0. Presentation to Select Committee on Trade and International Relations SA Tourism Final 5 Year Strategic Plan & Annual Performance Plan 2017 – 2021
28 June 2017

1. Table of Contents Strategic Overview Vision and Mission (slide 4)
Value and Organisational Culture Cornerstones (slide 5)
Legislative Framework and Governance (slides 6-7)
Organisational Structure (slide 8)
Overview of Tourism Sector Performance in 2016 (slides 9-14)

2. Table of Contents SA Tourism Strategic Objectives
Organisational Environment (slide 16)
Funding (slide 17)
Organisational Efficiency and Governance (slide 18)
Strategic Planning Process (slides 19 – 20)
Enhanced Strategy for Growth (slides 22 – 30)
Strategic Goals and Objectives (slides 32 – 33)
SA Tourism Programmes (slides 35 – 46)
Annual Performance Targets (slides 47 – 53)
Quarterly Performance Targets (slides 55 – 61)
Revenue, Expenditure Estimates and Budgets (slides 63 – 67)
Risk Management (slides 69 – 71)
Abbreviations and acronyms (slides 72 – 73)

3. Strategic Overview

4. Vision
Mission
To position South Africa as an exceptional tourist and business events destination that offers a value-for-money, quality visitor experience that is diverse and unique.
To contribute to inclusive economic growth by increasing the volume of travellers and the value contributed to the South African economy.
Page 08-09: Strategic Plan

5. Values and Organisational Culture Cornerstones
The shared common values are:
Respect: everyone will be treated with utmost dignity, inclusiveness, openness, tolerance and a sense of appreciation of diversity;
Integrity: we will do things consistently no matter what the circumstances;
Authentic Caring: we will show genuine care to each other, customers, shareholders, partners, suppliers and businesses;
Responsibility: we will take personal responsibility for delivering work that exceeds internal and external customers’ expectations; and
Excellence: we will take pride and commit to always meet and exceed our customers’ expectations.
In living these shared common values as demonstrated through employee behaviours and actions, SA Tourism’s organisational culture will be anchored on the following three cornerstones:
Teamwork demonstrated by supportive and trustworthy relationships as well as strong cooperation across departmental boundaries as we co-create innovative solutions;
Excellence: every employee’s passion, unwavering drive for excellence and thought leadership will contribute significantly to innovate and create inspirational memories; and
Ubuntu: in all dealings at SA Tourism, we will ensure that people come first and relate to each other with compassion and consideration.
Page 08-09: Strategic Plan

6. Legislative Framework and GovernanceNO
LEGISLATIVE FRAMEWORK
BRIEF DESCRIPTION APPLICABLE TO SOUTH AFRICAN TOURISM 1.
South African Tourism established in terms of the Tourism Act no 3 of 2014
Establishes governance and accountability of South African Tourism to the SA Tourism Board appointed by the Minister.
to provide for the continued existence of the South African Tourism Board
to establish a National Convention Bureau to market South Africa as business tourism destination
to provide for the establishment of the Tourism Grading Council 2.
Public Finance Management Act (PFMA)
Established in terms of the Tourism Act no 3 of and listed as a Schedule 3a Public Entity (PFMA)
Promote transparency, accountability, and sound management of the revenue, expenditure, assets and liabilities of the institutions to which this Act applies. 3.
National Treasury Regulations and related Practice Notes
Regulating financial, non-financial as well as fiscal matters 4.
Reserve Bank Regulations
Management of international payments, opening of foreign bank accounts and transfer of funds
Page 08-09: Strategic Plan

7. Legislative Framework and Governance cont.NO
LEGISLATIVE FRAMEWORK
BRIEF DESCRIPTION APPLICABLE TO SOUTH AFRICAN TOURISM 5.
National Tourism Sector Strategy (NTSS)
Sector strategy aligned to the priorities of the Medium Term Strategic Framework (MTSF)
Growing tourism beyond 2020,
Alignment to Government’s priorities of job creation and GDP contributions
Growing the domestic tourism market and position SA as tourism and business events destination 6.
National Development Plan (NDP)
Tourism is one of development pillars for economic growth – Chapter 3
Page 08-09: Strategic Plan

8. Organisational Structure
Page 16: Strategic Plan

9. Overview: Global Tourism Performance in 2016
Among the top five source markets, China (the world’s top source market) continues to drive demand, reporting double-digit growth in spending (+19%). Robust results from the United States (+9%), benefited many destinations in the Americas and beyond.
Germany reported a 5% increase in expenditure, the United Kingdom, a 10% increase, and France, 3% growth.
Tourism spending grew notably in Australia and the Republic of Korea (both +9%), and moderately in Italy (+3%). By contrast, expenditure from the Russian Federation declined 37% and from Canada a slight 2%.
Eight other markets reported double-digit growth: Egypt (+38%), Argentina (+27%), Spain (+19%), India (+16%), Thailand (+15%), Ukraine (+15%), Ireland (+12%) and Norway (+11%).
Preliminary unaudited results

10. Overview: South African Tourism Performance in 2016
Foreign arrivals accounted for 10 million of total tourism trips and increased by 12.8% compared to 2015.
Africa is our biggest source region followed by Europe and North America. The fastest growing regions were Central & South America (34.3%), Middle East (34.1%) and Asia (30.3%). All the regions have grown to new record highs, the only exception being Australasia which is slightly behind 2014.
The main driver of the double digit increase in foreign trips was tourists visiting for leisure.
MICE tourists remained relatively stable while business shopping saw a decline (-10.6%) and business travellers (corporate travel) saw 63.2% growth (small base)
Preliminary unaudited results

11. Tourist Arrivals to South Africa in 2016
Preliminary unaudited results

12. Overview: Domestic Tourism
Domestic tourism accounted for 24.3 million of the tourism trips, a decrease of -0.7% compared to the 24.5 million trips taken in 2015.
The decrease in total trips was largely driven by a decrease in trips taken for the purpose of visiting friends and relatives and for holiday while business grew by 22%.
The increase in average length of stay to 4.3 nights led to the domestic bednights growing despite the fewer tourist trips in this year.
As in previous years, affordability remained the main deterrent to taking a trip.
Domestic tourist’s revenue increased by 12% to record R26.5 billion in 2016 compared to R23.6 billion in 2015.
The domestic tourist who took a trip in this period spent more per trip and per day than last year, growth of 13% and 11% respectively.
Preliminary unaudited results

13. Overview: Business Events
The South African business events industry has been growing steadily over the last 10 years, contributing towards the country’s tourist arrivals. This growth comes from industrial sectors where South Africa is a thought leader and/or shows potential for growth.
South Africa was ranked 38th globally in 2015 and was listed in the top 15 long-haul business events destinations, cementing the country’s status as the number one ranked business events destination in Africa and the Middle East.
Networking opportunities afford local delegates with new business and research collaborations, which can generate innovation, ideas and research agendas for many years to come.
Globally, safety remains an important consideration, and economic and political instability is also a key concern.
For incentive travel millennials and younger employees often seek exotic and cultural adventures. They are also motivated by doing good.
Page 14-15: Strategic Plan

14. Overview: Tourism Grading
Despite the growing trends such as Airbnb and Uber as well as the influence of online platforms such as TripAdvisor, quality assurance remains important to determine the standard of service level, certainty and reliability.
Recent market insights and trends show an increase in online user-generated consumer reviews. These put pressure on product owners to ensure service excellence and high-quality tourism offerings.
A number of surveys show that graded establishments experience improved perceptions of value from customers, based on their participation in grading systems.
The number of graded accommodation and rooms in South Africa is just over and respectively, 85% being non-hotel establishments and 15% being large hotel chains and facilities for meetings, exhibitions and special events.
The large hotel groups and conference facilities account for 50% and the remainder by SMMEs.
Page 15-16: Strategic Plan

15. SA Tourism Strategic Objectives

16. Organisational Environment
Page 17: Strategic Plan

17. Funding
South African Tourism receives approximately 90% of its annual budget from government grants and subsidies, and 10% from the private sector – via the TOMSA levy allocated through the Tourism Business Council of South Africa (TBCSA).
South African Tourism delivers its mandate through collaborative funding and joint marketing investment, harnessed from private and public sector partners.
Page 17: Strategic Plan

18. Organisational Efficiency and Governance
South African Tourism recently embarked on a review of its performance and the prevailing operating environment, in a bid to enhance its growth strategy. The review included interviews with key stakeholders from government and the tourism industry.
The extensive canvassing process resulted in a number of principles being identified for South African Tourism to implement internally to enable the organisation to improve its efficiencies and have an optimal impact on the industry:
- Mapping and streamlining business processes and systems to improve operational efficiency;
- Reviewing policies to improve agility and operational efficiency; and
- Reviewing and designing an organisational structure to support South African Tourism’s new five-year strategy.
Page 17-18: Strategic Plan

19. Strategic Planning Process
South African Tourism revised its Tourism Growth Strategy (2002) in order to achieve five million additional tourists in five years (4 million international tourist arrivals and 1 million domestic holiday trips).
The enhanced strategy for growth is an update to the 2002 Tourism Growth Strategy (TGS), which mapped out source markets that will deliver international tourist arrivals and domestic tourist as well as the strategy to achieve the set goals.
The Marketing Investment Framework (MIF) has been concluded in consultation with the stakeholders and will guide where South African Tourism should invest its marketing budget for optimal return on investment (in terms of tourist numbers and tourist spend) for the next five years.
Page 18-19: Strategic Plan

20. Strategic Planning Process
SA Tourism drafted its Strategic Plan and Annual Performance Plan (APP) in line with the National Treasury’s framework. In the drafting of the Strategic Plan and APP inputs were considered from:
- SA Tourism Wider Management;
- SA Tourism Board;
- NDT and the Minister of Tourism;
- Tourism Industry through the Tourism Business Council of South Africa;
- Insights from the Enhanced Strategy for Growth and Marketing Investment Framework;
- Final allocation letter and budget allocation, which has been used to set targets.

