executive summary sa tourism’s updated strategic plan...

Executive Summary

SA TOURISM’S UPDATED STRATEGIC PLAN FOR THE 5-YEAR PERIOD 2011/12 – 2015/16 & HIGH-LEVEL ANNUAL PERFORMANCE PLAN FOR

2011/12

Approved by the SA Tourism Board on 22 September 2010For presentation to Portfolio Committee in Parliament on 15 March 2011

T January-Mclean (CEO)

© South African Tourism 2011

Slide no. 2

Index

1. SA Tourism Portfolio Review methodology (slides 3 - 5)2. Outcomes of SA Tourism’s fourth Portfolio Review conducted

during July/August 2009 by SA Tourism Strategic Research Unit in consultation with Exco, Manco and TOMSA levy collectors (slide 6)

3. Government’s priorities and SA Tourism high-level mandate, business objectives and strategies (slides 7 - 10)

4. SA Tourism’s 4 Strategic Outcome Orientated goals (slides 11 – 31)5. Accolades (slides 32 – 33)6. Progress on the execution of SA Tourism’s Big 6 strategies (slides

34 - 46)7. SA Tourism High-level KPA’s and targets (slide 47)8. Budget parameters and high-level budget summary (slides 48 - 54)9. Changes to SA Tourism’s 2010/11 resource allocation (slides 55 -

59)10.SA Tourism: Areas of cooperation with other stakeholders (slide 60)11.SA Tourism Vision, Mission and Values (61 – 66)12.Specific TGCSA KPA’s (slide 67)

3 Copyright © 2011 SA Tourism. Not to be reproduced without permission

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

Consideration Set

Attractive MarketsCOST-BENEFIT EVALUATION

& UNDERSTANDING OF MARKETING ISSUES

CORE, TACTICAL, INVESTMENT &

WATCHLIST MARKETS

Salient Set

Qualitative process involving a panel

discussion

Approach to Portfolio Review


How attractive are these markets in the short term

and the long term?

Core, tactical, investment and watch-list markets

2nd filter

Key steps of the Portfolio Review Process

Application of cost- benefit evaluation

1st filter

4th filter

Exclude markets with less than 20,000 arrivals p.a. or

no airlift

3rd filter

Markets with less than 20,000 arrivals p.a. in 2008

but with airlift (strategic hubs)

Final portfolio

Top sub-Saharan Africa markets PLUS Africa land

markets

Exclude sub-Saharan Africa

Exclude markets with less than 4 million people

living in urban areas and less than 20,000 arrivals

p.a. or no airlift

Include all Africa land markets*

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

Salient set

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


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

Results of Portfolio Review

Less Attractive But Easier

Tactical MarketsMarkets where there are particular opportunities, i.e. “low hanging fruit”15% of organisation’s effort deployed against these markets

Attractive And Easier

Core MarketsMarkets that deliver the “bread & butter”60% of organisation’s effort deployed against these marketsBest capabilities allocated to these markets

Less Attractive And Difficult

Watch-list MarketsMarkets that are on the radarActivity in these markets will only occur if there is spare capacity in the organisation5% of organisation’s effort deployed against these markets

Attractive But Difficult

Investment MarketsInvest in these markets ahead of return, i.e. invest for the future

20% of organisation’s effort deployed against these markets

Core markets are those which present the greatest

opportunity

Tactical markets are those which should be considered for

specific, tactical opportunities

Watch-list markets need to be watched for value segments

Attractiveness of Market

Easi

er to

Tar

get

Investment markets are those where some

investment is made for returns in future


The 4th Portfolio Review process that took place during July/ August 2009 and the outcomes will be implemented in full by 01/04/2011

Africa & Middle East UK & Americas Asia & Australasia Europe

Core Markets

AngolaBotswanaKenya NigeriaSouth Africa*

USA*Australia*India

France*GermanyNetherlandsUK*

Investment Markets

DRCMozambique

BrazilCanada

China (incl. Hong Kong)Japan

BelgiumItalySweden

Tactical Markets LesothoSwaziland

New Zealand Ireland

Watch-list Markets

MalawiNamibiaZambiaZimbabwe

Argentina Republic of Korea

AustriaDenmarkPortugalSpainSwitzerland

Strategic Importance

Bahrain, Oman,

Qatar, Saudi Arabia

Strategic Air Links/Hubs

Egypt, Ethiopia, Ghana, Mauritius, Tanzania, Senegal, UAE

MalaysiaSingapore

4th Portfolio

2011-20142008 – 20102005 – 20072002 – 2004

Reg

iona

l Dire

ctor

Stak

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der

Man

ager

Glo

bal

Cha

nnel

M

anag

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pons

ibili

ty

Cou

ntry

Man

ager

*Indicates Business Tourism Hubs


Slide no. 7

Linking Government priorities to SA Tourism priorities

1. 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.

2. 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”.


Slide no. 8

Share our vision with stakeholders

Share our vision with stakeholders

Use the trade to grow our business

Use the trade to grow our business

Grow & nurture our staff

Grow & nurture our staff

Improve brand traction in markets

Improve brand traction in markets

Increase value- extraction in SA from

all tourists

Increase value- extraction in SA from

all tourists

Fine-tune internal systems and

communication

Fine-tune internal systems and

communication

SA Tourism mandate, key business objectives and strategies at present (31 March 2011)

Sustainable GDP Growth

Sustainable GDP Growth

Sustainable job creation

Sustainable job creation

Redistribution and transformation

Redistribution and transformation

The mandate to SA Tourism

is ...

. . . through four key targets/objectives . .

.

. . . by focusing on doing only the following

“Big 6 things” very well!

Achieve targeted total arrivals to SA in 2007 - 2010

Achieve targeted total arrivals to SA in 2007 - 2010

Achieve total average tourist spend inside SA in 2007 - 2010

Achieve total average tourist spend inside SA in 2007 - 2010

SA to be the most preferred tourist brand by 2014

SA to be the most preferred tourist brand by 2014

SA Tourism to be the Best Tourism Organization by 2010

SA Tourism to be the Best Tourism Organization by 2010


Slide no. 9

Convince consumers that SA can be trusted to

deliver memorable experiences

Convince consumers that SA can be trusted to

deliver memorable experiences

Engage Stakeholders to deliver quality visitor

experience that re-affirm the brand promise

Engage Stakeholders to deliver quality visitor

experience that re-affirm the brand promise

Work the distribution channel to promote SA Work the distribution

channel to promote SA

Energise and empower the organisation to

innovate and achieve excellence

Energise and empower the organisation to

innovate and achieve excellence

Invest only in selected markets to deliver volume and value

Invest only in selected markets to deliver volume and value

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

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

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

Possible Tourism sector outcome which SAT will need to deliver

against

SAT outcome

Strategies to deliver outcome

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

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


Slide no. 10

These 5 strategies have been converted to 5 Programmes to comply with the Treasury Annual Resource Plan template:

Programme 1: International Portfolio Marketing (purpose:to increase international visitor arrivals & spend by marketing SA internationally)

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

Programme 3: 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 4: Head Office administrative support (purpose: provision of human resources, systems and structures to support execution of all approved Business Plans and Budgets)

Programme 5: 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)


Slide no. 11

Strategic Outcome Oriented Goal 1: To market South Africa in such a way that annual arrivals to South Africa increase

Goal statement 1Through the execution of SA Tourism’s Strategic Plan and Annual Performance Plan, the following arrivals should be achieved:

• 2011 calendar year arrival target: 10 295 520 (1% increase over 2010 arrival target)

• 2012 calendar year arrival target: 10 398 476 (1% increase over 2011)• 2013 calendar year arrival projection: 10 502 460 (1% increase over 2012)

Important notes:1. As 2010 calendar year arrivals of 11 395 700 (an increase of 14,7% over the 9 933 966 arrivals recorded in 2009)

were only published during the first week of March 2011 , SA Tourism could not, in line with Government’s Performance Information Framework, change its 2011 calendar year target of 10 295 520 (which will be achieved through the execution of the 2010/11 Annual Performance Plan) as Parliament already approved SA Tourism’s 2010/11 Strategic Plan, which had this target, prior to 31 March 2010.

