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Executive Summary SA TOURISM’S STRATEGIC PLAN FOR THE 5-YEAR PERIOD 2012/13 – 2016/17 & HIGH-LEVEL ANNUAL PERFORMANCE PLAN & BUDGET FOR 2012/13. For presentation to Portfolio Committee on 13 March 2012 CEO: Thulani Nzima. Our Mandate.

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for presentation to portfolio committee on 13 march 2012 ceo thulani nzima

Executive SummarySA TOURISM’S STRATEGIC PLAN FOR THE 5-YEAR PERIOD 2012/13 – 2016/17 & HIGH-LEVEL ANNUAL PERFORMANCE PLAN & BUDGET FOR 2012/13

For presentation to Portfolio Committee on 13 March 2012

CEO: Thulani Nzima

sa tourism mandate key business objectives and strategies effective 1 april 2011

Invest only in selected markets to deliver volume and value

Convince consumers that SA can be trusted to deliver memorable experiences

Engage Stakeholders to deliver quality visitor experience that re-affirm the brand promise

Work the distribution channel to promote SA

Energise and empower the organisation to innovate and achieve excellence

SA Tourism mandate, key business objectives and strategies effective 1 April 2011

Possible Tourism sector outcome which SAT will need to deliver against

Create a thriving tourism sector by making South Africa a destination of choice

Make the SA brand a Global Player in portfolio markets which will grow tourism’s trended revenue to the economy by 1.5% p.a

SAT outcome

Strategies to deliver outcome

linking government priorities to sa tourism priorities
Linking Government priorities to SA Tourism priorities
  • Government has set five key priorities for the next five years including the creation of decent work and sustainable livelihoods, education, health, rural development including food security and land reform and the fight against crime and corruption.
  • These five priorities has been converted into Government’s Medium-Term Strategic Framework which highlights 10 priorities and 12 outcomes over the MTEF period. Tourism falls under the Economic Sectors and Employment Cluster, one of the 5 Government clusters and its actions appear under Outcome 4: “Decent employment through inclusive economic growth”.
ntss targets
NTSS – Targets
  • Arrivals –15 million foreign arrivals by 2020.
  • Domestic tourists to grow by 3.4m from 14.6m in 2009 to 18m by 2020 and total trips to grow from 30m to 54m, with holiday trips increasing by 5m.
  • GDP – Increase tourism’s contribution to the GDP from an estimated R189.4 billion in 2009 to R499 billion by 2020.
  • Contribution of domestic tourism to GDP to grow to 60% from 52% in 2009.
  • Job creation – the tourism sector is committed to consolidating its efforts to create jobs and aims to create 225 000 jobs by 2020 – 177 000 in the tourism sector and 48 000 through direct government investment.
slide9

The review adopts a “fresh eyes” approach by considering all the countries in the world, and filtering them based on a set of objective attractiveness criteria

Approach to Portfolio Review

Attractiveness Criteria

2nd Filter

1st Filter

Consideration Set

Salient Set

4th Filter

CORE, TACTICAL, INVESTMENT & WATCHLIST MARKETS

COST-BENEFIT EVALUATION & UNDERSTANDING OF MARKETING ISSUES

Attractive Markets

Qualitative process involving a panel discussion

key steps of the portfolio review process
Key steps of the Portfolio Review Process

2nd filter

3rd filter

1st filter

Exclude sub-Saharan Africa

Exclude markets of less than 3 million people or GDP per capita is less than US$2,000

Top 50 markets in terms of outbound volume and value

Exclude markets with less than 4 million people living in urban areas and less than 20,000 arrivals p.a. or no airlift

Markets with less than 20,000 arrivals p.a. in 2008 but with airlift (strategic hubs)

Exclude markets with less than 20,000 arrivals p.a. or no airlift

Include all Africa land markets*

Top sub-Saharan Africa markets PLUS Africa land markets

Salient set

4th filter

Final portfolio

Core, tactical, investment and watch-list markets

Application of cost-benefit evaluation

How attractive are these markets in the short term and the long term?

