Transcript Review 2014/15 - Amazon Web Services

Briefing to the Portfolio Committee on Tourism
SA Tourism
Updated 5 Year Strategic Plan and Annual Performance Plan
(Review 2014 /15)
04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 1
Strategic Plan & Annual Performance Plan – 04 July 2014
Vision and Mission
Mission
Vision
For South Africa (SA) to be the
preferred tourist destination in
the world, in order to maximise
the economic potential of
tourism for our country and its
people.
To develop and implement a world-class tourism
marketing strategy for SA. In pursuance of this, SA
Tourism will:
• Implement domestic, regional and international
marketing strategies informed by research
• Implement a business events strategy
• Implement and maintain a recognisable, credible
and globally benchmarked system of quality
assurance
• Facilitate strategic alignment of Provinces and
industry in support of global marketing of tourism.
• Facilitate the removal of identified obstacles to
tourism growth.
•
Ensure the efficient utilisation of resources to
deliver the tourism strategy
Slide no. 2
Strategic Plan & Annual Performance Plan – 04 July 2014
SA Tourism recently refined its current objectives and strategies for the period until
2014/5 - in line with Government’s Performance Information Management Policy
Possible Tourism sector
outcome which SA
Tourism will need to
deliver against
SA Tourism outcome
Create a thriving tourism sector by making South Africa a
tourism and business events destination of choice
Make the SA brand a Global Player in portfolio markets, hubs and decision
making centres which will grow tourism’s trended revenue to the
economy by 1.5% p.a. (excluding inflation)
Invest only in selected
markets to deliver volume
and value
Strategies to deliver
outcome
Slide no. 3
Convince consumers that
SA can be trusted to
deliver memorable
experiences
Work the distribution channel to
promote SA
Engage Stakeholders to
deliver quality visitor
experience that reaffirm the brand
promise
Energise and empower the organisation
to innovate and achieve excellence
Strategic Plan & Annual Performance Plan – 04 July 2014
SA Tourism’s Mandate set out in the Tourism Act makes it clear that it needs
to make choices that will benefit all South Africans
The mandate to
SA Tourism is ...
… through six
key
objectives
…by acting in a
focused way to
Sustainable GDP
Growth
Sustainable job
creation
Redistribution and
transformation
Increase in tourist
volume
Increase in tourist
spend
Increase length of
stay
Improve geographic
spread
Improve seasonality
patterns
Promote
transformation
Understand the
market
Choose the attractive
segments
Market the
Destination
Facilitate the
removal of identified
obstacles
Facilitate the
product platform
Monitor and learn
from tourist
experience
Slide no. 4
Strategic Plan & Annual Performance Plan – 04 July 2014
Business Focus
LEISURE
TOURISM
“preferred tourism
destination
GRADING/
QUALITY
ASSURANCE
”improve quality visitor
BUSINESS EVENTS
& MEETINGS
“preferred business events
destination
experience”
SUPPORT
Slide no. 5
Strategic Plan & Annual Performance Plan – 04 July 2014
Minister of Tourism
South African Tourism Board
NDT:
NDT DG
Director
General
South African Tourism Board
Chief Executive Officer
Global Manager:
Product
Chief
Financial
Officer
Chief
Operating
Officer
Chief
Marketing
Officer
Chief Quality
Assurance
Officer
Chief Convention
Bureau Officer
Regional Director: Europe
QAO
Global Manager:
Stakeholder/
Slide no.Trade
6
Global
Strategic Plan & Annual Performance Plan – 04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 8
Strategic Plan & Annual Performance Plan – 04 July 2014
Steps of the Portfolio Review
1st filter
199
countries
2nd filter
133
Exclude Africa and
subdivide it into 5
regions
3rd filter
117
Exclude markets
population less than 3
million people OR GDP PPP
of less than $11 000
Exclude SADC (Africa Land
markets) from the
elimination process
(proximity to SA).
Top markets in terms of
outbound volume and
value
42
Salient set
