2003/4 BUSINESS PLAN & BUDGET PRESENTATION Presentation: Parliament 20 May 2003 Presented by CFO, Johan van der Walt

Strives to contribute to … Sustainable GDP growth Sustainable job creation Redistribution and transformation … through delivering sustained... Increases in tourist volume Increases in tourist spend Increased length of stay Improved geographic spread Improved seasonality patterns … by acting in a focused way to … Understand the market Choose the attractive segments Market the Destination Facilitate the removal of obstacles Facilitate the product platform Monitor and learn from tourist experience Promote transformation

Achievements 2002/3 SA achieved over 6,429 million tourists during 2002 (> vs 2001; highest growth internationally) Developed and launched Tourism Growth Strategy (focus marketing activities & spend on specific segments where returns for SA will be maximised; seasonality addressed campaigns USA, Africa, UK & India, restructured operations (offices, staff) Innovative deals (CNN, Cricket World Cup, IIFA Awards, etc.) Developed tourism brand for South Africa with IMC Achieved a clean an unaudited finance report, a first in 5 years 2002/3 Budgeted expenses: R 310,9 million “Getting the basic right” 2002/3 Budgeted expenses: R 310,9 million “Getting the basic right” Note: Source:

Objectives 2003/4 Fast track transformation & empowerment Get more funding (Government & Private Sector) (Japan & China) Maintain growth in tourism arrivals Continue refining & rolling out Tourism Growth Strategy (additional research, increasing focussing marketing activities & spend on specific segments where returns for SA will be maximised; seasonality addressed campaigns, second- tier succession planning (Country Managers) Innovative deals (Thompsons, SAA, Virgin) Establish tourism brand for South Africa Balanced Scorecard & ISO 9001 “Fast track transformation” Note: Source:

The 5 key inputs & outputs … Zero-based Business unit/Country Bus Plan & Budget Previous Budget & Bus Plan Latest market intelligence ParametersVision & overall strategy Future Calendar Applicable marketing activities for Growth & Defend segments in identified markets Value-for money & ROI Linked to Performance Management system Flexibility (pro-active & reactive) Practical (actions, HR & funding)

2003/4 Budget 71% from DEAT (Government) (R 296,4 million) 11% from voluntary TOMSA levies (Private sector) (R 44 million) 5% from Business Trust (R 20 million) 13% generated by SA Tourism (R 56.,5 million) (deal-driven campaigns, exhibition space, brochures, etc.) Total Revenue: R 416,9 million Note: Source:

2003/4 Budget Represents 61% of total budget Europe: R 146,2 million Americas: R 53,9 million Asia: R 42,9 million Africa: R 11,6 million Direct overseas marketing expenses: R 254,6 million Note: Source:

2003/4 Budget Represents 18% of total budget Central Marketing: R 45,5 million Strategic Relations: R 9,3 million E-Marketing/Business: R 6,1 million PR & Comms: R 12,9 million Indirect overseas marketing expenses: R 73,8 million Note: Source:

2003/4 Budget Represents 7% of total budget Segmentation research in France, China and Japan Departure surveys Cluster research Various smaller research projects Research: R 29,0 million Note: Source:

2003/4 Budget Represents 1% of total budget Facilitation Support provincial budgets Domestic Marketing: R 4,75 million Note: Source:

2003/4 Budget Represents 3% of total budget Includes recruitment, training, Balanced Scorecard implementation & performance bonuses, etc. HR & Performance Bonuses: R 12,9 million Note: Source:

2003/4 Budget Represents 10% of total budget Includes Grading Council assistance Finance & admin, CAPEX, Office of CEO: R 42,4 million Note: Source:

2003/4 Budget THANK YOU! QUESTIONS? Note: Source: