1. Presentation to Portfolio Committee SA Tourism Annual Performance Plan 2018 – 19
25 April 2018

2. CONTENTS Part A: Strategic Overview Setting scene Enviro scan
Part B: Programme and Sub-Programme Plans
Annual and Quarterly Targets
Programme 1: Corporate Support……………………………………………. 23
Programme 2: Business Enablement………………………………………… 24
Programme 3: Leisure Tourism Marketing………………………………. 25 – 26
Programme 4: Business Events…………………………………………………. 27
Programme 5: Tourist Experience……………………………………………. 28
Finance
Revenue estimates
Budget per Programme
Budget per Economic Classification

3. Part A: Strategic Overview
Setting scene

4. Setting the scene
President Cyril Ramaphosa (SONA): “an area (Tourism) which provides the country with incredible opportunities to, quite literally, shine”.
The ask: to more than double the 700K people currently employed in tourism
Enhance support for destination marketing in key tourism markets
Take further measures to remove reduce regulatory barriers
Develop emerging tourism businesses 4

5. Annual Performance Plan: page 6
South African Tourism has set a strategic goal of increasing the base of tourism by five million arrivals / trips during This will ensure synergised efforts across the tourism sector towards contributing to inclusive economic growth
Goal
Increase tourism sector’s contribution to inclusive growth by increasing the base of tourism by five million arrivals /trips during
Strategic Objective 1:
To contribute to inclusive economic growth by increasing the number of international and domestic tourists
Strategic objective 2:
To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
Strategic Objective 3:
To enhance stakeholder and partnership collaboration, both local and international, to improve delivery on South African Tourism’s mandate
Strategic Objective 4:
To contribute to an improved tourist experience in line with the brand promise
Strategic Objective 5:
To position South African Tourism’s corporate brand to be recognised as a tourism and business events industry leader in market intelligence, insights and analytics
Strategic Objective 6:
To achieve operational efficiencies in all activities, including human, marketing and other resources available to South African Tourism
Strategic Objectives
Annual Performance Plan: page 6

6. 5-in-5 National Tourism Target Drives Resource Allocation
The 5-in-5 goal is national goal which is jointly owned by SA Tourism and the Provincial Tourism Authorities. This drives strategic alignment, proportionate resource allocation and coordination of marketing activity
Source Markets
5-in-5 National Tourism Target Drives Resource Allocation
Distribution Markets
Success Factors:
Making 5-in-5 come alive and relevant in the provinces. APPs and Strategies need to link up
SAT and PTA become jointly accountable for the targets
Effort, resources and funding deployed according to targets e.g. hostings, APPs etc.
Elevate targets into provincial performance Grading targets included
PTA CVP:
Strategy formulation and market execution
Global and local market support and alignment
Ownership of local activities and activations + local capacity and tourist activities
India
Eastern Cape
SAT
Australia
Western Cape
Netherlands
Current
10m + 5m in
5yrs
Northern Cape
United Kingdom
Gauteng
Germany
North West
United States
Limpopo
China
Mpumalanga
Africa
Free State
Other
KwaZulu-Natal
7% of global target (eg)
Key source markets

7. Part A: Strategic Overview
Enviroscan

8. Preliminary domestic tourism results for 2017
Performance of Year one of 5-in-5: we have achieved our target for domestic holiday trips, but missed our target for international tourist arrivals
Estimated Domestic Holiday Trips 2017: 2.9Mn
International Tourist Arrivals 2017: 10.3Mn
Preliminary domestic tourism results for 2017
2.9Mn
10.9Mn
Domestic holiday trips increased in 2017 by approximately 12% which resulted in the domestic holiday target being achieved.
Holiday trips in 2017 were higher than 2016 levels in nine of the twelve months, declining in May, August and December. About 13% of total domestic holiday trips were taken in December 2017, a much smaller share compared to December 2016.
Despite the increase in domestic holiday trips, total domestic trips amounted to 17.1 million trips. This is a decrease of approximately 29% over 2016, and is driven by an estimated 41% decline in VFR trips.
The consumer in SA faced strong head winds in 2017 with a recession early in the year and unemployment remaining high. These conditions had a far reaching effect on consumers and domestic tourism in particular the VFR segment.
International tourist arrivals to South grew by 2.4% in 2017 to reach 10.3Mn. This means that we have achieved 94% of our annual target of 10.9Mn for 2017 (which is roughly behind the 5-in-5 target for year one).
Overall, we saw growth out of Europe, Americas, Australasia and Africa, while we saw declines out of Asia.
Air Markets: have grown by 5.9% to record 3.1Mn international tourist arrivals.
Land Markets: The land markets which are our biggest source market have grown by just 1.0% to record 7.2Mn international arrivals. Performance in this region improved after a poor start to the year.
Global arrivals grew by 7% in 2017 (UNTWO) and South Africa is growing behind both the globe and behind the rest of Sub-Saharan markets.
Sub-Saharan Africa grew 5% which is slower compared to 8.9% growth in 2016.
1.45Mn
5.45Mn

