1. World Cup: How to prepare the hotel industry and the tourist infrastructure Eddy Khosa Chairman: FEDHASA August 2008

2. I am a proud African

3. South Africa Our land of opportunity at the Southern tip of the African continent South Africa is ready to host South Africa 2010 FIFA Soccer World Cup! Africa’s time has come! FEDHASA will help to make the dream reality!

5. FEDHASA Federated Hospitality Association of Southern Africa FEDHASA is the voice of the hospitality industry with a strong focus on representation and lobbying

6. FEDHASA truly represents industry All leading hotel groupings in South AfricaBead & Breakfasts and guesthousesGovernment and public sector organisationsSector development organisationsGrading and governance bodies DEAT HILG THETA TBCSA TOMSA TGSA TEP DELOITTE 2010 MATCH FEDHASA board members include:

7. FEDHASA builds on a proud legacy Representing the South African Hospitality Industry on a local, provincial, national and global level to protect the interests of all stakeholders of the industry, thereby enabling members to achieve their business objectives. Significant FEDHASA milestones: Founded in 1949 National Liquor Board established in 1961 Spearhead grading standards in 1964 Influence into Hotels Act and formation of Dept of Tourism in 1965 Name change in 1984 to include wider hospitality sectors Commenced lobbying with ANC in 1988 FEDHASA white paper on growth of tourism industry in 1991 Full South African democracy in 1994 Contribute to delivery of a successful Rugby World Cup in 1994 Portfolio committee system in 1998 Host international IHRA conference in 1999 HILG folds into FEDHASA in 2008 to form one representative body

8. Our role in the industry FEDHASA has a focus on representation and lobbying, not marketing FEDHASA translates legislative compliance from Government to hospitality industry Nature of the membership of the FEDHASA represent the entire hospitality industry including hotel industry Clear role of FEDHASA is to be the representative voice of the whole hospitality industry

9. Key FEDHASA differentiators National and regional membership with talented people with strong industry knowledge Three autonomous structures representing the total national industry Membership mandate very clear on role and responsibility Supported by Government and recognised as the official voice of the hospitality industry

11. Global trends are in our favour Global tourism growth continues Latest research anticipates a slowdown in the industry in 2008, but bright prospects for coming 10 years afterwards Moderate impact as a result of global economic downturn Challenges coming from US slowdown, weak dollar, higher fuel costs & climate change concerns Continued strong expansion in emerging countries – both as a tourism destination as well as a source for international visitors Africa (5.9%), Asia (5.7%) & the Middle East (5.2%) experiencing higher growth rates Mature markets (Americas and Europe) are falling below the world average with growth at (2.1% and 2.3% respectively) Overall impact of this slowdown for mature markets is expected to be offset by the strength in emerging markets, in particular China & India, whilst Middle East are undertaking massive tourism-related investment programmes Source: WTTC (World Travel & Tourism Council), TSA (Tourism Satellite Accounting) research – March 2008

12. South Africa grows more competitive Tourism, the South African economy and global destination competitiveness are all positive: –SA’s global competitiveness as a global destination depends on four things –air access –skills development –tourist product development –safety & security of visitors –Tourism has delivered more than a million South African jobs –Government, the private sector, the industry and nation continues working together to achieve potential –Tourism is a growing and sustainable industry South African Tourism :, Moeketsi Mosola, South African Tourism CEO, March 2008

13. Positive foreign tourism growth Source: Statistics SA Total of arrivals R Millions

14. The South African offering at a glance Our friendly people are our biggest assetScenic beauty, animals and great weather Top class hospitality infrastructure with great variety and choice Offers very good value for money Great diversity in the quality products and experiences that are on offer

15. Our challenges are also opportunities Political importance of 2010 as a key hospitality milestone Uncertainty in dynamics within the ruling party on the advent of a national election in 2009 Strong drive for inclusion of previously excluded sectors of the industry Recent occurrence of Xenophobia Political Clear representation of industry required Push for empowerment and transformation Stronger push for a more regulated environment Legal International economic slow-down in inbound source markets Rising input costs in the hospitality space Increased competition from other “new” markets Sustainable economic opportunity of FIFA 2010 and beyond Calls for greater empowerment in all industry sectors Cost of imported services and products and local skills shortage Economic HIV / Aids and TB in the Southern African region Role of hospitality industry in times of disaster Migration of people from poor neighbouring economies Disparity in levels of education, literacy and income Greater environmental role and awareness Social

16. Ready to deliver a successful 2010 Capitalise on the major opportunity FEDHASA is an effective link between industry, Government and organising bodies Deliver successful hospitality participation with all the key players on board Ensure sustainable positive impact beyond 2010

17. Our approach for 2010 success National tourism goals are clearly defined for 2010Support at all levels as a key tourism milestoneAll the right players are part of this continental priority including MATCHFEDHASA monitors readiness of our industry against set milestonesClose working relationships with organising bodiesEmpowerment of the industry is a key initiativeNational and regional strategies are in placeConfederations Cup 2009 will be precursor and preparative experience

18. Building a legacy beyond 2010 2010 is a significant SMME development opportunity SMME to become part of mainstream economy through 2010 Entrepreneurial empowerment and skills development is a key focus Opportunity to fast-track transformation of the industry Non-hotel contracts brings new business opportunity through development of guesthouses, B&Bs etc.

19. Influential partnerships for success

20. What 2010 holds for South Africa The opportunity to welcome the world and showcase our fantastic country... empower our people through tourism development... develop our sustainable hospitality industry beyond 2010... extend our typical South African warmth to our visitors... show that South Africa is truly the gateway for Africa’s continental success!

22. Thank you We look forward to welcoming you to South Africa! South Africa – it’s possible