South African Tourism
Bi-Annual Report
April 2013 – September 2013
Presentation to the Portfolio Committee
29 October 2013
Presentation by: Thulani Nzima
CEO: South African Tourism
Portfolio Committee
29 October 2013
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Background
•
Global tourism arrivals topped a record 1 billion tourists in 2012.
•
Increasing demand for shorter trips instead of long haul travel.
•
Average length of stay reduced across the board
•
Spend increased across the board except Africa land markets
•
On-going concerns regarding the future of the Euro-Zone and unstable economies.
•
European countries continually seek austerity measures to boost their economies.
•
Continuing decline in disposable income
•
The US economy is showing recovery signs and travel slowly rebounding
•
Small agility better than big, cumbersome entities
•
Direct tourism contribution to the country’s GDP grew by 5% to R84.3 billion in 2011.
•
Tourism directly or indirectly sustained 9% of employment
Slide no. 2
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
HUB STRATEGY
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Overall Performance – Quarter 1 (April – September 2013)
OBJECTIVE
ANNUAL TARGET
ACTUAL (YTD)
COMMENT
# of annual foreign arrivals
13 021 979
3 620 149
Q1 target of 3 125 275
in SA
Air: 977 605
was achieved & figures
Q1 - 3 125 275
Land: 2 642 544
for Q2 are awaited.
15 000 000
5.5 million
36.6% achieved
R115.4 billion
R26.1 billion
The Q1 target was
Q2 - 2 995 055
# of domestic travellers per year
Q1 – 4 000 000
Q2 - 4 000 000
Trended Revenue (R )
Q1 – R27,7 billion
slightly missed & Q2
Q2 – R26,5 billion
figures are awaited.
Average brand awareness
Total number of graded properties
Q1 – 1 697 000
Q2 – 1 697 000
Slide no. 4
79%
6 789
79%
Achieved & results due
4 614
in November.
Overachieved by 36% YTD was 3 394
Overall Performance – Quarter 1 (April – September 2013)
OBJECTIVE
ANNUAL TARGET
Compliance with Policies and procedures
Unqualified annual
external audit
report
Number of delegates
Slide no. 5
56 000
ACTUAL
COMMENT
89% YTD spend of
expense budget & 62%
YTD spend of the
operating budget.
No results
30 bids were supported
in 2013 at the
estimated economic
impact is R622.3 million
and 41 900 estimated
jobs. We are confident
that that we will meet
the 56 000 delegates.
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Tourist arrivals to South Africa grew by 8.6% in Jan to March 2013 compared to the global
growth of 7.0% for the same period in 2012.
Year-on-Year Change in Tourist Arrivals to each region
30%
25.5%
% Change
25%
20%
15%
10%
8.6%
7.0%
6.8%
2.6%
5%
0%
7.4%
South Africa
Africa
2.0%
Asia and the Pacific Europe
Middle East
Americas
World
2012 Tourist arrivals
(Millions)
2.3
11.3
56.5
86.6
12.5
39.3
206
2013 Tourist arrivals
(Millions)
2.5
11.6
60.7
92.5
15.7
40.1
221
Note: UNWTO estimates incorporate provisional data for some regions
Source: Statssa Tourism & Migration release March 2013, SAT analysis; UNWTO World Tourism Barometer June 2013
Slide no. 7
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Tourist arrivals to South Africa for January to March 2013 grew by 8.6% over 2012 to reach 2,461,999. All regions
showed positive growth , Asia showed highest growth of 27.1% in tourist arrivals.
#3
Europe
Europe

North America
92,727 arrivals
5.2% up from 2012



430,910 arrivals
9.2% up from 2012
#4
Americas
Middle East


16,194 arrivals
11.4% up from 2012
#2
Africa Air
Asia


108,272 arrivals
27.1% up from 2012
Central & South America


#5
Africa
Land
35,535 arrivals
15.2% up from 2012
Australasia
30,816 arrivals
3.4% up from 2012

AFRICA
GRAND TOTAL





1,736,166 arrivals
7.6% up from 2012
2,461,999 arrivals
8.6% up from 2012
Slide no. 9
#1
Asia &
Australia
Indian Ocean Islands

