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- JOHANNESBURG TOURISM COMPANY-

(SOC) LIMITED/NON PROFIT COMPANY

Registration No: 2003/008973/0

2012/13 Annual Report

(In terms of Section 121 of the Municipal Finance Management Act, 2003

and Section 46 of the Municipal Systems Act, 2000)

JOHANNESBURG TOURISM COMPANY: Annual Report 2012/13

JOHANNESBURG TOURISM COMPANY

(SOC) LIMITED / NON PROFIT COMPANY

COMPANY INFORMATION:

Registration number : 2003/008973/08

Registered Address : Ground Floor

Grosvenor Corner

195 Jan Smuts Avenue

Parktown North

2193

Postal Address : P O Box 1293

Parklands

2121

Telephone number : (011) 214-0700

Fax number : (011) 214-0715

Website : www.joburgtourism.com

Bankers : ABSA Bank of SA Limited

Auditors : Auditor-General


Vision

Our vision is to be Africa’s leading Business Tourism Destination, globally.

Mission

The mission of the JTC is to implement experience-based destination and tourism marketing, manage demand-driven tourism development programmes, in order to achieve the tourism growth objectives, all of which are aimed at ensuring:

shared and sustainable economic growth and development in the City

the transformation of the tourism sector within the City

a bridging of the gap - ultimately stimulating a vibrant second economy

Our Guiding Principles

In exercising our mandate as the City’s appointed Destination Marketing Organization, we are guided by the following principles:

Focused – in a way which ensures our scarce resources obtain the highest possible yield against the objectives of growth in tourist volume, tourist spend, length of stay, improving geographic spread and seasonality patterns as the key tourism drivers of economic growth, job creation and transformation.

Customer-driven – to ensure that we understand the market, facilitate the removal of obstacles, choose the attractive segments, facilitate the product platform and monitor, learn from and respond to tourist demands.

Strategic – in our approach, so that we deal with the major issues and challenges for growth and don’t get side tracked into a myriad of smaller issues that detract from our core mandate.

Leadership – that we operate from a position of strength in the industry, to ensure that our strategy is implemented and that the benefits of growth accrue to our customers and the widest possible areas of the city.


TABLE OF CONTENTS

CHAPTER ONE ..................................................................................................................................... 6

LEADERSHIP & CORPORATE PROFILE ............................................................................................ 6 Section 1: Corporate Profile and Overview of the entity ........................................................................ 7 Section 2: Strategic Objectives .............................................................................................................. 7 Section 3: Salient Features .................................................................................................................... 8 Section 4: Foreword by Member of the Mayoral Committee ................................................................ 10 Section 5: Chairperson’s Foreword ...................................................................................................... 11 Section 6: Acting Chief Executive Officer’s Report .............................................................................. 12 Section 7: Acting Chief Financial Officer’s Report ................................................................................ 13 Section 8: Statement of Responsibility ................................................................................................. 16

CHAPTER TWO ................................................................................................................................... 17

GOVERNANCE .................................................................................................................................... 17 Section 1: Corporate Governance Statement ...................................................................................... 18 Section 2: Board of Directors ............................................................................................................... 20 Section 3: Board Committees ............................................................................................................... 22 Section 4: Director’s Remuneration ...................................................................................................... 22 Section 5: Company Secretarial Function ............................................................................................ 23 Section 6: Risk Management and Internal controls .............................................................................. 24 Section 7: Internal Audit Function ........................................................................................................ 25 Section 8: Corporate Ethics and Organisational Integrity .................................................................... 25 Section 9: Sustainability Report ........................................................................................................... 25 Section 10: Corporate Social Responsibility Report ............................................................................. 26 Section 11: Anticorruption and fraud .................................................................................................... 27

CHAPTER THREE ............................................................................................................................... 28

SERVICE DELIVERY PERFORMANCE ............................................................................................. 28 Section 1: Highlights and Achievements .............................................................................................. 28 Section 2: Financial Performance ........................................................................................................ 29 Section 3: Capital Projects ................................................................................................................... 29 Section 4: Performance against IDP and City Scorecard..................................................................... 29 Section 5: Assessment of Arrears on municipal taxes and service charges ...................................... 177 Section 6: Statement on amounts owed by Government Departments and public entities ............... 178 Section 7: Recommendations and Plans for the next financial year. ................................................. 178

CHAPTER FOUR ............................................................................................................................... 179

HUMAN RESOURCES & ORGANISATIONAL MANAGEMENT ...................................................... 179 Section 1: Human Resource Management ........................................................................................ 182 Section 2: Employment Equity ........................................................................................................... 182 Section 3: Skills Development and Training ....................................................................................... 182 Section 4: Performance Management ................................................................................................ 182 Section 6: Employee Benefits ............................................................................................................ 183 Section 7: Supply Chain Management and Black Economic Empowerment ..................................... 183

CHAPTER FIVE ................................................................................................................................. 184

FINANCIAL PERFORMANCE ........................................................................................................... 184


Section 1: General Information ........................................................................................................... 185 Section 2: Accounting Officer's Responsibilities and Approval .......................................................... 187 Section 3: Risk and Audit Committee Report ..................................................................................... 188 Section 4: Accounting Officer's Report ............................................................................................... 189 Section 5: Accounting Policies ........................................................................................................... 199

CHAPTER SIX ................................................................................................................................... 221

AUDITOR-GENERAL AUDIT FINDINGS .......................................................................................... 221 Section 1: Auditor-General’s Report for the Current Year .................................................................. 222 Section 2: Historical Audit Findings and Remedial Action ................................................................. 226 Section 3: Commitment by the Board of Directors ............................................................................. 226


CHAPTER ONE

LEADERSHIP & CORPORATE PROFILE

KEY ACHIEVEMENTS

Only three board members remain and Joburg Tourism Company (NPC) will not be appointing new board members due to the transfer process to the City of Johannesburg Metropolitan Municipality.

Johannesburg is set to be the most popular destination in Africa, with a projected 2.54 million international visitors expected to visit the city in 2013, according to the third annual MasterCard Global Destination Cities Index.

With an estimated Gross Regional Product (GRP) for Johannesburg of R363bn for 2012, the overall contribution to the regional economy by the Tourism Sector is just under 20% of GRP.


Section 1: Corporate Profile and Overview of the entity

The City of Johannesburg Metropolitan Municipality has as one of its objectives the promotion of tourism, which entails the initiation, facilitation, promotion and implementation of tourism activities that lead to increased volumes of business for the tourism private sector in the City of Johannesburg (CoJ).

The CoJ has incorporated the Johannesburg Tourism Company (JTC) with the aim of promoting tourism in the City of Johannesburg. The initiative is aimed at the Johannesburg metropolitan area in support of Joburg 2040. As a tourism destination marketing organisation, the JTC co-ordinates and manages tourism initiatives and other programmes, involving both public and private sector stakeholders.

Part of the City of Johannesburg, the Johannesburg Tourism Company (JTC), is a destination marketing organisation, dedicated to promoting tourism growth in Johannesburg. The primary function of the JTC is to promote Johannesburg as a Business, Lifestyle, Sport and Leisure destination both locally and internationally. Its operations include running a Convention & Events Bureau, a Visitor Services Bureau, co-ordinating city-wide tourism marketing programmes, tourism information gathering and analysis, as well as playing a crucial role in the positioning of brand Johannesburg.

Johannesburg Tourism Company has three offices:

Johannesburg Tourism Company Head Office

Ground Floor, Grosvenor Court, 195 Jan Smuts Avenue, Parktown North

Tel: +27 214 0700

Soweto Tourism Information Centre

Tel: +27 11 342 4316

Park Station Tourism Information Centre

Tel: +27 11 333 1488

Operating hours 08:00 – 17:00 Monday - Friday

Info Line 0860 333999

www.joburgtourism.com

Section 2: Strategic Objectives

The role of the Johannesburg Tourism Company (JTC) is to facilitate the growth of tourism within the Johannesburg region. We will ensure that Johannesburg becomes a sought after tourist destination within the Continent and use Conventions, Sport, Retail Tourism and Events as key drivers for tourism growth. A strategic objective of all destination marketing organisations is to increase the length of stay of visitors and concomitantly increase tourist spend. In so doing, JTC thereby contributes to the sustainable growth, job creation, transformation and redistribution agenda.

With the above in mind, the mandate is broken down into the following components:

1. To operate a Convention & Events Bureau (CEB) that will bid and tender for major international conferences and events to be hosted in Johannesburg. The Convention & Events Bureau provides all the necessary support services in the interests of ensuring the successful hosting of events in Johannesburg and providing a memorable experience to delegates during their stay in the city.

These services include:

Tailoring strategies for our clients to ensure success in their bidding for events to be hosted in Johannesburg, by capitalizing on all the possible advantages that Johannesburg as a world class city can offer.

Assisting our clients to achieve their strategic goals and objectives.


Researching the clients’ industry and demonstrating the clients’ strengths to the event and conference organizers, in the context of both the national and global arenas.

The Bureau researches appropriate venues and infrastructure to include in the bid, and secure these for the event.

Securing the required support for the bid from key political, industry and tourism leaders.

Assisting clients with finding and appointing leading professional event and/or conference organizers.

Providing all creative assistance and support with the bid presentation through copy and content such as slides, images and video production

Assisting with the arrangement and hosting of site inspections for key decision-makers among the organizers

Once the bid has been won, the Bureau teams up with its clients to initiate programmes aimed at increasing delegate participation.

Leading up to the event, the Bureau will distribute media releases to generate publicity for the event.

Leveraging off the hosted event to entrench and position the Johannesburg brand, as a leading international destination for business, meetings, incentives, conventions and events.

2. To operate a Visitors’ Services Bureau (VSB) to promote leisure tourism to Johannesburg by providing tourism information and associated services to all visitors. This includes:

Coordinating and optimizing the tourism potential of existing tourism products in Johannesburg - both publicly and privately owned.

Providing comprehensive visitor information services.

Managing and operating tourism information centers, using state-of-the-art technology and easily accessible physical structures; providing up to date real-time tourism information and support services to tourists.

Managing the company’s destination management portal and the optimal utilization of all information communication technologies for the purposes of on-line destination marketing.

Providing and disseminating market intelligence.

Working across a range of sectors including conventions, leisure and events tourism, the Johannesburg Tourism Company has a long term strategy to promote the City of Johannesburg as a growing, vibrant and exciting destination.

The Johannesburg Tourism Company is essentially the custodian and brand manager for destination Johannesburg. This entails developing, facilitating and sustaining the brand proposition, the brand personality and the associated brand values. Most importantly the Johannesburg Tourism Company in collaboration with strategic tourism partners, ensures that the ‘promise’ of the experience made to the tourist is delivered - and ideally, exceeded – in order to guarantee repeat visits.

Five Year Strategy and Goals

In line with the Council Resolution taken in August 2011, JTC has been integrated into Group Communications and Tourism Department of the City of Johannesburg (COJ). This is in line with COJ’s high level institutional review process. The operations and human resources were effectively transferred to COJ from 1 December 2012. The company is in the process of winding up.

Section 3: Salient Features

This annual report covers the Johannesburg Tourism Company’s activities for the period 1 July 2012 to 30 June 2013. It encompasses governance, financial, social responsibility, and environmental, broader economic and overall sustainability performance, taking into account the integration and


winding up process which is now at an advanced stage. The company is in the process of winding up, however, the Destination Marketing function will continue to exist under the Group Communication and Tourism Department of the City of Johannesburg. The Human Resources of the Company were transferred to the City effectively from 1 December 2012. The company’s business plan and budget for the financial year under review were prepared under the Group Communication and Tourism Department. COJ is in the process of taking over JTC’s financial obligations as well as assets, subsequent to which the company will be dissolved.


Section 4: Foreword by Member of the Mayoral Committee

Ruby Mathang

MMC [Economic Development]

The Tourism Sector has become a key driving force for many economies across the global arena. The sector provides many countries with an avenue to increase international revenues from direct spends, while at the same time providing an effective platform for the marketing of potential export products.

Due to the significance of the sector globally, many countries in both the developed and the developing world have placed great emphasis on growing this lucrative sector. Guided by economic development objectives as set out in the

City’s Growth and Development Strategy [GDS], the Joburg 2040, Joburg Tourism positions Johannesburg as a tourist destination of choice for business and leisure tourism.

The recent marketing intelligence survey commissioned by Joburg Tourism provides valuable insight into the current sector trends, as well as the value of the sector within the region. The report concludes that the estimated direct spend from tourism related activities for 2012 was approximately R35bn. When taking economic multipliers into effect, this number rises to just under R70bn. Given that the Gross Regional Product (GRP) for Johannesburg was R363bn for 2012, this means that the overall contribution to the regional economy by the Tourism Sector is just under 20% of GRP.

The city’s leadership is focused on positioning Joburg not only as the continent’s leading business hub and vibrant all year round leisure and lifestyle destination, but also offering plenty of opportunities as a base for viable tourism investments. Significant projects include the development opportunities of world class accommodation facilities, state-of-the-art meeting venues and professional hospitality services encompassing transport, training, amenities, suppliers, entertainment, gambling and cuisine.

In keeping with the prioritisation of the tourism sector in terms of the GDS 2040, the past year has been one of fruitful collaboration between the Department of Economic Development and the Joburg Tourism team on a variety of marketing platforms – from the Tale of Two Cities in Lagos, Nigeria, to the Hotel Investment Conference Africa (HICA), ITB and the Cannes Film Festival.

Aside from positioning Joburg as an all year round destination for business, lifestyle and leisure, from a tourism investment perspective, our message to prospective investors is that Johannesburg is open for business – and actively seeking opportunities for partnerships to grow the sector and increase the economic benefits to the local community. The department is working towards achieving 9% economic growth by 2014, as it is projected that this will enable the rest of the country’s economy to grow by at least 6%, to attain Accelerated and Shared Growth Initiative for South Africa’s (ASGISA) objectives.

The conclusion of the 2012/2013 financial year brings with it the closure of Joburg Tourism Company and the integration of the tourism team into the City of Johannesburg’s Group Communication & Tourism Division. I would like to thank the Acting CEO and her team for all their efforts during the past year and to wish them well as they take their place in the City structures.


Section 5: Chairperson’s Foreword

Mathews Moavodi

CHAIRPERSON

Amidst all the economic and tourism industry challenges faced at both a global and a local level, the last quarter of the 2012/2013 financial year has brought pleasing news for the tourism sector, both nationally and for Johannesburg - which is set to be the most popular destination in Africa, with a projected 2.54 million international visitors expected to visit the city in 2013, according to the third annual MasterCard Global Destination Cities Index.

In break with tradition, President Jacob Zuma announced the 2012 tourism statistics (usually announced by the Minister of Tourism, Marthinus van Schalkwyk) at a media briefing at the V & A Waterfront in Cape Town on 25

April. President Zuma attributed South Africa’s “phenomenal” growth in foreign tourism last year – demonstrated by a 10.2% rise in foreign arrivals - as being an indication that the country’s marketing efforts are on track. According to the figures, South Africa outstripped the average global growth rate of about 4% as estimated by the UN World Tourism Organisation with strong year-on-year growth (33.7%) coming from Asia. Excluding Africa, which produced a 7.5% growth in tourists to South Africa last year, overseas tourist numbers rose by 15.1%, which was one of the highest growth rates in the world.

President Zuma credited this success to the decision taken in 2009 to create a separate department of tourism, which was subsequently identified as a key job-creating sector of the economy. The national tourism strategy envisages South Africa as among the top 20 world tourist destinations by 2020 and that the sector would create 225,000 additional jobs by then – and in so doing, contribute about R500bn to gross domestic product (GDP).

The growing importance of tourism to the economy was highlighted by Statistics South Africa data which showed that in 2011 the direct contribution of tourism to GDP rose by 5% to R84.3bn — well above the 3.1% growth in the economy in 2011-12. Domestic tourism expenditure expanded to R101bn in 2011 - from R69bn in 2010.

Closer to home, the research report commissioned by the Joburg Tourism team also reflected results which underline the importance of tourism to the local economy. The report begins by briefly assessing tourism at an International and National level before focusing specifically on Gauteng. The last part of the report focuses entirely on Johannesburg as a region, in order to provide insight into the current sector trends as well as the value of the sector within the region.

The report concludes that the estimated direct spend from tourism related activities for 2012 was approximately R35bn. When taking economic multipliers into effect, this number rises to just under R70bn. Given that the Gross Regional Product (GRP) for Johannesburg was R363bn for 2012, this means that the overall contribution to the regional economy by the Tourism Sector is just under 20% of GRP.

This is a sizeable economic contributor, and is in line with Johannesburg’s Growth & Development Strategy, where tourism is identified as a significant economic growth imperative and an important catalyst for building a vibrant city. The city’s leadership appreciates its role in creating an enabling and supportive environment in which the private sector can thrive and feel confident to invest in the tourism sector and create new and much-needed jobs, while also serving as a catalyst for the SMME sector, in order to create a vibrant second economy.

Despite all the economic and tourism industry challenges faced at both a global and a local level, the last quarter of the 2012/2013 financial year has brought pleasing news for the tourism sector, both nationally and for Johannesburg – which is set to be the most popular destination in Africa with a projected 2.54 million international visitors expected to visit the City in 2013.

As we draw close to the conclusion of the integration and winding up of JTC, a company that has brought the world to Johannesburg for the past 10 years, it is hoped that Tourism in Johannesburg will continue to flourish under the Group Communication and Tourism Department at the City.


Section 6: Acting Chief Executive Officer’s Report

Phelisa Mangcu

ACTING CHIEF EXECUTIVE OFFICER

The year has drawn to a close amidst sustained marketing and promotional activations in diverse global and local arenas, as well as pleasing results to report on in the tourism sector as a whole. The exciting news regarding Joburg’s position as Africa’s leading destination in the third annual Mastercard Global Cities Index was matched by our achievements in the ICCA rankings, which are exceptional.

As indicated in the operational report which follows, our marketing efforts have included exposure for Destination Joburg on a broad range of forums – from the Hotel Investment Conference Africa [HICA] and Indaba, to IMEX, ITB, The International Hotel and Investment Forum [IHIF] and the Cannes Film festival – the latter promoting Joburg as an attractive destination for both local and foreign investment in the tourism and film industries respectively.

To quote MMC for Economic Development: Ruby Mathang, “The city’s leadership remains focused on positioning Joburg not only as the continent’s leading business hub and vibrant all year round leisure and lifestyle destination, but also as offering plenty of opportunities as a base for tourism investments.”

From both a commercial, as well as a business events perspective, the video, film and creative industries are key for Joburg and we need to work at raising our profile globally. The Cannes initiative focused on creating strategic partnerships and networks with relevant industry players both in the local and international arena, while also positioning and promoting the City’s world class infrastructure, locations, facilities and heritage to the international filmmaking industry.

In association with stakeholders, our Convention Bureau continues with its sustained bidding efforts and there is no doubt that these are bearing fruit, contributing substantial economic benefits to our local industry. In addition to an impressive and ever-increasing list of international business events choosing Joburg as their host city, the city continues making impressive strides in the global arena, with the Joburg Convention Bureau recently announcing and the city’s dramatic improvement in ICCA rankings – an astounding 92 places - from 234 to 142 in the world!

ICCA Rankings are announced annually by the International Congress and Convention Association, based on the number of rotating international association meetings hosted in a particular destination. ICCA is now one of the most prominent organisations in the world of international meetings. It is the only association that comprises a membership representing the main specialists in handling, transporting and accommodating international events. ICCA's network of over 950 suppliers to the international meetings industry spans the globe, with members in 88 countries.

Joburg’s dramatic improvement in its ICCA rankings is thanks to a collaborative effort with our industry partners, peers and stakeholders. Last year our Convention Bureau embarked on an intensive consultation with the industry during the course of refining our strategy related to hosting business events in Joburg. This has resulted in better understanding, collaboration and sharing of information crucial to the ranking process.

The Convention Bureau team is delighted, placing the credit with the streamlined approach emanating from the formation of and support received from the South African National Convention Bureau [SANCB] and their regional counterpart, the Gauteng Convention and Events Bureau [GCEB].

Under Group Communications and Tourism, it is envisaged that tourism will continue to grow and thrive and that Johannesburg will continue to claim its rightful place on the international map as Africa’s leading destination.


Section 7: Acting Chief Financial Officer’s Report

Gavin Pringle

ACTING CHIEF FINANCIAL OFFICER

The City of Johannesburg conducted an institutional review and it was decided to re-integrate Johannesburg Tourism Company NPC operations into the City of Johannesburg. The effective date was 31 May 2013. The result of this process was a loss of R0.9 million on transfer of assets and liabilities that were integrated at 31 May 2013 into the City. Excluding the loss on transfer of functions to the City of Joburg, the loss for the year was R17.6 million.

Revenue

Income realised reduced to R0.4 million during this financial year, as no subsidy was obtained from the City. The subsidy in the previous year was R39.9 million.

Expenditure

Expenditure reduced from R39 million to R18 million, as a result of salaries being paid by the City of Johannesburg from 1 December 2012. Personal costs comprised 28% of expenditure. As a portion of its costs were also being paid by the City of Joburg, these cannot really be compared.

Financial Position

Assets and Liabilities

The following assets and liabilities were taken over by the City of Joburg (figures in millions)

Assets

Fixed Assets 1.8

Intangible Fixed assets 1.0

Trade and other receivables 1,5

4.3

Liabilities

Accounts payable and provisions (3.3)

Finance Lease (0.1)

(3.4)

Net Assets transferred 0.9


Statement of Financial Performance for the Year Ending 30th June 2013

Actual Budget

R’000 R’000 Variance

Gross revenue 49 49 -

Operating costs (17 997) (14 491) (3 506)

Gross Profit / (Loss)

(17 948) (14 442) (3 506)

Operating (deficit)/surplus

Interest Expense

Interest Income 344 - 344

Loss on transfer of Assets and Liabilities

-

Surplus / (Deficit) before tax

(17 604) (14 442) (3 162)

Taxation

Surplus after tax 17 604) (14 442) (3 162)

Note

There is no taxation payable by the entity, as the entity is registered as a section 21 company and is exempt from Income Tax in terms of Section 30 of the Income Tax Act.

Company Five-Year Review

The key financial indicators relevant to the Company’s performance since 2009 are summarized below. The Company is a Municipal Owned Entity of the Johannesburg Metropolitan Municipality and receives an annual grant from the City, except for the current year, as the operation was in the process of being transferred into the City of Joburg’s operations. Other forms of revenue are generated through sponsorships of events and other forms of “in-kind” support, as well as – on a much smaller scale - the renting-out of its meeting facilities at the Soweto Tourism Information Centre in Kliptown. The financial position at 30 June 2013 for assets and liabilities is nil, as the operations have been transferred to the City of Johannesburg.


2013 2012 2011 2010 2009

Key financial figures

Total assets Nil 21 178 14 310 10 086 42 337

Total equity Nil 16 726 9 215 (10 579) (9 579)

Total equity and liabilities Nil 16 726 14 310 (14 339) 42 337

Bank balance Nil 15 741 8 736 (5 161) 3

Capital expenditure Nil 1 190 1 486 7 5 747

Revenue 392 46 484 33 360 41 319 24 223

Grant and Subsidies Nil 39 917 31 616 24 104 22 475

Employee costs 5 060 11 503 9 633 9 219 8 622

Finance costs 42 76 161 185 161

Surplus / (loss) before tax (17 604) 7 534 4 275 (3 759) (12 208)

Surplus/ (loss) for the year (17 604) 7 534 4 275 (3 759) (12 208)

Cash generated from operations

(15 601) (8 532) 10 705 (1 296) (13 109)

Net cash from operating activities

137 202 10 705 (1 482) (12 639)

Net cash used in investing activities

0 (1 226) (1 633) -0.081 (5 523)

Net cash from/(used in) financing activities

-139 1 025 1 333 -191 12 578

Other

Employees (numbers) Nil 26 26 26 26


Section 8: Statement of Responsibility

The directors are responsible for the preparation, integrity and fair presentation of the financial statement of the Entity. The financial statement presented on Page 185 has been prepared in accordance with Generally Recognised Accounting Practice (GRAP) and include amounts based on judgement and estimates made by the management.

The directors are responsible for the preparation of the other information in the annual report and are responsible for both its accuracy and its consistency with the financial statements. The going concern basis has been adopted in preparing the financial statements. The directors have no reason to believe that the entity will not be a going concern in the foreseeable future, based on the forecast and available cash resources. Refer to the Directors report on Page 189 with regard to the appropriateness of the going concern assumption for the preparation of the financial statements.

The Auditor-General, who was given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the Board of Directors and committees of the Board, has audited the financial statement. The directors believe that all representations made to the Auditor-General during their audit are valid and appropriate. The Auditor-General’s report is presented on Page 222. The financial statements were approved by the Board of Directors on 28/11/2013 and signed on its behalf by Chairperson of the Board, Hendrik Wessel Roodt.


CHAPTER TWO

GOVERNANCE

KEY ACHIEVEMENTS

Stable leadership during transition from winding down Joburg Tourism Company and moving the operation to the City of Johannesburg Metropolitan Municipality.


Section 1: Corporate Governance Statement

The Board endorses the principles and guidelines espoused by the King III Report on corporate governance. In doing so, the directors recognise the need to conduct the affairs of the Company with integrity and in accordance with the accepted norms applicable to corporate practices. The requirement for openness and accountability is recognised as an inclusive process that gives due recognition to the importance of all stakeholders, with respect to ensuring the continued viability and sustainability of the Company’s operations. Despite the ongoing integration and winding up process, corporate governance is treated as an essential process that continues to receive the attention of the Board to ensure that quality standards are set and achieved. The Directors consider that in the period under review, the Company has complied substantially with the relevant aspects of best practice and corporate governance.

Ethical Leadership

The board provides effective leadership based on a principled foundation and the entity subscribes to high ethical standards. Responsible leadership, characterised by the values of responsibility, accountability, fairness and transparency, has been a defining characteristic of the entity since the company’s establishment in 2003. The fundamental objective has always been to do business ethically, while building a sustainable company that recognises the short- and long-term impact of its activities on the economy, society and the environment. In its deliberations, decisions and actions, the board is sensitive to the legitimate interests and expectations of the company’s stakeholders.

Corporate Governance

The entity applies the governance principles contained in King III and continues to further entrench and strengthen recommended practices in our governance structures, systems, processes and procedures. The Board of Directors and Executives recognise and are committed to the principles of openness, integrity and accountability advocated by the King III Code on Corporate Governance. Through this process, shareholders and other stakeholders may derive assurance that the entity is being ethically managed according to prudently determined risk parameters in compliance with generally accepted corporate practices. Monitoring the entity’s compliance with King Code on Corporate Governance forms part of the mandate of the audit committee. The entity has complied with the Code in all respects during the year under review. The Board of Directors has incorporated the City of Johannesburg’s Corporate Governance Protocol in its Board Charter, which inter alia regulates its relationship with the City of Johannesburg as its sole member and parent municipality in the interest of good corporate governance and good ethics. The Protocol is premised on the principles enunciated in the King Report for Corporate Governance for South Africa 2009 (King III).The Company steadfastly consolidated its position in respect of adherence to the King III report on Corporate Governance. The entity practices are, in most material instances, in line with the principles set out in the King III Report. Ongoing steps are however taken to align practices with the Report’s recommendations and the Board continually reviews our progress to ensure that we improve our Corporate Governance. During the year under review, the Company entrenched its risk management reviews and reporting and compliance assessments were conducted in terms of the Companies Act and the Municipal Finance Management Act (MFMA). The annual Board assessments and evaluations were conducted and an annual report for the previous year was effectively completed in accordance with the terms of section 121 of the Municipal Finance Management Act.


