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SA Tourism Updated 2013/2014 Annual Performance Plan and 5 Year Strategic Plan
23 April 2013
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Strategic Plan & Annual Performance Plan - 23 April 2013
Contents Vision, Mission and Mandate Steps of Portfolio Review and Hub Strategy Africa Growth Strategy Domestic Tourism Strategy Strategic Objective Annual Targets, Performance Breakdown of Tourism Budget Strategic Plan & Annual Performance Plan - 23 April 2013
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Updated SAT 2013/14 APP and 5 Year Strategic Plan
Vision and Mission VISION OF SA TOURISM For South Africa (SA) to be the preferred tourist destination in the world, in order to maximise the economic potential of tourism for our country and its people. MISSION OF SA TOURISM To develop and implement a world-class tourism marketing strategy for SA. In pursuance of this SA Tourism will: Implement domestic, regional and international marketing strategies informed by research Implement a business events strategy Implement and maintain a recognisable, credible and globally benchmarked system of quality assurance Facilitate strategic alignment of provinces and industry in support of global marketing of tourism. Facilitate the removal of identified obstacles to tourism growth. Ensure the efficient utilisation of resources to deliver the tourism strategy Updated SAT 2013/14 APP and 5 Year Strategic Plan
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Strategic Plan & Annual Performance Plan - 23 April 2013
Values of SA Tourism Strategic Plan & Annual Performance Plan - 23 April 2013
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SA Tourism’s Mandate set out in the Tourism Act makes it clear that it needs to make choices that will benefit all South Africans Sustainable GDP Growth Sustainable job creation Redistribution and transformation The mandate to SA Tourism is ... Increase in tourist volume Increase in tourist spend Increase length of stay . . . through six key objectives . . . Improve geographic spread Improve seasonality patterns Promote transformation Understand the market Choose the attractive segments Market the Destination Facilitate the removal of identified obstacles Monitor and learn from tourist experience Facilitate the product platform . . . by acting in a focused way to . . . Strategic Plan & Annual Performance Plan - 23 April 2013
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Updated SAT 2013/14 APP and 5YR StratPlan
Contents Vision, Mission and Mandate Steps of Portfolio Review and Hub Strategy Africa Growth Strategy Domestic Tourism Strategy Strategic Objective Annual Targets, Performance Break down of Tourism Budget Updated SAT 2013/14 APP and 5YR StratPlan
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Steps of the Portfolio Review
1st filter 2nd filter 3rd filter 133 117 Exclude Africa and subdivide it into 5 regions Exclude markets population less than 3 million people OR GDP PPP of less than $11 000 Top markets in terms of outbound volume and value 199 countries Exclude SADC (Africa Land markets) from the elimination process (proximity to SA). 42 Salient set From the remaining countries. Excludes countries with less than 150k outbound Travel and Population of less than 3 Million 40 How attractive are these markets in the short term and the long term? 24 The remaining countries including SADC (Africa land markets) qualify for Africa Salient set of countries Core Tactical Investment and Watch-List markets 4th filter Final portfolio Application of cost-benefit evaluation Strategic Plan & Annual Performance Plan - 23 April 2013 *Africa land markets are markets where more than 60% of arrivals to SA arrive by land.
