US = 17%Source: SAT Brand Tracker

Brand Journey Scores in Core Markets – Longitudinal Trend

Back To Summary

2010 (November)

81%

18%

35%

29%

17%

22%

21%

10%

9%

1 in 2.35

The performance immediately after the World Cup was very good within the core markets, but by November we had slipped to pre-World Cup levels. Our closure ratio however improved to its best levels since 2008

Confidential


2008 2009

Total Awareness

Unaided Awareness

Positivity

Long Term Consideration

Likely to Seek info

Sought Info

Familiarity

Short Term Consideration

Visited Recently

Closure Ratio

55% 58%

11% 14%

29% 32%

27% 28%

20% 21%

22% 23%

9% 9%

11% 11%

8% 7%

1 in 2.78 1 in 3.12

60% 65%

11% 10%

31% 33%

30% 34%

22% 24%

25% 28%

9% 8%

12% 13%

6% 7%

1 in 4.02 1 in 4.04

Note: Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25% Source: SAT Brand Tracker

While the investment markets also witnessed a similar pattern of performance, the closure ratio for these markets did not reach 2008 levels

Brand Journey Scores in Investment Markets – Longitudinal Trend

2010 (November)

61%

12%

29%

26%

20%

24%

9%

9%

7%

1 in 3.52

2010 (February)

2010 (August)

Confidential


Key Brand Journey Metrics (2010)

Total Awareness Positivity Likely to Visit

in FutureLikely to Seek

Info Sought InfoPlan to Visit in

Next 18 Months

Visited Recently

Australia 83% (81%) 27% (31%) 25% (26%) 9% (10%) 12% (14%) 5% (7%) 4% (5%)

France 76% (78%) 38% (41%) 29% (32%) 20% (21%) 23% (23%) 10% (11%) 6% (6%)

Germany 69% (69%) 35% (36%) 28% (29%) 14% (15%) 17% (17%) 9% (9%) 8% (8%)

India 65% (57%) 42% (34%) 37% (29%) 39% (30%) 35% (26%) 24% (17%) 21% (13%)

Netherlands 87% (91%) 41% (47%) 31% (39%) 15% (18%) 27% (28%) 8% (13%) 9% (9%)

UK 93% (92%) 35% (39%) 37% (37%) 16% (16%) 24% (22%) 13% (13%) 11% (9%)

USA 81% (79%) 34% (37%) 27% (30%) 15% (15%) 17% (16%) 7% (9%) 5% (4%)

China 74% (68%) 30% (33%) 35% (35%) 28% (33%) 32% (34%) 16% (20%) 9% (14%)

Japan 22% (24%) 9% (11%) 12% (14%) 3% (3%) 6% (5%) 2% (2%) 1% (1%)

Italy 73% (72%) 43% (43%) 32% (32%) 25% (22%) 30% (25%) 11% (10%) 8% (6%)

Core Markets 80% (81%) 37% (39%) 30% (33%) 17% (18%) 22% (21%) 10% (11%) 9% (7%)

Investment Markets 60% (58%) 30% (32%) 28% (28%) 21% (21%) 25% (23%) 10% (11%) 7% (7%)

Kenya 63% (65%) 36% (33%) 46% (41%) 37% (34%) 37% (34%) 28% (28%) 29% (29%)

Nigeria 66% (50%) 35% (24%) 35% (33%) 34% (29%) 29% (19%) 23% (21%) 16% (14%)

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; All rating questions have been analyzed using top 2 box approach; data in brackets ( ) represents the 2009 dataSource: SAT BrandTracker Feb-10 and Nov-10

Confidential


Knowledge of the Brand – Global Target (2007 - 2010)

Memorable (Average)

Nature & Wildlife (Leadership)

Welcoming People (Average)

Adventurous (Leadership)

Value for Money

Table Stakes (Require Improvement)

Variety

Breathtaking

Enriching

Safety & Security

Imm

edia

te F

ocus

2008

to 2

010

Long

Ter

m B

uild

Reinforces Memorable

5.64 (2010) 5.69 (2009) 5.65 (2008) 5.68 (2007)

6.09(2010) 6.12 (2009) 6.07 (2008) 6.10 (2007)

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; Global Average, weighted according to investment spend – Core = 91%, Investment = 9%Source: SAT BrandTracker Feb-07 through Nov-10 (merged for each year)