Corporate Citizenship

The board and management recognise that the entity is formed under a political structure. As such, it has a social and moral standing in society with all the attendant responsibilities. The board is therefore responsible for ensuring that the entity protects, enhances and invests in the well-being of the economy, society and natural environment, and pursues its activities within the limits of social, political and environmental responsibilities outlined in international conventions on human rights.

Compliance with laws, rules, codes and standards

The board is responsible for ensuring that the entity complies with applicable laws and considers adhering to non-binding rules, codes and standards.

Corporate Code of Ethics

Corporate Governance is concerned with structures and processes for decision-making, the exercising of responsibility and accountability, starting at the highest level of the organisation and cascading down to the lower levels. The directors have accordingly established mechanisms and policies appropriate to the company’s business and in keeping with its commitment to best practices in corporate governance. In particular, the Board has continued to review policies and procedures for the Financial, Human Resource and Procurement Management in the Company. The code of ethics was also reviewed during the year under review. The Company is committed to:

The highest standards of integrity and behaviour in all its dealings with its stakeholders and society at large;

Carrying on business through fair commercial and competitive practices;

Removing discrimination and enabling employees to realise their potential through training and development of their skills; and

Being responsible with regard to environmental and social issues.


Section 2: Board of Directors

Until 11 March 2013, the Joburg Tourism Board was comprised of the following members:

Mathews Moavodi Phelisa Mangcu Shelley Jean Childs Chairman Acting Chief Executive Officer Non-Executive Director (retired 11 March 2013)

Norman Mametja Wessel Roodt Karen Parirenyatwa Non-Executive Director Non-Executive Director Non-Executive Director (retired 11 March 2013)

Nomvuyiso Batyi Neren Rau Non-Executive Director Non-Executive Director (retired 11 March 2013)


Meeting attendance

Directors Board Risk & Audit

Committee

Human Resource & Remuneration Committee

Marketing Committee

No. of meetings held 8 3 3 *Norman Mametja Retired 11/03/13

5/5 3

Nomvuyiso Batyi (Chairman of the Marketing Committee)

6 3

Mathews Moavodi 9

Wessel Roodt (Member of the HR & Remuneration Committee and Member of Marketing Committee)

8 2 3

Karen Parirenyatwa (NED and member of the Audit Committee)

5 5

*Shelley Childs (Chairman of the HR and Remuneration Committee)

4/5 3

Phelisa Mangcu (Acting CEO)

9 7 3 3

*Neren Rau (NED and member of the Audit Committee)

4/5 3

Albert Torres (Independent Audit Committee Member)

7 7

Cleopas Sanangura (Independent Audit Committee Member)

8

Neren Rau, Shelley Childs and Norman Mametja were retired on 11 March 2013


Section 3: Board Committees

Human Resource & Remuneration Committee

Marketing Committee

Risk & Audit Committee

Section 4: Director’s Remuneration

Non-Executive Directors’ Remuneration

The Non-Executive Directors are paid on an attendance basis. During the year under review, the remuneration amounted to the totals indicated below:

Name FEES OTHER TOTAL

1 Connie Molusi - R59,512.50 R59,512.50

2 Norman Mametja R39,435.00 R36,457.50 R75,892.50

4 Bongani Biyela - R12,150.50 R12,150.50

6 Wessel Roodt R52,830.00 R54,315.00 R107,145.00

7 Nomvuyiso Batyi R31,992.00 R14,880.00 R46,872.00

8 Shelley Childs R42,408.00 R45,384.00 R87,792.00

9 Karen Parirenyatwa R40,920.00 R48,360.00 R89,280.00

10 Mathews Moavodi R74,400.00 R52,076.25 R126,476.25

11 Nadira Singh - R14,880.00 R14,880.00

Total R281,985.00 R338,015.75 R620,000.75


Previous 5 Years Results

June 2013 June 2012 June 2011 June 2010 June 2009

Surplus / (loss) before tax (17 604) 7 534 4 275 (3 759) (12 208)

Surplus/ (loss) for the year

(17 604) 7 534 4 275 (3 759) (12 208)

Cash generated from operations

(15 601) (8 532) 10 705 (1 296) (13 109)

Net cash from operating activities

137 202 10 705 (1 482) (12 639)

Net cash used in investing activities

0 (1 226) (1 633) -0.081 (5 523)

Net cash from/(used in) financing activities

-139 1 025 1 333 -191 12 578

Other

Employees (numbers) Nil 26 26 26 26

Independent Audit Committee Members’ Remuneration

Senior Management Remuneration

Basic Salary Allowances & Contributions

Bonus Total

Phelisa Mangcu (CEO)

R575,729.98 R239,483.00 - R815,275.98

Simphiwe Bana R613,926.80 R120,000.00 - R733,926.80

Total

Section 5: Company Secretarial Function

The Company Secretary for the period until 30 June 2013 was Statucor Pty (Ltd).

Members of the Board have access to the advice and services of the Company Secretary. The Directors are also entitled to obtain independent advice at the expense of the Company where necessary.

The Company Secretary assisted the Board during the year in identifying issues for the directors’ attention. The Company Secretary monitors compliance with the requirements of


the Companies Act, the Municipal Finance Management Act, and other relevant legislation, including the approved Corporate Governance Protocol and Board Charter.

The company does have an approved risk register, which was reviewed in the year and approved by the Audit Committee. However, from the 3rd quarter, the focus of risk management was on the integration and winding up process, which is currently underway.

Breach of Governance Procedures

During the year under review, strict governance procedures have been adhered to throughout the period. No cases of breach of governance have been identified.

Conflicts of Interests

Directors and Senior Management are required to avoid a situation where they have or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the company’s interests. Procedures have been put into place for the disclosure by the directors of any such conflicts and these procedures have been operating effectively.

Section 6: Risk Management and Internal controls

Effective risk management is integral to the company’s objective of consistently adding value to the business. Management is continuously developing and enhancing its risk and control procedures to improve the mechanisms for identifying and monitoring risks.

Operating risk is the potential for loss to occur through a breakdown in control information, business processes and compliance systems. Key policies and procedures are in place to manage operating risk involve segregation of duties, transaction authorisation, supervision, monitoring and financial and managerial reporting. Financial risk management is dealt with in the financial statements on page 32.

In order to meet its responsibility with respect to providing reliable financial information, the entity maintains financial and operational systems of internal controls. These controls are designed to provide reasonable assurance that transactions are concluded in accordance with management authority, that the assets are adequately protected against material loss or unauthorised acquisition, use or disposal and that transactions are properly authorised and recorded. The system includes a documented organisation structure and visions of responsibility, established policies and procedures, including a Code of Ethics to foster a strong ethical climate, which are communicated to the parent municipality. The entity also includes the careful selection, training and development of people.

Johannesburg Risk Assurance auditors monitor the operation of the internal control systems and report findings and recommendations to management and the board of directors. Corrective actions are taken to address control deficiencies and other opportunities for improving the system as they are defined. The board, operating through its audit committee, provides supervisions of the financial reporting process and internal control systems. There are inherent limitations in the effectiveness of any system of internal control, including the possibility of human error and the circumvention or overriding of controls.

Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation and the safeguarding of assets. Furthermore, the effectiveness of internal control systems can change with circumstances. With the institutional review, business continuity plans which exist to ensure the continuity of business-critical activities are managed and controlled by the City of Johannesburg Metropolitan Municipality.

The biggest risk that needed to be mitigated during the financial year was the transfer of operation and staff from Johannesburg Tourism Company NPC to the City Johannesburg Metropolitan Municipality. This process was managed through constant reporting and feedback to the Audit


Committee and City of Johannesburg Governance Department, as well as to City of Johannesburg Group Communications and Tourism department.

Section 7: Internal Audit Function

The entity’s internal audit function is managed by the City of Johannesburg Risk Assurance function. It has a specific mandate from the audit committee and independently appraises the adequacy and effectiveness of the company’s systems, financial internal controls and accounting records, reporting its findings to local and divisional management and the auditorAuditor-General as well as the Audit Committee. Johannesburg Risk Assurance reports into the Audit Committee.

The internal audit coverage plan is based on risk assessment performed at each operating unit. The coverage plan is updated annually - however in the current year there was no work performed because of the institutional review process which incorporated the operations into those of the City of Johannesburg in the financial year.

Johannesburg Risk Assurance Services (JRAS), the Internal Audit Wing of the CoJ, was contracted to do an internal Audit for the Company in the financial year under review. The Audit Coverage Plan which was approved, was risk based. The coverage plan was aligned to the strategic risks as identified by the company in the risk register.

In the fourth quarter, JRAS were tasked to perform a close out internal audit focusing on and monitoring risks relating to the integration and winding up process of the company. The internal audit process also focused on how the internal and external audit findings for the preceding year had been addressed.

Information Technology (IT) Governance

Despite Johannesburg Tourism Company being a small entity, matters relating to IT governance are taken very seriously. The company had an IT policy in place and systems and procedures pertaining to IT Governance were continuously monitored and improved upon.

Section 8: Corporate Ethics and Organisational Integrity

The existing policies dealing with Financial and Human Resource Management provide a framework for the ethical conduct of the company and its employees. This policy framework sets high standards for the ethical conduct of management and employees - the details of which are incorporated in letters and contracts of employment without exception. Management was in the process of reviewing the organisation’s code of ethics at the end of the financial year.

Section 9: Sustainability Report

Sustainability Vision

In support of its vision of being Africa’s leading business tourism destination, JTC is committed to contribute to sustainable development in the workplace, as well as the industry sectors and communities in which we operate. Our sustainability policy guides the responsible management of the social, economic and environmental aspects of our work.

Sustainability Policies & Strategies

JTC is committed to:

Promoting sound corporate governance practices and ethical responsibility.

Providing a safe working environment in which the health of our people is protected and their opportunities for self-development are enhanced.

Promoting cultural diversity and equity in the workplace.


Minimising adverse environmental impacts.

Providing opportunities for social and economic development in the communities in which we operate.

Section 10: Corporate Social Responsibility Report

Transformation & Empowering Employees

Human Resources Management

Johannesburg Tourism Company recognises that one of our competitive sources of value is human resources, the cornerstone of achieving strategic goals and business objectives.

In order to attest to the aforementioned, JTC’s Human Resources practices, as well as the recently updated policies and procedures:

o Are integral parts of an overall human resource strategy, geared to support business strategies.

o Are designed to motivate and reinforce superior performance.

o Are designed to motivate and reinforce living the company values in an outstanding and demonstrative manner.

o Are designed to attract and retain high quality individuals with an optimum mix of competencies.

o Encourage the development of competencies required to meet future business needs.

o Are based on the premise that employees should share in the success of the company.

o Are aimed at securing the commitment of our people to Johannesburg Tourism Company’s goals and purposes via the optimum mix of financial and non-financial rewards.

o Are congruent with legislation.

All Staff were taken over by COJ as from 1 December 2012.

Environmental Responsibility

As a destination marketing organisation, JTC promotes and encourages environmental responsibility, (promoting green meetings, waste management, recycling, management of carbon emissions/footprints) and publicises the City of Johannesburg’s efforts to manage carbon emissions and position itself as a leader in this field.

While working to attract more conventions to the City, Johannesburg strives to ensure that the carbon footprint generated from the hosting of events and conferences is monitored, measured and offset.

Stakeholder Engagement

JTC engages with a variety of stakeholders in the travel, tourism and hospitality industries in an effort to leverage support for and optimise its marketing initiatives, both locally and overseas. These include:

Relevant local, provincial and national government departments including:

o Department of Economic Development (City of Johannesburg)

o EXSA (Exhibition Association of Southern Africa)

o Gauteng Tourism Authority [GTA]


o ICCA (International Congress and Convention Association)

o JAMMS (Joint Association Members’ Marketing Forum)

o JCCI (Johannesburg Chamber of Commerce & Industries)

o JCTA (Joburg City Tourism Association)

o JDA (Johannesburg Development Association)

o Midrand Tourism Association

o SA Tourism

o SAACI (South African Association for the Conference Industry)

o SATSA (Southern African Tourism Services Association)

o SOJO (South of Joburg Forum for Business & Tourism)

o STA (Sandton Tourism Association)

Socio-Economic Development

At JTC we have been driven by very dominant economic development guidelines in the course of our work – in order to develop and grow the informal sector in tourism in a sustainable way, creating business linkages, more jobs and a vibrant second economy in so doing. We facilitate with training of SMME tour operators and guesthouses, accreditation of tour guides, and also facilitate the grading of guesthouses. In addition, we support guides and tour operators by promoting them and referring work to them. We use every opportunity to support and promote tourist attractions by publicizing them, as well as including them in our itineraries when hosting visiting media and trade familiarization trips to Johannesburg.

JTC has continued to provide internships for university tourism graduates, thus providing them with experience vital to enter the job market.

JTC has a procurement policy that promotes BEE vendors, as well as programmes aimed at promoting the development of SMME’s and students in the Tourism Sector.

Section 11: Anticorruption and fraud

In line with the winding down of Joburg Tourism, this function has been transferred to the City of Johannesburg Metropolitan Municipality.


CHAPTER THREE

SERVICE DELIVERY PERFORMANCE

Section 1: Highlights and Achievements

The city continues making impressive strides in the global arena, with the Joburg Convention Bureau recently announcing and the city’s dramatic improvement in ICCA rankings – an astounding 92 places - from 234 to 142 in the world!

Joburg Tourism receives a PMR Diamond Arrow Award for the third consecutive year, scoring the highest score possible for the CoJ department which does the most to promote tourism and investment into the city.


Section 2: Financial Performance

a) Revenue The Company posted revenue of R 0.392 million for the year. No subsidy was received in the current year (previous year R39.9 million received).

b) Results of Operations As a result of the transfer of functions and assets to the City of Johannesburg Metropolitan Municipality, personnel costs reduced from R11.5 million to R5 million, as salaries were paid by the Municipality as of 1 December 2012. Other operating expenditure also reduced from R26 million to R11.8 million as a result of this transfer of function.

c) Cash Flow Net cash flow from operating activities reduced from R 0.2 million to R 0.1 million. There were no investment activities during the year because of the transfer of assets to the City of Johannesburg Metropolitan Municipality. At year end, there was no cash on hand as this was transferred to the City of Johannesburg Metropolitan Municipality.

d) Statement of Financial Position The company is now dormant and has no assets and liabilities due to the transfer to the City of Johannesburg Metropolitan Municipality.

Section 3: Capital Projects

There were no capital projects during the year under review, as the entity did not have a CAPEX budget, due to the transfer to the City of Johannesburg Metropolitan Municipality.

Section 4: Performance against IDP and City Scorecard

Set out below, is an analysis of the entities performance against its KPIs for the financial year 2012/13 as set out in the City’s IDP scorecard.

As will be seen, significant progress against the set targets has been made. This indicates important successes by the entity, and our partner organisations in improving conditions in and the economic performance of, in particular, the inner city, and the initial focus of the entity’s work. The data shows that in almost all instances the entity has met or bettered its targets. This can be attributed to solid corporate governance, sound management and management systems, clearly focused objectives, and efficient and effective staff. It also demonstrates the effectiveness of the entity business model in delivering on the mandate of the CoJ to promote area-based economic development and area-based regeneration.

The report analyses the performance of the entity in terms of the SDBIP scorecard, measuring performance in terms of both the entity’s impact and its financial and resource management.


KPA KPI UNIT OF MEASURE

PRIOR YEAR CURRENT YEAR COMMENT ON 2012/13 ACHIEVEMENT 11-Dec 2012/13

TARGET ACTUAL VARIANCE TARGET ACTUAL* VARIANCE

1. Improve the profile of Johannesburg both on the continent and internationally as a tourist destination

Joburg to host national conventions, meetings and events with stakeholders

Number 4 14 250% 9 5* -44% Target was not met due to the number of opportunities available to Joburg tourism.

Facilitate Tourism Packages that include Joburg on itineraries with discounted rates

Number 4 5 275% 6 6* 0%

Develop E-marketing infrastructure

% 100% 0% 0% 100% -95% There has been minimal activity in this are due to the institutional review process.

Host regular meetings and forums with key tourism stakeholders.

Number 4 19 375% 12 8* 3% Target was not met due to the number of opportunities available to Joburg tourism.


Stage international brand activations

Number 3 9 200% 3 8* 167% Target was exceeded due to more brand activation opportunities available to Joburg Tourism

Participate in international trade shows/exhibitions

Number 7 11 57% 10 11* 10% Target was exceeded due to more trade show opportunities available to Joburg Tourism

Participate in national trade shows/exhibitions

Number 3 7 133% 2 10* 400% Target was exceeded due to more trade show opportunities available to Joburg Tourism

Conduct Regional and national trade/road shows

Number 5 -17% 6 5* -17% Target was not met due to the number of road show opportunities available to Joburg tourism in partnership with SA Tourism offices abroad


Host familiarisation trips for media and trade

Number 10 31 210% 25 24* -4% Target was not met due to the number of hosting opportunities available to Joburg tourism in partnership with SA Tourism offices abroad

Delegate Boosting Events

Number 4 5 25% 4 3* -25% Delegate boosting opportunities are dependent on bids being shortlisted or won. Only three bids qualified for delegate boosting.

2.Expand the total volume and value of exports of goods and services in real terms

Improve the City of Johannesburg ICCA Ranking from 196 to 150

Number 50 234 6% 50 142* -5% Joburg Tourism actually overachieved because the ranking is below 150.

Exhibitions and events hosted by the City of Johannesburg

Number 6 9 0% 12 18* 50% Target was exceeded due to more hosting opportunities available to Joburg Tourism.


Increase the number of buyers to Meetings Africa by 10%

% 0.1 0.656 556% 0.1 45%* 350% Due to a collaboration with SA Tourism and the industry, 300 buyers attended in 2013, 30% increase in buyers compared to 205 buyers in 2012.

Implement new information office in Johannesburg

Number 3 3 0% 1 0* -100% Target was not met as negotiations Johannesburg Property Company are still ongoing.

Produce research finding on market trends

Number 2 15 650% 2 2* 0%

International bids won jointly with stakeholders

Number 6 8 33% 7 0* -100% The team did submit bids. The announcements will be made in the new fiscal year

Bids placed for the MICE Industry

Number 7 22 214% 15 14* -7% Placing of bids in dependant on the opportunities available to bid and host.


Facilitate incentive trips

Number 4 2 -50% 4 2* -50% Target was not met due to the number of opportunities available to Joburg tourism in partnership with SA Tourism offices abroad.

3.Improvement in Score in Global Insight economic diversification measure

Facilitate the grading of non-hotel establishments

Number 25 34 36% 10 8* -20% The target was not met due to Gauteng Tourism and Grading Council of South Africa having only renewed their MOU for the funding in March 2013.

Facilitate the accreditation of Tour Guides

Number 25 8 -68% 10 0* -100% Target not met yet as the training of the Tour Guides was still in progress. 17 Joburg based Tour Guides were being trained through Gauteng Tourism for accreditation in Mandarin and French languages. Final figure will be release once training is completed.


Facilitate the participation of SMME Associations in two major industry exhibitions

Number 3 21 6 2 1* -50% Target was not met due to the number of opportunities available to Joburg Tourism.

Facilitate the integration of youth ambassadors into the industry

Number None None None 10 0* -100% As part of the institutional review this function moved to the Economic Development Department

Develop Tourist Routes

Number None None None 2 2* 0%

4.Effective Financial Management

Operational Budget Spent

% 100% 89% 11% 100% 123% * 23% The transfer of expenditure payments took longer than anticipated.

Achieving Unqualified Audit

% 100% 100% 0% 100% 100%* 0%

Maintenance of GRAP Compliant Asset Register

% 100% 95% -5% 100% 100%* 0%

Capital Budget Spent

% 100% 70% -30% 100% 100%* 0%


Maintenance of Management Systems

% 100% 100% 0% 100% 100%* 0%

5. Human Capital Management

Implementation of Skills Audit Findings

% 100% 100% 0% 100% 0%* -100% Staff were moved to COJ on 1 December 2012 and skills plan would be those of COJ

Succession Planning

% 100% 100% 0% 100% 0%* -100% The HR manager resigned and the substitute personnel from the City only dealt with institutional review matters.


Key Performance /Functional Area Service Delivery Reporting

CONVENTIONS AND EVENTS BUREAU

Operations perspective:

OBJECTIVES

Guided by the National Tourism Act and City of Johannesburg’s Economic Development mandate, Johannesburg Tourism’s objectives are as follows:

To increase the number of tourists to Joburg

To extend the length of stay of tourists

To increase tourist spend in the City

To extend the geographical spread of tourists across the city

To level out the seasonality spread of tourists

To support Tourism SMMEs

To ensure the availability of world class tourist services

Focus areas to achieve the above include:

Promoting and positioning Johannesburg as a prime business tourism destination, focusing across a range of sectors (meetings, incentives, conventions, conference, exhibitions, sports and leisure tourism).

Leveraging on the richness of the Joburg lifestyle to promote leisure tourism – positioning Joburg as a cosmopolitan African hub for signature events, culture, fashion, music, food, entertainment, nightlife, shopping/retail and sports, to induce visitors to increase the length of their stay and their spend in the city, while they enjoy experiencing its diversity and vibrancy.

Providing excellent visitor services using a variety of infrastructure, tools and platforms (including ICT technology, printed collateral, etc) to disseminate information about Johannesburg.

Providing excellent visitor services, ensuring the ready availability of high quality walk-in tourist information services.

Undertaking Tourism Market Research including: trends, analysis and forecasting.

Improving the diversity of the tourism product offering through targeting and promoting different sectors that contribute to tourism growth in Johannesburg (e.g. Business, Sports and Medical Tourism).

Ensuring the inclusion of SMMEs in the tourism sector.

EXHIBITIONS (INTERNATIONAL AND NATIONAL)

In order to attract and grow leisure tourism to Johannesburg, JTC participated at a number of national, regional and international business tourism exhibitions, trade shows and road shows, which took place in the first three quarters of JTC’s financial year, as outlined below.

South African Association for the Conference Industry (SAACI) Conference and Exhibition [29 - 31 July 2012]

Attended by South Africa’s business tourism industry leaders, the annual SAACI Conference is the country’s leading local annual industry conference. The conference has been structured to be hosted on a rotational bass at different South African venues each year.


The 2011 SAACI Conference was hosted in Cape Town, while the City of Johannesburg had the opportunity to host SAACI Conference 2012. The conference was attended by the Acting CEO and two officials from the Convention Bureau.

The objectives for attending the event were:

To keep abreast of the latest business tourism industry trends.

To network with industry stakeholders.

To seize available marketing opportunities and create top of mind awareness about Johannesburg as a business events destination and the Convention Bureau’s status as the city’s leading industry partner for business tourism.

JTC sponsored the following tour options for Congress delegates on Sunday 29 July:

Cradle of Humankind and Lion Park

Constitution Hill, Apartheid Museum and Soweto

Liliesleaf and the African Market

This activity was aimed at showcasing the City’s incentive options to visiting Professional Conference Organisers and Destination Marketing Companies.

JTC (Convention Bureau) was a partner for the SAACI Congress 2012


Introducing Team South Africa, the Co-ordinating Council of the South African National Convention Bureau. The members pictured here are from Provincial and City Convention Bureaus.

CIBTM [12 - 14 September 2012]

CIBTM is China's leading meetings, incentives and business travel exhibition which provides the ultimate platform for the world's leading suppliers to the MICE industry to meet top level buyers with strong purchasing power. The participation presents an opportunity to interact with buyers who are responsible for organizing and planning meetings, events and business travel, in China, Asia and the rest of the world.

The Objectives of exhibiting at CIBTM were to:

Meet with buyers/meeting planners who have the potential to bring meetings to Johannesburg.

Generate bid leads for Johannesburg.

Maintain existing relations with meeting planners.

Safeguard the city’s interests of gaining market share in the meetings industry.

Johannesburg Tourism Company exhibited at the South African Pavilion, in partnership with South African Tourism. Various meetings were held with international Association and Corporate buyers.


Joburg Tourism Booth at CIBTM


Profile of meetings held at the stand

Meetings with buyers were arranged prior to departure and the following leads were generated at the exhibition:

Leads for bids

Name Conference/Meeting Pax Duration/days Average spent p/d

Expected Economic impact

David Song

Global Mobile Connect Conference 2014

500 3 R 4 231 R 6 346 500

Vivian Chan

Global CEO Conference 2014

500 3 R 4 231 R 6 346 500

Li Ying China Sourcing Fair 2014 700 3 R 4 231 R 8 885 100

Expected economic impact R 21 578 100

The JTC team will follow up on these leads. The rest of the meetings were enquiries about incentive options in and around the city. This information was sent to buyers.

SITE Conference, [14 – 17 September 2012]

The SITE conference, attended by the Acting CEO, Phelisa Mangcu, is an interactive educational exchange, aimed at bringing together global leaders to provide insight into the growth of incentive travel worldwide. The keynote focus of the SITE 2012 conference was how the right time, right place and right people create the right experience. This was presented by Peter Greenberg, one of the leading commentators and a contributing journalist in the travel industry.

Other discussion areas/topics included:

China: more than an economic and manufacturing hub and an incentive travel mecca. Attendees were taken through the political and governmental regulations and given an understanding of the One-China policy. In addition to this, insight was provided on the growing outbound travel business in China.

Fundamentals in incentive travel: Attendees were taken through the standard practices of managing an incentive travel experience, from booking to execution.

Green growth and travels: a value added ingredient for lasting incentive experiences. Attendees were given a perspective from the key thought leaders regarding the role of travel and tourism in promoting sustainability.

Representing Destination Johannesburg, we learned the following from the world leaders responsible for growing the incentive travel market:

The importance of developing and encouraging authentic local experiences when hosting such groups.

An understanding of the Chinese outbound market – from culture to expectations.

The importance of entrenching the existing efforts towards sustainable tourism growth in our communities and environment.

Sports and Events and Tourism Exchange [12 - 14 September 2012]

JTC participated at the Sports and Events Tourism Exchange (SETE) which took place at the Inkosi Albert Luthuli International Convention Centre in Durban from 12 - 14 September 2012 [at stand number 48]. This was done in line with the JTC marketing strategy of positioning Joburg’s various


offerings to both local and international buyers and event planners as a destination of choice to host mega sporting events. Various meetings were held with international buyers, international sporting federations, as well as both local and international sport marketers.

The introduction of the Sports and Events Tourism Exchange (SETE) Exhibition and Conference has played an integral part in promoting the new “sports” trend within the industry. After the success of SETE 2011, it is believed that this event has become the annual Sports and Events Tourism gathering to attend in Africa.

