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South African Tourism Bi-Annual Report April 2013 – September 2013 Presentation to the Portfolio South African Tourism Bi-Annual Report April 2013 – September 2013 Presentation to the Portfolio Committee 29 October 2013 Presentation by: Thulani Nzima CEO: South African Tourism Portfolio Committee 29 October 2013

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Background • Global tourism arrivals topped a record 1 billion tourists in 2012. • Background • Global tourism arrivals topped a record 1 billion tourists in 2012. • Increasing demand for shorter trips instead of long haul travel. • Average length of stay reduced across the board • Spend increased across the board except Africa land markets • On-going concerns regarding the future of the Euro-Zone and unstable economies. • European countries continually seek austerity measures to boost their economies. • Continuing decline in disposable income • The US economy is showing recovery signs and travel slowly rebounding • Small agility better than big, cumbersome entities • Direct tourism contribution to the country’s GDP grew by 5% to R 84. 3 billion in 2011. • Tourism directly or indirectly sustained 9% of employment Slide no. 2

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND HUB STRATEGY DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Overall Performance – Quarter 1 (April – September 2013) OBJECTIVE ANNUAL TARGET ACTUAL (YTD) Overall Performance – Quarter 1 (April – September 2013) OBJECTIVE ANNUAL TARGET ACTUAL (YTD) COMMENT # of annual foreign arrivals 13 021 979 3 620 149 Q 1 target of 3 125 275 in SA Air: 977 605 was achieved & figures Q 1 - 3 125 275 Land: 2 642 544 for Q 2 are awaited. 15 000 5. 5 million 36. 6% achieved R 115. 4 billion R 26. 1 billion The Q 1 target was Q 2 - 2 995 055 # of domestic travellers per year Q 1 – 4 000 Q 2 - 4 000 Trended Revenue (R ) Q 1 – R 27, 7 billion slightly missed & Q 2 – R 26, 5 billion figures are awaited. Average brand awareness Total number of graded properties Q 1 – 1 697 000 Q 2 – 1 697 000 Slide no. 4 79% 6 789 79% Achieved & results due 4 614 in November. Overachieved by 36% YTD was 3 394

Overall Performance – Quarter 1 (April – September 2013) OBJECTIVE ANNUAL TARGET ACTUAL COMMENT Overall Performance – Quarter 1 (April – September 2013) OBJECTIVE ANNUAL TARGET ACTUAL COMMENT Compliance with Policies and procedures Number of delegates Slide no. 5 Unqualified annual external audit report 56 000 89% YTD spend of expense budget & 62% YTD spend of the operating budget. No results 30 bids were supported in 2013 at the estimated economic impact is R 622. 3 million and 41 900 estimated jobs. We are confident that we will meet the 56 000 delegates.

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Tourist arrivals to South Africa grew by 8. 6% in Jan to March 2013 Tourist arrivals to South Africa grew by 8. 6% in Jan to March 2013 compared to the global growth of 7. 0% for the same period in 2012. % Change Year-on-Year Change in Tourist Arrivals to each region 2012 Tourist arrivals (Millions) 2. 3 11. 3 56. 5 86. 6 12. 5 39. 3 206 2013 Tourist arrivals (Millions) 2. 5 11. 6 60. 7 92. 5 15. 7 40. 1 221 Note: UNWTO estimates incorporate provisional data for some regions Source: Statssa Tourism & Migration release March 2013, SAT analysis; UNWTO World Tourism Barometer June 2013 Slide no. 7

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Tourist arrivals to South Africa for January to March 2013 grew by 8. 6% Tourist arrivals to South Africa for January to March 2013 grew by 8. 6% over 2012 to reach 2, 461, 999. All regions showed positive growth , Asia showed highest growth of 27. 1% in tourist arrivals. #3 Europe l North America 92, 727 arrivals 5. 2% up from 2012 l l l 430, 910 arrivals 9. 2% up from 2012 #4 Americas Middle East l l 16, 194 arrivals 11. 4% up from 2012 #2 Africa Air Asia l l 108, 272 arrivals 27. 1% up from 2012 Central & South America l l #5 Africa Land 35, 535 arrivals 15. 2% up from 2012 Australasia 30, 816 arrivals 3. 4% up from 2012 l AFRICA GRAND TOTAL l l l 1, 736, 166 arrivals 7. 6% up from 2012 2, 461, 999 arrivals 8. 6% up from 2012 Slide no. 9 #1 Asia & Australia Indian Ocean Islands l Note : Tourist Arrivals figures shown above for Jan. - Mar. 2013 Source: Table A Tourist Arrivals Jan. - Mar. 2013 l 5, 704 arrivals 10. 3% up from 2012

