The success of delivering the mandate of tourism lies in different areas

Slide 2:The success of delivering the mandate of tourism lies in different areas � together they form the Tourism Growth Strategy

Slide 3:Mandate and Key Strategic Objectives is the Vision for Tourism

Sustainable GDP Growth Sustainable job creation Redistribution and transformation The Tourism Act�s mandate to SA Tourism is ... . . . through six key objectives . . . . . . by acting in a focused way to . . . Increase in tourist volume Increase in tourist spend Increase length of stay Improve geographic spread Improve seasonality patterns Promote transformation

Slide 4:SA Tourism is responsible for branding and creating awareness - tourism service providers are responsible for the experience delivery

Awareness created by marketing campaigns of industry Awareness created by SAT marketing campaigns Channels: Tour operators, Internet, etc Transport:Airline, rail, car, ship The South African Tourism Product Offering Awareness and desire Delivery and Experience THESE ARE GOVERNMENT LEVEL CHOICES Source: Monitor Group 2. THESE ARE COMPANY- LEVEL CHOICES

Slide 5:Portfolio Review 2008-2010

The most recent portfolio review was conducted in 2007, and produced the following portfolio for the period 2008 to 2010: Given that 60% of all arrivals to South Africa come from five neighbouring states, and that we enjoy dominant share in these markets, the strategy for SADC is principally a �defend strategy� (i.e. retain existing tourists and extract additional value from them). Outside of SADC, however, there is scope to attract smaller high-end leisure volumes which in the long term provide opportunities for growth, especially from East and West Africa. For countries outside of Africa, the focus for South Africa is to leverage all the growth drivers � defend current share and aggressively pursue new growth opportunities. The overseas portfolio is focused on countries and markets that are the most attractive from a volume and value perspective, and from which South Africa can get the greatest yield in the short-to medium-term. In these markets our core challenge is to build awareness and positive perceptions of South Africa as a leisure destination, and to ensure that our information and sales strategies are able to follow through by �closing the deal� and that the consumer travels to South Africa. It is against the different nature of the growth challenges in each of these domains that SA Tourism has invested in-depth market research in order to ensure that our marketing efforts are focused on the highest-yield consumer segments (who are interested and positive about our country), and against the drivers of growth that are appropriate in each chosen market. To date, SA Tourism has segmented most focus markets.

Slide 6:SA Tourism portfolio 2008 � 2010: The domestic market is a core market that forms the base on which the tourism growth is built

Country Manager Portfolio Manager Stakeholder Manager Global Channel Manager Responsibility

Slide 7:Market Overview

Slide 8:Arrivals to South Africa for 2009 grew by 0.8% over the same period in 2008 to reach 4,014,065. This slow growth was largely driven by a decline of 11.7% in Overseas markets.

AFRICA 3,145,695 arrivals 4.6% up from 2008 Central & South America 24,721 arrivals 4.2% down from 2008 North America 118,966 arrivals 12.4% down from 2008 Europe 543,364 arrivals 12.9% down from 2008 Asia 83,436 arrivals 6.7% down from 2008 Australasia 43,354 arrivals 8.0% down from 2008 Middle East 16,962 arrivals 8.5% down from 2008 Note : Arrivals figures shown above for May 2009 Source: Table A May 2009 May 2009 7,893 arrivals 0.2% down from 2008 Indian Ocean Islands

Slide 9:Arrivals increased by 0.8% in 2009 compared to 2008. This increase was driven by an increase in Africa Land, while all other markets decreased.

Arrivals Arrivals to South Africa by Region, January to May Source: Table A May 2009

Slide 10:Australia saw approximately 2,281,600 arrivals from January to May 2009 compared to South Africa�s 4,014,065 arrivals. Australia saw a slight decline while South Africa recovered slightly.

Arrivals Source: Visitor arrivals, ABS; Table A May 2009 YTD growth

Slide 11:Strategy in Action

Slide 12:It�s our unique combinations of People, Place, Culture, diversity and ubuntu that makes South Africa so different � so breakthrough � so Possible

Natural & Physical PEOPLE Cultural & Historical EXPERIENCES WE MARKET EXPERIENCES WE MARKET

Slide 15:Overview of the SAT Brand Strategy � Brand Audiences

SAT has conducted extensive research with target audiences aimed at: Identifying key attractions/experiences. Identifying segments with the most traction for our brand. Discovering the insights that motivate behaviors and experiences in those individuals. Finding common ground between segments to develop a center of gravity for marketing � a focal point for the brand. Centre of Gravity Centre of Gravity Rationale - COG allows us to connect effectively with multiple stakeholders. - Focal point renders the brand more inspirational to audiences and more attractive.

