tourism in africa – challenges & opportunities presentation to the international and national...
TRANSCRIPT
Tourism in Africa – Challenges & Opportunities
Presentation to the International and National
Tourism and Hospitality Colloquium 16th October 2007
David FrostWTTC Advisor - Africa
Current State of Tourism in Africa
Tourism, with its low barriers to entry and ability to create jobs quickly and in rural areas is often touted as a panacea sector. Intuitively tourism could and should be seized on by governments in Africa as priority sector that can deliver real returns. This is especially true given the natural resource endowments many African countries posses. Indeed, when one examines the overall economic growth strategies of many African countries, tourism is right up there, identified as a priority sector.
Why then does Africa continue to attract such a low proportion of international tourism. The answer lies squarely with the lack of real investment by African governments in developing and marketing their countries as tourism destinations. Moreover, where best practice has been established and realised, this is not widely communicated and learned from.
Is it then possible, against this backdrop, to develop workable growth strategies that will increase the competitiveness of various African countries and drive additional tourism receipts? Clearly South Africa, Egypt and to a lesser degree Kenya, stand out as examples where significant investments in destination positioning have occurred. There have, however, been some questions raised recently whether, given the massive budget of South African Tourism, the performance in key international markets, especially compared to other more paltry funded destinations, is adequate.
Without seeking to engage in a critique of SA Tourism and its current strategies, the presentation will focus on a smaller African country, with a budget that is only 5% of South Africa’s – namely Namibia. By focusing and implementing a well thought through growth strategy, the presentation will show that smaller African countries can indeed take quantum leaps in increasing tourism receipts. The presentation will unpack some of the tactical as well as strategic initiatives that have resulted in a well above average performance.
In conclusion, based on the Namibian experience, suggestions for positioning tourism to access a portion of the vast developmental largesse available to Africa will be put forward.
World 735 Europe 377.6
Africa in Perspective
Source: UNWTO
International Tourism Receipts, US$ billion 2006
Americas 153.4
Asia & Pacific 153.4
Middle East 26.8
Africa 24.2Northern
Africa 8.5Subsaharan Africa 15.7
3.2 %
World 842Europe 456.9
Africa in Perspective
Source: UNWTO
International Tourist Arrivals (million) 2006
Americas 136
Asia & Pacific 167.4
Middle East 40.7
Africa 40.9Northern Africa 14.9
Subsaharan Africa 26
4.9 %
Africa in Perspective
Source: UNWTO
800670
290
690560 500
1950
870 950850
530 530 520380 450
0
500
1000
1500
2000
2500
North
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urop
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urope
South
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ed. E
urop
e
North
Eas
t Asi
a
South
Eas
t Asi
a
Ocean
ia
South
Asi
a
North
Am
eric
a
Carrib
ean
Centra
l Am
eric
a
South
Am
eric
a
Mid
dle
East
North
ern A
frica
Subsa
haran
Afri
ca
International Tourism Receipts per arrival (US$) 2006
Africa in Perspective
Source: UNWTO
4.3
7.8
2.1
67.4
11.2
02468
1012
Europe
Asia
& Pac
ific
Amer
icas
Mid
dle E
ast
Norther
n Afri
ca
Subsahar
an A
frica
International Tourist Arrivals 2005 – 2006 % change
Current State of Tourism in Africa
• Government policy
• Tourism promotion agency budgets
Selected National Tourism Board Budgets 2005
R40mBotswana
R7mMozambique
R7mZambia
R25mNamibia
R553mSouth Africa
R340mTunisia
R145mGuatemala
R190mIndia
R121mPeru
R364mNew Zealand
R462mCanada
R893mAustralia
R19mTanzania
Current State of Tourism in Africa
• Government policy• Tourism promotion agency budgets• Lots of activity – but no coherent growth
plans• No best practice learning• Boutique operators• Air access• Infrastructure• No co-ordination (RESTOSA ??)