From the remaining
countries. Excludes
countries with less than
150k outbound Travel and
Population of less than 3
Million
40
How attractive are these
markets in the short
term and the long term?
24
The remaining countries
including SADC (Africa
land markets) qualify for
Africa Salient set of
countries
Final portfolio
Core
Tactical
Investment and
Watch-List
markets
*Africa land markets are markets where more than 60% of arrivals to SA arrive by land.
Slide no. 9
Strategic Plan & Annual Performance Plan – 04 July 2014
4th filter
Application of costbenefit evaluation
Key things that have changed in the 5th Portfolio Review
APPROACH:
1.
We treat the African continent differently from the rest of the world
 Africa gets subdivided into 5 different regions / hubs
 Countries with outbound less than 150K per year and a population of 3 Million are filtered
out. The average outbound per annum for African countries is 500K , while population is 7
million. The aim is to include as many countries as we can hence the very low threshold.
 SADC (Africa Land Markets) automatically qualify because of its proximity.
2.
For the rest of the world, we no longer use the $2 000 Gross Domestic Product (GDP) filter.
Instead we use GDP Purchasing Power Parity (PPP) of $11 000 per annum as a filter for
affordability. This is similar to the Big Mac Index.
3.
We plan to use the Hub Strategy approach around the world to increase market penetration. The
Hub approach will also be applied when markets have been filtered through all the other criteria so
that we can combine markets in the portfolio based on proximity, language, trade links – for
instance, the US and Canada; Japan and Korea as well as Netherlands and Belgium – among others.
Slide no. 10
Strategic Plan & Annual Performance Plan – 04 July 2014
5th Portfolio Review Outcome to be Implemented - effective 01/04/2014 – 30/03/2017
AFRICA
CORE MARKETS
Angola
Angola:
6/’14
Mozambique
Nigeria
Nigeria
AMERICAS
ASIA & AUSTRALASIA
EUROPE & THE UK
Brazil
Brazil
– 7/’14
USA
USA
Australia
Australia
China
India
France
France
Germany
Germany
Netherlands
UK
Netherlands
Kenya: 05/’14
China
India
UK
Tanzania
Domestic
INVESTMENT
MARKETS
Botswana, DRC, Ghana,
Lesotho, Uganda,
Zimbabwe
TACTICAL MARKETS
Namibia
UAE
Zambia
WATCH-LIST
MARKETS
STRATEGIC
IMPORTANCE
Canada
Ethiopia
Malawi
Swaziland
Egypt, Israel, Morocco,
Saudi Arabia, Tunisia,
Argentina
Japan
Japan
Italy
Italy
South
Korea
South
Korea
Russia
Singapore
Switzerland
New Zealand
Austria
Belgium
Denmark
Finland
Norway
Spain
Sweden
Turkey
Malaysia
Slide no. 11
Existing
Country Offices
Strategic Plan & Annual Performance Plan – 04 July 2014
Planned
Country Offices
The Hub Strategy for Global Markets to increase market penetration, footprint
and efficient resource utilisation.
Americas
Asia Pacific
Latin Americas
North Americas
Europe
Asia & Australasia
Central Europe
United Kingdom
USA (Office) - Hub
* Brazil (Office): Hub
China - Office ** : Hub
Germany (Office): Hub
United Kingdom
(Office): Hub
Canada
*** Argentina
Hong Kong
**Russia
Ireland
*** Chile
***Macau
Spain
Scotland
Japan
Turkey
Wales
** South Korea
Switzerland
Africa
West Africa
East Africa
Nigeria (Office): Hub
* Kenya (Office) : Hub
Ghana
*** ECOWAS
countries
**Tanzania &
Uganda
Australasia
Australia (Office) : Hub
New Zealand
* Angola (Office) –
Stand Alone
France (Office)
India
France – Stand Alone
India (Office) – Stand Alone
Belgium
**Sweden
Denmark
Italy (Office)
Asia Air Link Hub
DRC: Hub
Benelux &
Scandinavia
Netherlands (Office)
:Hub
Norway
*** Ethiopia
Central Africa
Austria
Finland
Italy – Stand Alone
SADC
Botswana
Zimbabwe
Malawi
Lesotho
Mozambique
Zambia
Namibia
Slide no. 12
Malaysia
Singapore
Notes:
* Planned SA Tourism Offices (2013/2014 to 2014/2015)
** 1 Trade Relations Manager will be appointed – approved by Board (2014/2015)
(Shanghai, South Korea, Russia, Scandinavia as well as Tanzania and Uganda)
*** Future Plans (2015/16 and Beyond)
Strategic Plan & Annual Performance Plan – 04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 13