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Strategic Plan & Annual Performance Plan - 23 April 2013
Key things that have changed in the 5th Portfolio Review. 1. We treat the African continent different from the rest of the world. Subdivide the Africa continent into 5 different regions / hubs Countries with outbound less than 150K per year and a population of 3 Million will be filtered out. The average outbound per annum for African countries is 500K , while population is 7 million. The aim is to include as many countries as we can hence the very low threshold. SADC (Africa Land Markets) will automatically qualify because of its proximity. 2. For the rest of the world, we will no longer use the $2 000 GDP filter. Instead we will use GDP PPP of $ per annum as a Filter for affordability. Its similar to a Big Mac Index. 3. We plan to use the hub strategy around the world to increase market penetration, the hub approach will also be applied when markets have been filtered through all the other criteria so that we can combine markets in the portfolio based on proximity, language, trade links eg USA and Canada; Japan and Korea; Netherlands and Belgium. Strategic Plan & Annual Performance Plan - 23 April 2013
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Global Stakeholder Manager
4th Portfolio Review Outcome Implemented effective 01/04/2011 to 30/03/2014 2011 – 2013/4 AFRICA AMERICAS & 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 TACTICAL MARKETS Lesotho Swaziland New 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, Senegal, Tanzania, UAE Malaysia Singapore Country Manager Regional Director GM: Watchlist Global Stakeholder Manager Strategic Plan & Annual Performance Plan - 23 April 2013
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5th Portfolio Review Outcome to be Implemented Effective 01/04/2014 – 30/03/2017
Responsibility Country Manager Africa AMERICAS ASIA & AUSTRALASIA EUROPE & the UK CORE MARKETS Angola, Domestic, Kenya, Mozambique, Nigeria, Tanzania Brazil USA Australia China India France Germany Netherlands UK INVESTMENT MARKETS Botswana, DRC, Ghana, Lesotho, Uganda, Zimbabwe Canada Japan South Korea Italy Russia TACTICAL MARKETS Namibia UAE Zambia Singapore Switzerland WATCH-LIST MARKETS Ethiopia Malawi Swaziland Argentina New Zealand Austria Belgium Denmark Finland Norway Spain Sweden Turkey STRATEGIC IMPORTANCE Egypt, Israel, Morocco, Saudi Arabia, Tunisia, Malaysia Regional Director Stakeholder Manager TRM: Global Strategic Plan & Annual Performance Plan - 23 April 2013
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Proposed Hub Strategy commencing 1 April 2014
Objective of the Hub Approach To link and combine markets of strategic importance as hubs to realise a greater return on investment. Factors considered: Combined outbound travel Proximity Airlinks Culture Language Strategic Plan & Annual Performance Plan - 23 April 2013
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Proposed Hub Approach for Implementation from 2014 to 2017
Americas Asia & Australasia Europe North Americas Latin Americas Asia Pacific Central Europe United Kingdom Germany (Office) - Hub Russia ** USA (Office) - Hub Canada Brazil (Office) - Hub *** Argentina *** Chile China - Office ** - Hub Hong Kong Macau *** Japan South Korea ** United Kingdom (Office) - Hub Ireland Scotland Wales Spain Turkey Africa Switzerland West Africa East Africa Austria Benelux & Scandinavia (**) Australasia Nigeria (Office) - Hub Ghana *** ECOWAS countries Kenya (Office) - Hub Tanzania & Uganda ** *** Ethiopia Netherlands (Office) - Hub Belgium Australia (Office) - Hub New Zealand France (Office) Norway Sweden Denmark Finland Central Africa India France – Stand Alone Angola (Office) – Stand Alone DRC – Hub India (Office) – Stand Alone Italy (Office) Asia Air Link Hub Italy – Stand Alone SADC Malaysia Singapore Botswana Malawi Zimbabwe Lesotho Notes: ** 1 Trade Relations Manager will be appointed – approved by Board (Shanghai, South Korea, Russia, Scandinavia as well as Tanzania and Uganda) *** Future Plans Mozambique Zambia Namibia Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Plan & Annual Performance Plan - 23 April 2013
