Presentation by: Thulani Nzima CEO: South African Tourism Portfolio Committee 29 October 2013 South African Tourism Bi-Annual Report April 2013 – September 2013 Presentation to the Portfolio Committee 29 October 2013

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 2 Global tourism arrivals topped a record 1 billion tourists in Increasing demand for shorter trips instead of long haul travel. Average length of stay reduced across the board Spend increased across the board except Africa land markets On-going concerns regarding the future of the Euro-Zone and unstable economies. European countries continually seek austerity measures to boost their economies. Continuing decline in disposable income The US economy is showing recovery signs and travel slowly rebounding Small agility better than big, cumbersome entities Direct tourism contribution to the country’s GDP grew by 5% to R84.3 billion in Tourism directly or indirectly sustained 9% of employment Background

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  HUB STRATEGY  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  HUB STRATEGY  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 4 Overall Performance – Quarter 1 (April – September 2013) OBJECTIVEANNUAL TARGET ACTUAL (YTD) COMMENT # of annual foreign arrivals in SA Q Q Air: Land: Q1 target of was achieved & figures for Q2 are awaited. # of domestic travellers per year Q1 – Q million 36.6% achieved Trended Revenue (R ) Q1 – R27,7 billion Q2 – R26,5 billion R115.4 billionR26.1 billion The Q1 target was slightly missed & Q2 figures are awaited. Average brand awareness79% Achieved & results due in November. Total number of graded properties Q1 – Q2 – Overachieved by 36% - YTD was 3 394

Slide no. 5 Overall Performance – Quarter 1 (April – September 2013) Compliance with Policies and procedures Unqualified annual external audit report 89% YTD spend of expense budget & 62% YTD spend of the operating budget. Number of delegates56 000No results30 bids were supported in 2013 at the estimated economic impact is R622.3 million and estimated jobs. We are confident that that we will meet the delegates. OBJECTIVEANNUAL TARGETACTUAL COMMENT

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 7 Tourist arrivals to South Africa grew by 8.6% in Jan to March 2013 compared to the global growth of 7.0% for the same period in Note: UNWTO estimates incorporate provisional data for some regions Source: Statssa Tourism & Migration release March 2013, SAT analysis; UNWTO World Tourism Barometer June 2013 Year-on-Year Change in Tourist Arrivals to each region % Change 2012 Tourist arrivals (Millions) Tourist arrivals (Millions)

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 9 AFRICA 1,736,166 arrivals 7.6% up from 2012 Central & South America 35,535 arrivals 15.2% up from 2012 North America 92,727 arrivals 5.2% up from 2012 Europe 430,910 arrivals 9.2% up from 2012 Asia 108,272 arrivals 27.1% up from 2012 Australasia 30,816 arrivals 3.4% up from 2012 Middle East 16,194 arrivals 11.4% up from 2012 Indian Ocean Islands 5,704 arrivals 10.3% up from 2012 Note : Tourist Arrivals figures shown above for Jan. - Mar Source: Table A Tourist Arrivals Jan. - Mar ,461,999 arrivals 8.6% up from 2012 GRAND TOTAL Tourist arrivals to South Africa for January to March 2013 grew by 8.6% over 2012 to reach 2,461,999. All regions showed positive growth, Asia showed highest growth of 27.1% in tourist arrivals. # 1 Asia & Australia # 4 Americas # 2 Africa Air # 3 Europe # 5 Africa Land

Slide no. 10

Slide no. 11 Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013 Total foreign direct spend generated from tourist arrivals decreased by -5.4% between Q and Q Revenue (R - Billion) 2011R9,000R8,200R13,600R9,900R13,400R10, R9,200R8,400R13,300R11,600R12,300R10, R8,000R6,300R9,200R10,500R13,900R12,400 Source: SAT Departure Surveys Average spend per tourist in SA Africa - land and Africa - air were the only regions that posted a decrease in revenue from Q to Q1 2013

Slide no. 12 Asia remains buoyant and Europe SA’s main source of tourist arrivals The source of this tourist performance of 8.6% came from the following markets:. Asia remains buoyant with the highest growth, recording 27.1% increase in foreign tourist arrivals to reach tourists. This growth was led by China, including Hong-Kong which grew by 37.4%, reaching a total of tourists in March 2013 relative to in the same period in Growth in China was also influenced by the following factors, among others; South African Airways’ direct flight to Beijing since January Two new visa application centres which opened in Beijing and Shanghai in 2011 – making travelling to South Africa more appealing for Chinese tourists. Europe remains the main source of foreign tourist arrivals to South Africa, with tourist arrivals - a 9.3% growth from 2012 figures. This growth is led by the UK’s tourist arrival figures of ( 2.7% growth from 2012). Germany grew 17.6% France grew 7.3% the Netherlands down with -2.9% and Italy grew 17.1% reaching tourist arrivals. The US leads the charts of North America performance, growing at 5.8% to reach tourists in March 2013.