Note : Tourist Arrivals figures shown above for Jan. - Mar. 2013
Source: Table A Tourist Arrivals Jan. - Mar. 2013

5,704 arrivals
10.3% up from 2012
Slide no. 10
Total foreign direct spend generated from tourist arrivals decreased by -5.4% between
Q1 2012 and Q1 2013.
Africa - land and Africa - air were the only regions that posted a decrease in revenue from Q1 2012 to Q1 2013
Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013
Revenue (R - Billion)
25
20
17.5
19.9
2011
2012
2013
18.8
15
10.3 11.6 10.3
10
4.8
5
0.9 0.9 0.9
1.2 0.8 1.2
Africa - air
Americas
1.7
1.0 1.7
3.2 4.8
0
Total
Africa - land
Asia &
Australasia
Europe
Average spend per tourist in SA
2011
R9,000
R8,200
R13,600
R9,900
R13,400
R10,200
2012
R9,200
R8,400
R13,300
R11,600
R12,300
R10,100
2013
R8,000
R6,300
R9,200
R10,500
R13,900
R12,400
Source: SAT Departure Surveys
Slide no. 11
Asia remains buoyant and Europe SA’s main source of tourist arrivals
•
The source of this tourist performance of 8.6% came from the following markets:.
•
Asia remains buoyant with the highest growth, recording 27.1% increase in foreign tourist arrivals to reach 108 272
tourists.
•
This growth was led by China, including Hong-Kong which grew by 37.4%, reaching a total of 42 441 tourists in
March 2013 relative to 30 883 in the same period in 2012.
•
Growth in China was also influenced by the following factors, among others;
• South African Airways’ direct flight to Beijing since January 2012.
• Two new visa application centres which opened in Beijing and Shanghai in 2011 – making travelling to
South Africa more appealing for Chinese tourists.
•
Europe remains the main source of foreign tourist arrivals to South Africa, with 430 910 tourist arrivals - a 9.3%
growth from 2012 figures.
• This growth is led by the UK’s tourist arrival figures of 137 358 ( 2.7% growth from 2012).
• Germany grew 17.6%
• France grew 7.3%
• the Netherlands down with -2.9% and
• Italy grew 17.1% reaching 14 242 tourist arrivals.
•
The US leads the charts of North America performance, growing at 5.8% to reach 74 166 tourists in March 2013.
Slide no. 12
Regional Africa’s Growing supported by the Africa Growth Plan
•
Central and South America recorded a growth of 15.2%, attracting 35 555 foreign tourist arrivals to South Africa,
led by Brazil.
•
The Middle East Markets brought in 16 194 foreign tourists in 2013, up by 11.4 % from 2012.
•
Regional Africa reported 1.73 million tourist at 7.2% growth .
Slide no. 13
There has been a decrease in the number of provinces visited by all tourists
Average Number of Provinces Visited by All Tourists, Q1 2012 vs. Q1 2013
Average number of provinces visited
2.0
1.7
1.2
1.2
1.2
1.1
1.6
1.6
1.7
1.6
1.5
1.2
1.1
Q1 2012
1.0
Q2 2013
0.0
Total
Slide no. 14
Source: SAT Departure Surveys
Africa Land
Africa Air
Americas
Asia & Australasia
Europe
© South African Tourism 2012
Gauteng and Western Cape are by Far the Most Visited Provinces.
Provincial Distribution Q1 2012 vs. Q2 2012
Provincial distribution - All foreign visitors
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Q1 2012
Gauteng
46.1%
Western Cape
18.5%
Eastern Cape
4.3%
KwaZulu Natal
10.2%
Mpumalanga
16.4%
Limpopo
11.3%
North West
5.3%
Northern Cape
1.1%
Free State
8.8%
Q1 2013
47.8%
18.8%
3.9%
9.8%
15.6%
11.2%
5.6%
0.9%
7.8%
Slide no. 15
Note: Unpaid accommodation refers to staying with friends or family. “Other” accommodation refers to staying at schools, churches, universities, etc.
Source: SAT Departure Surveys
© South African Tourism 2012
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Country Manager
Global
Channel
Manager
Stakeholder
Manager
Regional Director
Markets Driving Tourist Arrival Growth in Q1 and Beyond – 4th Portfolio
01/04/2011 to 30/03/2014
Slide no. 17
AFRICA
AMERICAS & the UK
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 (including Hong Kong)
Japan
Belgium
Italy
Sweden
New Zealand
Ireland
Republic of Korea
Austria
Denmark
Portugal
Spain
Switzerland
TACTICAL
MARKETS
Lesotho
Swaziland
WATCH-LIST
MARKETS
Malawi
Namibia
Zambia
Zimbabwe
STRATEGIC
IMPORTANCE
Bahrain, Oman, Qatar,
Saudi Arabia
STRATEGIC AIR
LINKS/HUBS
Egypt, Ethiopia, Ghana,
Mauritius, Senegal,
Tanzania, UAE
Argentina
Malaysia
Singapore
Markets that will drive Future Tourist Arrival Growth - 01/04/2014 to 30/03/2017
Country Manager
Regional Director
Responsibility
CORE MARKETS
INVESTMENT
MARKETS
Global
TRM:
Stakeholder
Manager
TACTICAL MARKETS
Slide no. 18
AFRICA
AMERICAS
ASIA & AUSTRALASIA
EUROPE & THE UK
Angola
Domestic
Kenya
Mozambique
Nigeria
Tanzania
Brazil
USA
Australia
China
India
France
Germany
Netherlands
UK
Botswana
DRC
Ghana
