Briefing to the Portfolio Committee on Tourism SA Tourism Updated 5 Year Strategic Plan and Annual Performance Plan (Review 2014 /15) 04 July 2014

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” Strategic Plan & Annual Performance Plan – 04 July 2014

Strategic Plan & Annual Performance Plan – 04 July 2014 Vision and Mission Mission Vision 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 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. 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 Create a thriving tourism sector by making South Africa a tourism and business events destination of choice Possible Tourism sector outcome which SA Tourism will need to deliver against 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) SA Tourism outcome Convince consumers that SA can be trusted to deliver memorable experiences Engage Stakeholders to deliver quality visitor experience that re-affirm the brand promise Work the distribution channel to promote SA Energise and empower the organisation to innovate and achieve excellence Invest only in selected markets to deliver volume and value Strategies to deliver outcome Slide no. 3 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 ... Sustainable GDP Growth Sustainable job creation Redistribution and transformation Increase in tourist volume Increase in tourist spend Increase length of stay … through six key objectives Improve geographic spread Improve seasonality patterns Promote transformation Understand the market Choose the attractive segments Market the Destination Facilitate the removal of identified obstacles Monitor and learn from tourist experience Facilitate the product platform …by acting in a focused way to Strategic Plan & Annual Performance Plan – 04 July 2014

GRADING/ QUALITY ASSURANCE BUSINESS EVENTS & MEETINGS Business Focus LEISURE TOURISM “preferred tourism destination GRADING/ QUALITY ASSURANCE ”improve quality visitor experience” BUSINESS EVENTS & MEETINGS “preferred business events destination SUPPORT Strategic Plan & Annual Performance Plan – 04 July 2014

South African Tourism Board Minister of Tourism South African Tourism Board NDT: Director General NDT DG 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/ Global Trade Slide no. 6 Strategic Plan & Annual Performance Plan – 04 July 2014

Chairperson : Frank Kilbourn Deputy Chairperson: Zweli Mntambo SA Tourism Board Chairperson : Frank Kilbourn NDT DG Deputy Chairperson: Zweli Mntambo Also Chairperson of Audit & Risk Committee. AYANDA NTSALUBA SIZA MZIMELA GRAHAM WOOD: Also chair of the Awards Committee South African Tourism Board Global Manager: Product TUMI MAKGABO Also chair of the Marketing Committee KANANELO MAKHETHA Also chair of the NCB: Sub-Committee Regional Director: Europe DIRK VAN SCHALKWYK . MONWABISI KALAWE ALLAN MOORE THEBE IKALAFENG QAO Global Manager: Stakeholder/ Global Trade Slide no. 7 Strategic Plan & Annual Performance Plan – 04 July 2014

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” Strategic Plan & Annual Performance Plan – 04 July 2014

Steps of the Portfolio Review 1st filter 2nd filter 3rd filter 133 117 Exclude Africa and subdivide it into 5 regions Exclude markets population less than 3 million people OR GDP PPP of less than $11 000 Top markets in terms of outbound volume and value 199 countries Exclude SADC (Africa Land markets) from the elimination process (proximity to SA). 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 Core Tactical Investment and Watch-List markets 4th filter Final portfolio Application of cost-benefit evaluation *Africa land markets are markets where more than 60% of arrivals to SA arrive by land. Strategic Plan & Annual Performance Plan – 04 July 2014

Strategic Plan & Annual Performance Plan – 04 July 2014 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. Strategic Plan & Annual Performance Plan – 04 July 2014

5th Portfolio Review Outcome to be Implemented - effective 01/04/2014 – 30/03/2017 AFRICA AMERICAS ASIA & AUSTRALASIA EUROPE & THE UK CORE MARKETS Angola Mozambique Nigeria Tanzania Domestic Brazil USA Australia China India France Germany Netherlands UK INVESTMENT MARKETS Botswana, DRC, Ghana, Lesotho, Uganda, Zimbabwe Canada Japan South Korea Italy Russia TACTICAL MARKETS Namibia UAE Zambia Singapore Switzerland WATCH-LIST MARKETS Ethiopia Malawi Swaziland Argentina New Zealand Austria Belgium Denmark Finland Norway Spain Sweden Turkey STRATEGIC IMPORTANCE Egypt, Israel, Morocco, Saudi Arabia, Tunisia, Malaysia Angola: 6/’14 Brazil – 7/’14 Australia France USA India Germany Nigeria Netherlands Kenya: 05/’14 China UK Japan Italy South Korea Existing Country Offices Strategic Plan & Annual Performance Plan – 04 July 2014 Planned Country Offices