The objectives for JTC’s participation included:

Pursuing bidding and hosting of major international events.

Promoting Joburg as a training destination for northern hemisphere athletes in their winter months.

Promoting Joburg as a destination for social participants in sport, with a focus on our golf courses, stadiums and hiking trails.

Increasing tourist volumes, spend and length of stay.

Promoting and also interacting with local and international federations and associations.

Showcasing Joburg’s experience and expertise in hosting and managing large international events.

Meeting in progress on Joburg Tourism’s Stand at the Sports & Events Tourism Exchange [SETE]

37th International Small Business Congress and Exhibition [15 – 18 September 2012]

JTC partnered with Osiba Research to host the 37th International Small Business Congress (ISBC) - Africa’s inaugural ISBC - and the post-ISBC learning sessions at the Sandton Convention Centre.

The objective of the partnership was to contribute toward SMME support, as well as ensuring that an event of this magnitude is a success. Part of the support offered by JTC included offering assistance with the Gala Dinner. JTC offered five complimentary conference tickets and 50 complimentary exhibition tickets to Johannesburg-based SMMEs, so that they could attend the Congress to gain more insight into SMME development. These tickets were distributed to Joburg associations so that they could extend the invitation to their members.

Speakers at the event included the Deputy Minister of Trade and Industry and the Gauteng MEC for Economic Development. At the welcome dinner, JTC’s PR and Communications Manager delivered a speech, entrenching the City’s commitment to SMME development and support of international meetings. The City of Johannesburg had an opportunity to address delegates during the gala dinner, where Cllr van Der Schyf, Chairperson of Section 79 Committee, delivered a speech.


One of the highlights of the Congress was the appointment of Ms Hlonela Lupuwana, CEO of the Small Enterprise Development Agency, to become the first ever African representative on the ISBC steering committee, occupying the important and strategic position of Vice President for Africa.

JTC (Convention Bureau) was a partner for ISBC 2012.

Laura Vercueil (JTC PR &Communication Manager) addressing ISBC delegates.

International Golf Travel Market [12 – 15 November 2012]

JTC participated at the International Golf Travel Market (IGTM), which took place in the Algarve, Portugal. This was done in line with the JTC’s marketing strategy of positioning Joburg’s various offerings to both local and international buyers and event planners, as a destination of choice to host mega sporting events.

A number of meetings were held with media and international buyers, predominately golf tour operators, whose main function is to sell Golf Packages to their clients. In order to enhance stakeholder relations, a representative from Joburg Gems was invited (at their own cost) to promote Joburg’s pristine golf courses. Visitors to the stand were shown a presentation about Joburg’s packaged golf offering. Buyers from across the globe showed an interest in expanding their product portfolio, by including exciting Joburg golf offerings and leisure tourism services in their packages.


JTC & Joburg Gems officials in meetings with hosted buyers at IGTM

Objectives for participation included:

Encouraging golf tour operators to sell Johannesburg’s packaged golf offerings.

Promoting Joburg as a destination for social participants in sport, exploring our golf courses, wild life experiences and leisure offerings.

Increasing tourist volumes, spend and length of stay.

Promoting and also interacting with media, golf product custodians, local and international buyers.

Joburg is already well positioned as a business and conference destination, therefore, by exhibiting and networking at IGTM, the City was marketed as a premier leisure and lifestyle destination through its magnificent golf facilities and international tournaments.

With IGTM’s continued growth and expansion, it remains one of the significant travel market platforms for JTC to exhibit at, with the objective of positioning the City as a sports, leisure and golfing destination.

The high number of buyers compared to previous years was one of the main highlights of this year’s IGTM. Official audited figures from this year’s show are not yet available from the organisers; however we have received the following approximate visitor/delegate figures from Peter Grimster – Exhibition Manager, Reed Exhibitions.

- 1,200 golf tourism delegates from 59 countries

- 730 exhibiting delegates

- 352 golf tour operators (buyers)

- 68 media

The South African Pavilion hosted two cocktail functions, one for the City of Tshwane and another for the South African Embassy, to promote South Africa as a key golfing destination. These functions enjoyed great exposure and attracted many participants, keen to hear about what South Africa has to offer the golfing industry - and of course to stand a chance of winning the prestigious ten day prize to South Africa, which included a two night stay in Johannesburg. Visitors and exhibitors were honoured to welcome South African Ambassador, Ms Keitumetse Matthews, as a guest of honour, to hand over the prize of a phenomenal ten day stay in South Africa to the lucky Sigi Reichardt, (Country Manager, Chief Editor -Travel Caddie / Golfresan.se).


Delegates at the cocktail function.SA Ambassador, Ms Keitumetse Matthews with Peter Walton (IAGTO CEO).

,..

South African officials at IGTM JTC official with hosted buyer and winner of the prize, a ten day in South Africa.

3. ICCA Congress [19 – 24 October 2012]

The International Congress and Convention Association is an annual gathering of industry players for a programme of education, networking and business opportunities. Attendees gather to connect, learn and think collectively about where the industry is heading and how organisations and individuals can gain the best possible return on investment.

The objectives of attending ICCA were as follows:

To meet with other convention bureaus and create networks that could generate leads for Johannesburg.

To keep abreast of industry developments.

To use the information obtained to improve Johannesburg’s performance in the MICE market.

Lessons learnt for Johannesburg

Best Cities Global Alliance

Opportunity for regional affiliates such as Joburg.

Business leads are exchanged between partners.


Clients rate cities and bureaus.

The only downside is the amount of resources required to manage the alliance.

State of International Association Meetings

ROI for associations is congress content, attendance and destination attractiveness.

The focus for bureaus should be on delegate boosting.

Working with association management companies

In order for Associations to grow – they need to expand internationally. The trend is that American, Asian and European Associations are growing internationally and the biggest growth is in emerging markets.

Key is to have full engagement with Association Management Companies.

Sales missions should include visits to local Association Management Companies.

Basics of bidding for associations

The Association Ambassador is the main lobbyist; he/she is supported by the bureau and shall have the glory (PR).

Marketing Awards

Bureaus must engage with local participants such as PCOs, delegates and the venue and brief all stakeholders about each campaign.

Bureaus must offer free tools to participants e.g. online apps to be shared on Facebook – owners’ page, association web pages etc. Meeting participants to promote/create a buzz and maximise this, as it is free.

Delegate boosting – the best way to show clients you care?

Strong country brand plays a role.

Leverage on current events.

Think globally and communicate locally.

Delegates still want to get info online, so delegate boosting should go hand in hand with online presence. Marketing approach should allow delegates to the talking when promoting a destination.

Produce a welcome video from the Mayor.

Momentum 94.7 Cycling Challenge [15 – 17 November 2012]


JTC participated in the 94.7 Cycling Challenge, which took place at the Sandton Convention Centre from 15 -17 November 2012. This was done in line with the JTC marketing strategy of positioning Joburg’s various offerings to promote domestic tourism. In addition to the actual race, the 94.7 Cycling Challenge included an exhibition area, where JTC exhibited for three days. All participants (cyclists and spectators) had an opportunity to visit the exhibition area for varying purposes - from registration to buying cycling products, only on offer at the Sandton Convention Centre exhibition.

Objectives for participation were to:

Promote Joburg not only as a business destination but also as a destination for social participants in sport, exploring our cycling experiences, as well as familiarization with our leisure tourism offerings.

Increase tourist volumes, spend and length of stay.

Create top of mind awareness of Joburg offerings as a mega events destination.

Create awareness of forthcoming events in the form of campaigns and educating the trade on Joburg’s offerings for their markets – in an effort to ensure that they include Joburg and surroundings in their itineraries, not only as a stopover or gateway.

Create a positive image about Johannesburg as a unique and inspiring destination.

JTC official working at the JTC stand


London World Travel Market [5 - 8 November 2012]

Staged annually in London, World Travel Market - the premier global event for the travel industry - is a vibrant must attend four-day business-to-business event, presenting a diverse range of destinations and industry sectors to UK and International travel professionals. It is a unique opportunity for the whole global travel trade to meet, network, negotiate and conduct business under one roof.

By attending World Travel Market, participants efficiently, effectively and productively gain an immediate competitive advantage for their business and stay abreast of the latest developments in the travel industry. As a driving force in the travel industry, WTM gives important impulses to a continuously growing market. Exhibitor sales of about 5 billion euro and an exhibitor satisfaction rate of 92 percent are evidence enough that supply and demand meet at the right place.

Again 2012 saw the major global economies continue to struggle, putting pressure on the demand for travel and tourism products. The global travel and tourism industry, along with UK holidaymakers, believe London and the UK had a successful summer, with more tourists visiting and the global perception of the city and country enhanced by the success of the Summer Olympic Games.

However, the future is not all that bleak and room for optimism remains. The World Travel Market 2012 Industry Report shows that contracts facilitated during the WTM 2012 are poised to reach £2 billion, following on from WTM 2011, which generated £1.653 million in travel industry contracts between exhibitors and buyers from the WTM Meridian Club contacts. Last year, almost two-thirds (65%) of the industry viewed South Africa as important as the other BRIC markets, after it was admitted to the group. Interestingly, almost two-thirds of the industry’s (63%) organisations have changed or are planning to adapt their business model to take advantage of the opportunities in the BRIC nations. The report still highlights China as the most important of the BRICS markets from an inbound tourism perspective. South Africa had a 26% vote in the top two positions for outbound tourism, 14% and 12% respectively, indicating a slight improvement.

Countries highlighted with travel and tourism potential are: Thailand, United Arab Emirates, Chile, South Korea, Kenya, Nigeria and Singapore. Nigeria is also highlighted in this year’s WTM Global Trends Report, in association with Euromonitor International. The reports reveals how the Nigerian film industry – dubbed Nollywood – has made the country the focal point of the African tourist industry, with Africans making use of the increase in no-frills airline routes to visit the country made famous in the movies.

Objectives for JTC’s participation:

JTC continues to seek opportunities to grow tourism, promote and entrench Johannesburg as the continent’s most multi-faceted and culturally diverse lifestyle destination.

JTC’s participation at the WTM trade show was to:

Launch and promote the Joburg Summer campaign;

Continuously entrench Johannesburg as the premier leisure, business, sports, cultural and lifestyle destination that offers superior facilities, first class services and brings with it the advantage of being home to world class leisure facilities.

Improve the travel trade’s knowledge about product offerings in Joburg.

Expose media to Joburg’s offerings and create an excellent rapport with media representatives.


JTC Activation function [6 November 2012]

Launched at WTM 2012, JTC’s summer campaign – Where Summer Never Sets – paid tribute to Joburg’s glorious weather, its irresistible vibrancy and the brilliant array of sights, sounds, activities and attractions on offer to residents and visitors – whether visiting for business or leisure. The campaign focused on promoting signature events that the City has to offer to all visitors and trade representatives. Members of trade, media and government officials were invited to the launch.

World Responsible Tourism Awards [7 November 2012]

As part of its CSI initiatives and brand awareness, JTC supported the Virgin Holidays Responsible Tourism Awards, in the Best Carbon Reduction Initiative, where Sawadee Reizen emerged as the winners of the category. Sawadee Reizen is a Dutch company, specialising in small group adventure tours, who identified that changing to direct “point-to-point” flights is the most effective way of reducing the carbon footprint of trips, resulting in a reduction in carbon emissions by an average of 10%. The judges were impressed by the clarity of Sawadee’s understanding of the issue, their acceptance that tourism contributes to the problem, and their willingness to begin addressing the problem.

JTC Acting CEO with WTM Chairperson and Sawadee representatives

JTC exhibited at the newly revamped South African Pavilion with other South African products including Tour Operators, Airlines, Hotels, and DMOs.

Activities at the JTC stand included:

Scheduled and walk-in meetings with trade, consumers and media.

Interviews with international media.

Walkabout by the SA Minister of Tourism.


WTM dailies front & back covers

Joburg Tour Packages

Electronic and print media coverage

JTC received good media exposure during WTM 2012. Some of the electronic coverage included coverage in:

Breaking Travel News – Interview posted on Youtube

World Travel Market Official Magazine

Travel Weekly for WTM dailies

In addition to the above, JTC took an A4 page advertising in the WTM Official Catalogue, which has a reach of over 70 000, readers including WTM exhibitors and visitors.


Lagos Tale of Two African Cities Business Exchange and Exhibition [3 – 6 October 2012]

Background to the Business Exchange and Exhibition Week

In the bid to strengthen the good bilateral relationships that already exist politically, socially and economically between Nigeria and South Africa, the South African High Commission Office hosted a SA - Nigeria Week in Lagos, themed “Tale of 2 African Cities - Joburg & Lagos” – from 3 to 6 October 2012.

The Tale of Two African Cities is a bilateral initiative between the two countries, using their major entry points and destination cities (Johannesburg and Lagos) as representatives, as they both hold similar positions and importance. This is an on-going programme intended to unveil richer and more meaningful experiences that exist between these cities.

Included in the schedule of events, was a three day exhibition in which the SA High Commission invited SA companies based in Lagos and Nigerian companies to participate, showcasing their products and offerings. The companies included SAA, Standard Bank and large hotel groups. The focus of the project was to foster bilateral relations in trade, investment, tourism and civil society.

Event Schedule

The comprehensive three day programme for 2012 included presentations on business, trade and investment opportunities, as well as the following:

Official opening of business sessions and exhibition by the Executive Mayor of the City of Johannesburg, Cllr Parks Tau

Showcase of food and a premium wine tasting

Business gala dinner

Jazz night

Golf clinic

Collaborative film industry projects and art exhibition.

While celebrating fashion SA designers, “Sista Bucks” showcased her range and the Soweto String Quartet performed at the highlight of the week, a music concert featuring notable South African and Nigerian artists.

Communication:

As the inaugural event launching this initiative, it received overwhelming media attention in both cities – Lagos and Johannesburg. The interviews were conducted by several radio and television stations with the Executive Mayor, MMC Economic Development and City Manager. Estimated media coverage received during and post the event was valued in the region of R15 million.

Activities:

Executive Mayor of City of Johannesburg delivered the official address and cutting of the ribbon to signal the opening of the exhibition.


Business session address by MMC (Economic Development, CoJ) and JTC Acting CEO at Business Exchange session

Joburg’s Sista Bucks Designs showcased, alongside The talents of the Soweto String Quartet

Recommendation:

The African continent remains a lucrative market for Joburg, with massive potential volumes and spending power. JTC will continue to capitalize on this, using relevant platforms to:

Promote Joburg brand awareness.

Engage with trade media and SAT-appointed public relations companies on Joburg promotional campaigns, media releases, etc.

Strengthen relationships with the SA High Commission platforms in the relevant countries/cities, to gain buy-in from both business and leisure markets, in order to drive traffic to Joburg.

Host post media familiarization trips and educational trips for travel trade.

Sign Joint Marketing Agreements with relevant trade partners to encourage them to include Joburg packages in their itineraries, in order to promote and increase tourist figures and visitor numbers to Johannesburg.

It is therefore recommended that JTC continues to utilize these exhibitions as platforms to create more Joburg brand awareness and to influence travel trade itinerary planners to include Joburg as a significant destination.

Summit Expo Africa [13 - 14 February 2013] at the Sandton Convention Centre

The third edition of Expo Summit Africa was organised by Manch Communications in partnership with EXSA, the Exhibition and Event Association of Southern Africa. The event brought exhibition and trade show industry thought leaders together to strategize on the future of the African exhibition industry.

The event was hosted in partnership with the Johannesburg Convention Bureau (JCB), Gauteng Convention Bureau and the South African National Convention Bureau. This is due to the fact all convention bureaux work together to deliver on the strategy of growing business events, specifically exhibitions. Johannesburg Convention Bureau strategy aims to grow the business events sector by developing local exhibition titles and attracting international titles to Johannesburg.


The theme of the Expo Summit Africa was ‘Developing Africa as a Global Exhibition Destination’.

Mati Nyazema, Executive Director of the Sandton Convention Centre, moderated the Summit and urged the exhibition industry to host events like this in Johannesburg and to learn from the knowledgeable visiting experts.

Mati Nyameza – Moderator Pumla Ntsele – Welcome Note

Notable CEO’s attending from outside South Africa were:

Nick Forster, Group Commercial Director, Reed Exhibitions

Simon Kimble, CEO, Clarion Events, UK

Sandy Angus, Managing Director, Montgomery Worldwide

Fiera Milano S.p.A, Italy

Messe Frankfurt

Manch Communications, India

The first Keynote Speaker to set the tone for the Summit was Dr. Alioune Sall, Executive Director of the African Futures Institute, and expert advising the UN on global development for Africa.


Dr. Alioune Sall, Executive Directo of the African Futures Institute

Other speakers’ topics included:

The exhibition industry scenario and future potential in Africa:

How does the sector look in the Pan African region?

What are the policy initiatives taken in support of the sector?

What are the major challenges being faced at present?

Internationalizing the African exhibition industry:

When do we see the international giants entering into Africa with full force?

What are the inhibitors of the African market that discourage investments?

Is the absence of an existing, sizable market acting as the main barrier for internationals to come?

Adapting the best practices worldwide to consolidate Africa’s position in the global exhibition sector.

The art and science of creating, managing and sustaining Blockbuster Shows:

Leveraging association and government networks

Is the concept ‘Big is Beautiful’ valid in the current markets?

What is the impact of economies of scale on attracting the right audiences?

What is the blueprint to successfully manage the expectations of large customers and partners?

Expanding the coverage of existing shows with a Pan African approach:

How to widen the visitor base?

What could be the best marketing strategy to cover the entire continent?

How would it help in growing the sector at a much faster pace?

Mergers & Acquisitions in the African Exhibition Sector:

What are the benefits of M&A for the African market?

What are the international organisers looking for in an acquisition?

How can one maximize the value of their business?

What are the other types of partnerships?


Africa Rising

Why it’s never been a better time to be an entrepreneur - Alec Hogg, Scenario Planner.

Sustainability & Greening in the exhibition business.

In addition to being an excellent networking opportunity and educational conference, the Expo Summit Africa contributed significantly by:

Strengthening BRICS relationships

Bringing in Indian exhibition organisers to the region

Bringing in international exhibition organisers and titles into the city

Acting as a gateway to the African exhibition industry

Understanding sector shortcomings and strategizing its growth.

Meetings Africa, 18th to 21st February 2013

Meetings Africa is a business to business marketing platform, attended by local and international buyers who seek services and products offered by Africa’s MICE industry. The exhibition is also attended by local and international Travel media who work on profiling destinations. JTC is focused on growing Meetings Africa and securing Johannesburg’s position as the permanent home of Africa’s premier business events trade show. As an official bid partner, the aim is to ensure that Tourism plays a significant role in this event to reinforce Johannesburg's positioning as the ideal business events destination. In close collaboration with partners South African Tourism, Gauteng Economic Development and Sandton Convention Centre, JTC takes the lead to ensure ongoing growth in the number of international buyers and exhibitors who attend the event, in order to increase arrivals and length of stay.

Objectives for participation:

Joburg Tourism continues to seek opportunities to grow tourism, promote Joburg as a major business events destination, whilst providing a diverse array of innovative options and ensuring that patrons leave with memorable experiences that last a lifetime. The focus of this year’s participation was to:

Promote Joburg as a destination of choice to the MICE industry.

Generate potential leads for MICE tourism.

Improve the European and African MICE trade’s knowledge about product offerings in Joburg.

Exposing the European and African trade and media to Joburg’s offerings and creating a positive rapport with them.

India was the market best represented by buyers with more than 30 buyers in attendance. There were 20 buyers from the Canada; 13 from China, nine from Brazil and eight each from Germany and Russia.

The Official Opening Ceremony

The opening ceremony was officiated by the Honourable Minister of Tourism, Marthinus van Schalkwyk. He pointed out that South Africa is ranked as the continent’s premier business destination. He concurred that Meetings Africa provides the ideal platform to initiate better and more inclusive partnerships which will work to realize the untapped potential of the continent - and invited African professionals to partner in an effort to transform our continent.


Phelisa Mangcu, Acting CEO, Joburg Tourism, pictured with the Minister of Tourism, Marthinus van Schalkwyk, during his Meetings Africa walkabout.

Association Day

The Association Day was entitled Business Opportunity Networking Day (BOND) and its objective was to connect the association sector with the industry. Presenters and workshops focused on sharing Association Management best practices and educating the industry about their needs in order to deliver valued services. It was also an opportunity for the industry to educate Association Managers about the type of value-adding services on offer.

Networking at the Joburg Tourism Exhibition Stand

Through the diary system the team pre-booked several meetings, most of which were with Association Managers. The aim was to create new leads and maintain relations with existing Association contacts.


ICCA Congress [19 – 24 October 2012]

A total of 86 meetings were conducted at the stand over two days. These varied from enquiries about media, tour options, and City partnerships to bid leads. Out of the 86 meetings, the following were leads that the Convention Bureau is researching and following up:

Name Surname Company

Dwayne Leslie Internantional Religious Liberty Association

Charles Mbugua International Federation of Social Workers

Dov Hyman Global Offset Counter Trade Association

Angelo Kehayas IMCSA

Matheu Meer World Holstein Federation

Zali Mbobo SA Medical Association

Kelcey Mitchell Flight Safety Foundation

Emmanuel Martey Africa Real Estate Society

Stanford Slabbert SA African Orthotic & Prosthetic Association

Chris Eden African Sustainable Energy Association

Olubunmi Owoso Commonwealth Association of Polytechnics in Africa

The following marketing collateral and corporate gifts were distributed:

Joburg business events motivational guide

Joburg packages

Joburg maps

Joburg promotional DVDs

Joburg Ultimate Guide

Media pack disc

Joburg branded pouches

Buyers’ Media Dinners and Tours

The team hosted buyers and media at two dinners during Meetings Africa. The objective of these side events was to network and improve relations with the industry. Both dinners were well attended and hosted by media personnel from Johannesburg Tourism and South African Tourism.

Networking Golf Day

The Meetings Africa Golf Day was held Randpark Golf Club, one of Johannesburg’s top golf courses. It provided an opportunity for local corporate executives, international hosted buyers and business events exhibitors to network on an informal basis in relaxed surroundings.


Johannesburg Tourism took advantage of the branding opportunities at the Meetings Africa Golf Day

Golf Course branding Prize giving dinner venue

Electronic Media Coverage

The following print advertorials were booked for Meetings Africa:

1 x full page in the exhibition catalogue and SA Meetings Planner showcasing Johannesburg as the world’s best boardroom.

1 x full page for day 2, covering Joburg destination offerings.

1 x half page for day 2 – covering the industry partnership program.


Full page advert

Half Page Advert

BEELD HOLIDAY SHOW [15 - 17 FEBRUARY 2013]

The Beeld Holiday Show is a consumer show, predominately attended by South African holiday makers who are looking to explore different tourism offerings. As part of promoting Joburg as a year round, leisure, adventure, business, sport, cultural, mega and lifestyle events destination on both local and international platforms, Joburg Tourism identified the Beeld Show as a strategic platform to market and create business leads for Joburg.

Highlights of the show

This being its second year of participation, Joburg Tourism has seen a substantial growth in attendance of visitors to this show and utilised the platform to attract new markets across all spectrums. The Beeld Holiday Show allows for consumers to view different options or offerings of holiday destinations and activities under one roof- ranging from local camping, caravanning, 4x4 excursions, safaris, and seaside holidays, to overseas travel.


Joburg Tourism stand:

Communication and Public Relations platforms:

In order to create more awareness and around this particular promotion, JTC distributed a press release prior to attending Beeld Show and placed a full page advertisement in the show’s official catalogue.


CAPE GETAWAY SHOW [15 – 17 February 2013]

The Cape Getaway Show is a “must attend” annual consumer show taking place at the Lourensford Estate in Somerset West, Cape Town. Joburg Tourism participated to promote the destination’s urban tourism offerings to the domestic market.

Images of the Cape Getaway Show at the Lourensford Estate in Somerset West

Tourism Indaba Exhibition [11 – 14 May 2013]

BACKGROUND OF TOURISM INDABA SHOW

Tourism Indaba is one of the largest tourism marketing events on the African calendar and one of the top three ‘must visit’ events of its kind on the global travel trade calendar. The event is primarily a marketing platform to trigger transactions between a buyer and a seller and is also used as an event that raises the profile of tourism in South Africa.

Joburg Tourism’s main priority in terms of participation was not only to expand upon the leisure and lifestyle appeal and activities which the City offers, but also to ensure that the trade understands that Joburg is so much more than just a business destination or stop-over en route to other exotic locations. Pre-scheduled meetings with trade, stakeholders and media were made at the Joburg Tourism Exhibition Stand.

Indaba was again a chance for major global trade buyers to engage with their pan-African suppliers, tailor-make holiday packages and be exposed to new tourism products. A total of 2,341 local and international buyers attended the show, up 3% on the numbers who attended the previous year. The number of independent international buyers attending Indaba 2013 was up 6.86% on 2012 figures, with 1 464 international buyers attending the show, up from 1 370 in 2012.

In addition, South African Tourism hosted a further 249 top international buyers at Indaba 2013, significantly up by nearly 20% on the 208 international buyers hosted in 2012. As yet unaudited figures indicate that well over 10,000 delegates passed through the show’s turnstiles over the course of its four day duration.

Media interest in Indaba 2013 surged this year, with 802 media covering the show, 11% more than the 721 who registered to cover the show in 2012. Nearly 200 of them were leading international media, with international media numbers up 23% this year to 190.


Indaba was covered by international broadcast networks such as BBC World, China Central Television and CNBC Africa, while there was also continuous live coverage from the Durban ICC by eNews Channel Africa, along with coverage by a number of SABC current affairs and lifestyle television and radio shows.

There was also strong marketing and sales representation at Indaba from leading global companies involved in the tourism industry, such as the National Geographic Channel, TripAdvisor, WAYN.com, Expedia and CNN.

Thousands of events, activations and networking sessions were held over the course of the four bustling show days. (http://www.indaba-southafrica.co.za/news/innovative-indaba-2013-comes-to-a-successful-close.aspx)

WHO ATTENDS TOURISM INDABA:

Tourism Indaba attracts hoteliers, hotel developers, financiers and intermediaries such as:

Destination Management Companies

Tour operators

Tourism Authorities & Associations

Government entities

Media

General public

Corporate Lawyers

Government leaders and officials

The objective of JTC’s participation:

Johannesburg Tourism Company’s association with exhibitions of this nature is based on its strategic objectives, as outlined in its Business Plan [2012-13], which clearly identifies international and national markets as core markets that require more significant investment from JTC. For us the priority will be to not only expand upon the leisure and lifestyle appeal and activities which the City offers, but also to ensure that the trade understands that Joburg is so much more than just a business destination or stop-over en route to other exotic locations.

JTC aimed to:

Create top of mind awareness of Joburg offerings and positioning as the premier, all year round sports, shopping, fashion, lifestyle, mega events, heritage, arts and culture destination of choice in Africa.

Encourage domestic tourism trade to include Joburg in their itinerary, not just as a stop - over, but also to visit and spend time exploring the destination’s offerings (entertainment, gambling, arts and culture).