Lesotho
Uganda
Zimbabwe
Canada
Japan
South Korea
Italy
Russia
Singapore
Switzerland
New Zealand
Austria
Belgium
Denmark
Finland
Norway
Spain
Sweden
Turkey
Namibia
UAE
Zambia
WATCH-LIST
MARKETS
Ethiopia
Malawi
Swaziland
STRATEGIC
IMPORTANCE
Egypt, Israel, Morocco,
Saudi Arabia, Tunisia,
Argentina
Malaysia
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
The Hub Strategy for Global Markets to increase market penetration, footprint and efficient
resource utilisation.
AMERICAS
UNITED KINGDOM
CENTRAL Europe
ASIA PACIFIC
LATIN AMERICAS
NORTH AMERICAS
EUROPE
ASIA & AUSTRALASIA
United Kingdom (Office):
Hub
USA (Office) - Hub
* Brazil (Office): Hub
China - Office ** : Hub
Germany (Office): Hub
Canada
*** Argentina
Hong Kong
Russia **
Ireland
*** Chile
Macau ***
Spain
Scotland
Japan
Turkey
Wales
South Korea **
Switzerland
AFRICA
WEST AFRICA
EAST AFRICA
* Nigeria (Office): Hub
* Kenya (Office) : Hub
Ghana
Tanzania &
Uganda **
*** ECOWAS countries
AUSTRALASIA
Australia (Office) : Hub
New Zealand
* Angola (Office) – Stand
Alone
FRANCE (OFFICE)
INDIA
France – Stand Alone
India (Office) – Stand Alone
Sweden (**)
Denmark
ITALY (OFFICE)
ASIA Air LINK HUB
DRC: Hub
Belgium
Norway
*** Ethiopia
CENTRAL AFRICA
BENELUX &
SCANDINAVIA
Netherlands (Office)
:Hub
Austria
Finland
Italy – Stand Alone
SADC
Botswana
Zimbabwe
Malawi
Lesotho
Mozambique
Zambia
Namibia
Slide no. 20
Malaysia
Singapore
Notes:
* Planned SA Tourism Offices (2013/2014)
** 1 Trade Relations Manager will be appointed – approved by Board (2014/2015)
(Shanghai, South Korea, Russia, Scandinavia as well as Tanzania and Uganda)
*** Future Plans (2015/16 and Beyond)
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Domestic Performance
Key Metrics
Travel Incidence
Number of Trips
Q2 2011
Q2 2012
Q2 2013
Monthly
6.6%
6.6%
5.3%
Quarter
Travellers
Avg Trips per Traveller
6.2 Million
3.5 million
1.8
7.0 million
3.0 million
2.3
5.5 million
2.9 million
1.9
By Purpose
VFR: 72%, Holiday: 16%,
VFR: 71%, Holiday: 14%,
VFR: 74%, Holiday: 9%,
By Province
KwaZulu Natal: 30%
Limpopo: 22%
KwaZulu Natal: 31%
Gauteng: 18%
Eastern Cape: 11%
Western Cape: 8%
Limpopo: 7%
Gauteng: 19%
KwaZulu Natal: 18%
Western Cape: 13%
Eastern Cape: 8%
Limpopo: 18%
Gauteng: 17%
Western Cape: 8%
Total Annual Spend
By Purpose
R4.6 Billion
R5.0 Billion
R5.2 Billion
(Purpose with sample size less
that twenty (20) not included)
VFR: 57%; Holiday: 25%
VFR: 49%, Holiday: 25%
VFR: 55%, Holiday: 19%
Average Spend per Trip / per Day
R640 / Trip; R160 / Day
R760 / Trip; R200 / Day
R930 / Trip; R230 / Day
Total Annual Bed Nights
Average Nights per Trip
24.9 Million
4.0 Nights
27.5 million
3.9 Nights
23.0 million
4.0 Nights
Cannot Afford Travel: 32%
Cannot Afford Travel: 32%
Cannot Afford Travel: 38%
No Reason To Take a Trip: 19%
No Reason To Take a Trip: 17%
No Reason To Take a Trip: 20%
Time Constraints: 16%
Unemployed / No Income: 15%
Time Constraints: 18%
Unemployed / No Income: 15%
Time Constraints: 14%
Unemployed / No Income: 12%
Dislike Travelling: 11%
Dislike Travelling: 8%
Dislike Travelling: 8%
(Purpose and Province with sample
size less that twenty (20) not
included)
Spend
Trip Length
No Trips Taken
Top 5 Reasons for not taking a trip
22
© South African Tourism 2011
Reasons for a Decline in Domestic Performance
Total spend has increased by 4% from R5.0 billion in Q2 of 2012 to R5.2 billion in Q2 in 2013.
•
Average spend per trip has also increased from R760 in Q2 of 2012 to R930 in Q2 of 2013.
•
Average length of stay has increased from 3.9 nights in 2012 to 4.0 nights in 2013.
•
•
•
The 21% drop in domestic trips from 7.0 million in Q2 of 2012 to 5.5 million in Q2 of 2013 emanates
from the following:
•
Growing : Visiting Friends and Relatives (VFR) from 71% to 74% while holiday trips have
decreased by 9%
•
Affordability is still a major challenge due to
•
unemployment recorded at 25.6% in Q2 of 2013
•
Lower consumer spending recorded in Q1 of 2013 was 2.3% - down from 2.4% (Q4 of 2012), 2.7
(Q3 of 2012) and 3.2% (Q2 of 2012).
In addition to this, South Africans do not associate value and meaning to domestic travel experiences
and therefore do not invest.
There is need for a culture adjustment in the five market segments, causing consumers to re-prioritise
travel. The new campaign addresses this requirement by igniting a spark that culminates in a
‘movement’ that identifies with domestic travel benefits.
Slide no. 23
Revamped Domestic Campaign
•
•
A comprehensive campaign audit was performed on the last three Domestic campaigns.
The new revamped Domestic Tourism campaign extracts all the key learning’s from the
previous campaigns.



