SA Tourism's Strategic Plan 2015/16-2019/2020: Vision, Mandate, and Performance

1. Briefing to the Select Committee by South African Tourism on the Strategic 2015/16 to 2019/2020 Plan and Annual Performance Plan 2015/16 27 May 2015

2. 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 Contents

3. Vision and Mission Vision Mission 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

4. Engage Stakeholders to deliver quality visitor experience that re-affirm the brand promise Invest only in selected markets/ decision centres to deliver volume and value Convince consumers/ clients that SA can be trusted to deliver memorable experiences & successful business events Energise and empower the organisation to innovate and achieve excellence Work the distribution channel to promote SA 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 Strategies to deliver expected outcomes Set up regional hubs to increase market penetration Slide no. 3 Page 10 – Strategic Plan 2015 - 2020

5. 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

6. Strategic Objectives Page 25 -34: Strategic Plan

7. Strategic Outcome Oriented Goals Page 34 -36 – Strategic Plan

8. Strategic Outcome Oriented Goals Page 34 -36 – Strategic Plan

9. Strategic Outcome Oriented Goals Page 34 -36 – Strategic Plan

10. Strategic Outcome Oriented Goals Page 34 -36 – Strategic Plan

11. Annual Performance Targets 2015/16 and beyond

12. Annual Performance Targets 2015/16 and beyond Slide no. 11 Page 11 - APP

13. Annual Performance Targets 2015/16 and beyond *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. Slide no. 12 Page 11 - APP

14. Budget Allocation Page 25 -34: Strategic Plan

15. Overview Of 2015/16 Budget and MTEF Estimates

16. Graphical Representation of Overview of 2015/16 Budget and MTEF Estimates Strategic Plan & Annual Performance Plan (2015/16 & Beyond) Slide no. 15

17. Breakdown of Budget Per Objective

18. Graphical Representation of Breakdown of Budget/ Objective

19. Budget Interventions • Upfront payment to foreign country budgets to manage the risk of currency exposure • Request budget rate from Treasury • Budget in foreign countries

20. SA Tourism’s strategy is to: • convince consumers/ clients that South Africa can be trusted to deliver memorable experiences and successful business events. Page 25 -34: Strategic Plan Slide no. 19

21. National Convention Bureau Focus Areas M • Corporate Meetings: Number of delegates at international corporate meetings I • Incentive meetings: Number of attendees at international incentive meetings C C • International conventions: Number of attendees at international conventions • International conventions: Number of attendees at international conventions E E • Exhibitions: Number of international attendees at trade exhibitions • Exhibitions: Number of international attendees at trade exhibitions Slide no. 20

22. 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.

23. 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.

24. 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 1 9 • Limpopo • Key Industries:Mining, tourism (game reserves), agriculture and hunting industry / game farming • 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 9 8 • Mpumalanga • Key Industries: Mining (Coal), agriculture (citrus fruit production, agri-processing and sheep farming), tourism (eco-tourism), game farms and manufacturing 1 8 2 7 2 • North West • Key Industries: Mining (mainly Platinum), tourism (game reserve, nature reserve, etc.) and agriculture 3 6 7 • Free State • Key Industries: Mining (Gold, Coal and Diamond), agriculture, petrochemicals and manufacturing (high-tech industries) 3 • Northern Cape • Key Industries: Mining (mainly Diamonds, Iron-ore), tourism, game-farming, astronomy and agriculture 5 4 5 6 KwaZulu-Natal • Key Industries: Mining (Aluminum, Steam Coal, Minerals), manufacturing (petro-chemicals, automotive), tourism, ports, leather industry and agriculture, real estate, medical1 Eastern Cape • Key Industries: Automotive manufacturing, finance, real estate, agriculture (sheep farming and fishing), wholesale and retail trade, tourism, ports5 and hotels and restaurants 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 Slide no. 23

25. National Convention Bureau Services SANCB SUPPORT SERVICES • Convention Planning Support • Planning support • Venue and supplier recommendations • Final decision with client • On Site Event Services • Support toward on site elements of the event • Bidding Support • Bid Strategy • Bid Document • Lobbying • Bid promotion • Bid Presentations • Site Inspection Support • Bidding Site Inspections • Convention Planning Site Inspections • Delegate Boosting Support • Marketing support to promote the SA conference • Delegate attendance promotion Slide no. 24

26. SA Tourism’s strategy is to: • invest only in selected markets/ decision centres to deliver volume and value. Page 25 -34: Strategic Plan Slide no. 25

27. Leisure Tourism Market Portfolio - 01/04/2014 – 30/03/2017

28. SA Tourism’s strategy is to: • set up regional hubs to increase market penetration. Page 25 -34: Strategic Plan

29. Hub Strategy Approach Hub implementation is aligned to the current market portfolio 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.

30. 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).

31. Reviewed Hub Strategy Implementation – Budget and Market Portfolio

32. SA Tourism’s strategy is to: • work the distribution channel to promote South Africa. Page 25 -34: Strategic Plan Slide no. 31

33. 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)

34. Leisure Tourism Marketing – Global, Africa and Domestic Tourism Global Slide no. 33

35. 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.

36. 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.

37. Leisure Tourism – Global, Africa and Domestic Tourism Africa

38. 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.

39. Leisure Tourism – Global, Africa and Domestic Tourism Domestic

40. 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.

41. SA Tourism’s strategy is to: • engage stakeholders and partners to deliver quality visitor experience that re-affirm the brand promise. Page 25 -34: Strategic Plan

42. 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. Quality Grade Establishments accurately Recognise Great Performing Establishments • StrategicObjectives Strategic Goals • Continually enhancing the credibility and skills of the GradingAssessors • 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 2 1 3 4

43. 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.

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

45. TGCSA Stakeholders National Department of Tourism(NDT) Tourists (domestic & international) Key Stakeholders Assessors Establishments Fedhasa, TBCSA, NAA, SATSA etc Trade

46. SA Tourism’s strategy is to: • engage stakeholders and partners to deliver quality visitor experience that re-affirm the brand promise. Page 25 -34: Strategic Plan

47. 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

48. 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 HOTELS TRANSPORT & LOGISTICS CO. IMMIGRATION RESTAURANTS & OTHER PRODUCTS MEDIA (International & Local) *Welcoming *Graded *Meet customer experience expectation Legitimacy Pricing Reliability Warmth of our people Good service Pricing Contextualised & Positive Reporting Friendly visitor welcome StatsSA – Accurate Tourism Stats WTTC-Jan 2013

49. SA Tourism’s strategy is to: • energise and empower the organisation to innovate and achieve excellence. Page 25 -34: Strategic Plan

50. 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.