Slide no. 10 Slide no. 10

Total foreign direct spend generated from tourist arrivals decreased by -5. 4% between Q Total foreign direct spend generated from tourist arrivals decreased by -5. 4% between Q 1 2012 and Q 1 2013. Africa - land Africa - air were the only regions that posted a decrease in revenue from Q 1 2012 to Q 1 2013 Revenue (R - Billion) Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013 Average spend per tourist in SA 2011 R 9, 000 R 8, 200 R 13, 600 R 9, 900 R 13, 400 R 10, 200 2012 R 9, 200 R 8, 400 R 13, 300 R 11, 600 R 12, 300 R 10, 100 2013 R 8, 000 R 6, 300 R 9, 200 R 10, 500 R 13, 900 R 12, 400 Source: SAT Departure Surveys Slide no. 11

Asia remains buoyant and Europe SA’s main source of tourist arrivals • The source Asia remains buoyant and Europe SA’s main source of tourist arrivals • The source of this tourist performance of 8. 6% came from the following markets: . • Asia remains buoyant with the highest growth, recording 27. 1% increase in foreign tourist arrivals to reach 108 272 tourists. • • This growth was led by China, including Hong-Kong which grew by 37. 4%, reaching a total of 42 441 tourists in March 2013 relative to 30 883 in the same period in 2012. Growth in China was also influenced by the following factors, among others; • South African Airways’ direct flight to Beijing since January 2012. • Two new visa application centres which opened in Beijing and Shanghai in 2011 – making travelling to South Africa more appealing for Chinese tourists. Europe remains the main source of foreign tourist arrivals to South Africa, with 430 910 tourist arrivals - a 9. 3% growth from 2012 figures. • This growth is led by the UK’s tourist arrival figures of 137 358 ( 2. 7% growth from 2012). • Germany grew 17. 6% • France grew 7. 3% • the Netherlands down with -2. 9% and • Italy grew 17. 1% reaching 14 242 tourist arrivals. The US leads the charts of North America performance, growing at 5. 8% to reach 74 166 tourists in March 2013. Slide no. 12

Regional Africa’s Growing supported by the Africa Growth Plan • Central and South America Regional Africa’s Growing supported by the Africa Growth Plan • Central and South America recorded a growth of 15. 2%, attracting 35 555 foreign tourist arrivals to South Africa, led by Brazil. • The Middle East Markets brought in 16 194 foreign tourists in 2013, up by 11. 4 % from 2012. • Regional Africa reported 1. 73 million tourist at 7. 2% growth. Slide no. 13

There has been a decrease in the number of provinces visited by all tourists There has been a decrease in the number of provinces visited by all tourists Average Number of Provinces Visited by All Tourists, Q 1 2012 vs. Q 1 2013 2. 0 Average number of provinces visited 1. 7 1. 2 1. 1 1. 6 1. 7 1. 6 1. 5 1. 2 1. 1 1. 0 Q 1 2012 Q 2 2013 0. 0 Total Slide no. 14 Source: SAT Departure Surveys Africa Land Africa Air Americas Asia & Australasia Europe © South African Tourism 2012

Gauteng and Western Cape are by Far the Most Visited Provinces. Provincial Distribution Q Gauteng and Western Cape are by Far the Most Visited Provinces. Provincial Distribution Q 1 2012 vs. Q 2 2012 60. 0% Provincial distribution - All foreign visitors 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% Q 1 2012 Q 1 2013 Gauteng 46. 1% 47. 8% Western Cape 18. 5% 18. 8% Eastern Cape 4. 3% 3. 9% Kwa. Zulu Natal 10. 2% 9. 8% Mpumalanga 16. 4% 15. 6% Limpopo 11. 3% 11. 2% Slide no. 15 Note: Unpaid accommodation refers to staying with friends or family. “Other” accommodation refers to staying at schools, churches, universities, etc. Source: SAT Departure Surveys North West 5. 3% 5. 6% Northern Cape 1. 1% 0. 9% Free State 8. 8% 7. 8% © South African Tourism 2012