2. For the same reason , SA Tourism could also not change its 2012 calendar year arrival target of 10 398 476 (as indicated above and which it will be achieved through the execution of SA Tourism’s 2011/12 Annual Performance Plan).

3. Following discussions with the Auditor-General and the Department of Tourism, SA Tourism received permission to increase its arrivals targets effective 2012 calendar year when it submits its updated 5-year Strategic Plan and 2012/13 Annual Performance Plan for approval (by the Board during September 2011 and by Parliament prior to 31 March 2012).


Slide no. 12

Strategic Outcome Oriented Goal 1: To market South Africa in such a way that annual arrivals to South Africa increase

• Historic arrival targets and actual arrivals were as follows:• 2008 calendar year arrival target: 9 699 365 (6.2% increase over 2007)• 2008 actual arrivals: 9 591 828(5.5% increase over 2007)• 2009 calendar year arrival target: 9 824 858 (3.6% increase over 2008)• 2009 actual arrivals: 9 933 966 (3,6% increase over 2008 actual)• 2010 calendar year arrival target: 10 193 585 (2,6% increase over 2009 actual)


Slide no. 13

Included in Strategic Outcome Oriented Goal 1 is the establishment of a world-class Conventions Bureau

Although there is no current baseline for the Conventions Bureau, specificKPA’s for this new focal unit, for which the COO and Executive ManagerConventions Bureau (who will also be an Exco member) will be responsible,Include:

(i) the establishment of the focal unit as soon as possible after 1 April 2011.(ii) the appointment of Executive Manager(iii)the compilation of a detailed 3-year Business Plan & Budget for the

Conventions Bureau

14

Total arrivals increased by 3.6% in the 2009 compared to 2008A

rriva

lsArrivals to South Africa by Region, January to October

Source: Table A October 2009

2009 Growth target (revised) 3.6% 5.8% 4.3% 0.3% 1.2% 1.0% 2.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2008 9,591,828 306,961 7,087,452 407,408 322,586 1,406,350 61,071

2009 9,933,966 317,122 7,490,425 379,907 322,290 1,348,502 75,720

Difference (08 vs 09) 342,138 10,161 402,973 -27,501 -296 -57,848 14,649

% change (08 vs 09) 3.6% 3.3% 5.7% -6.8% -0.1% -4.1% 24.0%

Grand Total Africa - Air Africa - Land AmericasAsia &

AustralasiaEurope Unspecified


Slide no. 15

Strategic Outcome Oriented Goal 2: To market South Africa in such a way that the expenditure of all people arriving in South Africa increases while

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:

• 2011 calendar year target: R9 222 per person (this will result in total expenditure of R126,1 billion in South Africa)

• 2012 calendar year target: R9 775 per person (Total R 135,7 billion)• 2013 calendar year target: R10 360 per person(Total R 146 billion)

Historic spend per person targets and actual spend were as follows:

• 2008 calendar year target: R 7 300 per person (Total R 70,8 billion) • 2008 actual: R 8 100 per person (Total R 83,4 billion)• 2009 calendar year target: R 8 300 per person (Total R109,2 billion)• 2009 actual: R 8 400 per person (Total R 79,4 billion)• 2010 calendar year target: R8 700 per person (Total R117,2 billion)

16

Average spend increased by 3.7% driven by increased spend by land tourists but behind our growth targets for 2009

-R 2,000

R 0

R 2,000

R 4,000

R 6,000

R 8,000

R 10,000

R 12,000

R 14,000

R 16,000

2008 R 8,100 R 6,200 R 13,8002009 R 8,400 R 7,100 R 13,000% change 3.7% 14.5% -5.8%

All foreign tourists Land markets Air markets

Ave

rage

spe

nd p

er to

uris

t per

trip

TFDS (excluding capital expenditure) by region, Jan to Dec

2009 Growth target (revised) R9,900 R6,900 R14,600

17

Domestic Tourism

Source: Table A October 2009

Grow domestic tourism annually to achieve 16m travelers by 2015, using a baseline 14.6m in 2009

18

Domestic Tourism Indicators

Note: 1Varies greatly due to seasonalitySource: SAT Domestic Tourism Surveys for 2007 – 2009

Key Metrics 2007 2008 2009

Domestic Travel

Incidence

Annual 43.5% 46.5% 47.6%

Monthly1 9.9% 9.0% 8.2%

Travellers 12.7 million 13.9 million 14.6 million

Number of Trips

Annual 35.9 Million 32.9 Million 30.3 Million

By PurposeVFR: 68%, Holiday: 16%,

Business: 7%, Religious: 7%, Medical: 1%

VFR: 71%, Holiday: 16%, Business: 5%, Religious: 5%,

Medical: 2%


Medical: 1%

Spend

Total Annual Spend

R20.0 Billion R25.8 Billion R22.4 Billion

By PurposeVFR: 45%, Holiday: 37%,

Business: 14%, Religious: 3%, Medical: 0%


Medical: 2%


Medical: 1%

Average Spend per Trip / per

DayR550 / Trip; R120 / Day R780 / Trip; R170 / Day R730 / Trip; R170 / Day

Trip Length

Total Annual Bed Nights 157.8 Million 149.0 Million 128.4 Million

Average Nights per Trip 4.4 4.5 4.2


Slide no. 19

Strategic Outcome Oriented Goal 3: To market South Africa in such a way that South Africa becomes a most preferred Tourism Brand by 2014

Goal statement 3Through the execution of its Strategic Plan and Annual Performance Plan, South Africa should become one of the most preferred Tourism Brand by 2014 as measured by the following criteria:1. Brand Knowledge2. Brand Journey3. Conversion of positive brand awareness to sales


Slide no. 20

Average for Welcoming PeopleMaintain Lead on Adventurous and Nature and Wildlife

77% aware of SA40% positive about SA26% sought info on SA14% plan to visit in short-term

Closure ratio of at least 1 in 2.9 in all markets

This can be illustrated as follows:

Global Performance

Globally, each market should aim to achieve a minimum level of performance along 1. Brand Knowledge, 2. Brand Journey and 3. Conversion . Markets that exceed this level must try to maintain their higher performance

Brand Knowledge Brand Journey Conversion

Confidential

21 | Copyright © 2010 Grail Research, LLC — ConfidentialJanuary 13, 2010

1. Knowledge of the Brand – Global Target

Memorable (Average)

Nature & Wildlife (Leadership)

Welcoming People (Average )

Adventurous (Leadership)

