Slide no. 1 © South African Tourism 2010 Click to edit Master subtitle style SA Tourism’s 2009/10 Annual Report and Financial & Performance Information.

Slide no. 1 © South African Tourism 2010

Click to edit Master subtitle style

SA Tourism’s 2009/10 Annual Report and Financial & Performance Information for the 6 months that

ended on 30 September 2010

Presentation to the Portfolio Committee10h00 – 13h4519 October 2010


2

Index

1. SA Tourism Vision, mission, values and structure (slides 2 – 5)2. Portfolio Review methodology (slides 6 - 9)3. Outcomes of SA Tourism’s fourth Portfolio Review conducted

during July/August 2009 by SA Tourism Strategic Research Unit in consultation with Exco, Manco and TOMSA levy collectors (slide 10)

4. Government’s priorities and SA Tourism high-level mandate, business objectives and strategies 2007-2010 (slides 11 - 15)

5. SA Tourism’s progress against the 4 high-level objectives to date (slides 16 - 40)

6. Grading Council statistics (slides 41 - 43)7. SA Tourism’s Financial performance during 2009/10 (slides 44 –

49)8. SA Tourism’s engagement with other stakeholders (slides 50 -

51)9. SA Tourism’s Business planning process (slide 52)10. Measuring the 2010 World Cup & way forward (slides 53 – 73)11. Challenges for SA Tourism going forward ( slides 74 - 76)12. Extracts from SA Tourism’s 2011/12 Strategic Plan (slides 77 -

87)13. SA Tourism’s finances as at 31/8/2010 (slide 88)14. Conclusion (slides 89 – 95)

Slide no. 3 © South African Tourism 2010Slide no. 3 © South African Tourism 2010

OUR MANDATE


A quick recap of SA Tourism’s vision, mission and values

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 peopleMission of SA Tourism

To 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


Values of SA Tourism

Pushing the boundaries of excellence in all we do

Teamwork

Feel responsible and be accountable

Care for South Africa and each other

Integrity

Respect for the

purpose, people

and assets of the

organisation

We unconditionally respect our organisation’s people, its purpose and its assets.

Living this respect with integrity translates into an authentic caring for South Africa and each other, a feeling of responsibility, and the acceptance of accountability for the outcomes of our actions.

Our team pushes the boundaries of excellence in everything we do.


South African Tourism has 10 overseas offices in 4 regions

• Africa

This regional office operates from SA Tourism’s Sandton Head Office and coordinates all marketing activities in East Africa, West Africa, SADC countries and domestic marketing inside South Africa.

SA Tourism plans to open an office in Angola following the completion of detailed research (approximately April 2011)

• Asia and Australasia

Australia, Japan, India and China

• UK and Americas

United States of America and the United Kingdom

• Europe

Germany, France, Netherlands and Italy


7

South African Tourism has 15 business units

• Office of the CEO/COO (including Legal, Internal Audit & Admin)• Human Resources• Africa Portfolio (including Domestic Marketing)• Americas Asia & Australasia Portfolio• Europe & UK Portfolio• Events• Business Tourism• Central Marketing (including Global Brand, Channel & Agency

Management)• E-Business• Research• PR & Communications• Product & Itinerary • Finance• TGCSA• Business Systems (previously known as IT)


SA Tourism’s Portfolio review methodology (done every 3 years)In essence, it adopts a “fresh eyes” approach by considering all the countries in the world, and filtering them based on a set of objective attractiveness criteria

Consideration Set

Attractive Markets

COST-BENEFIT EVALUATION &

UNDERSTANDING OF MARKETING ISSUES

CORE, TACTICAL, INVESTMENT &

WATCHLIST MARKETS

Salient Set

1s

t F

ilter

Attra

ctiv

ene

ss

C

riteri

a

Qualitative process involving a panel

discussion

2n

d

Filter

4th

F

ilter

Approach to Portfolio Review


How attractive are these markets in the short term

and the long term?

Core, tactical, investment and watch-list markets

2nd filter

Key steps of the Portfolio Review Process

Application of cost-benefit evaluation

1st filter

4th filter

Exclude markets with less than 20,000 arrivals p.a. or

no airlift

3rd filter

Markets with less than 20,000 arrivals p.a. in 2008

but with airlift (strategic hubs)

Final portfolio

Top sub-Saharan Africa markets PLUS Africa land

markets

Exclude sub-Saharan Africa

Exclude markets with less than 4 million people

living in urban areas and less than 20,000 arrivals

p.a. or no airlift

Include all Africa land markets*

Exclude markets of less than 3 million people or

GDP per capita is less than US$2,000

Top 50 markets in terms of outbound volume and

value

Salient set

*Africa land markets are markets where more than 60% of arrivals to SA arrive by land.


The results of the evaluation will illustrate the suggested core, tactical, investment and watch-list markets within each region

Results of Portfolio Review

Less Attractive But Easier

Tactical Markets Markets where there are particular

opportunities, i.e. “low hanging fruit”

15% of organisation’s effort deployed against these markets

Attractive And Easier

Core Markets Markets that deliver the “bread &

butter” 60% of organisation’s effort

deployed against these markets Best capabilities allocated to these

markets

Less Attractive And Difficult

Watch-list Markets

Markets that are on the radar Activity in these markets will only

occur if there is spare capacity in the organisation


Attractive But Difficult

Investment Markets Invest in these markets ahead of

return, i.e. invest for the future


Core markets are those which present the

greatest opportunity

Tactical markets are those which should be considered

for specific, tactical opportunities

Watch-list markets need to be watched for value segments

Attractiveness of Market

Ea

sie

r to

Ta

rge

t

Investment markets are those where some

investment is made for returns in future


The 4th Portfolio Review process that took place during July/ August 2009 and the outcomes will be implemented in full effective 1 April 2011

Africa & Middle East UK & Americas Asia & Australasia Europe

Core Markets

Angola

Botswana

Kenya

Nigeria

South Africa*

USA*Australia*

India

France*

Germany

Netherlands

UK*

Investment Markets

DRC

Mozambique

Brazil

Canada

China (incl. Hong Kong)

Japan

Belgium

Italy

Sweden

Tactical MarketsLesotho

SwazilandNew Zealand Ireland

Watch-list Markets

Malawi

Namibia

Zambia

Zimbabwe

Argentina Republic of Korea

Austria

Denmark

Portugal

Spain

Switzerland

Strategic Importance

Bahrain, Oman, Qatar, Saudi Arabia

Strategic Air Links/Hubs

Egypt, Ethiopia,

Ghana, Mauritius, Tanzania,

Senegal, UAE

Malaysia

Singapore

4th Portfolio2011-20142008 – 20102005 – 20072002 – 2004

Regional Director

Stakeholder Manager

Global

Channel Manager

Resp

on

sib

ility

Country Manager

*Indicates Business Tourism Hubs


Linking Government priorities to SA Tourism priorities:STRATEGIC PLAN

1. Government has set five key priorities for the next five years including the creation of decent work and sustainable livelihoods, education, health, rural development including food security and land reform and the fight against crime and corruption.

2. These five priorities has been converted into Government’s Medium-Term Strategic Framework which highlights 10 priorities and 12 outcomes over the MTEF period. Tourism falls under the Economic Sectors and Employment Cluster, one of the 5 Government clusters and its actions appear under Outcome 4: “Decent employment through inclusive economic growth”.


13

Increase the direct contribution to GDP from R52,38 billion in 2009 (estimate) to R65,72 billion in 2015 calendar year

Increase the indirect contribution to GDP from R210 billion* in 2009 (estimate) to R258 billion in 2015 calendar year

Increase in the number of jobs supported directly by the sector from 527 630 in 2005** to 640 000 in 2015 calendar year

Increase the number of indirect jobs from 557 134 * in 2009 (estimate) 746 000 in 2015 calendar year

Increase number of international arrivals from 9 591 828 in 2008 to 12 068 030 by 2015 calendar year

Increase domestic tourists from 13 483 000 in 2008 to 16 000 000 by 2015 calendar year

Employ-

ment

Income

Level

Economic Growth

Equality

The tourism sector is essential contributor to the creation of decent work and job opportunities

Sample Activities

Domestic and international tourism Marketing

Tourism investment promotion

Tourism product diversification

Tourism enterprise development

Action

Activity

Indicators

Decent Employmen

t1

Incl. & Diversified

Econ. Growth

2

* Based on the tourism satellite account for 2008of the World Tourism & Travel Council for SA ** based on the first Tourism Satellite Account by StatsSA

SAT’s alignment with NDT’s targets for Tourism development/1


14

SAT’s alignment with NDT’s targets for Tourism development/2

Assisting GDP growth by increasing total tourism direct spend from R100,1 billion in 2008* calendar year to R169 billion in 2015 calendar year (assuming 6% CPIX to reflect a real growth of 1,5% pa)

Increase per tourist spend from R8, 100 in 2008 to R11,600 in 2015

Employ-

ment

Income

Level

Economic Growth

Equality

The tourism sector is essential contributor to the creation of decent work and job opportunities

Sample Activities

Domestic and international tourism Marketing

Tourism investment promotion

Tourism product diversification

Tourism enterprise development

Action

Activity

Indicators

Decent Employmen

t1

Incl. & Diversified

Econ. Growth

2

* last available statistics are for 2008, ** based on the first Tourism Satellite Account by StatsSA


Share our vision with stakeholders

Use the trade to grow our business

Grow & nurture our staff

Improve brand traction in markets

Increase value-extraction in SA from

all tourists

Fine-tune internal systems and

communication

SA Tourism mandate, key business objectives and strategies at present (until 31/3/2010)

Sustainable GDP Growth

Sustainable job creation

Redistribution and

transformation

The 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 total average tourist spend inside SA in 2007 -

2010

SA to be the most preferred tourist brand by 2014

SA Tourism to be the Best Tourism Organization by 2010


Convince consumers that SA can be trusted to deliver

memorable experiences

Engage Stakeholders to deliver quality visitor

experience that re-affirm the brand promise

Work the distribution channel to promote SA

Energise and empower the organisation to innovate and achieve excellence

Invest only in selected markets to deliver volume

and value

SA Tourism mandate, key business objectives and strategies at present (effective 1/4/2010)

Create a thriving tourism sector by making South Africa a destination of choice

Possible Tourism sector outcome which SAT will need

to deliver against

SAT outcome

Strategies to deliver

outcome

Make the SA brand a Global Player in portfolio markets which will grow tourism’s trended revenue to the economy by 1.5%

p.a


The organization’s financial and marketing performance during

the 2009/10 financial year


Key Messages

Global arrivals declined by 4% in 2009 whilst South Africa’s arrivals grew by 3.6%. South Africa’s growth has outstripped global growth ever year since 2004. India grew by 17.5%, China grew by 12.4% & Africa grew by 5.7%

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, from R26 billion in 2008. But the domestic market does provide real potential for growth especially in the younger, upcoming segments.