Encourage South African citizens to participate and visit Johannesburg in order to expand leisure tourism demand and awareness.

Strengthen relations with tourism stakeholders.

Improve the tourism trade’s knowledge and understanding of Joburg’s offerings.

Initiate discussions with the tourism trade and engage in Joint Marketing Agreements or initiatives to promote Joburg as a destination of choice in Africa and increase tourist figures.

Expose the travel trade and media to Joburg’s offering and create an excellent understanding of the destination.

Expose consumers (local, domestic, regional, international) to Joburg’s offerings.


Visitors at JTC’s stand during Tourism Indaba Show 2013

The following collateral was distributed at Tourism Indaba Show:

Ultimate Guide

Joburg Maps

City Sightseeing Tour brochure

Newtown & Braamfontein brochures

Investment brochure

COMMUNICATION IMPLICATIONS

Media platforms

In order to create more awareness and promote the destination effectively, JTC compiled and a posted press release prior to attending Indaba to all our media partners and trade stakeholders.

The following print advertorials were booked on the official show Daily News, which was distributed to all Tourism Indaba participants:

Full Page advertisement in Indaba Daily News on the first day of the exhibition

Half Page advertisement in Indaba Daily News on the second day of the exhibition Half Page advertisement in Indaba Daily News on the third day of the exhibition


During the Indaba Expo, Joburg Tourism also participated at the Indaba Networking Golf day where the destination was promoted as the “Premier golfing destination”, by distributing relevant promotional material.

MMC Ruby Mathang who lead the CoJ delegation at Indaba, had a live TV interview opportunity with ENCA,where he spoke on the importance of participating at these platforms and touched on the SONA which took place on 9 May 2013.


IMEX Frankfurt [20 – 23 may 2013]

The IMEX exhibition in Frankfurt is an essential worldwide exhibition for Business Tourism. It provides an important global platform for the world’s leading suppliers, including destination Johannesburg, to meet with top level buyers with strong purchasing power.

The objectives of exhibiting at IMEX were to:

Meet with buyers/meeting planners who have the potential to bring meetings to Johannesburg.

Generate bid leads for Johannesburg

Maintain existing relations with meeting planners/buyers

Safeguard the city’s interests of gaining market share in the meetings industry

Promote Joburg to various markets as a MICE destination of choice.

Exhibition Stand

Johannesburg Convention Bureau secured a booth at the South African National Convention Bureau Pavilion.

Joburg Tourism Booth at IMEX


SA National Convention Bureau Stand with other Business Tourism Exhibitors

Collateral

The team distributed a “Why Meet in Johannesburg” motivational guide, with content giving buyers reasons to choose Johannesburg as their next destination. The purpose was to demonstrate that it is easy to do business in Johannesburg.

The five top reasons included:

Joburg’s status as “A World Class African City”

Modern infrastructure

State of the art meeting venues

Exceptional accommodation facilities

Excellent service and support

“Why Meet in Johannesburg” motivational brochure and destination DVD

The team distributed an electronic Meeting Planners Guide, destination DVDs and maps. Branded promotional items included memory sticks and beaded bookmarks.


Media Platforms

As part of promoting the destination and reinforcing the message of being the World Class African City, the team took advantage of the following opportunities:

An electronic profile of Johannesburg was uploaded on the IMEX exhibitor catalogue.

A print profile of Johannesburg was placed on the IMEX exhibitor catalogue.

Johannesburg’s press release was featured in the IMEX Daily newspaper focusing on the recent ICCA results.

A print advert was placed in the ICCA membership Directory, inviting association members to consider Joburg as their next congress destination.

Article in IMEX Daily Newspaper Advert placed in ICCA Membership Directory

ICCA Database Research Workshop

The team attended the workshop which offered detailed training on ICCA's online Association Database Research including Hot Leads, Key Contacts, Calendar and other services which ICCA offers. The session was interactive with hands-on demonstrations and in-depth case studies. The team now has improved knowledge about using these research tools.


ICCA members attending the Database Research Workshop

ROAD SHOWS AND WORKSHOPS

BRIC and Africa Markets

Since the global financial crisis in 2008, and the continuing sovereign debt crisis in the Euro zone, the BRIC economies are growing in importance as strategic markets to engage. African economic growth in the past decade has to a large extent been driven by a commodity super cycle and foreign direct investment (FDI) emanating from BRIC and other developing economies. The objectives of JTC‘s participation at the BRIC and Africa roadshows, trade shows and workshops were to:

Create top of mind awareness of Joburg offerings as a mega events destination.

Initiate discussions with the trade in order to pursue them in signing up on Joint Marketing Agreements to promote Joburg as a destination of choice on the continent.

Creating awareness of forthcoming events in the form of campaigns and educating the trade on Joburg’s offerings for their markets – in an effort to ensure that they include Joburg and surroundings in their itineraries, not only as a stopover or gateway.

Explore SA Road Show in Brazil and Argentina [27 - 30 August 2012]

Argentina represents one of the significant emerging markets attracting tourists to South Africa. Since 2010 there has been an increasing percentage of Argentinian visitors to South Africa; compared to pre-2010 -this growth represents the highest percentage growth in the world. It is in this context that SA Tourism has placed Argentina, alongside five other countries, on its official ‘watch list’ of new markets.

The South African Airways and the SA Embassy invited +-1000 Brazilian and Argentinean travel trade professionals (travel agents & tour operators) to attend the exhibition. JTC officials had an opportunity to interface with +-500 travel trade members during the workshop. The enquiries from the trade ranged from tour packages, guided tours, exchange programmes available for tourism students, events schedules and facilities - to security concerns about Joburg.


JTC Officials with SAA South American staff. SA Ambassador to Argentina, HE Tony Leon, visited the JTC stand together with the SA Consul General/Ambassador to Brazil.

Travel trade at the Explore SA Workshop Cocktail function

It was noted during the meetings and interviews that the South American market is a challenging sector, unwilling to change their negative perceptions about Joburg. This is particularly attributed to the lack of transformation (lacking young and vibrant operators) amongst their outbound operators. However, in spite of this, JTC continues communicating with this market in order to ensure that Joburg remains one of their top destinations in South Africa.

On-Show Road Show in Russia – St Petersburg and Moscow [27-30 August 2012]

On Show Exhibitions continues to play a critical facilitation role for travel business exchange between South African inbound operators and product suppliers in the Russian market, arranging travel trade workshops to enable South African suppliers to showcase their products and update the in-bound market traders on new offerings.

JTC participated for the first time in this roadshow in 2012. The workshops were held in two Russian cities - St Petersburg and Moscow - facilitating valuable networking opportunities, allowing not only for the creation and consolidation of new business and trade opportunities, but also helping to boost confidence in the destination among outbound operators and travel agents in the Russia.

Joburg is well placed to cater for the affluent Russians’ predilection for gourmet travel, five star luxury and high-end shopping, including items like gemstones and jewellery. For Joburg, the priority was not only to expand upon the leisure and lifestyle appeal and activities which the City offers, but also to ensure that the trade understands that Joburg is so much more than just a business destination or stop-over en route to other exotic locations around the country.

Workshop feedback:

During the engagements it became evident that there is a critical need to continuously educate the Russian trade and media as they know very little about Johannesburg and their scant knowledge is dominated with negative reports and perceptions about crime.


Comments from the trade were:

They use Joburg for their clients as a stop-over, or to connect from different parts of the world/country.

Crime statistics shown on television and other media platforms make them believe that Joburg is still not a safe place to visit or do business in.

There is a lack of information about Joburg’s leisure offerings.

JTC official engaging with the trade

Entertainment by SA Group and SA Ambassador in Russia, HE Mandisi Mphahlwa addressing trade guests during the roadshow

Russia remains a lucrative niche market for South Africa, with minimal volumes. JTC will continue to capitalize on this, using relevant platforms to promote Joburg’s offerings and to create brand awareness in this market. Joburg Tourism has been invited to participate at the forthcoming MITT Expo 2012, to be hosted in Moscow in partnership with the SA Embassy.

ICCA Africa Chapter Workshop [1 - 2 August 2012]

Three members from JTC attended the ICCA Africa Chapter Workshop held at Emperor’s Palace, Ekurhuleni. The workshop brought together ICCA and industry experts to share the latest industry trends. It was also attended by African Associations, evaluating destinations for their next congress.

Objectives for attending the ICCA Africa Workshop included:

Increasing Joburg’s market share of the meetings industry.

Sourcing more business from the African continent.

Creating a positive image about Johannesburg as a unique and inspiring destination for African meetings and events.

Keeping abreast of industry trends.


Leads Generated

The convention bureau team generated a lead for the 7th Scientific Congress of African Society for Blood Transfusion (2014). The bid was submitted in September 2012.

SAT Angola Trade show – Luanda [17 – 22 July 2012]

Angola is one of the countries on the African continent identified by JTC as a valuable tactical market. Since its first trade show visit to Angola in 2009, JTC has managed to optimally position Joburg, resulting in the conversion of travellers from interest to visit and repeat visits.

Workshop feedback:

During engagements it became evident that there has been a slight improvement in knowledge about Joburg’s offering since the last visit. However more education and engagement about the destination remains crucial.

Comments from the trade included:

Due to lack of information and understanding about Joburg’s leisure offerings, they use Joburg for their clients as a stop-over or to connect from different places.

Crime statistics shown on television and other media platforms are responsible for perceptions that Joburg is still not a safe place to visit or do business in.

Trade show activities: JTC Official conducting radio interviews and the SA Team pictured during a sales visit to a trade partner.

SAT Nigeria Trade show, Lagos [20 – 23 September 2012]

The Nigerian market is a large and fast growing market, showing increased growth of 37.2 % in 2011.

JTC used the SAT Nigerian workshop in September 2012 to promote the recently launched spring campaign (Love Joburg this Spring), in order to create awareness of the city’s leisure and lifestyle offerings.

Workshop feedback:

During the engagements it became evident that there has been a slight improvement in awareness about Joburg’s offering since the last visit,, although in some areas it is still critical that more awareness, education and engagement transpires around destination Joburg.



They use Joburg for their clients as a stop-over or to connect from different parts, due to lack of information and understanding about Joburg’s leisure offerings.

There is a notion that Joburg is not an easily accessible destination to visit, due to very strict visa regulations, which prohibit and hinder the travel process.

Crime statistics and reports on television and other media platforms make potential visitors believe that Joburg is still not a safe place to visit or do business in.

Recommendations:

Both BRIC and African countries remain lucrative markets for Joburg, attracting growing volumes and Joburg will continue to capitalize on this potential, using relevant platforms to:

To promote Joburg brand awareness.

Engage with trade media and SAT-appointed public relations companies on Joburg promotional campaigns, media releases, etc.

Strengthen the relationships with the SA High Commission platforms in the relevant countries/cities, to gain buy-in from both business and leisure markets and thereby drive traffic to Joburg.

Host post media familiarization trips and educational trips for the travel trade.

Sign Joint Marketing Agreements with relevant trade partners to encourage them to include Joburg packages in the itineraries, in order to promote and grow tourist figures to Johannesburg.

It is therefore recommended that JTC continues to utilize these exhibitions as platforms to create more Joburg brand awareness and to influence travel trade itinerary planners to include Joburg as a destination.

Brazil, Russia, India, China (BRIC) Media Briefing

As part of forming strategic partnerships with stakeholders, Joburg Tourism partnered with Brand South Africa, and the Sandton Convention Centre, to host journalists from the BRIC countries to participate in a media tour to South Africa.

The goal was to expose small groups of carefully selected journalist to South Africa, in order to deepen their understanding of the country and its provincial cities and what it has to offer potential trading partners and investors from other BRIC economies.

JTC invited Marina Mayer [CoJ Executive Director- Economic Development] to share the City’s vision and upcoming plans on economic development and activities. The media experience concluded with a Joburg city tour for journalists to experience the city’s dynamic vibrancy and investment opportunities.

Brand SA CEO addressing media Delegates attending media briefing


Marina Mayer [Executive Director DED] addressing delegates

SAT INDIA ROADSHOW

Following the successful completion of 2012 India Roadshow in Mumbai, Bangalore, Chennai and New Delhi hosted by South African Tourism (based in Mumbai), Joburg Tourism participated at this year’s road show, to reiterate the significance of the Indian market for Joburg and the increasing popularity of the destination in India. The road show covered the following cities: Mumbai, Hyderabad, Bangalore and New Delhi in an attempt to explore emerging markets within India that hold greatest potential for the destination. Also, in light of the BRICS grouping and growing numbers of Indian travellers to South Africa, it was imperative for Joburg Tourism to raise Joburg’s profile in this market. This road show provided us an opportunity to interact with +- 300 travel agents, outbound tour operators and trade press. The platform enabled the Joburg Tourism team to educate Indian agents more on how to promote and sell the destination to their clients, as well as showcasing the destination’s varied offerings and informing them of new developments in the city.

HIGHLIGHTS OF THE ROADSHOW

Joburg Tourism Company officials had an opportunity to interface with +- 300 travel trade members during the workshops. The attendance of the outbound tour operators and travel agents in all cities was intense and productive. Enquiries from the trade ranged from safety assurances when visiting Joburg, to discussions about the range of attractions and events to explore - besides the renowned Gold Reef City theme park (the only Joburg family attraction that has any profile in the Indian market) - as well as tour packages, special lifestyle activities and incentive group packages.

South African Tourism (India), in partnership with by Lonely Planet Magazine in India, invited South African products, including Joburg Tourism, to participate/ advertise in their special February 2013 Anniversary issue. The feature was a holiday competition prize package for two (2) people to South Africa worth NR200 000, 00 (approximately R31 000.00), inclusive of air travel, transfers, a four day accommodation stay with meals and a short city tour. The prizes were valid for a period of six months (February – July 2013).

The South African products listed below partnered with South African Tourism on these packages as follows:

South African Airways sponsored return air tickets for the couple.

Sun International - Maslow Hotel sponsored 4 days’ accommodation, meals and discount vouchers.

Joburg Tourism sponsored airport transfers and a Joburg full day tour to the value of R 7600.


The Lonely Planet Magazine feature

Joburg Tourism’s follow up leads from the roadshow included:

A three week product training roadshow to be hosted by South African Tourism in 2013. (Offer online destination training as an option, instead of attending the three week training programme.)

Compiling a database of the Indian Travel Trade and adding them to JTC’s e-newsletter list.

Opportunities for Joint Marketing Agreements with the following companies/ operators for Joburg brand representation in India:

Cox & Kings, Global Destinations, and Balaji Travco India.

Recommendations

With the increased number of Indian tourists travelling to South Africa, SA Tourism - together with its industry partners like JTC - aims to attract over 100 000 Indian tourists to South Africa by 2014. The importance of India as a source market for South Africa cannot be underestimated, as India is an emerging travel market with massive growth potential. It is anticipated that India’s economic growth will increase exponentially over the next 40 years and that by 2050, it is expected to be among the top three global economies. It is in this context that Joburg Tourism needs to establish itself firmly in the minds of Indian travellers by attending these roadshows to promote the destination.

INTERNATIONAL HOTEL INVESTMENT FORUM [BERLIN 4-6 MARCH 2013]

In an effort to promote tourism investment opportunities in Johannesburg, Joburg Tourism participated in the 16th International Hotel Investment Forum from 4 – 6 March in Berlin, Germany. The team was joined by MMC for Economic Development (Ruby Mathang) and the Director for Trade and Investments (Reginald Pholo). Participation in this forum allowed the team to get insight into the global tourism investment space and defend the city’s global market share.

The IHIF 2013 took place at the Intercontinental Hotel – Berlin from 04-06 March 2013.


Delegates at the IHIF 2013

Joburg Investment brochure distributed at IHIF 2013

ITB TRADE SHOW [6-10 MARCH 2013]

ITB- Berlin is a critical annual Business to Business platform for the tourism trade and consumers to interact and do business in Europe. The trade show presents an opportunity for participants to showcase their destination’s new offerings and campaigns, and to forge agreements and working relationships.

It also presents an opportunity for consumers to discover new destinations around the world in a few hours. It is estimated that the Travel and Tourism Sector accounts for an estimated 300 million jobs globally. At US$6 trillion (9.1% of GDP), the sector is a key driver for investment and economic growth at a global level. It is larger than the automotive industry at 8% GDP, and just smaller than banking at 11%. (Statistics provided by the ITB 2013 post report).

GERMAN MARKET ANALYSIS – HIGHLIGHTS

The majority of German outbound travel is to short- and medium-haul destinations. Germans typically go abroad in search of relaxation and taking time out in warmer climates is high on the agenda.

One third of Germans head to the Mediterranean for a sun-based holiday, while skiing in the Alps is popular during the winter period. Germans enjoy returning to destinations they are familiar with, and this trend has helped to put core markets such as Spain, Austria and Turkey high on the list of leisure destinations for Germans. For the segments that visit South Africa, relaxation comprises not just sitting on a beach, but also discovering new places and meeting new cultures. By interacting with foreign cultures they learn about other people and this might add value to their own lives. South Africa has gained competitiveness over the US in terms of accommodation prices and also as a destination for a basic round trip during the important winter season.


Joburg promotional article Germany

TRADESHOW HIGHLIGHTS

City of Joburg Officials Meet With SA Ambassador – Berlin [05 March 2013]

Led by MMC Ruby Mathang, the Joburg Tourism team met with the SA Ambassador to Germany, Reverend M Stofile, to discuss potential partnerships with German investment companies.

As part of the discussions the Joburg team also presented the upcoming Buy. Sell. Invest. Visit Joburg project headed by the City of Johannesburg’s, Department of Economic Development. Ambassador Stofile assured the team of his office’s unwavering support for these projects.

Joburg Team with Ambassador M Stofile


Evening Welcome Function at SA Embassy [5 March 2013]

The South African Embassy in Berlin hosted a cocktail function at the Embassy to welcome the South African exhibitors. His Excellency SA Ambassador to Germany, Rev Stofile and the Minister of Tourism, Marthinus van Schalkwyk welcomed the exhibitors and assured them of their support.

MMC Mathang, SA Ambassador, JTC Acting CEO, Minister of Tourism, Director DED, SAT CEO

Joburg Tourism stand activities

JTC officials had scheduled and walk-in meetings with various members of the travel trade, as well as media for the duration of ITB.

The stand activities included:

-Breaking Travel News interview with MMC Mathang, where he emphasised Joburg’s position as the African continent’s premier investment destination.

- Live interview on German-based Community Radio Station.

MMC Mathang being interviewed by Breaking Travel News at ITB 2013 and the Minister of Tourism pictured at the Joburg booth during his walkabout.


South Africa Tourism Trade evening: 06 March 2013

In order to maximise exhibitors’ attendance at ITB, South Africa Tourism invited key German trade partners to a networking and educational evening at an exclusive venue in Berlin. Exhibitors used this opportunity to educate the trade more about their destination offerings and new developments, through a mini exhibition at the venue.

The following exhibitors participated by showcasing their products:

Joburg Tourism

Gauteng Tourism Authority

City of Tshwane

KwaZulu Natal Tourism

South African Airways

Joburg Tourism used the opportunity to promote the newly launched Hop on and Hop off bus, as well as the Mercedes Benz Fashion Week as highlights to experience when visiting Joburg

Joburg Tourism competition – for trade

Communication and Public Relations platforms:


In order to create more awareness and promote the destination, JTC, compiled and distributed a press release prior to attending ITB to all our media partners and trade stakeholders.

The media coverage at this year’s ITB included:

Breaking Travel News – Interview posted on Youtube, Gauteng Tourism Authority website and

Traveller advise.com, Cruisevacations.vocalpointmedia.com

Print coverage included:

2 x A4 page advertising in the Breaking Travel News catalogue and ITB Dailies

Recommendation:

The German market is still crucial to South Africa, with Joburg attracting its fair share of German visitors. Even though Europe is currently slowly recovering from the global economic melt-down, the number of visitors to SA has remained stable, with a slight increase of 12% in 2012 as per statistics released by South African Tourism. Participation and entrenching the Joburg brand in this traditional market therefore remains important.

World Travel Awards [12 December 2012]

The Acting CEO of JTC attended the World Travel Awards Ceremony,in anticipation of JTC being the winner. Unfortunately the accolade went to India, but the fact that JTC was nominated as a finalist, served to bolster brand awareness. Stakeholders were encouraged to support our nomination by voting online.

SOUTH AFRICAN TOURISM CHINA TRADE ROADSHOW 2013

BACKGROUND

In partnership with the South African Tourism (SAT) China office, Joburg Tourism continues to play a critical role in promoting and exposing Joburg offerings and products to the Chinese market, in order to increase visitation, while also serving to educate themarket.

The roadshow serves as a valuable networking opportunity, allowing not only for the creation and consolidation of new business and trade opportunities, but also helping to boost confidence in the destination among the outbound operators and travel agents in the market place.

In 2013, the roadshow took place in three locations on the Chinese mainland (Beijing, Shanghai and Guangzhou). The workshops are held in trade business style with multi-sensory impact for both traders and suppliers. Participating at these roadshows is aligned with the mandate to promote


tourism growth in the City - as stated in the destination marketing strategy, as well as the over-arching National Tourism strategy, which has identified the Chinese markets as the fastest growing for South Africa.

The BRIC countries (Brazil, Russia, India and China) represent significant emerging markets, with opportunities for also attracting tourists to South Africa. Joburg Tourism has focused some of its marketing activities on the BRIC countries to promote the destination with the aim of signing Joint Marketing Agreements with tour operators in these countries, using special events like sports, luxury lifestyle activities, tourism exchange programmes, tourism investment opportunities and incentive programmes.

According to the recent study commissioned by South African Tourism, China is amongst the top ten (10) high performing markets, indicating a percentage increase of over 68.6% in tourist arrivals to South Africa in 2011. With South Africa being admitted as the member of the BRICS countries, China is one of the top countries that South Africa has fostered strong trade relations with - and tourism is amongst the priority growth sectors targeted by Government.

HIGHLIGHTS OF THE WORKSHOPS

TheDeputy Minister of Tourism, Ms Thokozile Xasa, officiated at the roadshow as an assurance of government support in attracting Asian visitors to South Africa. Representing South Africa at the roadshow were local products including Hoteliers, Tour Operators and Airlines.

The roadshows created great opportunities for face to face interaction and networking with top travel trade and media in all the cities visited. The attendance by the Chinese trade increased by 5 %, (compared to 2012) with 271 attending in Beijing, 150 in Shanghai and 107 in Ghongzhou. This show of interest from the market indicates that ongoing education is crucial.

The City’s objectives in participating at the roadshow were to:

Create top of mind awareness about Joburg’s offerings as a destination of choice 0n the continent;

Initiate discussions with the trade in signing up Joint Marketing Agreements to promote Joburg;

Promote forthcoming events in the form of campaigns, ensuring that the trade include Joburg and surroundings in their itineraries, not only as a stopover.

Workshop feedback:

During the engagements it became evident that there is a slight improvement in knowledge and understanding of Joburg by the trade from Beijing and Shanghai, as most had attended the 2012 roadshow. Some of the media and trade were still sceptical though, due to the media reports of crime issues in Joburg.


They use Joburg for their clients as a stop-over or to connect from different parts of the country.

Crime statistics shown on television and other media platforms make them believe that Joburg is still not a safe place to visit or do business in.

There’s a lack of information about Joburg’s leisure offerings.

CoJ officials at the China Roadshow, pictured in discussions with trade representatives, as well as the SA Deputy Minister Tourism


In conclusion, Asia and the Pacific countries remain lucrative markets for South Africa with high volumes and Joburg will continue to capitalize on this, using relevant platforms to:

promote Joburg brand awareness.

engage with trade media and collaborate with SAT appointed public relations companies on Joburg promotional campaigns, media releases, etc.

strengthen relationships with the SA High Commission platforms in the three (3) cities to gain the buy-in from both business and leisure markets in order to drive traffic to Joburg.

host post media familiarization trips and educational trips for the travel trade.

sign Joint Marketing Agreements with relevant trade partners to encourage them to include Joburg packages in the itineraries, to promote and grow tourist figures to Johannesburg.

DESTINATION MARKETING

Johannesburg Tourism continues to seek opportunities to grow tourism, as well as promote and entrench Johannesburg as the continent’s most multi-faceted and culturally diverse lifestyle destination. Over and above promoting Joburg as the destination of choice at the international, regional and local workshops and consumer shows, JTC’s objective to attend these travel trade shows is to:

Educate and encourage the tourism trade to include Joburg in their itineraries, not only as a stop-over or gateway, but as a destination to visit, explore, experience and enjoy.

Improve the tourism trade’s knowledge and understanding of Joburg’s offerings.

Initiate discussions with the tourism trade and engage in Joint Marketing Agreements or initiatives to promote Joburg as a destination of choice in Africa, thereby increasingtourist arrivals figures.

Expose the travel trade and media to Joburg’s offerings and create a thorough understanding of the destination.

Expose consumers (local, local, domestic, regional, international) to Joburg’s offerings.

Spring Campaign 2012 – Love Joburg This Spring

As part of promoting Joburg as an all year round destination of choice, JTC continues to develop seasonal campaigns which are event and packaged based, in an effort to encourage tourists to stay longer and spend more. In order to ensure maximum participation and promotion of the campaign and events, JTC also engages with the trade to create packages, itineraries and offer discounted rates to promote the destination.

The seasonal campaign objectives were to:

Strengthen trade relations with stakeholders.

Increase the number of tourists to Joburg.

Extend the length of stay of tourists.

Increase tourist spend in the City.

Extend the geographical spread of tourists across the City.

Level out the seasonality patterns relating to tourist visits.


Spring Campaign Launch: [7 September 2012]

The launch of the fresh new look “Love Joburg this Spring” took place at the Randpark Golf Club. The campaign tagline “Love Joburg this Spring” resonates with the enormous surge of energy and enthusiasm which the new season brings to our City. It is also about encouraging civic pride where locals are encouraged to fall in love with their city all over again and discover its hidden gems. One element of the launch was showcasing Joburg as a fashion hub and invited guests enjoyed a fashion show by local designer, Craig Jacobs. The campaign included a number of elements, principally advertising, media promotions, and brand activations at strategic events, which continued until the last month of the campaign in November 2012.

JTC Acting CEO & Kaya FM hosts prior to a live Kaya FM radio interview from the launch venue

Fashion Models during the Launch

Spring campaign activities:

Golf:

To showcase Joburg’s golf offerings and celebrate the arrival of the Spring season, JTC hosted the Stakeholder Golf activity as part of the spring campaign launch. The event was held in the morning as the curtain raiser to the much anticipated launch.


Golf Players at the launch Golf packs, prizes and giveaways

Spring campaign collateral:

SPRING BROCHURE


Campaign A1 Poster Campaign Pull Up Banner

Brand activations

JTC participates in brand activation opportunities in order to leverage on the richness of the Joburg lifestyle and lifestyle experiences to promote leisure tourism. These focus on Joburg as a cosmopolitan African hub for signature events, culture, fashion, music, food, entertainment, nightlife, shopping & retail, sports - encouraging visitors to increase the length of their stay and their spend in the city, while they enjoy experiencing its diversity and vibrancy.