Strategic Plan & Annual Performance Plan – 04 July 2014
MTEF Allocation to Aggressively Grow Africa
•
Ring fenced budget to increase arrivals and spend from Africa to contribute to GDP and job
creation.
•
R50 million (2012/13) and R84 million for the MTEF period up to 2016/17
•
Setting up five marketing offices in key African markets by 2020
•
Implementation of regional tourism programmes
•
In Africa Air markets, sizable opportunity exists to attract high value business and leisure
travellers.
Slide no. 14
Strategic Plan & Annual Performance Plan – 04 July 2014
Regional Hub Strategy
East Africa Hub
Summary
of
opportunity
Central Africa Hub
West Africa Hub
Kenya is a relatively small Angola, similarly to Kenya, will be a The Nigerian market is
market with only 36k arrivals in hub office – also servicing DRC and large and fast growing.
2012.
Congo-Brazzaville.
Serving Ghana from Nigeria
Serving additional countries, DRC will be serviced using a virtual adds another 25k arrivals
such as Uganda and Tanzania office with only 1 Trade Relations to the Nigerian market.
from Kenya would increase Manager based in DRC but reporting to Arrivals from Ghana are
arrivals to 95k – taking the hub office in Angola.
also growing fast.
advantage of similar consumer
profiles.
This approach is cost effective and Combined arrivals from
most practical given the proximity and both Ghana and Nigeria
Good regional integration and high connectivity.
represent
some
104k
growth is possible.
arrivals.
In 2013 a scoping exercise was We will, continue to monitor Congo- Achieved milestone: The
performed to determine how to Brazzaville and other surrounding Nigerian office is fully
penetrate the market.
Central African states to leverage operational.
opportunities as they arise.
Slide no. 15
Strategic Plan & Annual Performance Plan – 04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 16
Strategic Plan & Annual Performance Plan – 04 July 2014
Domestic Tourism
•
•
•
•
A new Domestic Tourism Campaign, Nothing is more Fun Than a Sho’t Left
was launched in September 2013 to promote the following:
o
Discover own country and its hidden gems
o
The culture of taking short breaks
Total annual spend has increased from R21.8 billion in 2012 to R24.3 billion
in 2013 and average spend from R850 per trip to R960 per trip.
The number of trips undertaken decreased from 25.4 million in 2012 to 25.1
million and the number of nights from 4.8 to 4.4.
Additional budget of R100 million has been allocated to increase domestic
tourism.
•
Engage low cost airlines to improve regional distribution
•
Radio DJ Programmes
•
Strive to influence and promote the culture of domestic tourism
Slide no. 17
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Market Portfolio
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 18
Strategic Plan & Annual Performance Plan – 04 July 2014
Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic Objective
Justification
NTSS Alignment
1
Increase foreign visitor
arrivals to SA
More foreign visitors will yield more tourism spend
resulting to increased GDP contribution
Aligned
2
Increase domestic tourism in
SA
Making SA more attractive to South Africans. This will
increase tourism spend and GDP contribution
Aligned
3
Increase tourism trended
revenue contribution to the
economy (Total Foreign
Direct Spend (TFDS) + Total
Domestic Direct Spend
(TDDS))
Attract tourists that will increase trended revenue
contribution to GDP
Aligned
4
Increase SA brand awareness
Making SA more attractive to visitors and results in
increased spend
Aligned
5
Provide quality assurance for
tourism products
Marketing through word of mouth of the quality
experience offered in SA
Aligned
6
Increase business events
Selling SA as a “Meetings Destination”
Aligned
Slide no. 19
Strategic Plan & Annual Performance Plan – 04 July 2014
Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic
Objective
Key
Perform ance
Indicator
Audited Outcome/
Actual Performance
2011 /
12
Increase
foreign
visitor
arrivals to