4.69(2010) 4.70 (2009) 4.73 (2008) 4.75 (2007)

5.70(2010) 5.74 (2009) 5.69 (2008) 5.70 (2007)

5.62(2010) 5.66 (2009) 5.62 (2008) 5.67 (2007)

5.50(2010) 5.55 (2009) 5.51 (2008) 5.51 (2007)

5.47(2010) 5.51 (2009) 5.49 (2008) 5.51 (2007)

4.48(2010) 4.52 (2009) 4.56 (2008) 4.58 (2007)

3.36(2010) 3.41 (2009) 3.54 (2008) 3.53 (2007)

South Africa performance declined slightly across all the brand knowledge attributes in 2010, as compared to 2009

Confidential


Knowledge of the Brand – Global Target (Feb’10 Nov’10)

Memorable (Average)

Nature & Wildlife (Leadership)

Welcoming People (Average )

Adventurous (Leadership)

Value for Money

Table Stakes (Require Improvement)

Variety

Breathtaking

Enriching

Safety & Security

Imm

edia

te F

ocus

Feb

to N

ov 2

010

Long

Ter

m B

uild

Reinforces Memorable

5.65 (Nov’10) 5.81 (Aug’10) 5.63 (Feb‘10)

6.07 (Nov’10) 6.19 (Aug’10) 6.12 (Feb’10)

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; Global Average, weighted according to investment spend – Core = 91%, Investment = 9%Source: SAT BrandTracker Feb-07, Aug-10 and Nov-10

4.79 (Nov’10) 5.02 (Aug’10) 4.60 (Feb’10)

5.69 (Nov’10) 5.84 (Aug’10) 5.72 (Feb’10)

5.60 (Nov’10) 5.79 (Aug’10) 5.65 (Feb’10)

5.49 (Nov’10) 5.67 (Aug’10) 5.51 (Feb’10)

5.48 (Nov’10) 5.66 (Aug’10) 5.46 (Feb’10)

4.52 (Nov’10) 4.77 (Aug’10) 4.44 (Feb’10)

3.42 (Nov’10) 3.61 (Aug’10) 3.31 (Feb’10)

South Africa performance was better in the Aug Wave (primarily due to the FIFA World Cup), when compared to the other two regular waves

Confidential


Metric Netherland s

German y UK France USA India Australi

a Italy China Japan Kenya Nigeria

Memorable 5 (4) 4 (3) 5 (7) 8 (7) 8 (8) 7 (9) 5 (4) 4 (4) 7 (4) 8 (5) 6 (4) 4 (8)

Adventurous 3 (2) 4 (2) 3 (3) 3 (3) 3 (3) 1 (2) 2 (2) 3 (3) 2 (2) 2 (2) 3 (2) 7 (8)

Natural Wildlife Experience 2 (1) 4 (3) 2 (2) 2 (2) 2 (2) 2 (2) 1 (2) 2 (3) 2 (3) 3 (3) 1 (2) 6 (3)

Welcoming People You Can Interact With 9 (8) 9 (9) 9 (9) 8 (8) 7 (5) 6 (8) 9 (9) 8 (7) 7 (8) 9 (8) 10 (10) 8 (7)

A Wide Variety of Experiences 4 (3) 4 (4) 4 (4) 5 (6) 5 (4) 5 (4) 7 (2) 4 (4) 7 (7) 8 (8) 2 (5) 5 (5)

Breathtaking 2 (1) 3 (2) 3 (6) 8 (5) 5 (4) 4 (5) 3 (3) 2 (3) 2 (2) 6 (5) 9 (9) 7 (10)

Enriching 5 (4) 6 (3) 7 (6) 8 (8) 9 (8) 7 (9) 8 (7) 5 (5) 7 (9) 5 (5) 6 (5) 6 (9)

Unique 6 (3) 4 (3) 7 (7) 6 (7) 8 (5) 7 (9) 6 (5) 4 (5) 2 (4) 5 (4) 10 (9) 9 (8)

An Authentic Travel Experience 5 (4) 6 (4) 6 (6) 6 (6) 9 (5) 5 (9) 6 (8) 3 (3) 9 (5) 5 (4) 5 (6) 9 (5)

Value for Money 9 (8) 10 (9) 5 (7) 9 (9) 9 (8) 7 (9) 7 (7) 9 (9) 9 (8) 9 (10) 6 (5) 9 (10)