SUMMER CAMPAIGN 2012/13

The Johannesburg Tourism Company’s (JTC's) colourful seasonal campaigns are designed to package the plethora of events taking place across the spectrum of music, arts, culture, food, fashion, entertainment, sport, and business throughout the year. The City of Gold is more than just the economic hub of the continent; Jozi is a leading, global year-round lifestyle destination.

Over and above the campaigns are also designed to assist in:

- Strengthening trade relations with partners and local stakeholders.

- Growing Joburg’s domestic and international tourist market share.

- Reducing low seasonality patterns.

- Increasing tourist volumes, length of stay and spend.

- Addressing geographic spread.

The Summer campaign specifically aimed to deliver on the following:

Encouraging locals to explore their own backyards through experiencing the variety of events the destination has to offer.

Encouraging South African’s to view the destination as the ultimate lifestyle destination with the best on offer in terms of arts and culture; heritage; sport; entertainment; shopping and urban vibe.

Persuading continental and international visitors to see it not as a ‘get-in-get-out’ destination, but one in which they can ‘linger longer”.

Positioning Joburg as a sophisticated and glamorous destination by highlighting signature summer events.

Raising awareness about the city’s attractions and the variety of experiences it offers residents and visitors through information dissemination

Encouraging corporate companies to choose Johannesburg for their teambuilding activities

With the campaign objectives set out as above, JTC identified key events taking place within our strategic focus areas of Business, Leisure and Sport to leverage off as follows:

Business: Meetings Africa

Leisure:

- Joburg summer mall and sidewalk sales

- Mercedez Benz Fashion Week

Sport: AFCON and Joburg Open

The basis of the creative idea for the Summer Campaign was a play on the popular saying ‘where the sun never sets’.


Where summer never sets worked to reinforce Joburg’s positioning as leading destination for both leisure and business tourists. Right from early morning to late at night, the fun, action and entertainment never stops. For every hour in the day there is a unique activity to keep you entertained.

Creative design and execution:

The creative execution and design was inspired by the 12 hours of a clock, as well as the sun and its rays

Media Selection Rationale

We used a focused, integrated approach with the chosen media, thereby creating a more effective and cost-efficient approach to reach our target audiences.

We utilized prominent outdoor advertising sites to create overall brand awareness within the major cities in South Africa.

This was underpinned with dominating travel/business publications and Sunday lifestyle publications, as well as major digital sites for the business/ sports/travel, keeping our focus niched to the event-specific target markets.

Overall, we used a multi-platform media solution, toallow themedia investment to go further and to best engage the target market.

Advertising elements for the campaign included:

Printed material

Brochures

Print Ads

Outdoor

Airport Activation

Lamp/Street posts and billboards

Online

PR


Examples of street posters:

Airport, Highway Billboards, Airport Digipods, Gautrain,

Print elements: Brochures and advertising:


Advertisements

Highlights of the Campaign

Mercedes Benz Joburg Fashion Week was promoted as the highlight of the summer campaign event.

Joburg Tourism, in partnership with AFI (Africa Fashion International) promoted the Mercedes Benz Joburg Fashion Week, which was held at the Mary Fitzgerald Square and Bus Factory from 7 – 11 March 2013.

JTC promoted this event using several platforms, which included an activation in Berlin during ITB, where JTC promoted Joburg as Africa’s Fashion Capital, highlighting the opening of Joburg Fashion Week, which coincided with ITB Berlin. The MB/JFW was also promoted by using outdoor advertising on street poles in strategic Joburg streets. The 2012-13 summer campaign was also flighted as an online campaign, by highlighting certain events as tactical events, in an effort to attract visitors to Joburg during the festive period. It should be noted that historically Joburg turns to a “ghost town” during the festive period, as locals tend to visit coastal areas. However, due to the economic downturn, this trend is slowly changing, with many choosing to spend the holiday period in Joburg.


MB Fashion Joburg Week Adverts Poster

Branding opportunities utilised included:

Logo placement at all marketing collateral and related platforms

Outdoor branding at all the MBFWJ venues

Indoor branding at all the MBFWJ venues

Mention of CoJ as the “hosting partner” on all marketing and media platforms, e.g. print, radio and online

Inclusion of tourism-related information at relevant platform (e.g. 600 Ultimate Guides distributed at the AFI Fast Track Show)

Branding opportunities at all MBFWJ activations pior to the Fashion Show events

Welcome note address by CoJ/JTC Official: Acting CEO Ms Phelisa Mangcu at the MBFWJ Media Launch.

Vodacom Durban July activation

Following the successful activation held in Cape Town during the annual Cape Town International Jazz Festival earlier in the year, as part of promoting the winter campaign, JTC hosted a “Joburg Experience” activation in Durban during the Vodacom Durban July 2012.

Key stakeholders were invited to the event and were hosted to a cocktail party and dinner, where the Acting CEO shared JTC’s plans and involvement in promoting Joburg as the destination of choice, positioning it alongside Durban and Cape Town. Rated as Africa's greatest horseracing event, the Vodacom Durban July generates excitement that surpasses that of any other event on the African continent. It is a perfect platform for JTC to promote destination Joburg’s leisure tourism offerings and generate excitement for forthcoming Joburg signature events.


Joburg Brand exposure at the Vodacom Durban July

Inanda Africa Cup Polo Welcome activation [20-22 July 2012]

In line with its quest to entrench Joburg as an all year round business, leisure, lifestyle, arts, culture and mega events destination, JTC contributed towards hosting the Media Welcome cocktail party at the Inanda Club in Sandton. In partnership with South African Tourism, JTC hosted invited media from Nigeria, DRC and Ghana, who were visiting Joburg to cover the event and report back to their countries. This is in line with JTC forming strategic partnerships with stakeholders to continuously promote Joburg as a destination of choice on the African continent, while also leveraging collaborative promotional budgets effectively. JTC Acting CEO, Phelisa Mangcu, delivered a welcome to the invited media, participating players and guests.

JTC Acting CEO at the Media Cocktail function

Other contributions included promoting the event on all JTC’s strategic marketing and communications platforms to create awareness, as the event formed part of JTC’s 2012 winter campaign.

Joburg Tourism branding at the Inanda Africa Cup included:

Inanda Africa Polo Programme


Standard Bank Joy of Jazz Welcome Activation [22 August 2012]

Produced and led by the organizers T- Musicman, the Joy of Jazz Festival is one of the key annual events sponsored by Standard Bank, comparable in stature to jazz festivals in Cape Town and New Orleans. 2012 marked the 13th anniversary of this premier event which showcases Newtown as a premier cultural precinct in Johannesburg.

In recent years the festival has attracted 20 000 local, regional and international jazz supporters over a period of three (3) days; this year’s numbers increased to an estimated 35000, with an additional show taking place on Sunday, 26 August 2012, due to public demand. With a line up featuring both local and international artists, the annual Joy of Jazz showcases emerging local and international talent alongside established musicians.

The festival served to attract local and international tourists to Johannesburg and contributed to boosting the local economy with financial spend in the tourism value chain, including accommodation, restaurants, craft markets, transportation and tourist attractions. The staging of the Joy of Jazz in the Newtown precinct continues to play an integral role in the regeneration of the inner City, with significant benefits related to shaping the future of Johannesburg and contributing to the City’s changing creative and cultural landscape.

Joburg Tourism’s participation included:


Hosting of the Media Conference on Wednesday, 22 August 2012, where the Executive Mayor Cllr Parks Tau welcomed the artists and media to Johannesburg for the duration of the festival.

Hosting of media and artists to a unique Joburg cooking experience where they enjoyed preparing and then sampling indigenous South African cuisine.

Media Conference

The press conference took place on 22 August 2012 at the Crowne Plaza Hotel, Rosebank. Mainstream consumer, news, music and lifestyle media were invited to the briefing, where Executive Mayor, Cllr Parks Tau, delivered a welcome address, introducing the performing artists and highlighting the City’s commitment to supporting the events of this nature.

Africa Cup of Nations Activations (CoJ)

The 2013 African Cup of Nations was scheduled to take place from 19 January to 10 February 2012 in South Africa.

Five provincial destinations were selected as “Host Cities” for the AFCON 2013:

Nelson Mandela Bay Municipality: Port Elizabeth

North West Province: Royal Bafokeng

KwaZulu Natal: Durban

Nelspruit: Mbombela

Gauteng: Joburg

The City of Johannesburg hosted the opening and the closing games of Orange AFCON 2013 at the FNB Soccer Stadium as follows

Opening ceremony: Saturday, 19 January 2013

Closing ceremony : Sunday, February 2013

JTC’s objectives to participate in the promotion of Orange AFCON 2013 were to:

Increase the number of tourists to Joburg.

Extend the length of stay of tourists.

Increase tourist spend in the city.

Extend the geographical spread of tourists across the city.

Level out the seasonality spread of the tourist sector.

Support Tourism SMMEs.

Ensure the availability of world class tourist services.


SOCCEREX Activation: Durban [23-24 October 2012]

With a view to the Orange Africa Cup of Nations Soccer Tournament 2013 being hosted in South Africa, the CoJ Group Communication and Tourism division participated at the Soccerex Exhibition held in Durban from 22 - 24 October 2012. The Soccerex exhibition was used to showcase CoJ’s facilities and JTC used the opportunity to promote tourism packages and activities for visitors.

CoJ Stand at Soccerex- Durban CoJ Team at the AFCON Draw

Activations in partnership with South African Tourism and other Tourism Authorities and SA Embassies

South African Tourism (SAT) invited South African provincial tourism authorities and trade partners to participate at the 2013 Orange Africa Cup of Nations Tournament activations in a bid to promote, engage and showcase SA’s varied leisure experiences that soccer fans could anticipate enjoying during Africa’s biggest tournament to be hosted on South African soil.

SAT invited trade partners to the Orange AFCON 2013 activation sessions, where JTC were able to engage, establish good business relationships and identify possible opportunities around selling Joburg as a leisure destination of choice.

JTC received enquiries on accommodation, ticketing and other offerings which the trade could sell to attract visitors and soccer fans during this period.


Details of SOCCEREX activations:

DATE COUNTRY ACTIVATION DETAIL

17 & 18 November 2012

Nigeria, Lagos Trade & Consumer Activation Consumer, Media and Trade at the Federal palace & Silverbird & TopComm media partner.

Two days dedicated to informing tour operators and consumers about Joburg’s offerings during the AFCON 2013 Tournament.

24 & 25 November 2012

Ghana, Silverbird Centre

Consumer, Media and Trade activation with a media partner in Ghana.

A day dedicated to informing tour operators and consumers about Joburg’s offerings during the AFCON 2013 Tournament.

1 December 2012

Village Nairobi, Kenya

Consumer activation.

A day dedicated to informing consumers about Joburg’s offerings during the AFCON 2013 Tournament.

13 & 14 December 2012

Epic Sana Hotel Luanda, Angola

Trade Activation. A dedicated booth and activation to inform tour operators about Joburg’s Offerings during the AFCON 2013 Tournament.

AFCON 2013 packages

During engagements with trade the following packages were created for the AFCON 2013 Tournament, to promote Joburg as a leisure and lifestyle destination during this period.

Legend Tours Packages


Tsogo Sun Packages

Syavaya Tours Packages

Images from the Nigeria Activations:


JTC official engaging with consumers

Ghana Activation

SA Ambassador addressing delegates

Angola Activation


JOBURG TOURISM BRAND ACTIVATION CANNES FILM FESTIVAL [16 - 25 MAY 2013]

In partnership with the National Film and Video Foundation, Joburg Tourism took the opportunity to participate for the first time at the Cannes Film Festival, in an effort to promote and expose Joburg as a premier film destination of choice with strategic locations.

Cannes Film festival is world famous for being the crucial convergence of the world’s film and cinema industry, attracting not only the glamorous, rich and famous, but also business insiders. During the two weeks of the event, thousands of films are screened, careers are made, and stars from all over the world gather to bask in the limelight. As the most important networking event of its kind, it is the place where billions of dollars’ worth of business deals are agreed upon and set in motion. The event also attracts CEOs, sovereign wealth funds, royal families, investors, company directors and many others all looking to conclude multi-million dollar business deals. Participating at the Cannes Film Festival 2013 created an opportunity for Joburg to promote its excellent production facilities and filming locations to both international and local film producers, investors and advertising companies. Attending the festival is aligned with the mandate to promote tourism growth in the City as stated in the destination marketing strategy, as film production benefits the value chain (including accommodation, transport, restaurants, and jobs).

Objectives of participating at the Cannes Film Festival 2013 were to:

Position the City as a premier filmmaking destination of choice;

Unlock the economic potential of the filmmaking and production industry in Joburg;

Create strategic partnerships and network with relevant industry players in both the local and international arenas;

Position and promote the City’s world class infrastructure, locations, facilities and heritage to the international filmmaking industry;

Improve the City’s image as an attractive destination for both local and foreign investment in the film industry.

HIGHLIGHTS OF THE FILM FESTIVAL

The Minister of Arts and Culture, Mr Paul Mashatile, presided over opening night at the South African Pavilion at the festival, emphasising government’s support in efforts to attract more film producers and investors, while also promoting South African films on international platforms.

As part of its brand activations, and in a bid to foster strong relationships with the industry, Joburg Tourism hosted a cocktail event. Invitees included:

International and local industry media

International and local producers, as well as film makers

International and local buyers

Group Head Communication and Tourism officiated at the event, assuring invited guests of Joburg’s commitment to supporting the film industry and on attracting the production of more films on Joburg to promote the destination.


Images from the Joburg brand activation event held on 20 May 2013

As part of targeting filmakers, Joburg hosted the filmmakers and producers event on 22 May 2013. The event was held at the SA Pavilion, in partnership with National Film & Video Foundation, to network with and promote Joburg directly to the filmmakers at the Cannes Film Festival.

Images of guest at the Joburg filmmakers’ happy hour event:


Material produced for promoting Joburg at the event included:

Film destination dvd

Film destination brochure

Goodie bags with promotional material


PARTICIPATION AT THE HOTEL INVESTMENT CONFERENCE AFRICA [8 – 10 MAY 2013]

The Hotel Investment Conference Africa 2013 (HICA) is the leading annual meeting place for investors in the tourism industry to gain valuable information and meet potential business partners. It is also a platform for destinations to present investment opportunities to these potential investors.

The participation of the Joburg team in this platform was based on the following objectives:

To create awareness of Johannesburg as a tourist destination with both direct and indirect investment opportunities in the tourism industry.

To promote identified investment opportunities and projects in Joburg.

To meet potential investors to get a clear understanding of the type of investment envisaged.

To develop an understanding of market requirements, as well astechnical and non-tariff barriers in the tourism sector.

To get an understanding of the technicalities of foreign operations in the tourism industry.

To examine the technical requirements of the possible investors, with specific attention to world trends in the hotel sector (e.g. land, size, licensing requirements and compliance issues around building control certification).

To identify opportunities around targeted sub-sectors of economic importance in the targeted countries.

To learn more about government subsidies and incentives - government support system in projects.

To position the City of Joburg as business gateway into the SADC and African export market.

To identify and recruit speakers for BSIV (Buy, Sell, Invest & Visit) Joburg conference and exhibition.

Highlights

The team used the conference as an opportunity to promote Joburg as a world class destination for tourism investment opportunities. A brochure highlighting and profiling the Lanseria and Midrand areas was developed and distributed at HICA 2013.


Tourism Investment brochure distributed at HICA 2013

HICA 2013 DELEGATES’ LUNCH

The team hosted the HICA 2013 lunch to highlight and promote tourism investment opportunities in Joburg, with special emphasis on the Midrand and Lanseria areas.

Delegates at the Joburg - HICA 2013 Lunch and Presentation by Head: Joburg Tourism


TRADE AND CONSUMER ACTIVATION

Country: Lagos – Nigeria [17 – 19 November 2012]

The activations started off with an evening cocktail function where a presentation on the destination offerings and details of the 2013 AFCON Tournament was shared with the Trade. Present at the function were members of the SA Embassy in Lagos who offered support to assist soccer fans with a smooth Visa process. South African Airways – Nigeria created special travel packages for fans, that also included an incentive of extra luggage/bag allowance to encourage visitors to spend more while attending the tournament.

The last day of the activation was targeted to the consumers to advise them of available offers during the tournament.

Country: Accra – Ghana [ 23 – 24 November 2012]

The activations started off with an evening cocktail function where a presentation on the destination offerings and details of the 2013 AFCON Tournament was shared with the Travel Trade. The SA High Commissioner in Ghana, Ms T Ndlovu, addressed the invited trade and media and also offered support to assist soccer fans with a smooth Visa process. South African Airways – Nigeria created special travel packages for the fans that also included an incentive of extra luggage/ag allowance to encourage visitors to spend more while attending the tournament.

The last day of the activation was targeted to the consumer market, advising them of available offers during the tournament.

HHE T Ndlovu addressing the guests


Country: Nairobi – Kenya [1 December 2012]

The activation was targeted at consumers, advising them of available offers during the tournament. Even though the Kenyan National Team didn’t qualify for the tournament, South African Tourism (in partnership with tourism trade) used the tournament as an opportunity to attract more visitors from the neighbouring countries as well.

Country: Luanda – Angola [13 – 14 December 2012]

South African Tourism in partnership, with the Travel Agencies and Tour Operators Association of Angola, organized a platform for all Angolan travel trade to come together to expand their network. Joburg Tourism was invited to join in at the activations to promote destination’s offerings during the 2013 Orange African Cup of Nations tournament.

Welcome Activation at Airport:

Joburg Tourism partnered with Visa to distribute information to visiting fans at the OR Tambo International Airport. The initiative was speared headed by South African Tourism and JTC used the opportunity to also include Joburg information for distribution.

Welcome desk at ORTIA Airport for information dissemination


Communication platforms:

Press releases were generated by Joburg Tourism to various electronic media and received additional exposure by placing an advert in the Sawubona SAA Inflight magazine.

VISITOR PACKAGES

AFCON 2013 Soccer Tournament travel packages

During engagements with trade, the following packages were created for the AFCON 2013 Tournament, to promote Joburg as a leisure and lifestyle destination during this period.

Legend Tours Tsogo Sun AFCON Packages


AFCON Activation: 19 January & 10 February 2013

Joburg Tourism had an exhibition/promotional stand at the National Stadium (Soccer City) during the opening and closing of the Africa Cup of Nations on 19 January 2013 and 10 February 2013 respectively.

Spectators had an opportunity to win prizes, which enabled them to visit Johannesburg-based tourism attractions in order to increase domestic tourism awareness. The prizes were sourced through partnerships with tourism stakeholders.

Fans at the Joburg Tourism activation during the AFCON 2013 Opening & Closing Ceremonies

CONVENTION BUREAU

NEW LEADS GENERATED

The following leads were generated through research and partnerships with the industry:

All Africa Anaesthesiologist Congress 2017

Routes Africa 2014

City Sightseeing Worldwide Conference

1st CIMA Africa Regional Conference 2014

World Franchise Council Meeting 2014

World Symposium Choral Music 2017

International Law Conference 2016

Pan Africa Federation of Social Workers 2017


BIDS SUBMITTED

The following bids were submitted during the quarter under review:

1st CIMA Africa Regional Conference

World Franchise Council Meeting 2014

All Africa Anaesthesiologist Congress 2017

IWRA Water Congress 2014

2nd African Epilepsy Congress 2014

African Blood Transfusion Congress 2014

International Law Conference 2016

World Choir Championships 2015

SESTECH 2014 Proposal

Africa.com Expo 2014 Proposal

World Symposium Choral Music 2017

17th Biennial Conference of the International Study Association on Teachers and Teaching, 2015

International Congress of Cardiothoracic and Vascular Anesthesia, 2017

Mining Indaba 2015

BIDS WON/BIDS LOST

Johannebsurg was shortlisted for the World Choir Championships 2015. The Convention Bureau still needs to submit host city commitments ahead of the final decision making process.

Johannesburg lost the bid to host The African Blood Transfusion Congress in 2014. The Convention Bureau is yet to receive a letter to explain why the bid was unsuccessful and which City won the bid.

Johannesburg lost the IWRA Water Congress 2014 due to insufficient information in the bid document

The City and stakeholders won the bid to host the International Public Relations Congress in 2015

DELEGATE BOOSTING ACTIVITIES

World Agility Championships [4 - 7 October 2012]

As the next host city, JTC together with the Kennel Union of South Africa (KUSA), participated at the World Agility Championships in the Czech Republic, from 4 – 7 October 2012. Participation was aimed at accepting the baton/flag as the next host city and increasing the number of handlers and spectators attending the Johannesburg event.

A presentation was prepared, highlighting all the preparations to date, accessibility to the city, as well as the venue and accommodation facilities relevant to the event.

Activity proved beneficial for both KUSA and the City of Johannesburg. Most participants lacked knowledge about Joburg’s stature as a city and the brochure material and presentation helped in showcasing the City’s infrastructure and international event credentials.


Closing Ceremony

The Acting CEO also presented a speech to welcome the delegates to the city for the next World Agility Championships and assure all concerned that it is set to be an imposing international event, in keeping with Joburg’s impressive events track record. The speech was followed by a four minute destination video.

One Young World Summit [18 to 22 October 2012 ]

The objective for JTC’s participation at the One Young World Summit 2012 in Pittsburgh, USA, was to boost the attendance of delegates to the Johannesburg Summit in October 2013.

The second day presented an opportunity for delegates to challenge and interact directly with many of the high-profile speakers and counselors, such as former President Bill Clinton, former Colombian President Alvaro Uribe and Nobel Peace Prizewinner, economist Muhammad Yunus.

During the closing ceremony of the OYW Summit, delegates tied ribbons symbolic of their collective unity and hopes for the future and passed them onto the stage. Allegheny County Executive Richard Fitzgerald handed the One Young World baton to Councillor Chris Vondo, member of the Mayoral Committee for Johannesburg. Through Councillor Vondo’s acceptance speech, The City of Johannesburg pledged its support towards the summit. "Johannesburg is committed to the youth, a city that is full of possibility and a city that is ready to host the One Young World Summit in October 2013," said Vondo.


Allegheny County Executive Richard Fitzgerald handing the One Young World baton to Councilor Chris Vondo.

As part of the delegate boosting strategic intervention, an exhibition space was booked and utilized to promote Johannesburg as not only a business destination, but also a leisure destination which complements mega events hosted in Joburg, with plenty of leisure, lifestyle and tourism attractions and activities on offer. Customized gifts were handed to most of the delegates during the breakaway sessions and during the pre- and post Summit plenary sessions.

A display of Joburg promotional gifts on offer Exhibition stand

The presence of various media platforms was of vital importance to market the City of Johannesburg and its diverse offerings to positively to visitors. Most South African delegates played a significant delegate boosting role by encouraging others (through personal interaction and media interviews) to participate in the forthcoming OYW Summit. Councillor Chris Vondo participated in media interviews, which also helped to position Joburg positively.

These included interviews with SABC Expresso, 702 Talk Radio, Pittsburgh Youth Media and a local TV station.


Councillor Chris Vondo’s interview with a local US TV station

World Orchid Conference

The Johannesburg Convection Bureau, together with the South African National Convention Bureau, supported The World Orchid Conference 2014 Organising Committee by contributing Johannesburg and South African collateral during their delegate boosting activities in Taiwan on 7 March 2013.

The following Joburg Tourism collateral was sent to Taiwan:

300 x maps

300 x branded bookmarks

TOURISM AWARENESS CAMPAIGNS

TARGETING LOCALS

As part of ongoing tourism awareness activities, an advert was place in Kasi.Biz, a magazine distributed throughout the Soweto region (at shopping and information centres), at no cost to Joburg Tourism.

Online Discover Your Own Backyard Competition

Joburg Tourism launched its online Discover Your Own Backyard Tourism awareness campaign for Joburg residents on 6 September 2012. By creating awareness about tourism and about Joburg as a destination amongst locals, the ongoing tourism awareness initiative is intended to also bolster civic pride, effectively utilising residents and locals as advocates and ambassadors for their City.

The aim of the competition was to create ongoing online activities (where people can answer 10 questions by clicking on a photograph for the answer on www.capturejoburg.com), as well as to share their experiences. Photography which had previously been entered was utilised in a simple game that allowed participants to interact with the photos. Increased usage was promoted through users challenging their friends to play/enter via Facebook.

The game worked as follows:

The participant was presented with three photos, and question. The user needed to select the photo that matches/answers the question.


The user was given 10 variations, and their results were given after round 10.

After round 10 the user was able to submit a written experience, and go through all the right answers before completing their details.

Online awareness

The following activities took place during the first quarter on the JTC website.

July – September

News Articles uploaded: 100

News Articles updated: 20

No. of listings:

Current Accommodation providers on website: 323

Current restaurant listings: 76

No. Of Events: 20

No. Of Events updated: 0

Tour Operators: 182

New establishments added to the JTC website: 45

Establishments updated in the JTC website: 0

Database activities

Email tourism enquiries through the website: 50

No. of new subscribers to the newsletter: 40

No. of un-subscribers: 2

Newsletter Statistics

emails sent 7846 Sent 7846

emails received 7722 98.42% Received 7722 98.42%

emails bounced 124 1.58% Bounced 124 1.58%

people who opened it 1210 15.67% Opens 1210 15.67%

people who clicked it 167 13.80% Clicks 167 13.80%

people who forwarded it 1 0.08% Forwards 1 0.08%

people who opted out 26 0.34% opt outs 26 0.34%

new people who signed up 3 0.04% new signups 3 0.04%


Update of Photographic Library

The Capture Joburg photographic competition was utilised as an initiative to update the Joburg Tourism photographic library. There were prizes to the value of R40 000, which were offered in a joint collaborative effort by Joburg Tourism and the Vega School of Brand Leadership.

Aside from showcasing Joburg through the lenses of keen photographers, the objectives of the competition included identifying the talents of up and coming Joburg photographers and promoting their work. Entries were submitted via www.capturejoburg.com

The closing date of the campaign was Wednesday, 8 August 2012.

The photographic competition attracted 777 entries, including duplicate entries. The winners were announced at the launch of the Spring Campaign, on 7 September 2012. There were six (6) category winners, an overall second place winner and an overall winner.

The categories of the competition were: Fashion & Shopping, Sports/Outdoor, Lifestyle, Panaromic/Landscape, Eco/Environment and an Open category.


Below are the winning photographs in the seven categories:

Overall Winner Overall runner up Fashion

Sport/ Outdoor Environment/Eco Lifestyle

Panorama / landscape Open category

After the close of the first competition, the next phase of the competition was launched on 8 August 2012. This phase of the competition will run as an ongoing initiative. Every month there will be one category people can enter, and the photo with the most votes will win. The competition started in August 2012, with Environment as a theme. This was followed by the second competition entitled “Your Favourite Joburg Spot”.


DEVELOPMENT OF ROUTES

The Joburg Art Gallery Route brochure was developed, produced and distributed through

JTC’s distribution channels.

Joburg Hop On-Hop off Tourist Bus: “Red Bus”

City Sightseeing, the brand that operates the iconic open-top red double decker buses on six continents and in over 100 cities worldwide, was officially welcomed to Johannesburg at a launch event which took place at Gold Reef City on 07 February 2013.