Slide no. 13 Regional Africa’s Growing supported by the Africa Growth Plan Central and South America recorded a growth of 15.2%, attracting foreign tourist arrivals to South Africa, led by Brazil. The Middle East Markets brought in foreign tourists in 2013, up by 11.4 % from Regional Africa reported 1.73 million tourist at 7.2% growth.

Slide no. 14 © South African Tourism 2012 Average Number of Provinces Visited by All Tourists, Q vs. Q There has been a decrease in the number of provinces visited by all tourists Source: SAT Departure Surveys

Slide no. 15 © South African Tourism 2012 Provincial Distribution Q vs. Q Gauteng and Western Cape are by Far the Most Visited Provinces. Note: Unpaid accommodation refers to staying with friends or family. “Other” accommodation refers to staying at schools, churches, universities, etc. Source: SAT Departure Surveys

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 17 AFRICAAMERICAS & the UKASIA & AUSTRALASIAEUROPE CORE MARKETSAngola Botswana Kenya Nigeria South Africa* USAAustralia India France Germany Netherlands UK* INVESTMENT MARKETS DRC Mozambique Brazil Canada China (including Hong Kong) Japan Belgium Italy Sweden TACTICAL MARKETS Lesotho Swaziland New ZealandIreland WATCH-LIST MARKETS Malawi Namibia Zambia Zimbabwe ArgentinaRepublic of KoreaAustria Denmark Portugal Spain Switzerland STRATEGIC IMPORTANCE Bahrain, Oman, Qatar, Saudi Arabia STRATEGIC AIR LINKS/HUBS Egypt, Ethiopia, Ghana, Mauritius, Senegal, Tanzania, UAE Malaysia Singapore Country Manager Regional Director Stakeholder Manager Global Channel Manager 2011 – 2013/4 Markets Driving Tourist Arrival Growth in Q1 and Beyond – 4 th Portfolio 01/04/2011 to 30/03/2014

Slide no. 18 Markets that will drive Future Tourist Arrival Growth - 01/04/2014 to 30/03/2017 AFRICAAMERICASASIA & AUSTRALASIAEUROPE & THE UK CORE MARKETSAngola Domestic Kenya Mozambique Nigeria Tanzania Brazil USA Australia China India France Germany Netherlands UK INVESTMENT MARKETS Botswana DRC Ghana Lesotho Uganda Zimbabwe CanadaJapan South Korea Italy Russia TACTICAL MARKETSNamibia UAE Zambia SingaporeSwitzerland WATCH-LIST MARKETS Ethiopia Malawi Swaziland ArgentinaNew ZealandAustria Belgium Denmark Finland Norway Spain Sweden Turkey STRATEGIC IMPORTANCE Egypt, Israel, Morocco, Saudi Arabia, Tunisia, Malaysia Country Manager Regional Director Stakeholder Manager Responsibility TRM: Global

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE

Slide no. 20 USA (Office) - Hub Canada India (Office) – Stand Alone NORTH AMERICAS ASIA & AUSTRALASIA EUROPE Germany (Office): Hub Russia ** * Brazil (Office): Hub *** Argentina *** Chile LATIN AMERICAS CENTRAL Europe INDIA AUSTRALASIA Australia (Office) : Hub New Zealand AMERICAS Norway Sweden (**) Denmark Finland United Kingdom (Office): Hub Ireland Scotland Wales UNITED KINGDOM BENELUX & SCANDINAVIA Netherlands (Office) :Hub Belgium China - Office ** : Hub Hong Kong Macau *** Japan South Korea ** ASIA PACIFIC ASIA Air LINK HUB The Hub Strategy for Global Markets to increase market penetration, footprint and efficient resource utilisation. Austria France – Stand Alone FRANCE (OFFICE) Switzerland Spain Turkey Malaysia Singapore * Kenya (Office) : Hub Tanzania & Uganda ** *** Ethiopia EAST AFRICA AFRICA * Nigeria (Office): Hub Ghana *** ECOWAS countries WEST AFRICA * Angola (Office) – Stand Alone DRC: Hub CENTRAL AFRICA Italy – Stand Alone ITALY (OFFICE) Botswana Malawi SADC Zimbabwe Lesotho Mozambique Zambia Namibia Notes: * Planned SA Tourism Offices (2013/2014) ** 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)