21. Enhanced Strategy for Growth
“5-in-5”

22. SA Tourism’s Enhanced Strategy for Growth
Emanating from the Ministerial Review of 2015, in 2015–16, SA Tourism reinstated its growth strategy, seeking inputs on both internal and external environment
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
SA Tourism’s Enhanced Strategy for Growth
Globally, travel and tourism has been evolving, amid rising security concerns, shifting demographics and advent of new technology
Over 2009–14, South Africa’s inbound tourism surpassed global growth; however, international holiday-taking stagnated and domestic travel declined
The increase in SA Tourism’s resources has been offset by currency fluctuations and inflation, underpinning the need to have operational synergy and efficiency
SA Tourism is expected to operate with a clear role, governed by the principles of transparency and agility, and serve as the first port of call for tourism in South Africa
With inputs from the external landscape and taking cognisance of the internal environment, SA Tourism set itself a medium-term goal, steered by five strategic thrusts to contribute to the tourism sector of South Africa
Slide no 22
Strategic Plan: pages 19 – 24

23. THRUSTS TO MEET THE GOAL
To meet the desired goal, SA Tourism needs to build a recognisable, resilient and vibrant destination brand, by optimally utilising the available resources and synergising efforts with its partner networks, across a prioritised set of markets, segments or other business focus areas. To steer these activities, the organisation needs to serve as an inspired and energised custodian of the tourism brand of South Africa.
THRUSTS TO MEET THE GOAL
THRUST 1: OPTIMISING MARKETING INVESTMENTS
Develop and implement an investment strategy that allows SA Tourism to focus on prioritised markets and segments
THRUST 5: BEING AN INSPIRED ORGANISATION
Build an inspired and energised organisation that is motivated to meet the defined goal
THRUST 2: REASSESSING AND REALIGNING THE BRAND
Build a recognised, appealing, resilient and competitive tourism (and business events) brand for South Africa across the target markets and segments
THRUST 4: UTILISING RESOURCES EFFECTIVELY
Drive operational efficiencies in all activities, including human, marketing and other resources available to SA Tourism
THRUST 3: DEVELOPING EFFECTIVE STAKEHOLDER PARTNERSHIPS
Collaborate with partners, both local and international, to maximise synergies, enhance traveller experience and close sales
Slide no 23
Note: *Five (5) million tourists include ~4 million international tourist trips and ~1 million domestic holiday tourists
Strategic Plan: pages 19 – 24

24. Thrust 1: Optimising Marketing Investments
SA Tourism has developed a Marketing Investment Framework (MIF) to inform its investment choices for the next five years. The framework took into account the macroeconomic situation in South Africa, the depreciating rand and the fact that SA Tourism marketing spend in overseas markets is in foreign currency.
A number of markets have been identified to deliver optimal return on investment. This list of markets has been prioritised based on the attractiveness of each market and South Africa’s “ability to win” in each market.
As SA Tourism has limited resources, it has prioritised its markets using a tiered approach:
- Tier one: core markets;
- Tier two: strategic markets; and
- Tier three: the rest of the world (services through partnership with the SA Missions)
Strategic Plan: pages 21-22

25. SA Tourism Market Portfolio
Strategic Plan: page 38

26. Thrust 2: Reassessing And Realigning The Brand
Increased brand awareness and improved positivity improves travellers intention to visit South Africa and closure ratios.
The key focus areas of this thrust is to:
- Review brand performance to develop a detailed understanding of South Africa’s brand journey and identify the levers that can be pulled to grow the brand;
- Build knowledge and understanding of SA Tourism’s Brand Key – both within the organisation and across the external network;
- Build a global communication plan for the South Africa’s brand that is to be implemented by all stakeholders to improve consistency and impact of our brand message.
SA Tourism will also focus on supporting Brand SA’s reputation management strategy.
Strategic Plan: page 23

27. Thrust 3: Developing Effective Stakeholder Partnerships
SA Tourism does not own the entire value chain in the marketing, promotion and selling of South Africa as a tourist destination.
In the next five years, South African Tourism will, in collaboration with partners, embark on the following:
- Trade mapping: Complete a detailed review of the travel trade landscape;
- Partner engagement matrix: Create a trade engagement framework that will set out an all-encompassing approach for partnerships;
- Partner engagement: Proactively engage with international and domestic trade, media, influencers and related partners to improve conversion and address seasonality and geographic spread.
- Enhanced brand knowledge and familiarity: Expose targeted partners to the South Africa brand to enable them to inspire tourists and close deals;
Strategic Plan: pages 23

28. Thrust 3: Developing Effective Stakeholder Partnerships
- Provide access to stakeholders, (both internal and external) to all appropriate marketing collateral, images and market insights in an easy, open source manner;
- Work together with key partners such as provincial tourism authorities and cities, Brand South Africa, Proudly South Africa and Department of International Relations and Cooperation (DIRCO), to build the South African brand in a cohesive, consistent manner; and
- Monitor partnership successes: Evaluate the effectiveness of trade partnerships to determine return on investment.
Strategic Plan: pages 23

29. Thrust 4: Utilising Resources Effectively
SA Tourism is working towards optimising the utilisation of the existing resources and streamlining its underlying processes. This thrust will allow South African Tourism to bring in operational efficiency through all processes of the organisation.
The key areas of this thrust is to:
- Review policies, map and streamline business processes and relevant systems to improve agility and operational efficiency.
- Review and design organisational structure through Project Ignite to ensure achievement of the 5-in-5 goal. The emphasis of the project was to remove silo operations and to drive a performance-based culture.
Strategic Plan: page 24