The 2010/11 fiscal is strategically focused at protecting our leadership in wildlife and adventure and build welcoming people. A key asset we leverage off of is the diversity and vibrancy of South Africa’s people.

While our core markets still deliver our bread and butter , we will focus on expanding in China, India, Brazil and African air markets where there is better potential for growth.

The success of the World Cup has created immense goodwill and positive brand reputation for SA, leading to a more receptive world.

The big job after the World Cup is to convert WC awareness into arrivals to continue to upward trend in overall arrivals to South Africa. Message content will be built on rich experiences for travellers that are a combination of people, place and culture. ‘Welcome!’ will continue to be a chief component of the message content to entrench South Africa’s reputation as a friendly, welcoming destination.

Visitor arrivals for the first 7 months of 2010 grew by 13.3% over the same period in 2009 to reach 6,329,643. This was driven by a growth in all markets.


Goal Key Performance Indicator Target Performance Results Reasons for variance

Arrivals Achieve 9 824 858 arrivals (+3.6%) Total arrivals for J an-Dec 2009 is at 9,933,966 Growth driven by arrivals from Africa. Global travel has declined by 4% according to UNWTO

J oint Marketing Agreements with key trade

Sign 101 J MAs with trade partners as per country trade strategy

J MAs signed in 2009/ 10 = 122 Exceeded target

Trade contacts of key operators and travel agents that sell South African in all countries

Obtain 13,000 trade contacts on trade database

Trade Contacts 2009/ 10 = 31 367 Exceeded target

Closure Ratio Obtain an average 1 in 2.9 closure ratio Average 1 in 2.88 Target met5% more PR value from 08/ 09 (2008/ 09: 46 100 334)

Total 2009/ 10 = R60 455 440.80 Source: FD Beachhead analysis, Dow J ones/ Ornico analysis

Exceeded target

Obtain 80% neutral coverage of South Africa as a tourism destination

J an 2010: 70% neutral and positive; 20% negative 10% very negative Feb 2010: 95 % neutral and positive; 5% negative Mar 2010: 90% neutral and positive; 10% negative Source: Dow J ones Media Monitoring

Exceeded target

Increase in number of media hosted over 08/ 09

5% increase in number of media hosted over 08/ 09 (2008/ 09: 58)

219 media hosted Exceeded target

Use Indaba to showcase our diversity on offer in SA

Increase total visitors at Indaba by 3% Total registered attendees declined by 2%The impact of the global economic recession had a negative effect on international visitors to Indaba and businesses have closed down in core markets

Create a conducive business environment at Indaba

Maintain current exhibitor numbers at Indaba

Exhibitor numbers dropped by 8.5%We reconfigured space allocations to accommodate bigger space requests from existing Indaba exhibitors

Host 120 International Buyers at Meetings Africa

115 international buyers were hosted at Meetings Africa 2010

119 international buyers registered of which only 115 were confirmed

Grow no. of exhibitors by 10% over the previous year.(2008/ 09: 163)

272 exhibitors Exceeded target

Network with relevant trade and refine marketing tools to equip trade to secure more meetings and incentives to SA

Ensure at least 20 business tourism leads per annum from all countries are escalated to relevant bodies

247 active leads and 93 escalated to relevant bodies Exceeded target

Support 3 international events aimed at attracting visitors to SA

Host 5 foreign journalists for each of the 3 international events

55 foreign journalists held for the year Exceeded target

CONSOLIDATED

Increase positive / neutral coverage value over 08/ 09 fiscal

Create awareness about SA as a global meetings destination by using Meetings Africa to showcase SA to international trade

Achieve Total Arrival target



Spend per person per day in SA Spend broken down per country office: Spend broken down per country office:

France R 10 800 France R 10,204Germany R 14 000 Germany R 12,522Italy R 11 800 Italy R 11,431Netherlands R 16 400 Netherlands R 13,897United States R 17 200 United States R 13,428United Kingdom R 13 100 United Kingdom R 11,518India R 17 400 India R 14,860Australia R 13 700 Australia R 11,961J apan R 12 400 J apan R 13,788China R 17 900 China R 20,836Kenya R 11 400 Kenya R 8,755Nigeria R 16 400 Nigeria R 14,869

Number of travel agents and tour operators trained to better sell SA

Train at least 10 000 trade across all markets per annum

19 474 trade trained Exceeded target

90 products to be trained per annum 500 products trained Exceeded target2 provincial hosting conferences per annum 2 provincial hosting conferences held Target met

Website visits to southafrica.net and campaign sites

Achieve 10% more visits over 08/ 09 (1,468,474)

3 227 480 website visits for the year (+119,78%) Exceeded target

Improve Global awareness Achieve 77% global awareness by Dec 2010 Brand awareness at 79% (2009 Actual, Source:SRU) Exceeded targetImprove Global positivity scores Achieve 40% global positivity by Dec 2010 Global positivity at 38% (2009 Actual, Source:SRU) On trackImprove Global Reach on television, cinema and online global marketing

1 Billion consumers to b reached on TV and online on global platforms by Mar31, 2010

1,272 billion consumers with 6,194 brand spots, 3,743 vignettes/ programmes and 88 million online impressions

Exceeded target

Local product incentives for the development of new products (ETEYA)

ETEYA 2009/ 2010: 159 entries (5% increase) ETEYA 2009/ 2010: 206 entries (increase of 36 %) Exceeded target

Service levels incentives (Welcome Awards)

Welcome Awards 2009/ 2010: 1 094 entries (5 % increase)

Welcome Awards 2009/ 2010: 1 406 entries (increase of 41 %)

Exceeded target

Secure 1 major international sport/ lifestyle event post 2010 e.g. rugby world cup; cricket world cups

Secure event by March 2010Bidding strategy 50% completed. Requested extension from Exco until May 2010

Bidding for events dependent on completion of bidding strategy. Service provider appointed in Dec 09

Support 5 domestic events to leverage awareness of SA

Host 10 foreign journalists for all 5 events by Mar 2010

136 journalists hosted Exceeded target

Achieve Total Arrival target (CONT)

The results portrays the different impacts of the financial crisis. While 2 countries have exceeded targets, 10 have not due to financial crisis and people travelling with reduced budget which was exacerbated by the volatile Rand exchange rate.

Educate and equip the trade to sell us better and address perceptions

CONSOLIDATED (cont.)

South Africa to be a most preferred Tourism Brand by 2014



Drive an increase on online traffic to the key websites southafrica.net and / 2010

10% growth in online traffic quarterlyQ4 = 860,335; Q3 = 748 997; Q2 = 59 544; Q1 = 27 374; Total 2009/ 10 = 1 696 250

Exceeded target

PR value from published media work

5% more PR value from 08/ 09 ( 2008/ 09: 46 100 334)

Q4 2008/ 9 = R5 848 328.97m; Q4 2009/ 10 = R13 911 400.14 Total 2009/ 10 = R60 455 440.80 Source: FD Beachhead analysis, Dow J ones/ Ornico analysis

Exceeded target

Increase positive/ neutral coverage of SA as tourism destination

5% increase in positive/ neutral coverage over 08/ 09

J an 2010: 70% neutral and positive; 20% negative 10% very negative Feb 2010: 95 % neutral and positive; 5% negative Mar 2010: 90% neutral and positive; 10% negative Source: Dow J ones Media Monitoring

Exceeded target

Execute projects within approved budgets or do timely budget reallocation requests

100% of budget spent as per business plan by 31/ 03/ 2010

As at 31 March 2010 SAT has spent 93% of their annual budget**

Target met

Tourism competitiveness benchmark

Complete research study by 31/ 01/ 2010 Project in progressDelays in the commencement of the project due to approval process internally. Project only commenced in Dec 2009 and will be completed in April 2010

SAT Climate survey Report on results by 31/ 08/ 2009 Achieved Target met

Asset countsConducted bi annually i.e. 31/ 08/ 2009 and 31/ 03/ 2010

Asset count was concluded 20 March 2010 Target met

Monitoring service level agreements with third parties

100% compliance as per contract terms and conditions

Monitoring compliance- Ongoing Target met

Integration of TECSA and TGCSA into SAT’s systems

To be completed by 31/ 03/ 2010TGCSA has been integrated on SAT IT infrastructure , email , SAT branding , Telephony etc. **

Target met

Unqualified Audit Reports Audit reports received from the Auditor General by 31/ 07/ 2010

Final results to be received by 31 J uly 20102008/ 09 audit results unqualified with no emphasis of matter. 2009/ 10 results will only be available after 31 March 2010 audit

Oracle Upgrade to version 12Oracle upgrade to be completed by 31/ 03/ 2010

Deliverables for period ending 31 March 2010 implemented as per plan. System is currently in use.