Safety & Security 10 (10) 10 (10) 10 (10) 9 (8) 6 (6) 9 (9) 10 (10) 7 (6) 10 (10) 10 (10) 10 (10) 10 (10)

Knowledge of the Brand – SA Rank Versus All Destinations (2010)

Ranking (out of 10) of The SA Brand Relative to Competitors Along Key Brand Attributes – 2010

Compared to 2009, South Africa’s ranking improved in India and Italy, whereas it declined in three of its core markets i.e. Netherlands, Germany, and US

Note: For ranking purposes, if there are more than 10 destinations in survey, the following destinations are removed from rankings: USA followed by Italy and France; data in brackets ( ) represents the 2009 rankingSource: SAT BrandTracker Feb-10 and Nov-10

When SA is ranked highest amongst competitors When SA is ranked lowest amongst competitors

Significantly Above Average for 10 destinations (at 95% confidence level) Significantly Below Average for 10 destinations (at 95% confidence level)

Strategy In Action

Global Reach

Global Media – BBC/Total Reach – 296,250,000 million

BBC

Europe (including: Spain, Germany, Italy)

Africa (including: Nigeria, Algeria, Ghana, Kenya, etc)

Middle East (including: Israel, Qatar, Oman, Kuwait, Iraq, etc)

Asia (including: India, Japan, China, Thailand, New Zealand, Singapore, etc)

Americas (including: Canada, Brazil, Chile, Honduras, Guatemala,

Venezuela, etc)

Global Media – CNN/Total Reach – 609,741,945 million

CNN

Total EAMA: 175,696,945 million

Europe (including: UK, Greece, Portugal, Spain, Sweden, Switzerland, Croatia,

etc)

Middle East (including: Turkey, Iran, Israel, Egypt, Saudi Arabia, etc)

Africa (including: Angola, Zambia, Cameroon, Ivory Coast, etc)

Total USA: 434,045,000 million

Global Media – EUROsport/Total Reach – 123,026,000 million

EUROsport

The Sports’ & Golf Destination programmes, 4x Sports’ Traveller programmes

& 3x Business Class programmes

Sports related sponsorships:

Eurogoals

Spot airing around sports events:

Eurogoals

USA PGA

South Europe and Mediterranean Countries (including: Cyprus, France,

Algeria, Italy, Malta etc)

West and North Europe (including: Finland, Norway, Sweden, Denmark

etc)

Central and East Europe (including: Bulgaria, Croatia, Czech Rep, Estonia,

Poland etc)

Fox

Netherlands

UK

Germany

Italy

France

Portugal

Spain

Global Media – FOX/Total Reach – 31,839,483 million

National Geographic

Europe

Africa

Australia

USA

Asia & Middle East

Global Media – National Geographic/Total Reach – 370,726,201 million

News Corporation

The News Corp stable includes ESPN star, Sky News, Sky Sports and Fox

Pan Europe

Asia (including: Korea, Singapore, Taiwan, Sri Lanka, etc)

Pan Latin America (including: Argentina, Mexico, Chile, etc

Global Media – News Corporation/Total Reach – 344,748,178 million

Total Global Media Coverage – 1,776,331,807 billion

Online Performance

Global Online – Performance

Website Traffic

Oct.01, 2009 – Mar.31, 2010 Oct.01, 2010 – Mar.2011 Growth

Website traffic 1,186,036 1,443,181 21.6%

No. of page views 4,603,672 4,455,972 (3.3%)

Pages/visit 3.8 3.1 (18.5%)

Call Centre

Oct.01, 2009 – Mar.31, 2010 Oct.01, 2010 – Mar.2011 Growth

Calls 18,308 16,996 (7.2%)

E-mail 7900 7909 Flat

Fax 130 149 15%

Abandoned calls 3586 3906 8.9%

Media Investment review versus Competitors

Our Brand Share of Voice and competitors - 2010

Business Tourism Performance

The number of visitors at Meetings Africa grew by 21% from 1,755 in 2010 to 2,131 in 2011.

Number of attendees to Meeting Africa

817

2,634

879

1,755

2,948

2,131

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Visitors Exhibitor (personnel) Total Attendees

2010 2011

Source: Meetings Africa registration database

Atte

ndee

s

Summary of Registered Attendees

2010 2011% change 10 vs 11

Visitors 1 755 2 131 21.4%

Exhibitors 879 817 -7.1%

Total Attendees 2 634 2 948 11.9%

Most of the visitors to Meetings Africa were Travel Buyers and that number has consistently grown since 2010.