*Africa land markets are markets where more than 60% of arrivals to SA arrive by land.

slide11
The results of the evaluation will illustrate the suggested core, tactical, investment and watch-list markets within each region

Results of Portfolio Review

Tactical markets are those which should be considered for specific, tactical opportunities

Core markets are those which present the greatest opportunity

  • Less Attractive But Easier
  • Tactical Markets
    • Markets where there are particular opportunities, i.e. “low hanging fruit”
    • 15% of organisation’s effort deployed against these markets
  • Attractive And Easier
  • Core Markets
    • Markets that deliver the “bread & butter”
    • 60% of organisation’s effort deployed against these markets
    • Best capabilities allocated to these markets

Easier to Target

  • Less Attractive And Difficult
  • Watch-list Markets
    • Markets that are on the radar
    • Activity in these markets will only occur if there is spare capacity in the organisation
    • 5% of organisation’s effort deployed against these markets
  • Attractive But Difficult
  • Investment Markets
    • Invest in these markets ahead of return, i.e. invest for the future
    • 20% of organisation’s effort deployed against these markets

Investment markets are those where some investment is made for returns in future

Watch-list markets need to be watched for value segments

Attractiveness of Market

slide12

The 4th Portfolio Review process will end March 2014; the 5th Portfolio Review will take place during July 2012 and fully implemented by 01/04/2014

2002 – 2004

2005 – 2007

2008 – 2010

2011-2014

4th Portfolio

Country Manager

Regional Director

Responsibility

Stakeholder Manager

Global Channel Manager

*Indicates Business Tourism Hubs

slide13

Importance of Africa to meet NTSS targets

Africa delivers the highest number of tourist arrivals

  • Africa delivers more than 70% of all arrivals every year
  • Tourist arrivals from Africa grew at ~10.3% annually from 2003–2010. Africa’s contribution to the total tourist arrivals to South Africa increased from 68.1% in 2003 to 77.0% in 2010

Africa is growing

  • Africa witnessed a remarkable growth in GDP and GDP per Capita (18.9% and 16.3%, respectively), from 2003–2008
  • Tourist arrivals from Africa to South Africa increased at a much faster rate of 10.3%, compared to the growth of 3.3% in tourist arrivals from rest of the world, during 2003–2010
  • The value that Africa brings to the South African economy goes beyond tourism (i.e., hotels and attractions), and has major benefits for the whole economy (especially in manufacturing and other downstream industries)
  • Africa is South Africa’s natural hinterland
    • Accessibility of South Africa to a significant number of travellers, particularly those in Southern African countries, and their familiarity with the country, are the major benefits
    • South Africa captures more than 50% of total outbound departures from African countries

Africa is accessible

  • South Africa has the potential to further exploit its proximity and strength as a choice destination in the African market, which is still emerging from purpose-based travel into a true leisure-driven tourism market
  • South Africa receives a relatively small number of travellers from countries other than African countries, which implies that there is tremendous opportunity for growth

Africa still represents untapped potential

Source: Grail Research & Monitor Analysis

our strategies to deliver on the outcome

Invest only in selected markets to deliver volume and value

Convince consumers that SA can be trusted to deliver memorable experiences

Engage Stakeholders to deliver quality visitor experience that re-affirm the brand promise

Work the distribution channel to promote SA

Energise and empower the organisation to innovate and achieve excellence

Our Strategies to deliver on the outcome
slide15
These 5 strategies have been converted to 5 Programmes to comply with the National Treasury Annual Resource Plan template:

Programme 1: International Portfolio Marketing (purpose:to increase international arrivals focusing on Africa growth in particular & spend by marketing SA internationally and aggressively grow Africa)

Programme 2: Head Office marketing (purpose: provision of support & toolkits for international regions to promote global visibility of SA brand & to aggressively promote a culture of domestic tourism)

Programme 3: Grading of tourism products (purpose: promote word-of-mouth international and domestic marketing, following quality delivery of experiences to visiting international and domestic tourists, through the grading of tourism establishments using global best-practice grading systems and business processes)

Programme 4: Head Office financial support (purpose: provision of real-time accurate financial information and business processes to ensure quality execution of approved Business Plans & Budgets while complying with policies and procedures (which will maximise our chances to maintain clean audit reports)