Target met

Monthly business unit meetings Two per month i.e. 24 per annum 100 business unit meetings held On track

Reduced staff turnover By 5% compared to 2008/ 95 resignations in Q4. Total 2009 = 14 resignations. Turnover in 2009 was 7,8% excluding unavoidable exits, compared to 13,5% in the previous period

Target met

Participation in Delloite’s BCTWF Reach a 70% participation rate Reached 72.18% participation Exceeded targetCreation of a competency database

J ob analysis and verifications done 100% Compiled all competency profiles On hold until the succession plan is in place

Ensure the roll-out of the induction program

100% of all staff inducted on the induction program by 31/ 03/ 2010

All head-office staff inducted, covered 6 international offices (i.e. 60% ) in Q4

4 offices (J apan, Germany, Australia, USA) could not be done in Q4 due to operational reasons. e.g. unavailability of countries due to business planning and other commitments). The 4 offices will be covered in the 1st quarter of 2010/ 11


(CONT)





Optimise and improve Call Centre response and information handling capabilities

Decrease dropped call rates by 10% (2008/ 09: 6 757)

Q4 = 2,050; Q3 = 1 769; Q2 = 1 732; Q1 = 1 303 Total 2009/ 10 = 6,914 ;

833 abandoned calls outside of the target amount (6,081) due to increased call volumes and software upgrade for 2010 and the Rooms4U calls

Increase the National Tourism Product Database entries and engage in a new CRM strategy to communicate to Trade and Product Owners and grow these CRM segments

Increase CRM activity with Trade and Product Owners by 15% (2008/ 09: 52 082)

Q4 = +173 Q3 = +8,009; Q2 = +52,698 Q1 = +0; Total 2009/ 10 = 60,880

Exceeded target

Number of new properties graded and number of renewals

1635 new properties and 6007 renewals

530 new properties and 1 708 renewal properties graded in Q4, 556 new properties and 1 776 renewal properties graded in Q3 ,448 new properties and 1 326 renewal properties graded in Q2, 610 new properties and 1242 renewal properties graded in Q1. Total 2009/ 10 total properties graded = 8 196

Exceeded target

Assist Provinces/ Municipalities in executing their Tourism Growth Plans by ensuring that the properties identified by them are graded through a signed MoU

4 MOUs to be signed and executed

Q4 = Northern Cape Tourism, DACT-KZN; Q3 = Department of Economic Development and Tourism in KZN, Northern Cape Tourism; Q2 = Gauteng Tourism Authority; Q1 = 0 Total 2009/ 10 = 5

Eastern Cape Tourism (ECT) have gone ahead and implemented the project on their own and hence the MOU will not be signed.

10% response from the industry Call put on hold

Accreditation of Verification Agencies by SANAS outstanding. BEE Advisory Council reporting to the presidency has been appointed and the DTI will be presenting the reporting framework in Feb 2010 for sector charters

Host 12 workshops 8 workshops held

Due to the transitional period of incorporation into the Department and limited human resources, workshops were postponed to the 2010/ 11 financial year.

Renew 10 MOUs with AssociatesTBCSA MOU signed. Association MOUs extended. Draft Open Africa MOU in place

With incorporation into NDT some of the area of the NGO MOU fall under the SRP programme and thus the draft MOU is under revision to incorporate the SRP requirements.


(CONT)

Transformation of the Tourism Sector*

Increase in the number of private sector stakeholders that comply

with the Tourism BEE Charter and Scorecard by holding workshops

and renewing MOUs with Associates



What were SAT’s 4 high-level objectives?

Objective 1

Achieve total arrivals to SA

2008 calendar year target: 9 699 365 (6.2% increase over 2007)

2008 actual close: 9 591 828(5.5% increase over 2007)

2009 calendar year target: 9 824 858 (3.6% increase over 2008)

2009 actual close: 9 933 966 (3,6% increase over 2008 actual)

2010 calendar year target: 10 193 585 (2,6% increase over 2009 actual)

2011 calendar year target: 10 295 520 (4,2% increase over 2010)

2012 calendar year target: 10 398 475 (1% increase over 2011)

2013 calendar year projection: 11 234 911 (8% increase over 2012)


Domestic Tourism Indicators: there has been a decline in both volume and value of domestic tourism in 2009 as the market responded to the financial crisis

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%

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 Day

R550 / Trip; R120 / Day R780 / Trip; R170 / Day R730 / Trip; R170 / Day

Total Annual Bed Nights

157.8 Million 149.0 Million 128.4 Million

Average Nights per Trip

4.4 4.5 4.2


What were SAT’s 4 high-level objectives? (figures below per person includes domestic tourist spend figures; total figure agrees to Annexure F)

Objective 2

Achieve average spend per tourist inside SA

2008 calendar year target: R 7 300 per person (Total R 70,8 billion)

2008 actual: R 8 100 per person (Total R 83,4 billion)

2009 calendar year target: R 8 300 per person (Total R109,2 billion)

2009 actual: R 8 400 per person (Total R 79,4 billion)

2010 calendar year target: R8 700 per person (Total R117,2 billion)

2011 calendar year target: R9 222 per person (Total R126,1 billion)

2012 calendar year target: R9 775 per person (Total R 135,7 billion)

2013 calendar year target: R10,360 per person(Total R 146 billion)


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Foreign arrivals increased by 3.6% in the 2009 compared to 2008

Arr

ivals

Arrivals to South Africa by Region, January to October

Source: Table A October 2009

2009 Growth target (revised) 3.6% 5.8% 4.3% 0.3% 1.2% 1.0% 2.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2008 9,591,828 306,961 7,087,452 407,408 322,586 1,406,350 61,071

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

Difference (08 vs 09) 342,138 10,161 402,973 -27,501 -296 -57,848 14,649

% change (08 vs 09) 3.6% 3.3% 5.7% -6.8% -0.1% -4.1% 24.0%

Grand Total Africa - Air Africa - Land AmericasAsia &

AustralasiaEurope Unspecified


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Average spend increased by 3.7% driven by increased spend by land tourists but behind our growth targets for 2009

Avera

ge s

pend p

er

touri

st p

er

trip

TFDS (excluding capital expenditure) by region, Jan to Dec

2009 Growth target (revised) R9,900 R6,900 R14,600


Average for Welcoming People

Maintain Lead on Adventurous and Nature and Wildlife

77% aware of SA

40% positive about SA

26% sought info on SA

14% plan to visit in short-term

Closure ratio of at least 1 in 2.9 in all markets

What were SAT’s 4 high-level objectives?

Objective 3: South Africa to be a most preferred Tourism Brand by 2014:

Global Performance

Globally, each market should aim to achieve a minimum level of performance along 1. Brand Knowledge, 2. Brand Journey and 3. Conversion . Markets that exceed this level must try to maintain their higher performance

Brand Knowledge

Brand Journey Conversion


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-09 (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%

Global Target 2010 77% 40% 26% 14%

Global Target 2013 79% 42% 28% 16%

Global Targets


2. The Brand Journey – Global Target

We have improved in both awareness and positivity but declines on sought info and likely to visit on the next 18 months due to the slowdown in global travel


Progress on our 2007-2010 4 high-level objectives?



Improve Global awareness

Achieve 77% global awareness by Dec. 2010

Brand awareness at 79% (2009 Actual, Source:

SRU) Improve Global positivity

scores

Achieve 40% global positivity by Dec 2010

Global positivity at 38% (2009 Actual, Source:

SRU) Improve global reach on

TV, cinema and online global marketing

1 Billion consumers to be reached on TV, online, cinema and global platforms.

We reached 1,208 Billion consumers with 3,381

brand spots,753 billboards, 285

vignettes/programmes and 36.8 Million online

impressions.


1. Knowledge of the Brand – Global Target

Memorable(Average)

Nature & Wildlife(Leadership)

Welcoming People(Average )

Adventurous(Leadership)

Value for Money

Table Stakes (Require Improvement)

Variety

Breathtaking

Enriching

Safety & Security

Imm

ed

iate

Focu

s2

00

8 t

o 2

01

0

Lon

g T

erm

Bu

ild

Reinforces Memorable

In 2009, the global average for most of the Brand Knowledge metrics improved, however, it continued to drop for Welcoming People and Safety and Security

5.69 (2009)

5.65 (2008)5.68

(2007)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-09(merged for each year)

4.70 (2009)

4.73 (2008)4.75

(2007)

5.74 (2009)

5.69 (2008)5.70

(2007)5.66

(2009)5.62

(2008)5.67

(2007)5.55 (2009)

5.51 (2008)5.51

(2007)5.51 (2009)

5.49 (2008)5.51

(2007)4.52 (2009)

4.56 (2008)4.58

(2007)

3.41 (2009)

3.54 (2008)3.53

(2007)


Metric Netherlands Germany UK France USA India Australia Italy China Japan

Memorable 1 2 4 3 4 4 2 2 2 2

Adventurous 2 2 3 3 3 2 2 3 2 2

Natural Wildlife Experience 1 3 2 2 2 2 2 3 3 3

Welcoming People You Can Interact With 4 5 5 5 4 3 5 3 4 5

A Wide Variety of Experiences 1 2 2 2 2 2 1 2 3 4

Breathtaking 1 2 4 3 3 3 2 3 2 2

Enriching 1 2 4 4 4 4 4 2 4 2

Unique 1 2 5 3 2 4 3 2 2 2

An Authentic Travel Experience 2 3 4 3 2 4 5 2 3 2

Value for Money 3 4 4 4 4 4 4 4 4 5

Safety & Security 5 5 5 4 3 4 5 2 5 5

Ranking (out of 5) of The SA Brand Relative to Direct Competitors Along Key Brand Attributes – 2009