Contents Vision, Mission and Mandate Steps of Portfolio Review and Hub Strategy Africa Growth Strategy Domestic Tourism Strategy Strategic Objective Annual Targets, Performance Break down of Tourism Budget Strategic Plan & Annual Performance Plan - 23 April 2013
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MTEF Allocation to Aggressively Grow Africa
Objectives to Drive Growth from the Continent to meet NTSS Target Increasing regional awareness of South Africa as a tourism and leisure destination. Increase arrivals and spend from Africa to contribute to GDP and job creation. In SADC, our market penetration is high but opportunities exist to promote repeat travel and to turn shoppers into holiday travel. In Africa Air markets, sizable opportunity exists to attract high value business and leisure travellers. Setting up five marketing offices in key African markets by 2020. Implementation of regional tourism programmes. Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Plan & Annual Performance Plan - 23 April 2013
Contents Vision, Mission and Mandate Steps of Portfolio Review and Hub Strategy Africa Growth Strategy Domestic Tourism Strategy Strategic Objective Annual Targets, Performance Break down of Tourism Budget Strategic Plan & Annual Performance Plan - 23 April 2013
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Domestic Tourism Strategy
Updated SAT 2013/14 APP and 5YR StratPlan
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Strategic Plan & Annual Performance Plan - 23 April 2013
Key Initiatives Complete Brand Audit of current Domestic Tourism Campaign Re-launch new improved strategic Domestic Campaign, aligned with 5 segments Apply digital best practice, integrated into new campaign execution Engage low cost airlines to improve regional distribution Radio DJ Programmes Strategic Plan & Annual Performance Plan - 23 April 2013
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Contents Vision, Mission and Mandate
Steps of Portfolio Review and Hub Strategy Africa Growth Strategy Domestic Tourism Strategy Strategic Objective Annual Targets, Performance Break down of Tourism Budget
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Strategic Outcome Oriented Goals, Goal Statement and Objectives
Increased Contribution of the tourism sector to inclusive economic growth Goal Statement Implement marketing strategies that increase arrivals and increase tourism spend thereby growing tourism’s contribution to SA economy Strategic Objective Objective Statement Baseline Justification NTSS Alignment & Objectives 1 Increase foreign visitor arrivals to SA Implement an international marketing strategy to increase arrivals from (2009) to 15 million (2020) (2009) More foreign visitors will yield more tourism spend resulting to increased GDP contribution 15m 2 Increase domestic tourism in SA Implement the domestic tourism strategy to increase the number of travellers from 13.5 million (2012) to 18 million (2020) 13.5m (2010) Making SA more attractive to South Africans. This will increase tourism spend and GDP contribution 14.6 – 18m travellers 30 – 54m trips 4 – 9m holiday trips 3 Increase tourism trended revenue contribution to the economy Attract tourist that will ensure that the trended revenue contributes to SA economy more than 1.5% growth per year Average spend/arrival R (2010) = Total revenue: R99.6m Attract tourists that will increase trended revenue contribution to GDP R499bn (50-60% domestic contribution) additional jobs Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Outcome Oriented Goals, Goal Statement and Objectives