30. Thrust 5: Being An Inspired Organisation
In order for the organisation to meet its 5-in-5 targets is important that all actions of SA Tourism and its employees are aimed towards meeting the defined goal. All parts – from business units to individuals – of the organisation need to clearly know their role in meeting the defined goal.
The key areas of this thrust is to:
- Implement the Human Capital Strategy that will ensure human capital competitiveness.
- Develop strong, inspiring and effective leaders with the vision and energy to deliver on the SA Tourism objectives.
- Improve organisational development and business effectiveness to ensure delivery of our business objectives.
- Build and nurture talent within the organisation to achieve the organisation’s goal.
- Reignite passion among all employees by changing the culture within to contribute to achieving the goal.
Strategic Plan: page 24

31. Strategic - Oriented Goals
Slide no 31

32. Strategic Outcomes-Oriented Goals
Strategic Outcome-Oriented Goals
Goal Statement
Government Outcomes
Increase the tourism sector’s contribution to inclusive economic growth
Market South Africa to attract 5 million additional international tourist arrivals (including business delegates) and domestic holiday trips that will contribute approximately R117 billion to the economy by 2021.
Outcome 4 and 11
Achieve operational efficiency and good governance
South African Tourism works towards optimising the use of existing resources and streamlining the underlying processes, while continuing to improve its internal controls to achieve an unqualified audit.
South African Tourism has identified the need to be agile in terms of its operations to tap into any opportunities while adapting to the rapidly evolving macro-environment.
Outcome 12
Strategic Plan: page 25 and 28

33. Organisational Strategic Objectives
Strategic Outcome-Oriented Goals
Strategic Objectives
Programmes
Increase the tourism sector’s contribution to inclusive economic growth
SO1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
Programme 3 & 4
SO2: To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
SO3: To enhance stakeholder and partnership collaboration, both local and international, to better deliver on SA Tourism’s mandate
Programme 2
SO4: To contribute to an improved tourist experience in line with the brand promise
Programme 5
Achieve operational efficiency and good governance
SO5: To position SA Tourism’s corporate brand to be recognised as a tourism and business events industry leader in market intelligence, insights and analytics
SO6: To achieve operational efficiencies in all activities, including human, marketing and other resources available to SA Tourism
Programme 1
Strategic Plan: pages 25-28

34. SA Tourism Programmes
Slide no 34

35. SA Tourism Programmes Programme 1 - Corporate Support
Programme 2 - Business Enablement
Programme 3 - Leisure Tourism Marketing
Programme 4 - Business Events
Programme 5 - Visitor Experience

36. Programme 1: Corporate Support
Purpose: To provide support services to the organisation, as well as ensure compliance with statutory requirements
Sub-programmes: Office of the CEO, Human Capital, Finance and Supply Chain Management
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO6: To achieve operational efficiencies in all activities, including human, marketing and other resources available to SA Tourism
To attract, energise, retain and develop people in a conducive work environment
Staff satisfaction score (baseline to be set in March 2017)
SA Tourism and its employees need to be inspired and energised, with leadership that nurtures talent within a transformed organisation in order to achieve the goal of the organisation.
Outcome 12: An efficient,
effective and development-oriented public service and
an empowered, fair and
inclusive citizenship
7.6% Staff turnover as at 31 March 2015
100% implementation of Work Skills Plan (WSP)
0.5% representation of employees with a disability
(new indicator)
Percentage implementation of the new organisational structure
Strategic Plan: pages 29 – 30

37. Programme 1: Corporate Support
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO6: To achieve operational efficiencies in all activities, including human, marketing and other resources available to SA Tourism
To maintain an unqualified report by the Auditor-General of South Africa (AGSA)
Unqualified audit as at 31 March 2016
Good governance practices will be ensured through the use of processes and policies that improve agility and operational efficiency.
Outcome 12: An efficient,
effective and development-oriented public service and
an empowered, fair and
inclusive citizenship
To promote inclusive tourism growth through preferential procurement
75% spend from B- BBEE -compliant suppliers
Compliance to preferential procurement.
Strategic Plan: pages 29 – 30

38. Programme 2: Business Enablement
Purpose: Strategy development and integration with business performance monitoring, governance and evaluation as well as provision of research insights and analytics.
Sub-programmes: Insights and Analytics, Performance Evaluation, Regulatory affairs, Stakeholder and Partnership management
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO3: To enhance stakeholder and partnership collaboration to better deliver on SA Tourism’s mandate
To engage stakeholders to drive long-term, sustainable performance, accountability and stakeholder value 
50% implementation of the Stakeholder Engagement Framework 
SA Tourism needs to partner and explore synergies with stakeholders to remove barriers and enhance the brand and traveller experience.
Outcome 4: Decent employment through inclusive economic growth
To ensure availability of reliable performance information for stakeholders
7 strategic reports approved:
2016/2021 Strategic Plan
2016/17 APP
2015/16 Annual Report
4 Quarterly reports (2015/16)
(new indicator)
Enhance stakeholder confidence SA Tourism by providing reliable performance information
Strategic Plan: page 31 – 34