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

22 © South African Tourism 2011 Domestic Performance Key MetricsQ2 2011Q2 2012Q Travel IncidenceMonthly6.6% 5.3% Number of Trips Quarter6.2 Million7.0 million5.5 million Travellers3.5 million3.0 million2.9 million Avg Trips per Traveller By PurposeVFR: 72%, Holiday: 16%,VFR: 71%, Holiday: 14%,VFR: 74%, Holiday: 9%, By ProvinceKwaZulu Natal: 30%Limpopo: 22%KwaZulu Natal: 31% (Purpose and Province with sample size less that twenty (20) not included) Gauteng: 18%Gauteng: 19%Limpopo: 18% Eastern Cape: 11%KwaZulu Natal: 18%Gauteng: 17% Western Cape: 8%Western Cape: 13%Western Cape: 8% Limpopo: 7%Eastern Cape: 8% Spend Total Annual SpendR4.6 BillionR5.0 BillionR5.2 Billion By Purpose VFR: 57%; Holiday: 25%VFR: 49%, Holiday: 25%VFR: 55%, Holiday: 19% (Purpose with sample size less that twenty (20) not included) Average Spend per Trip / per DayR640 / Trip; R160 / DayR760 / Trip; R200 / DayR930 / Trip; R230 / Day Trip Length Total Annual Bed Nights24.9 Million27.5 million23.0 million Average Nights per Trip4.0 Nights3.9 Nights4.0 Nights No Trips TakenTop 5 Reasons for not taking a trip Cannot Afford Travel: 32% Cannot Afford Travel: 38% No Reason To Take a Trip: 19%No Reason To Take a Trip: 17%No Reason To Take a Trip: 20% Time Constraints: 16%Unemployed / No Income: 15%Time Constraints: 18% Unemployed / No Income: 15%Time Constraints: 14%Unemployed / No Income: 12% Dislike Travelling: 11%Dislike Travelling: 8%

Slide no. 23 Total spend has increased by 4% from R5.0 billion in Q2 of 2012 to R5.2 billion in Q2 in Average spend per trip has also increased from R760 in Q2 of 2012 to R930 in Q2 of Average length of stay has increased from 3.9 nights in 2012 to 4.0 nights in The 21% drop in domestic trips from 7.0 million in Q2 of 2012 to 5.5 million in Q2 of 2013 emanates from the following: Growing : Visiting Friends and Relatives (VFR) from 71% to 74% while holiday trips have decreased by 9% Affordability is still a major challenge due to unemployment recorded at 25.6% in Q2 of 2013 Lower consumer spending recorded in Q1 of 2013 was 2.3% - down from 2.4% (Q4 of 2012), 2.7 (Q3 of 2012) and 3.2% (Q2 of 2012). In addition to this, South Africans do not associate value and meaning to domestic travel experiences and therefore do not invest. There is need for a culture adjustment in the five market segments, causing consumers to re-prioritise travel. The new campaign addresses this requirement by igniting a spark that culminates in a ‘movement’ that identifies with domestic travel benefits. Reasons for a Decline in Domestic Performance

Slide no. 24 A comprehensive campaign audit was performed on the last three Domestic campaigns. The new revamped Domestic Tourism campaign extracts all the key learning’s from the previous campaigns. In reviewing the challenge with the Shot’ Left campaign it was recognized that the shortfall of the target market did not address the large potential of the market. In the case of the Vaya Mzansi campaign, it was apparent that it evoked national pride amongst South Africans, using magnificent imagery that covered all corners of the country. Although it was a beautifully produced campaign, the call to action was minimal. In the revamped Domestic Tourism revamped campaign, the market segmentation has been aligned to the Vaya Mzansi (from LSM 1 to 10) with the inclusion of the “Young at Heart” - who are over 50 plus, with greater disposable income. This Domestic Tourism campaign also focuses on shifting behaviour to create a culture of travel that has not previously been achieved. Revamped Domestic Campaign

Slide no. 26 The new Domestic Tourism initiates a spark of engagement, generating ‘healthy banter’ between the cities and provinces by creating a competitive interaction that challenges the rest of South Africa with the statement “Nothings More Fun than a Shot’ Left from ….” This is a fully integrated, sustainable, unconventional, unexpected, entertaining and delightful campaign. It focuses on improving short-term trips like a weekend away. Leveraging of the equity built on Shot’Left, the creative device is “Nothing is more Fun than …” The new campaign brings to life the innate benefits of short breaks, road trips with friends or quick get- away trips from the city, a Shot’Left. The campaign uses travel ambassadors that personify fun. The look and feel will be colourful, energetic and dynamic. A 360-degree, through-the-line media campaign will broadcast targeted messaging such as “THERE IS NOTHING MORE FUN THAN A SHOT’ LEFT from JOZI”. 1st Phase - Inter-City and Provincial Rivalry (3 months)