Strategic Plan & Annual Performance Plan – 04 July 2014 The Hub Strategy for Global Markets to increase market penetration, footprint and efficient resource utilisation. Americas Asia & Australasia Europe North Americas Latin Americas Asia Pacific Central Europe United Kingdom Germany (Office): Hub **Russia USA (Office) - Hub Canada * Brazil (Office): Hub *** Argentina *** Chile China - Office ** : Hub Hong Kong ***Macau Japan ** South Korea United Kingdom (Office): Hub Ireland Scotland Wales Spain Turkey Africa Switzerland West Africa East Africa Austria Benelux & Scandinavia Australasia Nigeria (Office): Hub Ghana *** ECOWAS countries * Kenya (Office) : Hub **Tanzania & Uganda *** Ethiopia Netherlands (Office) :Hub Belgium Australia (Office) : Hub New Zealand France (Office) Norway **Sweden Denmark Finland Central Africa India France – Stand Alone * Angola (Office) – Stand Alone DRC: Hub India (Office) – Stand Alone Italy (Office) Asia Air Link Hub Italy – Stand Alone SADC Malaysia Singapore Botswana Malawi Zimbabwe Lesotho 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) Mozambique Zambia Namibia Strategic Plan & Annual Performance Plan – 04 July 2014

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” 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. Strategic Plan & Annual Performance Plan – 04 July 2014

Strategic Plan & Annual Performance Plan – 04 July 2014 Regional Hub Strategy   East Africa Hub Central Africa Hub West Africa Hub Summary of opportunity Kenya is a relatively small market with only 36k arrivals in 2012. Serving additional countries, such as Uganda and Tanzania from Kenya would increase arrivals to 95k – taking advantage of similar consumer profiles. Good regional integration and growth is possible. Angola, similarly to Kenya, will be a hub office – also servicing DRC and Congo-Brazzaville. DRC will be serviced using a virtual office with only 1 Trade Relations Manager based in DRC but reporting to the hub office in Angola.   This approach is cost effective and most practical given the proximity and high connectivity. The Nigerian market is large and fast growing. Serving Ghana from Nigeria adds another 25k arrivals to the Nigerian market. Arrivals from Ghana are also growing fast. Combined arrivals from both Ghana and Nigeria represent some 104k arrivals. In 2013 a scoping exercise was performed to determine how to penetrate the market. We will, continue to monitor Congo-Brazzaville and other surrounding Central African states to leverage opportunities as they arise. Achieved milestone: The Nigerian office is fully operational. Strategic Plan & Annual Performance Plan – 04 July 2014

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” 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: Discover own country and its hidden gems 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

Strategic Plan & Annual Performance Plan – 04 July 2014 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” 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 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 4 Increase SA brand awareness Making SA more attractive to visitors and results in increased spend 5 Provide quality assurance for tourism products Marketing through word of mouth of the quality experience offered in SA 6 Increase business events Selling SA as a “Meetings Destination” 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 Baseline – 2013/14 Performance Medium Term Targets 2011 / 12 2012/13 2013/14 2014/15 Quarterly Targets 2015/16 2016/17 Increase foreign visitor arrivals to SA # of foreign visitor arrivals (annually) 12 255 155 13 451 565 12 518 310 Tourist arrival estimate = 9 616 964 16 033 947 Tourist arrivals estimate: 10 000 228 Q1: 3 906 086 17 041 406 Tourist arrivals estimate: 10 446 753 18 049 947 10 911 069 Q2: 3 687 842 Q3: 4 053 864 Q4: 4 386 156 # of buyers that SAT will host at Meetings Africa and Indaba during the financial year N/A Total: 376 Indaba: 207 Meetings Africa: 169 Total: 427 (Indaba: 250 Meetings Africa: 177) No quarterly targets 486 hosted buyers (Indaba 309 Meetings Africa: 177) Increase domestic tourism in SA # of domestic travellers 13.9m 12.5m 12.0m 12.9m Q1: 3.4m 13.5m 14.3m Q2: 2.6m Q3: 3.4m Q4: 3.5m Slide no. 20 Strategic Plan & Annual Performance Plan – 04 July 2014

