1. CRUISE LINER STUDY – PHASE II ECONOMIC BENEFITS NATIONALLY AND REGIONALLY FIRST STEERING COMMITTEE MEETING OF CRUISE LINER TOURISM 24 MARCH, 2009

2. RECOMMENDATIONS MOVING FORWARD  Software. Programs and marketing efforts developed to ensure product quality, brand recognition, communication efforts and others.  Operations. Functional enhancements that allow for improved cruise operations.  Hardware. Strategies and action items to ensure that appropriate capital improvements are planned and developed to meet anticipated cruise industry throughput and facilities needs.

3. KEY COMPONENTS OF PHASE II 1.Update market analysis to reflect notable changes in global and regional market fundamentals 2.Broadly address the strengths and weaknesses of regional actors capable of directly and indirectly welcoming cruise and related tourism activities 3.Assess the economic impacts associated with current and projected cruise passenger levels for the broader Southern African region and the local cities and provinces directly involved 4.Building from our foundation of work, update the overall strategic approach to growing of South Africa’s cruise and maritime tourism business

4. 1.0 MARKET ANALYSIS UPDATE 1.1 Pre-Commencement Project Tasks 1.2 Project Kick-Off Workshop –Confirmation of project goals, objectives and milestones –Review work conducted under the 2008 study and notable changes within a global, regional and local context of importance –Discussion of key sources of data at a regional level –Confirmation of the key regional actors (i.e., ports, destinations, landside attractions) for cruise and maritime tourism that need to be considered as part of this effort –Discussion of the final project deliverable to ensure its usefulness within the regional context of the project

5. 1.0 MARKET ANALYSIS UPDATE 1.3 Market Analysis Update –What’s changed and how do these changes impact market analysis and assessment of the industry? Retreat of fuel costs Global recession Elevated piracy concerns –What influences (if any) a broader understanding and focus of cruise and maritime tourism regional actors have on the market outlook prepared in 2008? –Effort is not a wholesale recast of the work prepared in 2008

6. 2.0 SWOT OF REGIONAL ACTORS 2.1 Selection of Key Regional Actors for Assessment –Regional actors includes ports, destinations, landside attractions 2.2 Strengths, Weaknesses, Opportunities, Threats (SWOT) Assessment –Primary and secondary role of the regional actor within the context of cruise and maritime tourism –Ability to attract and accommodate international and regional cruise operators and other maritime tourism industries –Key areas of investment and improvement –Others to be identified

7. 3.0 ASSESSMENT OF ECONOMIC IMPACTS 3.1 Assembly of Economic Data and Model Inputs 3.2 Economic Model(s) Development –Model to cover impacts at a national level and for up to four destinations 3.3 Economic Assessment –Economic cost benefit analysis; Output = NPV, BCR, IRR –Macroeconomic impact analysis; Output = Contribution to GDP, GGP, direct and indict job creation, foreign exchange generation, tax generation 3.4 Economic Assessment Case Studies –Assembly of case study information to put into context measured economic impacts

8. 4.0 FINAL REPORT / FINAL WORK SESSION 4.1 Summary Report Preparation 4.2 Report Presentation and Brainstorming Workshop –Present and discussion of results of the 2009 South Africa Cruise and Maritime Tourism effort –Facilitated discussion and prioritization of marketing efforts –Identification of key cruise line contacts and groups to focus resources and marketing efforts over the short term

9. 5.0 (Option) SPECIFIC SITE IMPROVEMENTS  As an option, the project team can work with specific regional actors in a collaborative session(s) to illustrate suggested facilities improvements at client specified locations  Design effort would be limited to establishing initial project vision, listing / illustrations of key improvements and assemblage of a summary vision document

10. SUGGESTED SCHEDULE 1 2 Steering Committee Workshop (Suggested 1 April) Steering Committee Workshop (Suggested 20 May ) = Team in South Africa Final Submission with Comments (Before 31 May)

11. SUGGESTED FEE BASIS

12. CRUISE LINER STUDY – PHASE II ECONOMIC BENEFITS NATIONALLY AND REGIONALLY FIRST STEERING COMMITTEE MEETING OF CRUISE LINER TOURISM 24 MARCH, 2009