The event, which was attended by dignitaries from Gauteng Provincial Government and the City of Johannesburg, as well as key tourism stakeholders from the private sector, officially marked the start of the City Sightseeing tours in Johannesburg – an exciting development that offers locals and tourists alike the chance to explore this vibrant city, visiting the many attractions on offer and sampling the cultural melting pot that is Jozi.

The introduction of the Hop On-Hop off Bus to Gauteng is a partnership initiative of the Gauteng Tourism Authority and Topless Tours (Pty) Ltd. Joburg Tourism continues to work as a strategic partner to ensure that the bus operates smoothly in Johannesburg, making sure that the city by-laws are adhered to and the city’s tourism growth objectives are met.

The tour runs along a fascinating route through the Johannesburg CBD that stops at Gandhi Square, the Roof of Africa at the Carlton Centre, the James Hall Transport Museum, the Apartheid Museum and Gold Reef City, the Mining District, the World of Beer, the Carlton Centre, Santarama Miniland, Newtown Precinct, the Origins Centre, Wits Campus, Braamfontein and Constitution Hill.

The Tourist Services Bus aims to:

Make the Joburg CBD a tourist friendly zone and contribute positively to changing perceptions of the city of Johannesburg.

Growing the tourism footprint within the CBD.

Encouraging Joburg residents to explore their city.

Extend tourism spend, whilst providing employment for local city residents.


The following Johannesburg-based establishments were graded by GTA during the period under

SMME SUPPORT

The main purpose of SMME support was to ensure the transformation of the tourism industry within the City of Johannesburg. This included making sure that small to medium sized tourism enterprises meet world class services standards, as well as developing tourism initiatives that are aimed at uplifting small businesses.

Gauteng Tourism Foreign Language Training

Joburg Tourism invited Joburg-based tour guides and other front line staff to attend foreign language training as follows:

Mandarin training was provided by the Wits Business School and started in October 2012.

Of the 20 delegates who registered to attend, nine were from Joburg.

E- Marketing Workshop [9-10 July 2012]

Joburg Tourism facilitated the participation of five tourism products to attend a training session hosted by Gauteng Tourism, in partnership with e-Tourism Frontiers (Kenya).

Online SMME Registration tool

The objective of the online SMME and back office registration tool is to facilitate the online registrations of SMMEs and other tourism products – enabling them to have a presence on the JTC website, while giving them the tools to market themselves online.

The tool also allows product providers the facility to update their own information on a regular basis, as well as giving them control to upload and edit their own establishment footage.

The online SMME and back office registration tool was integrated onto the website platform and all product data on the JTC websites have been displayed via RSS feeds.

Name Category Grade City/Town Month Awarded Expiry Date

Old Umtali Guest House Guest House 3 Johannesburg 14-Jun-12 30-Jun-13

The Inn On Pine Guest House 3 Randburg 17-Jul-12 31-Jul-13

RGH B&B 3 Soweto 15-Aug-12 31-Aug-13

354 On York Avenue Guest House Guest House 3 Randburg 15-Aug-12 31-Aug-13

Randburg Cottages & Conference Centre Guest House 3 Randburg 15-Aug-12 31-Aug-13

Ubernachten Lodge Guest House 3 Randburg 15-Aug-12 31-Aug-13

Accolades Boutique Venue MESE 3 Midrand 15-Aug-12 31-Aug-13

Will Bed and Breakfast B&B 1 Soweto 18-Sep-12 30-Sep-13


MEDIA INTERACTIONS AND FAMILIARIZATION TRIPS

FAMILIARIZATION TRIPS

AFCON 2013 Media

Joburg Tourism had an opportunity to host sports media from Supersport Channel 4, who were covering the African Cup of Nations 2013 (AFCON 2013) Soccer Tournament. The tour included spending time at Soweto heritages sites including the Apartheid Museum, Hector Pieterson Museum, Mandela House and Vilakazi Street. The tour culminated with a local South African cuisine experience at the famous Sakhumzi restaurant in Vilakazi Street. In return for the partnership with the product owners, the attractions were shown on the Supersport 4 Channel during the interval build-up to the AFCON 2013. The products received massive marketing exposure as Supersport has huge viewership locally, regionally and internationally- especially to soccer fans who travel to various places to watch their favourite sport.

AFCON media representative & JTC official at Apartheid Museum

Danish Prime Minister’s Visit:

Working with the CoJ International Relations Department, Joburg Tourism hosted the Danish Prime Minister, Ms Helle Thorning-Schmidt, during her visit to Johannesburg in March 2013. Joburg Tourism had an opportunity to host her on a historic Soweto tour, which included visits to the Hector Pieterson and Nelson Mandela Museums. Prime Minister Schmidt was accompanied by media and her official delegates on this tour.


Hosting Danish Prime Minister Helle-Thorning Schmidt on a visit to Soweto.

Assistance with facilitating Joburg and surrounds leg of filming by the Extreme Frontiers crew - filming 4 x 1 hour episodes for Channel 5 in the UK – making their way around South Africa from Cape Town on motorbikes. This request routed via SAT office in the UK. [9 July 2012].

Meeting with Jill Greenwood from Afar Media, regarding forthcoming Afar Experience in Johannesburg in October 2012. [12 July 2012].

Facilitating filming permits, permissions and stakeholder contacts for Australian TV crew, filming in Joburg during early August, to promote South Africa as a desired destination through South African Tourism Australasia’s platforms, including Facebook, blogs and on the website ww.southafrica.net.au. The footage was scheduled to be played at various South African tourism events in Australia throughout the year, with possible inclusion at roadshow events later in the year. [12 July 2012].

Hosting of BRICS Media Tour (economic and financial journalists) in association with BrandSouth Africa. [13 August 2012]. Journalists included:

Gennady Sysoev (Kommersant Publishing House, Russia)

K J Bennichen (Press Trust of India)

Govardhana Malyankulam (The Economic Times, India)

Jieling Shang (CBN TV China)

Jun Lu (CBN TV China)

Ying Zhang (International Finance News, China)

Paula de Paula (Political, Economic Freelance Writer, Brazil)

Hosting of Inner City Tour for the German Institute [GIZ] – as per request from Nazira Cachalia - JMPD Safer City Programme [18 September 2012]. German Institute guests included:

Till Feltes

Tina Sibernegl

Philipp Kuehl

Lebogang Matshate

Christine Mayr

Earl Stoles


Hosting of One Young World Press Conference at the Crowne Plaza, Rosebank [18 September 2012].

Sponsored Dinner for Hercules Magazine Shoot [11 October 2012]

Hosting Holly Meadows - Freelance Journalist writing 48 Hours in Joburg Article for Africa Geographic Magazine [11 – 14 October 2012]

Hosting of SAA/DIRCO Media Trip from Argentina [28 November 2012]. Journalists included Grisel Isaac [Clarin], Daniel Flores [La Nacion], Gerardo David Gonzalez [Infobae.Com], Soledad Simond [Ohlala] and Ayelen Inigo [Rumbos]

Hosting of SECCES & Beyond All Borders Productions Media Group [9 & 10 November 2012] including: Marjorie Coley, Keith Hern, Arthur Fennell, Patricia Lottier, Carolyn Anderson, representing Comcast Network [Philadelphia, US] and Atlanda Tribune [US].

Hosting of Multi Press Media

Hosting of Metro Magazine

Hosting of South African Tourism Officials based in UK office

Hosting of 2X (Two) different AFCON 2013 Prize winners FAM trips

MEDIA INTERACTIONS

Press releases drafted & issued

The following press releases were drafted and distributed during the period under review:

SAACI 25th Anniversary - Congratulations to SAACI from Johannesburg Convention & Events Bureau [3 July 2012]

Winter Campaign - Durban July – Joburg is Hot This Winter [10 July 2012]

Inanda Africa Cup Polo Message of Endorsement and Support - Joburg Looks Forward to Hosting Africa’s Best in Polo Next Weekend [14 July 2012]

Joburg to Host 3 Global Summits in 2013 [17 July 2012]

Opinion Piece for Advantage Magazine Conference & Hospitality Feature: Promoting Business Tourism Growth in Johannesburg [20 July 2012]

BRICS Media Tour - Welcoming BRICS Media [12 August 2012]

Russian Roadshow [17 August 2012]

Joburg Abuzz With Live Performances [17 August 2012]

A Tasty Joburg Experience for BRICS Media [17 August 2012]

JTC Participates in South American Roadshow [21 August 2012]

Joburg Tourism Welcomes Joy of Jazz [22 August 2012]

Spring Campaign & Capture Joburg [7 September 2012]

JTC’s Participation at Sports & Events Tourism Exchange in Durban [7 September 2012]

Johannesburg Ready to Host One Young World Leadership Summit [18 September 2012]

Discover Your Own Backyard [21 September 2012]

A Tale of Two Cities [3 October 2012]

FCI Agility World Championships for Joburg [7 October 2012]


African Grantmakers’ Network [30 October 2012]

Opinion Piece for SA Conference, Exhibition & Events Guide, 2013 Predictions [31 October 2012]

Joburg Gems Tees Up at IGTM [1 November 2012]

Taking Joburg to the World Travel Market [5 November 2012]

World Travel Awards [13 November 2012]

JTC at EIBTM [26 November 2012]

Meetings SA Opinion Piece for 2013 Gauteng Feature [30 November 2012]

Red Bus Launch Media Release and Fact Sheet [16 January 2013

Meetings Africa Partner Welcome [28 January 2013]

JTC Participates in Indian Roadshow [25 January 2013]

Meetings Africa Media Pack Editorial [12 February 2013] comprising: Joburg Convention Bureau, Providing a Platform to Advance Africa Together; Join JTC’s Industry Partnership Programme Today; Global Summits & International Meetings to Be Hosted in Joburg in 2013; Joburg Tourism Entrepreneur Awards.

JTC Participates at Beeld Holiday Show [14 February 2013]

Content for Forbes Magazine – Joburg, Africa’s Business Hub [15 February 2013]

Launch of AFI MB Joburg Fashion Week [18 February 2013]

ITB Media Releases [4 March 2013] including: Linking Investments & Tourism; Explore, Experience & Enjoy Joburg This Autumn; Destination Joburg for Viable Investment Opportunities

Tourism Internship Programme [7 March 2013]

Why Meet in Joburg [8 March 2013]

Discover Your Own Backyard [12 March 2013]

Tourism Enquiry from Caxtons Metro [13 March 2013]

Seasonality Query from SA Tourism Update [14 March 2013]

Getaway Show [14 March 2013]

Speeches drafted for Acting CEO and MMC Mathang

Red Bus Launch for MMC Mathang [28 January 2013]

Meetings Africa Stand Awards [5 February 2013]

Expo Summit Speech Notes [13 February 2013]

AFI MB Joburg Fashion Week [18 February 2013]

INTERVIEWS FACILITATED

JTC facilitated the following interviews:

Josef Witek - Graduate Student at Ohio University researching perceptions of SA in the US, pre and post 2010 Soccer World Cup. [11 July 2012]

Insight into JTC’s domestic and international marketing drives with Annaleigh Vallie - Business Day Journalist [19 July 2012]


Insight into JTC’s domestic and international marketing drives with Pule Phalatse - SABC, Channel Africa [24 August 2012]

Launch of JTC Spring Campaign on Kaya FM [7 September 2012]

Capture Joburg Photographic Competition on SABC 2 Morning Live [18 September 2012]

Launch of Discover Your Own Backyard campaign on Kaya FM [21 September 2012]

Acting CEO interviewed on CNBC Africa (TV) [15 November 2012]

Joburg Places 2.0 Book Launch : PR Manager interviewed for SABC 2 Morning Live [21 November 2012]

SECESS & Beyond Borders Media Group : PR Manager interviewed for Atlanta Tribute (The Magazine) and Comcast Network, Philadelphia US [11 December 2012]

One Young World 2013 Summit [18 September 2012].

Interviews for the Executive Mayor and Coverage to date is as follows:

Broadcast coverage:

Radio 2000 – telephone interview with Kate Robertson on The Good Life

CNBC Africa- In studio interview on Beyond Markets

5FM – In studio interview on Gareth Cliff’s morning show

BBC Radio Africa Service – in studio interview on the morning show

SABC Morning Live – In studio interview, covered the event and an ambassador project

ETV News – covered the event and ambassador project

SAFM – in studio interview with Catherine Peter on the Otherwise Show

Print / online coverage:

The Sowetan

The Sowetan Live

The Sowetan

The Sowetan Live (Covered the event and 2 ambassadors)

Lead SA (Covered the event)

Media Club South Africa (Covered the event)

Business Day (Covered the event)

Daily Dispatch (Press release)

Rosebank Killarney Gazette (Covered the event)

The Star (Covered the event)

Drum.co.za (Covered the event)

Tale of Two Cities Trade Promotion [3 - 6 October 2012], interviews for Executive Mayor and Acting CEO on:

Metro FM

SAFM

Lotus FM


Soweto TV

CTP Urban

Caxtons

Inner-City Gazette

SABC Channel Africa

BBC Africa – covered the event on Business Spotlight

Interviews Facilitated for Acting CEO & PR Manager:

Ray White on Talk Radio 702 re Red Bus [6 February 2013]

Chai FM re Red Bus Launch [7 February 2013]

Meetings Africa Insert re OYW [15 February 2013]

SABC Channel Africa Radio [8 February 2013]

Breaking Travel News [ITB]

PROMINENT ISSUES COVERED IN THE MEDIA DURING THE FIRST TWO QUARTERS – EXCERPS FROM MEDIA CLIPS

Business

The Johannesburg Tourism Company has announced that it will soon be incorporated into the city’s communication and tourism group, Phelisa Mangcu, Acting CEO says. It is the Johannesburg Tourism Company’s strategy mission to attract visitors to Joburg, encourage them to stay longer, spend more, and improve seasonality patterns and the spread of visitors across the city. (Travel News Weekly: 11 July 2012)

Indaba 2012 in retrospect, from 8 to 10 July, will provide a platform for Africa to discuss the way forward in aviation on the continent where the potential to have the biggest growth in tourism movements. In keeping with the theme of the show SA Tourism coordinated an event at Maxis Cultural Village in Umlazi where media and dignitaries witnessed the signing of a Three City Tourism Alliance, agreement between Cape Town Tourism, Durban Tourism and Johannesburg Tourism. The partnership introduces a new era for collaboration on events and trade shows, domestic and international marketing campaigns, information dissemination, collateral and online campaigns, as well as shared knowledge on an executive level. (Tourism Tattler: 01 July 2012)

The Johannesburg Tourism Company (JTC), recently unveiled its winter campaign at the annual Tourism Indaba in Durban. The A Hot Winter Forecast for Johannesburg campaign forms part of JTC’s marketing strategy to entrench Johannesburg as a global year round business and leisure destination, brimming with special events, attractions, tastes sights and sounds to encourage visitors to stay longer, spend more and enjoy exploring further afield Johannesburg’s amazing calendar of diverse signature events throughout. (PMR Africa: 01 June2012)

The Johannesburg Tourism Company is looking to triple the number of conventions and conferences it hosts by using its new bid fund to lure more business travellers to the city, acting CEO Phelisa Mangcu said. The city which hosts about 10 conventions a year, is far behind its competitors such as Sao Paulo Brazil which plays host to about 9Q big conferences a year. (Business Day: 20 July 2012)

A Trip was organised for people to be exposed to Midrand as a tourist destination. The tour was organised by Midrand Tourism Association in partnership with the Joburg Tourism Company. Visitors praised the organisers for having afforded them the chance to visit Midrand’s interesting places. Tour guide Jenniffer Howard encouraged her guest to make a call in future to tour Midrand’s sites and attractions. (Midrand Reporter: 08 June 2012)


Johannesburg Tourism Company (JTC) hosted a breakfast session during Indaba at which it was announced that JTC will be incorporated into the City’s Communication & Tourism Group. The company will in future trade as Johannesburg Tourism and will continue to operate as usual. (Succeed Supplement A: 01 July 2012)

About Joburg

The best of the City of Joburg will be on display this summer as Joburg Tourism embarks on a mission to showcase and educate the public on the landmarks that have made this world famous city the envy of all. Speaking at the launch of the Joburg Tourism Spring campaign, acting CEO of Joburg Tourism Phelisa Mangcu said the city had a lot to offer by way of entertainment spots, restaurants and hotels, that it had become necessary to promote and showcase them to the general public, "it was with this in mind that the entity collaborated with the Vega School of Brand Leadership to sponsor a photographic competition. (Inner City Gazette: 13 September 2012)

Joburg Tourism team accompanied Executive Mayor, Parks Tau and other high level city delegations to the inaugural and collaborative showcase of business, tourism, arts and culture in Lagos, Nigeria. The City of Johannesburg has partnered with the City of Lagos in Nigeria in an effort to tighten ties between the two cities. (SAFM: 05 October 2012)

Johannesburg will host the Federation of International Canines World Agility championship. Team SA will be represented by 13 dogs and eight dog handlers. Acting CEO of Johannesburg Tourism Phelisa Mangcu, said they were delighted to have secured the event for the country and thanked the local bid team for promoting the city as a possible host. (New Age, The First Edition: 25 October 2012)

Johannesburg’s reputation as a premier destination for international conferences and exhibitions will receive a major boost next year when the city hosts three global summits. The executive mayor, Councillor Mpho Parks Tau said, Johannesburg was selected as the host city for these summits because of its excellent record of success in organising major international events. (Southern Africa Conference, Exhibition & Events Guide: 01 August 2012)

Prominent Issues Reported in the Media:

Business

PMR Africa has completed its annual survey on the City of Johannesburg Metropolitan Municipal Area. The purpose of the survey includes profiling the City of Johannesburg as a growth point and potential investment area for foreign and local developers. Joburg Tourism was named the winner of a Diamond Arrow Award for the company doing the most to promote tourism and conservation in the Joburg region [PMR Africa : 1 September 2012, Pg 54]

Opinion Piece/Article on Predictions for 2013 - Acting JTC CEO, Phelisa Mangcu: “In spite of tough global conditions and increased competition, I’m very upbeat about the outlook for the business events industry in South Africa in the forthcoming year. [Southern Africa Conference Exhibition & Events Guide, 1 December 2012, Pg 16]

African countries are steadily improving their attractiveness as business travel destinations, but in global terms, Africa is still largely overlooked. Business tourism is a lucrative boost for an economy, with expense account visitors spending more than cash-strapped tourists [The Event : 1 February 2013, Pg 16]

International investments in hotels in Johannesburg are nothing new because the city is our main destination for business travel and conferences. So it is no suprise that the increasing active Johannesburg Tourism Company is part of a delegation from the city’s department of economic development attending the 16th international hotel development forum in Berlin this week. [Business Report, The Star, Pg 18, 6 March 2013]


About Joburg Tourism Company

Top 10 SACA Moments in 2012 [CHEF, 1 January 2013, Pg 4 ]

About Joburg [Red Bus]

The City Sightseeing Tours franchise operates in about 100 cities worldwide, with all the buses sporting the same look and feel. The service has now been introduced to Johannesburg, which is the second South African city to join this ever-growing family, with Cape Town the first city in the country to use their services [Ray White Show, 702 Talk Radio, 5 February 2013]

Meetings Africa 2013

Discussion about Meetings Africa 2013 taking place at the Sandton Convention Centre from the 19th - 20th February. (Int:) Laura Vercueil - Communications Manager: Johannesburg Tourism Company Mentions: Indaba, World Credit Congress, Pan African Franchise Federation Conference, Pan-Pacific Business Association, Chartered Institute of Management Accountants, 59th Commonwealth Parliamentary Association, World Anti-doping Agency, World Orchid Conference, Climate Change, One Young World Summit, Gallagher, Expo Centre Nasrec, Coca Cola Dome, Gautrain [Chai FM Afternoon Drive, 16h34, 18 February 2013]

Joburg Fashion Week 2013

Joburg's three-day fashion extravaganza, the Mercedes Benz Fashion Week Joburg 2013 (MBFWJ), kicks off on March 7. This was announced at the launch that was attended by high-profile designers and dignitaries at Wits Art Museum on Monday evening [Inner-City Gazette, Pg 1, 21 February 2013]


MEDIA STATISTICS

TOTAL FROM: 1 July 2012 – 30 June 2013 in LOCAL MEDIA (Print & Broadcast): 194 media items valued at R15 346 135.26

During the Analysis period, 29 June to 29 November 2012, the Johannesburg Tourism Company received a total of 76 media items, of which 52 clips came from print (68%), and 24 clips were from broadcast (32%). The PR Value total was R10,659,571.

JTC Weekly Trend

JTC IMAGE PERCEPTION

Print Broadcast

# PR Value # PR Value

52 4 111 163 24 6 548 408

Positive 2 70 218 2 7 995

Neutral 50 4 040 945 22 6 540 413

Balanced - - - -

Negative - - - -

29 June 2012 - 29 November 2012

# PR Value

Total 76 10 659 571

Print 52 4 111 163

Broadcast 24 6 548 408


Favourability by Clip/Insert Count


1 9 9 , 6 2 0

6 , 3 4 8 ,7 8 8

1 7 8 ,0 0 8

3, 9 3 3 ,1 5 5

‐ 1 0 ,0 0 0 ,0 0 0 20 , 0 00 , 0 00

Ab o u t J o b u rg

Ac co m o d a tio n

Ar ts , Cu lt u re a nd He r it ag e

B u si n e ss

En te r ta i n me n t

P rin t Br o a d ca s t

JTC CONTENT COVERAGE

Print Broadcast

# PR Value # PR Value

52 4 111 163 24 6 548 408

About Joburg 5 178 008 4 199 620

Accommodation - - - -

Arts, Culture and Heritage

- - - -

Business 47 3 933 155 20 6 348 788

Entertainment - - - -

Clip/ Insert Count PR Value

JTC BYLINE & IMAGE PERCEPTION

The following table reflects the byline and a breakdown of their articles in terms of image perception.

Positive Neutral Balanced Total

2 36 - 38

Anna Cox 1 3 - 4

SA Conference, Exhibition & Events Guide Reporter

1 4 - 5

Finweek (Afrikaans) Reporter - 1 - 1

Comaro Chronicle Reporter - 1 - 1

Luzuko Pongoma - 1 - 1

PMR Africa Reporter - 2 - 2

Fania Masia - 1 - 1

Randburg Sun Reporter - 1 - 1

Positive coverage represented 5% for the monitoring period of 29 June – 29 November

2012. Neutral coverage was at 95%, there were no balanced and negative mentions for the

Johannesburg Tourism Company


Audrey D'Angelo - 3 - 3

North Eastern Tribune Reporter - 1 - 1

The Star Africa Reporter - 2 - 2

South African Business Reporter - 6 - 6

Northcliff & Melville Times Reporter - 1 - 1

Beeld, Pols Reporter - 1 - 1

Infocom Reporter - 1 - 1

The Event Reporter - 2 - 2

Engineering News Reporter - 1 - 1

Gauteng Companies Reporter - 2 - 2

Annaleigh Vallie - 1 - 1

Travel News Weekly Reporter - 1 - 1

Magazines # PR Value

34 1 919 709

Southern Africa Conference, Exhibition & Events Guide

6 396 535

Inner City Gazette 4 35 219

Business Day 3 86 280

Event, The 2 76 090

Chef! 2 102 953

New Age, The (First Edition) 2 32 899

Star 2 471 356

Business Report (Sunday Weekend Argus) 1 75 363

Private Life 1 24 189

Sake 24 (Burger Oos Kaap) 1 26 527

North Eastern Tribune 1 7 385


Cape Argus (Am Edition) 1 5 634

Rosebank Killarney Gazette 1 22 557

Business Report (Sunday Independent) 1 163 295

Pretoria News 1 11 718

BEELD, Kuns En Vermaak 1 75 287

Gauteng Companies 1 120 360

Star, Workplace 1 101 755

Travel News Weekly 1 7 977

Finweek (English) 1 76 330

BROADCAST STATIONS [RADIO & TV]

# PR Value

Stations 24 2 182 803

Radio 15 360 861

SAFM 3 12 149

Metro FM 2 141 874

Kaya FM 95.9 2 94 640

RSG 1 48 856

YFM 1 8 930

Channel Africa 1 33 440

Jacaranda 94.2 1 15 114

Fine Music Radio 1 585

Kingfisher FM 1 385

Chai FM 1 2 080

Lotus FM 1 2 808

Television 9 1 821 942

e.News Channel 3 260 400


Soweto TV 2 40 333

CNBC Africa 2 44 275

M-Net 1 1 375 733

SABC 2 1 101 200

JTC MEDIA TYPE

TC REGION

Media Statistics

During the Analysis period, 1 December 2012 to 28 February 2013, the Johannesburg Tourism Company received a total of 43 media items, of which 61% of the clips came from print, 13% from broadcast and 26% from online. The PR Value total was R2, 255,286.26.

During the Analysis period, 1 March – 30 June 2013, the Johannesburg Tourism Company received a total of 75 media items, in local/national media with a total PR Value of R2 431 278.00.

MEDIA STATISTICS/GRAPHS & ANALYSIS RELATING TO JTC COVERAGE REPORTED ABOVE:

Monthly period report reflected in a 3 month trend graph from a single source. Each individual month shows the Clip volumes & AVE volumes by service percentage:

Daily Newspapers took the lead between the 29 June 2012 – 29 November 2012 coverage with 14 clips (27% of the overall print coverage), followed by Business to Business with 11 clips (21% of the overall print coverage). In broadcast media, radio stations took the lead with 60% of coverage.

Nationally based publications took the lead in Print coverage with 31 clips (60%). Gauteng generated the most clips for Broadcast with 16 (58%).


Monthly period report reflected in a 3 month trend graph from a single source. Each individual month shows the Clip volumes & AVE volumes by service percentage


Monthly, Multiple reads, by comparison, to reflect clip quantity as a percentage. Also each individual read shows service breakdown, clip volumes and directional movement:

Monthly demographic analysis report of clip metadata, by service, comparing Media Groups, Media Types and Regions:


Broadcast

Monthly demographic analysis report of clip metadata, by service, comparing Media Groups, Media Types and Regions:


Monthly Statistical summary of top 15 performing titles by clip volume, per service from the current month:


Full listing:


E-MARKETING ACTIVITIES

Database activities

There have been ongoing activities in order to constantly verify the accuracy of product data via the back office administration tool as well as managing the subscriber database.

Currently the Total number of subscribers: 13882

Johannesburg Convention Bureau Partnership Programme

The objective of the partnership programme was to update the Convention Bureau online database, by encouraging partnership by means of online registration. The product provider would thus update their own details by following a link and verifying their own establishment details, via the Backoffice administration tool.

Changes were made on the Backoffice tool in order to split the leisure tourism data from the business tourism data.

This information would be the source of database information for the Meeting Planners’ Guide.

However, the data is not currently feeding the Business Tourism website, because further development could not be done to the Business Tourism website due to Supply Chain Management issues i.e. the CAPEX budget was not allocated to JTC, but to the Group Communications & Tourism department during the merger process.