SA
Increase
domestic
tourism in
SA
Slide no. 20
Slide no. 20
# of foreign
visitor
arrivals
(annually)
12 255
155
2012/13
13 451 565
Baseline –
2013/14
Performanc
e
2013/14
12 518 310
Tourist
arrival
estimate =
9 616 964
# of buyers
that SAT
will host at
Meetings
Africa and
Indaba
during the
financial
year
N/A
# of
domestic
travellers
13.9m
N/A
Total: 376
Indaba: 207
Meetings
Africa: 169
12.5m
12.0m
Medium Term Targets
2014/15
Quarterly Targets
16 033
947
Q1:
Tourist
arrivals
estimate:
10 000
228
Q2:
3 687 842
Q3:
4 053 864
Q4:
4 386 156
Total:
427
3 906 086
No quarterly targets
(Indaba:
250
Meetings
Africa:
177)
12.9m
Q1: 3.4m
Q2: 2.6m
Q3: 3.4m
Q4: 3.5m
Strategic Plan & Annual Performance Plan – 04 July 2014
2015/16
2016/17
17 041 406
18 049 947
Tourist arrivals
estimate:
10 446 753
Tourist arrivals
estimate:
10 911 069
486 hosted buyers
486 hosted buyers
(Indaba 309
Meetings Africa:
177)
(Indaba 309
Meetings Africa:
177)
13.5m
14.3m
Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic
Objective
Increase
domestic
tourism in
SA
Key
Performanc
e Indicator
# of total
domestic
trips
Audited Outcome/
Actual Performance
Baseline –
2013/14
Performa
nce
Medium Term Targets
2011/12
2012/13
2013/14
2014/15
Quarterly
Targets
2015/16
2016/17
26.3m
25.4m
25.1m
25.9m
Q1: 6.9m
28.4m
31.2m
3.3m
3.5.
Q2: 5.0m
Q3: 6.9m
Q4: 7.1m
# of
holiday
trips
3.95m
2.9m
2.98m
3.07m
Q1: 0.92 1m
Q2: 0.615m
Q3: 0.923m
Q4: 0.614m
Number of
reports seasonality
Increase
tourism
trended
revenue
contributi
on to the
economy
(TFDS+
TDDS)
Amount of
Trended
revenue
R8 600
R12 800
(NITS)
R8 200
(TFDS)
R105.4b
(TFDS
revenue)
R125.0b
(Trended
revenue)
1 Report
N/A
1 Report
1 Report
R128.0b
(Trended
revenue)
Q1: R30.7b
R129.7b
(Trended
revenue)
R133.6b
(Trended
revenue)
Q2: R29.4 b
Q3: R33.3b
Q4: R34.6b
Slide no. 21
Slide no. 21
Strategic Plan & Annual Performance Plan – 04 July 2014
Strategic Outcome Oriented Goals, Goal Statement and Objectives
Strategic
Objective
Key
Performance
Indicator
Increase
SA brand
awareness
Brand
Awareness
Provide
quality
assurance
for tourism
products
# of graded
establishment
Audited Outcome/
Actual Performance
Baseline –
2013/14
Performa
nce
Medium Term Targets
2011/12
2012/13
2013/14
2014/15
77%
81%
79%
80%
4 886
6 022
5 671
7 088
(1 195 New
5 893
renewals)
Quarterly
Targets
N/A
Q1: 1 772
2015/16
80%
2016/17
81%
7 584
8 115
61 500
delegates at
international
conventions
65 000
delegates
at
internation
al
conventions
Q2: 1 772
Q3: 1 772
Q4: 1 772
Increase
business
events
# of delegates
N/A
52 587
delegates
94 893
delegates
58 500
delegates
N/A
Slide no. 22
Strategic Plan & Annual Performance Plan – 04 July 2014
Tourism’s GDP contribution increased from 2.8% (2011) to 3.0% (2012)
Tourism Contribution to GDP, 2008-2012*
3.5%
100.0
90.0
3.0%
2.9%
2.9%
2.8%
3.0%
3.0%
Tourism share of SA GDP
80.0
Tourism direct GDP
60.0
50.0
67.1
69.3
76.6
83.5
93.3
2.5%
2.0%
1.5%
40.0
30.0
1.0%
20.0
0.5%
10.0
Tourism Share of Direct GDP
Total Direct GDP (Billions)
70.0
0.0%
0.0
2008
2009
2010
2011
2012
CAGR (2008-2012)
Total Contribution to GDP
Source: TSA, Statistics SA – Preliminary figures are used for 2011 and 2012
Slide no. 23
Strategic Plan & Annual Performance Plan – 04 July 2014
6.8%
Tourist arrivals to South Africa grew by almost 5% in 2013 in line with
global growth
Year-on-Year Change in Tourist Arrivals to each region
10%
4.7%
5%
% Change
5.4%
6.2%
5.4%
5.0%
3.2%
0%
-0.2%
-5%
South Africa
Africa
Asia and the
Pacific
Europe
Middle East
Americas
World
2012 Tourist
arrivals (Millions)
9.2
52.9
233.5
534.4
51.7
162.7
1,035
2013 Tourist
arrivals (Millions)
9.6
55.8
248.1
563.4
51.6
167.9
1,087
Note: UNWTO estimates incorporate provisional data for some regions
Source: Statssa Tourism & Migration release December 2013, SAT analysis; UNWTO World Tourism Barometer, Volume 12, April 2014 – Statistical Annex
Slide no. 24
Strategic Plan & Annual Performance Plan – 04 July 2014
Foreign arrivals to South Africa for January to December 2013 grew by 10.5%
over 2012 to reach 14.8 million
Europe

