0. Briefing to the Select Committee by South African Tourism on the Strategic 2015/16 to 2019/2020 Plan and Annual Performance Plan 2015/ May 2015

1. Contents Vision, Mandate and Governance
Strategic Objectives and Performance Measurements
SA Tourism Budget
SA Tourism Strategy
National Convention Bureau
Leisure Tourism – Global, Africa and Domestic Tourism
Tourism Grading Council
Alignment with Key Stakeholders
SA Tourism HR Strategy
Concluding Remarks

2. 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;
Continuously align efforts to support tourism growth;
Ensure the efficient utilisation of resources to deliver the tourism strategy.
For South Africa (SA) to be one of the most preferred tourist destinations in the world and to maximise the economic potential of the tourism industry for our country and its people.
Slide no. 2

3. Strategic outcome orientated goal
SA Tourism’s Expanded Mandate: Leisure, Business Events, Meetings and Quality Assurance
National Tourism Sector Strategy outcome which SA Tourism will need to deliver against
Significantly growing a sustainable tourism economy in South Africa, with domestic, regional and international components, based on innovation, service excellence, meaningful participation and partnerships.
Strategic outcome orientated goal
Increased contribution of the tourism sector to inclusive and sustainable economic growth
Convince consumers/ clients that SA can be trusted to deliver memorable experiences & successful business events
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/ decision centres to deliver volume and value
Strategies to deliver expected outcomes
Set up regional hubs to increase market penetration
Slide no. 3
Page 10 – Strategic Plan
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4. Alignment of SA Tourism Planning Approach
NDP and Growth Path
Clear Line of Sight
15 years
MTSF, NTSS Priorities and Domestic Tourism Growth Strategy
5 years
SA Tourism’s Strategic Plan
5 years
Annual Performance Plan (APP)
1 year
Divisional Plans/Business Plans
1 year
1 year
Individual Performance Contract
Page 11 – Strategic Plan
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5. Strategic Objectives
Page : Strategic Plan

6. Strategic Outcome Oriented Goals
Increased contribution of the tourism sector to inclusive and sustainable economic growth
Goal Statement
Implement marketing strategies that build brand awareness of South Africa as a tourist destination to ensure that we attract international and domestic tourists and business events delegates, that will increase tourism's revenue contribution to the economy from R billion in 2015 to R134.3 billion by 2020.
Strategic Objective
Objective Statement
Baseline: 2013/14
Justification
Links 1
Contribute to the growth of tourist arrivals to South Africa.
Implement an international marketing strategy to contribute tourist arrivals from 9.6 million in 2013/14 to 13.7 million by 2020.
9.6 million tourist arrivals in 2013
Increased tourist arrivals to the country translates to growth in revenue to the economy.
Outcome11 2
Contribute to the growth of domestic tourism in South Africa.
Implement a domestic marketing strategy to: Contribute the number of holiday trips from 3.1 million in 2013/14 to 4.1 million by 2020.
Holiday trips: 3.1 million
By creating a culture of travel amongst South Africans, domestic tourism revenue will contribute to the economy.
Outcome 4
Page – Strategic Plan
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7. Strategic Outcome Oriented Goals
Increased contribution of the tourism sector to inclusive and sustainable economic growth
Goal Statement
Implement marketing strategies that build brand awareness of South Africa as a tourist destination to ensure that we attract international and domestic tourists and business events delegates, that will increase tourism's revenue contribution to the economy from R billion in 2015 to R134.3 billion by 2020.
Strategic Objective
Objective Statement
Baseline: 2013/14
Justification
Links 3
Achieve tourism revenue
(TTFDS + TDDS)
Note: Total Tourist Foreign Direct Spend is TTFDS and Total Domestic Direct Spend is TDDS.
To market South Africa in a manner that we attract the tourists that will ensure growth in revenue contribution from R94.6 billion in 2013/14 to R134.3 billion by 2020.
R94.6 billion comprising of TTFDS = R70.3 billion (new indicator that has not been audited) and TDDS: R24.3 billion.
This objective will ensure that we target growth in tourist arrivals (volume) as well as growth in spend (value) in South Africa to ensure that tourism's revenue contribution to the economy increases.
Outcome 4
Page – Strategic Plan
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8. Strategic Outcome Oriented Goals
Increased contribution of the tourism sector to inclusive and sustainable economic growth
Goal Statement
Implement marketing strategies that build brand awareness of South Africa as a tourist destination to ensure that we attract international and domestic tourists and business events delegates, that will increase tourism's revenue contribution to the economy from R billion in 2015 to R134.3 billion by 2020.
Strategic Objective
Objective Statement
Baseline: 2013/14
Justification
Links 4
Maintain brand awareness of South Africa as a tourist destination.
To improve brand awareness from 79% in 2013/14 to 86% by 2020.
79%
Increased brand awareness results in higher tourist arrivals and spend thus contributing to economic growth.
Outcome 4 5
Provide quality assurance for tourism products.
Implement the tourism grading system to increase graded establishments from
in 2013/14 to by 2020.
5 587
This objective will result in the marketing through word-of-mouth of the quality experience offered in South Africa.
Page – Strategic Plan
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9. Strategic Outcome Oriented Goals
Increased contribution of the tourism sector to inclusive and sustainable economic growth
Goal Statement
Implement marketing strategies that build brand awareness of South Africa as a tourist destination to ensure that we attract international and domestic tourists and business events delegates, that will increase tourism's revenue contribution to the economy from R billion in 2015 to R134.3 billion by 2020.
Strategic Objective
Objective Statement
Baseline: 2013/14
Justification
Links 6
Increase the number of business events in South Africa.
Market South Africa as a meetings destination and provide support for bids to contribute to the number of business events from 118 in 2013/14 to 134 by 2020.
118
This objective is to create a strong focus on the marketing and selling of South Africa as a meetings destination.
Outcome 4
Page – Strategic Plan
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10. Annual Performance Targets
2015/16 and beyond