Programme 5: Head Office administrative support (purpose: 1.provision of human resources, systems and structures to support execution of all approved Business Plans and Budgets 2. To fully implement the Convention Bureau & achieve its KPA’s)

six strategic orientated goals
Six Strategic Orientated Goals
  • Annual arrivals to South Africa increase to 12 068 030 by 2015 (NTSS target) and 15 000 000 by 2020 while the number of domestic tourists per annum should increase to 16 million by 2015;
  • The average spend per arrival in South Africa is R 12 536 per person during the 2012 calendar year;
  • Become the most preferred Tourism Brand by obtaining an average positive brand awareness percentage of 79% in all the markets where Brand Tracking is done;
  • To deliver on the quality experience expected by the international and domestic tourist by having at least graded 6 172 tourism products in South Africa by 31 March 2013;
  • To continuously improve internal policies, procedures and business processes so that it supports the spending of no less than 98% or no more than 102% of its consolidated annual approved budget as well as the achievement of clean annual audit reports
  • To grow South Africa’s business events industry, and continuously improve the culture within the organisation by living the SAT values and thereby reduce its average annual turnover rate to no more than 10% while achieving an average score of at least 3,3 in the Deloitte Best-Company-to-Work-for survey.
slide18

Strategic Outcome Oriented Goal 1: To market South Africa in such a way that annual arrivals to South Africa increase to 12 068 030 by 2015 and 15 000 000 by 2020

Historic arrival targets and actual arrivals were as follows:

  • 2009 actual arrivals: 9 933 966 (3,6% increase over 2008 actual)
  • 2010 actual arrivals: 11 395 700 (14,7% increase over 2009 actual)
  • 2011 calendar year arrival target: 11 504 920 ( 0,96% increase over 2010 actual)
  • 2012 calendar year arrival target: 11 922 201 (Tourist: 8 460 226) ( 3,6% increase in arrivals over 2011 target)
  • 2013 calendar year arrival target: 12 343 315 ( 3,5% increase over 2012 target)
  • 2014 calendar year arrival target: 12 683 472 ( 2,7% increase over 2013 target)
  • At its September 2011 Board meeting the Board agreed that SAT must include tourist targets as well. Not having adequate data points (every 5 years for 1 year projected) to set these tourist targets, the following must be noted:
  •  The tourist arrival target is estimated using the annual average incidence of tourist arrivals within the visitor arrivals for 2009 and 2010.
  •  This method of estimation is not reliable as the number of tourist arriving each month is variable.
  •  The data on tourist arrivals is an estimation only and not targets.
objectives to drive growth from the continent to meet ntss targets
Objectives to drive growth from the continent to meet NTSS targets
  • 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 traveller.
  • Setting up five marketing offices in key African markets by 2020.
  • Implementation of regional tourism programmes.
overview air markets
Overview – Air markets
  • In addition to developing each market individually, we will look at growing arrivals in key regional
  • markets adjacent to Kenya and Nigeria, with spillover effects from activities in the DRC

East African Regional Strategy

West African Quick Win Strategy

Central African Spillover Effect

  • Kenya is a relatively small market on a standalone basis, with only ~32k arrivals in 2010
  • Serving additional EAC countries, such as Uganda and Tanzania would be beneficial
    • Combined arrivals of over 70k
    • Similar consumers
    • Good regional integration and growth
  • The Nigerian market is a large, and fast growing market
  • Serving Ghana adds ~20k arrivals to the Nigerian market
  • Arrivals from Ghana are growing fast
  • Combined arrivals from Ghana and Nigeria represent ~81% of ECOWAS’s arrivals or ~70k arrivals
  • The DRC market remains an investment market
  • Its high tourism potential, however, warrants increased investment
  • Due to the proximity and high connectivity between the DRC and Congo-Brazaville, any activities in the DRC will have spillover effects into Congo-Brazaville

Summary of Opportunity

Key Elements of Approach

  • Our strategy in West Africa will include showing, in the short term, our presence in Ghana by developing critical trade and media partnerships and making very targeted investments in the market
  • In addition, we will build our understanding of consumers and trade in Ghana through targeted research
  • Finally, we will continue to monitor the market’s growth and adapt our investment decisions in the long term
  • Limited additional effort is required in the short to medium term as effects will automatically spill over with no additional effort
  • We will, however, continue to monitor Congo-Brazaville and other surrounding Central African states to leverage opportunities as they arise
  • Large regional market potential suggests the need to establish presence in the market rapidly
  • This presence will start immediately by building key relationships (e.g., media, trade, etc.) to be leveraged for winning in these markets
  • In the short term, we will start developing a fully-fledged regional strategy for the EAC
implementation timeline
Implementation Timeline