Note: Competitor set includes Australia, Thailand, Kenya, Brazil to produce ranking out of 5. If any of the above are not included in survey, India or China is used as destinations. For India market, Egypt is used as an additional destination for ranking purposesSource: SAT BrandTracker Feb-09 and Nov-09

Knowledge of the Brand – SA Rank Versus Direct Competitors (2009)

In 2009, South Africa’s perception improved on key Personality Attributes in the Netherlands and Germany, compared to its direct competitors, however, it declined substantially in Italy

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)


Brand Journey Metrics – SA Rank Versus All Destinations (2009)

Ranking (out of 10) of The SA Brand Relative to Competitors Brand Journey Attributes – 2009

South Africa’s rating on Stature has improved marginally in 2009; the ratings on other metrics continue to be below average in most of the markets, except for the Netherlands and Germany

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 FranceSource: SAT BrandTracker Feb-09 and Nov-09

Metric Netherlands Germany UK France USA India Australia Italy China Japan

Total Awareness 5 5 6 7 7 7 8 8 8 9

Unaided Awareness 3 5 4 8 7 7 6 5 7 9

Positivity 3 5 6 7 7 6 8 6 7 9

Likely to Visit in Future 2 4 5 6 7 7 8 6 7 9

Likely to Seek Info 1 4 5 7 7 6 8 6 7 9

Uniqueness 1 2 4 4 3 6 2 3 5 8

Stature 4 4 5 5 5 6 6 5 7 9

Sought Info 2 4 5 6 7 6 7 6 7 9

Familiarity 4 5 5 10 8 7 7 8 8 9

Suitability 4 2 5 5 5 6 6 5 6 9

Likely to Visit in Next 18 Months 2 4 5 9 7 7 6 7 7 9

Closure Ratio 6 7 7 8 10 8 6 8 6 9

Blu

e-S

ky

Con

sid

ere

rsIn

form

ati

on

S

eekers

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)


South Africa has seen a positive CAGR for most of the Brand Journey metrics between 2006-2009; however, Visitation and Closure Ratio have declined slightly in 2009, compared to 2008

Brand Journey Trends – Core Markets

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Closure Ratio = Visited in Past 18 Months / Sought Info in the Past; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Nov-06 through Nov-09 (merged for each year)

2006 2007 2008 2009 CAGR (2006-09)

Total Awareness 74% 77% 78% 81% 3%

Unaided Awareness 18% 19% 20% 19% 2%

Positivity 37% 39% 38% 39% 2%

Likely to Visit in Future 31% 35% 32% 33% 2%

Likely to Seek Info 17% 19% 18% 18% 1%

Uniqueness 28% 28% 27% 28% 0%

Stature 19% 20% 18% 18% -1%

Sought Info 21% 23% 22% 21% 0%

Familiarity 20% 22% 22% 22% 3%

Suitability 19% 19% 19% 18% 0%

Likely to Visit in Next 18 Months 10% 12% 11% 11% 2%

Visited in Past 18 Months 6% 8% 8% 7% 6%

Closure Ratio 1 in 3.35 1 in 2.90 1 in 2.75 1 in 2.85 6%


2006 2007 2008 2009 CAGR (2006-09)

Total Awareness 54% 57% 55% 58% 3%

Unaided Awareness 11% 13% 11% 14% 7%

Positivity 27% 29% 29% 32% 5%

Likely to Visit in Future 27% 27% 27% 28% 2%

Likely to Seek Info 18% 20% 20% 21% 5%

Uniqueness 24% 26% 26% 26% 3%

Stature 17% 18% 18% 19% 3%

Sought Info 22% 23% 22% 23% 1%

Familiarity 7% 8% 9% 9% 13%

Suitability 17% 19% 18% 20% 5%

Likely to Visit in Next 18 Months 10% 10% 11% 11% 3%

Visited in Past 18 Months 7% 8% 8% 7% -1%

Closure Ratio 1 in 2.98 1 in 2.96 1 in 2.78 1 in 3.12 -2%

Brand Journey Trends – Investment Markets

Note: Investment Markets weighted according to relative arrivals – China = 32%, Italy = 43% and Japan = 25%; Closure Ratio = Visited in Past 18 Months / Sought Info in the Past; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Nov-06 through Nov-09 (merged for each year)

In Investment Markets, South Africa’s performance has improved on most of the Brand Journey metrics in 2009, compared to 2008; however, a slight drop in Visitation has led to a drop in Closure Ratio


Objective 4 : SA Tourism to be the Best Tourism Organization by 2010(will be replaced, effective 1/4/2011, by SA Tourism to be a Top 20 Best-Company-to-Work-for by 2012*)

As decided by the Annual Tourism Awards Committee of the World Tourism Organization, and as attested to by the most credible award committees in our chosen core markets

*As measured in the annual Deloitte Best-Company-to-Work-for survey that will take place during June/July 2012


37

International Olympic Committee will host the International Olympic Committee’s 123rd Congress in in 2011Society of Incentive & Travel Executives (SITE)

The Society of Incentive Travel Executives (SITE) has selected to host its International Conference in December 2010. The event will bring the leaders of the design and delivery of motivational experiences and travel rewards, a multi-billion dollar global industry, to the City

Two South African companies also walked away with a SITE Crystal award in 2009:- Terra Nova won a SITE Crystal Award for “Most Outstanding Motivational programme 2009”- Dragonfly Africa won a SITE Crystal Award for the “Most Outstanding Sustainable Motivational Experience

2009”Great Wine Capitals Global Network Rust en Vrede Restaurant in Stellenbosch was announced Global Winner in the 2010 Best of Wine Tourism award in

the Wine Tourism Restaurants category.S. Pellegrino 100 World’s Best Restaurant Awards

S. Pellegrino 100 World’s Best Restaurant put two South African restaurants in the 2010 top 50 world’s best restaurants

La Colombe in Constantia (12th place up from 38 last year); Le Quartier Francais in Franschoek (31st place, up from 37th place in 2009)South African restaurants in the top 100 in 2009: Le Quartier Francais in Franschoek La Colombe in Constantia Jardine’s Aubergine Rust en Vrede in Stellenbosch

Chinese Tourists Welcoming Award 2009 The won the bronze award in the internet/new media category of the 2009 Chinese Tourists Welcoming Award which were announced in April during China Outbound Tourist and Trade Market in .

Luxury Tourism Awards 2009 has been awarded in the Best Entertainment Category of the Luxury Tourism Awards 2009 held at the International Luxury Travel Exhibition held in

Travel & Leisure World’s Best Awards readers’ survey

Cape Town has been voted second in the world’s top City in the 2009 Travel and Leisure online pollThe following SA hotels have been voted the world's top 100 hotels for 2009 in an online poll by Travel & Leisure

magazine: Bushmans Kloof, Western Cape, Cedarberg Mountains (1st place) Sabi Sabi Private Game Reserve (Earth Lodge), Sabi Sand Wildtuin, Kruger National Park (3rd place) Singita Sabi Sand, Sabi Sand Wildtuin, Kruger National Park (6th place) Twelve Apostles Hotel & Spa in Western Cape, Cape Town (15th place) , Sabi Sand Wildtuin, Kruger National Park (24th place) , Kruger National Park (25th place) , Eastern Cape (27th place) Hotel, Gauteng, Johannesburg (29th place) (29th place) , Sabi Sand Wildtuin, Kruger National Park (34th place) , Western Cape, Franschhoek Valley (60th place) , Sabi Sand Wildtuin, Kruger National Park (77th place)

16th World Travel Awards. Saxon Boutique Hotel & Spa – World’s Leading Boutique Hotel Thanda Private Game Reserve - World's Leading Luxury Lodge The Blue Train - World's Leading Luxury Train Shamwari Game Reserve – World’s Leading Conservation Company

Accolades for 2009/10


38

2009 TripAdvisor Travellers’ Choice awards

(5th place)– Top World 100 Best bargains An African Villa, , , (24th place)– Top World 100 Best bargains 54 , , (54th place)– Top World 100 Best bargains (4th place)– Top World 10 Hidden Gems (2nd place)– Best World Service (8th place)– Top 100 Best Luxury Shamwari Game Reserve, (82nd place)– Top 100 Best Luxury

Condé Nast Traveler World Savers Awards

has been named Global Winner of Wildlife Conservations Programs (2009) in the third annual Condé Nast Traveler World Savers Awards

International Wine and Spirits Competition

South African brandy, KWV Founders Reserve Brandy, won gold at the International Wine and Spirits Competition hosted July 2009 in

US Incentive Industry Award South African Tourism’s operation has been named a 2009 winner of Incentive magazine’s prestigious Platinum Partner Award. More than 65,000 of ’s most qualified travel industry decision-makers selected the people, products and services that helped them most in motivating their employees and customers over the past year.

Sustainability is named as one of the 2020 Global Sustainability Centers by The New York Ethisphere Institute

Conference and Incentive Travel Magazine’s Hot List 2009

was voted Best Incentive Destination in the inaugural Conference and Incentive Travel magazine’s 2009 Hot List.

2009 Condé Nast Readers’ Travel Awards

is voted eighth (8) in the top 20 overseas cities category. ranked eight (8) has reader’s favourite country as a result of it diverse range of

attractions and activities. Pride of Africa, Rovos Rail was voted third (3) as the reader’s favourite train experience

due to its child friendly facilities. Blue Train ranked tenth (10) in the favourite train experience (10).

ABTA Travel Trends Report ABTA has named South Africa as a top destination for 2010.The annual report cites ‘x-factor destinations’ - those with something new and unique to offer.