North America

1,628,154 arrivals
6.7% up from 2012
467, 956 arrivals
6.1% up from 2012


Middle East


61, 994 arrivals
6.4% up from 2012
Asia


480, 064 arrivals
9.6% up from 2012
Central & South America


Australasia
133, 959 arrivals
6.40% up from 2012

AFRICA
GRAND TOTAL


14, 806, 216 arrivals
10.5% up from 2012


11, 585,206 arrivals
12.4% up from 2012
Indian Ocean Islands

Note : Tourist Arrivals figures shown above for Jan. - Dec 2013
Source: Statssa Tourism & Migration release December 2013, SAT analysis
Strategic Plan & Annual Performance Plan – 04 July 2014
Slide no. 25

162, 356 arrivals
2.3% up from 2012

27, 486 arrivals
13.4% up from 2012
Tourist arrivals to South Africa in 2013 grew by 4.7% over 2012 to reach
9,616,964. All regions showed positive growth in tourist arrivals in this period
Europe

North America

1,494,978 arrivals
7.0% up from 2012
417,582 arrivals
6.1% up from 2012


Middle East


57,382 arrivals
5.9% up from 2012
Asia


435,076 arrivals
9.2% up from 2012
Central & South America


Australasia
129,463 arrivals
8.0% up from 2012

AFRICA


GRAND TOTAL
9,616,964 arrivals
4.7% up from 2012


6,889,389 arrivals
3.8% up from 2012
Indian Ocean Islands

Note : Tourist Arrivals figures shown above for Jan. - Dec 2013
Source: Statssa Tourism & Migration release December 2013, SAT analysis
Slide no. 26

Strategic Plan & Annual Performance Plan – 04 July 2014
148,660 arrivals
4.0% up from 2012

24,394 arrivals
13.3% up from 2012
Europe remains the main source of tourist arrivals to South Africa while Asia
remains buoyant with the highest growth.
Europe