Year 1

Years 2-3

Years 4-5

Angola

Office set-up

Review office set up

Activity planning and development of baseline to monitor

Implementation of activities and monitoring the market

Review of activities

DRC

Development of baseline to monitor

Market monitoring

Market preparation

Develop trade environment

Start to develop consumer-facing communication

Kenya

Office set-up

Review office set up

Activity planning and development of baseline to monitor

Implementation of activities and monitoring the market

Review of activities

Quick Wins in Uganda, Tanzania

Develop and Implement Regional Strategy in the EAC

Office set-up

Review office set up

Nigeria

Activity planning and development of baseline to monitor

Implementation of activities and monitoring the market

Review of activities

Capture Quick Wins in Ghana

Develop and Implement Ghana Strategy

Source: Grail Research & Monitor Analysis

ntss objectives related to domestic tourism
NTSS Objectives Related to Domestic Tourism
  • Keeping in mind the targets set out in the NTSS, it is important to identify the most attractive segments on which to focus activation efforts

Note: 1The classification of the consumer-level job required is a subjective evaluation

Source: Monitor/ Grail Analysis; National Tourism Sector Strategy, February 2011, Department of Tourism, Republic of South Africa

new domestic strategy formulation
New Domestic Strategy Formulation

Project Scope

  • Understand the current situation of the domestic tourism market in terms of:
    • Macro-environment analysis
    • Sector overview
  • Research and segment the South African domestic traveller population based on:
    • Needs and attitudes related to travel
    • Travel behaviour, buying process, etc.
  • Develop high-level marketing strategies for the prioritised segments by:
    • Understanding the impact of economic conditions on travel behaviour
    • Developing high level activation strategies to target prioritised segments
    • Creating message themes towards transforming tourism culture in traveller segments

Project Objectives

To segment South African domestic travellers into groups that share similar needs and behaviours, and provide recommendations around the marketing strategy to engage and increase participation of these segments in domestic tourism in South Africa. This would enable SAT to meet its key objectives around tourism culture transformation and growth

possible market
Possible Market
  • The study looked at South African adults earning more than R3,000 per month. Leaving a possible market of ~8.2 Mn people to target

50 Mn1

(100% of total)

Total South African population

30.3 Mn

(60.6% of total)

Adult population over the age of 18 years

8.2Mn2

(16.4% of total)

Adults earning more than R3,000 per month (personal income)

  • A previous SAT study has shown that...

The target market represents 8.2Mn South Africans, all over the age of 18 and earning a personal monthly income of R3,000 or more

Note: 1 2010 figures; As per UNISA, 2~22 Mn people in SA earned less than ZAR 3,000-3,500 pm in 2010

Source: Monitor/ Grail Analysis; SAT Domestic Surveys

segmenting the possible market
Segmenting the possible market
  • Using the action segmentation methodology, the available market is grouped into 14 distinct segments based on similarities in travel behaviour and preferences

Seasoned Leisure Seekers

Spontaneous Budget Explorers

New Horizon Families

High-Life Enthusiasts

Older High Income

Low Income Singles & Couples

Low Income Black Singles

Business Travellers

Established Holiday Families

Low Income Families

Well-to-Do Mzansi Families

Black Single-Parent Families

Up and Coming Black Singles

Older Middle Income Whites

understanding more about the most attractive segments overview of prioritised segments
Understanding More about the Most Attractive SegmentsOverview of Prioritised Segments

Spontaneous Budget Explorers

New Horizon Families

High-Life Enthusiasts

Seasoned Leisure Seekers

Well-to-Do Mzansi Families

  • 18-24
  • All races
  • Income range: R5,001+
  • 35+
  • Black, Coloured and Indian
  • Income range: R5,001- R10,000
  • 25-45
  • Black, Coloured and Indian
  • Income range: R10,001+
  • 25-45
  • White
  • Income range: R5,001+
  • 18-45
  • Black, Coloured and Indian
  • Income range: R10,001+
  • Avg. Length of Stay: 5.4 nights
  • Trips/year: 3
  • Avg. Spend: R1,252.00
  • Avg. Length of Stay: 5.2 nights
  • Trips/year: 3.1
  • Avg. Spend: R1,160.50
  • Avg. Length of Stay: 4.5 nights
  • Trips/year: 3.1
  • Avg. Spend: R1,265.54
  • Avg. Length of Stay: 7.7 nights
  • Trips/year: 4.4
  • Avg. Spend: R1,853.40
  • Avg. Length of Stay: 5.6 nights
  • Trips/year: 3.2
  • Avg. Spend: R1,687.80
  • 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

integrated marketing activation
Integrated Marketing Activation

The umbrella strategy combines aspects from all segments to create awareness and positivity around tourism for all South Africans