Accolades for 2009/2010 (Continuation)


The organization’s financial and marketing performance during the 2009/10 financial year


On the financial side…

South African Tourism achieved its 9th consecutive

unqualified (no emphasis of matter) audit report from the

Auditor General and holds the record in Government

(including all Departments, Public entities and Local

Authorities) with the most consecutive unqualified no-

-emphasis audit reports!

But we realize it’s even

tougher to stay Nr. 1!


Overview of SAT’s financial position and financial performance for the 2009/10 financial year

• SA Tourism’s total expenditure increased by 17% from R 724,27 million in 2008/9 to R 849,15 in 2009/10, leaving a net surplus of R 13,35 million (2008/9: R 6.94 million). The surplus related entirely to the acquisition of capital items as well as the capatilisation of intangible assets (including ongoing website improvement).

• A total increase of 19% over the previous year of SA Tourism’s funding, representing 80.7% (2008/9: 79%) of R 699.49 million (2008/9: R 586.09 million) of total revenue, came from Government.

• Other revenue of R 167.26 million (2008/9: R 154.86 million), an increase of 8% over 2008/9, was earned from voluntary Tourism levies, interest received, exhibitions, grading activities, sale of marketing items, sale of advertisement space in publications and raising sponsorships.


• Total non current assets comprising of PPE, staff loans and intangible assets decreased by 14% (2009/10 R 74.31 million , 2008/9: R 86.9 million).

• Approximately 40% (R 3.71 million ) of total costs on PPE for the year (R9.20) was spent on acquisition of furniture and fittings.

• Approximately 99% (R 1.73 million ) of total costs on intangible assets for the year (R 1.74 million) was spent on website costs.

• Cash and cash equivalents increased by 38% (2009/10 R 224.66 million , 2008/9: R 162.61 million).

• Total current assets increased by 151% (2009/10 R 300.39 million, 2008/9: R 199.41 million) largely due to prepayments classified under trade and other receivables while overall total assets increased by 31% (2009/10 R 374.69 million ,2008/9: R 286.32 million)

Overview of SAT’s financial position and financial performance for the 2009/10 financial year (cont.)


• Trade and other payables (2009/10 R 209.77 million, 2008/9: R 180.55 million) representing approximately 76% (2008/9: 89%) of total current liabilities (2008/09 R 275.92 million, 2008/9: R 203.09 million) increased by 16% over the previous financial year.

• Total non current liabilities comprising of provisions and finance lease liabilities decreased by 8% (2009/10 R 13.09 million, 2008/9: R 14.19 million) whilst total liabilities increased by 33% (2009/10 R 289.02 million, 2008/9: 217.28 million) over 2008/9 financial year.

• Accumulated surplus increased by 25% (2009/10 R 68.17 million, 2008/9: R 54.57 million) over the previous year. It largely represents tangible and non-tangible assets on SA Tourism’s Statement of Financial position.

Overview of SAT’s financial position and financial performance for the 2009/10 financial year (cont.)


Executive Summary – 2009/10 scorecard

2008 2009 Growt

h

Arrivals 9,591,82

8

9,933,96

6

+3.6%

Awarenes

s

76% 79% 3 pp

Positivity 37% 38% 1 pp

Overall, we reached 1,262 Billion consumers with 5900 brand spots, 3800 vignettes, 2992 billboards and 84 Million online impressions in the 2009/10 fiscal.

Tourist arrivals for the first 4 months of 2010 grew by 16.3% over the same period in 2009 to reach 1,886,523. This was driven by a growth in all markets


45

Areas of co-operation with stakeholdersStakeholder Details of co-operation

• TBCSA & TOMSA 1.1 SAT is co-funded from voluntary tourism levies collected and SAT therefore offers some specific benefits for establishments that collects TOMSA levies

1.2 SAT and TBCSA, which represents all tourism business associations, jointly addresses the industry once a year in all provinces and have bilateral meeting quarterly

2. Provincial Tourism Authorities CEO’s Forum (now called the Marketing Working Group) meeting quarterly where SAT CEO meets Provincial CEO’s to share Business Plans & Budgets and discuss specific marketing issues including joint marketing projects. SANParks, SANBI and TEP also attend. The CMO convenes the quarterly marketing forum with provincial marketing managers.

3. Fedhasa, ASATA and SATSA Sharing of information

4. DEAT public entities & programmes:

4.1 SANPARKS

4.2 SA Weather service

4.3 SANBI

4.4 TEP

Lobby SANPARKS to also start collecting TOMSA levies. Provide exhibition space at exhibitions at beneficial rates

Share information

Share information

Joint funding of ETEYA project

5. IMC, GCIS and the Department of Trade & Investment

Sharing of information and joint marketing activities

6. SAPS Quarterly meetings with Provincial SAPS leadership

7. Match & LOC Ongoing liaison on Confederations Cup and 2010 Soccer World Cup8. Miptech and Minmec Sharing of information on obtaining inputs on high-level marketing issues. SAT’s

CEO attends both meetings.9. Departments of International Relations & Cooperation and South African embassies overseas

Provide marketing collateral


The Grading Council Performance 2009/10

financial year


TGCSA (historical performance of the TGCSA until 31/3/2010

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 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 8196 8288

Annual Increase 124% 165% 188% 125% 114% 129% 110% 108%

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

Current = 8000+


Establishments SummaryAs at end July 2010

Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total

Backpacker & Hostelling 13 1 12 12 3 4 4 2 28 79

Bed & Breakfast 322 76 328 325 20 44 36 52 377 1580

Caravan & Camping 10 3 7 23 16 26 7 17 9 118

Country House 15 8 19 32 7 21 3 0 75 180

Guest House 314 141 643 212 86 169 138 127 855 2685

Lodge 72 26 67 82 84 76 53 19 40 519

Self Catering 196 53 225 379 120 135 50 47 1103 2308

Non-Hotel Accommodation Total 942 308 1301 1065 336 475 291 264 2487 7469

Hotel Total 70 27 165 73 33 32 16 23 191 630

Accommodation Grand Total 1012 335 1466 1138 369 507 307 287 2678 8099

MESE Total (Business Tourism) 5 3 112 17 18 21 28 2 18 224

Grand Total Graded Properties 1017 338 1578 1155 387 528 335 289 2696 8323


Rooms SummaryAs at end July 2010

Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total

Backpacker & Hostelling 486 19 1530 981 73 198 154 483 1136 5060

Bed & Breakfast 1818 374 1662 1842 143 286 236 329 1651 8341

Caravan & Camping 413 154 383 1731 1125 1503 824 786 561 7480

Country House 107 79 271 381 108 273 37 0 771 2027

Guest House 2637 1111 5290 1787 962 1609 1499 1108 5796 21799

Lodge 668 474 1369 1156 1079 1443 838 217 424 7668

Self Catering 1377 356 1427 2184 2130 2001 998 430 4420 15323

Non-Hotel Accommodation Total 7506 2567 11932 10062 5620 7313 4586 3353 14759 67698

Hotel Total 3654 1518 15337 4710 1787 1683 1744 944 12141 43518

Accommodation Grand Total 11160 4085 27269 14772 7407 8996 6330 4297 26900 111216

MESE Total (Business Tourism) 20 6 625 58 72 71 76 4 72 1004

Grand Total Graded Properties 11180 4091 27894 14830 7479 9067 6406 4301 26972 112220


Introduce Grading Criteria

which are globally

recognised and credible to visitors &

stakeholders

Simplify Billing process and implement a

more equitable fee structure

Improve the integrity of the

grading process using

IT Infrastructure

Improve the competence and integrity of Assessors

Stop illegal use of stars and protect the

TGCSA brand

The road ahead for TGCSA from 2011 - 2014

TGCSA Outcome/Vision


outcome

Establish a recognisable and credible, globally bench-marked system of

quality assurance for accommodation and MESE experiences which can be relied upon by visitors when making

their choice of establishment

Get industry to see value in participating in the grading system -


The road ahead for TGCSA from 2011 - 2014

TGCSA Outcome/Vision


outcome

Establish a recognisable and credible, globally bench-marked system of

quality assurance for accommodation and MESE experiences which can be relied upon by visitors when making

their choice of establishment

All progressing well, system going live on 14 October 2010 and commencement date.

Update:

Improve the integrity of the

grading process using

IT Infrastructure


DELL – Tablets – New QiT System



Outline Level Third

Outline Level


Sixth Outline Level






New Grading Fee Structure

• 6 room Guesthouse• 5-Star• Franschhoek• R3 000.00 pp-pn• Last year = R2 082.00• New Fee = R 3 030.00• Grading Plaque

• 6-room Guesthouse• 2-Star• Soweto• R500.00 pp-pn• Last year = R 2 082.00• New Fee = R 2 350.00• Grading Plaque


Performance in April to September 2010


Objectives Target - 2010 Measurement to date1

Challenges Plans for next quarter

Foreign visitor arrivals to SA2

Total - 10,193,585 Air – 2,365,096 Land – 7,834,324

Total – 6,329,643 Air – 1,682,209 Land –4,647,434

Foreign visitor arrivals increased by 13.3% in the first 7 months of 2010. There has been good growth across all regions in the first 7 months of 2010 with the Americas recording the highest growth of 41.2% in this period. Both Europe and Asia & Australasia also recorded growth of 8.9% and 29% respectively. This strong growth has been as a result of the 2010 FIFA World Cup which saw a 12.8% in the first six months of 2010 and 39.3% in J une 2010 compared to J une 2009. Africa also recorded good growth with stronger performance from the air markets (15.4%) and 9.6% growth from the land markets.

