1. South African Tourism –
Capitalising on the successful hosting of SWC
to grow Business Tourism
Nomasonto Ndlovu
Sept.15,2010

2. Contents
• Background
• Market Overview
• Lessons learnt from SWC
• Beyond the SWC
• Conclusion
2

3. Market Overview

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 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. 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 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. 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. 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. 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.

14. Lessons Learnt from SWC

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!

17. 2010 SWC has come and
gone…what’s next?

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

22. Conclusion

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