South African Tourism – Destination marketing

1. South African Tourism – Destination marketing Roshene Singh Sep.08, 2009

2. The success of delivering the mandate of tourism lies in different areas – together they form the Tourism Growth Strategy Transformation Safety 8. Safety and Security, Department of Health, Department of Transport 7. TECSA and DEAT Skills & Service Levels Product and SMME 1. Tourism Enterprise Programme with DEAT 6. Theta and DEAT Tourism Growth Strategy Transport Marketing & Branding 5. Department of Transport (land and air) Incentives and Investment 2. South African Tourism Quality assurance 4. The dti 3. Tourism Grading Council, Register of Guides (DEAT and provinces)

3. Understand the market Choose the attractive segments Market the Destination Facilitate the removal of obstacles Facilitate the product platform Monitor and learn from tourist experience Mandate and Key Strategic Objectives is the Vision for Tourism The Tourism Act’s mandate to SA Tourism is ... Sustainable GDP Growth Sustainable job creation Redistribution and transformation Increase in tourist volume Increase in tourist spend Increase length of stay . . . through six key objectives . . . Improve geographic spread Improve seasonality patterns Promote transformation . . . by acting in a focused way to . . .

4. SA Tourism is responsible for branding and creating awareness - tourism service providers are responsible for the experience delivery Awareness and desire • THESE ARE GOVERNMENT • LEVEL CHOICES Awareness created by SAT marketing campaigns Delivery and Experience Channels: Tour operators, Internet, etc The South African Tourism Product Offering Transport:Airline, rail, car, ship Awareness created by marketing campaigns of industry 2. THESE ARE COMPANY- LEVEL CHOICES Source: Monitor Group

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.

6. SA Tourism portfolio 2008 – 2010: The domestic market is a core market that forms the base on which the tourism growth is built Responsibility Country Manager Portfolio Manager Stakeholder Manager Global Channel Manager

7. Market Overview

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

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

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

11. Strategy in Action

12. It’s our unique combinations of People, Place, Culture, diversity and ubuntu that makes South Africa so different – so breakthrough – so Possible Cultural & Historical Natural & Physical EXPERIENCES WE MARKET EXPERIENCES WE MARKET PEOPLE

13. Unique combinations DIVERSITY POSSIBILITY UBUNTU Mile wide. Mile deep Real wild to pampering Diverse Flora + Fauna Diverse Icons ‘Breathtaking’ World Class Discovery/Untouched Trans frontier Parks Urban Vibe Pampering/Affordable Luxury Eco Tourism Conservation of biological + cultural diversity Local culture, flora + fauna are main attractions New ways to live PLACE Embracing/Helpful Camaraderie Hospitality/Inclusiveness Welcoming/Show/Engage Close encounters/ Community Tourism Boundary Breakers Fresh/ Young/Winning Spirit Can Do Ness/Creativity Beat/Fun Innovation Freedom Vibrancy/Energetic Adventurousness Strength in Diversity Rainbow Nation Colorful + Fun Risk taking PEOPLE Europe/Africa/East Many Languages, Traditions/Legends Cultural Fusion Cross cultural (old + new) Cultural Richness New Perspectives Progressive Culture Africa’s Call/Beat Enrichment/Growth African Renaissance Cultural Fusion Unity/Reconciliation South Africa’s Humanity Realness/Authenticity Soul of Africa CULTURE

14. Our vision = your ideal holiday “So much to do! So much to tell. I felt there was the broadest range of experiences available to me, I have the freedom to choose for myself how, what and when I will partake from the widest variety of inspiring new and different ways” MEMORABLE DIVERSITY POSSIBILITY UBUNTU “It’s the people that make the holiday, if they support me, engage me and show me their world” WELCOME “I desire an experience that I can own, something that allows me to grow as person, opens something in me and makes me feel bigger” ENRICHING “WOW, unbelievable, beyond spectacular” BREATHTAKING "Its all about breaking my routine, experiencing something out of the ordinary - Out of My World” ADVENTURE + FUN “ I seek to be moved by something interesting about a country and its people, less from the "touristy" sites and monuments but more from enjoying the local culture and contemporary lifestyle“ CUSTOMS + LIFESTYLES “Being in the natural world is so refreshing, I felt connected. In some placesthey have ensured that it is unspoilt, untouched, unadulterated“ NATURE + WILDLIFE PLACE PEOPLE CULTURE

15. Employees Investors Trade Partners Press Consumer Target Segment #1 Consumer Target Segment #2 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 Rationale - COG allows us to connect effectively with multiple stakeholders. - Focal point renders the brand more inspirational to audiences and more attractive. Centre of Gravity

