Enhancing Domestic Tourism Growth Strategy in South Africa

1. BRIEFING ON DOMESTIC TOURISM GROWTH STRATEGY PORTFOLIO COMMITTEE ON TOURISM21 August 2015 Department of Tourism www.tourism.gov.za

2. PURPOSE • To present the Domestic Tourism Strategy, 2012. • To provide progress made regarding the implementation of the Strategy.

3. WHAT IS DOMESTIC TOURISM & PURPOSE OF TRAVEL • Activities of a visitor within country of residence as part of domestic tourism trip and outbound (UNWTO). • Travel by a resident outside his/her usual environment (40 km), and not more than once a week – (StatsSA). • Related purposes include: Visiting Friends and Relatives (VFR), Religious, Business, Holiday and Medical.

4. THE MEASUREMENT OF DOMESTIC TOURISM

5. DOMESTIC TOURISM GROWTH STRATEGY

6. WHY DOMESTIC TOURISM • Assists in maintaining travel and tourism during difficult times globally (sustainability) – maintains the jobs; • It stabilises the cyclical and seasonal flows of inbound tourism; • Provides an indirect way of building a product base for international tourism; and • Creates a tourism culture in the country (critical for the success of all forms of tourism).

7. PROBLEM STATEMENT – DOMESTIC TOURISM GROWTH • Domestic trips have been on the decline since 2009 until 2013. • Domestic travellers have also been on the decline for the same period with the exception of 2011. • Decline in contribution of domestic tourism to internal tourism expenditure (58.9 % in 2011 to 57% in 2013) - TSA • The top five reasons for not travelling remain the following: Affordability, no reason to travel, time constraints, no income/unemployed and dislike travelling. • Lack of culture of travel amongst SA especially the previously disadvantaged, due to limited marketing and limited product development and diversification (considering geographic spread, and seasonality of the broader domestic market).

8. PROBLEM STATEMENT CONT… • Shot 'left campaign too narrow – focus on young and upcoming segment • Limited resources dedicated to tourism • More focus on marketing than other elements such as limited capacity and access • Limited domestic tourism research . • Underutilization of some existing products. • Limited tourism capacity at local government level • Investments not linked to demand • Limited domestic packaging • Inadequate attention paid to the issue of affordability .

9. ENVIRONMENTAL SCANfactors of influence

10. ENVIRONMENTAL SCANfactors of influence

11. NTSS AND DOMESTIC TOURISM VISION To be a top 20 tourism destination in the world by 2020 CLUSTER 2 Tourism Growth & Development 2.1 Demand 2.2 Supply CLUSTER 3 People Development CLUSTER 4 Enablers of Growth CLUSTER 1 Policy, Strategy, Regulations, Governance, and Monitoring & Evaluation ii) Domestic Tourism (2.1 Demand) Lack of travel culture. Limited marketing, product suitability, distribution channels, information access, etc. Market segments – product availability ascertainment. Response: Domestic Tourism Growth Strategy

12. DOMESTIC TOURISM GROWTH STRATEGY OVERVIEW • VISION Growing Domestic Tourism for a Sustainable Tourism Economy • MISSION Promote domestic tourism growth based on a culture of travel; innovation; stakeholder participation; offering authentic, affordable experiences and packages which meet the needs of all potential local travellers. • VALUES Respect for culture and heritage; Responsible tourism; Service excellence; Embrace sector transformation; Accountability; Transparency and Integrity.

13. STRATEGIC OBJECTIVES • Increase domestic tourism revenue. • Increase domestic tourism volumes. • Improve measures and efforts aimed at addressing seasonality and equitable geographical spread. • Enhance the level of the culture of travel and tourism among South Africans.

14. Strategy Objectives and Indicators

16. KEY ACTIONS & TARGETS

17. KEY ACTIONS & TARGETS

18. DOMESTIC TOURISM MARKET SEGMENTATION • Segment 1 – Spontaneous budget explorers • Segment 2 – New horizon family • Segment 3 – High Life enthusiast • Segment 4 – Seasoned leisure seeker • Segment 5 – Well to do Mzanzi family *UP study confirmed adequate product for five identified segments.

19. IMPLEMENTATIONincrease revenue

20. IMPLEMENTATION…..increase revenue

21. IMPLEMENTATIONincrease volume

22. …IMPLEMENTATIONaddress seasonality and geographic spread

23. IMPLEMENTATIONtravel affinity to travel amongst south Africans

24. KEY SUCCESS FACTORS • Strong partnerships and collaborative initiatives (Public and Private) • Effective packaging to ensure competitive pricing, access to information, ease of purchase, quality travel experiences in line with target market needs. • Affordable, safe and convenient access - transport modes • Increased access to affordable tourism facilities by more South African • Awareness - Domestic tourism campaigns rollout. • Focused research on areas with high potential. • Recognise the role of platforms such as travel agents, banks, websites, retailers, mobile phones, etc. • More collaboration for collection and sharing of information for statistical purposes. • Ensure that there is a monitoring, evaluation and reporting mechanism in place

25. RECOMMENDATION It is recommended that the Portfolio Committee • Notes the briefing on the Domestic Tourism Growth Strategy, and • Notes progress made regarding the implementation of the Domestic Tourism Growth Strategy Plan.

26. Thank You