AMAJUBA TOURISM SAFETY AND AWARENESS SMALL BUSINESS DEVELOPMENT WORKSHOP 30 October 2008

1. AMAJUBA TOURISM SAFETY AND AWARENESS SMALL BUSINESS DEVELOPMENT WORKSHOP 30 October 2008 Presented by : Vukile Khuzwayo Project Manager Safety and Awareness Workshop

2. Purpose of the day • Safety and Awareness issues • Small Business Development Issues

3. The Global Picture

4. The Growth of the South African Foreign Market Foreign Tourist Arrivals to South Africa, 1965-2005 7,4 million arrivals in 2005 9/11 Rugby World Cup First Democratic Elections Sanctions against South Africa lifted Arrivals, millions Nelson Mandela released State of Emergency Sanctions Era 1998 onwards - Cyclicality • Global events, currency volatility drive uncertainty and short-term strategy by firms • Investment rates remain weak overall 1970s and 80s - Stagnation • Stagnation drove low investment, focus on narrow white domestic market and costs 1990-1998 - Growth • Initial period of short-term profit-taking followed by period of investment growth and entry of foreign players

5. The growth in KwaZulu-Natal’s Foreign Tourism Market

6. Click to edit Master title style Growth in terms of KZN’s Overseas and African market that arrived in RSA by air • Click to edit Master text styles • Second level • Third level • Fourth level • Fifth level 6

7. The nature of KZN’s foreign tourism market Leading Regional Markets: - Swaziland - Lesotho - Botswana - Zimbabwe - Mozambique Leading Overseas Markets: - UK - Germany - USA - France -Netherlands

8. KwaZulu-Natal has a significant share of the South African Domestic Tourism Market • USHAKA MARINE WORLD

9. Overall Contribution to the KZN Economy - 2006 Direct contribution: R12bn Total contribution: R17 bn Contribution to GGP:+/-10% Direct Employment: 77 000 Total Employment: 120 000

10. KZN’s hospitality industry performed relatively well if adverse economic conditions are considered….the power of events & the domestic marketLories+/-R23mnDurban July at least R206mn

11. On the downside KNZ’s Foreign Market continued to decline…. • 13.8% visited KZN in Q1 vs16.1% in Q1 2007 • Value of spend R2bn vsR2bn in Q1 2007 • Increase in bed nights though • -6.4% decline in DIA passenger movements for period up until end of August.

12. Going forward … a need for more aggressive brand conversion…awareness, sales and the extended marketing mix Current economic situation will dampen tourism flow; On upside…upper-end of domestic market will tend to travel domestically…advance bookings for Durban Hotels looking good for Christmas–major groups are reporting70-80% occupancies for festive period already! Currie Semi-Finals, AmaShovaShova and Currie Cup Final area welcome bonus…and emphasize the value of events in periods of‘ downturn’. Currents situation highlights the need for more aggressive brand conversion–particularly a sales approach and an emphasis on the extended marketing mix which leads to that special experience which tourists desire and spread throughout.

13. THANK YOU !