1. Department of Tourism www.tourism.gov.za Department of Tourism www.tourism.gov.za BRIEFING ON DOMESTIC TOURISM GROWTH STRATEGY PORTFOLIO COMMITTEE ON TOURISM 21 August 2015

2. PURPOSE To present the Domestic Tourism Strategy, 2012. To provide progress made regarding the implementation of the Strategy. 2

3. WHAT IS DOMESTIC TOURISM & PURPOSE OF TRAVEL Activities of a visitor within country of residence as part of domestic tourism trip and outbound (UNWTO). Travel by a resident outside his/her usual environment (40 km), and not more than once a week – (StatsSA). Related purposes include: Visiting Friends and Relatives (VFR), Religious, Business, Holiday and Medical. 3

4. THE MEASUREMENT OF DOMESTIC TOURISM CHARACTERISTICSATSTATS SA Sample 15 594 (About 1 300 monthly)Approximately 32 000 households Scope Persons 18 years and above Respondent that have undertaken trip/s All persons in the household (All ages) Respondent can answer for members of the household Measurement variables and data analysis Analysis is based on all trips Day and overnight trips and travellers (other variables e.g. spend) Analysis is based on most recent person trips for certain variables (e.g. spend) Daytrips and overnight trips. Recall period One monthThree months. Reporting First integrated survey report in June 2018 – for the 2017 reference period. 4

5. DOMESTIC TOURISM GROWTH STRATEGY 5

6. Assists in maintaining travel and tourism during difficult times globally (sustainability) – maintains the jobs; It stabilises the cyclical and seasonal flows of inbound tourism; Provides an indirect way of building a product base for international tourism; and Creates a tourism culture in the country (critical for the success of all forms of tourism). WHY DOMESTIC TOURISM 6

7. PROBLEM STATEMENT – DOMESTIC TOURISM GROWTH 7 Domestic trips have been on the decline since 2009 until 2013. Domestic travellers have also been on the decline for the same period with the exception of 2011. Decline in contribution of domestic tourism to internal tourism expenditure (58.9 % in 2011 to 57% in 2013) - TSA The top five reasons for not travelling remain the following: Affordability, no reason to travel, time constraints, no income/unemployed and dislike travelling. Lack of culture of travel amongst SA especially the previously disadvantaged, due to limited marketing and limited product development and diversification (considering geographic spread, and seasonality of the broader domestic market).

8. PROBLEM STATEMENT CONT…. 8 Shot 'left campaign too narrow – focus on young and upcoming segment Limited resources dedicated to tourism More focus on marketing than other elements such as limited capacity and access Limited domestic tourism research. Underutilization of some existing products. Limited tourism capacity at local government level Investments not linked to demand Limited domestic packaging Inadequate attention paid to the issue of affordability

9. ENVIRONMENTAL SCAN factors of influence Product diversification, targeted marketing, affordability, access and service excellence. Travel trends (regional vs global). Competing with global destinations for the domestic market. Competition Economic slow down Disposable incomes interest rate High unemployment rate International competition Economic Trends Transport Infrastructure emergence of easily accessible transaction points (e.g. supermarkets) and spread of products Travel facilitation locally Product diversity Propensity to travel Tourism Markets & Industry Trends 9

10. ENVIRONMENTAL SCAN factors of influence Increased connectivity - Use of social networks Technology Environmentally conscious traveller Responsible Tourism standard Increased reliance of tourism on conservation – Eco Tourism, Beach Tourism, heritage etc Natural Environment Segment of ageing affluent middle class increase in travel demand Safety and security influencing travel decisions Social and Cultural Trends 10

11. NTSS AND DOMESTIC TOURISM VISION To be a top 20 tourism destination in the world by 2020 VISION To be a top 20 tourism destination in the world by 2020 CLUSTER 1 P olicy, S trategy, R egulations, G overnance, and M onitoring & E valuation CLUSTER 1 P olicy, S trategy, R egulations, G overnance, and M onitoring & E valuation CLUSTER 2 T ourism G rowth & D evelopment 2.1 D emand 2.2 S upply CLUSTER 2 T ourism G rowth & D evelopment 2.1 D emand 2.2 S upply CLUSTER 3 P eople D evelopment CLUSTER 3 P eople D evelopment CLUSTER 4 E nablers of G rowth CLUSTER 4 E nablers of G rowth ii) Domestic Tourism (2.1 Demand) Lack of travel culture. Limited marketing, product suitability, distribution channels, information access, etc. Market segments – product availability ascertainment. Response: Domestic Tourism Growth Strategy ii) Domestic Tourism (2.1 Demand) Lack of travel culture. Limited marketing, product suitability, distribution channels, information access, etc. Market segments – product availability ascertainment. Response: Domestic Tourism Growth Strategy 11

12. 12 DOMESTIC TOURISM GROWTH STRATEGY OVERVIEW  VISION Growing Domestic Tourism for a Sustainable Tourism Economy  MISSION Promote domestic tourism growth based on a culture of travel; innovation; stakeholder participation; offering authentic, affordable experiences and packages which meet the needs of all potential local travellers.  VALUES Respect for culture and heritage; Responsible tourism; Service excellence; Embrace sector transformation; Accountability; Transparency and Integrity.

13. 13 STRATEGIC OBJECTIVES 1.Increase domestic tourism revenue. 2.Increase domestic tourism volumes. 3.Improve measures and efforts aimed at addressing seasonality and equitable geographical spread. 4.Enhance the level of the culture of travel and tourism among South Africans.