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Markets Driving Tourist Arrival Growth in Q 1 and Beyond – 4 th Portfolio Markets Driving Tourist Arrival Growth in Q 1 and Beyond – 4 th Portfolio 01/04/2011 to 30/03/2014 Country Manager Regional Director 4 13/ – 20 1 CORE MARKETS 201 INVESTMENT MARKETS AFRICA AMERICAS & the UK ASIA & AUSTRALASIA EUROPE Angola Botswana Kenya Nigeria South Africa* USA Australia India France Germany Netherlands UK* DRC Mozambique Brazil Canada China (including Hong Kong) Japan Belgium Italy Sweden New Zealand Ireland Republic of Korea Austria Denmark Portugal Spain Switzerland Global Channel Manager Malawi Namibia Zambia Zimbabwe STRATEGIC IMPORTANCE Bahrain, Oman, Qatar, Saudi Arabia STRATEGIC AIR LINKS/HUBS Slide no. 17 Lesotho Swaziland WATCH-LIST MARKETS Stakeholder Manager TACTICAL MARKETS Egypt, Ethiopia, Ghana, Mauritius, Senegal, Tanzania, UAE Argentina Malaysia Singapore

Markets that will drive Future Tourist Arrival Growth - 01/04/2014 to 30/03/2017 Country Manager Markets that will drive Future Tourist Arrival Growth - 01/04/2014 to 30/03/2017 Country Manager Regional Director Responsibility AFRICA CORE MARKETS INVESTMENT MARKETS Global TRM: Stakeholder Manager TACTICAL MARKETS Slide no. 18 AMERICAS ASIA & AUSTRALASIA EUROPE & THE UK Angola Domestic Kenya Mozambique Nigeria Tanzania Brazil USA Australia China India France Germany Netherlands UK Botswana DRC Ghana Lesotho Uganda Zimbabwe Canada Japan South Korea Italy Russia Singapore Switzerland New Zealand Austria Belgium Denmark Finland Norway Spain Sweden Turkey Namibia UAE Zambia WATCH-LIST MARKETS Ethiopia Malawi Swaziland STRATEGIC IMPORTANCE Egypt, Israel, Morocco, Saudi Arabia, Tunisia, Argentina Malaysia

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE

The Hub Strategy for Global Markets to increase market penetration, footprint and efficient resource The Hub Strategy for Global Markets to increase market penetration, footprint and efficient resource utilisation. AMERICAS CENTRAL Europe ASIA PACIFIC LATIN AMERICAS NORTH AMERICAS EUROPE ASIA & AUSTRALASIA UNITED KINGDOM USA (Office) - Hub * Brazil (Office): Hub China - Office ** : Hub Germany (Office): Hub United Kingdom (Office): Hub Canada *** Argentina Hong Kong Russia ** Ireland *** Chile Macau *** Spain Scotland Japan Turkey Wales South Korea ** Switzerland AFRICA WEST AFRICA EAST AFRICA * Nigeria (Office): Hub * Kenya (Office) : Hub Ghana Tanzania & Uganda ** *** ECOWAS countries AUSTRALASIA Australia (Office) : Hub New Zealand * Angola (Office) – Stand Alone FRANCE (OFFICE) INDIA India (Office) – Stand Alone France – Stand Alone Sweden (**) Denmark ITALY (OFFICE) ASIA Air LINK HUB DRC: Hub Belgium Norway *** Ethiopia CENTRAL AFRICA BENELUX & SCANDINAVIA Netherlands (Office) : Hub Austria Finland Italy – Stand Alone SADC Botswana Zimbabwe Malawi Lesotho Mozambique Zambia Namibia Slide no. 20 Malaysia Singapore Notes: * Planned SA Tourism Offices (2013/2014) ** 1 Trade Relations Manager will be appointed – approved by Board (2014/2015) (Shanghai, South Korea, Russia, Scandinavia as well as Tanzania and Uganda) *** Future Plans (2015/16 and Beyond)

