4. There are more than 6,6 billion people in the world …
DO ALL
OF THEM
WANT TO
COME TO
SOUTH
AFRICA?
And since we don’t give
away holidays to our
country, can they afford it?
6. SA continues to outperform global tourism growth, which declined by
4.3% in 2009 while arrivals to South Africa grew by 3.6%
Note: UNWTO estimates incorporate provisional data for some regions
Source: Statssa Tourism & Migration release December 2009, SAT analysis; UNWTO World Tourism Barometer, Jan 2010
Year-on-Year Change in Foreign Arrivals to each region
%Change
2008Arrivals
(Millions)
9.6 45.7 184.1 487.1 55.6 147.1 920
2009 Arrivals
(Millions)
9.9 48.1 180.5 459.7 52.5 139.6 880
10. CountryManager
RegionalDirector
Stakeholder
Manager
Global
Channel
Manager
Responsibility
Note: Markets marked with an asterisk indicate business tourism hubs.
But...we needed to know where to play. The portfolio review provides the answer to
this strategic question and is refreshed every 3 years to ensure that we invest for the
greatest returns.
AFRICA AMERICAS & the UK ASIA & AUSTRALASIA EUROPE
CORE MARKETS Angola
Botswana
Kenya
Nigeria
South Africa*
USA*
UK*
Australia*
India
France*
Germany
Netherlands
INVESTMENT
MARKETS
DRC
Mozambique
Brazil
Canada
China (including Hong Kong)
Japan
Italy
Sweden
TACTICAL
MARKETS
Lesotho
Swaziland
Ireland New Zealand
WATCH-LIST
MARKETS
Malawi
Namibia
Zambia
Zimbabwe
Argentina Republic of Korea Belgium
Switzerland
Spain
STRATEGIC
IMPORTANCE
Bahrain, Oman, Qatar,
Saudi Arabia
STRATEGIC
LINKS/HUBS
Egypt, Ethiopia,
Ghana, Senegal,
Tanzania, UAE
Malaysia
Singapore
Portugal
11. Core Markets
Angola
Botswana
Kenya
Nigeria
USA
UK
Australia
India
France
Germany
Netherlands
South Africa
Tactical Markets
Lesotho
Swaziland
Ireland
New Zealand
Investment Markets
DRC
Canada
China
Japan
Italy
Sweden
Mozambique
Brazil
Watch-List Markets
Malawi
Namibia
Zambia
Zimbabwe
Belgium
Korea DPR
Korea Republic
Spain
Argentina
Switzerland
Strategic
Importance / Hubs
Bahrain
Oman
Qatar
Saudi Arabia
Ethiopia
Egypt
Tanzania
Malaysia
Senegal
UAE
Ghana
Singapore
Portugal
Participating Countries
A large number of participating countries were from
South African Tourism’s key source markets
Participating countries not part of SAT Portfolio: Uruguay, Greece, Algeria, Slovenia, Serbia, Denmark, Cameroon,
Paraguay, Slovakia, Cote d’Ivoire, Honduras & Chile
12. Core Markets
Market presence
ATL + BTL
promotions
2010 activations
Media hosting
JMA with trade
TV & cinema
Tactical Markets
Limited
educational
trade workshops
Media hosting
TV & cinema
Investment Markets
JMA with trade
Media hosting
TV & cinema
Watch-List Markets
Print advertorials
Media hosting
Limited
activations
TV
Strategic
Importance / Hubs
Opportunistic
activations
Partnership with
embassies
TV
SA Tourism Role in Markets
13. However: Business Tourism not the same as
Leisure tourism…
• Business Tourism approach does not follow leisure portfolio approach.
• Cognisant that the fact that with our key focus being the Associations & IGO
segments – we need to focus on their HQ and do more work in those
markets
• We have Business Tourism hubs: Europe, UK & Ireland,
Australia/Ausralasia; and USA/Canada and we have access to the country
resources in other markets as needed and also our embassies.
• It envisaged that with the National Conventions & Events Bureau that this
will strengthen our international operations.
• We want to intensify our efforts around Meetings Africa as a lever to further
build on the SWC infrastructure legacy and grow business tourism.
15. Post the SWC...what we know for sure
• Our mandate remains..i) Sustainable GDP Growth ii) Sustainable job creation iii)
Redistribution and transformation.
There is no time like now to visit SA as we now have another reason to believe i.e.
successful hosting of the 2010 Football World Cup (infrastructure, key experiences &
welcoming people). This evidence will assist us in our strategy to engage and convert
more visitors as opposed to just building awareness in the Global space.
Business Tourism is the key beneficiary of the SWC infrastructure: improved
accessibility, additional capacity – accommodation and conference venues, better
security, improved IT infrastructure...all key elements for BT
However, we need to continue building Global awareness via key global partners viz,
CNN, BBC World, Fox International (Sky News/Sports & ESPN), National Geographic,
EUROsport and Global Cinema. Our investment of R88 Million Rand ($11.8 Million) will
ensure that we reach just over R1.4 Billion consumers in the 2010/11 fiscal.
The big job post the World Cup is to convert WC awareness into arrivals to continue to
upward trend in overall arrivals to South Africa.