Strategic Outcome Oriented Goals, Goal Statement and Objectives Strategic Objective Key Performance Indicator Audited Outcome/ Actual Performance Baseline – 2013/14 Performance Medium Term Targets 2011/12 2012/13 2013/14 2014/15 Quarterly Targets 2015/16 2016/17 Increase domestic tourism in SA # of total domestic trips 26.3m 25.4m 25.1m 25.9m Q1: 6.9m 28.4m 31.2m Q2: 5.0m Q3: 6.9m Q4: 7.1m # of holiday trips 3.95m 2.9m 2.98m 3.07m Q1: 0.92 1m 3.3m 3.5. Q2: 0.615m Q3: 0.923m Q4: 0.614m Number of reports - seasonality 1 Report N/A Increase tourism trended revenue contribution 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) R128.0b (Trended revenue) Q1: R30.7b R129.7b R133.6b Q2: R29.4 b Q3: R33.3b Q4: R34.6b Strategic Plan & Annual Performance Plan – 04 July 2014 Slide no. 21

Strategic Outcome Oriented Goals, Goal Statement and Objectives Strategic Objective Key Performance Indicator Audited Outcome/ Actual Performance Baseline – 2013/14 Performance Medium Term Targets 2011/12 2012/13 2013/14 2014/15 Quarterly Targets 2015/16 2016/17 Increase SA brand awareness Brand Awareness 77% 81% 79% 80% N/A Provide quality assurance for tourism products # of graded establishment 4 886 6 022 5 671 7 088 (1 195 New 5 893 renewals) Q1: 1 772 7 584 8 115 Q2: 1 772 Q3: 1 772 Q4: 1 772 Increase business events # of delegates 52 587 delegates 94 893 delegates 58 500 delegates 61 500 delegates at international conventions 65 000 delegates at international conventions 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* Tourism share of SA GDP Tourism direct GDP Total Direct GDP (Billions) Tourism Share of Direct GDP   CAGR (2008-2012) Total Contribution to GDP 6.8% Source: TSA, Statistics SA – Preliminary figures are used for 2011 and 2012 Strategic Plan & Annual Performance Plan – 04 July 2014

Year-on-Year Change in Tourist Arrivals to each region 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 % Change 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 Strategic Plan & Annual Performance Plan – 04 July 2014 Slide no. 24

Central & South America Foreign arrivals to South Africa for January to December 2013 grew by 10.5% over 2012 to reach 14.8 million Europe 1,628,154 arrivals 6.7% up from 2012 North America 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 133, 959 arrivals 6.40% up from 2012 Australasia 162, 356 arrivals 2.3% up from 2012 AFRICA GRAND TOTAL 11, 585,206 arrivals 12.4% up from 2012 14, 806, 216 arrivals 10.5% up from 2012 Indian Ocean Islands 27, 486 arrivals 13.4% up from 2012 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

Central & South America 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 1,494,978 arrivals 7.0% up from 2012 North America 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 129,463 arrivals 8.0% up from 2012 Australasia 148,660 arrivals 4.0% up from 2012 AFRICA GRAND TOTAL 6,889,389 arrivals 3.8% up from 2012 9,616,964 arrivals 4.7% up from 2012 Indian Ocean Islands 24,394 arrivals 13.3% up from 2012 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. 26

Central & South America Europe remains the main source of tourist arrivals to South Africa while Asia remains buoyant with the highest growth. Europe Europe “RETAIN & DEFEND” 430,910 arrivals 9.2% up from 2012 North America North America “GROW” 92,727 arrivals 5.2% up from 2012 Africa Air “GROW” Asia & Australasia Asia “GROW” 108,272 arrivals 27.1% up from 2012 Central & South America Brazil “GROW” 35,535 arrivals 15.2% up from 2012 AFRICA Australasia Africa Land “GROW” Australia “RETAIN & DEFEND 1,736,166 arrivals 7.6% up from 2012 Strategic Plan & Annual Performance Plan – 04 July 2014