9. International tourist arrivals grew by 2. 4% in 2017 to reach 10
International tourist arrivals grew by 2.4% in 2017 to reach 10.3 million, approximately 600k short of the target for the year
% change 16-17
12.6%
3.2%
5.8%
4.2%
6.6%
-6.8%
12.8%
2.4%
Source: Statssa Tourism & Migration release; SAT analysis

10. Central & South America
Growth was recorded from most regions with the exception of Asia and the Indian Ocean Islands
2017
Europe
1,660,848 arrivals
7.6% up from 2016
CAGR15 to %
North America
437,903 arrivals
7.8% up from 2016
CAGR15 to %
Middle East
55,906 arrivals
4.4% up from 2016
CAGR15 to %
Asia
317,181 arrivals
-3.3% down from 2016
CAGR15 to %
Central & South America
107,582 arrivals
59.3% up from 2016
CAGR15 to %
Australasia
133,713 arrivals
1.4% up from 2016
CAGR15 to %
AFRICA
INTERNATIONAL
7,559,342 arrivals
0.8% up from 2016
CAGR15 to %
Indian Ocean Islands
10,285,197 arrivals
2.4% up from 2016
CAGR15 to %
27,748 arrivals
-4.4% down from 2016
CAGR15 to %
Source: Statssa Tourism & Migration release; SAT analysis

11. Too expensive to get to there
The major barriers identified by research conducted by SA Tourism are safety concerns and “too expensive to get there”
Too expensive to get to there
Safety & Security
Barriers
Airlift
Visas
Unabridged birth certificate
Visa processing
Working on route development with relevant provinces, i.e. Western Cape, KZN and Gauteng
The Minister and the Department of Tourism has convened a task team that includes the Department, SA Tourism and the industry to develop a workstream that will effectively deal with tourist safety
Strategic Projects
According to the WTTC report, “The Impact of Visa Facilitation”, ASEAN* markets shows that wavering visas in this region increases the competitiveness score of the destination country and has an impact of increasing tourist arrivals from these markets by between 8.5% %.
In South Africa, the removal of visas for Russians increased travel to SA by at least 51% in 2017.
Introducing visas in New Zealand decreased travel by at least 30%.
January 2018 figures shows a continuing upward trend in Russia while New Zealand continues to decline.
Source: SAT BrandTracker surveys; “The Impact of Visa Facilitation” - WTTC

12. Preliminary results for 2017
Total domestic trips declined by 29% in 2017 while domestic holiday trips increased by 12% in the same period
Preliminary results for 2017
Source: SA Tourism Domestic Surveys

13. Revenue from domestic tourism declined at a slower rate of 16% in the same period. The increase in average spend per trip helped stem the losses in revenue caused by the significant decrease in total trips
Preliminary results for 2017
TOTAL DOMESTIC TRIPS (MM)
TOTAL DOMESTIC REVENUE (R)
24.3
2016
17.2
2017
26.5 Bn
2016
22.1 Bn
2017
-29.3%
-16.6%
DOMESTIC MARKET PERFORMANCE
DOMESTIC MARKET SPEND
Domestic tourism declined due to significant declines in VFR trips while the number of holiday trips increased.
Total revenue declined by 16.6% YoY in There was an increase in average spend per trip and spend per day.
~16%
Share of Holiday
Trips in 2017
~12%
2017 YoY Increase
in Holiday Trips
~3.4 nights
Average Length of Stay for Holiday Tourists
2017 SPENDING PATTERNS (R)
6.8 Bn
Total Domestic Holiday Spend
1,286.2
Average Spend
per Trip
297.0
Average Spend
per Day
TOP 3 DESTINATION PROVINCES (2017)
Limpopo
Gauteng
KwaZulu Natal
Famous for beautiful and contrasting landscapes
Economic and business centre of South Africa
Popular for sub-tropical climate, beaches and adventure activities
YoY Change
-4%
+18%
+16%
Source: Domestic Survey

