1. Tourism in Africa – Challenges & Opportunities Presentation to the International and National Tourism and Hospitality Colloquium 16 th October 2007 David Frost WTTC Advisor - Africa

2. Current State of Tourism in Africa Tourism, with its low barriers to entry and ability to create jobs quickly and in rural areas is often touted as a panacea sector. Intuitively tourism could and should be seized on by governments in Africa as priority sector that can deliver real returns. This is especially true given the natural resource endowments many African countries posses. Indeed, when one examines the overall economic growth strategies of many African countries, tourism is right up there, identified as a priority sector. Why then does Africa continue to attract such a low proportion of international tourism. The answer lies squarely with the lack of real investment by African governments in developing and marketing their countries as tourism destinations. Moreover, where best practice has been established and realised, this is not widely communicated and learned from. Is it then possible, against this backdrop, to develop workable growth strategies that will increase the competitiveness of various African countries and drive additional tourism receipts? Clearly South Africa, Egypt and to a lesser degree Kenya, stand out as examples where significant investments in destination positioning have occurred. There have, however, been some questions raised recently whether, given the massive budget of South African Tourism, the performance in key international markets, especially compared to other more paltry funded destinations, is adequate. Without seeking to engage in a critique of SA Tourism and its current strategies, the presentation will focus on a smaller African country, with a budget that is only 5% of South Africa’s – namely Namibia. By focusing and implementing a well thought through growth strategy, the presentation will show that smaller African countries can indeed take quantum leaps in increasing tourism receipts. The presentation will unpack some of the tactical as well as strategic initiatives that have resulted in a well above average performance. In conclusion, based on the Namibian experience, suggestions for positioning tourism to access a portion of the vast developmental largesse available to Africa will be put forward.

3. World 735 Europe 377.6 Africa in Perspective Source: UNWTO International Tourism Receipts, US$ billion 2006 Americas 153.4 Asia & Pacific 153.4 Middle East 26.8 Africa 24.2 Northern Africa 8.5 Subsaharan Africa 15.7 3.2 %

4. World 842 Europe 456.9 Africa in Perspective Source: UNWTO International Tourist Arrivals (million) 2006 Americas 136 Asia & Pacific 167.4 Middle East 40.7 Africa 40.9 Northern Africa 14.9 Subsaharan Africa 26 4.9 %

5. Africa in Perspective Source: UNWTO International Tourism Receipts per arrival (US$) 2006

6. Africa in Perspective Source: UNWTO International Tourist Arrivals 2005 – 2006 % change

7. Current State of Tourism in Africa Government policy Tourism promotion agency budgets

8. Selected National Tourism Board Budgets 2005 R40mBotswana R7mMozambique R7mZambia R25mNamibia R553mSouth Africa R340mTunisia R145mGuatemala R190mIndia R121mPeru R364mNew Zealand R462mCanada R893mAustralia R19mTanzania

9. Current State of Tourism in Africa Government policy Tourism promotion agency budgets Lots of activity – but no coherent growth plans No best practice learning Boutique operators Air access Infrastructure No co-ordination (RESTOSA ??)

10. Opportunities Commodities  - Tourism  Access to markets key Can turnaround – Eg. Namibia –Growth strategy

11. Total International Leisure 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 JanFebMarAprMayJunJulAugSepOctNovDec 2001 2002 2003

12. Key Segments Leisure 142 755 VFR / Business 22 581 Namibia – Performance 2003 Land Arrivals 173 141 Air Arrivals 48 868 Leisure 103 482 VFR / Business 118 527 South Africa 222 009 Land Arrivals 216 574 Air Arrivals 6 178 Angola 222 752 Rest of Africa 81 124 Africa 525 885 Germany 58 036 Other Europe 83 798 Other Countries 27 502 Overseas 165 336 Total Tourist Arrivals 695 221

13. International Arrivals – Market Share 2006 Germany UK ItalyFrance Scandinavia Austria Netherlands Switzerland Spain Portugal Belgium Other Europe Australia USA Other Countries 33.3% 12.1% 4.6% 5.9% 3.6% 2.6% 6.0% 4.4% 2.2% 1.8% 3.3% 2.3% 8.0% 8.2% 1.9%

14. The Marketing Strategy Tactical Strategic Organisational / Institutional

15. Target Markets Primary Markets German Speaking Europe UK & Ireland South Africa Angola Primary Markets German Speaking Europe UK & Ireland South Africa Angola Secondary Markets France Benelux USA Italy Secondary Markets France Benelux USA Italy

16. Public Relations Media Market Mapping Key Account management Co-operative marketing The Marketing Strategy Increased Arrivals Trade Growth Consumer Demand

17. Co-op Marketing – Delivery 2004 – 2006 spent NAD 9,3 million Calculated in-country injection – NAD 431 million Extra 14,000 tourists

18. Marketing Strategy – Strategic Branding

19. The Namibia Brand “It’s like a different planet here on earth” “Namibia demands a lot, but gives you a lot in return” “I like the idea of going somewhere before the rest of the world has discovered it”

20. The Namibia Brand “It’s as if God has finished and you’re the first person there” “It’s like where the world ends” “The animals came right up to me and surrounded me”

21. The Namibia Brand “The quiet that surrounds you lets you look inside yourself somehow” “It’s all about the vastness and what it does to you as a person” “When you look at the Namibian landscape, you can see the hand of God.”

22. The Namibia Brand “The openness, silence, vastness, distances, stars – it all makes you feel fulfilled.” “Offers real tranquillity, here you can truly get away from people” “There are still places in Namibia that you feel are yet to be discovered” “Made me feel small, insignificant – all the worries at home paled into nothing”

23. The Marketing Strategy Key Strategic Elements BrandingProduct AuditMeasurement ResearchTransformation

24. Implementation Good representation Bolstered good offices Shut down inefficient offices Great PR

25. 0 5,000 10,000 15,000 20,000 25,000 JanFebMarAprMayJunJulAugSepOctNovDec International Arrivals – Market Share 2006 2001 2005 2006

26. International Arrivals – Market Share 2006 3.6 3.9 4.2 4.9 11.8 5.9 7.3 14.9 5.6 9.1 7.2 05101520 South Africa % ChangeNamibia % Change 11.4 17.9 9.9 20.5 15.5 6.7 5.4 27.9 14.1 36.3 16.2 010203040 Germany UK Italy France Scandinavia Switzerland Netherlands Spain Total Europe USA Total non-Africa

27. Opportunities Commodities  - Tourism  Access to markets key Can turnaround – Eg. Namibia –Growth strategy MCC – Tourism request US$95 m US$14 m - marketing

28. Way Forward Engage both governments & private sector within Africa Work towards  tourism’s role in development agenda SAT – Botswana Sept 2007 – www.wttc.org Share best practice Get going with “how” But – this has to come from Africans Global Travel & Tourism Summit Dubai 21 st – 23 rd April 2008 2009 – South Africa ??