11. Annual Performance Targets 2015/16 and beyond
KEY PERFORMANCE
INDICATOR
AUDITED OUTCOME OR ACTUAL PERFORMANCE
ESTIMATED PERFORMANCE
MEDIUM-TERM TARGETS
2013/14
2014/15
2015/16
2016/17
2017/18
Number of tourist arrivals achieved (million)
9,6
4.7%
10,3
6.7%
10,9
7.0%
11, 5
5.1%
12.0
4.2%
Number of domestic holiday trips(millions) achieved
3,1
6.9%
2, 6
-15.3%
2,8
8.3%
3,0
7.7%
3,2
7.1%
Total Tourism Revenue achieved (billion)
R 94.6
-4.0%
R 101.8
7.6%
R 107.4
5.5%
R 112.7
5.0%
R 117.5
 TTFDS (billion)
R 70.3
-5.3%
R 78.6
11.8%
R 83.1
5.7%
R 87.4
5.2%
R 91.0
4.1%
 TDDS (billion)
R 24.3
11.5%
R 23.2
-4.5%
R 25.3
4.5%
R 26.5
Slide no. 11
Page 11 - APP

12. Annual Performance Targets 2015/16 and beyond
KEY PERFORMANCE
INDICATOR
AUDITED OUTCOME/ACTUAL PERFORMANCE
ESTIMATED PERFORMANCE
MEDIUM-TERM TARGETS
2013/14
2014/15
2015/16
2016/17
2017/18
Brand awareness achieved (%)
79%
80%
Number of graded accommodations establishments achieved
5 587
-7.2%
7 088
26.9%
6 493
-8.4%
6 948
7.0%
7 643
10 %
Number of business events in South Africa
*118 - 71
-39% 87
22.5%
118
35%
125
5.9%
*The ICCA audited baseline for number of business events hosted in South Africa in 2013/14 was 118. However, setting the target for 2015/16 and beyond, SANCB considered the number of secured events, the bidding pipeline of likely events, the 4 year lead time and the 65% success rate of bids submitted.
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Page 11 - APP