14. The investment in the marketing campaigns to stimulate holiday travel seems to have yielded positive results
Note: 1The budgets include consumer marketing budget, trade budget and other budgets (towards provinces, etc.); The information for 2017 is based on preliminary results
Source: Domestic Tourism Analysis; SA Domestic Survey, 2013–2017; Grail Research Analysis

15. Strategic projects identified to improve Domestic Tourism performance
Consumer Behaviour:
There is a need to understand domestic tourism consumer behaviour in more detail. The following two areas of investigation are of specific importance:
It is important to understand the role that VFR visitors play in conversion to holiday maker and whether it is possible to influence this group to add holiday items to their VFR itineraries (Concept of VFR+). The results of this analysis will also inform the stakeholder messaging below.
In addition, the marketing challenge in SA is as much (if not more) about competing for share of wallet with other expenditure items than it is about competing with other destinations. Understanding holiday expenditure as a share of wallet item is therefore essential.
This will likely require a deep-dive on existing data sources, but also exploration of new data sources. Bank card issuing data in particular offers interesting opportunities to understand VFR and share of wallet dynamics in a new way. Industry reporting of bednights may also offer opportunities and should be explored further.
Targets and Measurement:
There is a need to pull the campaign-level data (e.g. clicks, impressions, tweets, PR exposure) into a more coherent picture of the sales funnel and to overlay this with spend in each channel/campaign (e.g. create cost per click and other metrics to enable comparability).
This baseline can then be used to optimise campaign activity based on a clearer sense of return on investment.
Stakeholder Messaging:
There is a need to create clarity amongst the stakeholder/shareholder group over what is achievable and what constitutes delivery against mandate.
While total trips are included as a target, the hub’s primary goal is to drive holiday growth. This should therefore be the indicator of delivery against mandate. VFR are a strategic customer segment that will be messaged to take more holidays and to add on holiday items to VFR itineraries (VFR+)

16. There has been growth in the number of business events and the number of international delegates hosted between 2014 and 2017

17. Over 2014–2016, typically, meetings and conventions accounted for over 90% of events in most of the provinces
Source: SANCB Report on South African International Meetings

18. There has been a decrease in the number of graded establishments but graded rooms increased since 2015
-1.7%
1.8%
AirBnB is growing and this is a threat to increasing the number of graded establishments
The process of grading is cumbersome and properties do not see the value in grading and the number of graded establishments are declining
The use of the star-grading illegally prevails and we are not able to police this
Tourists say grading is important as it gives them an idea of what to expect. Tourists also consider reviews from social networking sites as important in the decision-making process
While Provinces say that the only list graded establishments, there is significant potential to increase this through greater collaboration with them
TGCSA is working with National Treasury on a project which will see the NT Central Supplier Database updated with Graded Establishments for use of State Officials.

19. Graded establishments by type of accommodation across the provinces as at 31 March 2018

20. Graded rooms by type of accommodation across the provinces as at 31 March 2018

21. Update on implementation of SA Tourism’s Transformation Framework
Employment Equity
Marketing Activities
Key Objective: Build an inclusive, professional skills base with the capacity to lead the sector. SA Tourism must come to be viewed as a ‘Launchpad’ destination for young talent in the tourism and marketing sectors as well as being seen as a attractive destination for experienced professionals.
Key Objective: Ensure that all South African Tourism marketing tools and platforms are a true reflection of South Africa’s diverse cultures and reach a wide range of South Africans in all provinces. Recognise and reward businesses and entrepreneurs that promote transformation.
Progress update:
Implementation of the plan to improve employment equity on track.
Progress update:
Usage of 100% Black Owned talent: Bheki Campaign – Black director, casting agency, stylist etc
#Wedowatertourism: The Media Tacticians 100% Black owned
Activations for all SA Tourism events Black Owned companies
Enterprise and Supplier Development
Market and Entrepreneurial Empowerment
Key Objective: To institutionalise supply chain inclusion practices that adopt a value chain approach to supplier identification, development and inclusion.
Key Objective: Provide emerging businesses and entrepreneurs with access to promotional platforms and developmental support and information and assist them in utilisation of these opportunities to develop the pipeline of emerging businesses through a coordinated support programmes and befitting policy.
Progress update:
Supply chain policies institutionalised in line with the Preferential Procurement Policy Framework Act (PPPFA) and Broad Based Black Economic Empowerment Act (B-BBEE). On track to meet set B-BBEE procurement scores
Progress update:
Hidden Gems programme implemented in 2017.
SME participation at SAT trade platforms and roadshows implemented