  • Value Proposition
  • Products

Spontaneous Budget Explorers

  • Have fun in new/ different surroundings, whether with existing friends or meeting new friends along the way
  • Lots of activities with friends without being prescriptive
  • Spend quality family time and broaden the family’s horizons, while being rewarded for hard work
  • Accessible and informative family holidays

New Horizon Families

High-Life Enthusiasts

  • Domestic travel is the quickest and easiest way to enjoy invaluable and enviable world-class experiences
  • Glamorous and comfortable holidays

Seasoned Leisure Seekers

  • South Africa has so many different places and ways to escape, relax and spend quality time with loved ones
  • Explore hidden cultural, culinary and landscape gems

Well-to-Do Mzansi Families

  • Break away from daily pressures, whether relaxing with family or having good times with friends
  • Hassle free and comfortable getaways
  • Umbrella Strategy
  • Travelling in South Africa is not only a great way to explore the country and discover the many reasons why the rest of the world wants to visit, but also an accessible way to escape and have fun with family and friends

Source: Monitor/ Grail Analysis

high level implementation plan roles and responsibilities
High-level Implementation PlanRoles and Responsibilities
  • These roles and responsibilities extend to the more specific activities required, with us, SAT taking the lead on activating the market through both national-level demand-building...

Activity

NDT

SAT

Provincial and Local Authorities

Industry

  • Activating the Market: Demand Building
  • Develop and execute a national educational campaign in collaboration with the Department of Education to build awareness around tourism and its value to South Africa
  • Provide direction to advertising agency in development of the national marketing communication campaign
    • Oversee all elements of the campaign, including integrated media strategy
  • Work to disseminate the planned key message to industry and channel partners to enable understanding and alignment
  • Develop toolkit to guide provincial and local players in their communication to ensure alignment with national messaging objectives
  • Develop provincial strategy and messaging relevant to brand building at a more general level
  • Fund, and oversee, development of provincial marketing communication campaigns in line with Toolkit developed by SAT
  • Continue to prioritise consumer segments for activation according to business objectives
  • Understand national strategy and identify areas in which it aligns with business strategy

Source: Monitor/ Grail Analysis

high level implementation plan roles and responsibilities1
High-level Implementation PlanRoles and Responsibilities
  • And overseeing all elements of fulfilment through both SAT-led activity, and the provision of guidelines to assist collaborators in industry and government

Activity

NDT

SAT

Provincial and Local Authorities

Industry

  • Oversee development and dissemination of information through physical and online channels
  • Provide insight into segment information needs and product needs to relevant industry and channel partners
    • Collaborate to develop and disseminate information and packages Investigate alternative physical channels and develop JMAs where possible to further the accessibility of products
  • Identify and provide training to channel partners to enable capability building
  • Collaborate with SAT and provincial authorities to provide product-specific information to be delivered to prioritised consumers through relevant information gathering channels
  • Collaborate with SAT and provincial authorities to develop product packages relevant to prioritised consumer segments
  • Make space available for information dissemination
    • E.g., Pamphlet distribution at front desks of car hire companies, hotel reception, travel agency windows, airline magazines
  • Activating the Market: Fulfilment
  • Ensure that resources are allocated to both SAT and provincial and local authorities to enable them to activate the market effectively
  • Establish common platforms where stakeholders can discuss issues around collaboration
  • Using toolkit and guidelines provided by SAT, prioritise segments that are well-suited to activation by the province and/ or cities
  • Oversee development and dissemination of information brochures relevant to provincial strategy
  • Provide direction for provincial information needs to relevant industry and channel partners
  • Collaborate with industry and channel partners to develop packages that are aligned with provincial strategy

Source: Monitor/ Grail Analysis

high level implementation plan roles and responsibilities2
High-level Implementation PlanRoles and Responsibilities
  • In terms of tracking the market and ensuring supply, it is important for us, SAT to leverage key relationships and co-ordinate the various stakeholders to ensure that these elements of the strategy are executed