Online Marketing Activities

The E-Marketing operational activities focus on the various areas in the digital platforms. This includes ongoing activities such as content building, link building and exchanges, search engine optimization (SEO) activities, online promotional activities and Social Media.

However, due to the merger process with the City, and the Supply Chain Management challenges and issues which emanated from this, there has been no further technical development of the JTC website infrastructure.

Thus the integration of the JTC website into a mobile platform, I- pad and touch screens(including integration into online ticketing systems and online purchasing of tickets),


as well as further development to optimise the Business Tourism website and Medical Tourism websites for Search Engine Optimisation, have not taken place. (One can see in the stats below that no ongoing SEO activities have taken place on these sites)

Furthermore, as a result of this, the back office administration tools have also not been integrated into these sites.

The reason for this is that the Capex budget which was supposed to be allocated to JTC, was allocated to the Office of the Executive Mayor. Over and above this, the contract with the supplier ended at the end of January 2012. Thus a new tendering process to appoint a supplier is required.

The Capex budget which was allocated will need be rolled over into the next fiscal, while an SCM process will be followed in order to appoint a new service provider - for a long term period - who specializes in development and integration into travel systems and booking portals.

Website Statistics

Overall JTC Website statistics


Business Tourism website

Medical Tourism website


1 6 2 2 7 1 7 5 7 2 1 6 1 2 2 1 9 2 4 4 1 9 1 1 105 0 0 01 0 0 0 01 5 0 0 02 0 0 0 02 5 0 0 0

Social Media Activities

YouTube - http://www.youtube.com/joburgtourism

Total Upload Views: 18324 (June 2012 -16072)

Subscribers: 37 (June 2012 -19)

Twitter - http://twitter.com/joburgtourism

Tweets: 712 (June 2012 -353)

Following: 231 (June 2012 -137)

Followers: 1451 (June 2012 -434)

Facebook – http://www.facebook.com/johannesburgtourism

No. of Fans: 746 (June 2012 -305)

Friends of Fans: 338458 (June 2012 -169721)

All Traffic Sources

Reports below include statistics up until the end of March 2013, as the contract with the supplier had terminated.

The Joburg Tourism website showed an increase in website traffic of 24% from the second quarter (October – December 2012) to the third quarter (January – March 2013). This means that the website saw an increase in traffic from 49 921 visitors to 62 035 visitors during this period.


10132 11031 1034411822

9686

14128

0

5000

10000

15000

October Novem ber D ecember January February March

4665 45603878

5282 5373 5601

0

2000

4000

6000

October November December January February March

1 2 7 1 2 4 1 2 5 1 2 1 1 2 505 01 0 01 5 0

International Traffic

One of the main business goals of Joburg Tourism Company is to use the website to promote Johannesburg as a destination of choice to international market segments. This means that the Joburg Tourism website needs to attract website visitors from other countries. The graph below indicates that when compared to the second quarter (October – December 2012), the Joburg Tourism website witnessed a growth of 24% in international visitors in the third quarter (January – March 2013) - 13 103 international visitors versus 16 256 visitors respectively.

Local Traffic

The international market is not the only important market segment for Joburg Tourism. Promoting Johannesburg to South Africans as well as the residents of Johannesburg is also essential to the Joburg Tourism marketing strategy. From a look at the graph below, it is evident that the amount of exposure to South Africans in the third quarter (January – March 2013) has remained relatively constant, when compared to previous quarter (October – December 2012), showing an improvement of only 13%. This equates to an increase from 31 507 visits to 35 631 visits.

Website User Interaction

This section of the report covers the various metrics that reflect how users interact with the Joburg Tourism website. Below are the percentage changes for each of the metrics for the third quarter (January – March 2013), as compared to the second quarter (October – December 2012):

Average Visit Duration: -3.94% (Measured in Seconds)


57.97 60.3 59.42 59.64 59.9 58.59

0

20

40

60

80

2.93 2.79 2.92 2.88 2.79 2.77

0

1

2

3

4

Bounce Rate: 0.59%

Pages Per Visit: -2.8%

Referral Traffic

Referral traffic emanates from people who visit websites (other than yours) and click on links that point to your website.

This is the only traffic source on the Joburg Tourism website that declined in the third quarter (January – March 2013), when compared to the second quarter (October – December 2012). The amount of referral traffic declined by 13% (3014 visits to 2622 visits) over this period and is most likely due to other websites removing their links to Joburg Tourism, or to other websites which are no longer active.


SEO (Search Engine Optimisation) Activities Until the Third Quarter (March 2013)

The main focus of the SEO activities was to do link building and the research conducted for link building. Link building is one of the most time consuming and difficult activities of an SEO campaign, but it yields the most results compared to any other activity. There are three main tasks that need to be performed in order to acquire links for a website. These include:

o Research

o Evaluation

o Prospecting

Research for link building involves a number of different sub tasks, but in summary it is the process of determining the types of link that need to be acquired to improve a website’s overall link profile, then numbering of each of these links and indexing where one can find those links.

Evaluation in terms of link building is the process of evaluating the quality of each link prospect we find. This includes going through each website we find as a prospect, looking at factors such as link placement, page authority, domain authority, backlink profile to the page and domain, as well as a number of other factors. Making sure that one has the right links pointing to a website is essential for the success of the SEO campaign.

Prospecting for links is the final step in the link building process. This involves creating content that can be distributed to webmasters in exchange for links to one’s website, as well as submitting the website to directories and even building relationships on different social media websites.


A total of 35 articles were written, specifically for this purpose.

Link Profiles

The following Pie Charts show the link profiles of the Joburg Tourism website and its three main competitors.

Joburg Tourism

Safari Now

SA Venues


Joburg.org

Link Growth

The following graph shows the link growth of the Joburg Tourism website over all time.

Paid Traffic

Paid traffic counts all the visitors to a website via Google AdWords ads, paid search engine keywords and other online paid ad campaigns. Our primary source of paid traffic to the Joburg Tourism website is from Google AdWords. With this type of traffic one pays for every person that clicks on your ad (and visits your website), and so there is a direct correlation between spend and paid traffic.

In the second quarter (October – December 2012) Joburg Tourism spent R73 408.28, as opposed to a spend of R87 363.06 in the third quarter (January – March 2013) - an increase of 19%. Subsequently, the traffic for the third quarter showed an increase of 36% - - from 20 091 visits in the second quarter to 27 236 visits in the third.


1583 15971170

14931706

2473

0

1000

2000

3000


Direct Traffic

Direct traffic is all the traffic that one website receives from people who navigate to a site directly by typing in the website’s URL, or by using one of their bookmarks. There are a number of reasons why people would visit a site directly. A a few of the main reasons are listed below:

People familiar with a brand and a website who want to find information or interact with the company;

People driven by word of mouth. Someone recommends a website to someone else and they visit the website;

People driven by offline campaigns – e.g. ads on TV, radio or a billboard motivated them to visit your website (type in your website’s URL).

From the graph below, it’s evident that the Joburg Tourism website received 35% more Direct Visits in the third quarter (January – March 2013) with 3643 visits, compared 4946 in the second quarter (October – December 2012. Over 85% of these visits were from new visitors to the site which means that this increase in traffic was most likely due to word of mouth recommendations to visit the website, or to offline advertising efforts.


Organic Traffic

Organic traffic to a website is generated by search engines. An organic visit to a website occurs, for example, when one performs a search for “Joburg Tourism” on Google and then clicks on the website in the search results.

The organic traffic to the Joburg Tourism website showed a significant increase of visitors in the third quarter (January – March 2013), when compared to the previous quarter (October – December 2012). The third quarter indicated an increase of 33% - a difference of 6552 visits – i.e. 19 940 visits in the second quarter compared to 26 492 visits in the third quarter).

Two factors that contributed to this increase in traffic include the low traffic volumes in December 2012, (a seasonal trend in traffic across the industry),versus the higher organic traffic volumes in March 2013.


953 828 594 686 679

3190

0

1000

2000

3000

4000


27 2239 42 42

168

0

50

100

150

200

October NovemberDecember January February March

Accommodation Enquiries

In the third quarter (January – March 2013), JTC focused its efforts on increasing the number of accommodation enquiries on the Joburg Tourism Website. The rationale for this is to reach out and promote Joburg as a destination to people who are already travelling to other destinations within the country. JTC increased the number of enquiries its website received by 186% in the third quarter with 252 enquiries, compared to the previous quarter (October – December 2012), which only reflected 88 enquiries.

Number of URLs Receiving Entrances Via Search

The number of URLs on a website that receive entrances via search (or search engines), indicates the amount of URLs that are indexed by search engines. The more URLs indexed by search engines the better. The number of URLs receiving entrances via search increased by 141% in the third quarter (January – March 2013), when compared to previous quarter (October – December 2012) - from 1478 URLs to 3565 URLs.


29672354 1942 2355 2663

5146

0

2000

4000

6000


Number of Keywords Sending Search Visits

Keywords are used by people searching the web to find relevant content. So the more keywords that send traffic to one’s website, the more people will find your website. This also means that a website is being ranked by search engines for more keyword phrases. The number of keywords sending search visits to the Joburg Tourism website increased by 41% in the third quarter (January – March 2013), compared to previous quarter (October – December 2012) - from 6407 keywords to 9056 keywords.

Booking Portal

Traffic versus. Enquiries

When looking at the amount of traffic targeted at people looking for accommodation versus the number of enquiries, one will notice that there is a direct correlation between these two metrics. The graph below represents the amount of traffic (both PPC and Organic), targeted to reach searchers looking for accommodation, compared to the number of enquiries generated by the website.

Visits


Enquiries

Online Packages

The following packages were uploaded onto the booking portal:

Five FNB Whisky Live Stay packages for 2012, as well as Hertz chauffeur drive packages were uploaded onto the travel portal, which included accommodation (with Tsogo Sun as primary event sponsor) in Joburg, Cape Town and Durban.


The following AFCON packages have been uploaded onto the Joburg Tourism website:


On-line AFCON 2013 Tournament packages

To maximize promotional and information dissemination opportunities, we created an informative AFCON 2013 platform on the Joburg Tourism website, on which the travel packages and other relevant destination information was loaded.

Below are the examples of JTC screen dumps with the 2013 AFCON packages and destination information.


Booking enquiries

Since the integration of the JTC website and the travel portal and the restructuring of the content layout on the JTC website, there has been a noticeable increase in the number of enquiries received through the booking portal


INFORMATION DISSEMINATION

Marketing collateral distribution:

In line with Joburg Tourism’s strategic marketing objectives, brochures were distributed to different recipients in bulk as outlined below. A total of 15 830 different Joburg brochures were disseminated through the Visitor Services Bureau (VSB) during these three quarters, while 17 538 were distributed by Brochure Management throughout Gauteng province. The total number of brochures distributed through JTC and Brochure Management during these three quarters under review amounts to 33 368.

Areas of distribution included, but not limited to:

tour operators

accommodation establishments

attractions

events

The brochures listed below were distributed through JTC offices:

Joburg Experience


Joburg Maps

Spring Campaign

Joburg Style

SMME Brochure

Joburg Brochure (Melville & Braamfontein)

City Sightseeing Tour Brochure

Newtown Brochure

African Cup Of Nations 2013 Brochure

Brochure Management focused on distributing the following brochures:

Spring Campaign Flyer



Joburg Routes

Production of Brochures

Joburg Art Gallery Route, African Cup of Nations (AFCON) and Spring Campaign brochures were produced and distribution took place via JTC information offices and strategic tourism touch points. AFCON brochures were also distributed to strategic African countries where JTC participated in AFCON activations.

Enquiries at Tourism Information Offices

The diagram below gives an overview of visitor statistics at JTC’s three information offices during the year under review. As indicated, Park Station continues to be the busiest office of all.

The diagrams below show visitor statistics at JTC’s three information offices. The breakdown gives figures [per information office] for midterm, as well as for the third and fourth quarters under review. Park Station continues to

be the busiest office of the three information offices.


Midterm statistics (1 July – 31 December 2012)

JTC HEAD OFFICE

3rd quarter statistics (1 January – 31 March 2013)


4th quarter statistics (1 April – 30 June 2013)




Visitor Statistics from Tourist Attractions

The diagrams below illustrate statistics from strategic Johannesburg based tourism attractions for the period under review.

The first diagram shows statistics from strategic Johannesburg based tourism attractions during the first three quarters.

The diagram below illustrates statistics from strategic Johannesburg based tourism attractions during the last quarter.


Visitor surveys

Concise survey report from 1 July 2012 – 30 June 2013

JTC currently has 18 survey devices placed at attractions around the city, including the JTC Information Offices. The report below gives the results of visitor participation in the short survey, during the period 1 July 2012 – 30 June 2013. The survey indicates that the majority of visitors are local residents, hence the importance of not neglecting domestic tourism in our marketing efforts.


Conference Centre at Soweto Tourism Information Centre (STIC)

The Soweto Hotel continues to be the main source of conference bookings at STIC. During the period under review, the Soweto Hotel contributed largely towards the generation of income of R76080.84, through utilizing the facilities, as well as referring clients to the conference centre at STIC.

The JTC Conference Centre at Soweto Tourism Information Centre is currently struggling to bring in revenue, but there is a contingency plan to counter this challenge, with the Joburg Convention Bureau also including STIC in its collateral of conference venues to be promoted in Joburg. There are three venues at Walter Sisulu Square of Dedication, including JTC’s venue and there is an apparent lack of demand for all three venues. All parties concerned have acknowledged this weakness and discussions are underway to form a joint marketing platform to increase revenue for all these venues.

Two organizations utilised the venue on a complimentary basis:

Hector Pieterson Museum (8 August 2012)

Proserv (20 August 2012)


Section 5: Assessment of Arrears on municipal taxes and service charges

Directors’ and Senior Managers’ Municipal Accounts

In terms of Chapter 12 of the Municipal Finance Management Act (no 56 of 2003), section 124, it is required to disclose any arrears owed to the Municipality for rates and services for more than 90 days. In the case of the Directors of the Board and Senior Officials, the current status is disclosed as follows:

Name Designation Name of Municipality Municipal Account Name/ Number

Status

Mathews Moavodi Non-Executive Director Roodeport

Soweto

302364491

404028523

Current

Nomvuyiso Batyi Non-Executive Director Johannesburg 900889061 Current

Wessel Roodt Non-Executive Director Ekurhuleni 1701984993 Current

Shelley Childs Non-Executive Director City of Tshwane 2030021176 Current

Karen Parirenyatwa Non-Executive Director Johannesburg 402411610 Current

Norman Mametja Non-Executive Director City of Tshwane 5004114181 Current

Neren Rau Independent Audit Committee

Johannesburg 202689425 Current

Albert Torres Independent Audit Committee

Johannesburg 302490376 Current

Cleopas Sanangura Independent Audit Committee

Ekurhuleni 1704031927 Current

Phelisa Mangcu GM: Visitors Services Bureau

Does not currently have a municipal account.

N/A N/A

Simphiwe Bana Chief Financial Officer Does not currently have a municipal account.

N/A N/A


Section 6: Statement on amounts owed by Government Departments and public entities

As at the end of June 2013, the organisation was not aware of any amounts owed by Government Departments.

Section 7: Recommendations and Plans for the next financial year.

On 31 May 2013, the functions of Joburg Tourism Company (NPC) were transferred to the City of Johannesburg Metropolitan Municipality, as part of the Institutional Review Process which preceded the transfer.

All plans and budgets are now part of Group Communication & Tourism, within the City of Johannesburg Metropolitan Municipality.


CHAPTER FOUR

HUMAN RESOURCES & ORGANISATIONAL MANAGEMENT


JTC Executive Management Team: 1 July 2012 – 30 June 2013

Name Designation Age Qualifications Skills

Phelisa Mangcu

GM: Visitors Services Bureau

45 Master of Arts [Tourism]

Masters Certificate in Tourism Destination Management

Bachelor of Arts [BA]

Business Analyst, Corporate Social Investment and Tourism Development

Simphiwe Bana Chief Financial Officer

37 Bachelor of Accounting Science – (BCompt)

Governance, Strategic Leadership, Management, Auditing, Financial Management, Business Analysis and Reporting.


JOHANNESBURG TOURISM COMPANY ORGANOGRAM


Section 1: Human Resource Management

The entity’s overall objective as set out in its employment policy is to ensure that the company’s employment practices and remuneration policies motivate and retain talented employees and create an attractive environment for all employees. The employment policy is periodically reviewed to ensure that it remains relevant and practical for the changing needs of current and potential employees.

Our vision is to be the employer of choice in our field. Our vision is to operate at the top end of compliance by including such requirements into our working practices.

Section 2: Employment Equity

The Company has employment policies that it believes are appropriate to the business and the market in which it trades. Equal employment opportunities are offered to all employees. We firmly endorse the four key areas of employment equity identified by the Employment Equity Act:

elimination of discrimination in decision-making;

promotion of employee diversity;

reduction of barriers to advancement of the disadvantaged; and

introduction of measures and procedures for transformation.

The entity’s employment equity programme was extremely progressive and we exceeded the targets set. Our conviction to ensure material participation of previously disadvantaged companies and individuals is demonstrated by the degree of procurement spent on the designated companies and individuals.

Section 3: Skills Development and Training

The entity is committed to the maintenance of standards by supporting and training staff through its world-class skills development programme. This programme aims to develop both technical and people skills required for the company to conduct its business on an effective basis. Our skills development programmes are in line with the requirements of the Skills Development Act and our workplace plan (WSP) is aligned to our business plan -focus is placed on occupational specific programmes, management development and legally required training.

In the 2013/14 financial year, our training will focus on the development of specific competencies relating to our future strategy for the company i.e. project management, risk management, quality assurance, supply chain management and financial management.

Section 4: Performance Management

Performance Management was implemented for all management levels on the organisational structure. The balanced scorecard is the tool being used for measurement. The performance indicators are linked to the Company objectives and the IDP scorecard. Additional objectives are included to reinforce the culture of governance and risk management among managers.

The Company started the rollout process to ensure that all employees in supervisory positions are included in the performance management strategy. Training of underperforming officials is being introduced as part of our coaching and mentorship process to improve the performance levels. Performance Management is being adopted as a positive management strategy rather than a punitive process, and in this way employees feel comfortable to be part of the process.

The entity will continue to set new standards of service delivery and our customer relationship programme will serve as a pillar for our on-going success. We remain firm in our commitment to sound stakeholder relationships and are committed to managing both short-term and long-term plans to standards that will ultimately benefit our communities.

The challenges that we face are the increasing portfolio and a budget that is not scientifically proportionate to it. We will, however, continue to strive for operational effectiveness and, with our


customers and stakeholders, we will collectively focus on improving the environmental well-being of our society.

Section 5: HIV/AIDS in the Workplace

Owing to the size of the Joburg Tourism entity, HIV/AIDS policies are not in place. However, as a result of the integration process, employees now have access to the City’s wellness programmes.

Section 6: Employee Benefits

The Company is a participating employer in one or more of the various retirement benefit schemes through which the City of Johannesburg Metropolitan Municipality and its associated Utilities, Agencies and Companies (UACs) provide post-employment benefits to all their permanent employees through 8 (eight) Defined Contribution Funds and 8 Defined Benefit Funds. The following funds provide pension benefits for the Group employees:

Defined Contribution Funds:

E-Joburg Retirement Fund

City Power Retirement Fund

Municipal Employees Gratuity Fund

Municipal Gratuity Fund

National Fund for Municipal Workers

Meshawu National Local Authorities Retirement Fund

Municipal Councillors Pension Fund

South African Municipal Workers Union National Provident Fund

Employee Benefits

At the beginning of the financial year, employees were paid on a total cost to company basis, which included membership of an approved provident fund managed by Liberty Life, as well as compulsory membership of a medical scheme operated by Discovery Health. As from 1 December 2012, employee benefits were aligned with those of the core departments of COJ. Employees were given an option to join the medical aid schemes administered by the City. All employees migrated to the e-Joburg Pension fund and all other relevant policies of the city were automatically adopted.

Section 7: Supply Chain Management and Black Economic Empowerment

During the financial period under review the payment of suppliers was moved across to the City of Johannesburg Metropolitan Council. This is evident from the reduction in other expenditure.

Economic Impact: Supply Chain Management and Black Economic Empowerment

The Company’s Supply Chain Management policy is in line with the MFMA, National Treasury and the Municipal Supply Chain Management Regulations (2005). Compliance to the policy is strictly enforced and monitored. The Company has adopted a policy of procuring a certain percentage of the total procurement from BEE compliant vendors, especially SMME service providers. This is incorporated in the finance scorecard.

As required by Regulation 45 of the Local Government: Supply Chain Management Regulation (2005), we are not aware of any situation where awards were made to spouses, children or parents of persons in the service of the state - or have been in the service of the state in the previous twelve months.


CHAPTER FIVE

FINANCIAL PERFORMANCE

Johannesburg Tourism Company NPC

Financial Statements for the year ended 30 June 2013

Attach signed Audited Financial Statements by Auditor- General

KEY ACHIEVEMENTS

Successful transfer of human resources, operations and assets to the City of Johannesburg Metropolitan Municipality by 31 May 2013.

These financial statements were prepared by: Victor Changwa (Financial Accountant)

The Annual Financial Statements have been audited by: The Auditor General of South Africa


Johannesburg Tourism Company NPC (Registration number 2003/0089973/08) Financial Statements for the year ended 30 June 2013

Section 1: General Information

COUNTRY OF INCORPORATION AND DOMICILE South Africa NATURE OF BUSINESS AND PRINCIPAL ACTIVITIES Establishing and Developing Tourism in the City of Johannesburg DIRECTORS Mathews Ramono Moavodi Nomvuyiso Antoinette Batyi Hendrik Wessel Roodt Karen Parirenyatwa Phelisa Mangcu REGISTERED OFFICE Ground Floor, Grosvenor Corner 195 Jan Smut Avenue Parktown North Johannesburg BUSINESS ADDRESS Ground Floor, Grosvenor Corner 195 Jan Smut Avenue Parktown North Johannesburg 2012 POSTAL ADDRESS PO Box 1293 Parklands 2012 AUDITORS The Auditor General of South Africa COMPANY REGISTRATION NUMBER 2003/0089973/08 PREPARER The financial statements were internally compiled by: Victor Changwa Financial Accountant The reports and statements set out below comprise the financial statements presented to the shareholder:


Abbreviations

COID Compensation for Occupational Injuries and Diseases

CRR Capital Replacement Reserve

DBSA Development Bank of South Africa

SA GAAP South African Statements of Generally Accepted Accounting Practice

GRAP Generally Recognised Accounting Practice

GAMAP Generally Accepted Municipal Accounting Practice

HDF Housing Development Fund

IAS International Accounting Standards

IMFO Institute of Municipal Finance Officers

IPSAS International Public Sector Accounting Standards

ME's Municipal Entities

MEC Member of the Executive Council

MFMA Municipal Finance Management Act

MIG Municipal Infrastructure Grant (Previously CMIP)



Section 2: Accounting Officer's Responsibilities and Approval

The directors are required by the Municipal Finance Management Act (Act 56 of 2003), to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of the directors to ensure that the financial statements fairly present the state of affairs of the entity as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the financial statements and were given unrestricted access to all financial records and related data.

The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GAAP) and Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the entity and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the accounting officer sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the entity is on identifying, assessing, managing and monitoring all known forms of risk across the entity. While operating risk cannot be fully eliminated, the entity endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.

The sole member, City of Johannesburg Metroplitan Municipality (CJMM), undertook an institutional review. In terms of the institutional review, the functions of Johannesburg Tourism Company were intergrated into the Communications and Tourism Department. During the year under review the assets and liabilities were transferred to CJMM in terms of Grap 105 principles.

Although the accounting officer is primarily responsible for the financial affairs of the entity, she is supported by the entity's external auditors.

The external auditors are responsible for independently reviewing and reporting on the entity's financial statements. The financial statements set out on pages 5 to 35, which have been prepared on the discontinuing concern basis, were approved on 27August 2013 and were signed on its behalf by:

________________________ __________________________ Gavin Pringle Hendrik Wessel Roodt Acting Chief Financial Officer Chairperson



Section 3: Risk and Audit Committee Report

We are pleased to present our report for the financial year ended 30 June 2013 as below.

Risk and Audit Committee members and attendance

The audit committee consists of the members listed hereunder and should meet at least 4 times per annum as per its approved terms of reference. During the current year 7 meetings were held.

Name of member Number of meetings attended Karen Parirenyatwa 4 Neren Rau (Retired 11 March 2013) 3 Albert Torres 7 Cleopas Sanangura 7

Risk and Audit committee responsibility

We report that we have adopted appropriate formal terms of reference in our charter in line with requirements of section 166 (2) (a) of the Municipal Finance Management Act (MFMA). We further report that we have conducted our affairs in compliance with this charter. As resolved at the Annual General Meeting (AGM) held on the 11 March 2013, Naren Rau was retired as a Board member and Risk and Audit committee member on the 11 March 2013. Only a limited number of Board members were retained for the purpose of winding up the Company.

The effectiveness of internal control

Evaluation of financial statements

The Risk and Audit Committee has:

reviewed and discussed the audited financial statements to be included in the Annual Report, with the Auditor-General;

reviewed the Auditor-General of South Africa's management report and management’s response thereto;

reviewed the entities compliance with legal and regulatory provisions;

reviewed significant adjustments resulting from the audit.

The Risk and Audit Committee concur with and accept the Auditor-General of South Africa's report the financial statements, and are of the opinion that the audited financial statements should be accepted and read together with the report of the Auditor-General of South Africa.

Internal audit

The Risk and Audit Committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the entity and its audits.

Auditor-General of South Africa

The Risk and Audit Committee has met with the Auditor-General of South Africa to ensure that there are no unresolved issues. 28 November 2013 _____________________________________ _____________________

Chairperson of the Risk and Audit Committee Date



Section 4: Accounting Officer's Report

The Directors submit their report for the year ended 30 June 2013.

1. INCORPORATION

The entity was incorporated on 16 April 2003 and obtained its certificate to commence business on the same day.

2. REVIEW OF ACTIVITIES

Main Business and Operations

The Johannesburg Tourism Company is a municipal entity. The principal activity of the company is the establishment and development of tourism in the City of Johannesburg.

During the year, the City Of Johannesburg resolved that the entity's functions be transferred and be merged with that of Public Liaison Department to form Group Communications and Tourism Department. The transfer of assets and liabilities was done effective from 31 May 2013.

To achieve its aims, the company operates the Johannesburg Convention Bureau, Johannesburg Tourism Information and Visitors' Bureau, Tourism Development, Destination Marketing and Communication.

The Johannesburg Convention Bureau focuses on bidding and tendering to attract significant national and international events to be hosted in Johannesburg. To achieve this, the Bureau works in close liaison with and capitalises on the support of the private sector as well as public sector institutions. The Convention Bureau is the core business of the Company. The Johannesburg Tourism Information and Visitors' Bureau provides ancillary and supportive tourism information services to the residents of, and visitors to, the City of Johannesburg. The aim is to encourage residents and visitors alike to explore and enjoy the tourist and other attractions of the City of Johannesburg to their fullest. Tourism Development, focused on growing tourism and related industry including tourism infrastructure development. They also look after the SMME development of the tourism sector and the development of skills. The Destination Marketing and Communication Department aims at promoting and positioning Johannesburg as a prime Business Tourism Destination by ensuring that the following strategic objectives area achieved, increased volumes, length of stay, spend and reduced seasonality pattern that's contributing towards sustainable growth, job creation and transformation. The Company uses the slogan “Enjoy another day in Johannesburg”.

