1. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Presentation by Phindi Kema

2. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Is horse racing a hobby or a sport? It is both: From a government perspective: It is a national industry It is a major employer It is regulated It is forms part of an international community of major sporting events that attract international owners, tourism and is a facilitator of nation building and pride From a historical perspective, stakeholders are divided by race and economic capacity The breeders, owners, trainers and jockeys are mainly white The race goers and grooms are black Race courses have been provided by local government authorities From an owner perspective, it is a business It generates an attractive return on investment IN DEVELOPED COUNTRIES, HORSE RACING IS A MAJOR SPORT AT THE LEVEL OF SOCCER, CRICKET, RUGBY AND GOLF, etc

3. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Best practice examples: UK, Australia, Hong Kong Has generated more than £1 billion in tax revenue over 5 years Has seen capital investment of more than £700 million Employs more than 100 000 people directly and indirectly No of people attending horse racing in 2008 in the UK: 5,7 million Horse racing is now second biggest sport in terms of annual attendance, second to soccer Stakeholders: Racegoers, Owners, Trainers, Breeders, Betting operators, Employees, Broadcasting companies (Local and international), International horse racing community, Government (National and local)

4. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Best practice examples: UK, Australia, Hong Kong No of horse racing tracks: UK: 60 Australia: More than 300 Hong Kong: More than 10 Components of economic impact of horse racing CORE INDUSTRYOTHER DIRECT IMPACTS - RACEDAYINDIRECT IMPACT - MULTIPLIERS

5. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Best practice examples: UK, Australia, Hong Kong Direct, indirect and associated employment: British horse racing example 100 000 people employed

6. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Best practice examples: UK, Australia, Hong Kong The racing industry capital expenditure UK in the 5 years to 2008

7. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee The business case for horse racing: Economic impact Race courses Racegoers admission fees, catering spend, Corporate attendees Sponsors and advertisers, on course betting non raceday attendees, conferences, banquets, hotels Media: Broadcaster payments, overseas television broadcast Owners: Ongoing expenditure on horses and trainers, capital cost of buying horses Breeders: Stud farms, commission for auctioneers of horses Off course betting: Betting industry revenues and tax collection Off course expenditure: Accommodation, food and drinks, etc Secondary expenditure: Business to business transactions, consumer expenditure http://racingandsports.tv/viewVideo.asp?vid=1L9&type=0

8. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Racing’s position within the sports market: UK Top four attended sporting events in the UK in 2008: Tennis, Horseracing, Motorsport, Golf,

9. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee The importance of regulation in horse racing: Fair competition Entry of new players, local and international Structural change of racial mix, i.e. entry of HDI into ownership, training, betting operations, etc Raising the level of horse racing in South Africa to international best in class National horse racing authority, like SARB and SAFA, to have accountability to Minister of Sports Promotion and development of the sport in all provinces and creation of employment

10. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee The state of horse racing in South Africa Horse racing corporatization Vertical sector with a dominant monopoly Horse racing is deteriorating because of old ways of doing things Race courses, betting operators are all in the same private hands South Africa does not have centre stage status in horse racing unlike Australia, UK, Hung Kong, Dubai, USA, France, etc Very long ago, horse racing was a hobby for the wealthy, now it is a national sport that creates employment, attracts large sponsorships and prizes, and promotes tourism Horse racing in South Africa can be the anchor for the industry in Africa and take advantage of weather and time zone differences with the USA, Europe and Australasia

11. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee The state of horse racing in South Africa compared to other countries

12. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Recommendations: Enquiry into horse racing industry Resolve existing monopoly in industry Horse racing authority to fall under Ministry of Sport Reconstitute the horse racing authority Ministerial cluster for horse racing to be set up and map strategy together with stake holders how to raise the industry to an international standard and become the hub for Africa

13. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee Questions and Answers:

14. Click to edit Master subtitle style 11/25/11 Horse Racing Industry Submission to the Trade & Industry Parliamentary Portfolio Committee THANK YOU