13. Budget Allocation
Page : Strategic Plan

14. Overview Of 2015/16 Budget and MTEF Estimates

15. Strategic Plan & Annual Performance Plan (2015/16 & Beyond)
Graphical Representation of Overview of 2015/16 Budget and MTEF Estimates
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Strategic Plan & Annual Performance Plan (2015/16 & Beyond)

16. Breakdown of Budget Per Objective
Name of the Objective
2011/12
2012/13
2013/14
2014/15
2015/16
2016/17
2017/18
ENE Estimate
Adjustment
Approved
Audited
(R’000)
Budget
Estimate 1.
Administration 2
Contribute to growth of international tourist arrivals in South Africa
24 925 3
Contribute to growth of domestic tourism in South Africa
23 452
45 113
46 372
43 672 - 4
Grow tourism revenue 5
Improve brand awareness of South Africa as a tourist destination 6
Provide quality assurance for tourism products
25 061
3 252
37 889
41 171
3 000
44 171
48 425
49 871
52 364 7
Contribute to number of business events in South Africa
43 216
51 982
45 813
33 700
34 000
35 700
Total 1 
52 850

17. Graphical Representation of Breakdown of Budget/ Objective

18. Budget Interventions
Upfront payment to foreign country budgets to manage the risk of currency exposure
Request budget rate from Treasury
Budget in foreign countries
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19. SA Tourism’s strategy is to:
convince consumers/ clients that South Africa can be trusted to deliver memorable experiences and successful business events.
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Page : Strategic Plan

20. National Convention Bureau Focus Areas
Corporate Meetings: Number of delegates at international corporate meetings M I
Incentive meetings: Number of attendees at international incentive meetings C
International conventions: Number of attendees at international conventions C
International conventions: Number of attendees at international conventions E
Exhibitions: Number of international attendees at trade exhibitions E
Exhibitions: Number of international attendees at trade exhibitions
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21. Business Events Market Prioritisation
Target market for business events is in terms of geographic locations or decision centres where decisions about staging of major international business events, priority targets within those markets; and South Africa’s potential to attract delegates.
MEETINGS
INCENTIVES
CONVENTIONS
EXHIBITIONS
Targeted Geographic Locations
SADC, Europe, USA and Asia
UK, Europe, US, BRIC and Asia
Europe, USA and Africa
South Africa, Europe and US.
Target
Audience
African product
launches and user groups as well as African regional meetings of multi-national corporations.
Incentive companies, corporate agencies and in-house planners.
Associations with South African key contacts or areas of specialisation.
Internationalising national shows and African versions of existing titles.
South Africa’s Potential
Limited
Strong
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22. Sales Model for Business Meetings and Events
Following best international practice, SANCB has adopted a hybrid sales model where sales in some regions are generated using a Sales Representation Model and in others, in-house sales teams.
The intrinsic benefits associated with the Sales Representation Model are cost effectiveness and the ability to reach a wider audience in the regions where it is used.
Performance of the independent sales representatives is managed via the Sales Representation Agreements.
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23. Target Industries/Sectors
Mining and agriculture are major sectors across provinces; while manufacturing industries are mainly located in Eastern Cape, KwaZulu-Natal and Free State, the financial services sector is mainly concentrated in Gauteng
South Africa – Key Industries/Sectors by Provinces
Gauteng
Key Industries: Financial and business services, logistics and communications, mining, agriculture (food processing and beverages), medical1, automotive2 manufacturing, R&D3 and telecommunications and technology 1
Limpopo
Key Industries: Mining, tourism (game reserves), agriculture and hunting industry / game farming 9 9 1
Mpumalanga
Key Industries: Mining (Coal), agriculture (citrus fruit production, agri-processing and sheep farming), tourism (eco-tourism), game farms and manufacturing 8 8 2
North West
Key Industries: Mining (mainly Platinum), tourism (game reserve, nature reserve, etc.) and agriculture 2 7 3 6
Free State
Key Industries: Mining (Gold, Coal and Diamond), agriculture, petrochemicals and manufacturing (high-tech industries) 7
Northern Cape
Key Industries: Mining (mainly Diamonds, Iron-ore), tourism, game- farming, astronomy and agriculture 3 5 4
Western Cape
Key Industries: Finance, printing and publishing, real estate, ICT, oil and gas, retail, engineering, R&D4, clothing and textile, agriculture, ship building / ports, tourism and medical1 4
Eastern Cape
Key Industries: Automotive manufacturing, finance, real estate, agriculture (sheep farming and fishing), wholesale and retail trade, tourism, ports5 and hotels and restaurants 5 6
KwaZulu-Natal
Key Industries: Mining (Aluminum, Steam Coal, Minerals), manufacturing (petro-chemicals, automotive), tourism, ports, leather industry and agriculture, real estate, medical1
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24. SANCB SUPPORT SERVICES
National Convention Bureau Services
SANCB SUPPORT SERVICES
Bidding Support
Bid Strategy
Bid Document
Lobbying
Bid promotion
Bid Presentations
Site Inspection Support
Bidding Site Inspections
Convention Planning Site Inspections
Convention Planning Support
Planning support
Venue and supplier recommendations
Final decision with client
Delegate Boosting Support
Marketing support to promote the SA conference
Delegate attendance promotion
On Site Event Services
Support toward on site elements of the event
Slide no. 24
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25. SA Tourism’s strategy is to:
invest only in selected markets/ decision centres to deliver volume and value.
Page : Strategic Plan
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26. Leisure Tourism Market Portfolio - 01/04/2014 – 30/03/2017
Africa
AMERICAS
ASIA & AUSTRALASIA
EUROPE & the UK
CORE MARKETS
Angola
Domestic
Kenya
Mozambique
Nigeria
Tanzania
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

