0
South African Tourism –
Capitalising on the successful hosting of SWC
to grow Business Tourism
Nomasonto Ndlovu
Sept.15,20...
Contents
• Background
• Market Overview
• Lessons learnt from SWC
• Beyond the SWC
• Conclusion
2
Market Overview
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...
5 Copyright © 2010 South African Tourism
Arrivals to South Africa continues its upward climb reaching 9,9 million
arrivals...
SA continues to outperform global tourism growth, which declined by
4.3% in 2009 while arrivals to South Africa grew by 3....
7 Copyright © 2010 South African Tourism
AFRICA
 7,744,176 arrivals
 5.7% up from 2008
Central & South America
 65,211 ...
Copyright © 2010 South African Tourism9
Average Number of Provinces Visited by All Tourists, 2002-2009
Source: SAT Departu...
Copyright © 2010 South African Tourism10
Total Nights Spent in SA by Province and by Type of Accommodation, 2009
Source: S...
CountryManager
RegionalDirector
Stakeholder
Manager
Global
Channel
Manager
Responsibility
Note: Markets marked with an ast...
Core Markets
 Angola
 Botswana
 Kenya
 Nigeria
 USA
 UK
 Australia
 India
 France
 Germany
 Netherlands
 South...
Core Markets
 Market presence
 ATL + BTL
promotions
 2010 activations
 Media hosting
 JMA with trade
 TV & cinema
Ta...
However: Business Tourism not the same as
Leisure tourism…
• Business Tourism approach does not follow leisure portfolio a...
Lessons Learnt from SWC
Post the SWC...what we know for sure
• Our mandate remains..i) Sustainable GDP Growth ii) Sustainable job creation iii)
Re...
Lessons Learnt
• Excellent partnership approach at national level but challenges at coordinating
provincial and host city ...
2010 SWC has come and
gone…what’s next?
Post 2010 Event Strategy
National Events Bureau
• Minister of Tourism announced establishment of an Events Bureau within S...
Convention Bureau: What is it?
 The Convention Bureau’s primary responsibility is to market
and sell the destination
 “A...
Establishment of National Convention & Events Bureau - Market
Reality Testing
 Market conditions
 Trends
 Strategic opp...
South Africa
Australia
Brazil
Singapore
Canada
Ireland
Germany
Best Practices Case Studies
 Events performance metrics
o ...
Conclusion
In conclusion: Strategic Focus going forward:
Business Tourism
1. Aggressively, grow Meetings Africa as a platform to show...
The high-level goals of SAT are met along several
dimensions by business tourism
 Business tourism is not a large market ...
Keeping the momentum of the SWC alive…
 The FIFA World Cup was not a cure-all; but
showed what is possible in South Afric...
So what did she say….On the key
themes…
Devising an action plan to grow
year-round demand that meets our
supply;
Keeping...
Upcoming SlideShare
Loading in...5
×

Nomasonto: SA Tourism JAMMS presentation 150910

331

Published on

Published in: Travel
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
331
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Nomasonto: SA Tourism JAMMS presentation 150910"

  1. 1. South African Tourism – Capitalising on the successful hosting of SWC to grow Business Tourism Nomasonto Ndlovu Sept.15,2010
  2. 2. Contents • Background • Market Overview • Lessons learnt from SWC • Beyond the SWC • Conclusion 2
  3. 3. Market Overview
  4. 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?
  5. 5. 5 Copyright © 2010 South African Tourism Arrivals to South Africa continues its upward climb reaching 9,9 million arrivals in 2009 9,9 million arrivals in 2009 *Comments captured above based on opinion of participants interviewed and anecdotal evidence Source: StatsSA, Tourism & Migration release State of Emergency Foreign Tourist Arrivals to South Africa, 1967-2009 Arrivals(Millions) First Democratic Elections Nelson Mandela released Sanctions against South Africa lifted 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 1998-2004 – Cyclicality  Global events, currency volatility drove uncertainty and short-term strategy by firms  Investment rates remain weak overall Sanctions Era Rugby World Cup 9/11 2010 SWC 2010
  6. 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
  7. 7. 7 Copyright © 2010 South African Tourism AFRICA  7,744,176 arrivals  5.7% up from 2008 Central & South America  65,211 arrivals  3.5% up from 2008 North America  314,696 arrivals  -8.6% down from 2008 Europe  1,348,502 arrivals  -4.1% down from 2008 Asia  209,110 arrivals  3.7% up from 2008 Australasia  113,180 arrivals  -6.4% down from 2008 Middle East  44,625 arrivals  -2.5% down from 2008 Indian Ocean Islands  18,745 arrivals  -4.0% down from 2008 Source: SAT Table A December 2009 Arrivals to South Africa grew to 9,933,966 in 2009. This growth was driven by growth in the Africa, Asia and Central & South America regions
  8. 8. Copyright © 2010 South African Tourism9 Average Number of Provinces Visited by All Tourists, 2002-2009 Source: SAT Departure Surveys NumberofProvincesVisited CAGR02–09 = -5.4% There has been a steady decline in the number of provinces visited by foreign tourists overall since 2002
  9. 9. Copyright © 2010 South African Tourism10 Total Nights Spent in SA by Province and by Type of Accommodation, 2009 Source: SAT Departure Surveys Nights Total Nights (‘000s) 26,854 17,924 3,090 7,458 4,773 3,774 2,087 653 4,909 %of Total Nights (2009) 37.7% 25.2% 4.3% 10.5% 6.7% 5.3% 2.9% 0.9% 6.4% (Friends / Family) (B & B, Backpackers’, Self-catering, Camping) (Hotel, Game Lodge, Guest House, Train/Ship) Gauteng and Western Cape are by far the most visited provinces, and account for the bulk of the bednights spent in South Africa
  10. 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. 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. 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. 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.
  14. 14. Lessons Learnt from SWC
  15. 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. 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!
  17. 17. 2010 SWC has come and gone…what’s next?
  18. 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. 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. 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. 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
  22. 22. Conclusion
  23. 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. 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. 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. 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
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×