16. Lessons Learnt
• Excellent partnership approach at national level but challenges at coordinating
provincial and host city initiatives
• Strong coordination of effort and communication messages was required nationally
for a successful hosting of SWC
• In phases 1 and 2 most of the communication focused on addressing negative issues
and convincing the world of our ability to host a successful event
• Generic domestic campaigns with no restrictions resulted in greater support from
corporate organizations and the South African public
• Success of the world cup must inform future campaigns aimed at capturing the
experiences of visitors during the event
• Excellent cooperation between the tourism and sports industries need to be
encouraged and result in positioning SA as a mega events destination
• South African People made the SWC a huge success- our unique combinations:
people, culture and place + excellent infrastructure!
18. Post 2010 Event Strategy
National Events Bureau
• Minister of Tourism announced establishment of an Events Bureau within SAT in his 2010 budget speech
• Appointed international expert to conduct study aimed at setting up unit
• Study to analyse best practice, review current strategies & recommend type of unit to be established
within SAT with key focus areas and resource allocation requirements
• Unit to focus on meetings, conferences, sport and lifestyle events
• Draft report to be made available for comment by Oct 2010
Sports Bidding Strategy
• Partnership project with SRSA / SASCOC / NDT & SAT
• Draft report completed and needs stakeholder consultation
• Aim is to define criteria to support bids to host mega sports events, understand capacity of cities to
host such events, identify key international events to pursue, provide a tool kit to support bids, define
structural coordination in bidding processes and examine need for a National Bidding Fund – based on
best practice
• SAT to be a key partner in this process
Sports Tourism Exhibition
• Exhibition to encourage closer cooperation between tourism & sports sectors to be hosted in Cape
Town in July 2011 aimed at show casing our ability to host mega international events in SA
• Partnership between SAT / Thebe Exhibitions / Cape Town
19. Convention Bureau: What is it?
The Convention Bureau’s primary responsibility is to market
and sell the destination
“A Convention Bureau is a destination’s marketing body,
and its main focus or purpose is to increase the number of
events, conferences and meetings held in the destination;
whether a city, a region or a country” (ICCA)
A Convention bureau is starting point for anyone who wants
to organize a meeting, a congress or event in a specific
destination
20. Establishment of National Convention & Events Bureau - Market
Reality Testing
Market conditions
Trends
Strategic opportunities
Stakeholder views Customer Views SAT Views
Alternate delivery approaches / outsourcing opportunities
Leveraging opportunities at events in South Africa and overseas
Pros and cons of national convention and events bureau
Roles of other organisations and possible support mechanisms
Competition / SWOT
Views on the positioning / branding of South Africa
Project Plan
Views on current SAT strategy to support events
21. South Africa
Australia
Brazil
Singapore
Canada
Ireland
Germany
Best Practices Case Studies
Events performance metrics
o Outcomes – events secured
o ROI / Social & Econ Impacts
Leveraging techniques
Investment levels
Funding levels and sources
Event development structures
o Operational approaches
o Roles of key players
Resource comparisons
o Events v Conventions
Bid processing
Bidding fund
o Management and Ops
o Subvention criteria
UK Scotland
23. In conclusion: Strategic Focus going forward:
Business Tourism
1. Aggressively, grow Meetings Africa as a platform to showcase SA
as a business tourism destination
2. Equip national associations to bid for international congresses –
more aggressive approach.
3. Align the association activities with national and private sector
priorities in order to get bidding support & position South Africa
as the destination for conventions and congresses
4. Identify & partner with trade/ corporates to attract more
conferences and incentives
24. The high-level goals of SAT are met along several
dimensions by business tourism
Business tourism is not a large market in comparison to the leisure market
However, there is strong growth in the market in South Africa
Business tourists are not attractive on a total spend basis when compared to other
categories of travellers, but on a spend per day level they perform well
In absolute terms, spend by business tourists has shown significant fluctuation in
the last few years
BUT Golfers spenf 7 to 10 times more than usual tourist
The length of stay of business tourists is in general shorter than for other visitor
types
However there is an opportunity to increase length of stay by encouraging pre- and
post-tours to extend length of stay
BUT Golfers prefer longer stay t to play a few rounds of golf per trip
Business tourists are less likely than leisure travellers to move around the country
However, a coordinating body could ensure more equitable spread of events,
especially with facilities opening in Bloemfontein and elsewhere
BUT opportunity to cross sell other destinations across the country
The meetings market in particular is attractive from a seasonal distribution
perspective, since there is an opportunity to influence time of arrival by targeting
meetings that are scheduled for off-peak periods
Volume
Spend
Length of Stay
Distribution by
Province
Distribution by
Season
X/
X
X/
25. Keeping the momentum of the SWC alive…
The FIFA World Cup was not a cure-all; but
showed what is possible in South Africa and
within Africa.
It shielded the country from a worse fate in
the global economic crisis.
Creating new physical and emotive
infrastructure: South Africans will have been
part of rebuilding the country significantly,
and will have a greater sense of self-belief
and confidence.
The world is now looking at South Africa and
Africa more positively than it has up to now.
This will be a lever for greater levels of
tourism, trade and investment - and we need
to milk this for as long as possible
26. So what did she say….On the key
themes…
Devising an action plan to grow
year-round demand that meets our
supply;
Keeping the World Cup momentum
going;
The key issues affecting year-
round sustainability;
Seasonality & events strategy
The establishment of a national
convention and bureau will assist in
addressing these issues
× Marketing plans to increase the
number of right visitors to Cape
Town
Primary efforts of the City and the
Province. SAT provides support