2010 Update PORTFOLIO COMMITTEE 23 February 2010

1. 2010 Update PORTFOLIO COMMITTEE 23 February 2010

2. Purpose To provide the Tourism Portfolio Committee with progress on the tourism preparations for 2010 World Cup™ as per the 2010 Tourism Plan.

3. Layout of the presentation Accommodation Overview Information per province: • Team based camps • Games per stadium • Accommodation and other requirements Tickets sales trends Skills Development Information Transport Safety Marketing and Branding Events

4. TEAM BASE CAMP INFO

5. TEAM BASE CAMP INFOMP, NW, NC CONFIDENTIAL

6. TEAM BASE CAMP INFO - KZN CONFIDENTIAL

7. TEAM BASE CAMP INFO – Western Cape CONFIDENTIAL

8. TEAM BASE CAMP INFO - GAUTENG CONFIDENTIAL

9. TEAM BASE CAMP INFO - GAUTENG CONFIDENTIAL

10. 2010 STADIA

11. Accommodation database • Verification • Establishments: 18 882; • Rooms: 202 712; • Eliminated duplicates and non-accommodation establishments; • Received & incorporated updated databases from provinces; • Received & incorporated database received from Match; • Included TGCSA’s database; • In principle agreement on the ‘basic database’ with industry.

12. Accommodation Establishments per Host City (50km Radius) NDT database

13. Accommodation Database OverviewUnlimited Radius NDT database

14. Summary of Inventory Changes by Property Type

15. Summary of Inventory Changes by Host City

16. Outside South Africa – inventory overview by Country

17. Match Contract Management Activity • December 2009 • 50% of the then available room nights released back to establishments on 11th December 2009 in line with our contractual obligations. • Second Hotel and First SMME deposits made into the MATCH Deposit Accounts (holding Account for allocated room nights) before 31st December 2009 in line with contractual obligations to all property types. Deposit notifications were sent to all properties. • Release criteria: proximity to host city, match period with low demand (beginning and end of the tournament), nights not in support of match and contractual obligations • Another release – 10 April 2010 (peak period is never released)

18. Match Contract Management Activity • January 2010 • 99% of Timeshare Inventory was released on 8th January 2010 • 100% of Mauritius Inventory released during w/c 18th January 2010 due to cancellation of MATCH Ville Mauritius • Inventory Added and Released within the summaries includes room swaps, changes to contract types (for example a Team Based Camp Hotel (TBCH) reverting to Standard) etc. therefore it is important to note the Net Release column rather than the “released” column when considering the data within this report. • 15th June 2010 has been used as a reference date for rooms held, in most cases this is the peak night however not all following the release (for example, Timeshare peak night is now 18th June 2010) • Rooms held on non peak dates vary throughout venues (MATCH Schedules differences)

19. PRICING ISSUES • News reports regarding unfair pricing during the World Cup – accommodation and airlines • Survey to determine prevalence of the practice in the accommodation sector: • International trends (previous World Cups) • Extent of increase compared to normal peak season and other major events • Variations within MATCH contracted establishments • Is it normal industry or opportunists? • Minister engaging industry

20. Accomodation Booking portal • Industry initiative – Fedhasa; • www.rooms4u.travel; • Pre-register all establishments on accommodation database (Dec ’09); • Email & SMS communication to verify information and to ask establishments to add information e.g. stock, prices, banking details (Jan ’10); • Advantages incl: collection of TOMSA levy, 15% fee – establishments only pay when booking is made; (Investigating a markup approach for SMME – to avoid reduction in earnings) • Link to the Contact Centre, real time and last minute bookings, • Increased uptake due to match rooms released • Transactions on booking portal from February 2010;

21. Update on Rooms4U • 2000 SMMEs registered • Additional 1400 SMMEs registrations (negotiations – advanced) • Process of registration will not be closed but need to be finalised before the system goes live - March 2010 • A target of 75 000 rooms will be available on the system when the site goes live

22. Assumptions • Most visitors may stay close to their team-based camps. • Most tickets are bought by families or groups (possible room sharing) • Most tickets will be bought by South Africans (in the locality) • Most visitors will arrive towards the games • Most visitors will depart after the group stage when their teams fail to progress to next round. CONFIDENTIAL

23. Games at Royal Bafokeng Stadium - NW Stadium Capacity = 40 000 NDT BD info = (<50km = 3,489 rooms, provincial = 9,813 rooms) - Transport dependancy is very high

24. Games at Mbombela - MP Stadium Capacity = 40 000 NDT BD info (<50km = 8,968 rooms, provincial = 12,805 rooms) - Very high road transport dependancy (small airport Capacity)

25. Games at Moses Mabhida - KZN Stadium Capacity = 70 000 NDT BD info = (<50km = 13,273 rooms, provincial = 31,273 rooms) - Air Transport dependancy is very high with good capacity

26. Games at Green point - WC Stadium Capacity = 68 000 NDT BD info = (<50km = 29,865 rooms, provincial = 62,218 rooms) - Dependency on air road transport.

27. Games in Soccer City - GP Stadium Capacity = 95 000

28. Games in Ellis Park - GP Stadium Capacity = 60 000 NDT BD info = (<50km = 26,786 rooms, provincial = 44,126 rooms) - Some degree of dependency on air and high dependency on public transport.

29. Games in Loftus -GP Stadium Capacity = 45 000 NDT BD info = (<50km =12,855 rooms , provincial = 44,126 rooms) - Dependancy air transport is very high

30. Games in Peter Mokaba - LP Stadium Capacity = 40 000 NDT BD info = (<50km = 2,794 rooms, provincial = 9,403 rooms) - Very high dependency on air transport with connecting flights – (Low airport capacity).