Value for Money

Table Stakes (Require Improvement)

Variety

Breathtaking

Enriching

Safety & Security

Imm

edia

te F

ocus

2008

to 2

010

Long

Ter

m B

uild

Reinforces Memorable

In 2009, the global average for most of the Brand Knowledge metrics improved, however, it continued to drop for Welcoming People and Safety and Security

5.69 (2009) 5.65 (2008) 5.68 (2007)

6.12 (2009) 6.07 (2008) 6.10 (2007)

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; Global Average, weighted according to investment spend – Core = 91%, Investment = 9%Source: SAT BrandTracker Feb-07 through Nov-09(merged for each year)

4.70 (2009) 4.73 (2008) 4.75 (2007)

5.74 (2009) 5.69 (2008) 5.70 (2007)

5.66 (2009) 5.62 (2008) 5.67 (2007)

5.55 (2009) 5.51 (2008) 5.51 (2007)

5.51 (2009) 5.49 (2008) 5.51 (2007)

4.52 (2009) 4.56 (2008) 4.58 (2007)

3.41 (2009) 3.54 (2008) 3.53 (2007)

Confidential


Metric Netherlands Germany UK France USA India Australia Italy China Japan

Memorable 1 2 4 3 4 4 2 2 2 2

Adventurous 2 2 3 3 3 2 2 3 2 2

Natural Wildlife Experience 1 3 2 2 2 2 2 3 3 3

Welcoming People You Can Interact With 4 5 5 5 4 3 5 3 4 5

A Wide Variety of Experiences 1 2 2 2 2 2 1 2 3 4

Breathtaking 1 2 4 3 3 3 2 3 2 2

Enriching 1 2 4 4 4 4 4 2 4 2

Unique 1 2 5 3 2 4 3 2 2 2

An Authentic Travel Experience 2 3 4 3 2 4 5 2 3 2

Value for Money 3 4 4 4 4 4 4 4 4 5

Safety & Security 5 5 5 4 3 4 5 2 5 5

Ranking (out of 5) of The SA Brand Relative to Direct Competitors Along Key Brand Attributes – 2009

Note: Competitor set includes Australia, Thailand, Kenya, Brazil to produce ranking out of 5. If any of the above are not included in survey, India or China is used as destinations. For India market, Egypt is used as an additional destination for ranking purposesSource: SAT BrandTracker Feb-09 and Nov-09

In 2009, South Africa’s perception improved on key Personality Attributes in the Netherlands and Germany, compared to its direct competitors, however, it declined substantially in Italy

When SA is ranked highest amongst competitors When SA is ranked lowest amongst competitors Significantly Above Average for 10 destinations (at 95% confidence level) Significantly Below Average for 10 destinations (at 95% confidence level)

Knowledge of the Brand – SA Rank Versus Direct Competitors (2009)

Confidential


Metric Netherland s

German y UK France USA India Australi

a Italy China Japan Kenya Nigeria

Memorable 4 3 7 7 8 9 4 4 4 5 4 8

Adventurous 2 2 3 3 3 2 2 3 2 2 2 8

Natural Wildlife Experience 1 3 2 2 2 2 2 3 3 3 2 3

Welcoming People You Can Interact With 8 9 9 8 5 8 9 7 8 8 10 7

A Wide Variety of Experiences 3 4 4 6 4 4 2 4 7 8 5 5

Breathtaking 1 2 6 5 4 5 3 3 2 5 9 10

Enriching 4 3 6 8 8 9 7 5 9 5 5 9

Unique 3 3 7 7 5 9 5 5 4 4 9 8

An Authentic Travel Experience 4 4 6 6 5 9 8 3 5 4 6 5

Value for Money 8 9 7 9 8 9 7 9 8 10 5 10

Safety & Security 10 10 10 8 6 9 10 6 10 10 10 10

Knowledge of the Brand – SA Rank Versus All Destinations (2009)

Ranking (out of 10) of The SA Brand Relative to Competitors Along Key Brand Attributes – 2009

In 2009, perception of SA in terms of offering Wide Variety of Experiences improved in five markets, out of which three are Core Markets and two are Investment Markets

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 FranceSource: SAT BrandTracker Feb-09 and Nov-09


Confidential


Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Investment Markets weighted according to – China = 32%, Italy = 43% and Japan = 25%; Global Average, weighted according to investment spend – Core = 91%, Investment = 9%; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Feb-07 through Nov-09 (merged for each year)

Awareness Positivity Sought Info in the Past

Likely to Visit in Next 18 Months

2007 Baseline 75% 38% 23% 12%

2008 Actual 76% 37% 22% 11%

2009 Actual 79% 38% 21% 11%

Global Target 2010 77% 40% 26% 14%

Global Target 2013 79% 42% 28% 16%

Global Targets

2. The Brand Journey – Global Target

We have improved in both awareness and positivity but declines on sought info and likely to visit on the next 18 months due to the slowdown in global travel

Confidential


Brand Journey Metrics – SA Rank Versus All Destinations (2009)

Ranking (out of 10) of The SA Brand Relative to Competitors Brand Journey Attributes – 2009

South Africa’s rating on Stature has improved marginally in 2009; the ratings on other metrics continue to be below average in most of the markets, except for the Netherlands, Germany and Kenya


Metric Netherland s

German y UK France USA India Australi

a Italy China Japan Kenya Nigeria

Total Awareness 5 5 6 7 7 7 8 8 8 9 2 6

Unaided Awareness 3 5 4 8 7 7 6 5 7 9 1 5

Positivity 3 5 6 7 7 6 8 6 7 9 3 6

Likely to Visit in Future 2 4 5 6 7 7 8 6 7 9 3 5

Likely to Seek Info 1 4 5 7 7 6 8 6 7 9 3 5

Uniqueness 1 2 4 4 3 6 2 3 5 8 3 5

Stature 4 4 5 5 5 6 6 5 7 9 4 5

Sought Info 2 4 5 6 7 6 7 6 7 9 1 5

Familiarity 4 5 5 10 8 7 7 8 8 9 1 5

Suitability 4 2 5 5 5 6 6 5 6 9 3 5

Likely to Visit in Next 18 Months 2 4 5 9 7 7 6 7 7 9 3 5

Closure Ratio 6 7 7 8 10 8 6 8 6 9 4 8

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South Africa has seen a positive CAGR for most of the Brand Journey metrics between 2006- 2009; however, Visitation and Closure Ratio have declined slightly in 2009, compared to 2008

Brand Journey Trends – Core Markets

Note: Core Markets weighted according to relative investment spend – Australia = 6%, France = 17%, Germany = 18%, India = 6%, Netherlands = 18%, UK = 18% & USA = 17%; Closure Ratio = Visited in Past 18 Months / Sought Info in the Past; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Nov-06 through Nov-09 (merged for each year)

2006 2007 2008 2009 CAGR (2006-09)

Total Awareness 74% 77% 78% 81% 3%

Unaided Awareness 18% 19% 20% 19% 2%

Positivity 37% 39% 38% 39% 2%

Likely to Visit in Future 31% 35% 32% 33% 2%

Likely to Seek Info 17% 19% 18% 18% 1%

Uniqueness 28% 28% 27% 28% 0%

Stature 19% 20% 18% 18% -1%

Sought Info 21% 23% 22% 21% 0%

Familiarity 20% 22% 22% 22% 3%

Suitability 19% 19% 19% 18% 0%

Likely to Visit in Next 18 Months 10% 12% 11% 11% 2%

Visited in Past 18 Months 6% 8% 8% 7% 6%

Closure Ratio 1 in 3.35 1 in 2.90 1 in 2.75 1 in 2.85 6%

Confidential


2006 2007 2008 2009 CAGR (2006-09)

Total Awareness 54% 57% 55% 58% 3%

Unaided Awareness 11% 13% 11% 14% 7%

Positivity 27% 29% 29% 32% 5%

Likely to Visit in Future 27% 27% 27% 28% 2%

Likely to Seek Info 18% 20% 20% 21% 5%

Uniqueness 24% 26% 26% 26% 3%

Stature 17% 18% 18% 19% 3%

Sought Info 22% 23% 22% 23% 1%

Familiarity 7% 8% 9% 9% 13%

Suitability 17% 19% 18% 20% 5%

Likely to Visit in Next 18 Months 10% 10% 11% 11% 3%

Visited in Past 18 Months 7% 8% 8% 7% -1%

Closure Ratio 1 in 2.98 1 in 2.96 1 in 2.78 1 in 3.12 -2%

Brand Journey Trends – Investment Markets

Note: Investment Markets weighted according to relative arrivals – China = 32%, Italy = 43% and Japan = 25%; Closure Ratio = Visited in Past 18 Months / Sought Info in the Past; All rating questions have been analyzed using top 2 box approachSource: SAT BrandTracker Nov-06 through Nov-09 (merged for each year)

In Investment Markets, South Africa’s performance has improved on most of the Brand Journey metrics in 2009, compared to 2008; however, a slight drop in Visitation has led to a drop in Closure Ratio

Confidential


Brand Journey Metrics – SA Rank Versus All Destinations (2009)

Ranking (out of 10) of The SA Brand Relative to Competitors Brand Journey Attributes – 2009

South Africa’s rating on Stature has improved marginally in 2009; the ratings on other metrics continue to be below average in most of the markets, except for the Netherlands and Germany


Metric Netherlands Germany UK France USA India Australia Italy China Japan

Total Awareness 5 5 6 7 7 7 8 8 8 9

Unaided Awareness 3 5 4 8 7 7 6 5 7 9

Positivity 3 5 6 7 7 6 8 6 7 9

Likely to Visit in Future 2 4 5 6 7 7 8 6 7 9

Likely to Seek Info 1 4 5 7 7 6 8 6 7 9

Uniqueness 1 2 4 4 3 6 2 3 5 8

Stature 4 4 5 5 5 6 6 5 7 9

Sought Info 2 4 5 6 7 6 7 6 7 9

Familiarity 4 5 5 10 8 7 7 8 8 9

Suitability 4 2 5 5 5 6 6 5 6 9

Likely to Visit in Next 18 Months 2 4 5 9 7 7 6 7 7 9

Closure Ratio 6 7 7 8 10 8 6 8 6 9

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3. Conversion – Global Target

2007 2008 2009

Market Closure Ratio

Rank Closure Ratio

Rank Closure Ratio

Rank

Netherlands 1 in 3.37 6 1 in 3.44 7 1 in 3.27 6

Germany 1 in 2.17 9 1 in 2.17 8 1 in 2.21 7

UK 1 in 2.07 6 1 in 2.16 7 1 in 2.40 7

France 1 in 4.77 10 1 in 3.44 8 1 in 3.90 8

USA 1 in 4.28 9 1 in 3.87 9 1 in 3.57 10

India 1 in 2.31 9 1 in 1.91 8 1 in 2.05 8

Australia 1 in 4.86 8 1 in 3.40 8 1 in 2.79 8

2007 2008 2009

Market Closure Ratio

Rank Closure Ratio

Rank Closure Ratio

Rank

Italy 1 in 3.29 6 1 in 3.44 7 1 in 4.09 8

China 1 in 2.36 9 1 in 2.10 8 1 in 2.44 6

Japan 1 in 8.40 10 1 in 6.36 9 1 in 4.77 9

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

Core Markets1 in 2.90 (2007)1 in 2.75 (2008)1 in 2.85 (2009)

Core Markets1 in 2.90 (2007)1 in 2.75 (2008)1 in 2.85 (2009)

Investment Markets1 in 2.96 (2007)1 in 2.78 (2008)1 in 3.12 (2009)

Investment Markets1 in 2.96 (2007)1 in 2.78 (2008)1 in 3.12 (2009)

Note: Global closure ratios weighted according to marketing spend in market; Closure Ratio = Visited in Past 18 Months / Sought Info in the PastSource: SAT BrandTracker Feb-07 through Nov-09(merged for each year)

Global Closure Ratio1 in 2.91 (2007)1 in 2.75 (2008)1 in 2.88 (2009)

Global Closure Ratio1 in 2.91 (2007)1 in 2.75 (2008)1 in 2.88 (2009)

In 2009, Australia joined the list of four countries (Germany, UK, India, and China) that have achieved the global Closure Ratio target of 1 in 2.9

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


Slide no. 30

Strategic Outcome Oriented Goal 4: To continuously improve South African Tourism’s internal policies and procedures so that it becomes one of

South Africa’s best organisations to work for

Goal statement 4For South African Tourism to become, through the continuous improvement of its internal policies and procedures, a Top 20 Best- Company-to-Work-for by 2012, as measured in the annual Deloitte Best- Company-to-Work-for survey that will take place during June/July 2012


Slide no. 31

International Olympic Committee will host the International Olympic Committee’s 123rd Congress in in 2011Society of Incentive & Travel Executives (SITE) The Society of Incentive Travel Executives (SITE) has selected to host its International Conference in December 2010. The event

will bring the leaders of the design and delivery of motivational experiences and travel rewards, a multi-billion dollar global industry, to the CityTwo South African companies also walked away with a SITE Crystal award in 2009:-Terra Nova won a SITE Crystal Award for “Most Outstanding Motivational programme 2009”- Dragonfly Africa won a SITE Crystal Award for the “Most Outstanding Sustainable Motivational Experience 2009”

Great Wine Capitals Global Network Rust en Vrede Restaurant in Stellenbosch was announced Global Winner in the 2010 Best of Wine Tourism award in the Wine Tourism Restaurants category.

S. Pellegrino 100 World’s Best Restaurant Awards S. Pellegrino 100 World’s Best Restaurant put two South African restaurants in the 2010 top 50 world’s best restaurants•La Colombe in Constantia (12th place up from 38 last year);•Le Quartier Francais in Franschoek (31st place, up from 37th place in 2009)South African restaurants in the top 100 in 2009:•Le Quartier Francais in Franschoek•La Colombe in Constantia •Jardine’s•AubergineRust en Vrede in Stellenbosch

Chinese Tourists Welcoming Award 2009 The won the bronze award in the internet/new media category of the 2009 Chinese Tourists Welcoming Award which were announced in April during China Outbound Tourist and Trade Market in .