Opportunities
• Commodities - Tourism • Access to markets key
• Can turnaround – Eg. Namibia– Growth strategy
Total International Leisure
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2001
2002
2003
Key SegmentsKey Segments
Leisure
142 755142 755
VFR / Business
22 58122 581
Namibia – Performance 2003
Land Arrivals173 141173 141
Air Arrivals
48 86848 868
Leisure
103 482103 482
VFR / Business118 527118 527
South Africa222 009222 009
Land Arrivals
216 574216 574
Air Arrivals
6 1786 178
Angola
222 752222 752
Rest of Africa81 12481 124
Africa525 885525 885525 885525 885
Germany
58 03658 036
Other Europe83 79883 798
Other Countries
27 50227 502
Overseas165 336165 336
Total Tourist Arrivals695 221
International Arrivals – Market Share 2006
Germany
UK
ItalyFrance
Scandinavia
Austria
Netherlands
Switzerland
Spain
Portugal
Belgium
Other Europe
Australia
USA
Other Countries
33.3%
12.1%4.6%
5.9%3.6%
2.6%
6.0%
4.4%
2.2%
1.8%
3.3%
2.3%
8.0%
8.2%
1.9%
The Marketing Strategy
• Tactical
• Strategic
• Organisational / Institutional
Target Markets
Primary Markets•German Speaking Europe•UK & Ireland•South Africa•Angola
Primary Markets•German Speaking Europe•UK & Ireland•South Africa•Angola
Secondary Markets•France
•Benelux•USA•Italy
Secondary Markets•France
•Benelux•USA•Italy
• Public Relations• Media
•Market Mapping•Key Account
management•Co-operative
marketing
The Marketing Strategy
Increased ArrivalsIncreased ArrivalsTr
ade
Gro
wth
Co
nsu
mer D
eman
d
Co-op Marketing – Delivery
• 2004 – 2006 spent NAD 9,3 million• Calculated in-country injection – NAD
431 million • Extra 14,000 tourists
Marketing Strategy – Strategic
Branding
The Namibia Brand
“It’s like a different planet here on earth”
“Namibia demands a lot, but gives you a lot in return”“I like the idea of going somewhere before the rest of the world has discovered it”
The Namibia Brand
“It’s as if God has finished and you’re the first person there”
“It’s like where the world ends”“The animals came right up to me and surrounded me”
The Namibia Brand
“The quiet that surrounds you lets you look inside yourself somehow”
“It’s all about the vastness and what it does to you as a person”“When you look at the Namibian landscape, you can see the hand of God.”
The Namibia Brand
“The openness, silence, vastness, distances, stars – it all makes you feel fulfilled.”
“Offers real tranquillity, here you can truly get away from people”
“There are still places in Namibia that you feel are yet to be discovered”
“Made me feel small, insignificant – all the worries at home paled into nothing”
The Marketing Strategy
Key Strategic Elements
Branding Product Audit Measurement
Research Transformation
Implementation
• Good representation
• Bolstered good offices
• Shut down inefficient offices
• Great PR
0
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
International Arrivals – Market Share 2006
2001
20052006
International Arrivals – Market Share 2006
3.6
3.9
4.2
4.9
11.8
5.9
7.3
14.9
5.6
9.1
7.2
0 5 10 15 20
South Africa % Change Namibia % Change
11.4
17.9
9.9
20.5
15.5
6.7
5.4
27.9
14.1
36.3
16.2
0 10 20 30 40
Germany
UK
Italy
France
Scandinavia
Switzerland
Netherlands
Spain
Total Europe
USA
Total non-Africa
Opportunities
• Commodities - Tourism • Access to markets key
• Can turnaround – Eg. Namibia– Growth strategy
• MCC – Tourism request US$95 m
• US$14 m - marketing
Way Forward
• Engage both governments & private sector within Africa
• Work towards tourism’s role in development agenda
• SAT – Botswana Sept 2007 – www.wttc.org• Share best practice• Get going with “how”• But – this has to come from Africans• Global Travel & Tourism Summit Dubai
21st – 23rd April 2008• 2009 – South Africa ??