Types of visitors to Meetings Africa 2009 to 2011

398

463

460

943

5166151

97 5982102165

364

1,313

0

200

400

600

800

1000

1200

1400

Buyers Allied Industry

Assoc / NGO Rep

Media Corporate Industry

Association

Student Government Rep Local Trade

Visi

tors

2010

2011

Note: Travel Buyers comprise of both local and international buyers.Source: Meetings Africa registration databaseN = 1,755 for 2010 and N = 2,131 for 2011

Share of Visitors 2010

54% 23% 9% 6% 4% 3% 3% 0%

Share of Visitors 2011

62% 17% 8% 5% 4% 3% 2% 0%

The number of registered exhibiting companies increased by 39% in 2011

153

212

0

50

100

150

200

250

Registered Exhibiting Companies

Vis

ito

rs

2010

2011

Registered Exhibiting Companies to Meetings Africa

-6% 39%

Source: Meetings Africa registration databaseNote: only those that registered their details online are reflected

Global Comms/PR Reach

Global Comms/PR Performance

COUNTRY Oct. 2009 – Mar. 2010 ROI Oct. 2010 – Feb. 2011 ROI

SOUTH AFRICA* 26,671,763.19 1:9 13,473,635.17 1:6KENYA 20,563,240.50 1:108 6,696,669.20 1:44

NIGERIA 8,444,897.07 1:38 9,121,479.20 1:51ANGOLA** 707,700.00 1:5

DRC** 177,030.00 1:1AUSTRALIA 19,996,220.79 1:46 36,127,576.84 1:96

CHINA 215,879,298.81 1:719 68, 686,092.37 1:294

INDIA*** 17,049,276.48 1:54 3,502,016 1:15JAPAN 102,943,807.50 1:108 23,376,863.64 1:47

FRANCE 339,746,582.59 1:823 98,299,880.80 1:292GERMANY 457,667,677.00 1:698 96, 244,591.60 1:197

ITALY 260,711,124.21 1:755 12,678,348.05 1:48NETHERLANDS 147,840,731.53 1:448 17,390,266.40 1:67

UK 77,888,762.14 1:70 244,951,429.62 1:278USA 18,622,224.00 1:26 177,974,555.46 1:318

GRAND TOTAL PUBLICITY VALUE

PER MONTH IN RANDS 1,714,025,605.81 794,390,203.48

* SA includes Global, Corporate, Business Tourism, Product & Itinerary, Domestic and SADC** PR agencies appointed in Jan.2011*** PR services in India were terminated in Oct.2010. New agency appointed in mid Jan.2011

Domestic Review

Domestic Tourism Indicators

Note: 1Varies greatly due to seasonalitySource: SAT Domestic Tourism Surveys for 2007 – 2009

Key Metrics 2007 2008 2009

Domestic Travel

Incidence

Annual 43.5% 46.5% 47.6%

Monthly1 9.9% 9.0% 8.2%

Travellers 12.7 million 13.9 million 14.6 million

Number of Trips

Annual 35.9 Million 32.9 Million 30.3 Million

By PurposeVFR: 68%, Holiday: 16%,

Business: 7%, Religious: 7%, Medical: 1%

VFR: 71%, Holiday: 16%, Business: 5%, Religious: 5%,

Medical: 2%


Medical: 1%

Spend

Total Annual Spend

R20.0 Billion R25.8 Billion R22.4 Billion

By PurposeVFR: 45%, Holiday: 37%,

Business: 14%, Religious: 3%, Medical: 0%


Medical: 2%


Medical: 1%

Average Spend per Trip / per

DayR550 / Trip; R120 / Day R780 / Trip; R170 / Day R730 / Trip; R170 / Day

Trip Length

Total Annual Bed Nights 157.8 Million 149.0 Million 128.4 Million

Average Nights per Trip 4.4 4.5 4.2

Tourism Grading Council Review

Introduce Grading Criteria

which are globally

recognised and credible to

visitors /stakeholders

Introduce Grading Criteria

which are globally

recognised and credible to

visitors /stakeholders

Improve competence and

integrity of Assessors

Improve competence and


Simplify Billing process and implement a

more equitable fee structure

Simplify Billing process and implement a

more equitable fee structure

Get industry to see value in

participating in the grading

system

Get industry to see value in

participating in the grading

system

Improve the integrity of the grading process

using IT Infrastructure

Improve the integrity of the grading process

using IT Infrastructure

Stop illegal use of stars and protect the

TGCSA brand

Stop illegal use of stars and protect the

TGCSA brand

Firstly..... Introduce Grading Criteria which are globally recognised and credible to

visitors & stakeholders

Introduce Grading Criteria which are globally recognised and credible to

visitors & stakeholders

Key Achievements during 2010-2011

•

Comprehensive Consultation with the industry and other key stakeholders.