Increased Contribution of the tourism sector to inclusive economic growth Goal Statement Implement marketing strategies that increase arrivals and increase tourism spend thereby growing tourism’s contribution to SA economy Strategic Objective Objective Statement Baseline Justification NTSS Alignment & Objectives 4 Increase SA brand awareness Positioning as the most preferred Tourism brand by 2015 in order to reaffirm the brand promise 79% (2010) Making SA more attractive to visitors and results in increased spend Aligned 5 Provide quality assurance for tourism products Implement the tourism grading system to increase graded establishments by 10% 4.886 (2011/12) Marketing through word of mouth of the quality experience offered in SA 6 Increase business events Market SA as a meetings destination and provide support for bids None Selling SA as a “Meetings Destination” Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic Objective Key Perform -ance Indicator Audited Outcome/ Actual Performance Estimated Perform-ance Medium Term Targets 2009 / 10 2010 / 11 2011 / 12 2012/13 2013/14 Quarterly Targets 2014/15 2015/16 Increase foreign visitor arrivals to SA # of foreign visitor arrivals (annually) (2009) Q1: Land: Air: 2.2% Land: Air: Tourist arrivals estimate: 2.1% Land: Air: Tourist arrivals estimate: Q2: Land: Air: Q3: Land: Air: Q4: Land: Air: Increase domestic tourism in SA # of domestic travellers 14.6m 13.5m 13.9m 14.5m 15.0m Q1: 4m 15.6m 4% 16.2m 3.8% Q2: 4m Q3: 3m Q4: 4m Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic Objective Key Performance Indicator Audited Outcome/ Actual Performance Estimated Performance Medium Term Targets 2009/10 2010/11 2011/12 2012/13 2013/14 Quarterly Targets 2014/15 2015/16 Increase tourism trended revenue contribution to the economy Amount of Trended revenue R8 100 R8 400 R8 600 R (NITS) R115.4b (TFDS) Q1: R27.7b R119.6b (TFDS) 3.6% R124 b Q2: R26.5 b Q3: R30 b Q4: R31.2b Increase SA brand awareness Brand Awareness 79% 77% N/A 80% Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic Objective Key Performance Indicator Audited Outcome/ Actual Performance Estimated Performance Medium Term Targets 2009/10 2010/11 2011/12 2012/13 2013/14 Quarterly Targets 2014/15 2015/16 Provide quality assurance for tourism products # of graded establishment 8196 5 932 4 886 6 172 6 789 (1 086 New 5 703 renewals) Q1: 1 697 (198 new + 1 499 renewals) 7 468 (1 195 new renewals) 8 215 (1 314 new renewals) Q2: 1 697 (30/09/’13) 231 new renewals Q3: 1 697 (31/12/’13) 271 new & renewals Q4: 1698 (31/03/’14) 386 new & 1 312 Increase business events # of delegates N/A delegates at international conventions delegates at international conventions delegates at international conventions delegates at international conventions Strategic Plan & Annual Performance Plan - 23 April 2013
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Strategic Plan & Annual Performance Plan - 23 April 2013
Number of Graded Establishments - as at end March 2013 Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total Backpacker & Hostelling 15 3 8 9 1 4 41 85 Bed & Breakfast 212 21 193 260 25 37 36 35 360 1 179 Caravan & Camping 19 6 7 11 28 91 Country House 31 24 17 2 72 170 Guest House 237 64 451 150 56 113 110 79 624 1 884 Lodge 53 44 57 81 48 13 45 30 382 Self Catering 117 103 190 80 67 27 908 1 557 Non-Hotel Accommodation Total 684 138 824 692 258 284 2 063 5 348 Hotel Total 23 174 108 32 34 26 183 658 Accommodation Grand Total 741 161 998 800 290 318 238 214 2 246 6 006 MESE Total (Business Tourism) 5 14 18 188 Grand Total Graded Properties 746 182 1 077 807 304 336 251 228 2 263 6 194 Annual Target was Strategic Plan & Annual Performance Plan - 23 April 2013
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Number of Bids Secured for South Africa: 2013 - 2017
Total Bids Total Number of Days Estimated Delegate Numbers Estimated Economic Impact 38 Secured 159 57150 R Bids 2014 Total Bids Total Number of Days Estimated Delegate Numbers Estimated Economic Impact 21 Secured 91 45600 R Strategic Plan & Annual Performance Plan - 23 April 2013
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Number of Bids Secured for South Africa: 2013 - 2017
Total Bids Total Number of Days Estimated Delegate Numbers Estimated Economic Impact 16 Secured 79 48100 R Bids 2016 Total Bids Total Number of Days Estimated Delegate Numbers Estimated Economic Impact 10 Secured 51 40550 R Strategic Plan & Annual Performance Plan - 23 April 2013
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Number of Bids Secured for South Africa: 2013 - 2017