North America



430,910
arrivals
Europe
9.2% up from 2012
“RETAIN & DEFEND”
92,727 arrivals
5.2% up from 2012
North America
“GROW”
Africa Air
“GROW”
Asia & Australasia

Central & South America



108,272 arrivals
Asia
27.1% up from 2012
“GROW”
35,535 arrivals
Brazil
15.2% up from 2012
“GROW”
AFRICA


Africaarrivals
Land
1,736,166
7.6% up from 2012
“GROW”
Slide no. 27
Strategic Plan & Annual Performance Plan – 04 July 2014
Australasia
Australia
“RETAIN &
DEFEND
All markets grew faster than global growth rate between 2011 and 2013
Tourist Arrivals to South Africa and the World, 2011 to 2013
CAGR 11 to 13
Tourist Arrivals (Millions)
100
0
% change y-o-y
4.5%
7.4%
5.7%
11%
13.1%
14.2% 12%
Africa Air
Markets
8.2%
3.4%
Africa Land
Markets
15%
6.8%
Long-haul
Markets
10.2%
All Markets
4.7%
4.0%
5%
Global Arrivals
Slide no. 28
Note: Africa Air Markets are markets where at least 60% arrives to SA use air transport; Africa Land Markets are markets where at least 60% of arrivals to SA use road transport. Long-haul markets
include all countries outside of Africa
Source: Statssa Tourism & Migration release December 2013, SAT analysis; UNWTO World Tourism Barometer, Volume 12, April 2014 – Statistical Annex
Number of Graded Establishments as at end March 2014
Non-Hotel
Accommodation
EC
FS
GP
KZN
LP
MP
NW
NC
WC
Grand
Total
Backpacker &
Hostelling
12
2
9
9
2
2
1
1
38
76
Bed & Breakfast
182
14
177
232
22
33
18
34
310
1 022
Caravan & Camping
16
7
1
11
14
10
10
4
24
97
Country House
32
7
29
15
9
10
4
2
69
177
Guest House
233
54
431
146
54
112
71
71
587
1 759
Lodge
49
9
43
58
83
55
13
34
32
376
Self Catering
112
33
80
181
79
63
27
28
735
1 338
Non-Hotel
Accommodation Total
636
126
770
652
263
285
144
174
1 795
4 845
Hotel Total
54
27
180
108
28
34
21
24
187
663
Accommodation
Grand Total
690
153
950
760
291
319
165
198
1 982
5 508
MESE Total (Business
Tourism)
7
11
72
4
15
18
5
13
18
163
Grand Total Graded
Properties
697
164
1 022
764
306
337
170
211
2 000
5 671
Slide no. 29
Number of Graded Rooms as at end March 2014
Non-Hotel
Accommodation
EC
FS
GP
KZN
LP
MP
NW
NC
WC
Grand
Total
Backpacker & Hostelling
556
132
798
723
87
49
200
32
1 278
3 855
1 575
105
1 117
1 516
258
270
119
340
1 624
6 924
Caravan & Camping
655
406
50
1 025
1 368
1 112
217
660
1 534
7 027
Country House
321
81
345
170
153
103
29
25
771
1 998
2 536
619
4 395
1 540
785
1 327
667
907
4 481
17 257
Lodge
497
263
1 248
986
1 587
1 129
156
804
445
7 115
Self Catering
985
356
792
1 563
1 699
1 452
179
863
4 083
11 972
Non-Hotel
Accommodation Total
7 125
1 962
8 745
7 523
5 937
5 442
1 567
3 631
14 216
56 148
Hotel Total
3 780
1 697
20 242
8 200
1 597
2 268
957
2 827
14 460
56 028
Accommodation Grand
Total
10 905
3 659
28 987
15 723
7 534
7 710
2 524
6 458
28 676
112 176
MESE Total (Business
Tourism)
38
30
531
26
63
67
19
48
76
898
Grand Total Graded
Properties
10 943
3 689
29 518
15 749
7 597
7 777
2 543
6 506
28 752
113 074
Bed & Breakfast
Guest House
Slide no. 30
Strategic Plan & Annual Performance Plan – 04 July 2014
SA National Convention Bureau Update and Performance (2013-2014)
01 APRIL 2012: Establishment of SANCB
YEAR 1 OBJECTIVES: Fully operational business unit
