can tourism be a catalyst for economic development?
TRANSCRIPT
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CAN TOURISM BE A CATALYST FOR ECONOMIC
DEVELOPMENT?
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TOURVEST HOLDINGS (PTY) Ltd
Established in 1997
4 500 employees
Estimated market value of
R4 billion rand
Manages 65 brands
globally
Africa’s largest integrated
tourism company
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WHAT IS THE SECTOR’S ROLE
IN ECONOMIC DEVELOPMENT?
• Average spend per
foreign tourist in 2013 –
R6 578
• 14 million foreigners
visited SA in 2013 vs 13
million
in 2012
• 655 000 persons
employed in the industry
- 4.4% of gross
employment in SA
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R0R100
R200R300
R400
Total Tourism Spend
Domestic Spend
Foreign Spend
Tourism GDP Contribution
2012
2013
R93 billion/ R103 billion
R94 billion
R124 billion
R199 billion/ R218 billion
OUR INDUSTRY IN PERSPECTIVE
Tourism contribution to total GDP 2.9%
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Product International spend for every R100 spent …
Domestic spend for every R100 spent …
Non-specific products R27 R19
Tourism-related products R15 R10
Other products R20 R13
Accommodation R14 R15
Transportation excl. air R12 R29
Air transportation R12 R14
WHAT IS THE SECTOR’S ROLE
IN ECONOMIC DEVELOPMENT?
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WHO ARE OUR VISITORS?
Holiday-makers:
88%Foreign students and workers:
2.3%Business travellers
1.4%
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MAIN INBOUND DEPARTURE
POINTS
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SADC INBOUND TRAVELERS
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INBOUND TRAVELERS FROM
AFRICA
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STRATEGIC PRESSURE-
POINTS AND CHALLENGES
Communication anomalies between government, the private sector
and communities
Failed long-term partnerships between government, the private sector
and communities
Non-aligned strategic long-term growth in the tourism sector and
national policy
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STRATEGIC PRESSURE-
POINTS AND CHALLENGES
Safety and security; the role of the media and xenophobia
Political stability and maintaining long-term relationships with city
appointees
Target markets; roll-out and product efficiencies
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A TALE OF TWO CITIES
Parys
• Up and coming tourist hotspot
• Easily accessible
• Tourist attractions maintained and easily accessible
• Variety of activities offered: fishing, museum, adventure, etc
• Wide range of good-rates accommodation
• Entertainment and big selection of dining option readily available and accessible
• Revamped as an ‘arty’ town, cloning the Dullstroom ambience
Mthatha (formerly Umtata)
• Unsuccessful tourist hotspot
• Poor road infrastructure
• Tourist attractions inaccessible
and usually closed ‘for repairs’
• Limited activities on offer:
museums, hiking.
• Poor selection of good-rated
accommodation
• No dining options or entertainment
readily available
• Post-apartheid – economic
recession
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THE WAY
FORWARD?
• Maximising feet in
partnership with
inbound operators
• Strategic planning
• Social media
optimisation and
relevance in
modern marketing
• Infrastructural
maintenance and
re-investment
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Q A&
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THANK YOU