39. Programme 2: Business Enablement
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO5: To position SA Tourism to be recognised as a tourism and business events industry leader in market intelligence, insights and analytics
To provide tourism market intelligence and collateral for internal and external stakeholders using Open Source 
7 market intelligence reports approved:
4 quarterly Tourism industry performance analysis reports (SA Tourism index)
1 annual 2015/16 Tourism industry performance analysis reports (SA Tourism index)
2 Global BrandTracker Reports (2015/16)
(new indicator)
In the current dynamic tourism environment, it is vital to ensure innovation and the interconnectedness of various tourism-related industry players through the generation and sharing of market-related information.
Outcome 4: Decent employment through inclusive economic growth
Strategic Plan: page 31 – 34

40. Programme 3: Leisure Tourism Marketing (Including Africa)
Purpose: Provision of destination tourism marketing for leisure tourists for both international and domestic markets
Sub-programmes: Tourism Operations which includes International Leisure Marketing, Africa Leisure Marketing, Domestic Leisure Marketing and Marketing Strategy
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
To implement an international marketing strategy that contributes to increased
International tourist arrivals (including international business delegates) from
million in 2016/17 to 14 million in 2021.
Total Tourist Foreign Direct Spend from R75.5 billion in 2016/17 to R116.0 billion in 2021.
improve geographic spread of international tourist arrivals; and
improve seasonality of international tourist arrivals
by December 2021 (based on estimated performance for 2016/17)
as at December 2016
An enhanced brand recognition will increase international tourist arrivals.
Outcome 11: Creating a better South Africa, and contributing to a better and safer Africa in a better world
R75.5 billion as at December 2016
Inclusive growth in the tourism economy will boost job creation, in line with the NDP, and increase the contribution of tourism to GDP.
Outcome 4: Decent employment through inclusive economic growth
13% geographic spread as at 31 December 2015
(new indicator)
(unaudited)
Implement collaborative marketing initiatives with provincial and city tourism agencies in order for each province to achieve a share in tourism growth.
1.36% seasonality as at 31 December 2015
Implement collaborative international marketing initiatives with trade to improve seasonality patterns for sustainability of the tourism sector.
Strategic Plan: pages 35 – 42

41. Programme 3: Leisure Tourism Marketing (Including Africa)
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
To implement a domestic tourism marketing strategy to increase
The number of total domestic trips from 24.3 million in 2016/17 to 27.3 million in 2021.
Number of holiday trips from 2.6 million in 2016/17 to 3.6 million in 2021.
Total Domestic Direct Spend from R26.5 billion in 2016/17 to R32.0 billion in 2021.
Domestic Holiday Revenue Spend from R7.1 billion in 2016/17 to R9.8 billion in 2021.
improve geographic spread of domestic tourists; and
improve seasonality of domestic tourists
by December 2021
24.3 million total domestic trips as at December 2016)
To implement a domestic tourism marketing strategy to build the culture of travel through access whilst retaining existing holiday-makers.
Outcome 4: Decent employment through inclusive economic growth
2.6 million holiday trips as at December 2016
TDDS: R26.5 billion as at December 2016
Inclusive growth in the tourism economy will boost job creation, in line with the NDP, and increase the contribution of tourism to GDP.
Domestic holiday revenue: R7.1 billion as at December 2016) (new indicator)
2% as at 31 December 2015
(new indicator)
(unaudited)
Implement collaborative marketing initiatives with provincial and city tourism agencies in order for each province to achieve a share in tourism growth.
24% as at 31 December 2015
Implement collaborative domestic marketing initiatives with trade to improve seasonality patterns for sustainability of the tourism sector.
Strategic Plan: pages 35– 42

42. Programme 3: Leisure Tourism Marketing (Including Africa)
Strategic Objective
Objective Statement
Baseline
Justification
Links
SO2: To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments 
To market a coherent destination South Africa brand to improve
brand positivity from 38% in 2015/16 to 40% and
brand awareness from 78% in 2015/16 to 80%
by February 2022
38% positivity as at 28 February 2016
Increased brand awareness and positivity improves intention-to-visit-South Africa ratios and arrivals in South Africa.
Outcome 4: Decent employment through inclusive economic growth
78% awareness as at 28 February 2016
Strategic Plan: pages 35 – 42

43. Programme 4: Business Events
Purpose: To market South Africa as a business events destination
Sub-programmes: South African National Convention Bureau, Strategic events and exhibitions
Strategic Objective
Objective statement
Baseline
Justification
Links
SO1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
To increase the number of
international meetings to South Africa from 140 in 2015/16 to 805 by December 2021;
international delegates hosted in South Africa from in 2015/16 (unaudited) to by December 2021; and
bids supported from 54 in 2016/17 to 323 by 31 March 2022
140 as at 31 March 2016
(unaudited)
South Africa should take advantage of the growing international business events industry to attract tourism revenue
Outcome 4: Decent employment through inclusive economic growth
as at 31 December 2015
54 as at 31 March 2016
Strategic Plan: pages 43 – 49

44. Programme 4: Business Events
Strategic Objective
Objective statement
Baseline
Justification
Links
SO1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
To create market access platforms for SA Tourism experiences locally and abroad
Indaba 2016
Meetings Africa 2017
(new indicator) (unaudited)
Grant market access for SA Tourism experiences in order to increase the number of international and domestic tourists
Outcome 4: Decent employment through inclusive economic growth
6 international tourism market access platforms that South Africa participated in 2015/16
To leverage off Provincial signature events to grow domestic tourism
10 Provincial signature events supported as at 31 March 2016
(new indicator)
Encourage domestic travel through events
Strategic Plan: pages 43 – 49