SANCB FOCUS: Positioning and selling South Africa as a preferred
business events destination and growing the industry’s capacity
and skills.
STRATEGY: Approval of the SANCB’s 5 year strategy
COORDINATING FORUM: Guidelines for coordination of SANCB and
all Provincial and City Convention Bureaus activities.
ICCA GLOBAL RANKING 2013: SA ranked 34th
internationally, 1st in Africa, 11th long haul, 27th based on
the number of participants
MEETINGS AFRICA: True Pan African Show celebrating 10 years in
2015 and boasting 13 African countries represented, 262 exhibitors,
170 Int, 37 association, 500 corporate buyers, 163 media
SUBVENTION: Incentive programme aimed at attracting international business events to South Africa. Subvention guidelines
approved by SATB.
TOTAL BIDS
TOTAL NUMBER OF DAYS
57 2013-2014 FINANCIAL YEAR
BIDS SUBMITTED
180
ESTIMATED DELEGATE
NUMBERS
ESTIMATED ECONOMIC IMPACT
76 843
R948 186 400
Note: R5.1 million was spent on 57 Bids = ROI: R948 million
BIDS SECURED FOR SA: 2014 - 2018
TOTAL BIDS SECURED
TOTAL NUMBER OF DAYS
ESTIMATED DELEGATE
NUMBERS
ESTIMATED ECONOMIC IMPACT
150
689
243 468
R3 222 870 000.00
Slide no. 31
Slide no. 31
Strategic Plan & Annual Performance Plan – 04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 32
Strategic Plan & Annual Performance Plan – 04 July 2014
Revenue and Expenditure Estimates
Revenue
Rand Thousand
2010/11 2011/12 2012/13 2013/14 2013/14
2014/15
ENE
Estimate
Adjustment
Approved
2015/16
2016/17
Audited
Audited
Audited
PreAudited
Budget
Budget
Budget
Budget
Budget
Estimate*
631 685
668 613
754 953
846 333
829 973
36 360
866 333
876 309
974 012
1 024 847
1
Government
grant
2
TOMSA levies 104 973
98 169
111 970
131 289
87 472
87 472
82 000
86 428
91 009
3
Indaba &
Meetings
Africa
38 803
37 868
50 013
59 438
42 463
42 463
48 694
51 323
54 044
4
Grading fees
(note 1)
6 376
5 284
3 252
1 520
14 236
14 236
14 668
15 460
16 279
5
Sundry
revenue
52 567
19 045
50 318
57 610
18 168
18 168
20 567
36 531
38 466
834 404
828 979
970 506
1.096 m
992 312
1.028 m
1.043 m
1.164 m
1.224 m
Total
36 360
Note 1: Only the net grading revenue after the deduction of assessor fees were disclosed in the audited Annual Financial
Statements for 2010/11, 2011/12 and 2012/13 respectively. Net grading fees for 2013/14 was R 1 520 250 after deducting
assessor fees of R 10 393 618.
Slide no. 33
Slide no. 33
Strategic Plan & Annual Performance Plan – 04 July 2014
Revenue and Expenditure Estimates per KPI
Name of the Objective 2010/11
in Rand
2011/12
2012/13
2013/14
ENE Estimate
Adjustment
Approved
Budget
Budget
2014/15
2015/16
2016/17
Audited
Audited
Audited
Budget
Major Objectives
856 089
863 295
979 646
992 312
-
992 312
1 042 238
1 163 755
1 224 645
Administration
88 292
143 054
105 465
86 663
10 000
96 663
111 160
117 163
123 372
227 535
223 734
268 375
291 519
-
291 519
290 462
291 509
310 334
39 694
23 452
45 113
35 038
26 360
61 398
43 672
143 800
144 000
227 535
223 734
268 375
291 519
291 519
290 462
291 509
310 334
238 465
224 258
245 850
206 828
206 828
220 292
232 187
244 493
34 568
25 061
3 252
37 114
37 114
40 377
39 300
41 265
43 216
43 631
43 631
45 813
48 287
50 846
979 646
992 312
1 028 672