Slide 16:Overview of the SAT Brand Strategy � Brand Audiences

WANDERLUSTER NSSA CENTRE OF GRAVITY Well travelled, worldly Independent Travellers not tourists Travel is a state of mind Essential part of life Global citizens Travel to expand knowledge, to evolve Intimate engagement High quality interesting experiences Maintain control over decisions, travel and own destiny

Slide 18:Driving our creative idea across our consumer & trade platforms

Meetings Africa

Slide 19:Driving our creative idea with our Global Media Partners

Slide 22:Background

Domestic travel is important due to the following reasons: Provides significant value to the South African Economy Has untapped value and potential fro growth Provides the base load for International markets Main objectives of domestic travel are: Increase expenditure through promoting more leisure trips and encouraging travelers to increase length of stay Reduce seasonality by promoting all year round travel Improve the geographic spread of tourism by encouraging more destinations and activities Increase volume

Slide 23:Strategy for Domestic Tourism

3. Distribute appropriate information in specific areas Tourism product and experiences to be available through traditional and non traditional media 2. Promote a set of experiences that relate to South African Consumers Highlight experiences that are relevant to the chosen segment 1. Greater promotion of the Domestic Tourism Brand Create a holiday Culture amongst all South Africans through making travelling �sexy� 4. Facilitate the development of co-operative product information Work with Provincial Tourism Authorities to package products that will convert interest into action 5. Develop marketing and distribution channel Greater marketing of product through traditional and non=traditional media 6. Promote repeat visitation Customer relationship Management to encourage repeat visitation

Slide 24:Background on Sho�t Left

Sho�t left was launched 6 years ago The programme�s main objective is to promote domestic travel Sho�t left has its origins in instructions given by passengers to taxi drivers, but is now used universally for �quick stop�. The business planning process reveled that it is important to refocus the programme starting with redefining the target audience � Young and Upcoming are emerging travelers who have a lifetime value in helping us create a culture of holiday travel in SA. It is a large segment (5,1m). They do currently travel, even though holiday travel is limited, so it is easier to activate and there�s opportunity to grow

Slide 25:Domestic Travel programme � strategic direction

Strategic Approach To credibly communicate the benefits of travel and the fact that it is accessible and affordable, in a way that creates an emotional connection with the South African consumer and ultimately gets them to travel Key Barriers No culture of holiday travel lack of knowledge of SA as a leisure destination Campaign Objective Build SA as a leisure destination among South Africans Big Idea Fun with Friends (Sho�t Left) Optimal Communication Channel TV, Print, Radio, Digital

Slide 29:SHO�T LEFT MARKETING CALENDAR 2009/2010

Slide 30:SHO�T LEFT MARKETING CALENDAR 2009/2010

Slide 31:SHO�T LEFT MARKETING CALENDAR 2009/2010

Slide 33:Introduction to Business Tourism

Business Tourism refers to a trip which is undertaken with the purpose of attending a conference, meeting, exhibition, event or as part of an incentive trip, SAT focuses on attracting international market. Globally, the traditional Business Tourism markets are large and attractive � market size estimated at over US$100bn. For SA, Business Tourism currently contributes about 7% to total foreign arrivals (2008) which is about 600 000 tourists, an increase of 20% from 2007. In terms of spend, average direct spend in SA for every business tourist per trip amounted to R5,600 in 2008 vs R4,700 in 2007 Africa as a continent currently captures a small proportion of the international conferences held annually at between 3-5% market share, however SA accounts for 43% of the meetings held in Africa. The market can be divided into 3 segments: Associations/Academic Meetings, Inter-Governmental Meetings and Corporate Conferences SAT�s role is to work with international organisations to encourage them to choose SA as their next destination for their international meeting, by providing them with relevant information and providing support during the bidding process SAT has acquired Meetings Africa as a platform to grow business tourism into SA and to grow the sector.