45. Programme 4: Business Events
Capacitating smaller towns and Metros:
The current SANCB business event financial support model contains a financial incentive for organisers to host conferences and incentives outside of the main metro’s.
This support model is being further revised to ensure that the criteria used takes into consideration the venue capacities and logistics around secondary cities and metros.
The role of the city and provincial convention bureaus is also to specifically target conferences and incentives to secondary metros and towns in their regions, and this is encouraged through regular engagements with the SANCB through the BECF (Business Events Co-Ordinating Forum).
At all Trade Show interactions with international clients, secondary metros and cities are promoted as alternatives to mainstream cities.

46. Programme 5: Tourist Experience
Purpose: To deliver a quality experience expected by international and domestic tourists through grading establishments, product capacity building and itinerary building
Sub-programmes: Global Product and Tourism Grading Council
Strategic objective
Objective statement
Baseline
Justification
Links
SO4: To contribute to an improved tourist experience in line with the brand promise
To increase the number of
quality graded establishments from in 2016/17 to 7 210
graded rooms contributing to the supply pool from in 2016/17 to
by 31 March 2022
3 851 graded establishments as at 31 December 2016
Delivery of the brand promise is a competency of industry therefore SA Tourism will continue to explore synergies with trade partners.
Outcome 4: Decent employment through inclusive economic growth
88 378 graded rooms as at 31 December 2016
(unaudited)
Strategic Plan: pages 50 – 52

47. Annual Performance Targets
Slide no 47

48. Annual Performance Targets 2016/17 and Beyond
Programme 1: Corporate Support
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Staff satisfaction score achieved -
3.70
3.80
3.90
4.0
Staff turnover maintained
7.6% 7%
Percentage vacancy rate maintained
Percentage implementation of Work Skills Plan
100%
Percentage representation of employees with a disability
0.5% 1%
1.5% 2%
Percentage Staff migration from old to new structure
100% staff migration from old to new structure
Unqualified report achieved
Unqualified audit report
APP: page 11 – 12

49. Annual Performance Targets 2016/17 and Beyond
Programme 2: Business Enablement
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Stakeholder satisfaction score achieved -
Set baseline for stakeholder satisfaction survey
Set percentage improvement on the baseline
Trade webinars conducted
10 Trade webinars conducted
Approved Tourism Growth Strategy
Approved market portfolio
Approved Tourism Growth Strategy
Number of strategic reports approved
7 strategic reports approved:
2016/2021 Strategic Plan
2016/17 APP
2014/15 Annual Report including Annual Financial Statements
4 Quarterly performance reports
2018/2022 Strategic Plan
2018/19 APP
2016/17 Annual Report including Annual Financial Statements
6 strategic reports approved:
2019/20 APP
2017/18 Annual Report including Annual Financial Statements
2020/21 APP
2018/19 Annual Report including Annual Financial Statements
APP: page 13 – 14

50. Annual Performance Targets 2016/17 and Beyond
Programme 2: Business Enablement
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Number of market intelligence reports produced -
7 market intelligence reports:
4 quarterly Tourism industry performance analysis reports (South African Tourism index)
1 annual 2015/16 Tourism industry performance analysis reports (South African Tourism index)
2 Global BrandTracker reports
APP: page 13 – 14

51. Annual Performance Targets 2016/17 and Beyond
Programme 3: Leisure Tourism Marketing
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Number of international tourist arrivals achieved⁵
9.0
(unaudited)
9.5
10.0
10.9
11.7
12.5
Total tourist foreign direct spend (TTFDS) (billion rand)
R63.9 (unaudited)
R64.2 (unaudited)
R68.1
R 75.5
R80.3
R86.5
R89.7
Geographic spread of international tourist arrivals (expressed as a percentage) -
13%
15%
Set percentage improvement on the baseline
Seasonality of international tourist arrivals
1.36%
1.35%
Brand positivity, expressed as a percentage (average of Feb and Nov wave) 
38%
(unaudited, tracked for 2015/16)
40%
Brand awareness expressed as a percentage (average of Feb and Nov wave)
79%
80%
78%
76%
APP: page 15 – 16

52. Annual Performance Targets 2016/17 and Beyond
Programme 3: Leisure Tourism Marketing
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Number of total domestic trips (millions)
25.2
28.0
24.5
(unaudited)
24.3
24.9
25.5
26.1
Number of domestic holiday trips achieved 2  2  2  2  3 
Total domestic direct spend (TDDS) (billion rand)
R24.3 (unaudited)
R26.8 (unaudited)
R23.6
R26.5
R24.8
R26.7
R28.5
Domestic holiday revenue (billion rand) -
R5.7
(unaudited, tracked for 2015/16)
R7.1
R7.6
R8.2
R8.7
Geographic spread of domestic tourists 2%
10%
Set percentage improvement on the baseline
Seasonality of domestic tourists
22.1%
24%
APP: page 15 – 16