1 042 238
1 163 755
1 224 645
Increase annual
foreign visitor
arrivals to South
Africa
Increase the
number of
2
Domestic
Travellers
Increase tourism
trended revenue
3
contribution to
the economy
Marketing South
Africa to become
4
the preferred
Tourism Brand*
To provide
quality assurance
5
by having graded
accommodation
establishments
To increase the
number of
international
6
Business Events
delegates in
South Africa
Total
Slide
no. 34
1
Slide no. 34
856 089
863 293
36 360
Strategic Plan & Annual Performance Plan – 04 July 2014
SA Tourism Budget (Breakdown) by Country
Country office
1. USA
2. UK
3. Germany
4. France
5. Netherlands
6. Italy
7. India
8. China
9. Japan
10. Australia
11. Angola
12. Nigeria
13. Brazil (Am)
14. Kenya
Currency
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
ZAR
Approved 2016/17 total
Approved 2015/16 total
Approved 2014/15 total
Grand 2013/14 total
overheads and
overheads and
overheads and
overheads and
marketing
marketing
marketing
marketing
budget
budget
budget in ZAR
budget in ZAR
74,420,012
56,650,836
58,619,719
35,867,812
27,495,314
14,756,427
33,049,847
28,425,373
12,639,571
32,683,923
14,251,649
25,035,247
21,377,815
16,922,417
70,207,559
53,444,185
55,301,622
35,867,812
27,495,314
14,756,427
31,179,101
26,816,390
12,639,571
32,683,923
14,251,649
25,035,247
21,377,815
16,922,417
Slide no. 35
Strategic Plan & Annual Performance Plan – 04 July 2014
68,589,507
52,212,474
54,027,103
35,867,812
27,495,314
14,756,427
30,460,527
26,198,361
12,639,571
32,683,923
14,251,649
25,035,247
21,377,815
16,922,417
65,323,340
49,726,166
51,454,384
35,867,812
27,495,314
14,756,427
27,691,388
23,816,692
12,639,571
32,683,923
14,251,649
25,035,247
21,377,815
16,922,417
Other Resource Considerations
•
•
•
Current staff complement of 206 is not expected to change in the 2014/15 financial
year.
Estimated Capital Expenditure (CAPEX) of R9.82m (2014/15) in respect of Head
Quarters (HQ) office extension for Phase 1 and 2 respectively.
Estimated R8.01m (2014/15) for software, hardware, vehicles and lease
improvements.
Slide no. 36
Strategic Plan & Annual Performance Plan – 04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 37
Strategic Plan & Annual Performance Plan – 04 July 2014
Concluding Remarks
•
Fragile economic recovery and expected economic recession
•
Promising outbound tourism growth but short –haul travel
•
Shrinking disposable income due to austerity measures
•
Exchange currency weakness
•
Growing middle class in Africa
•
Unemployment dampening domestic tourism
Slide no. 38
Strategic Plan & Annual Performance Plan – 04 July 2014
Contents
•
Vision, Mission and Mandate and Governance
•
Strategic Approach and Performance
•
Africa Growth Strategy
•
Domestic Tourism Strategy
•
Strategic Objective Annual Targets, Performance
•
Breakdown of Tourism Budget
•
Concluding Remarks
•
Global Audio Visual – “Reconsider South Africa”
Slide no. 39
Strategic Plan & Annual Performance Plan – 04 July 2014
Reconsider South Africa (New South African Tourism brand video)
Slide no. 40
Strategic Plan & Annual Performance Plan – 04 July 2014
Thank You
Slide no. 41
Strategic Plan & Annual Performance Plan – 04 July 2014