Luxury Tourism Awards 2009 has been awarded in the Best Entertainment Category of the Luxury Tourism Awards 2009 held at the International Luxury Travel Exhibition held in

Travel & Leisure World’s Best Awards readers’ survey

Cape Town has been voted second in the world’s top City in the 2009 Travel and Leisure online pollThe following SA hotels have been voted the world's top 100 hotels for 2009 in an online poll by Travel & Leisure magazine:•Bushmans Kloof, Western Cape, Cedarberg Mountains (1st place)•Sabi Sabi Private Game Reserve (Earth Lodge), Sabi Sand Wildtuin, Kruger National Park (3rd place)•Singita Sabi Sand, Sabi Sand Wildtuin, Kruger National Park (6th place)•Twelve Apostles Hotel & Spa in Western Cape, Cape Town (15th place)•Lions Sand Private Game Reserve, Sabi Sand Wildtuin, Kruger National Park (24th place)•Royal Malewane, Kruger National Park (25th place)•Shamwari Game Reserve, Eastern Cape (27th place)•The Saxon Hotel, Gauteng, Johannesburg (29th place)•Singita Kruger National Park(29th place)•Londolozi Private Game Reserve, Sabi Sand Wildtuin, Kruger National Park (34th place)•Le Quartier Français, Western Cape, Franschhoek Valley (60th place)•MalaMala Game Reserve, Sabi Sand Wildtuin, Kruger National Park (77th place)

16th World Travel Awards. •

Saxon Boutique Hotel & Spa – World’s Leading Boutique Hotel•

Thanda Private Game Reserve - World's Leading Luxury Lodge•

The Blue Train - World's Leading Luxury Train•

Shamwari Game Reserve – World’s Leading Conservation Company

Accolades for 2009

http://promo.travelandleisure.com/worldsbest/2009/property.cfm?clear=1&reqhost=www.travelandleisure.com&cat=hotels&pid=1422









Slide no. 32

2009 TripAdvisor Travellers’ Choice awards •

(5th place)– Top World 100 Best bargains•

An African Villa, , , (24th place)– Top World 100 Best bargains•

54 , , (54th place)– Top World 100 Best bargains •

(4th place)– Top World 10 Hidden Gems•

(2nd place)– Best World Service•

(8th place)– Top 100 Best Luxury•

Shamwari Game Reserve, (82nd place)– Top 100 Best Luxury

Condé Nast Traveler World Savers Awards Bushmans Kloof Wilderness Reserve & Wellness Retreat has been named Global Winner of Wildlife Conservations Programs (2009) in the third annual Condé Nast Traveler World Savers Awards

International Wine and Spirits Competition South African brandy, KWV Founders Reserve Brandy, won gold at the International Wine and Spirits Competition hosted July 2009 in

US Incentive Industry Award South African Tourism’s operation has been named a 2009 winner of Incentive magazine’s prestigious Platinum Partner Award. More than 65,000 of ’s most qualified travel industry decision-makers selected the people, products and services that helped them most in motivating their employees and customers over the past year.

Sustainability is named as one of the 2020 Global Sustainability Centers by The New York Ethisphere Institute

Conference and Incentive Travel Magazine’s Hot List 2009

was voted Best Incentive Destination in the inaugural Conference and Incentive Travel magazine’s 2009 Hot List.

2009 Condé Nast Readers’ Travel Awards •

is voted eighth (8) in the top 20 overseas cities category.•

ranked eight (8) has reader’s favourite country as a result of it diverse range of attractions and activities.

•

Pride of Africa, Rovos Rail was voted third (3) as the reader’s favourite train experience due to its child friendly facilities.

•

Blue Train ranked tenth (10) in the favourite train experience (10).

ABTA Travel Trends Report ABTA has named South Africa as a top destination for 2010.The annual report cites ‘x-factor destinations’ - those with something new and unique to offer.

Accolades for 2009 (Continuation)

http://www.travelwires.com/wp/2009/05/bushmans-kloof-diversifies-into-spa-and-wellness/


Slide no. 33

What will be our “Big 6” strategies to achieve the 4 high-level objectives

Strong leadership is required from all EXCO,MANCO and Country Managers for the execution of these 6 strategies:

OBJECTIVE STRATEGY

1. Achieve total arrivals to SA

2. Achieve average spend per tourist inside SA

Strategy 2: Use the trade to grow our business

Strategy 6: Increase value extraction in SA from all tourists

3. South Africa to be a most preferred Tourism Brand by 2014

Strategy 4: Improve brand traction in markets to increase positive awareness

4. SA Tourism to be the Best Tourism Organization by 2010

Strategy 1: Share our company’s vision with key stakeholders and influencers Strategy 3: Grow & nurture our staffStrategy 5: Develop or fine-tune and integrate yardsticks

and systems to obtain operational excellence


Slide no. 34

Actions & measures for strategy 1 … (1/3)

Strategy 1 : Share our company’s vision with key stakeholders and influencers

Actions (& “owners” in brackets)

How it will be measured?

Progress Gaps/ challenges / comments

1. Increase/improve dialogue with stakeholders as per board document -Look for insights to the needs of key stakeholders so we can service them better-Understand how to win with each key stakeholder (All SAT managers)

• Conduct industry perception baseline study by Apr’07 and measure perceptual shift in Mar’08

(Global Channel Manager)• Number of

meetings/engagements/r oad shows with DFA and embassies globally(Quarterly reports from PR and Comms)

• Trade participation improved, but perception study not done.

• Routine engagements – marketing comms through LRPs in watch-list markets – weekly and or prompted & delivered X 6 media hostings since start of fiscal ( Spain, Argentina TV, Malaysia tv., etc)

• Material left over from last fiscal dispatched through head office and new material briefed in for Sept –March 2010 time-frame

• Monthly meetings with DICO on stakeholder forum chaired by DG:DICO which included IMC & GCIS

• Hosted 50 DFA officials and 3 trade media at INDABA 2009: (LRPs only)

• Held a 2010 briefing workshop on the 3rd day of INDABA

• Bilaterals with officials from watch-list and other markets during INDABA (Portugal/Argentina)

• First quarter: Diplomats designate appointed hosted by MANCO at Bojanala house

• Heads of Missions Aug 13-15• Bilaterals:• Amb John Davies – Saudi Arabia• CG M Basadien – UAE• Amb D Msimang – Denmark • Amb Andries Venter – Russia & Ukraine • Amb B Koloane – Spain

• SA trade study to be included in GCP 3 study.

• International trade perception study not done due to problems with the contact management system – unable to access trade contacts in database


Slide no. 35




How it will be measured? Progress Gaps/ challenges / comments

2. Messaging – Align stakeholders and influencers to support vision that we all have a collective responsibility for uplifting SA (GM: PR and Comms)

• Track media to measure message alignment :

80% positive about SAT

20% negative about SAT

(GM: PR and Comms)

• Media monitoring ongoing:Local media:89% positive and neutral vs.

negative.International media:83% positive and neutral vs.

negativeCommunication shared by

stakeholders locally increased from 50% to 77% between Oct 2008 and Jan 2009

(Source: Media Tenor media analysis and Dow Jones media analysis)

• Brand Messaging book launched• Online brand book platform being

designed• Brand book presented to SATSA,

Heads of Missions• Ongoing work with FIFA; LOC and

Host Cities• Industry Cocktail planned for 15

October


Slide no. 36





3. Identify and agree on areas of co-operation with stakeholder organisations(EXCO)

• Documents of understanding with the 3 most critical stakeholders and influencers as identified by EXCO (CEO)