53. Annual Performance Targets 2016/17 and Beyond
Programme 4: Business Events
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Number of business events hosted in South Africa -
124¹
(unaudited – new KPI)
140
(unaudited)
138
145
153
161
Number of international delegates hosted in South Africa
94 893
69 955
79 366
77 567
81 678
86 006
90 564
Number of bids supported for international and regional business events 52 53 54 58 61 65
Number of market access platforms that South African Tourism manages
2 Market access platforms:
2015 Tourism Indaba
2016 Meetings Africa 2
Tourism Indaba
Meetings Africa
Number of international tourism market access platforms where South Africa participates 6
Number of Provincial signature events supported 10 11 12 13
APP: pages 17 – 19

54. Annual Performance Targets 2016/17 and Beyond
Programme 5: Tourist Experience
Key Performance Indicator
Audited Outcome/Actual Performance
Estimated Performance
Forecasts
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Number of graded accommodation establishments achieved
5 587
5 369
5 230
5 650
5 932
6 229
6 540
Number of graded rooms achieved
110 240
(Tracked but unaudited)
114 429
114 281
122 686
(New KPI)
128 821
APP: page 20

55. Quarterly Targets
Slide no 55

56. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 1: Corporate Support
Staff satisfaction score
Annual
3.80  -
3.80
Staff turnover 7%
Percentage Vacancy rate maintained
Percentage implementation of Work Skills Plan
100%
Percentage representation of employees with a disability 1%
Percentage staff migration from old to new structure
30%
50%
70%

57. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 1: Corporate Support
Unqualified audit
Annual
Unqualified Audit
Submission of
First Draft Annual Report
to Auditor General, National Treasury and NDT
Monitoring compliance with PFMA
Percentage of spend from B- BBEE compliant suppliers
75%
Programme 2: Business Enablement
Stakeholder satisfaction score
Set percentage improvement on the baseline -
Set percentage improvement on the baseline
Trade webinars conducted
Monthly
10 Trade webinars conducted
3 Trade webinars conducted
2 Trade webinars conducted

58. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 2: Business Enablement
Approved Tourism Growth Strategy
Annual
Draft Tourism Growth Strategy
Implementation of 5-in-5 Framework and MIF
Approved Tourism Growth Strategy
Implement Tourism Growth Strategy
Number of strategic reports approved
7 strategic reports approved:
2018/2022 Strategic Plan
2018/19 APP
2016/17 Annual Report including Annual Financial Statements
4 Quarterly performance reports
First Draft 2016/17 Annual Report including Annual Financial Statements
Quarter 4 performance report
First draft 2018/2022 Strategic Plan
First draft 2018/19 APP
Final 2016/17 Annual Report including Annual Financial Statements
Quarter 1 performance report
Second Draft 2018/2022 Strategic Plan
Second Draft 2018/19 APP
Quarter 2 performance report
Final 2018/2022 Strategic Plan
Final 2018/19 APP
Quarter 3 performance report

59. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 2: Business Enablement
Number of market intelligence reports produced
Quarterly
7 market intelligence reports:
4 quarterly Tourism industry performance analysis reports (South African Tourism index)
1 annual 2015/16 Tourism industry performance analysis reports (South African Tourism index)
2 Global BrandTracker reports
2016/17 Quarter 4 Tourism industry performanc e analysis report delivered
2017/18 Quarter 1 Tourism industry performanc e analysis report delivered
2017/18 Quarter 2 Tourism industry performance analysis report delivered
1 Global BrandTracker report (November wave)
2017/18 Quarter 3 Tourism industry performance analysis report delivered
1 Global BrandTracker report (February wave)

60. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 3: Leisure Tourism Marketing
Number of international tourist arrivals achieved
Quarterly
10.9
2.7
2.9
2.5
2.8
TTFDS (in billions)
R80.3
R19.6
R19.3
R21.8
Percentage Geographic spread of international tourist arrivals achieved
Annual
Set percentage improvement on the baseline
Develop methodology for target setting
Internal stakeholder engagement and approval
External stakeholder engagement and approval
Percentage Seasonality of international tourist arrivals achieved
Percentage brand positivity achieved
40% -
Percentage brand awareness achieved
80%

61. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 3: Leisure Tourism Marketing
Number of total domestic trips (millions)
Quarterly
24.9
6.1
4.9
4.5
9.4
Number of domestic holiday trips achieved 2  1 
TDDS (in billions)
R24.8
R6.1
R4.9
R4.5
R9.3
Domestic holiday revenue (in billions)
R7.6
R1.5
R1.7
R2.1
R2.3
Geographic spread of domestic tourists
Annual
Set percentage improvement on the baseline
Develop methodology for target setting
Internal stakeholder engagement and approval
External stakeholder engagement and approval
Seasonality of domestic tourists
Develop methodology for target setting

62. Quarterly Targets (2017/18 Annual Performance)
Programme
Key Performance Indicator
Reporting Period
Annual Target 2017/18
Quarterly Target 2017/18
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Programme 4: Business Events
Number of business events hosted in South Africa
Annual
145 -
Number of international delegates hosted in South Africa
81 678
Number of bids supported for international and regional business events
Quarterly 58 16 14
Programme 5: Brand/ Visitor Experience
Number of graded establishments
5 932
1 376
1 445
1 517
1 594
Number of graded rooms
29 888
31 382
32 952
34 599