16. Overview of the SAT Brand Strategy – Brand Audiences 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 WANDERLUSTER NSSA

17. Consumer Insight “I see myself as a traveller; an explorer who wants the excitement of new and different experiences, but on my terms. Continually exploring through travel lets me expand my world.” Creative Insight The mark of great travellers are the stories they bring home. Big Idea Come and Create Your South African Story. Resonance with Essence Breaking New Ground Positioning Statement South Africa – “It’s Possible”

18. Driving our creative idea across our consumer & trade platforms Meetings Africa

19. Driving our creative idea with our Global Media Partners NAT GEO “Though the Camera’s Lens” Authentic, breakthrough South African experiences. CNN “My South Africa.” Consumers upload & create their own gallery of experiences,images & videos – “My SA experience page” with an itinerary function EUROSPORT “Stories from SA sports Icons.” Positioning SA as an event and leisure destination. Come and Create Your South African Story BBC “South African Odyssey’s/Journeys.” Creating and winning the ideal SA story-journey. NEWSCORP “Leverage 2010 FIFA World Cup”

20. SA Performs Well Neutral SA Performs Poorly Enriching Enriching (+8%) Breathtaking Breathtaking (+4%) Value for Money Safety & Security Why is our WOM so important in our Marketing Strategy? Safety & Security and Value for Money show the highest improvement after visitation Not having visited South Africa After visiting South Africa Memorable Memorable (+5%) Adventurous Fun Relaxing Adventurous (+1%) Fun (+14%) Relaxing (+21%) A Wide Variety of Experiences A Wide Variety of Experiences (+6%) A Natural Wildlife Experience Friendly / Welcoming People History and Culture Nature Wildlife (+0.1%) Friendly / Welcoming People (+19%) History and Culture (+8%) Value for Money (+23%) Safety & Security (+31%) Source: SAT Brand Tracking Surveys – Feb-2005, Nov-2005, Nov-2006, Feb-2007, Monitor Group Analysis

21. DOMESTIC MARKETING SUMMARY September 2009 Phumi Dhlomo Regional Director Africa & Domestic

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

23. Strategy for Domestic Tourism 1. Greater promotion of the Domestic Tourism Brand Create a holiday Culture amongst all South Africans through making travelling “sexy” 2. Promote a set of experiences that relate to South African Consumers Highlight experiences that are relevant to the chosen segment 3. Distribute appropriate information in specific areas Tourism product and experiences to be available through traditional and non traditional media 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

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

25. Domestic Travel programme – strategic direction Campaign Objective Build SA as a leisure destination among South Africans Key Barriers No culture of holiday travel lack of knowledge of SA as a leisure destination 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 Big Idea Fun with Friends (Sho’t Left) Optimal Communication Channel TV, Print, Radio, Digital

26. Domestic Tourism MarketExecutive Summary (1/2) The Domestic Market is important - and will become more so in future The South African population travel within the country … • 46.5% of South Africans undertake travel each year • On average, domestic travellers take 2.4 trips per year … generating huge volumes … • Domestic travelers generated a total of 33 million trips in 2008, compared to 9.6 million generated by foreign arrivals … and significant value • In 2008, domestic tourists spent R 25.8 billion, compared to a total direct spend of R 74.2 billion spent by foreign tourists BUT, the market is still emerging …

27. Domestic Tourism MarketExecutive Summary (2/2) There is opportunity to grow holiday travel which accounts for 16% of volume and 39% of revenue Where the Volume is • 30% of all trips originate from Gauteng, 26% originates from KZN • The highest rates of holiday travel incidence are found in the Western Cape (25% of adults) and North West (44% of adults) Where the Value is • 27% of the domestic tourism spend comes from Gauteng • The highest spenders per trip are from the North West and Gauteng Holiday travel is the future • Holidays made up only 5.2 million trips in 2008 (16%), BUT • Contribute 39% to the total domestic tourism spend (an average of R 1,916 per trip compared to R 488 for VFR), … • Have a high average length-of-stay (5.1 nights compared to 4.2 for VFR)

28. Sho’t Left 2009 marketing campaign

29. SHO’T LEFT MARKETING CALENDAR 2009/2010

30. SHO’T LEFT MARKETING CALENDAR 2009/2010

31. SHO’T LEFT MARKETING CALENDAR 2009/2010

32. South Africa as a Business Tourism Destination: Presentation to the Portfolio Committee Nomasonto Ndlovu Sept. 08, 2009

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.

34. The meetings market can be divided into 3 segments 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 Corporate 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 Association / NGO and Academic Meetings • 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

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

36. 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

37. Upcoming Events/Meetings - bids won for next 3-4 years