• Agreements/ areas of co- operation:• MOUs with DEAT & TBCSA• CEO participation in Minmec &

Miptech• SAT chairs CEO’s Forum &

Provincial Marketing Managers Forum

• Participate in DoT, BASA negotiations and meetings

• Partnerships with Fifa/LOC• Partnership with IMC/GCIS on

brand alignment• Participate in Fair Trade in

Tourism board

• Not able to participate in all BASA meetings


Slide no. 37


Strategy 2 : Use the trade* to grow our business



1. Trade and business tourism strategies are implemented in full across all focus markets(PMs and CMs)

• As per sales contact management system

(Quarterly reports by PMs)• Number of

meetings/engagements/road shows (Quarterly reports from RDs)

• Leisure trade marketing strategy approved by EXCO

• Business Tourism marketing strategy rolled out globally, and next set of targets to be defined

• 42,257 trade contacts in database at end of Q1 09/10

• 670 products trained (Jan – June 09) (P&I)• Packaging workshops• Product newsletters - monthly• In-country TO itineraries• Indaba hosting• One provincial workshop

• EUROPE 09/10:• Trade trained in country = 2354• RD meetings with local trade = 120

(speed marketing and one on ones)

• AMERICAS 09/10:• Trade trained in country = 778• RD meetings with local trade = 60

(speed marketing and one on ones)

• ASIA & AUSTRALASIA 09/10:• Trade trained in country = 963• RD meetings with local trade = 8

• AFRICA & MIDDLE EAST 09/10:• Trade trained in country = 44• RD meetings with local trade = 5

• No reports available on sales contact management system. Updated review of system and VPN implications occurring in next month

• No integrated trade marketing strategy document as agreed that BT and leisure will be remain separate.

* Trade includes product owners and travel operators and agents


Slide no. 38





2. Educate the trade to sell us better (from both a leisure & Business Tourism point of view including addressing perceptions around safety & security) (TRMs, Fundi and BT managers)

• Increase Trade Extranet Registrations from 2,500 to 5,000

• Increase FUNDI graduates from 1066 to 2000

• Increase Expedia pax sales to SA by 15%

• Increase Trade databases from 20,000 records to 25,000 records

• (GM: BT, Channel and E-Business managers)

• Extranet registrations = 9590• 2,393 FUNDI graduates• Achieved 73% of annual Expedia

target as at 31 Aug 2009. Estimated y-o-y growth of 19% worldwide.

• 42,257 trade contacts in database



Slide no. 39





3. Build & retain relationships with Leisure & Business Tourism trade (including online submissions of JMA proposals by trade) (TRMs, BT & Channel managers)

• As per sales contact management system

(Quarterly reports by PMs)

• EUROPE 09/10:•Trade trained in country = 2354• JMAs= 23

AMERICAS:•Trade trained in country = 778• JMAs= 12

• AFRICA Q1 09/10:•Trade trained in country = 44• JMAs= 1

• ASIA & AUSTRALASIA 09/10:•Trade trained in country = 963•JMAs= 20

•BUSINESS TOURISM 09/10• Active leads = 48• Leads to convention centre= 5

• Implementation of Sales and Contact Management (training and VPN access issues)



Slide no. 40


Strategy 3 : Grow & nurture our staff in order to realize our operational goals



1. Improve effectiveness and transparency of performance measurement in the organization (aligned to project plans and company goals) and integrate our values into our work and performance contracts

(GM:HR)

• Successful and complete implementation of business plans on budget in achievement of Big 4 company objectives (all SAT staff)

• Performance contracts aligned to new reporting format and templates updated.

2. Produce a skills competency database (“dictionary”) for each function and develop & implement job-specific training(GM: HR)

•Do skills audit & measure 12 months later whether skills gap has been narrowed

(GM:HR)

• Job profiles have been audited and validated by 21st Century. 98% of profiles verified were sent to 21st Century

• Remaining budget is R515,973.87 as at December 2008

• Training spent at H/O R440,656.44 (excl. bursaries)

• Training spent in C/O R96,955.47 (excl. bursaries)

• TOTAL SPENT R537,611.91 (excl. bursaries)

• Delayed response in some Business Units to verify the validation of job profiles slowed the process.

• Training Committee to develop a process and criteria to be used in approving training plans.

• Bursaries are on the same budget vote and those are the ones that HR has to closely monitor regarding the pass rate of the people awarded bursaries.


Slide no. 41


Strategy 3 : Grow & nurture our staff in order to realize our operational goals



3. Improve retention of marketing staff(MANCO)

• Establish base line study on current churn (numbers and reasons) (GM:HR)•Reduce churn by 5%(GM:HR with Manco)•Develop transparent succession planning system (COO)

• 14 people resigned in 2009 (21 people (13.55%) resigned in 2008 vs. 16 (10.39%) in 2007.)

• New hire in in 2009, 17(10.97%) in 2008 vs. 29 (18.83%) in 2007

• Staff promotions and transfer 6 in 2009, 7 (4,52%) in 2008 vs. 8 (5,19%) in 2007

• Succession planning system not developed


Slide no. 42

Actions & measures for strategy 4

Strategy 4 : Improve brand traction in markets to increase positive awareness



1. Expand existing successful ways & find additional innovative ways to reach our target audience per market while being true to the brand key (All SAT marketing managers)

• GLOBAL TARGET FOR 2010:• Total awareness = 77%• Positivity = 40%• Sought info in the past = 26%• Likely to seek info in the next 18

months = 14%(SRU manager)

• 2009 ACTUAL• Total awareness =79% (+3%

over 2008)• Positivity = 38% (+1% over

2008)• Sought info in the past = 21%

(-1% over 2008)• Likely to seek info in the next

18 months = 11% (flat)

• The decline in global travel in impacting on our targets along the brand journey

2. Implement the Brand Key in CI manual for Leisure, Business Tourism & events (CMO)

• CI manual approved and distributed by end April 2007

• Number of exceptions in Brand Review limited to 10%

(CMO)

• Done: April 2008

• Achieved: 0-5%

• Being updated again for final changes

• How is exceptions measured? Detailed breakdown required

3. Improve staff members’ understanding of the Brand and integrate our values and vision into our daily work(Exco and Manco)

• All staff to have completed LTB training by July 2007

• Implement 2 LTB training sessions per year

(Global Project Manager)

• LTB training completed.• LTB incorporated into

Energiser• Understanding of the brand

incorporated into Learning and 2 courses run per year.


Slide no. 43


Strategy 5 : Develop or fine-tune internal systems and communication for better results (to obtain operational excellence)



1. Develop & implement internal communication strategy (COO)

• Improve rankings in Best Company to Work For survey by 5 each year

(all SAT staff)

• BCTWF 2009 results: 46 out of 48 (45 our of 55 in 2008) in small company category

• Induction programme developed and piloted with MANCO and Europe country managers.

• Germany completed induction

• HR strategy being developed to take on BCWF action plan

• Induction to be complete by April 2010 by HR team

2. Implement the company- wide Project Management System (Executive Project Manager with EXCO- appointed Project Team)

•Projects executed as planned on time and in compliance with budget

•Budget reallocations are within the agree parameters

(all business unit managers)

• Projects loaded on EPM• # staff trained:

• 5 Executives• 52 Project managers• 3 EPM administrators

• Training company identified to additional project management training in 2009.