Activity

NDT

SAT

Provincial and Local Authorities

Industry

  • Tracking the Market
  • Liaise with other government data collection agencies (e.g., StatsSA) to ensure that SAT is getting the required information and data
  • Co-ordinate and help to connect SAT to other parties collecting information that may be useful for tracking of the market (e.g., GCIS)
  • Track the evolution of the domestic market, based on key indicators
    • Trigger in-depth analysis and updated segmentation of the market when necessitated by sustained changes to the market landscape
  • Evaluate the impact of activation activities on the travel behaviour of domestic consumers
  • Supplement research provided by SAT to enable tracking of the evolution of relevant consumer segments
  • Feed province-level data back to SAT
  • Adjust provincial and local strategy as necessary based on changes to the market and changes to the national strategy by SAT
  • Make internal research and insights available to SAT, in order to enable a feedback loop that provides views on the consumer from multiple angles and sources
  • Co-ordinate, and fund, the audit of available product
  • Work with other government bodies, industry and industry bodies to move development of product forward
  • Evaluate the response to products developed for specific segments
  • Work with the NDT to conduct an audit of products available
    • Map against segment needs to identify gaps
  • Work with SAT and NDT to find areas where national product development objectives align with the business objectives of the industry and can be filled through industry action and with industry funding
  • Ensuring Supply to the Market
  • Work together with SAT and NDT to identify product availability and gaps at provincial level

Source: Monitor/ Grail Analysis

slide36

Introduction

Growth

Maturity

Domestic Campaign

national campaign:

travel like a tourist in your own country & be the envy of the world

Travel is an accessible way for you to live a vicarious life, if only for a short while. The possibilities and opportunities that lie in wait for you while you’re exploring are infinite and immediate.

insiders sa:see your world as the world sees it

By encouraging people to escape to their ideal destination in their minds, the segment relevant deals that will be within our communication mix simply serve as the confirmation and hassle-free way to access the market’s ideals.

average spend per arrival
Average Spend per Arrival

Goal 2 Continued………….

strategic outcome oriented goal 2
Strategic Outcome Oriented Goal 2:

To market South Africa in such a way that the average spend per arrival in South Africa are at least R12 536 per person during the 2012 calendar year being in South Africa

Goal Statement 2

Through the execution of its Strategic Plan and Annual Performance Plan, the following spend per person should be achieved on average for every person arriving in South Africa:

  • 2010/11 actual R8,900 per person (this excludes prepaid)
  • 2011/12 calendar year target: R11 960 per person (this includes prepaid)
  • 2012/13 calendar year target: R12 536 per person (now calculated NITS i.e. includes prepaid)
  • 2013/14 calendar year target: R13 360 per person
spend per countr y
Spend per Country

Through the execution of its Strategic Plan and Annual Performance Plan, the following spend per be

person should achieved on average for every person arriving in South Africa:

strategic outcome oriented goal 3
Strategic Outcome Oriented Goal 3:

To market South Africa in such a way that South Africa becomes a most preferred Tourism Brand by 2014 obtaining at least a 79% brand awareness

To become one of the most preferred Tourism Brand by 2014 as measured by the following criteria:

1. Brand Knowledge

2. Brand Journey

3. Conversion of positive brand awareness to sales

Increase Average Brand Awareness

  • Achieved 79% in Feb 2011
  • Target 79% Feb 2012 to 2015
conversion global target 2008 11

Significantly below Average for 13 destinations (at 95% confidence level)

Significantly below Average for 13 destinations (at 95% confidence level)

Conversion – Global Target (2008-11)

The closure ratio improved for both core markets and investment markets in 2011, as compared to 2010

Core Markets1

1 in 2.75 (2008)

1 in 2.85 (2009)

1 in 2.56 (2010)

1 in 2.10 (2011)

Global Closure Ratio

1 in 2.75 (2008)

1 in 2.88 (2009)

1 in 2.65 (2010)

1 in 2.19 (2011)

Investment Markets2

1 in 2.78 (2008)

1 in 3.12 (2009)

1 in 3.76 (2010)

1 in 3.26 (2011)