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 1000 4.5% Tourist Arrivals (Millions) 7.4% 5.7% 11% 13.1% % change y-o-y 14.2% 12% 8.2% 3.4% 15% 6.8% 10.2% 4.7% 4.0% 5% Africa Air Markets Africa Land Markets Long-haul Markets All Markets 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 1 38 76 Bed & Breakfast 182 14 177 232 22 33 18 34 310 1 022 Caravan & Camping 16 7 11 10 4 24 97 Country House 32 29 15 69 Guest House 233 54 431 146 112 71 587 1 759 Lodge 49 43 58 83 55 13 376 Self Catering 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 180 108 21 187 663 Accommodation Grand Total 690 153 950 760 291 319 165 198 1 982 5 508 MESE Total (Business Tourism) 72 5 163 Grand Total Graded Properties 697 164 764 306 337 170 211 2 000 5 671 Slide no. 29

Strategic Plan & Annual Performance Plan – 04 July 2014 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 Bed & Breakfast 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 Guest House 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 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. BIDS SUBMITTED 2013-2014 FINANCIAL YEAR Note: R5.1 million was spent on 57 Bids = ROI: R948 million TOTAL BIDS TOTAL NUMBER OF DAYS ESTIMATED DELEGATE NUMBERS ESTIMATED ECONOMIC IMPACT 57 180 76 843 R948 186 400 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 Strategic Plan & Annual Performance Plan – 04 July 2014 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” Strategic Plan & Annual Performance Plan – 04 July 2014

Revenue and Expenditure Estimates 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17   ENE Estimate Adjustment Approved Rand Thousand Audited Pre-Audited Budget Estimate* 1 Government grant 631 685 668 613 754 953 846 333 829 973 36 360 866 333 876 309 974 012 1 024 847 2 TOMSA levies 104 973 98 169 111 970 131 289 87 472 82 000 86 428 91 009 3 Indaba & Meetings Africa 38 803 37 868 50 013 59 438 42 463 48 694 51 323 54 044 4 Grading fees (note 1) 6 376 5 284 3 252 1 520 14 236 14 668 15 460 16 279 5 Sundry revenue 52 567 19 045 50 318 57 610 18 168 20 567 36 531 38 466 Total 834 404 828 979 970 506 1.096 m 992 312 1.028 m 1.043 m 1.164 m 1.224 m 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. Strategic Plan & Annual Performance Plan – 04 July 2014 Slide no. 33

Revenue and Expenditure Estimates per KPI Name of the Objective 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17   ENE Estimate Adjustment Approved in Rand Audited Budget Major Objectives 856 089 863 295 979 646 992 312 - 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 1 Increase annual foreign visitor arrivals to South Africa 227 535 223 734 268 375 291 519 290 462 291 509 310 334 2 Increase the number of Domestic Travellers 39 694 23 452 45 113 35 038  26 360 61 398 43 672 143 800 144 000 3 Increase tourism trended revenue contribution to the economy 4 Marketing South Africa to become the preferred Tourism Brand* 238 465 224 258 245 850 206 828 220 292 232 187 244 493 5 To provide quality assurance by having graded accommodation establishments 34 568 25 061 3 252 37 114 40 377 39 300 41 265 6 To increase the number of international Business Events delegates in South Africa 43 216 43 631 45 813 48 287 50 846 Total 863 293  36 360 1 028 672 Slide no. 34 Strategic Plan & Annual Performance Plan – 04 July 2014

SA Tourism Budget (Breakdown) by Country Strategic Plan & Annual Performance Plan – 04 July 2014

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. Strategic Plan & Annual Performance Plan – 04 July 2014

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” Strategic Plan & Annual Performance Plan – 04 July 2014

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 Strategic Plan & Annual Performance Plan – 04 July 2014

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” Strategic Plan & Annual Performance Plan – 04 July 2014

Reconsider South Africa (New South African Tourism brand video) Strategic Plan & Annual Performance Plan – 04 July 2014

Strategic Plan & Annual Performance Plan – 04 July 2014 Thank You Slide no. 41 Strategic Plan & Annual Performance Plan – 04 July 2014