•
•
In reviewing the challenge with the Shot’ Left campaign it was recognized that the
shortfall of the target market did not address the large potential of the market.
In the case of the Vaya Mzansi campaign, it was apparent that it evoked national pride
amongst South Africans, using magnificent imagery that covered all corners of the
country.
Although it was a beautifully produced campaign, the call to action was minimal.
In the revamped Domestic Tourism revamped campaign, the market segmentation has been
aligned to the Vaya Mzansi (from LSM 1 to 10) with the inclusion of the “Young at Heart” who are over 50 plus, with greater disposable income.
This Domestic Tourism campaign also focuses on shifting behaviour to create a culture of
travel that has not previously been achieved.
Slide no. 24
1st Phase - Inter-City and Provincial Rivalry (3 months)
•
•
•
The new Domestic Tourism initiates a spark of engagement, generating ‘healthy banter’ between the
cities and provinces by creating a competitive interaction that challenges the rest of South Africa with
the statement “Nothings More Fun than a Shot’ Left from ….”
This is a fully integrated, sustainable, unconventional, unexpected, entertaining and delightful
campaign. It focuses on improving short-term trips like a weekend away.
Leveraging of the equity built on Shot’Left, the creative device is “Nothing is more Fun than …” The
new campaign brings to life the innate benefits of short breaks, road trips with friends or quick getaway trips from the city, a Shot’Left.
•
The campaign uses travel ambassadors that personify fun.
•
The look and feel will be colourful, energetic and dynamic.
•
A 360-degree, through-the-line media campaign will broadcast targeted messaging such as “THERE IS
NOTHING MORE FUN THAN A SHOT’ LEFT from JOZI”.
Slide no. 26
2nd Phase – Post Rivalry
•
This phase is characterised by a fully integrated campaign on television commercials, radio, digital
media and print (e.g. catalogues into newspapers). This will be deal driven campaign with flexibility
pricing and offering. Collateral will also be distributed around events such as Fashion Week.
Provincial Alignment - SPARK will promote intra-Provincial travel.
•