Spend in SA Total – R8,700 Air – R14,200 Land – R7,100

Total – R9,400 Air – R12,500 Land – R8,400

Average spend per trip increased by 2% overall driven by an increase in spend per trip by arrivals from Africa land markets (up 15%). Tourists from land markets tend to spend the most on shopping for business use and this to drives up their spend per trip. Tourists from the air markets spent -20% less per trip in the first 6 months of 2010 compared to 2009. This decrease in spend could in part be explained by the depreciation of major currencies of the US dollar (-21%), Euro (-22%) and Pound (-19%) against the Rand between the first 6 months of 2009 and 2010. Tourists from air markets are still suffering the effects of the global financial crisis which has left high levels of unemployment in certain markets.

1 Arrivals data is for the period J an to J uly 2010; all other data is for the period J an to J une 2010 2 Data is showing visitor arrivals as the targets have been set on all visitor arrivals to SA. There is insufficient data on tourist arrivals to SA to set targets for tourist arrivals – we need a minimum of 5 years of tourist arrivals data to set targets.


Objectives Target - 2010 Measurement to date1

Challenges Plans for next quarter

Seasonality Air – 2.05% Land –1.77%

Measured annually

Length of stay Air – 10% modal shift Land - +1 night

Total: 7.8 nights Air –16.2 nights Land – 5.2 nights

Leisure tourists remain the most attractive and largely come from air markets as the tourists from land markets visit frequently and stay between 1 and 2 nights which impact the overall length of stay. The global trend is towards shorter holidays and this has intensified as consumers try to manage their tight budgets following the global financial crisis. The importance of direct flights is highlighted by the fact the tourists lose time in transit and are therefore left with fewer nights to spend in SA. The land markets primarily visit for shopping and therefore it is difficult to increase length of stay.

Transformation As per tourism scorecard

We are on target in terms of both employment equity and procurement

We will be employing Empowerdex to do a rating of SAT

1 Arrivals data is for the period J an to J uly 2010; all other data is for the period J an to J une 2010


Visitor arrivals for the first 7 months of 2010 grew by 13.3% over the same period in 2009 to reach 6,329,643

AFRICA

4,808,453 arrivals 9.7% up from 2009

Central & South America

91,447 arrivals 152.8% up from 2009

North America


Europe


Asia


Australasia


Middle East


Indian Ocean Islands


Source: Table A Visitors Arrivals July 2010


SA continues to outperform global growth, which grew by 6.9% in the first 6 months of 2010

Note: UNWTO estimates incorporate provisional data for some regions

Source: Statssa Tourism & Migration release June 2010, SAT analysis; UNWTO World Tourism Barometer, September 2010

12.8%7.4%

14.1%

2.0%

20.4%

7.3% 6.9%

0%5%

10%15%20%25%30%35%40%

South Africa Africa Asia and the Pacific Europe Middle East Americas World

Growth in visitor arrivals for Jan to Jun: 2009 vs 2010

% C

hange


%

TFDS (excl. Capex) by Region, 2009 and 2010

Source: SAT Departure Survey 2009 - 2010

Africa Land Africa Air Americas Asia&Australasia Europe Total

Q1 & Q2 2009 R 25.5 R 2.0 R 2.3 R 2.4 R 8.9 R 41.1

Q1 & Q2 2010 R 32.5 R 1.8 R 3.2 R 2.6 R 7.0 R 47.2

% Change 28% -6% 38% 6% -21% 15%

0

5

10

15

20

25

30

35

40

45

50

Total revenue generated by tourism increased by 15% driven off a 28% increase from the Africa land markets


%

Average TFDS (excl. Capex) by Region, 2009 and 2010



Q1 & Q2 2009 R 7,300 R 15,900 R 14,600 R 16,900 R 15,800 R 9,200

Q1 & Q2 2010 R 8,400 R 12,700 R 13,600 R 14,400 R 11,400 R 9,400

% Change 15% -20% -7% -15% -28% 2%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

The increases in revenue are due to increases in average spend per trip of tourists from the Africa land markets



Outline Level Third

Outline Level


Sixth Outline Level







Outline Level Third

Outline Level


Sixth Outline Level






There was growth in all regions as a result of the 2010 FIFA World Cup that was hosted in June and July

Arr

ivals

Visitor arrivals to South Africa by Region, January to July

Source: Table A Visitor Arrivals July 2010


%

Most Common Length of Stay by Region, 2009 and 2010


1

6 6

5

13

1

2

6

9

5

13

2

0

2

4

6

8

10

12

14


Q1 & Q2 2009 Q1 & Q2 2010

Length of stay increased by 1 night in the period compared to 2009


%

Most Common Length of Stay by Region, 2009 and 2010


2

7

6

5

13

22

3

7

5

13

2

0

2

4

6

8

10

12

14


Q1 2009 Q1 2010 % Change

Length of stay remained flat in the period compared to 2009 ( till April 2010)


We are still in process of studying the impact of the 2010 FIFA World cup

• Impact of 2010 FIFATM World Cup on ‘Brand South Africa’ - analyze Brand Tracker (Regular + Lite) survey data to track the changes in perception about South Africa as a leisure destination across the globe. SAT commissioned a shorter version of the existing Brand Tracker study to understand the movement in key brand indicators post the World Cup

• Impact of 2010 FIFATM World Cup on International Tourism –analyse Departure survey data to evaluate in detail the impact of World Cup on International tourism. SAT extended the scope of the Departure Survey in the months of June and July to ensure that a larger sample of “World Cup” respondents are sampled

• Impact of 2010 FIFATM World Cup on Domestic Tourism – evaluate the impact of World Cup on South Africa’s Domestic tourism, by analysing data from Domestic survey


Positive global reputation – our people did it


World Cup Legacy - What's in Store for Country?

by JP van der Merwe

All Africa

Aug 31, 2010 (Trade Invest Africa/All Africa Global Media viaCOMTEX) -- With the end of the FIFA 2010 World Cup just over a month ago, South Africa can be proud of pulling off an amazing event, which in many ways showed off the best that the country has to offer. The question, which everyone is now concerned about is what happens now? Will the South African economy be able to capitalise on the momentum or will we be stuck with a World Cup hangover that never seems to go away?

We know the question is: “What now?”


But it won’t last forever

Britons priced out of South Africa

Visitor numbers have slumped in South Africa since the World Cup, says Oliver Smith. By Oliver Smith Published: 8:00AM BST 04 Sep 2010

http://www.telegraph.co.uk/travel/travelnews/7979689/Britons-priced-out-of-South-Africa.html

Sounds of labour strife replace vuvuzela in South Africa

The Economist

31 August 2010

THE warm, fuzzy feeling of national pride and unity engendered by South Africa's hosting of the football (or soccer) World Cup did not last long.


Challenges

• No doubt impact of world cup on global perceptions has resulted in a more receptive world

• Back home national pride

• We are feeling pressure to sustain momentum• Global recession still affecting global travel but UNWTO has

indicated upward trend of +7% in global travel though based on decline last year.

Our mission is to meet arrival and revenue targets at a time when our key markets are in decline

Choices have to be made on how to manage the falloff

Next few slides show the extent of the problem that we face if we continue to lose revenue out of the UK and Europe


Post 2010 WC Campaign - 20 Experiences,10 days

To inspire people to visit South Africa & get a glimpse of what we have to offer, we have developed this campaign. This campaign allows us to showcase South Africa as a breakthrough destination & reinforces reasons to believe in a real & authentic way.

In May/June 2010 4 couples from the UK, USA, India & Nigeria got to experience an incredible adventure in South Africa. Filmed in South Africa – the group started together but went on four different journeys around the country, enjoying 20 amazing experiences in 10 days. While they were here, their experiences, adventures, responses & emotions were all captured on camera. They journeys were developed into 4 brand TVC’s that will flight on global platforms (CNN EMEA, CNN USA, BBC, Fox & cinema).

The campaign will also be driven online through various social media with 360 integrated portal on the SAT’s homepage.

Slide no. 70 © South African Tourism 2010Egyptian Tourist Authority spent 64% of total adspend on TV.SA Tourism spent 38% of total adspend on the Internet.

64% TV

41%Mag

39% TV

39% TV

38% Int

82% TV

51% OOH

36%Mag 66%

Nws52%Nws

52%Int

•Source: Nielsen adex Jan-June 2010

SA Tourism & its Key Competitors / Adspend Split by Medium


Global Ad spend Summary

Tourism Boards had a higher SOV than Airlines by 18% . SA Tourism ranked 22nd in the overall category set of Tourism

Boards. India, Morocco & Egypt Tourist boards are amongst the top 10

advertisers. Television is the key medium used by Tourism boards, whereas,

Newspapers are the key medium used by Airlines.

SAT & ITS KEY COMPETITORS SA Tourism ranked 5th amongst its key competitors with

Egyptian Tourist Authorityranking 1st.

Television was key medium used followed by magazines. Egyptian Tourism Authority had the 46% SOV on Television and highest SOV in Outdoor by 47%.

SA Tourism had the highest SOV on the Internet by 44%, Radio by 46% and Cinemaby 41%.

India Tourist Board had the highest SOV in Magazines by 34% & Newspapers by 29%.


April 2010 to September 2010

Timing Estimated Admissions

Target Market Format

Canada ( Toronto)

Estimated no of

screens

2 x 60 vign

3rd Sept to 30th Sept

2 x 60 vign

13th Sept to 30th Sept

Netherlands ( National)

France (Paris) 2 x 60 vign

1 Sept – 30th Sept

Germany (Hamburg, Munich, Dusseldorf, Cologne, Frankfurt, Berlin & Stuttgart)

2 x 60 vign

W/c 30 Sept

144

303

768

353

1,000,000

569,000

2,626,400

265,600

Total reach: 7,431,386

Global Cinema / Activity Overview

• Netherlands, France & Germany to continue running into the 3rd quarter.