The Board is satisfied with the overall performance taking into account that the entity's budget for the financial year 2012/13 was ring fenced within the Group Communications and Tourism department of COJ.

The operating results and state of affairs of the company are fully set out in the attached annual financial statements and do not in our opinion require any further comment.

Net deficit of the entity was R 17 604 351 (2012: surplus R 7 602 820). The company is exempt from income tax.

3. DIRECTORS PERSONAL FINANCIAL INTEREST IN CONTRACTS

The Directors of the company did not have any interest in contracts entered into by the company.

4. ACCOUNTING POLICIES

The Annual Financial Statements were prepared in accordance with the prescribed Standards of Generally Recognised Accounting Practices (GRAP) issued by the Accounting Standards Board as the prescribed framework by National Treasury. The principles of GRAP 105 for transfer of functions between entities under common control were applied in formulating an accounting policy.


5. BORROWING LIMITATIONS

In terms of the Articles of Association of the entity, the directors may exercise all the powers of the entity to borrow money, as they consider appropriate, but this is subject to the approval of the City of Johannesburg Metropolitan Municipality.

6. GOING CONCERN

As a result of the institutional review process by the City of Johannesburg leading to the integration of JTC's operations into the City on 31 May 2013, the Annual Financial Statements are prepared on a discontinuing operations basis and significant adjustments have been passed to account for the integration process. The transfer of Johannesburg Tourism Company functions together with assets with carrying value of R 4,278,334 and liabilities of R 3,375,381 was done on 31 May 2013.

7. DIRECTORS

The directors of the entity during the year and to the date of this report are as follows:

Name Nationality Changes

Mathews Ramono Moavodi South African

Nomvuyiso Antoinette Batyi South African

Hendrik Wessel Roodt South African

Shelley Jeanne Childs South African Retired 11 March 2013

Karen Parirenyatwa South African

Norman Kgopong Mametja South African Retired 11 March 2013

Phelisa Mangcu South African

Naren Rau South African Retired 11 March 2013

8. CORPORATE GOVERNANCE

General

The Directors are committed to business integrity, transparency and professionalism in all its activities. As part of this commitment, the Accounting Officer supports the highest standards of corporate governance and the ongoing development of best practice.

The entity confirms and acknowledges its responsibility to total compliance with the Code of Corporate Governance and Conduct ("the Code") laid out in the King III Report. The Accounting Officer discussed the responsibilities of management in this respect, at Board meetings and monitored the entity's compliance with the code on a regular basis.

The salient features of the Entity's adoption of the Code are outlined below:

Board of Directors

The Board:

retains full control over the entity, its plans and strategy;

acknowledges its responsibilities as to strategy, compliance with internal policies, external laws and regulations,

effective risk management and performance measurement, transparency and effective communication both internally and externally by the entity;

is of a unitary structure comprising:

- 4 Non-executive directors, all of whom are independent directors as defined in the Code; and - 1 Executive director.


Chairperson and Chief Executive Officer

The Chairperson is a Non-Executive and an Independent Director (as defined by the Code).

The roles of Chairperson and Chief Executive are separate, with responsibilities divided between them, so that no individual has unfettered powers of discretion.

Remuneration

The upper limits of the remuneration of the Chief Executive Officer, and the Chief Financial Officer are determined by the City of Johannesburg, and the Directors will determine the remuneration within the above mentioned limits.

Board Meetings

The Directors have met on 7 separate occasions during the financial year of which one of these 7 meetings, was a Board Strategy Session. The Directors schedule to meet at least 8 times per annum.

Non-executive directors have access to all members of management of the entity.

Name Board Meeting

Audit Committee

Meeting

HR Remco Marketing AGM

Mathews Ramono Moavodi 7

Nomvuyiso Antoinette Batyi 6 3

Karen Parirenyatwa 4 4 1

Naren Rau 4 3 1

Albert Torres 6 7 1

Cleopas Sanangura 7 1

Phelisa Mangcu (Acting CEO) 7 7 3 3 1

Shelley Jeanne Childs 4 3 1

Norman Kgopong Mametja 5 3 1

Hendrik Wessel Roodt 7 2 3 1

Risk and Audit Committee

The Risk and Audit Committee is responsible for ensuring that all the activities of the company are subject to independent review. It also monitors on behalf of the Board, the company's financial affairs and its relationship with its auditors. Seven meetings were held during the year. The committee has the following responsibilities:

Monitoring the quality, integrity and reliability of the company’s compliance with the relevant legislation and ensuring that an appropriate system of internal control is maintained to protect the assets of the company.

The evaluation of the independence, objectivity and effectiveness of the external and internal auditors, considering the accounting and auditing policies and addressing concerns, identified by the auditors.

Promoting the accuracy, reliability and credibility of financial reporting and reviewing the annual financial statements and annual report of the company for recommendation for approval by the Board.

Risk management and the implementation and monitoring of risk management programmes and internal control systems on behalf of the Board.

The Audit and Risk Committee was chaired by an independent member, Albert Torres. The chairman attends Board meetings in order to give feedback on the work of the committee. The committee is assisted by three


independent members appointed by the City of Johannesburg; they are Neren Rau, Cleopas Sanangura, and Karen Parirenyatwa. The Acting Chief Executive Officer and the Chief Financial Officer attend Risk and Audit Committee meetings as Ex officio.

Internal Audit

The Internal Auditors have conducted a close out internal audit and have been mandated to monitor the wind up and integration process.

9. CONTROLLING ENTITY

The entity's controlling entity is the City of Johannesburg Metropolitan Municipality. The entity is a non profit company.

10. AUDITORS

The Auditor General of South Africa will continue in office in accordance with the Public Audit Act No 25, section 92 of the Municipal Finance Management Act No 56 of 2003 and Act 71 of 2008 of the Companies Act.


Company Secretary’s Certification

Declaration by the company secretary in respect of Section 88(2)(e) of the Companies Act

In terms of Section 88(2)(e) of the Companies Act 71 of 2008, as amended, I certify that the company has lodged with the Commissioner all such returns as are required of a public company in terms of the Companies Act and that all such returns are true, correct and up to date.



Section 5: Accounting Policies

1. Presentation of Financial Statements

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

These financial statements have been prepared on the discontinuing operation basis of accounting and GRAP 105 principles have been used as a guide in their preparation and presentation. They are presented in South African Rand.

A summary of the significant accounting policies, which have been consistently applied, are disclosed below.

a. Transfer of functions between entities under common control

Definitions

An acquirer is the entity that obtains control of the acquiree or transferor.

Carrying amount of an asset or liability is the amount at which an asset or liability is recognised in the statement of financial position.

Control is the power to govern the financial and operating policies of another entity so as to benefit from its activities.

A function is an integrated set of activities that is capable of being conducted and managed for purposes of achieving an entity’s objectives, either by providing economic benefits or service potential.

Transfer date is the dates as agreed to per the transfer agreement. The transfer of JTC function to the City Of Johannesburg will take place in phases as per the action plan.

A transfer of functions is the reorganisation and/or the re-allocation of functions between entities by transferring functions between entities or into another entity.

A transferor is the entity that relinquishes control of a function.

Common control - For a transaction or event to occur between entities under common control, the transaction or event needs to be undertaken between entities within the same sphere of government or between entities that are part of the same economic entity. Entities that are ultimately controlled by the same entity before and after the transfer of functions are within the same economic entity.

A function is an integrated set of activities that is capable of being conducted and managed for purposes of achieving an entity‘s objectives, either by providing economic benefits or service potential. A function consists of inputs and processes applied to those inputs that have the ability to create outputs. A function can either be a part or a portion of an entity or can consist of the whole entity. Although functions may have outputs, outputs are not required to qualify as a function. The three elements of a function are defined as follows:

Input: Any resource that creates, or has the ability to create, outputs when one or more processes are applied to it.

Process: Any system, standard, protocol, convention or rule that when applied to an input or inputs, creates or has the ability to create outputs.

Output: The result of inputs and processes applied to achieve and improve efficiency. This may be in the form of achieving service delivery objectives, or the delivery of goods and/or services.

Identifying the acquirer and transferor

For each transfer of functions between entities under common control an acquirer and transferor are identified. All relevant facts and circumstances are considered in identifying the acquirer and transferor.


The terms and conditions of a transfer of functions undertaken between entities under common control are set out in a binding arrangement. The binding arrangement governing the terms and conditions of a transfer of functions may identify which entity to the transaction or event is the transferor(s) and which entity is the acquirer. Where the binding arrangement does not clearly identify the acquirer or the transferor, the behaviour or actions of the entities may indicate which entity is the acquirer and which entity is the transferor.

Determining the acquirer includes a consideration of, amongst other things, which of the entities involved in the transfer of functions initiated the transaction or event, the relative size of the entities, as well as whether the assets or revenue of one of the entities involved in the transaction or event significantly exceed those of the other entities.

b. Significant judgements and sources of estimation uncertainty (continued)

Determining the transfer date

The acquirer and the transferor identify the transfer date, which is the date on which the acquirer obtains control and the transferor loses control of that function.

All relevant facts and circumstances are considered in identifying the transfer date.

Assets acquired / [transferred] and liabilities assumed / [relinquished]

The de-recognition of assets and liabilities, is subject to the following conditions:

The assets transferred and the liabilities relinquished are part of what had been agreed in terms of the binding arrangement (if applicable), rather than the result of separate transactions.

c. Significant judgements and sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. Significant judgements include:

Provisions

Provisions are recognised as liabilities (assuming that a reliable estimate can be made) when they are present obligations and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligations;

Useful lives of fixed assets

The company's management determines the estimated useful lives and related depreciation charges for the fixed assets. This estimate is based on industry norm. Management will increase the depreciation charge where useful lives are less than previously estimated useful lives.

d. Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.


The cost of an item of property, plant and equipment is recognised as an asset when:

it is probable that future economic benefits or service potential associated with the item will flow to the entity;

and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item's fair value was not determinable, it's deemed cost is the carrying amount of the asset(s) given up.

When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

Depreciation of property, plant and equipment begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation ceases when the asset is derecognised.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Average useful life

Leasehold property 5 Years

Motor vehicles 7 Years

Office equipment 10 Years

IT equipment 5 Years

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unless expectations differ from the previous estimate.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Items of entity are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.


The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

Assets which the entity holds for rentals to others and subsequently routinely sell as part of the ordinary course of activities, are transferred to inventories when the rentals end and the assets are available-for-sale. These assets are not accounted for as non-current assets held for sale. Proceeds from sales of these assets are recognised as revenue. All cash flows on these assets are included in cash flows from operating activities in the entity.

e. Intangible assets

An asset is identified as an intangible asset when it:

is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, assets or liability; or

arises from contractual rights or other legal rights, regardless whether those rights are transferable or separate from the entity or from other rights and obligations.

An intangible asset is recognised when:

it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and

the cost or fair value of the asset can be measured reliably.

Intangible assets are initially recognised at cost.

An intangible asset acquired through a non-exchange transaction, the cost shall be its fair value as at the date of acquisition.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful life

Computer software 5 Years

Website 5 Years


f. Financial instruments

Classification

The entity classifies financial assets and financial liabilities into loans and receivables.

Classification depends on the purpose for which the financial instruments were obtained / incurred and takes place at initial recognition.

Initial recognition and measurement

Financial instruments are recognised initially when the entity becomes a party to the contractual provisions of the instruments.

The entity classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Fair value determination

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the entity establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.

Loans to shareholders, directors, managers and employees

These financial assets are classified as loans and receivables.

Receivables from exchange transactions

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in surplus or deficit when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the deficit is recognised in surplus or deficit within operating expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in surplus or deficit.

Trade and other receivables are classified as loans and receivables.

Payables from exchange transactions

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.


g. Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

h. Employee benefits

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.

The expected cost of surplus sharing and bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

i. Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the municipality receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.


Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

the amount of revenue can be measured reliably;

it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;

the stage of completion of the transaction at the reporting date can be measured reliably; and

the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on a straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the significant act is executed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is determined by.

j. Revenue from non-exchange transactions

Non-exchange transactions are defined as transactions where the entity receives value from another entity without directly giving approximately equal value in exchange.

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Municipal grants

Municipal grants are recognised as revenue when:

it is probable that the economic benefits or service potential associated with the transaction will flow to the entity,

the amount of the revenue can be measured reliably, and

to the extent that there has been compliance with any restrictions associated with the grant.

The entity assesses the degree of certainty attached to the flow of future economic benefits or service potential on the basis of the available evidence. Certain grants payable by one level of government to another are subject to the availability of funds. Revenue from these grants is only recognised when it is probable that the economic benefits or service potential associated with the transaction will flow to the entity. An announcement at the beginning of a financial year that grants may be available for qualifying entities in accordance with an agreed programme may not be sufficient evidence of the probability of the flow. Revenue is then only recognised once evidence of the probability of the flow becomes available.


Restrictions on government grants may result in such revenue being recognised on a time proportion basis. Where there is no restriction on the period, such revenue is recognised on receipt or when the Act becomes effective, which-ever is earlier.

When government remit grants on a re-imbursement basis, revenue is recognised when the qualifying expense has been incurred and to the extent that any other restrictions have been complied with.

Other grants and donations

Other grants and donations are recognised as revenue when:

it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;

the amount of the revenue can be measured reliably; and

to the extent that there has been compliance with any restrictions associated with the grant.

If goods in-kind are received without conditions attached, revenue is recognised immediately. If conditions are attached, a liability is recognised, which is reduced and revenue recognised as the conditions are satisfied.

k. Unauthorised expenditure

Unauthorised expenditure means:

overspending of a vote or a main division within a vote; and

expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with the purpose of the main division.

All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

l. Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

m. Irregular expenditure

Irregular expenditure as defined in section 1 of the MFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including –

(a) this Act; or

(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or

(c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the MFMA requires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial and which was condoned before year end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure register. In such an instance, no further action is also required with the exception of updating the note to the financial statements.


Irregular expenditure that was incurred and identified during the current financial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the financial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register.


25. Risk management

Capital risk management

The entity's objectives when managing capital are to safeguard the entity's ability to continue as a going concern in order to achieve its mandate and to maintain an optimal capital structure to reduce the cost of capital.

Financial risk management

The entity’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the entity’s financial performance. Risk management is carried out by a central treasury department (entity treasury) under policies approved by the City of Johannesburg. The City provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount committed by City of Johannesburg. Due to the dynamic nature of the underlying businesses, entity treasury maintains flexibility in funding.

The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments.

Interest rate risk

As the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are substantially independent of changes in market interest rates.

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entity only deposits cash with major bank with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored.

26. Going concern

The City of Johannesburg conducted an institutional review and as a result, the City has reintegrated JTC's operations back into the City.

The annual financial statements have been prepared on a discontinued basis and significant adjustments have been passed to account for the integration process and transfer of function. The transfer of the JTC functions together with the carrying values of its assets of R4 278 334 and liabilities with a carrying value of R3 375 381 were transferred to the City on 31 May 2013.

27. Events after the reporting date The process to reintegrate JTC's operations back into the City has been finalised at the date of signature of the financial statements.


32. Deviation from supply chain management regulations

Procurement during the year under review amounting to R 681 754.65 as a result of deviations from the Supply Chain management policy. The deviations were documented and approved as per the normal supply chain management regulations.

Lack of required quotations as per the Supply Chain Management Policy and Procedures, transactions amounting to R 318 719.05 relating to Courier IT (courier services), Hamba Nathi (travel bookings) and WSE Stone Consulting (International Marketing Strategy Development for the City Of Johannesburg.

33. Non-compliance with laws and regulations

Included below are material instances of non-compliance with specific requirements in key applicable laws and regulations.

Annual financial statements, performance and annual report

The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 122 of the MFMA. Material misstatements of related party transactions, prepayments, provisions, deviations from supply chain management disclosure, cash flow statement, cash and cash equivalents, depreciation disclosure note, intangible assets, directors’ emoluments, other income, other expenses, contributed capital and trade payables identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

Procurement and contract management

Goods and services of a transaction value above R200 000 were procured without inviting competitive bids as per the requirements of Supply Chain Management regulation (SCM) 19(a) and 36(1).

Bid specifications were not always drafted by bid specification committees which were composed of one or more officials of the municipality as required by SCM regulation 27(3).

Bid adjudication was not always done by committees which were composed in accordance with SCM regulation 29(2)

Quotations were awarded to providers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by SCM regulation 43

Expenditure management

The accounting officer did not take effective steps to prevent irregular, fruitless and wasteful expenditure, as required by section 95(d) of the Municipal Finance Management Act.

Money owing by the municipal entity was not always paid within 30 days of receiving an invoice or statement, as required by section 99(2)(b) of the Municipal Finance Management Act

Audit committee

The audit committee did not advise the council of the municipality on the adequacy, reliability and accuracy of financial reporting and information as required by section 166(2)(a)(iv) of the MFMA. Procurement and contract management.


CHAPTER SIX

AUDITOR-GENERAL AUDIT FINDINGS KEY

Unqualified audit opinion was maintained in the current year.

Key achievement is the in the current financial year under review is the maintenance of an unqualified audit opinion.


Section 1: Auditor-General’s Report for the Current Year

REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE AND THE COUNCIL OF THE CITY OF JOHANNESBURG METROPOLITAN MUNICIPALITY ON THE JOHANNESBURG TOURISM COMPANY NON PROFIT COMPANY

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Johannesburg Tourism Company NPC as set out on pages … to …, which comprise the statement of financial performance, statement of changes in net assets, the cash flow statement, the statement of comparison of budget and actual amounts for the year then ended, the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA) and Companies Act of South Africa, 2008 (Act No. 71 of 2008), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Johannesburg Tourism Company NPC as at 30 June 2013, and its financial performance and cash flows for the year then ended in accordance with SA Standards of GRAP and the requirements of the MFMA and Companies Act of South Africa, 2008 (Act No. 71 of 2008).


Emphasis of matter

7. I draw attention to the matters below. My opinion is not modified in respect of these matters:

Transfer of entities under common control

8. As disclosed in note 26 to the financial statements, the City of Johannesburg undertook an institutional review and the mandate of Johannesburg Tourism Company was taken over by the City of Johannesburg.

Restatement of corresponding figures

9. As disclosed in note 24 to the financial statements, the corresponding figures for 30 June 2012 have been restated as a result of an error discovered during 30 June 2013 in the financial statements of the Johannesburg Tourism Company at, and for the year ended, 30 June 2012.

Irregular expenditure

10. As disclosed in note 28 to the financial statements, the municipal entity incurred irregular expenditure of R5 899 741 as a result of non compliance with SCM regulations.

Additional matters

11. We draw attention to the matters below. Our opinion is not modified in respect of these matters.

Unaudited supplementary schedules

12. The supplementary information set out on pages 13 to 14 does not form part of the financial statements and is presented as additional information. I have not audited this schedule and, accordingly, I do not express an opinion thereon.

Other reports required by the Companies Act

13. As part of my audit of the financial statements for the year ended 30 June 2013, I have read the Directors’ Report, the Audit Committee’s Report and the Company Secretary’s Certificate for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. These reports are the responsibility of the respective preparers. Based on reading these reports I have not identified material inconsistencies between the reports and the audited financial statements in respect of which I have expressed an unqualified opinion. I have not audited the reports and accordingly do not express an opinion on them.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

14. In accordance with the PAA and the General Notice issued in terms thereof, we report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

15. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages … to … of the annual report.

16. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

17. The reliability of the information in respect of the selected objectives is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

18. The material findings are as follows:


Usefulness of information

19. Based on my work described in this report, nothing has come to my attention that causes me to believe that the annual performance report is not useful, in all material respects, in accordance with the predetermined criteria.

Reliability of information

20. Based on my work described in this report, nothing has come to my attention that causes me to believe that the selected objectives set out in the annual performance report is not fairly stated in all material respects, in accordance with the predetermined criteria.

Additional matters

21. I draw attention to the matters below. My conclusion is not modified in respect of these matters:

Achievement of planned targets

22. Of the total number of planned targets, only 14 were achieved during the year under review. This represents 57% of total planned targets that were not achieved during the year under review.

Material adjustments to the annual performance report

23. Material misstatements in the annual performance report were identified during the audit, all of which were corrected by management

Compliance with laws and regulations

24. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual financial statements, performance and annual report

25. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 122 of the MFMA. Material misstatements of related party transactions, prepayments, provisions, deviations from supply chain management disclosure, cash flow statement, cash and cash equivalents, depreciation disclosure note, intangible assets, director’s emoluments, other income, other expenses, contributed capital and trade payables identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

Audit committees

26. The audit committee did not advise the council of the municipality on the adequacy, reliability and accuracy of the annual performance report before submission for audit as required by section 166(2)(a)(iv) of the MFMA, the audit committee did however review the quarterly performance reports.

Procurement and contract management

27. Goods and services of a transaction value above R200 000 were procured without inviting competitive bids as per the requirements of Supply Chain Management regulation (SCM) 19(a) and 36(1).

28. Bid specifications were not always drafted by bid specification committees which were composed of one or more officials of the municipality as required by SCM regulation 27(3).

29. Bid adjudication was not always done by committees which were composed in accordance with SCM regulation 29(2).

30. Quotations were awarded to providers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by SCM regulation 43.

Expenditure management

31. The accounting officer did not take effective steps to prevent irregular and fruitless and wasteful expenditure, as required by section 95(d) of the MFMA.


32. Money owing by the municipal entity was not always paid within 30 days of receiving an invoice or statement, as required by section 99(2)(b) of the MFMA.

Internal control

33. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on the annual performance report and the findings on compliance with laws and regulations included in this report.

Leadership

34. There was inadequate oversight responsibility regarding financial and performance reporting, compliance with laws and regulations and related internal controls.

Financial and performance management

35. Accurate and complete financial statements were not prepared as the financial statements submitted for audit contained material misstatements that were subsequently corrected by management. Compliance with applicable laws and regulations were not monitored and reviewed.

OTHER REPORTS

Investigations

36. A former member of senior management was investigated and the disciplinary charges are being finalised.

Johannesburg

30 November 2013


Note: The Constitution S188 (1) (b) states that the functions of the Auditor-General includes the auditing and reporting on the accounts, financial statements and financial management of all municipalities. MSA section 45 states that the results of performance measurement… must be audited annually by the Auditor-General.

2009/10 2010/11 2011/12 2012/13

Audit Opinion Unqualified Unqualified Unqualified Unqualified

ANALYSIS OF 2012/13 AUDIT FINDINGS

NEW IN 2012/13

REPEAT FINDING

ACTIONS TO RESOLVE

Matters affecting Audit opinion

15 7 Disciplinary actions is being taken against irregular expenditure

Important Matters 13 16 IT Governance issues have been taken over by the City of Johannesburg Municipality and will form part of their normal processes

Administrative Matters 9 4 Money will be recovered from staff incorrectly paid

Section 2: Historical Audit Findings and Remedial Action

The biggest issue relating to previous year audit findings was as a result of irregular expenditure. It should be noted none of this expenditure is fruitless and wasteful. An investigation was instituted prior to the external audit on irregular expenditure. These findings, together with the external audit findings, have resulted in a process of disciplinary action that will be taken.

Section 3: Commitment by the Board of Directors

The directors are required by the Municipal Finance Management Act (Act 56 of 2003), to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of the directors to ensure that the financial statements fairly present the state of affairs of the entity as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the financial statements and were given unrestricted access to all financial records and related data.

The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GAAP) and Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the entity and place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the accounting officer sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the entity is on identifying, assessing, managing and monitoring all known forms of risk across the entity. While operating risk cannot be fully eliminated, the entity endeavours to minimise it by ensuring that


appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.

The sole member, City of Johannesburg Metroplitan Municipality (CJMM), undertook an institutional review. In terms of the institutional review, the functions of Johannesburg Tourism Company were intergrated into the Communications and Tourism Department. During the year under review the assets and liabilities were transferred to CJMM in terms of Grap 105 principles.

Although the accounting officer is primarily responsible for the financial affairs of the entity, she is supported by the entity's external auditors.

The external auditors are responsible for independently reviewing and reporting on the entity's financial statements. The financial statements set out on pages 5 to 35, which have been prepared on the discontinuing concern basis, were approved on 27August 2013 and were signed on its behalf by:

____________________________ ____________________________

Albert Torres Hendrik Wessel Roodt

Chairperson of the Audit Committee Chairperson of the Board


AUDITED STATEMENTS AND RELATED FINANCIAL INFORMATION

We are pleased to present our report for the financial year ended 30 June 2013, as recommended by the King III Report on Corporate Governance and Regulation 27 of the Treasury Regulations. The Audit Committee performs its functions in accordance with section 270A (1) of the Companies Act, 61 of 1973, and has adopted appropriate formal terms of reference as its Audit Committee Charter, regulating its affairs in compliance with this Charter. The Audit Committee has discharged all its responsibilities as contained therein.

The Audit Committee is satisfied with the quality of Quarterly report information prepared and issued by the Accounting Authority during the financial year under review.

The Committee has noted the report of the Auditor General and that the responsible management has taken cognizance of the recommendations as contained in the management letter.

Evaluation of the Financial Statements

In the conduct of its duties, the Audit Committee has, inter alia, reviewed the following:

the effectiveness of the internal control systems;

the risk areas of the entity’s operations covered in the scope of internal and external audits;

the adequacy, reliability and accuracy of financial information provided by management and other users of such information;

accounting and auditing concerns identified as a result of internal and external audits;

the entity’s compliance with legal and regulatory provisions;

the effectiveness of the corporate audit department;

the activities of the audit department, including its annual work programme, co-ordination with external auditors, the reports of significant investigations and the responses of management to specific recommendations and

the independence and objectivity of the external auditors.

Based on the information and explanations given by management and the audit department and discussion with the independent external auditors on the results of their audits, the audit committee is of the opinion that the internal accounting controls are adequate to ensure that the financial records may be relied upon for preparing the financial statements and accountability for assets and liabilities is maintained.

Having considered the matters set out in section 270A(5) of the Companies Act 61 of 1973, as amended by the Company Law Amendment Act, the audit committee is satisfied with the independence and objectivity of the external auditors.

Other than reported in the directors’ report, nothing significant has come to the attention of the audit committee to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.

The audit committee is satisfied that the financial statements are based on appropriate accounting policies, supported by reasonable and prudent judgments and estimates.


The Audit Committee has evaluated the annual report for the year ended 30 June 2010 and considers that it complies, in all material respects, with the requirements of the Companies Act, 61 of 1973, as amended, as well as International Financial Reporting Standards. The Audit Committee has therefore recommended the adoption of this annual report by the Board of Directors at its meeting on 28 November 2013.

Mathews Moavodi

Chairman: Audit Committee

Johannesburg

28 November 2013

Johannesburg

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