Note: Global closure ratios weighted according to marketing spend in market; Closure Ratio = Visited in Past 18 Months / Sought Info in the Past; 1Core Markets’ score does not include Kenya and Nigeria for 2008 to 2010; 2Investment Markets’ score does not include the Brazil market for 2010

Source: SAT BrandTrackerFeb-08 through Nov-11 (merged for each year)

sa brand journey global target 2008 11
SA Brand Journey – Global Target (2008-11)

Compared to 2010, South Africa’s global scores on Positivity and Short-term Consideration have improved slightly in 2011

Global Targets

Note: In 2011, Core Markets weighted according to relative investment spend – Australia = 7.3%, France = 13%, Germany = 15.2%, India = 7.8%, Netherlands = 9.5%, UK = 20.2% , USA = 21.4%, Kenya = 2.7%, Nigeria = 2.7%; Investment Markets weighted according to – China = 38.9%, Italy = 25.8%, Japan = 11.6% and Brazil = 23.7%; Global Average, weighted according to investment spend – Core = 90%, Investment = 10%; All rating questions have been analyzed using top 2 box approach

Source: SAT BrandTracker Feb-08 through Nov-11 (merged for each year)

key brand journey metrics 2011
Key Brand Journey Metrics (2011)

Note: Core Markets weighted according to relative investment spend – Australia = 7.3%, France = 13%, Germany = 15.2%, India = 7.8%, Netherlands = 9.5%, UK = 20.2% , USA = 21.4%, Kenya = 2.7%, Nigeria = 2.7%; Investment Markets weighted according to – China = 38.9%, Italy = 25.8%, Japan = 11.6% and Brazil = 23.7%; All rating questions have been analyzed using top 2 box approach Source: SAT BrandTracker Feb-11 and Nov-11

knowledge of the brand sa rank versus all destinations 2011
Knowledge of the Brand – SA Rank Versus All Destinations (2011)

Between 2010 and 2011, South Africa’s rankings improved in seven markets, most notably in Netherlands, India and Nigeria, while in China, the rankings have declined slightly in 2011

Ranking (out of 10) of The SA Brand Relative to Competitors Along Key Brand Attributes – 2011

Significantly Above Average for 10 destinations (at 95% confidence level)

Significantly Below Average for 10 destinations (at 95% confidence level)

When SA is ranked lowest amongst competitors

When SA is ranked highest amongst competitors

Note: For ranking purposes, if there are more than 10 destinations in survey, the following destinations are removed from rankings: USA followed by Italy and France

Source: SAT BrandTracker Feb-11 and Nov-11

strategic outcome oriented goal 4
Strategic Outcome Oriented Goal 4:

To deliver on the quality experience expected by the international and domestic tourist by having at least graded 6 172 tourism products in South Africa by 31 March 2013

Quality experience by the international and domestic tourist

accommodating visitors with disabilities
Accommodating visitors with disabilities
  • South Africa needs to know how friendly our tourism accommodation facilities are to people living with disabilities or impairments!
strategic outcome oriented goal 5
Strategic Outcome Oriented Goal 5:

For South African Tourism to achieve, through amongst others, the continuous improvement of its internal policies and procedures and the vigorous compliance with its policies and procedures by employees:

  • 11th consecutive unqualified annual external report
  • To spend at least 98 – 102% of our annual budget included in the Annual Resource Plan for 2012/13

To continuously improve internal policies, procedures and business processes

strategic outcome oriented goal 6
Strategic Outcome Oriented Goal 6:

For South African Tourism to continuously improve its internal communication and a culture of staff members living the values of the organisation in order to achieve:

  • An annual staff turnover rate of 10% during 2012/13
  • An average score of between 3,3 in the Deloitte Best-Company-to-work-for Survey that will take place in June/July 2012
  • Fully operational National Convention Bureau by 1 April 2012 generating 60 leads per annum with improved delegate boosting

To continuously improve South Africa Tourism’s internal communication and of staff members living the values of the Organisation

national convention bureau team south africa
National Convention BureauTeam South Africa
  • Team South Africa will grow the nation’s business events industry. The resulting business, trade and intellectual engagement will strengthen South Africa’s global brand and economic transformation.
  • It will accomplish this mission by:
    • Positioning and selling South Africa as a preferred business events destination
    • Growing the industry’s capacity and skills nationally
    • Improving the professionalism of meetings in