• Upgrade of Oracle completed – Dec ’08. There are still a few issues on customised reports on assets that we are fixing.

• New IT strategy adopted in 2009 and went out on tender to be implemented from April 2010


Slide no. 44


Strategy 5 : Develop or fine-tune internal systems and communication for better results (to obtain operational excellence)



3. Ongoing refinement of mapped SAT Business Processes to increase alignment, integration and efficiencies (MANCO + ISO Manager)

•ISO compliant/certification of HR, Admin and Finance by 2010(all HR, Admin & Finance managers with ISO Manager)•All other business policies and procedures filed on intranet(all business unit managers with ISO manager)•Code of good governance adopted by Board and all staff (all business unit managers)

• Approved policies & procedures = 84


Slide no. 45

Actions & measures for strategy 6

Strategy 6 : Increase value extraction in SA of all tourists



1. Mine country research data to establish clear insights into needs and desired experience of target segments (PMs and SRU)

Achieve spend targets in Targets from 2008 to 2011

(SRU Manager)

• Estimated 5,5% increase in spend per person in Q3 2009 over Q3 2008

2. Develop, negotiate & package “products” to upsell tourists and provide them with the right information at the right time and place in SA to maximise their spend(Product & Itinerary Manager & Global Channel Manager)

Achieve spend targets in Targets from 2008 to 2011

(SRU Manager)

• See above• Information in SAT tools is no

longer highlighted by province rather by experience to showcase the diversity.


Slide no. 46

SA Tourism’s Consolidated Key Performance Areas for the 2011/12 financial year

SA Tourism 2011/12 Key Performance Areas for Performance Information Management purposes have

been set out in detail in Annexure B.



Slide no. 47

Approved CPIX parameters for budgeting purposes (for the calculation of overhead budgets)

Country/region Average CPIX for 2009/10

Average CPIX for 2010/11






South Africa 8,1%1 6,0% 5.8% 5.10% 4,6% 4,6% 4,6%

United States (USD) (also used by SAT

for Africa, India & China) 1,6%1 2,0% 2.10% 2.10% 2.10% 2.10% 2.10%

Europe (Euro) 2,6%1 2,0% 2.00% 2.00% 2.00% 2.00% 2.00%

UK (GBP) 2,0%1 2,0% 2.00% 2.00% 2.00% 2.00% 2.00%

Australia (AUD) 3,2%1 2,8% 2.80% 2.80% 2.80% 2.80% 2.80%

Japan (JPY) 0,5%1 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%

Notes:

1. 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


Slide no. 48

Revised exchange rates approved by the Board on 10 February 2009 (except for 2010/11 and 2011/12 where adjustments were made on approved figures in order to balance these budgets)

Notes:

1. Based on the 6 month forward exchange rates as published in the Business Day on 19 January 2009 (the % change to previous exchange rates used by SAT for 2009/10 are indicated in brackets)

Currency Average exchange rate for 2009/10

Average exchange rate for 2010/11

Average exchange rate for 2011/12 (fwd rates as

at 6/8/2010 or 2010/11 budget rates, whichever is

least favorable)





USD ($) 1 =10.40

8.36 8.36 9.03 9.75 10.53 11.37 (-13.64%)

Euro (€) 1 =13.80

10.72 10.72 11.58 12.50 13.50 14.58 (-7.70%)

GBP (£) 1 =15.50

12.53 12.53 13.53 14.61 15.78 17.05 (-5.76%)

AUD ($) 1 =6.96

5.30 6.80 7.34 7.93 8.57 9.25 (-8.96%)

ZAR 1 = JPY (¥)8.66

6.77 11.06 11.94 12.90 13.93 15.05 (-4.3%)

CNY 1 =1.20

1.00 1.23 1.14 1.05 0.98 0.90


Slide no. 49

SA Tourism high-level revenue: 2011/12 – 2012/14 (R’mil)

Funding of SA Tourism Medium-term estimate

2011/12 2012/13 2013/14

From Government MTEF allocation 668 613 701 803 740 402

From TOMSA levies 76 000 78 000 80 000

From Grading fees 25 917 30 219 35 236Indaba & Meetings Africa revenue 26 500 27 500 28 500

Interest received 7 500 7 700 7 800

Sundry revenue 35 663 36 376 37 104

Total Revenue that agrees to final ENE submission 840 193 881 598 929 042


Slide no. 50

SAT marketing expenses: 2009/10 – 2011/12

Country office Currency of office

Audited 2009/10 Audited 2009/10

Approved Approved Approved Approved

(forex) (R’mil) budget 2010/11 (forex)

budget 2010/11

budget 2011/12 (forex)

budget 2011/12

(R’mil) (R’mil)

1. USA USD 5.666 43.631 5.074 42.406 5.074 42.423

2. UK GBP 3.025 37.745 2.740 34.348 2.740 34.335

3. Germany EUR 4.052 43.517 3.371 36.128 3.371 36.133

4. France EUR 2.840 30.916 2.375 25.461 2.189 23.465

5. Netherlands EUR 2.042 22.409 1.813 19.432 1.720 18.435

6. Italy EUR 1.215 13.165 0.690 7.392 0.690 7.393

7. India INR 67.102 13.420 105.882 18.000 88.235 15.000

8. China CNY 10.593 12.712 15.250 15.250 11.585 14.238

9. Japan JPY 79.786 6.736 59.663 8.811 59.663 5.395

10. Australia AUD 2.347 15.407 2.339 12.400 2.339 15.906

11. Domestic ZAR 19.500 - 19.500

12. Nigeria USD 6.813 - 6.991

13. Kenya USD 5.110 - 3.610

14. SADC USD 7.133 - 6.633

15. Angola USD - - 7.133 - 9.633

16. DRC USD - - 7.133 - 5.633


Slide no. 51


• Please note that the 2009/10 Africa figure includes Indaba•2010/11 strategy for Americas & Europe Portfolio’s are to stabilise while we increase funding in Africa and Asia Portfolio’s•Finance’s & Office of the CEO’S 2008/9 audited figures were negative due to exchange profits

Business Unit Audited 2009/10 Approved Approved

(R’mil) budget 2010/11 budget 2011/12

(R’mil) (R’mil) 1. Americas & UK Portfolio

84.284 79.544 79.709

2. Europe Portfolio 109.838 91.203 87.379

3. Asia Portfolio 48.169 54.562 52.144

4. Africa Portfolio including Domestic*

35.858 55.000 52.000

5. Business Tourism 27.078 10.500 11.109

6. Central Marketing 199.824 183.000 189.635

7. PR & Comms 17.546 12.000 11.000

8. Events 31.394 10.000 8.000 9. TGCSA 4.570 22.936 25.410 10. TECSA 1.061 - -

11. Finance 7.738 5.798 6.134

12. HR 0.185 2.005 2.121 13. e-Marketing 25.219 18.000 14.000

Sub total 592.762 544.547 538.642


Slide no. 52


Business Unit Audited 2009/10 Approved Approved

(R’mil) budget 2010/11 budget 2011/12

(R’mil) (R’mil) Sub total from previous page 592.762 544.547 538.642 14. Business Systems (IT) - - -