• UK, USA , Australia and India to commence in 3rd & 4th quarters.• Final Total Reach: 22,899,852

USA (NY, Boston, LA, San Francisco & Chicago)

2 x 60 vign


406 1,391,361

UK (National) 2 x 60 vign


585 1,579,025


Global Brand / southafrica.net

southafrica.net

EngagementTotal

Numbers

Visits 1,134,875

Page views 4,342,372

Pages/visits 3.83

Average time spent on site 149.57

% New visits 83.81%

% Bounce rate 17.44%


Global Brand / southafrica.net

April May June July August Total/Average

Visits 177,246 230,871 307,383 234,048 185,327 1,134,875

Pageviews 751,406 990,418 1,188,896 777,964 633,688 4,342,372

Pages/Visit 4.24 4.29 3.87 3.32 3.42 3.83

Bounce Rate 16.67% 17.34% 17.18% 17.88% 18.12% 17.44%

Avg. Time on Site 191.43 179.42 150.03 112.85 114.13 149.57

% New Visits 79.79% 81.78% 85.73% 85.97% 85.78% 83.81%

Slide no. 75 © South African Tourism 2010Agency Generated / All

April

May

June

July

August

September

Totals

40

260

2,490,932

36,890,283

3,028,062.60

6,497,862.71

9,084,187.79

19,493,588.13

75

46

285

10,337,676

2,675,355

39,554,907

1,063,842.44

3,031,774.22

6,782,826.78

3,191,527.30

9,095,322.65

20,348,480.34

Month

Total articles

Circulation

Ad Value in ZAR

PR Value in ZAR

14 736,887 92,770.09 278,310.27

68 6,196,592 424,715.86 1,274,147.58

67 18,050,208

1,949,980.92 5,849,942.77

71 9,415,664

1,002,333.24 3,006,999.70

17 1,127,088

119,650.09 358,950.27

70 6,196,592 467,198.86 1,401,596.58

77 19,218,196

2,100,361.17

6,301,083.52

N/A N/A N/A N/A

N/A N/A N/A N/A

Total Value of Editorial Coverage Over the Period Global & Corporate


655 219,471,423

15,084,510.57

815 234,845,511

17,247,342.76

45,244,530.70

51,733,027.27

Period

Total articles

Circulation

Ad Value in ZAR

PR Value in ZAR

Apr 09 – Sep 09

Apr 10 – Sep 10

334 54,490,968

7,848,774.38

353 58,273,231

8,261,505.53

23,546,323.14

24,784,516.59

Agency Generated / All

ROI

The PR Value is calculated by multiplying the Ad Value by a factor of 3 – this is because

editorial is universally regarded as more credible, and therefore more valuable, than

advertising.

ROI is calculated by dividing the total PR Value for the period by the total retainer for the

periodROI = 1 : 9Includes EVERYTHING done by FD– Global, Corporate, Business Tourism, Product & Itinerary, Domestic, SADC etc.

Please note that 2010 coverage is only for 5 months as the September figures were not available at the time of the report

S.A. / Comparison of Editorial Coverage and ROI


Total value of Editorial Coverage in Rands over the Period Worldwide

Agency Generated

Australia

France

India

Japan

Netherlands

South Africa *

USA

69,193,397.82

44,104,331.81

1 : 195

1 : 58

98,889,731.61

93,889,965.00

1 : 389

1 : 153

6,102,742.43

9,051,754.02

1,459,061,115.44

1 : 30

1 : 39

1 : 213

6,044,847.05

10,988,375.55

10,148,416,107.92

1 : 38

1 : 434

1 : 1,621

Country

2009

ROI

2010

ROI44,213,631.

241 : 107 61,042,597

.661 : 171

291,304,084.74

1 : 629184,719,571.8

8

1 : 554

77,840,818.76

1 : 23822,533,790.3

8

1 : 83

270,162,202.50

1 : 371481,692,281.4

0

1 : 782

150,853,457.19

1 : 450 521,414,587.52 1 : 2,059

226,311,779.43

1 : 3458,036,782,616

.55

1 : 14,412

52,048,565.07

1 : 147474,187,460

.55

1 : 1,838

45,244,530.70

1 : 13 25,512,737.00 1 : 9 (approx)

172,629,819.73

1 : 148 132,683,959.63

1 : 146

•South Africa includes 2010 tactical, Fly the Flag, Sho’t Left Global, Corporate, Business Tourism , Product & Itinerary, Domestic and SADC

China

Germany

Italy

Kenya

Nigeria

UK

Total

Please note that 2010 coverage is only for 5 months as the September figures were not available at the time of the report


South African Tourism spent R 315,8 million or 81% of its budget of R 389,9 million budget during the first 5 months of the 2010/11 financial year.

The reasons for this underspent situation are: some projects have been slightly delayed for a number of

reasons; the continued strength of the Rand has resulted in forex profits of

which some has been reallocated to new and existing marketing projects; however, some profits have not been reallocated yet

South African Tourism’s finances as at 31 August 2010


Winning in 2011/12


Marketing Focus - 2011/12

1. Winning in 2011/12 is about pushing harder and leveraging our phenomenal Brand awareness/positivity from the 2010 World Cup. It took the UK 25 years to host the Cricket, Rugby and Football World Cups. South Africa achieved this in 15 years.

1. 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. The critical factor is to develop a stronger ‘emotional connection’ with our people/destination and our consumer heartland. Building our emotional positioning will assist us in our strategy to engage and convert more visitors as opposed to just building awareness in the Global space.


Marketing Focus - 2011/12

3.The advertising medium will move more towards personalised customised communication mainly through online media/campaigns for conversion. However, we are still building Global awareness but traditional advertising will be used strategically to complement our 360 brand communication strategy.


How to Win in 2011/12

1. Launch new Global BIG Idea with new images to support 2011/12 campaign that improves conversion and relevancy.

a. Build positive awareness by developing fewer and bigger executions that can be leveraged online and on global platforms. (Discover why South Africa hosted the most experiential and adventurous World Cup)

b. Develop stronger emotional connections with SA people/key experiences – Key is to focus on experiences that are highly memorable.

1. Global Media

a. Assess media landscape and develop Global media strategy that talks to the hearts and minds of our core target audience

b. Global media buy to cover massive opportunities in Africa , Asia + South America

3. eMarketing to form even bigger part of marketing activity leveraging social media platforms and key travel sites.

4. National convention and events bureau to be set up to enhance national bidding capacity and delegate boosting. (examples: Climate change, Airport games, Architects congress, Cardiology, Olympics, etc.)


83

REVENUE TARGETS 2008 Actual

2009 Baseline 2010T2011T2012T2013T2014T2015T

Total foreign direct spend (R-bn) 100.1 109.2 117.2 126.1 135.7 146.0 157.0 169.0

Assumptions:1. 2009 was used as the baseline for setting the targets

2. 2009 estimates was calculated based on the available data for the year collected through the departure and domestic surveys

3. 2009 estimates were then corrected to real values using CPI of 6.2% as published by StatsSA

4. A forecast CPIX of between 5 to 7% was assumed

5. For these targets, the middle of the range CPIX value of 6% was assumed

6. The targets are represented in real terms as adjusted for assumed CPI of 6%

The outcome we are working towards will result in an additional R69 billion revenue by 2015


KEY CHALLENGES FOR TOURISM

• Our competitiveness – 16.1 arrivals per job; revenue low• Barriers to travel – Value; safety remain • Risks – natural disasters; economic recession• Transformation is slow• Positioning – our culture is undersold and under packaged• Oversupply in the industry driven by world cup


85

1. Safety & security of tourists

Research confirms that this represents the biggest deterrent to aggressively growing tourist arrivals to South Africa over the next 5 years. SA Tourism will continue to work with its stakeholders in Government and the private sector to address this.

Following the recent completion of the Safety and Security study, we will now draft a letter from our Board to the Minister of Tourism and the Office of the President given the earlier Board decision in this regard (see the separate slide on this topic from our recent research on this matter, we now know that crime is costing South Africa R 32,22 billion per annum in lost foreign direct spend from tourists and 183 000 direct jobs lost per annum).

2. Provincial- and Local Authority Tourism Authorities

Like in most other countries, South Africa needs to create a culture of more domestic travel as that is the biggest contributor to sustainable businesses and jobs in tourism industry. Realizing that the bulk of domestic tourism growth should come from the metropolitan areas, Provincial Tourism Authorities should be encouraged to spend the bulk of their budgets on:

2.1 the aggressive promotion of travel to their provinces within the metropolitan areas (e.g. through billboards and radio advertising) and not on overseas marketing and travelling (which is SA Tourism’s primary responsibility);

2.2 creating a culture of a “welcoming-towards international- and-domestic-tourists” public in their provinces that will also be the eyes and ears of Government (to deter/report crime).

