South African Tourism Domestic Tourism Presentation to the Portfolio Committee on Tourism 11 September 2015 Purpose The purpose of the presentation is to update the Portfolio Committee on: • The Domestic Tourism Marketing Strategy. • The implementation of the R100 million ring-fenced funding. Slide no. 2 © South African Tourism 2015 Outline • Recap on the Portfolio Committee’s request on key issues to be addressed • Identified Gaps and Key Interventions • Introduction Domestic tourism key challenges Barriers to domestic tourism Core domestic tourism problems 5 year performance overview Domestic Tourism Key Issues • Links to NTSS Approach to additional funding Target segments Budget • • Marketing Strategies per Strategic Objective and Implementation plan • Unpacking Sho’t Left Slide no. 3 © South African Tourism 2015 Recap on the Portfolio Committee’s request on key issues to be addressed Slide no. 4 Key issues to be addressed • Strategies to inculcate a culture of travel amongst South Africans. • Strategies to achieve geographic spread. • Strategies to target the Black Middle Class. • Partnerships with organisations/stakeholders. • Unpacking “Nothing’s More Fun Than A Sho’t Left”. • Implementation of the R100 million ring-fenced funding. Slide no. 5 © South African Tourism 2015 Identified Gaps and Proposed Interventions Slide no.6 Identified gaps and proposed interventions Identified Gaps • • • • Integrated Domestic Growth Strategy is under review – NDT led process. Expand the definition of a domestic tourist in a South African context. Broaden our data collection parameters and extend our insights on segments. Impact on the implementation plan for 2016/17 onwards and based on learnings on 2015/16. Proposed Interventions • • SA Tourism will convene a Domestic Tourism Think Tank to agree on the innovative ways to grow domestic tourism (input to the growth strategy). Participation of the advisory group include the Department of Tourism, Ministry, SA Tourism, Industry through TBCSA and key Provincial and City Tourism Agencies. Slide no. 7 © South African Tourism 2015 Outline • Introduction Domestic Tourism Key Challenges Barriers to Domestic Tourism Core Domestic Tourism Problems 5 year Performance Overview Slide no. 8 © South African Tourism 2015 Domestic Tourism Key Challenges Developing the economic, socio-political case for Domestic Tourism resulting in building a culture of travel among all South Africans, encouraging more frequent travel, over a broad geographic spread throughout all seasons. Slide no. 9 © South African Tourism 2015 SA Tourism Domestic Marketing Mandate The mandate of SA Tourism is . . . . . . through six key objectives . . . . . . by acting in a focused way to . . . Slide no. 10 Slide No. 10 Sustainable GDP growth Sustainable job creation Redistribution and transformation Increase in tourist volume Increase in tourist spend Increase length of stay Improve geographic spread Improve seasonality patterns Promote transformation Understand the domestic market through insights and analytics Facilitate the removal of barriers Facilitating partnerships with key stakeholders, provinces and cities Educate, influence and partner with trade Entrench a culture of travel Encourage travel to address seasonality and geographic spread South African Tourism 2013 Barriers to Domestic Travel • Low disposable income. • The perception that travel is not affordable. • • A lack of a culture of travel due, in part, to not understanding the value and benefits of travel. The general belief in the trade, provinces and cities that international tourism is more important than domestic tourism. Slide no. 11 © South African Tourism 2015 Core Domestic Tourism Problems As per our Domestic Survey, these are the Top 5 Reasons cited for not taking a domestic trip over the last 3 years; • Economic constraints remain the biggest barrier to domestic travel. This can be translated into the lack of affordability, but it can also be seen as the lack of value a travel experience can create. • Approximately, 48% of the adult population cannot afford to travel and they are unemployed/ have no income. 