CAN TOURISM BE A CATALYST FOR ECONOMIC DEVELOPMENT?

CAN TOURISM BE A CATALYST FOR ECONOMIC

DEVELOPMENT?

TOURVEST HOLDINGS (PTY) Ltd

Established in 1997

4 500 employees

Estimated market value of

R4 billion rand

Manages 65 brands

globally

Africa’s largest integrated

tourism company

WHAT IS THE SECTOR’S ROLE

IN ECONOMIC DEVELOPMENT?

• Average spend per

foreign tourist in 2013 –

R6 578

• 14 million foreigners

visited SA in 2013 vs 13

million

in 2012

• 655 000 persons

employed in the industry

- 4.4% of gross

employment in SA

R0R100

R200R300

R400

Total Tourism Spend

Domestic Spend

Foreign Spend

Tourism GDP Contribution

2012

2013

R93 billion/ R103 billion

R94 billion

R124 billion

R199 billion/ R218 billion

OUR INDUSTRY IN PERSPECTIVE

Tourism contribution to total GDP 2.9%

Product International spend for every R100 spent …

Domestic spend for every R100 spent …

Non-specific products R27 R19

Tourism-related products R15 R10

Other products R20 R13

Accommodation R14 R15

Transportation excl. air R12 R29

Air transportation R12 R14

WHAT IS THE SECTOR’S ROLE

IN ECONOMIC DEVELOPMENT?

WHO ARE OUR VISITORS?

Holiday-makers:

88%Foreign students and workers:

2.3%Business travellers

1.4%

MAIN INBOUND DEPARTURE

POINTS

SADC INBOUND TRAVELERS

INBOUND TRAVELERS FROM

AFRICA

STRATEGIC PRESSURE-

POINTS AND CHALLENGES

Communication anomalies between government, the private sector

and communities

Failed long-term partnerships between government, the private sector

and communities

Non-aligned strategic long-term growth in the tourism sector and

national policy

STRATEGIC PRESSURE-

POINTS AND CHALLENGES

Safety and security; the role of the media and xenophobia

Political stability and maintaining long-term relationships with city

appointees

Target markets; roll-out and product efficiencies

A TALE OF TWO CITIES

Parys

• Up and coming tourist hotspot

• Easily accessible

• Tourist attractions maintained and easily accessible

• Variety of activities offered: fishing, museum, adventure, etc

• Wide range of good-rates accommodation

• Entertainment and big selection of dining option readily available and accessible

• Revamped as an ‘arty’ town, cloning the Dullstroom ambience

Mthatha (formerly Umtata)

• Unsuccessful tourist hotspot

• Poor road infrastructure

• Tourist attractions inaccessible

and usually closed ‘for repairs’

• Limited activities on offer:

museums, hiking.

• Poor selection of good-rated

accommodation

• No dining options or entertainment

readily available

• Post-apartheid – economic

recession

THE WAY

FORWARD?

• Maximising feet in

partnership with

inbound operators

• Strategic planning

• Social media

optimisation and

relevance in

modern marketing

• Infrastructural

maintenance and

re-investment

Q A&

THANK YOU