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Domestic Performance Key Metrics Q 2 2013 Monthly 6. 6% 5. 3% 6. 2 Domestic Performance Key Metrics Q 2 2013 Monthly 6. 6% 5. 3% 6. 2 Million 3. 5 million 1. 8 7. 0 million 3. 0 million 2. 3 5. 5 million 2. 9 million 1. 9 By Purpose Number of Trips Q 2 2012 Quarter Travellers Avg Trips per Traveller Travel Incidence Q 2 2011 VFR: 72%, Holiday: 16%, VFR: 71%, Holiday: 14%, VFR: 74%, Holiday: 9%, By Province Kwa. Zulu Natal: 30% Limpopo: 22% Kwa. Zulu Natal: 31% Gauteng: 18% Eastern Cape: 11% Western Cape: 8% Limpopo: 7% Limpopo: 18% Gauteng: 17% Western Cape: 8% R 5. 2 Billion Total Annual Spend By Purpose R 4. 6 Billion Gauteng: 19% Kwa. Zulu Natal: 18% Western Cape: 13% Eastern Cape: 8% R 5. 0 Billion (Purpose with sample size less that twenty (20) not included) VFR: 57%; Holiday: 25% VFR: 49%, Holiday: 25% VFR: 55%, Holiday: 19% Average Spend per Trip / per Day R 640 / Trip; R 160 / Day R 760 / Trip; R 200 / Day R 930 / Trip; R 230 / Day Total Annual Bed Nights Average Nights per Trip 24. 9 Million 4. 0 Nights 27. 5 million 3. 9 Nights 23. 0 million 4. 0 Nights Cannot Afford Travel: 32% Cannot Afford Travel: 38% No Reason To Take a Trip: 19% No Reason To Take a Trip: 17% No Reason To Take a Trip: 20% Time Constraints: 16% Unemployed / No Income: 15% Time Constraints: 18% Unemployed / No Income: 15% Time Constraints: 14% Unemployed / No Income: 12% Dislike Travelling: 11% Dislike Travelling: 8% (Purpose and Province with sample size less that twenty (20) not included) Spend Trip Length No Trips Taken Top 5 Reasons for not taking a trip 22 © South African Tourism 2011

Reasons for a Decline in Domestic Performance Total spend has increased by 4% from Reasons for a Decline in Domestic Performance Total spend has increased by 4% from R 5. 0 billion in Q 2 of 2012 to R 5. 2 billion in Q 2 in 2013. • Average spend per trip has also increased from R 760 in Q 2 of 2012 to R 930 in Q 2 of 2013. • Average length of stay has increased from 3. 9 nights in 2012 to 4. 0 nights in 2013. • • • The 21% drop in domestic trips from 7. 0 million in Q 2 of 2012 to 5. 5 million in Q 2 of 2013 emanates from the following: • Growing : Visiting Friends and Relatives (VFR) from 71% to 74% while holiday trips have decreased by 9% • Affordability is still a major challenge due to • unemployment recorded at 25. 6% in Q 2 of 2013 • Lower consumer spending recorded in Q 1 of 2013 was 2. 3% - down from 2. 4% (Q 4 of 2012), 2. 7 (Q 3 of 2012) and 3. 2% (Q 2 of 2012). In addition to this, South Africans do not associate value and meaning to domestic travel experiences and therefore do not invest. There is need for a culture adjustment in the five market segments, causing consumers to re-prioritise travel. The new campaign addresses this requirement by igniting a spark that culminates in a ‘movement’ that identifies with domestic travel benefits. Slide no. 23

Revamped Domestic Campaign • • A comprehensive campaign audit was performed on the last Revamped Domestic Campaign • • A comprehensive campaign audit was performed on the last three Domestic campaigns. The new revamped Domestic Tourism campaign extracts all the key learning’s from the previous campaigns. ü ü ü • • In reviewing the challenge with the Shot’ Left campaign it was recognized that the shortfall of the target market did not address the large potential of the market. In the case of the Vaya Mzansi campaign, it was apparent that it evoked national pride amongst South Africans, using magnificent imagery that covered all corners of the country. Although it was a beautifully produced campaign, the call to action was minimal. In the revamped Domestic Tourism revamped campaign, the market segmentation has been aligned to the Vaya Mzansi (from LSM 1 to 10) with the inclusion of the “Young at Heart” who are over 50 plus, with greater disposable income. This Domestic Tourism campaign also focuses on shifting behaviour to create a culture of travel that has not previously been achieved. Slide no. 24