15. Office of the CEO/COO 1.988 6.500 6.877

16. Research 45.600 46.531 49.230

17. Product 11.889 8.500 10.193

Total Marketing expenses 652.238 606.078 604.942


Slide no. 53

Changes to SAT’s non-financial resources during the 2011/12 financial year

1. People1.1. Number of employeesSA Tourism does not foresee any increase in its current staff complement of 184 as at 31March 2011 as:

- provision has been made for 3 staff members for the Luanda office that will be opening during the 2011/12 financial year;

- provision has been made for 2 staff members to start-up the Conventions Bureau which will be SA Tourism’s 17th Business Unit (this will effect SA Tourism’s current Business Tourism and Events Business Units, but a decision in this regard will only be taken by the Board at the September 2011 Board meeting)


Slide no. 54

Changes to SAT’s non-financial resources during the 2010/11 financial year

1. People (continue)1.2. Skill set of staff membersNo changes are foreseen.

1.3. Time allocation/management of marketing staff members1.3.1 In terms of SA Tourism’s Board-approved market prioritization, marketing staffmembers will continue to spend the following proportion of total available time on thedifferent types of markets: Core markets: 60%, Investment markets: 20%, Tactical markets:15% and Watch-list markets: 5%.1.3.2 In terms of maximizing available time of all SAT managers,:1.3.2.1 SAT will continue to encourage short to-the-point meetings preferably notexceeding 3 hours;1.3.2.2 SAT will continue to encourage staff members to rather attend to e-mails after13h00 every day (and not during the mornings when productivity is at its optimum);1.3.2.3 SAT will continue to enforce the following management routines (where proper minutes should be

kept available for audit-inspection purposes):1.3.2.3.1 An Exco meeting every Tuesday1.3.2.3.2 A Manco meeting twice a month (on Wednesday’s)1.3.2.3.3 A Country Office meeting twice a month1.3.2.3.4 A Business Unit meeting twice a month


Slide no. 55

Changes to SAT’s non-financial resources

2. Systems

No change is foreseen at this stage to SA Tourism’s 3 primarysystems (Oracle, EPM Project Management and the QIT Grading

Backoffice system) except for the implementation/loading of regular updates/patches.


Slide no. 56


3. Infrastructure

3.1 Head Office

No change

3.2 Country offices

SA Tourism’s 11 country offices will be retained and no additional offices are planned due to the budget constraints. However, SA Tourism is currently looking at its RETURN ON INVESTMENT in all the countries where it has offices and this might result in the closing of 1 or more current offices of SA Tourism and moving some/all such offices to other countries (e.g. Brazil) where a higher ROI might be achieved.


Slide no. 57


4. Business UnitsNo changes are necessary in SAT’s current 17 business units.

• Office of the CEO/COO (including Internal Audit & Admin)• Human Resources• Africa Portfolio (including Domestic Marketing)• Asia, Australasia and Americas Portfolio• Europe & UK Portfolio• Events• Business Tourism• 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


Slide no. 58

Changes to SAT’s non-financial resources effective 1 April 2011

The budget cuts of R 50,4 million, R 53,4 million and R 57,0 million over the 2010/11, 2011/12 and 2012/13 financial years have been fully catered for and no staff reduction or office closures are foreseen until 31 March 2012 unless the Rands weakens dramatically against major currencies in which case the situation will be re-assessed.


Slide no. 59

Areas of co-operation with stakeholdersStakeholder Details of co-operation

1. TBCSA & TOMSA 1.1 SAT is co-funded from voluntary tourism levies collected and SAT therefore offers some specific benefits for establishments that collects TOMSA levies1.2 SAT and TBCSA, which represents all tourism business associations, jointly addresses the industry once a year in all provinces and have bilateral meeting quarterly

2. Provincial Tourism Authorities CEO’s Forum (now called the Marketing Working Group) meeting quarterly where SAT CEO meets Provincial CEO’s to share Business Plans & Budgets and discuss specific marketing issues including joint marketing projects. SANParks, SANBI and TEP also attend. The CMO convenes the quarterly marketing forum with provincial marketing managers.

3. Fedhasa, ASATA and SATSA Sharing of information

4. NDT, other public entities & programmes:4.1 SANPARKS

4.2 SA Weather service4.3 SANBI4.4 TEP

Lobby SANPARKS to also start collecting TOMSA levies. Provide exhibition space at exhibitions at beneficial rates Share informationShare informationJoint funding of ETEYA project

5. IMC, GCIS and the Department of Trade & Investment

Sharing of information and joint marketing activities

6. SAPS Quarterly meetings with Provincial SAPS leadership

7. Match & LOC Ongoing liaison on Confederations Cup and 2010 Soccer World Cup

8. Miptech and Minmec Sharing of information on obtaining inputs on high-level marketing issues. SAT’s CEO attends both meetings.

9. Departments of International Relations & Cooperation and South African embassies overseas

Provide marketing collateral


Slide no. 60

Annexure A

SA Tourism’s budgets:

-2009/10 Audited expenditure

-2010/11 Approved budget

-2011/12 Detailed budget

-2012/13 – 2014/16 High-level budget


Slide no. 61

SA Tourism’s KPI’s and targets for 2011/2 (get from Gomo)

Annexure BSA Tourism’s KPI’s and targets until 2012/13

Indicator Programme/ Activity Past Current Projected

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2012/13

Number of arrivals per year Arrival statistics 9 090 881 9 591 828 9 933 966 10 193 585 (in 2010 calendar year)

10 295 520 (in 2011 calendar year)



- number of land arrivals 6 626 731 7 087 452 7 490 425 7 834 324 7 912 667 7 991 793 7 452 532- number of air arrivals 2 464 150 2 504 376 2 443 541 2 359 ,261 2 382 853 2 406 681 3 049 927Average spend per arrival in the country

Spend statitics R7 000 R8 100 R8 400 R8 700 R9 222 R9 775 R10 300

- average spend per land tourist

R5 800 R6 200 R7 100 R7 100 R7 500 R7 900 R8 400

- average spend per air tourist

R10 200 R13 800 R13 000 R14 200 R15 000 R15 900 R16 800

Percentage of global brand awareness Brand awareness

75% 76% 79% 77% 78% 79% 79%

Percentage of brand positivity

38% 37% 38% 40% 41% 42% 42%

Total number of accommodation establishments graded

Top 20 Best Company to work for

5 400 7 209 8 196 8 288 8 288 9 117 10 029

Transformation of the tourism sector

10% response from the industry TECSA moved back

to the Dept of TourismTECSA moved back



to the Dept of TourismHost 12 workshops

Renew 10 MOUs with associates


Slide no. 62

Annexure C

SA Tourism’s Materiality & Significance Framework for 2011/12 (required in

terms of Treasury Regulation 30)


Slide no. 63

Annexure D

SA Tourism’s Vision, Mission and Values


Slide no. 64

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


Slide no. 65

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.


Slide no. 66

Annexure E

Performance indicators for the TGCSA (a business unit of SA Tourism)

Performance IndicatorEstimated PerformanceAudited outcome /Actual performance

Medium-term targets

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Total graded properties 6 400 6 940 8 196 8 288 8 288 9 117 10 029

Total renewals 4 742 5 132 6 007 7 007 7 007 7 708 8 478

Total new gradings 958 658 1 808 1 635 1 635 1 799 1 978

Cancellations 579 782 1389 4 4 4 4

Breaches by assessors 31 27 16 5 5 5 5