Total Bids Total Number of Days Estimated Delegate Numbers Estimated Economic Impact 2 Secured 9 4500 R Bids 2017 # Of Meetings Estimate Delegate Numbers Estimated Economic Impact 19 46 210 R616 million Updated SAT 2013/14 APP and 5YR StratPlan
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Strategic Plan & Annual Performance Plan - 23 April 2013
Contents Vision, Mission and Mandate Steps of Portfolio Review and Hub Strategy Africa Growth Strategy Domestic Tourism Strategy Strategic Objective Annual Targets, Performance Break down of Tourism Budget Strategic Plan & Annual Performance Plan - 23 April 2013
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Revenue & Expenditure Estimates
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 ENE Estimate Adjust- ment Approved Rand Thousand Audited Budget Estimate* 1 Government grant 698,949 631,685 668,613 753,303 829,973 875,844 880,772 2 TOMSA levies 75,490 104,973 98,169 78,000 87,472 82,000 85,772 3 Indaba & Meetings Africa 38,503 38,803 37,868 40,059 42,464 41,677 43,594 4 Grading fees (note 1) 16,692 6,376 5,284 14,050 15,736 14,618 15,290 5 Sundry revenue 37,109 52,567 19,045 26,668 16,667 27,635 28,906 Total 866,744 834,404 828,979 912,080 992,312 1,041,774 1,054,334 Note 1: Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial Statements for 2010/11 and 2011/12 respectively. Strategic Plan & Annual Performance Plan - 23 April 2013
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Revenue & Expenditure Estimates
Name of the Goal 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 ENE Estimate Adjust- ment Approved in Rand Audited Budget Major Goal 853,391 856,088 863,295 912,080 - 992,312 1,041,774 1,054,334 1 Increase foreign visitor arrivals coming to South Africa 233,013 224,655 257,502 249,495 336,952 353,940 352,321 -International 199,495 252,952 269,940 268,321 - Regional Africa 50,000 84,000 2 Increase domestic tourism in South Africa 40,000 42,400 43,672 44,000 3 Increase tourism trended revenue contribution to the economy 292,488 296,953 290,367 271,711 4 Marketing Increase SA Brand Awareness 292,487 271,712 206,828 219,238 232,392 5 Provide quality assurance for tourism products 35,403 37,527 25,059 39,689 37,115 37,377 39,300 6 Increase business events 39,473 32,065 33,607 34,000 Total 857,809 Strategic Plan & Annual Performance Plan - 23 April 2013
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SA Tourism Budget (Breakdown)
Strategic Plan & Annual Performance Plan - 23 April 2013
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Budget for Africa Growth Strategy
BREAKDOWN OF PROJECT AFRICA GROWTH 2013/14 2012/13 CONTRIBUTION TO ANGOLA OFFICE BUDGET CONTRIBUTION TO NIGERIA OFFICE BUDGET CONTRIBUTION TO KENYA OFFICE BUDGET CONTRIBUTION TO OFFICE OPENING EXPENDITURE KENYA 1 MAR ‘14 CONTRIBUTION TO OFFICE OPENING EXPENDITURE NIGERIA 1 MAR ‘13 CONTRIBUTION TO AFRICA HEAD OFFICE BUDGET DRC BOTSWANA, ZIMBABWE AND ZAMBIA MOZAMBIQUE AND MALAWI LESOTHO, SWAZILAND AND NAMIBIA PROMOTION OF DOMESTIC EVENTS IN NEIGHBOURING SADC CONTRIBUTION TOWARDS AFRICAN RESEARCH CONTRIBUTION TOWARDS AFRICA E-MARKETING INCLUDING SOCIAL MEDIA AND MOBI AFRICA SHARE OF ADVERTISING AGENCY FEES CONTRIBUTION TOWARDS AFRICA CONTINENT MEDIA - Strategic Plan & Annual Performance Plan - 23 April 2013
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Other Resource Considerations
Expected expenditure growth at CPIX except for the Marketing functional units where emerging economies and domestic market will expend more. Staff increase expected from 189 to 194. Estimated CAPEX of R21.58 (2012/13) and R18.75m (2013/14) in respect of opening of new offices – Brazil, Nigeria, Angola and Kenya estimated. Estimated CAPEX of R5m (2012/13) and R6.29m (2013/14) in respect of HQ Office extension for Phase 1 and 2 respectively. Estimated R13.08m (2012/13) and R10.6m (2013/14) for software, hardware, vehicles and lease improvements. Strategic Plan & Annual Performance Plan - 23 April 2013
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Thank You
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