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

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

3. Growth Rates – Selected Source Markets 2003 - 2012

4. South Africa – Non-African Arrivals Seasonality 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 JanFebMarAprMayJunJulAugSepOctNovDec 2001 2002 2003 2004 2005 2006 20082009 2007

5. 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)

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

7. 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

8. Long Haul Visitors to EC 2002 - 2008 1.3% 3.9% -38.7% 21,0% 0 100,000 200,000 300,000 400,000 500,000 20042005200620072008 -18,6%

9. Long Haul Visitors to KZN 2002 - 2007 6.6% (-9.0)% (-2.3)% (-9.7)% 0.1% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 200220032004200520062007 (-14.6)%

10. Long Haul Visitors to KZN 2006-2011 - 43%

11. Regional Review – South Africa 2007200820092010 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

12. Regional Review – Namibia Point of Departure - 2003 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

13. 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?

14. Key Segments Leisure 142 755 VFR / Business 22 581 Namibia – Performance 2003 Land Arrivals 173 141 Air Arrivals 48 868 Leisure 103 482 VFR / Business 118 527 South Africa 222 009 Land Arrivals 216 574 Air Arrivals 6 178 Angola 222 752 Rest of Africa 81 124 Africa 525 885 Germany 58 036 Other Europe 83 798 Other Countries 27 502 Overseas 165 336 Total Tourist Arrivals 695 221

15. Total International Leisure 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 JanFebMarAprMayJunJulAugSepOctNovDec 2001 2002 2003

16. 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

17. The Marketing Strategy Tactical Strategic Organisational / Institutional

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

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

20. 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

21. 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

22. 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 2014 - 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

23. 0 5,000 10,000 15,000 20,000 25,000 JanFebMarAprMayJunJulAugSepOctNovDec International Arrivals – Seasonality 2001 - 2006 2001 2005 2006

24. Top Six International Markets

25. Tourist Arrivals from UK

26. Tourist Arrivals from Germany

27. Tourist Arrivals from USA

28. Tourist Arrivals from France