50% 2012 2013 41% 2014 38% 40% 35% 30% 21% 20% 20% 20% 16% 17% 19% 17% 11% 10% 10% 7% 9% 9% 0% Cannot afford travel No reason to take a trip Time constraints Unemployed / no income Dislike travelling © South African Tourism 2015 Slide no. 12 Affordability Culture Purpose of Travel Trends • • Visiting Friends and Relatives (VFR) remains the major reason for domestic trips and the number of domestic trips increased in 2014 compared to 2013. The number of holiday and business trips taken in 2014 decreased compared to 2013 and were even lower than 2012 levels. 30 2012 20 18,4 2013 20,7 17,9 2014 10 2,9 3,1 2,8 1,7 2,0 1,6 2,0 1,9 0 VFR Slide no. 14 Holiday Business Religious 2,2 0,1 0,1 0,2 Medical © South African Tourism 2015 Outline • Domestic Tourism Marketing Strategy Slide no. 15 Links to NTSS Approach to Additional Funding Target Segments © South African Tourism 2015 Links to National Tourism Sector Strategy (NTSS) NTSS aims to, amongst others, contribute to the job creation objectives that have been set out by the President, the tourism’s sector contribution being 225 000 jobs by the year 2020. Our role is to… • To entrench a tourism culture among all South Africans. • To increase the number of domestic travellers. • Grow the number of domestic trips. • increasing the number of holiday trips. • To improve the domestic tourism revenue contribution. • To improve seasonality and geographic spread of tourism. Slide no. 16 © South African Tourism 2015 High-Level Roadmaps for Reaching NTSS Targets In addition to the activation strategy, it is important for all players in the tourism cluster to assist in creating the right environment in which tourism can flourish... Attractions Domestic Travellers Individuals, families, tour groups, sports teams, study groups, business people, delegations, politicians, etc. Holiday Resorts/ Beaches Direct Retail/ Markets/ Restaurants Sports Events/ Public Events Historical Places Business/ Congresses Indirect Construction Transportation (Airline/ Coaches Ships, Railway) Game Parks, Recreational Facilities, Wildlife Cultural Villages Suppliers F&B Services Tour Operators, Agents/ Guides Financial Services, Insurance Hotels, Guesthouses, etc. Car Hire, Medical Services Economic Foundations Tourism Organisations National Government NDT, SAT Communities Soft Infrastructure Hard Infrastructure Provincial Governments Cape Town Durban Universities, Training Institutes, Schools, etc. Roads Police & Security International Airports Local Government Sun City Industry Associations Telecommunications Others Banks & Financial Utilities Note: Cluster map has been created as is from the source Source: The South African Tourism Cluster, The Cluster Consortium, 1999 November, April 18, 20112011 17 Copyright © 2011 SA Tourism Target Segments • The most attractive segments on which to focus activation efforts were identified based on our ability • to create awareness (culture of travel) ultimately grow the market (conversion) comparing those scores against our ability to win in the market. SA Tourism used action segmentation methodology, where out of the South African population of over 50 million was filtered by income of more than R3 000 per month – which constitutes only 8.2 million adults. Slide no. 18 © South African Tourism 2015 Identifying the Most Attractive Segments for Activation Integrated Prioritisation Once all three dimensions are viewed in composite, nine segments emerge as viable choices. Five segments were then chosen based on additional strategic input... LowIncome Singles and Couples Low Income Families Black Single Parent Families Low Income Black Families Up and Coming Black Singles New Horizon Families High-Life Enthusiasts Business Travellers Well-to-Do Mzansi Families Spontaneous Budget Explorers Seasoned Leisure Seekers Est. Holiday Families Older Middle Income Whites Older High Income Size of Segment 318,840 579,691 1,218,055 394,130 870,873 1,302,274 108,894 137,609 286,005 293,884 566,634 917,461 306,525 820,528 % of Segment already Travelling 36% 34% 37% 37% 47% 43% 48% 54% 54% 37% 44% 45% 36% 49% R2,079 R2,094 R2,042 R3,574 R4,146 R3,597 R3,859 R17,819 R5,333 R3,793 R8,173 R4,140 R2,526 R11,402 Older Middle Income Whites Older High Income Culture Growth Ability to Win Average Spend for all trips taken in a year LowIncome Singles and Couples Low Income Families Black Single Parent Families Low Income Black Families Up and Coming Black Singles New Horizon Families High-Life Enthusiasts Business Travellers Well-to-Do Mzansi Families Spontaneous Budget Explorers Seasoned Leisure Seekers Established Holiday Families Source: Monitor/ Grail Analysis; National Tourism Sector Strategy, February 2011, Department of Tourism, Republic of South Africa November, April 18, 20112011 19 Copyright © 2011 SA Tourism Understanding More about the Most Attractive Segments Overview of Prioritised Segments Spontaneous Budget Explorers New Horizon Families High-Life Enthusiasts Seasoned Leisure Seekers Well-to-Do Mzansi Families 18-24 35+ 25-45 25-45 18-45 All races Black, Coloured and Indian Black, Coloured and Indian White Black, Coloured and Indian Travel is a way to discover new people, places and adventures. Consumers in this segment travel to get away from the monotony of daily life; to add to their life experiences and fond memories Travel is a way to educate their children, and to provide them with the opportunity to broaden their perspectives. It is also seen as quality time for the family to spend together, and a reward for hard work Travel is a way to boost one’s social status, and to experience the finer things in life in new and different settings Travel is a way of life and something of a necessity. Having grown up going on regular holidays, this group of consumers understands the value of travel experiences and memories over commodities Travel is all about escaping the city, and being able to spend time with friends and family in new and different locations. To a certain extent, travel is also about exposing the children to alternative ways of life and activities Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011 November, April 18, 20112011 20 Copyright © 2011 SA Tourism Budget 21 MTEF budget allocation MTEF ring-fenced Allocation Domestic Budget (current allocation) TOTAL Slide no. 22 2015/16 2016/17 2017/18 R100 000 000 R105 000 000 R110 250 000 R 36,576,000 R 41,200,000 R 48,656,000 R136,576,000 R141,200,000 R148,656,000 © South African Tourism 2015 Approach to the additional funding Ensure that the additional funding will be expended to support the two categories: • Marketing activities aimed at Creating Awareness and Culture of travel. • Marketing activities that will Drive Conversion in the short term. Slide no. 23 2015/16 – 70%:30% 2016/17 – 60%:40% 2017/18 – 50%:50% © South African Tourism 2015 Marketing Strategies per Strategic Objective and Implementation plan 24 Strategic Objective 1: Grow the number of domestic travelers • SA Tourism targets 4 of the 5 prioritised segments with one additional middle income segment - to help grow the number of travelers and increase frequency. • Engage in activities which will drive demand by changing consumer segments attitude towards desirability and value of domestic travel, through communication that appeals to each segment, using relevant media. • The selected use of media channels will include travel product placement in local TV soapies, reality and breakfast shows. Slide no. 25 © South African Tourism 2015 Implementation Plan 2015/16 KEY PERFORMANCE INDICATOR BUDGET ALLOCATED MEASUREMENT TARGET: 2015/16 Grow the number of Achieve 13.8m; additional domestic travelers - increase travellers; which is a 7% growth over frequency 2014/15 R32 million Initiative Ultimate Braai Master This is reality television show about cooking and travelling targeted at South Africans who enjoy travelling their own country in less visited provinces. SA Tourism has partnered with Cooked in Africa to showcase less visited provinces and hidden gems. The aim to inspire travellers to take more frequent holiday trips. Impact Total Reach over R2, 5million (incl TV, print & online). Getaway Travel Show This is a partnership with Thompsons Tours to promote domestic travel deals and packages driving frequency and grow domestic travellers to address seasonality. This is one of the biggest consumer shows in South Africa. Estimated Reach 15 717. Quarter 1@: Negotiate contract. Quarter 3: Show in December 2015. Mango In-Flight Activations This is a partnership with low cost airline Mango, to have on-board branding the aircraft encourage travellers to take more frequent holiday breaks. Total Passengers reached 950 000. Quarter 1: In-flight Activations. Quarter 2-4: On board branding planned for end September 2015 to 31 March 2016. 