Western Cape Regional Tourism Growth Strategies David Frost Chief Executive Officer – SATSA 29 th October 2013

Background Cape Town discovered by the world But – lot of awareness slightly less sales

Growth Rates – Selected Source Markets

South Africa – Non-African Arrivals Seasonality 60,000 80, , , , , , , , ,000 JanFebMarAprMayJunJulAugSepOctNovDec

Background Assertion – not much done practically over last 10 years to drive growth into the province Clear from interacting with SATSA members and product throughout the province Idea – come up with practical regional growth strategies that could be funded by the province Aim – to drive incremental “sales” – “bums in beds” Three year plans Winde – buy in Strong practical and backed by vibrant public- private sector partnership (WESGRO / SATSA)

Today Share with you some examples of what this could look like – Namibia – TKZN – Eastern Cape – Grant Thornton – SA Tourism – Domestic Campaign

Today Then up to you to come up with the three pronged strategy that will drive growth to your region in next three years Taskforce (WESGRO, SATSA, GT) will come and meet with you in your region – half day workshop and knock the strategy into shape GT – transform into a business plan format – modular funding proposal – to province for funding Aim – not to get into substance – but agree a process

Long Haul Visitors to EC % 3.9% -38.7% 21,0% 0 100, , , , , ,6%

Long Haul Visitors to KZN % (-9.0)% (-2.3)% (-9.7)% 0.1% 0 100, , , , , , , (-14.6)%

Long Haul Visitors to KZN %

Regional Review – South Africa Business trips (million) 2,51,651,521,49 Business spend (R billion) 2,83,13,82,95 Holiday trips (millions) 5,755,263,643,86 Holiday spend (R Billion) 7,410,14,936,5 Total Spend (R billion) 10,213,28,79,5

Regional Review – Namibia Point of Departure Relatively new tourism board - NTB Arrivals figures flat Disjuncture private sector and NTB No clear strategy going forward Isolated from tourism developments elsewhere in region

Outline Budget – E 30 million Vision Global picture Regional trends Namibia’s performance Key source markets Conceptual tools The Marketing Strategy – Tactical – Strategic – Organisational / Institutional Implementation Results – does this work?

Key Segments Leisure VFR / Business Namibia – Performance 2003 Land Arrivals Air Arrivals Leisure VFR / Business South Africa Land Arrivals Air Arrivals Angola Rest of Africa Africa Germany Other Europe Other Countries Overseas Total Tourist Arrivals

Total International Leisure 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 JanFebMarAprMayJunJulAugSepOctNovDec

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

The Marketing Strategy Tactical Strategic Organisational / Institutional

Public Relations Media Market Mapping Key Account management Co-operative marketing The Marketing Strategy Increased Arrivals Trade Growth Consumer Demand

Public Relations Media Key Account management Market Mapping Co-operative marketing The Marketing Strategy Increased Jobs Trade Growth Consumer Demand

Marketing & Sales Tools 2.Joint Marketing Agreements or Co-op Marketing The concept of co-operative marketing is predicated on identifying opportunities in a chosen market and/or market segment and selectively engaging with an appropriate organisation or business entity to jointly invest in achieving mutually beneficial targeted outcomes

Marketing & Sales Tools 2.Joint Marketing Agreements or Co-op Marketing – International best practice (Eg. Canada, Australia, New Zealand, South Africa, Namibia) – Solid return on investment – Ability to influence ‒ Spread ‒ Timing ‒ Product Extends the current budget

Marketing & Sales Tools 2.Joint Marketing Agreements or Co-op Marketing Hypothetical Example - “Acme Tours” – Current business – 50 pax per annum – Proposed STA contribution – R 20,000 – Acme contribution – R 20,000 – Campaign  direct sell database  Nov 2013 – Mar 2014 – Result - extra 50 pax May – Aug Ave. length of stay – 4 days - Ave. spend in province – R 1,400 per day 50 x 4 x R 1,400 = R 280,000 R 280,000 ÷ R 20,000 = 14 ROI : R 1  R 14

0 5,000 10,000 15,000 20,000 25,000 JanFebMarAprMayJunJulAugSepOctNovDec International Arrivals – Seasonality

Top Six International Markets

Tourist Arrivals from UK

Tourist Arrivals from Germany

Tourist Arrivals from USA

Tourist Arrivals from France