27. SA Tourism’s strategy is to:
set up regional hubs to increase market penetration.
Page : Strategic Plan

28. Hub Strategy Approach
Step 1: Linked all markets in Investment, Tactical and Watch-list to the Core Markets looking at close proximity and/or same geographical area.
Step 2: Assessed capability of the Hubs to service the additional markets considering the following factors:
Budget Availability;
Human Resources;
Geographic spread; and
Ease of marketing.
Step 3: Markets which could not be serviced through the Hub office were re- allocated to be serviced through the Watch-List unit at Head Office.
Hub implementation is aligned to the current market portfolio

29. SA Tourism Strategy
Increasing cost of doing business abroad coupled with the shrinking budgets is compelling the organisation to prioritise and/or cluster markets in order to maximise SA Tourism’s return on investment (ROI).

30. Reviewed Hub Strategy Implementation – Budget and Market Portfolio

31. SA Tourism’s strategy is to:
work the distribution channel to promote South Africa.
Page : Strategic Plan
Slide no. 31

32. Global Trade Strategy
SAT creates awareness and desire for the country destination, and trade converts potential into sales.
Integrated approach between SAT and trade resulting in greater collection and leveraging of data. Collectively serve as the centre of niched networks to connect with end travellers.
Each trade landscape in each market is unique in structure, concentration of tour operators’ sales and distribution networks.
Educate the trade to sell South Africa better including addressing perceptions around safety & security and infrastructure.
Choose partners carefully and illustrate the benefits of packaging, promoting and selling SA by deconstructing SA into easy to understand and easy to do itineraries. Guide the trade to package suitably with the aim of getting tourists to stay longer and spend more in SA.
Successful Joint Marketing Agreements (JMAs to facilitate fulfilment of objectives)

33. Leisure Tourism Marketing – Global, Africa and Domestic Tourism
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34. SA Tourism Strategic Approach
Focus on two prime prospect consumer segments that are worldly well-travelled segments of travellers who are seeking new experiences in an explorer type destination:
NSSA’s
WANDERLUSTER.
Target first timers in both segments due to higher revenue spend in SA.
The success of this strategy will be through engaging visitors with the diversity, possibility and Ubuntu in our people, place, heritage and culture, breathtakingly enriching memories and life changing experiences.
The key elements of this strategy are to:
inspire: authentically showcasing South Africa through her people, and how we can provide a unique experience that you will never forget;
engage: by communicating that underpinning the experiences one could have with South Africans as do-able and accessible to the traveller; and
convert: by conveying the message to travellers that South Africa is beyond price and measure. To improve conversion, we will engage primarily with key trade and media partners in-country to activate travel to South Africa.