1 st Phase - Inter-City and Provincial Rivalry (3 months) • • • The 1 st Phase - Inter-City and Provincial Rivalry (3 months) • • • The new Domestic Tourism initiates a spark of engagement, generating ‘healthy banter’ between the cities and provinces by creating a competitive interaction that challenges the rest of South Africa with the statement “Nothings More Fun than a Shot’ Left from …. ” This is a fully integrated, sustainable, unconventional, unexpected, entertaining and delightful campaign. It focuses on improving short-term trips like a weekend away. Leveraging of the equity built on Shot’Left, the creative device is “Nothing is more Fun than …” The new campaign brings to life the innate benefits of short breaks, road trips with friends or quick getaway trips from the city, a Shot’Left. • The campaign uses travel ambassadors that personify fun. • The look and feel will be colourful, energetic and dynamic. • A 360 -degree, through-the-line media campaign will broadcast targeted messaging such as “THERE IS NOTHING MORE FUN THAN A SHOT’ LEFT from JOZI”. Slide no. 26

2 nd Phase – Post Rivalry • This phase is characterised by a fully 2 nd Phase – Post Rivalry • This phase is characterised by a fully integrated campaign on television commercials, radio, digital media and print (e. g. catalogues into newspapers). This will be deal driven campaign with flexibility pricing and offering. Collateral will also be distributed around events such as Fashion Week. • ü ü ü Provincial Alignment - SPARK will promote intra-Provincial travel. Concurrently to the rivalry phase that is sparked, the Provinces are assisted with ‘templates’ of the marketing collateral to add their own creative statement. SPARK will promote intra-Provincial travel. Chapters of the campaign will focus on promoting attributes that are unique for each Province. The Provincial campaign will provoke that “Nothing is More Fun than a Shot’Left in Limpopo” (for example). A road trip is being used to showcase various modes of transportation across the country (bus, train, taxi, etc). Alignment of strategies to this campaign e. g. aligning the Gauteng Tourism Authority’s GP to the JOZI’s campaign. Most Province and Cities are already having strategy around trade partners – but alignment will add impetus to the campaign Use of DJs with a regional appeal was suggested. Slide no. 27

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Number of Graded Establishments as at end September 2013 Non-Hotel Accommodation EC FS GP Number of Graded Establishments as at end September 2013 Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total Backpacker & Hostelling 13 2 8 8 2 1 1 1 41 77 Bed & Breakfast 189 15 177 239 21 32 23 31 328 1 055 Caravan & Camping 16 5 1 9 11 4 6 4 22 78 Country House 32 5 21 15 8 9 3 2 70 165 Guest House 224 52 434 146 52 106 58 78 589 1 739 Lodge 51 9 46 56 78 47 7 39 32 365 Self Catering Non-Hotel Accommodation Total 111 23 79 185 79 60 22 26 781 1 366 636 111 766 658 251 259 120 181 1 863 4 845 Hotel Total Accommodation Grand Total MESE Total (Business Tourism) Grand Total Graded Properties 57 25 177 108 30 38 24 24 184 667 693 136 943 766 281 297 144 205 2 047 5 512 72 4 13 18 7 13 17 163 700 148 1 015 770 294 315 151 218 2 064 5 675 The grand total of 5675 is the total number live establishments Slide no.

Number of Graded Rooms as at end September 2013 Non-Hotel Accommodation EC FS GP Number of Graded Rooms as at end September 2013 Non-Hotel Accommodation EC FS GP KZN LP MP NW NC WC Grand Total Backpacker & Hostelling 592 30 498 523 87 25 200 32 1 308 3 295 1 344 112 1 148 1 573 245 243 140 267 1 704 6 776 Caravan & Camping 655 101 50 886 913 258 157 660 1 416 5 096 Country House 313 43 263 141 122 94 23 25 780 1 804 2 282 635 4 687 1 534 788 1 317 529 993 4 423 17 188 Lodge 514 319 1 324 1 153 1 271 1 052 87 968 440 7 128 Self Catering 956 243 1 063 1 539 1 656 1 471 107 849 4 216 12 100 Non-Hotel Accommodation Total 6 656 1 483 9 033 7 349 5 082 4 460 1 243 3 794 14 287 53 387 Hotel Total 4 359 1 656 19 600 9 012 1 816 2 595 1 141 2 826 14 381 57 386 Accommodation Grand Total 11 015 3 139 28 633 16 361 6 898 7 055 2 384 6 620 28 668 110 773 MESE Total (Business Tourism) 38 24 548 26 55 67 18 57 74 907 Grand Total Graded Properties 11 053 3 163 29 181 16 387 6 953 7 122 2 402 6 677 28 742 111 680 Bed & Breakfast Guest House This slide DOES NOT include cancellations Slide no.