14. Strategy Objectives and Indicators Strategic ObjectivesBaseline2015 Target2020 Target 1) TO INCREASE DOMESTIC TOURISM REVENUE - GDP - holiday travellers - Number of adult travellers - domestic trips 55% (TSA, 2009) 4 million (2009, SAT) 14,6 million 30.3 Mn GDP by 55% 6 million 16 million 40 Mn GDP by 60% 9 million 18 million 54 Mn 2) TO ENHANCE DOMESTIC BUSINESS TOURISM 5.3% (2009,SAT) 10% (proposal) 15% (proposal) 3) TO ENHANCE MEASURES AND EFFORTS ON SEASONALITY AND GEOGRAPHICAL SPREAD - seasonality index - bed night spent low season months 1.13% 5.3% 1% 7.1% 0,5% 10% - geographical spread: total domestic bed nights 128.4 Mn 20% 34% 4) TO ENHANCE THE CULTURE OF TOURISM - increased levels of awareness - increased levels of community participation - enhance social tourism programmes No baselineN/A14

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16. 16 KEY ACTIONS & TARGETS Innovation Product use maximisation & new product Increase business travel volume Entrench a culture of travel Revenue Affordable packages Review and enhance conversion mechanisms Volume

17. 17 KEY ACTIONS & TARGETS Audit products nationally to determine availability for all priority segments Maximise use of existing tourism assets all year round Differentiated marketing Seasonality & Geographic Spread Develop and implement tourism education programme/campaigns Enhance training of tourism product owners, employees and neighbouring communities Affinity to Travel

18. 18 DOMESTIC TOURISM MARKET SEGMENTATION Segment 1 – Spontaneous budget explorers Segment 2 – New horizon family Segment 3 – High Life enthusiast Segment 4 – Seasoned leisure seeker Segment 5 – Well to do Mzanzi family * UP study confirmed adequate product for five identified segments.

19. 19 IMPLEMENTATION increase revenue Focus AreaOutcomeActions/ActivitiesProgress Innovation of attractions, operations and offerings Increased effective use of tourism facilities Ensure adequate supply of products and services per market segment Infrastructure investment In 2014 – 2015 the department in partnership with the management authorities of the World Heritage Sites rolled out the implementation of Tourism Interpretive Signage. The project continues in 2015 – 2016. Maximize utilization of existing products and introduce new products Full use of tourism facilities and introduce new products where there is potential Develop and implement programme for existing and new tourism products targeting domestic tourists Identification of pilot sites for the budget resort concept. Funding of community based hospitality products through the SRI programme.

20. 20 IMPLEMENTATION ….. increase revenue Focus AreaOutcomeActions/ActivitiesProgress Increase in business travel Increase in business tourism Implement the National Bureau Strategic Plan NCB established –SAT Entrenching a culture of travel Increase in the culture of travel for tourism purposes Establish quotas, encourage concessions and incentives Dedicated resources ring fenced to enhance marketing efforts through SAT Improve performance of tourist information centres Visitor Information Center brand roll-out to SRI/2010 developed and piloted:2013/14 Improve dissemination and awareness of tourism information Tourism Month campaign implemented annually.

21. IMPLEMENTATION increase volume Focus AreaOutcomeActions/ActivitiesProgress Differentiated packaging of affordable tourism products Increased number of domestic tourism trips Investigation into the development and packaging of affordable domestic products for local consumers Differentiation is tapping into new domestic travel groups such as Gogo’s on tour, Stokvels, etc 21

22. …IMPLEMENTATION address seasonality and geographic spread Focus AreaOutcomeActions/ActivitiesProgress Maximise use (all year round) of existing tourism assets/facilities Optimal use of existing facilities Audit of products The audit is complete, the plan to pilot the feasibility study recommendations currently in place. Create special activities for less visited areas and low season 22

23. IMPLEMENTATION travel affinity to travel amongst south Africans Focus AreaOutcomeActions/ActivitiesProgress Develop and implement tourism awareness education programmes Increase understanding of tourism and appreciation of the value of tourism Promote values and attitudes that are part of the culture of tourism The Domestic Tourism Radio campaign proposal was developed and rolled out Enhance training of tourism product owners, employees and neighbouring communities Increase understanding of tourism and appreciation of the value of tourism Promote values and attitudes that are part of the culture of tourism NDT has developed and piloted the Service Excellence campaign and currently rolling out programme to new sites 23

24. KEY SUCCESS FACTORS Strong partnerships and collaborative initiatives (Public and Private) Effective packaging to ensure competitive pricing, access to information, ease of purchase, quality travel experiences in line with target market needs. Affordable, safe and convenient access - transport modes Increased access to affordable tourism facilities by more South African Awareness - Domestic tourism campaigns rollout. Focused research on areas with high potential. Recognise the role of platforms such as travel agents, banks, websites, retailers, mobile phones, etc. More collaboration for collection and sharing of information for statistical purposes. Ensure that there is a monitoring, evaluation and reporting mechanism in place 24

25. RECOMMENDATION 25 It is recommended that the Portfolio Committee Notes the briefing on the Domestic Tourism Growth Strategy, and Notes progress made regarding the implementation of the Domestic Tourism Growth Strategy Plan.

26. Thank You 26