•

Commence implementation of NEW Grading Criteria in October 2010

•

Grading Criteria incorporate UA criteria.•

End of March 2011, ca1500 properties graded using NEW grading criteria.

•

Rest of the database to follow as they expire in the next 12 months.

SECONDLY.... Stop illegal use of stars and protect the TGCSA brand

Stop illegal use of stars and protect the TGCSA brand


•

Plaque has been redesigned.•

Comments and input given into Draft Legislation

•

Working closely with NDT to ensure Govt Depts use ONLY graded establishments.

•

Reliance and assistance through the Consumer Protection Act.

New Consumer Protection Act: 2011

THIRDLY.......Improve competence and

integrity of Assessors Improve competence and



•

Very strict Service Provider Agreement signed with all Assessors effective October 2010.•

Code of Conduct•

Strict performance targets•

Anti-corruption/misrepresentation clauses.

•

Training of All Assessors during August 2010. 80% pass mark obtained.

FOURTHLY... Simplify Billing process and implement a more equitable fee

structure

Simplify Billing process and implement a more equitable fee

structure

•

Grading fee based on:•

Average room/unit rate charged

•

Quality Star Grading applied for

•

Number of rooms/unit

•

Thus ensuring Equity.


•

New Grading Fee introduced 1 October 2010.

•

Assessor portion reduced to 55% from 60%.•

Comprehensive Communications Plan rolled out to introduce the new fee structure.

FIFTHLY........ Improve the integrity of the grading process using IT

Infrastructure

Improve the integrity of the grading process using IT

Infrastructure


•

Successful implementation of QiT (Quality in Tourism) system.

•

Awards Committee Meetings happy with progress as properties can now be processed on QiT from start to finish.

•

A few glitches being worked on and some change-requests to enhance the operations and service delivery.

•

All users fully trained (both Assessors and TGCSA employees)

SIXTHLY........ Get industry to see value in participating in the grading

system

Get industry to see value in participating in the grading

system

TGCSA contributes towards SA’s IDENTITY on the GLOBAL STAGE

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-102010-11 Budget

Total Renewals 986 1222 2017 3784 4742 5132 6007 7007

Total New Gradings 986 236 795 1767 958 658 1808 1635 1281

Grand Total Est 986 1222 2017 3784 4742 5400 6940 7642 8288

Annual Increase 24% 65% 88% 25% 14% 29% 10% 08%

Monthly Awards Meetings 82 102 168 315 395 450 578 637 691

10% annual increase

Budget figures will be met end March 2011.

Robust clean-up of the database underway to ensure 100% CLEAN database into new IT system - QiT

Financial results for the 2010/11 financial year

1. As at 31 January 2011, South African Tourism spent R 660,4 million or 87% of its year- to-date budget of R 760,0 million (for the first 10 months of the 2010/11 financial year).

2. While the strong Rand made South Africa increasingly unaffordable as a tourist destination, it did benefit South African Tourism from a budget point of view and substantial realised forex profits could be reallocated to existing or new marketing projects around the world.

2. Although most of South African Tourism’s 16 Business Units and 10 Country Offices managed to spend 100% of their approved 2010/11 budgets, South African Tourism is expected to have a net surplus of approximately R 15 million for the 2010/11 financial year for the following reasons:

2.1 Angola (South African Tourism decided to delay its office opening in Luanda pending the conclusion of research and this office will now only be formally opened early in the 2011/12 financial year)

2.2 London office (certain expenditure such as for the Emirates JMA were delayed)2.3 China office (SAT generated some savings on its overheads in this market)2.4 Foreign exchange savings (generated during February and March 2011 that could

not be reallocated to new projects in time given the uncertainty of the continued strength of the Rand)

South African Tourism’s financial position

Thank You

south african tourism – business review...

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