22. Part B: Programme and Sub-Programme Plans
Annual and Quarterly Targets 2018/19
Programme 1: Corporate Support
Programme 2: Business Enablement
Programme 3: Leisure Tourism Marketing
Programme 4: Business Events
Programme 5: Tourist Experience

23. A summary of the SA Tourism KPIs per programme as per the APP 2018/19 is illustrated below
STRATEGIC OBJECTIVE
KPI
1. Corporate Support
To achieve operational efficiencies in all activities, including human, marketing and other resources available to South African Tourism
Staff satisfaction score achieved
Percentage vacancy rate maintained
Compliance with Employment Equity Act
Unqualified audit report achieved
B-BBEE-level achieved
2. Business Enablement
To enhance stakeholder and partnership collaboration to better deliver on South African Tourism’s mandate
To position South African Tourism to be recognised as a tourism and business events industry leader in market intelligence, insights and analytics
Stakeholder satisfaction score achieved
3. Leisure Tourism Marketing
To contribute to inclusive economic growth by increasing the number of international and domestic tourists
To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
Tourist arrivals - international
Tourist trips - domestic
Tourist revenue – international
Tourist revenue - domestic
Geographic spread
Improve seasonality – international
Improve seasonality - domestic
Brand awareness
Brand positivity
SME attendance at SA Tourism Tradeshow Platforms
SME participation for all SA Tourism hosting activities
4. Business Events
Number of business events hosted
Number of international delegates hosted
Number of bids supported
Africa’s Travel Indaba revenue
Meetings Africa revenue
5. Tourist Experience
To contribute to an improved tourist experience in line with the brand promise
Number of graded accommodation establishments
Number of graded rooms
Revenue collected through Grading

24. Programme 1: Corporate Support
STRATEGIC OBJECTIVE 6: To achieve operational efficiencies in all activities, including human, marketing and other resources available to South African Tourism
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Staff satisfaction score achieved
Annual
3.4 -
Percentage vacancy rate maintained 7%
Compliance with Employment Equity Act
Compliance with Employment Equity Act
Unqualified report achieved
Unqualified Audit
Submission of AFS, Performance Information Report and
Corporate Governance Report for 2015/16 to AGSA, National Treasury and NDT
Monitoring compliance with PFMA
B-BBEE-level achieved
Level 4
Annual Performance Plan: page 30

25. Programme 2: Business enablement
STRATEGIC OBJECTIVE 3: To enhance stakeholder and partnership collaboration to better deliver on South African Tourism’s mandate
STRATEGIC OBJECTIVE 5: To position South African Tourism to be recognised as a tourism and business events industry leader in market intelligence, insights and analytics
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Stakeholder satisfaction score achieved
Annual
4.1 -
Annual Performance Plan: page 30

26. Programme 3: Leisure Tourism Marketing
STRATEGIC OBJECTIVE 1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
STRATEGIC OBJECTIVE 2: To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Number of international tourist arrivals (millions)*
Quarterly – financial year
11.2
2.5
2.7
2.9
3.1
Quarterly – calendar year
10.9
2.8
Total tourist foreign direct spend (TTFDS) (billion rand) *
R81.3
R18.1
R19.4
R21.3
R22.5
Quarterly – calendar year
R79.6
R20.8
Percentage geographic spread of international tourist arrivals achieved
Annual
19% -
Seasonality index of international tourist arrivals
1.35%
Percentage brand positivity achieved (average of Feb and Nov wave)
39%
Percentage brand awareness achieved (average of Feb and Nov wave)
78%
*Note: these indicators are reported on a financial year, but tracked on a calendar year
Annual Performance Plan: page 31