26 Update/Target Quarter 1: Produced 13 episodes + provide schools prizes in each provinces. R100 million globally - Travel Channel. Quarter 2: Flighting on 20th September ’15. No of people directly mobilised – 300. Quarter 4: Repeated on Travel Channel in March 2016. Implementation Plan 2015/16 …continued Initiative Impact Update/Target Trade Deals Dashboard Over 145,000 unique visitors. This is a SA Tourism platform in partnership with Website Page views 876,520 . numerous product owners and trade, that Top Page viewed: Deals 181,000. provides an opportunity for the them to promote and market their deals on the dashboard. Collaborate with Grading Council to ensure products are graded. This affords the travellers a variety of affordable and accessible deals and packages to choose from to book a holiday trip. This is a service SA Tourism provides to the industry. Quarter 1-2: An average of 5000. In quarter 3 and 4, we plan to further lobby product to register and load new special deals addressing affordability, using existing trade platforms like SATSA workshops etc. Tertiary Activations This is a partnership with Student Travel Association (STA) Travel aimed at implementing student activations at campuses encouraging them to take more frequent holiday trips. This operator is the biggest student association in the country. Quarter 3: Activations planned at Wits and University of Cape Town. 27 Reached a total of 60 000 (Activities include exposure to Digital, social media, in-store collateral, social influencers, Online competitions, staff conferences & PR). Implementation Plan 2015/16 … continued Initiative Impact Muvhango Content Integration Viewership = 4,839,000. Partnership with SABC 2 with Muvhango as it’s the number one soapie in South Africa currently. Update/Target Quarter 1&2: Negotiate with SABC Quarter 4: This will be implemented in the last quarter. Television Partnerships Partnered with Expresso Breakfast Television show as they are currently the second most watched breakfast show on television. Viewership 1,400,000 with a growing Black Quarter1: Negotiate partnership. audience of 46%. Quarter 2: Rolling out for Tourism Month. Digital Platforms We use Facebook, Twitter & Instagram to leverage events, promote deals and partnerships. Reach 232,804 on Facebook. Reach 9424 on Twitter. 28 Quarter 1-4: Ongoing. Strategic Objective 2: Entrench a tourism culture among South Africans • • • • • • Create a provincial partnership plan that details regional media buys enhancing national domestic tourism campaign to lobby alignment and support Amplifying the existing recent provincial content to profile the provinces and highlight their hidden gems on various media platforms. Partnering with the various community platforms and jointly reach all ordinary South Africans through affiliated stokvel groups across all provinces including rural townships. We want to roll out a road trip targeting first time travellers who have never travelled before, to less visited provinces, using national regional and community radio stations as well as influencers like a radio DJ. Enhance The Sho’t Left product offer will continue to support affordable trade offers. We want to highlight the provincial hidden gems and jointly promote the World Heritage Sites and other iconic heritage and cultural attractions nationally, by collaborating with provinces. Slide no. 29 © South African Tourism 2015 Implementation Plan 2015/16 KEY PERFORMANCE INDICATOR BUDGET ALLOCATED MEASUREMENT TARGET: 2015/16 Entrench a Tourism Achieve annual target of 3.1 m holiday trips Culture among South (2014/15) R46 million Africans Initiative Impact Gogo’s on Tour Reach 1500 Senior Citizens SA Tourism will mobilise 1500 South African senior citizens through activations which will assist us entrench culture of travel. Update/Target Quarter 3: This will start in October and end in quarter 4. October is seniors month. PUO Books Non traditional partnership with an enterprise that educates and targets children using a fun travel book to create a culture of travel amongst kids. Spelling Bee Competition Partnership with Mzansi Spelling Bee about a spelling challenge and literacy support program for children ages 9-14 yrs. This will be hosted in Gauteng, North West, Free State, Western Cape and Mpumalanga. Fist print will be 20 000 copies to be distributed in participating schools, public library etc. Reach 12 000 kids Quarter 3: Planned for November 2015. Reach 10 000 kids Reach 100 Youth volunteers 50 Coaches (unemployed youth) 20 000 books 397 travel word list Reached 1,754,000 Adult 18+ Income R3000+ Quarter 1”Negotiated partnership. Quarter 2: Provided travel word list Quarter 3 & 4: Implement Radio Partnerships Partnered with 3 Limpopo based radio stations Thobela FM, Munghana Lonene FM & Phalaphala FM for Tourism Media Launch creating tourism awareness and promoting September as Tourism Month Quarter 2: Executed in this quarter. 