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Number of Bids Secured for South Africa 2013 - 2017 Bids 2013 - 2017 Number of Bids Secured for South Africa 2013 - 2017 Bids 2013 - 2017 Total Bids Total Number of Days Estimated Delegate Numbers 106 Secured 461 219 980 Estimated Economic Impact R 2 903 544 000. 00 Bids Submitted Q 1 and Q 2 dated 22/10/2013 Total Bids Total Number of Days Estimated Delegate Numbers 30 Submitted 131 41900 Slide no. Estimated Economic Impact R 622 300 000. 00

Number of Bids Secured for South Africa 2013 - 2017 Bids 2013 Total Bids Number of Bids Secured for South Africa 2013 - 2017 Bids 2013 Total Bids Total Number of Days Estimated Delegate Numbers 41 Secured 168 58750 Total Bids Total Number of Days Estimated Delegate Numbers 26 Secured 111 47 750 Estimated Economic Impact R 695 688 000. 00 Bids 2014 Slide no. Estimated Economic Impact R 610 960 000. 00

TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs TABLE OF CONTENTS v v v v v GLOBAL ENVIRONMENT OVERALL PERFORMANCE - KPIs GLOBAL Q 1 PERFORMANCE SOUTH AFRICA’S Q 1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q 1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTH DOMESTIC TOURISM RESULTS TGCSA UPDATE NCB UPDATE FINANCIAL PERFORMANCE

Highlights of SA Tourism’s Financial Performance for the 6 Months that ended on 30 Highlights of SA Tourism’s Financial Performance for the 6 Months that ended on 30 September 2013 SA TOURISM ON TRACK TO SPEND ITS FULL 2013/14 BUDGET • Slide no. During the first 6 months of the 2013/14 financial year, SA Tourism spent R 604. 7 million which represents: o 89% of its year-to-date expense budget of R 682. 6 million (this means that SAT was R 77. 9 million behind on its year-to-date budget as at 30 September 2013); o 62% of its total 2013/14 operational budget of R 968. 6 million.

Highlights of SA Tourism’s Financial Performance (cont. ) EXPENDITURE BY COUNTRY OFFICES AND BUSINESS Highlights of SA Tourism’s Financial Performance (cont. ) EXPENDITURE BY COUNTRY OFFICES AND BUSINESS UNITS • • • Nine of South African Tourism Country offices spent 90% or more of their year-to-date budgets, two Country offices were slightly below budget (Amsterdam & Nigeria) and three Country offices were significantly below budget (Brazil, Angola & Kenya). Of South African Tourism’s seventeen Business Units, twelve spent 90% or more of their 2013/14 year-todate budgets, three were slightly behind on their budgets (Africa Portfolio, TGCSA & Watch-list Business Unit) and two Business units were significantly below budget (National Conventions Bureau & HR). Relevant actions have been taken by management to address the under-expenditure within these Country offices and Business Units. Slide no.

Highlights of SA Tourism’s Financial Performance (cont. ) CAPITAL EXPENDITURE • During the first Highlights of SA Tourism’s Financial Performance (cont. ) CAPITAL EXPENDITURE • During the first 6 months of the 2013/14 financial year, SA Tourism only managed to spend R 1 279 916 or 7% of its total 2013/14 CAPEX budget of R 18, 7 million. The main reasons for this were the fact that: o o Slide no. three planned overseas offices have not been opened yet (Angola, Brazil and Nigeria) while the 4 th new office (in Kenya) is only planned for the end of the 2013/14 financial year approval for phase 1 of the planned Head Office extension have not been received from the relevant local authority yet.

THANK YOU Slide no. 38 THANK YOU Slide no. 38