Slide 34:SA Tourism focuses on international BT market

Business Tourism (A trip which is undertaken with the purpose of attending a conference, meeting, exhibition, event or as part of an incentive) Domestic Business Tourism Conferences, meetings, exhibitions, events or incentives with a purely domestic audience Exhibitions with a purely domestic audience Local government meetings South African Associations meetings Local corporate meetings / off sites A large and lucrative market that should not be neglected Responsibility of provincial and local tourism authorities to target and develop Not the focus for SA Tourism Global Business Tourism Conferences, meetings, exhibitions, events or incentives with an international audience Regional / global exhibitions Inter-governmental meetings at regional or global level Regional/global association meetings Corporate meetings involving participants from more than one country Incentive trips for employees from outside South Africa Highly competitive global industry SAT�s Business Tourism Unit Focus for SA Tourissm

Slide 35:Africa as a continent currently captures a small proportion of the international conferences held each year

Market Share Per Continent by Number of International Conferences (1996�2000) Note: ICCA definitions and rankings applied Source: International Congress and Convention Association (ICCA) Africa�s market share has remained fairly stable

Slide 36:However� The total number of meetings held in Africa has increased from 1998 to 2007 from 124 meetings to 155. The total number of meetings in SA is at its highest level to date at 82 meetings.

SA�s % of Africa Market In 2008, SA has 43% of the total Africa market. South Africa�s country ranking: 34 in 2008 Source: The International Associations Meetings Market 1998 - 2007 Africa / South Africa

Slide 37:The meetings market can be divided into 3 segments 

Corporate Meetings Association / NGO and Academic Meetings Inter-Governmental Meetings Meetings of representatives of governments and government institutions Usually within multi-lateral or regional organisations / institutions, to negotiate relationships, set regional policy on key issues or set regional investment agendas IGO meetings can be segmented into regional, international and large international meetings Business-related meetings of private companies, sometimes including customers, suppliers and other external role-players Sometimes include other corporate events such as exhibitions and product launches Meetings of professional associations, industry associations, non-governmental organisations and academic groups Exchange information, network with other professionals Learn and develop their subject areas Association meetings can be separated into Small, Medium and Large categories

Slide 38:Target Segment 1: Associations Global and Regional Associations with significant engagement with South Africa Global and Regional Associations with South African senior representation Target Segment 2: Inter-Governmental Meetings (IGOs) Meetings of representatives of governments and government institutions Usually within multi-lateral or regional organisations / institutions, to negotiate relationships, set regional policy on key issues or set regional investment agendas IGO meetings have been segmented into regional, international and large international meetings Target Segment 3: Corporate Meetings & Incentives South African Companies doing business internationally International Companies with significant investment in South Africa Incentive Houses that have previously sent groups to South Africa Incentive Houses that have highest market share of Business Tourism market globally and regionally

Our marketing efforts are focused on the following segments in order of priority

Slide 39:Meetings Africa - previously known as the Business Travel Expo - ICT Incentives, Conferences & Travel and was launched in 2003, the name was changed to Meetings Africa in 2005 SAT acquired Meetings Africa the end of 2007, in order to accelerate growth of Business Tourism in SA. Its primary objective is to promote South Africa as a premier business tourism destination to the inbound market. Meetings Africa is supported by Gauteng Tourism Authority, Johannesburg Tourism Company and Sandton Convention Centre It targets Local corporates & Govt Departments events/meeting organisers and their agencies, International Meetings Buyers - (Associations, IGO�s, corporate and Incentive houses) It allows the visitor (domestic /international) to gain maximum value on how they can be assisted by the meetings industry to plan, execute and deliver exceptional and unique meetings, conferences and events Meetings Africa has an international hosted buyers programme partly sponsored by the DTI EMIA mission fund, where over 100 meetings buyers are invited to attend Meetings Africa. Networking opportunities via various events and educational seminars � open to exhibitors and buyers Runs over 2.5 days, end Feb annually, 24 � 26 February 2010, at Sandton Convention Centre

Meetings Africa as a lever to grow Business Tourism into SA

Slide 40:Upcoming Events/Meetings - bids won for next 3-4 years