30 Implementation Plan 2015/16 … continued Initiative Impact Update/Target Experiential Travel Play This is an inspirational theoretical play incorporating song, dance and poetry to inspire South Africans to change their culture of travel from VFR to leisure. Reach 2000 learners and adults. Quarter 1: Negotiated and secured partnership. Quarter 2: Produce script SA Stories Reach a total of 14,104,980 This is 60 second television commercials highlighting Adults 18+ with income R3000+ real South African stories of various backgrounds who including Black Middle Class have never travelled fo4 holiday purposes. Quarter1: Identified and selected 4 60 second different stories to be produced. Quarter 2: Filming and production of the commercials. Quarter 3: Flight the commercials on SABC 1,2 & 3, eTv and DStv. Print Partnerships Partnered with Independent Media through a series of editorials, strip adverts and opinion pieces to promote Domestic Tourism. Quarter 2: Printed in newspaper in September 31 Reach 809,000 Implementation Plan 2015/16 … continued Initiative Impact Update/Target Womans Day Activation We were given an opportunity to communicate travel messages to the influential women in the North West. Promoted destination AV at the event and activated Mangwanani Spa treating the ladies. Reached 1000 Women Quarter 2: August for Womens Month School Kids Initiative Collaborated with NDT to galvanise 2000 school children nationally to visit SANParks, SANBI and selected World Heritage sites and icons. Reach 2000 kids Quarter 1 7 2: Negotiate and plan initiatives Quarter 3 & 4 DJ Tours Partnership with Micasa Music embarking on a series of road trips within the 9 provinces accompanied by #1st time travellers, Micasa, media as well as influencers. Provincial dates start from 1516 October, 5-6 November, 19-20 November, 10-11 December, 4-5 February, 11-12 February, 18-19 February, 3-4 March, and10-11 March 2016. Reach 45 first time travellers Reach 7,000,000 viewers Reach 2,000,000 social media followers Listenership from various radio stations and viewership from selected lifestyle TV shows, i.e. Selimathunzi, The Real Goboza, VEntertainment, Live Amp and Club 808. Followers from selected various influencers from social media platforms. Quarter 1& 2: Negotiate and secure partnerships Quarter 3 to 4: Implementation roll out 32 Strategic Objective 3: Increase tourism revenue contribution to the economy Amount of revenue: • SA Tourism targets all 5 prioritised segments and will largely be driven by holiday leisure travellers and an additional segment - Business Traveller - with the intention of converting business travellers to leisure. • Drive conversion with all trade partners showing them the profitability of selling domestic travel. • Contribute to increasing tourism revenue. Slide no. 33 © South African Tourism 2015 Implementation Plan 2015/16 KEY PERFORMANCE INDICATOR MEASUREMENT TARGET: 2015/16 Grow the number of Achieve annual spend target of R26.7b which is a domestic travellers 6.9% growth on 2014/15 target (additional). Initiative Impact Intercape Partnership Reach a total 1,000,000 A non traditional partnership with the largest inter city passenger transport service. The aim is to distribute affordable product deals to passengers visiting friends and relatives to consider tourism leisure activities. Activities also include promoting the audio visual on board the bus screens and at Park Station. Tollgate Activations Reach 1,000,000 Partnership with Tollreach implementing tollgate activations encouraging South Africans to take day trips of leisure experiences to the Provinces they are visiting addressing VFR. Petrol Forecourts rolling out in parallel with the tollgate activations. 