slide1
Download
Skip this Video
Download Presentation
HOSPITALITY, LEISURE AND TOURISM

Loading in 2 Seconds...

play fullscreen
1 / 32

HOSPITALITY, LEISURE AND TOURISM - PowerPoint PPT Presentation


  • 165 Views
  • Uploaded on

HOSPITALITY, LEISURE AND TOURISM. Unlocking the economic impact of the World Cup™ for South Africa. Chris Patricios 22 February 2006. ADVISORY. Agenda. Introduction Economic impact in context Direct opportunities – the reality Direct opportunities – drilling down Other events

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' HOSPITALITY, LEISURE AND TOURISM ' - remy


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

HOSPITALITY, LEISURE AND TOURISM

Unlocking the economic impact of the World Cup™ for South Africa

Chris Patricios

22 February 2006

ADVISORY

agenda
Agenda
  • Introduction
  • Economic impact in context
  • Direct opportunities – the reality
  • Direct opportunities – drilling down
  • Other events
  • World class hosting – world class performance?
  • Sustainability
  • Conclusion
introduction1
Introduction
  • Experience
    • Assisted the 2010 Bid Company
      • Input for tourism section of the bid book
      • Hotel contracting
      • Financial model
    • Assisted provinces in identification of tourism assets in the lead up to 2010
    • 2010 business planning for provinces
economic impact in context1
Economic impact in context
  • FIFA World Cup™ benchmark
    • 2002 FIFA World Cup™ (South Korea and Japan)
  • Recent major international events of relevance
    • 2003 Rugby World Cup – Australia
    • 2003 Cricket World Cup – South Africa
  • Recent international event hosted in SA
    • A1 Grand Prix – Durban
  • Smaller scale example - International football event hosted in SA
    • Bafana vs England – Durban 22 May 2003
economic impact in context5
Economic impact in context
  • Smaller scale example – International football event hosted in SA
    • Bafana vs England – Durban 22 May 2003
  • 2 500 tickets sold in the UK via the England FA
  • UK Tourist’s average (most common) length of stay of 14 nights (SAT 2003)
  • UK Holiday Tourists average spend per day of approx R 900 (SAT 2003)
  • 50% time spent in KZN, 50% of time spent in rest SA

Revenue: 2 500 x 15 days x R 900 per day = R 33.7 million

Revenue: R 16.85 m KZN

R 16.85 m rest SA

economic impact in context6
Economic impact in context
  • The FIFA World Cup™ is the biggest sporting event in the world
  • It follows that the associated opportunities are significant
  • How do these opportunities present themselves?
  • How should these opportunities be approached?
direct opportunities the reality1
Direct opportunities – the reality
  • Official partners/sponsorship
    • FIFA grants rights to six official partners for the 2010 FIFA World Cup™– for up to $ 250 million each
    • At R 1.5 billion, unrealistic for South African sponsors to get involved at this level
    • FIFA does however, provide for four to six ‘national’ or local partners at approximately $ 30 million each
  • Broadcast rights
    • Broadcast rights to the value of $ 1.2 billion to European countries signed for 2010
  • Big numbers – exclude SA participation?

Limited direct opportunities!!

direct opportunities drilling down1
Direct opportunities – drilling down

Soft drink supplier

(Official FIFA partner)

  • Direct opportunity:
  • Second tier opportunities:
    • Direct suppliers to official soft drink

supplier in respect of its World Cup™

initiatives (examples include):

Marketing

Promotions

Logistics

Bottling

Packaging

Host visitor groups

direct opportunities drilling down2
Direct opportunities – drilling down

Host visitor groups

  • Second tier opportunity:
  • Third tier opportunities:
    • Supplies or services provided to second

tier suppliers (examples include):

Air travel

Accommodation

Transport

Gifts

Activities

Forex

direct opportunities drilling down3
Direct opportunities – drilling down

Accommodation

  • Third tier opportunity:
  • Fourth tier opportunities:
    • Supplies or services provided to third

tier suppliers (examples include):

Food

Beverage

Cleaning

Laundry services

Entertainment

Guest amenities

direct opportunities drilling down4
Direct opportunities – drilling down
  • Requires an element of thinking ‘outside the box’ i.e. beyond the direct football or FIFA opportunities
  • Efforts must support the FIFA ambush marketing regulations
  • Initiatives must be well planned (including market research) prior to the investment of any capital
  • Expectations must be realistic
    • Mistake to expect a huge windfall merely because SA is hosting the World Cup™
other events1
Other events

Opportunities are not limited to the 2010 FIFA World Cup™ itself:

  • Events off the field:
    • 2006 – Launch of South Africa for 2010
    • 2007 – Draw for the preliminary competition
    • 2009 – Draw for the final competition
    • 2010 – March – various football workshops (32 finalist teams and referees)
    • 2010 – FIFA Congress
    • Other events such as security meetings etc

Source: 2010 Bid Company

other events2
Other events
  • Events on the field:
    • 2009 – FIFA Confederations Cup – FIFA Dry Run
      • Teams (8), Officials, FIFA delegation, Press, Sponsors, Fans
      • 2 weeks of football
      • FIFA official workshops, meetings etc
    • 2009/10 – Pre World Cup™ Friendlies
      • Teams and their entourage
      • Training camps

Source: 2010 Bid Company

world class hosting world class performance1
World class hosting – world class performance?
  • South Africa will host a unique, successful and world class 2010 FIFA World Cup™
  • BUT………………..
  • What of Bafana’s on-field performance?
world class hosting world class performance3
World class hosting – world class performance?
  • Economic impact attached to the host nation’s team not performing?
    • Already Bafana’s non-qualification for Germany may be a marketing opportunity lost
  • Local interest shown during Rugby World Cup 1995 or AFCON 1996 versus that during World Cup Cricket 2003
  • French performance in 1998 – winners
  • South Korean performance in 2002 – semi finalists
  • Vital that our off-field hosting performance is matched by our on-field football performance
  • It is not ‘just a game’ in the South African context!
sustainability1
Sustainability
  • Post 2010:
    • World class facilities
    • Experience gained
    • Skills acquired
    • Invaluable exposure for the country
  • What is required to sustain the momentum?
  • To further unlock the economic impact post 2010?
sustainability2
Sustainability

Considerations in terms of post-2010 sustainability:

  • Hosting of further ‘world stage’ events
  • Hosting of further team-specific events
    • e.g. Manchester United training camps or friendly matches
  • Proposal to create new events (and to act as host)
    • e.g. Pro20 World Cup
  • ‘Unlocking the skies’ – increased international flight capacity
conclusion1
Conclusion
  • Unlocking the economic impact – commercially
    • There is a requirement to divert focus away from the obvious direct opportunities presented by the 2010 FIFA World Cup™
  • Unlocking the economic impact – domestic population
    • On-field performance is vital in order to benefit from local interest to the greatest extent
  • Unlocking the economic impact – sustainability
    • A strategy BEYOND 2010 is required to capitalise on the momentum created
  • Hosting the event is the catalyst – careful planning and application is required to maximise benefits at all levels
slide32

Chris Patricios

KPMG Hospitality, Leisure and Tourism

+27 11 647 – 6434

[email protected]

ad