35. Global Marketing Approach
Inspire global travellers to consider South Africa as a leisure destination by protecting our strengths in adventure and wildlife to also show South Africa as a value for money, safe and secure destination that can be experienced through welcoming people.
Our marketing blueprint is focused on improving conversion ratios by increasing awareness/positivity and closure ratios. To improve conversion, we engage primarily with key trade and media partners at the country level to activate travel to South Africa
Global partners:
National Geographic – 458 million households; 172 Countries; 38 Languages (Dutch, English, Chinese, French, German, Italian, Spanish).
CNN Global distribution – 484 million households, hotel rooms & airports worldwide.
Our key marketing strategy focusses on welcoming people you can interact with (our strongest differentiator and driver for conversion). When you #Meet South Africa, the you that arrives will not be the you that leaves.
Numerous global awards won for excellent destination marketing execution.

36. Leisure Tourism – Global, Africa and Domestic Tourism

37. Regional Africa
In the past three years, Regional Africa was prioritised and as a result was given a ring-fenced budget.
SA Tourism wants to achieve increased market presence in the following targeted markets/hubs:
SA Tourism Nigeria office opened - positioned to service the West Africa hub
SA Tourism Angola presence to be concluded mid 2015
SA Tourism Kenya presence is planned for end 2015/16
Top six source air markets in Regional Africa where marketing efforts are focused are Nigeria, Kenya, Ghana, Tanzania, DRC and Angola.
SA Tourism marketing initiatives include:
A new Africa TVC that focuses on key market insights
An integrated media buy from media houses with a wider reach for content generation
Partnering with, training and hosting trade with an aim to improve how South Africa is packaged.

38. Leisure Tourism – Global, Africa and Domestic Tourism

39. Domestic Tourism
South African Tourism seeks to drive a culture of travel amongst South Africans, increase the frequency of those that currently travel, improve geographic spread of travel, reduce seasonality and enhance affordability.
As a high priority market, additional budget has been allocated and ring-fenced.
SAT is in the process of building a campaign to inspire and create awareness of the benefits of travel.
We engage with trade, airlines and media partners to drive conversion.
We partner with provincial and city Tourism Agencies to lobby support and to ensure consistency of campaigns, media buy and other marketing initiatives.
Increase the number of tailored and affordable experience packages on the ‘Sho’t-Left’ deals dashboard.
We work with schools, communities and the stokvel associations to build an understanding of the tourism markets.

40. SA Tourism’s strategy is to:
engage stakeholders and partners to deliver quality visitor experience that re-affirm the brand promise.
Page : Strategic Plan

41. Quality Grade Establishments accurately
Tourism Grading Council: Vision, Mission, Strategic Objectives & Goals
Vision
To be an internationally recognised, credible and predictable brand that
stands for quality and enriched tourist experiences.
Mission
Strengthen the SA Tourism Brand by implementing a recognisable and
credible globally bench-marked system of quality assurance for tourism
experiences which can be relied upon.
Strategic Objectives
Quality Grade Establishments accurately
Recognise Great
Performing
Establishments
Strategic Goals
Continually enhancing the credibility and skills of the Grading Assessors
Continually enhancing the credibility of the Grading Process and Grading Criteria
Ensuring a tangible Basket of Benefits for graded establishments
Continually enhancing the credibility of the Lilizela Tourism Awards 1 2 3 4