31. Games in Free State Stadium - FS Stadium Capacity = 40 000 NDT BD info = (<50km = 2,677 rooms, provincial = 7,204 rooms) - dependancy on air and road is very high (low airport capacity)

32. Games in Nelson Mandela - EC Stadium Capacity = 50 000 NDT BD info = (<50km = 4,152 rooms, provincial = 19,230 rooms) - Dependancy on air transport is very high with connecting flights.

33. Overview of tickets sales • To date, about 2 million of the 2,9 million tickets have been sold across 192 countries. • Increased demand for tickets by SA citizens (79% in 3rd phase) – reduced ticket prices • Foreign countries leading the demand (3rd phase applications): • USA = 50,217; UK = 41,529; Australia = 15,523; Mexico = 14,804; Germany = 14,647 and Brazil = 10,767 Neighbours: • Botswana 2,519, Mozambique (1,795) and Namibia (1,191). • The 4th ticketing sales phase started on 9 Feb and ends on 7 April 2010 (400 000 tickets available – then over the counter)

34. Transport and Energy • There is slow progress in this regard • Key issues include: • Operator licensing delays (Interprovincial licensing, municipal capacity etc) • Skilling of operators on tourism • Car rentals – fines (lifting) • Purchasing of generators for stadia and Airport fuel storage capacity.

35. Safety • National Joint Operational plan approval pending - roles and responsibilities clarification between SAPS and LOC (including funding) • Continuous engagements between SAPS and NDT on operations planning • SAPS exploring designation of dedicated officials at host cities • Selected Volunteers to be trained as “reservists” after training – based on language proficiency • Communication model in cases on criminal incidents against visitor under consideration

36. Skills & Service Levels Volunteers • NDT contributing towards the recruitment of +- 20 000 volunteers for 2010 Soccer World Cup. • The module of “Know your country, know your city” has been reviewed to enhance the skills of the Volunteers. • Interviews for volunteer training commenced on 11 January 2010 in host cities and the actual training will take place from 05 March to 18 April 2010. • In as far as deployment of volunteers at host cities level is concerned, the National Department will focus on the Tshwane Metro but will take responsibility to ensure success in all Host Cities. • This approach was successfully also implemented during the Confederations Cup, whereby national officials were deployed at host city level and stadia. CONFIDENTIAL

37. Skills & Service Levels Service excellence Programme… Research Phase completed and the following findings made: • Not knowing who the customer is • Effects of apartheid • Management v/s Leadership issues • Attitude issues • Inadequate training at all levels • Technical focus v/s people focus • Recruitment and selection. CONFIDENTIAL

38. Skills & Service Levels Service excellence Programme… Phase 2 – upskilling to address: (targeting 250 000 front line staff): • Champion service transformation; • Create customer service oriented culture; • Craft solution minded customer service culture; and • Provide human behavior solution. • Volunteer selection at host cities 11 Jan – 27 Feb 2010 • Volunteer training 5 March – 11 April 2010

39. Schedule for Volunteer Selection and Training CONFIDENTIAL

40. Information • GIS information on products and services available on www.tourism.gov.za • Audit of visitor information centers completed, there are 351 Visitors Information centers in the country • Lack of gateway information centers (fan embassies) with National information (to be addressed working with ACSA) • Developing a national “2010 companion” handout to all visitors – (beyond 90 min experience – working with provinces) • Completion of five Visitor Information Centres (Mbombela, Polokwane, Mangaung, Nelson Mandela Metro and Rustenburg)

41. Contact Center • The number is +27 87 803 INFO or (4636) • Launched 08 December 2009 • It provides information on accommodation, attractions, activities, routes, experience, services and restaurants • Emergency numbers are also available on request • In the following languages (Portuguese, Spanish, German, English, French, Dutch)

42. Contact Centre… Continued • Currently the centre operates 24/7 in English • Other languages 09am – 09pm • Leading to event will be 24/7 in all languages • Current capacity 1,000 calls a week and later 10,000 calls a week (01 April) • 01 March – Contact Centre Campaign begins – more demand to be generated • Provinces and host cities were requested to linkup their call centres with the contact centre for after hours and overflow provisions

43. International Marketing • In partnership with the Embassies, road show will be done in all participating countries starting 15 February 2010 • Advertisements running since May 2009 on BBC, CNN, Eurosport and Newscorp (Sky and ESPN) – reaching 1 billion in all continents • Launched the 2010 consumer website August 2009 – www.southafrica.net/2010 and many other digital initiatives • Promoted SA at over 20 international major events/sporting events eg. Euro 2008, WTM, ITB, JATA (Japan), Vakantiebeurts, Trafalgar square; Washington and Chicago, China plus many others. • Hosted over 100 international journalists aimed at promoting SA during major events – eg. Confed Cup, British / Irish Rugby Tour, ICC Champions Trophy • Branded media centre at the final draw, gave information, footage and hosted five post tours of 100 media. • Activations in qualifying countries (Africa, Europe, Asia and Americas)

44. Domestic Marketing • There has been an overwhelming number of requests from corporate SA for diski dance lessons • Partnerships with IMC, GCIS, SABC and other departments for the fly the flag campaign • Partnerships with over 100 organizations in SA to promote the fly the flag and diski campaigns • Reached over 50 000 South Africans through diski campaign activations during Dec 2009 at KZN beaches and SA shopping malls • Road shows in the middle of February 2010 • Adverts on SABC since December 2009 after the draw • Radio campaign – (metro and Safm) • Working with partners and provinces to promote 100 days celebration on 2 March 2010

46. THANK YOU