Concurrently to the rivalry phase that is sparked, the Provinces are assisted with ‘templates’ of
the marketing collateral to add their own creative statement. SPARK will promote intra-Provincial
travel.
Chapters of the campaign will focus on promoting attributes that are unique for each Province.
The Provincial campaign will provoke that “Nothing is More Fun than a Shot’Left in Limpopo”
(for example).
A road trip is being used to showcase various modes of transportation across the
country (bus, train, taxi, etc).
Alignment of strategies to this campaign e.g. aligning the Gauteng Tourism Authority’s
GP to the JOZI’s campaign.
Most Province and Cities are already having strategy around trade partners – but
alignment will add impetus to the campaign
Use of DJs with a regional appeal was suggested.
Slide no. 27
TABLE OF CONTENTS
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GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Number of Graded Establishments as at end September 2013
Non-Hotel
Accommodation
EC
FS
GP
KZN
LP
MP
NW
NC
WC
Grand
Total
Backpacker & Hostelling
13
2
8
8
2
1
1
1
41
77
Bed & Breakfast
189
15
177
239
21
32
23
31
328
1 055
Caravan & Camping
16
5
1
9
11
4
6
4
22
78
Country House
32
5
21
15
8
9
3
2
70
165
Guest House
224
52
434
146
52
106
58
78
589
1 739
Lodge
51
9
46
56
78
47
7
39
32
365
Self Catering
Non-Hotel Accommodation
Total
111
23
79
185
79
60
22
26
781
1 366
636
111
766
658
251
259
120
181
1 863
4 845
Hotel Total
Accommodation Grand
Total
MESE Total (Business
Tourism)
Grand Total Graded
Properties
57
25
177
108
30
38
24
24
184
667
693
136
943
766
281
297
144
205
2 047
5 512
7
12
72
4
13
18
7
13
17
163
700
148
1 015
770
294
315
151
218
2 064
5 675
The grand total of 5675 is the total number live establishments
Slide no. 29
Number of Graded Rooms as at end September 2013
Non-Hotel Accommodation
EC
FS
GP
KZN
LP
MP
NW
NC
WC
Grand Total
Backpacker & Hostelling
592
30
498
523
87
25
200
32
1 308
3 295
1 344
112
1 148
1 573
245
243
140
267
1 704
6 776
Caravan & Camping
655
101
50
886
913
258
157
660
1 416
5 096
Country House
313
43
263
141
122
94
23
25
780
1 804
2 282
635
4 687
1 534
788
1 317
529
993
4 423
17 188
Lodge
514
319
1 324
1 153
1 271
1 052
87
968
440
7 128
Self Catering
956
243
1 063
1 539
1 656
1 471
107
849
4 216
12 100
Non-Hotel Accommodation
Total
6 656
1 483
9 033
7 349
5 082
4 460
1 243
3 794
14 287
53 387
Hotel Total
4 359
1 656
19 600
9 012
1 816
2 595
1 141
2 826
14 381
57 386
Accommodation Grand Total
11 015
3 139
28 633
16 361
6 898
7 055
2 384
6 620
28 668
110 773
MESE Total (Business Tourism)
38
24
548
26
55
67
18
57
74
907
Grand Total Graded Properties
11 053
3 163
29 181
16 387
6 953
7 122
2 402
6 677
28 742
111 680
Bed & Breakfast
Guest House
This slide DOES NOT include cancellations
Slide no. 30
TABLE OF CONTENTS










GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Number of Bids Secured for South Africa 2013 - 2017
Bids 2013 - 2017
Total Bids
Total Number of
Days
Estimated Delegate
Numbers
106 Secured
461
219 980
Estimated Economic
Impact
R 2 903 544 000.00
Bids Submitted Q1 and Q2 dated 22/10/2013
Total Bids
Total Number of
Days
Estimated Delegate
Numbers
30 Submitted
131
41900
Slide no. 32
Estimated Economic
Impact
R 622 300 000.00
Number of Bids Secured for South Africa 2013 - 2017
Bids 2013
Total Bids
Total Number of
Days
Estimated Delegate
Numbers
41 Secured
168
58750
Total Bids
Total Number of
Days
Estimated Delegate
Numbers
26 Secured
111
47 750
Estimated Economic
Impact
R 695 688 000.00
Bids 2014
Slide no. 33
Estimated Economic
Impact
R 610 960 000.00
TABLE OF CONTENTS










GLOBAL ENVIRONMENT
OVERALL PERFORMANCE - KPIs
GLOBAL Q1 PERFORMANCE
SOUTH AFRICA’S Q1 PERFORMANCE
MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND
BEYOND
MARKETS THAT WILL DRIVE FUTURE GROWTH
DOMESTIC TOURISM RESULTS
TGCSA UPDATE
NCB UPDATE
FINANCIAL PERFORMANCE
Highlights of SA Tourism’s Financial Performance for the 6 Months that ended on 30
September 2013
SA TOURISM ON TRACK TO SPEND ITS FULL 2013/14 BUDGET
•
During the first 6 months of the 2013/14 financial year, SA Tourism spent R 604.7 million which
represents:
o
89% of its year-to-date expense budget of R 682.6 million (this means that SAT was R 77.9 million
behind on its year-to-date budget as at 30 September 2013);
o
62% of its total 2013/14 operational budget of R 968.6 million.
Slide no. 35
Highlights of SA Tourism’s Financial Performance (cont.)
EXPENDITURE BY COUNTRY OFFICES AND BUSINESS UNITS
•
•
•
Nine of South African Tourism Country offices spent 90% or more of their year-to-date budgets, two
Country offices were slightly below budget (Amsterdam & Nigeria) and three Country offices were
significantly below budget (Brazil, Angola & Kenya).
Of South African Tourism’s seventeen Business Units, twelve spent 90% or more of their 2013/14 year-todate budgets, three were slightly behind on their budgets (Africa Portfolio, TGCSA & Watch-list Business
Unit) and two Business units were significantly below budget (National Conventions Bureau & HR).
Relevant actions have been taken by management to address the under-expenditure within these Country
offices and Business Units.
Slide no. 36
Highlights of SA Tourism’s Financial Performance (cont.)
CAPITAL EXPENDITURE
•
During the first 6 months of the 2013/14 financial year, SA Tourism only managed to spend R 1 279 916 or
7% of its total 2013/14 CAPEX budget of R 18, 7 million. The main reasons for this were the fact that:
o
o
Slide no. 37
three planned overseas offices have not been opened yet (Angola, Brazil and Nigeria) while the 4th
new office (in Kenya) is only planned for the end of the 2013/14 financial year
approval for phase 1 of the planned Head Office extension have not been received from the relevant
local authority yet.
THANK YOU
Slide no. 38