63. Financial Information
Slide no 63

64. Overview of the 2017/18 budget and MTEF estimates
This section outlines South African Tourism’s Annual Performance Plan and Budget over the Medium Term Expenditure Framework ( MTEF) period. This section includes the following:
Overview of revenue and expenditure estimates;
Expenditure as it relates to strategic outcome-oriented goals and
Budget breakdown per programme.
Slide no 64
APP: page 6

65. Revenue and Expenditure Estimates
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
ENE Estimate
Adjustment
Approved
Rand (thousand)
Audited
(R’000)
Budget
(R’000) 
Government grant
TOMSA levies
99 450
Indaba and Meetings Africa
59 438
65 134
81 547
54 506
-3 183
51 323
63 391
67 131
70 890
Grading fees
1 520
2 561
4 035
20 098
21 344
22 603
23 869
Sundry revenue
57 610
28 766
10 768
22 934
20 000
Total 1 
APP: page 7

66. 2017/ /20 budget increase
Increase in government grant R 90 million earmarked for subvention fund.
R 174 million baseline increase for Tourism execution.
Approximately R 75 million TOMSA levy increase due to higher income amount allocation confirmed by TOMSA. The total TOMSA allocation includes 15% collaborative fund allocation.
The increase in grading fees is aligned to projected targets.
INDABA and Meetings Africa increase due to consolidation of platforms.
Employee costs are 14% of the total budget
Operating costs 12% of total budget
Market Investment 72% of total budget
Slide no 66

67. Breakdown of Budget per Programme
Name of the Programme
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
ENE Estimate
Adjustment
Approved
Audited
(R’000)
Budget
Corporate Support
98 695
93 078
95 539  -
99 361
Business Enablement
43 846
48 038
63 138
84 194
87 561
92 727
97 920
Leisure Tourism Marketing -
Business Events
51 963
66 967
57 713
84 103
Tourist Experience
50 324
56 529
45 186
59 751
62 141
65 807
69 492
Total 1  1 
Slide no 67
APP: page 29

68. Organisational Risk Management
Slide no 68

69. Organisational Risk Management
At the time of finalising this Strategic Plan, SA Tourism was embarking on a risk assessment to identify risks that might have a negative impact on the achievement of its strategic objectives. This process was concluded by the end of March The top three risks identified are as follows:
Risk 1: Inability to deliver on all the elements within the tourism value chain
Contributing Factors: Immaturity of local market to deal with new investment market needs;
Lack of feedback management process;
Lack of stakeholder/customer services feedback line.
Impact: Unable to ascertain stakeholder needs and input.
Mitigating Strategies: Stakeholder Engagement Framework;
Welcome Campaign;
Brand Tracker.
Strategic Plan: page 53-56

70. Organisational Risk Management cont.
Risk 2: Negative meta perceptions and barriers of the South African Brand
Contributing Factors: Lack of unified communication strategy to improve South Africa's reputation as a destination;
Star grading stars;
Impact: Ineffective barrier management
Mitigating Strategies: Create mechanism to track compliance of un-subscribed entities
Planned collaboration with Brand SA in respect of reputation management
Visitor Experience Strategy underpinned by Quality Assurance
Strategic Plan: page 53-56

71. Organisational Risk Management cont.
Risk 3: Currency Loss and Increased costs of doing business abroad
Contributing Factors: Fluctuations in currency
Impact: Ineffective organizational marketing strategy;
Poor management of costs in country;
Political environment.
Mitigating Strategies: Variance Reporting
Management Reporting
Advance release of marketing budget to country office
SA Tourism will continue to monitor emerging risks to ensure delivery on its mandate.
Strategic Plan: page 58-60

72. Abbreviations and Acronyms
AGSA – Auditor-General of South Africa
APP – Annual Performance Plan
B&B – Bed and Breakfast
CEO – Chief Executive Officer
CFO – Chief Financial Officer
COO – Chief Operating Officer
CPI – Consumer Price Index
CPIX – Consumer Price Index (excluding mortgage costs)
CQAO – Chief Quality Assurance Officer
DG – Director-General of the NDT
DIRCO – Department of International Relations and Co-operation
DTGS – Domestic Tourism Growth Strategy
ENE – Estimates of National Expenditure
GDP – Gross Domestic Product
ICCA – International Congress and Convention Association
MICE – Meetings, Incentives, Conferences and Exhibitions
MIF – Marketing Investment Framework
Strategic Plan: pages 59

73. Abbreviations and Acronyms
MTEF – Medium-Term Expenditure Framework
NDP – National Development Plan
NDT – National Department of Tourism
NT – National Treasury
NTSS – National Tourism Sector Strategy
PFMA – Public Finance Management Act, 1999 (Act No. 1 of 1999)
ROI – Return on Investment
SA Tourism/SAT – South African Tourism
SANCB – South African National Convention Bureau
TDDS – Total Domestic Direct Spend
TGCSA – Tourism Grading Council of South Africa
TGS – Tourism Growth Strategy
TOMSA – Tourism Marketing South Africa
TTFDS – Total Tourist Foreign Direct Spend
UNWTO – United Nations World Tourism Organisation
VFR – Visiting Friends and Relatives
Strategic Plan: pages 59

74. Thank You
Slide no 74