South Africa

Mission

sa tourism s consolidated key performance areas for the 2012 13 financial year
SA Tourism’s Consolidated Key Performance Areas for the 2012/13 financial year

SA Tourism 2012/13 Key Performance Areas for Performance Information Management purposes

* Trade includes product owners and travel operators and agents

approved cpix parameters for budgeting purposes for the calculation of overhead budgets
Approved CPIX Parameters for Budgeting Purposes (for the calculation of overhead budgets)
  • Notes:
  • Calculated taking into consideration latest IMF figures adjusted for:
  • SA Reserve Bank expectations that SA’s CPIX will fall within the 3 – 6% bracket from the latter part of 2009;
  • Bureau for Economic Research indicators
  • The Economist predictions
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SA Tourism Utilization of Government Grant:

2012/13 – 2014/15 (R’000)

changes to sat s non financial resources during the 2012 13 financial year
Changes to SAT’s non-financial resources during the 2012/13 financial year

People

SA Tourism current staff complement of 184 is expected to increase by 3 staff members to 187 during the 2012/13 financial year. The reason for this is the additional staff required for the Brazil and Nigeria offices that will be opened no later than 31 March 2013.

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1. Skill set of staff members

No changes are foreseen.

2. Time allocation/management of marketing staff members

2.1 In terms of SA Tourism’s Board-approved market prioritization, marketing staff

members will continue to spend the following proportion of total available time on the

different types of markets: Core markets: 60%, Investment markets: 20%, Tactical markets:

15% and Watch-list markets: 5%.

2.2 In terms of maximizing available time of all SAT managers,:

2.2.1 SAT will continue to encourage short to-the-point meetings preferably not

exceeding 3 hours;

2.2.2 SAT will continue to encourage staff members to rather attend to e-mails after

13h00 every day (and not during the mornings when productivity is at its optimum);

2.2.3 SAT will continue to enforce the following management routines (where proper minutes should be kept available for audit-inspection purposes):

2.2.3.1 An Exco meeting every Tuesday

2.2.3.2 Manco meeting twice a month (on Wednesday’s)

2.2.3.3 A Country Office meeting twice a month

2.2.3.4 A Business Unit meeting twice a month

  • 1. People (continued….)

Changes to SAT’s non-financial resources during the 2012/13 financial year

changes to sat s non financial resources
Changes to SAT’s non-financial resources

2. Systems

No change is foreseen at this stage to SA Tourism’s 3 primary

systems (Oracle, EPM Project Management and the QIT Grading Back-office system) except for the implementation/loading of regular updates/patches.

changes to sat s non financial resources1
Changes to SAT’s non-financial resources

3. Infrastructure

3.1 Head Office

No change

3.2 Country offices

SA Tourism’s 11 country offices will increase to 13 after the opening of new offices in Nigeria and Brazil.

changes to sat s non financial resources2
Changes to SAT’s non-financial resources

4. Business Units

No changes are necessary in SAT’s current 16 business units:

Office of the CEO/COO (including Internal Audit & Admin)

Human Resources

Africa Portfolio

Domestic Marketing (including Events)

Asia, Australasia and Americas Portfolio

Europe & UK Portfolio

Central Marketing (including Global Brand, Channel & Agency Management)

E-Business

Research

PR & Comms

Product & Itinerary

Finance (including Supply Chain and Legal)

TGCSA

Business Systems (previously known as IT)

Watch-list markets

Conventions Bureau (including Business Tourism)

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SA Tourism

Vision, Mission and Values

vision of sa tourism
Vision of SA Tourism

For South Africa 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 international tourism marketing strategy for SA. In pursuance of this SAT will:
    • Facilitate the strategic alignment of the provinces and industry in support of the global marketing of tourism to SA
    • Remove all obstacles to tourism growth
    • Build a tourist-friendly nation
    • Ensure that tourism benefits all South Africans
values of sa tourism

Pushing the boundaries of excellence in all we do

Teamwork

Feel responsible and be accountable

Care for South Africa and each other

Integrity

Respect for the purpose, people

and assets of the organisation

Values of SA Tourism
  • We unconditionally respect our organisation’s people, its purpose and its assets.
  • Living this respect with integrity translates into an authentic caring for South Africa and each other, a feeling of responsibility, and the acceptance of accountability for the outcomes of our actions.
  • Our team pushes the boundaries of excellence in everything we do.
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