Slide no. 27 This phase is characterised by a fully integrated campaign on television commercials, radio, digital media and print (e.g. catalogues into newspapers). This will be deal driven campaign with flexibility pricing and offering. Collateral will also be distributed around events such as Fashion Week. Provincial Alignment - SPARK will promote intra-Provincial travel. Concurrently to the rivalry phase that is sparked, the Provinces are assisted with ‘templates’ of the marketing collateral to add their own creative statement. SPARK will promote intra-Provincial travel. Chapters of the campaign will focus on promoting attributes that are unique for each Province. The Provincial campaign will provoke that “Nothing is More Fun than a Shot’Left in Limpopo” (for example). A road trip is being used to showcase various modes of transportation across the country (bus, train, taxi, etc). Alignment of strategies to this campaign e.g. aligning the Gauteng Tourism Authority’s GP to the JOZI’s campaign. Most Province and Cities are already having strategy around trade partners – but alignment will add impetus to the campaign  Use of DJs with a regional appeal was suggested. 2nd Phase – Post Rivalry

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 29 Number of Graded Establishments as at end September 2013 Non-Hotel AccommodationECFSGPKZNLPMPNWNCWC Grand Total Backpacker & Hostelling Bed & Breakfast Caravan & Camping Country House Guest House Lodge Self Catering Non-Hotel Accommodation Total Hotel Total Accommodation Grand Total MESE Total (Business Tourism) Grand Total Graded Properties The grand total of 5675 is the total number live establishments

Slide no. 30 Number of Graded Rooms as at end September 2013 Non-Hotel AccommodationECFSGPKZNLPMPNWNCWCGrand Total Backpacker & Hostelling Bed & Breakfast Caravan & Camping Country House Guest House Lodge Self Catering Non-Hotel Accommodation Total Hotel Total Accommodation Grand Total MESE Total (Business Tourism) Grand Total Graded Properties This slide DOES NOT include cancellations

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 32 Number of Bids Secured for South Africa Total BidsTotal Number of Days Estimated Delegate Numbers Estimated Economic Impact 106 Secured R Bids Total BidsTotal Number of Days Estimated Delegate Numbers Estimated Economic Impact 30 Submitted R Bids Submitted Q1 and Q2 dated 22/10/2013

Slide no. 33 Number of Bids Secured for South Africa Total BidsTotal Number of Days Estimated Delegate Numbers Estimated Economic Impact 41 Secured R Bids 2013 Total BidsTotal Number of Days Estimated Delegate Numbers Estimated Economic Impact 26 Secured R Bids 2014

TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE TABLE OF CONTENTS  GLOBAL ENVIRONMENT  OVERALL PERFORMANCE - KPIs  GLOBAL Q1 PERFORMANCE  SOUTH AFRICA’S Q1 PERFORMANCE  MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND  MARKETS THAT WILL DRIVE FUTURE GROWTH  DOMESTIC TOURISM RESULTS  TGCSA UPDATE  NCB UPDATE  FINANCIAL PERFORMANCE

Slide no. 35 Highlights of SA Tourism’s Financial Performance for the 6 Months that ended on 30 September 2013 SA TOURISM ON TRACK TO SPEND ITS FULL 2013/14 BUDGET During the first 6 months of the 2013/14 financial year, SA Tourism spent R million which represents: o 89% of its year-to-date expense budget of R million (this means that SAT was R 77.9 million behind on its year-to-date budget as at 30 September 2013); o 62% of its total 2013/14 operational budget of R million.

Slide no. 36 Highlights of SA Tourism’s Financial Performance (cont.) EXPENDITURE BY COUNTRY OFFICES AND BUSINESS UNITS Nine of South African Tourism Country offices spent 90% or more of their year-to-date budgets, two Country offices were slightly below budget (Amsterdam & Nigeria) and three Country offices were significantly below budget (Brazil, Angola & Kenya). Of South African Tourism’s seventeen Business Units, twelve spent 90% or more of their 2013/14 year-to- date budgets, three were slightly behind on their budgets (Africa Portfolio, TGCSA & Watch-list Business Unit) and two Business units were significantly below budget (National Conventions Bureau & HR). Relevant actions have been taken by management to address the under-expenditure within these Country offices and Business Units.

Slide no. 37 Highlights of SA Tourism’s Financial Performance (cont.) CAPITAL EXPENDITURE During the first 6 months of the 2013/14 financial year, SA Tourism only managed to spend R or 7% of its total 2013/14 CAPEX budget of R 18, 7 million. The main reasons for this were the fact that: o three planned overseas offices have not been opened yet (Angola, Brazil and Nigeria) while the 4 th new office (in Kenya) is only planned for the end of the 2013/14 financial year o approval for phase 1 of the planned Head Office extension have not been received from the relevant local authority yet.

Slide no. 38 THANK YOU