42. Grading Council: Strategic Goals
Continually enhancing the credibility and skills of the Grading Assessors
Strictly manage the conduct of Assessors in line with the Service Provider Agreement (SPA).
Conduct Annual Assessor Performance Reviews.
Conduct Annual Assessor Refresher Training during the Annual Assessor Conference as well as the Bi-Annual training workshops.
Continually enhancing the credibility of the Grading Process and Grading Criteria
Implement an efficient and professional Customer Relationship Management System.
Stop the illegal use of Stars by ensuring compliance to procedures for all establishments illegally displaying the Stars upon the transgression coming to the attention of the TGCSA.
Ensuring a tangible Basket of Benefits for graded establishments
Roll out the Marketing and Communications plan including the Power of One Roadshows, with key messaging being “The Basket of benefits” and how they contribute toward establishments’ long term sustainability.
Continually enhancing the credibility of the Lilizela Tourism Awards
A concerted effort to be made to get industry buy-in.
Re-establishment of the Lilizela Award as a prestigious industry award.
Provincial Awards to continue with the active participation of the provinces.
The Adjudication Panel to consist of respected industry players.
An independent audit firm will be appointed to oversee the whole process.
Transformation will be a key focus area of the Lilizela Awards to broaden the participation base.

43. Expanded Mandate of the Grading Council: Tourism Act of 2014

44. Key Stakeholders TGCSA Stakeholders
National Department of Tourism (NDT)
Tourists
(domestic & international)
Key Stakeholders
Assessors
Establishments
Fedhasa, TBCSA, NAA, SATSA etc
Trade
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45. SA Tourism’s strategy is to:
engage stakeholders and partners to deliver quality visitor experience that re-affirm the brand promise.
Page : Strategic Plan

46. Alignment with Key Stakeholders
SA Tourism will implement its strategy through engaging its partners and stakeholders to deliver quality visitor experience that re-affirms the brand promise.
SA Tourism, through Tourism Grading Council, will continue contributing towards enhancing visitor experience and consumer confidence in the tourism products of South Africa by encouraging establishments to participate and remain members of the grading system.
 SA Tourism will work in a collaborative approach with partners and stakeholders to unlock the following barriers to tourism growth – amongst others:
Safety and Security
Ground transport - integrated public transport
Price competitiveness
Ease of access – air routes, visas
Cohesive, good, destination marketing (understand our consumers) and branding
Public private sector trust and cooperation
Skills development

47. The Importance of the Value Chain
SA TOURISM
TOUR OPERATORS/ TRAVEL AGENTS
DEPT OF HOME AFFAIRS
AIRLINES
AIRPORTS
Create Awareness & Positivity
Conversion
(Sign JMAs)
Book Flights
(Capacity & Fares)
(Sign JMAs)
Friendly visitor welcome, information & efficiency
Efficient visa processing
MEDIA (International & Local)
RESTAURANTS & OTHER PRODUCTS
HOTELS
TRANSPORT & LOGISTICS CO.
IMMIGRATION
Contextualised & Positive Reporting
Warmth of our people
Good service
Pricing
*Welcoming
*Graded
*Meet customer experience expectation
Legitimacy Pricing
Reliability
Friendly visitor welcome
StatsSA – Accurate Tourism Stats
WTTC-Jan 2013

48. SA Tourism’s strategy is to:
energise and empower the organisation to innovate and achieve excellence.
Page : Strategic Plan

49. SA Tourism HR Strategy
Leadership Development: Develop strong, inspiring and effective leaders with the vision and energy to deliver on SA Tourism’s objectives.
Learning and Development: Reposition SA Tourism as an employer of choice that develops its people.
Integrated Talent Management: Implement Integrated Talent Management to promote acquisition and retention of talent and skills as well as implement succession planning.
Brand Ambassador Programme launched and being rolled out. This programme will deal with issues of redefining the company DNA, values and organisational culture to cater for the diverse needs of the growing global organisation.

50. Concluding Remarks
Delays in tourism statistics for planning, strategy formulation and organisational performance reporting;
Change of methodology for tourism stats collection and reporting (transit passengers);
Health risks that may impact the tourism industry;
Recent xenophobic attacks and the impact to the SA Brand;
Potential impact of the immigration laws; and
Affordability remains a cited barrier to domestic tourism growth.

51. Thank You