27. Programme 3: Leisure Tourism Marketing
STRATEGIC OBJECTIVE 1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
STRATEGIC OBJECTIVE 2: To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Number of total domestic trips (millions) achieved*
Quarterly – financial year
25.4
5.3
8.5
5.2
6.4
Quarterly – calendar year
25.5
6.5
Number of domestic holiday trips (millions) achieved*
3.1
0.4
1.0
1.1
0.6
3.2
0.7
Total domestic direct spend1 (TDDS) (billion rand)*
R26.7
R5.7
R9.0
R5.6
R6.4
R27.1
R6.8
Domestic holiday revenue (billion rand)*
R8.2
R0.9
R3.0
R2.6
R1.7
R8.3
R1.8
Geographic spread of domestic tourists
Annual
12% -
Seasonality index of domestic tourists
20%
*Note: these indicators are reported on a financial year, but tracked on a calendar year
Annual Performance Plan: page 32

28. Programme 3: Leisure Tourism Marketing
STRATEGIC OBJECTIVE 1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
STRATEGIC OBJECTIVE 2: To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
SME attendance at SA Tourism Tradeshow Platforms
Quarterly
182
127 - 26 29
SME participation for all SA Tourism hosting activities 25 8 4 7 6
Annual Performance Plan: page 32

29. Programme 4: Business Events
STRATEGIC OBJECTIVE 1: To contribute to inclusive economic growth by increasing the number of international and domestic tourists
STRATEGIC OBJECTIVE 2: To contribute to an enhanced, recognised, appealing, resilient and competitive tourism and business events brand for South Africa across the target markets and segments
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Number of business events hosted in South Africa
Annual
153 -
Number of international delegates hosted in South Africa
86 006
86 006
Number of bids supported for international and regional business events
Quarterly
105 26 24 28 27
Indaba and Meetings Africa revenue (million rand)
R67.0
Annual Performance Plan: page 33

30. Programme 5: Tourist experience
STRATEGIC OBJECTIVE 4: To contribute to an improved tourist experience in line with the brand promise
Key Performance Indicator
Reporting Period
Annual Target 2018/19
Quarterly Target 2018/19
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Number of graded accommodation establishments achieved
Quarterly
6 229
1 445
1 517
1 593
1 674
Number of graded rooms achieved
31 383
32 952
34 600
36 327
Grading revenue collected (million rand)
Annual
R22.6 -
Annual Performance Plan: page 33

31. Finance

33. Revenue estimates Revenue 2014/15 2015/16 2016/17 2017/18 2018/19
2019/20
2020/21
ENE Estimate
Adjustment
Approved
Rand (thousand)
Audited
(R’000)
Budget
Estimate* 1
Government grant - 2
TOMSA levies 3
Indaba and Meetings Africa*
65 134
81 547
55 431
63 391
57 000
60 192
63 503 4
Grading fees
17 843
18 394
20 569
21,344
21 344
22 561
23 824
25 134 5
Sundry revenue
28 766
12 452
56 123
20,000
99 000
21 140
22 324
23 552
Total 1 
Annual Performance Plan: page 19

34. Breakdown of budget per programme
Expenditure 
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
ENE Estimate
Adjustment
Approved
Rand (thousand)
Audited
(R’000)
Budget
Estimate* 1
Corporate Support
98 695
93 078 2
Business Enablement
48 038
63 138
99 907
81 295
85 929
90 741
95 731 3
Leisure Tourism Marketing
86 485 4
Business Events
66 967
57 713 5
Visitor Experience
56 529
45 186
54 035
64 106
12 515
76 621
65 807
69 492
73 314
Total
99 000 1  1 
Annual Performance Plan: page 34

35. EXPENDITURE BY ECONOMIC CLASSIFICATION

36. Annual Performance Plan: page 35
The exchange rates below are the rates used by SA Tourism to support this APP
Financial year
USD  
EUR  
GBP  
JPY  
AUD  
2018/19         
9.0069  
9.8269  
2019/20         
8.4273     
2020/21
Annual Performance Plan: page 35

37. Thank you