SA Tourism’s medium to longer-term challenges


86

Extract from SA Tourism’s latest Strategic Plan (until 2015/16) (R’mil)

Detail/Financial year Audited 2008/9 Audited 2009/10 Approved Approved Approved Approved Approved Approved

budget 2010/11 budget 2011/12 budget 2012/13 budget 2013/14 budget 2014/15 budget 2015/16

Total revenue budget 740 945 454

866 743 518

823 180 293

828 319 148

865 538 067

902 005 698

942 228 662

944 280 546

Less: Overheads & CAPEX 227 611 967

206 481 360

217 102 177

223 377 489

230 910 020

236 536 278

242 594 771

248 469 347

Total HR mainline expense items 110 911 933

111 459 183

118 341 747

127 309 611

131 128 900

135 062 767

139 114 650

143 288 089

Total Net premises mainline expense items 16 867 439

17 397 452

25 445 252

23 395 901

29 611 230

31 064 523

30 301 372

30 966 549

Total Other operating expenses mainline expense items

68 548 759

72 296 489

58 135 178

56 611 537

53 290 368

52 753 007

54 710 594

55 377 190

CAPEX 31 283 836

5 328 236

15 180 000

16 060 440

16 879 522

17 655 980

18 468 156

18 837 519

Total amount available for marketing and research 513 333 487

660 262 158

606 078 116

604 941 658

634 628 047

665 469 420

699 633 891

695 811 199

Total marketing expenses 537 669 992

652 238 113

606 078 116

604 941 658

634 628 047

665 469 420

699 633 891

695 811 199

Net surplus/deficit for the year -24 336 505

8 024 044

- -

- -

-

-

Total non-marketing overheads 83 496 136

74 997 889

76 038 627

80 200 955

82 937 242

85 617 189

86 123 210

87 880 575

Non-marketing overheads as a % of total marketing revenue

11.8% 9.0% 9.7% 10.2% 10.1% 10.0% 9.6% 9.8%


87

SAT marketing expenses: 2009/10 – 2011/12

Country office Currency

of officeAudited 2009/10

Audited 2009/10

Approved Approved Approved Approved

(forex) (R’mil) budget 2010/11 (forex)

budget 2010/11

budget 2011/12 (forex)

budget 2011/12

(R’mil) (R’mil)

1. USA USD 5.666 43.631 5.074 42.406 5.074 42.423

2. UK GBP 3.025 37.745 2.740 34.348 2.740 34.335

3. Germany EUR 4.052 43.517 3.371 36.128 3.371 36.133

4. France EUR 2.840 30.916 2.375 25.461 2.189 23.465

5. Netherlands EUR 2.042 22.409 1.813 19.432 1.720 18.435

6. Italy EUR 1.215 13.165 0.690 7.392 0.690 7.393

7. India INR 67.102 13.420 105.882 18.000 88.235 15.000

8. China CNY 10.593 12.712 15.250 15.250 11.585 14.238

9. Japan JPY 79.786 6.736 59.663 8.811 59.663 5.395

10. Australia AUD 2.347 15.407 2.339 12.400 2.339 15.906

11. Domestic ZAR 19.500 - 19.500

12. Nigeria USD 6.813 - 6.991

13. Kenya USD 5.110 - 3.610

14. SADC USD 7.133 - 6.633

15. Angola USD - - 7.133 - 9.633

16. DRC USD - - 7.133 - 5.633


88


• Please note that the 2009/10 Africa figure includes Indaba•2010/11 strategy for Americas & Europe Portfolio’s are to stabilise while we increase funding in Africa and Asia Portfolio’s•Finance’s & Office of the CEO’S 2008/9 audited figures were negative due to exchange profits

Business Unit Audited 2009/10 Approved Approved

(R’mil) budget 2010/11 budget 2011/12

(R’mil) (R’mil)

1. Americas & UK Portfolio

84.284 79.544 79.709

2. Europe Portfolio 109.838 91.203 87.379

3. Asia Portfolio 48.169 54.562 52.144

4. Africa Portfolio including Domestic*

35.858 55.000 52.000

5. Business Tourism 27.078 10.500 11.109

6. Central Marketing 199.824 183.000 189.635

7. PR & Comms 17.546 12.000 11.000

8. Events 31.394 10.000 8.000 9. TGCSA 4.570 22.936 25.410

10. TECSA 1.061 - -

11. Finance 7.738 5.798 6.134

12. HR 0.185 2.005 2.121

13. e-Marketing 25.219 18.000 14.000

Sub total 592.762 544.547 538.642


89


Business Unit Audited 2009/10

Approved Approved

(R’mil) budget 2010/11 budget 2011/12

(R’mil) (R’mil) Sub total from previous page 592.762 544.547 538.642 14. Business Systems (IT) - - -

15. Office of the CEO/COO 1.988 6.500 6.877

16. Research 45.600 46.531 49.230

17. Product 11.889 8.500 10.193

Total Marketing expenses 652.238 606.078 604.942


90

Changes to SAT’s non-financial resources during the 2011/12 financial year

1. People1.1. Number of employees

SA Tourism’s current staff complement of 174 will be increased by 3 staff members to 177 to cater for the Luanda office staff effective 1 April 2011 (Country Manager, Trade Relations/Marketing Communications Manager and Finance & Admin Manager). No other changes will take place in terms of SA Tourism’s staff compliment until 31 March 2012 and sufficient provision has been made in the budget to fund it.


91

Changes to SAT’s non-financial resources during the 2010/11 financial year

1. People (continue)1.2. Skill set of staff members

No changes are foreseen.

1.3. Time allocation/management of marketing staff members

1.3.1 In terms of SA Tourism’s Board-approved market prioritization, marketing staff

members will continue to spend the following proportion of total available time on the

different types of markets: Core markets: 60%, Investment markets: 20%, Tactical markets:

15% and Watch-list markets: 5%.

1.3.2 In terms of maximizing available time of all SAT managers,:

1.3.2.1 SAT will continue to encourage short to-the-point meetings preferably not

exceeding 3 hours;

1.3.2.2 SAT will continue to encourage staff members to rather attend to e-mails after

13h00 every day (and not during the mornings when productivity is at its optimum);

1.3.2.3 SAT will continue to enforce the following management routines (where proper minutes should be kept available for audit-inspection purposes):

1.3.2.3.1 An Exco meeting every Tuesday

1.3.2.3.2 A Manco meeting twice a month (on Wednesday’s)

1.3.2.3.3 A Country Office meeting twice a month

1.3.2.3.4 A Business Unit meeting twice a month


92

Changes to SAT’s non-financial resources

2. Systems

No change is foreseen at this stage to SA Tourism’s 3 primary

systems (Oracle, EPM Project Management and the QIT Grading Backoffice system) except for the implementation/loading of regular updates/patches.


93


3. Infrastructure

3.1 Head Office

No change

3.2 Country offices

SA Tourism’s 11 country offices will be retained and no additional offices are planned due to the budget constraints.


94


4. Business Units

No changes are necessary in SAT’s current 15 business units.

• Office of the CEO/COO (including Legal, Internal Audit & Admin)• Human Resources• Africa Portfolio (including Domestic Marketing)• Asia, Australasia and Americas Portfolio• Europe & UK Portfolio• Events• Business Tourism• Central Marketing (including Global Brand, Channel & Agency Management)• E-Business• Research• PR & Comms• Product & Itinerary • Finance• TGCSA• Business Systems (previously known as IT)


95

Changes to SAT’s non-financial resources effective 1 April 2011

The budget cuts of R 50,4 million, R 53,4 million and R 57,0 million over the 2010/11, 2011/12 and 2012/13 financial years have been fully catered for and no staff reduction or office closures are foreseen until 31 March 2012 unless the Rands weakens dramatically against major currencies in which case the situation will be re-assessed.


SA Tourism’s KPI’s and targets for 2011/2 (get from Gomo)

SA Tourism’s KPI’s and targets for 2011/12 (please note that a projection for a financial year, e.g. 2011/12 will lead to the achievement or non-achievement of a projection during the previous calendar year, in this case the 2011 calendar year)

Indicator Programme/ Activity Past Current Projected

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2012/13

Number of international

tourist arrivals per year

Arrival statitics 9 090 881 9 591 828 9 933 966 10 193 585 10 295 520 10 398 475 10 502 460

- number of land arrivals 6 626 731 7 087 452 7 490 425 7 834 324 7 912 667 7 991 793 7 452 532

- number of air arrivals 2 464 150 2 504 376 2 443 541 2 359 ,261 2 382 853 2 406 681 3 049 927

Average spend per

international tourist in

the country

Spend statitics R7 000 R8 100 R8 400 R8 700 R9 222 R9 775 R10 300

- average spend per

land tourist

R5 800 R6 200 R7 100 R7 100 R7 500 R7 900 R8 400

- average spend per air

tourist

R10 200 R13 800 R13 000 R14 200 R15 000 R15 900 R16 800

Percentage of global

brand awareness

Brand awareness

75% 76% 79% 77% 78% 79% 79%

Percentage of brand

positivity

38% 37% 38% 40% 41% 42% 42%

Total number of

accommodation

establishments graded

5 400 7 209 8 196 8 288 8 288 9 117 10 029

Transformation of the

tourism sector

10% response from

the industry TECSA moved

back to the Dept of

Tourism

TECSA moved

back to the Dept of

Tourism

TECSA moved

back to the Dept of

Tourism

TECSA moved

back to the Dept of

Tourism Host 12 workshops

Renew 10 MOUs with

associates


Moving forward – CEO

• I will lead the organisation forward on these key areas and give personal attention to some of them:

• First and Foremost to raise the profile of tourism within government and continue the battle for more funds especially post 2010.

• Partnerships with industry via TBCSA and others to promote brand competitiveness ito value for money; access and quality experience.

• Defend core markets – convert awareness to arrivals

• New growth – Brazil, India, Angola, Nigeria and DRC offer quick wins for growth

• Watchlist – Spain, Argentina and Portugal – tactical opportunities


Moving Forward continued

• Setting up of national conventions and events bureau – critical bidding support, positioning for meetings/events and research. Linked to Sports bidding strategy with SRSA

• Staff development and internal communication to drive results focussed and people centred organisation. To make SAT a top best company to work for. Also look at succession planning and coaching.

• Stakeholder management intra-government especially Home Affairs; DIRCO; DOT, Arts and Culture and Safety and Security

• Quality assurance and visitor experience – new grading critieria to be launched.


SiyabongaThank You

Slide no. 1 © South African Tourism 2010 Click to edit Master subtitle style SA Tourism’s 2009/10 Annual Report and Financial & Performance Information.

Documents

south african tourism

values of sa tourism

sa tourism vision

sa tourism plans

tourism growth

people mission of sa

sa tourism highlevel

mandate slide