34 BUDGET ALLOCATED R12 million Update Quarter 1&2: Negotiate Quarter 3: Roll out planned for December 2015 Quarter 2: Negotiated and secured contract Quarter 3: Distribution Implementation Plan 2015/16 … continued Initiative Impact Stokvel Association Expo Partnered with Thompsons Tours at the Stokvelex Expo to exhibit and promote group packages and special deals to stokvel members. Reached 5000 Stokvel members and executives Quarter 2: Exhibited on consisting of predominantly Black Middle Class members 22-23 August 2015 at with disposable income. Walter Sisulu Square in Kliptown. Joint Marketing Agreement with Thompsons Reach 865 000 on digital platforms Tours Reach 100 people through the Fun Bus We partnered with a key tour operator to Reach 15 000 through brochure distribution promote Domestic Tourism by selling affordable travel packages and deals relevant to our segments. They are the biggest operators selling domestic travel in South Africa. Activities, print media on TNW, online & outdoor media billboards & street poles, Fun Bus Specials in support of the events, radio promotions, press trips and SA Specialist programs. 35 Update Quarter 2: Implementation started in August 2015 until end fiscal Implementation Plan 2015/16 … continued Initiative Impact Flightsite Joint Marketing Agreement Reach 70 000 PnP Smarter Newsletter subscribers Partnership with this operator to leverage on Reach 800000 social media followers non traditional partnership with Pick n Pay Reach 20 000 Flightsite members Travel. Activities include online, web banners, PnP Smart Newsletter, Social Media, print ads, Holiday vouchers, in-store radio & PnP Money Counter. 36 Update Quarter 2: Negotiated and secured signed contract Quarter 3: Implementation of planned activities until 31 March 2016 Strategic Objective 4: Enhance efforts aimed at addressing seasonality and equitable geographical spread Increase Geographic Spread (5 prioritised segments): • The plan is to engage in non-traditional partnerships using provincial events as a key catalyst in the even distribution of tourism. • All joint marketing agreements will be secured to have a 360 approach focussing on hidden gems in less visited provinces. Address Seasonality (5 prioritised segments) • Roll-out deal driven tactical campaigns with trade partners that are specifically designed to address the low season from May to September as well as using key events such as Tourism Month campaign. • Use South Africa’s iconic heritage sites to incite free entry to attractions encouraging day trips. Slide no. 37 © South African Tourism 2015 Implementation Plan 2015/16 KEY PERFORMANCE INDICATOR MEASUREMENT TARGET: 2015/16 Grow the number of Achieve 13.8m; additional domestic travellers; domestic travellers which is a 7% growth over 2014/15 BUDGET ALLOCATED R10 million Initiative Impact Joint Marketing Agreement (JMA’s) with VUWA Safari & Tours. This is a partnership with a SMME tour operator based in Limpopo promoting this province as one of the less visited provinces Reached 150 Tourism Stakeholders & Media at Quarter2: Branded fleet promoting the Tourism Month Media Launch. campaign in Limpopo. Hosted 40 national and regional media. Unique travel itineraries PR Value – To be supplied tomorrow from ID showcasing hidden gems in a less visited province, Limpopo. Training 120 community stakeholders in Mopani District in Limpopo. mid September. . Activities are community radio exposure, media hosting, community tourism awareness training, university & mall activations & discounted deals SMME Domestic Workshop Partnership with TEP to educate SMME’s and other product about the importance Domestic Tourism and how to package for the market demands. Reach 300 38 Update/Target Quarter 1: Implemented at Indaba 2015. Unpacking Sho’t Left • • • • • Sho’t Left is SA Tourisms Domestic Marketing Campaign. The campaign line has evolved from “Nothings More Fun Than a Sho’t Left” to “A Million New Experiences Are a Sho’t Left Away” to embrace all South Africans. This evolution was informed by our need to increase frequency of travel within the priority segments and entrenching a culture of travel amongst South Africans. “A Million New Experiences Are A Sho’t Left Away” was derived from digging deeper into the consumer research, establishing the shared truth amongst all segments that, there is always a first time to experience something new. Insights revealed that no matter how much our segments do or do not travel, every weekend provides a new opportunity to do something that they have never done before. Slide no. 39 © South African Tourism 2015 THANK YOU 40