south african tourism

Presentation by: Thulani NzimaCEO: South African TourismPortfolio Committee29 October 2013

South African Tourism

Bi-Annual ReportApril 2013 – September 2013

Presentation to the Portfolio Committee 29 October 2013

TABLE OF CONTENTS

GLOBAL ENVIRONMENTOVERALL PERFORMANCE - KPIsGLOBAL Q1 PERFORMANCESOUTH AFRICA’S Q1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTHDOMESTIC TOURISM RESULTS TGCSA UPDATENCB UPDATEFINANCIAL PERFORMANCE

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Slide no. 3

• 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 R84.3 billion in 2011.

• Tourism directly or indirectly sustained 9% of employment

Background

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GLOBAL ENVIRONMENTOVERALL PERFORMANCE - KPIsGLOBAL Q1 PERFORMANCESOUTH AFRICA’S Q1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND HUB STRATEGYDOMESTIC TOURISM RESULTS TGCSA UPDATENCB UPDATEFINANCIAL PERFORMANCE

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GLOBAL ENVIRONMENTOVERALL PERFORMANCE - KPIsGLOBAL Q1 PERFORMANCESOUTH AFRICA’S Q1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND HUB STRATEGYDOMESTIC TOURISM RESULTS TGCSA UPDATENCB UPDATEFINANCIAL PERFORMANCE

Slide no. 5

Overall Performance – Quarter 1 (April – September 2013)

OBJECTIVE ANNUAL TARGET ACTUAL (YTD)

COMMENT

# of annual foreign arrivals

in SA

Q1 - 3 125 275

Q2 - 2 995 055

13 021 979 3 620 149

Air: 977 605

Land: 2 642 544

Q1 target of

3 125 275 was

achieved & figures

for Q2 are awaited.

# of domestic travellers per year

Q1 – 4 000 000

Q2 - 4 000 000

15 000 000 5.5 million 36.6% achieved

Trended Revenue (R )

Q1 – R27,7 billion

Q2 – R26,5 billion

R115.4 billion R26.1 billion The Q1 target was

slightly missed &

Q2 figures are

awaited.

Average brand awareness 79% 79% Achieved & results

due in November.

Total number of graded properties

Q1 – 1 697 000

Q2 – 1 697 000

6 789 4 614 Overachieved by 36% - YTD was 3 394

Slide no. 6

Overall Performance – Quarter 1 (April – September 2013)

Compliance with Policies and procedures

Unqualified annual external audit report

89% YTD spend of expense budget & 62% YTD spend of the operating budget.

Number of delegates 56 000 No results 30 bids were supported in 2013 at the estimated economic impact is R622.3 million and 41 900 estimated jobs. We are confident that that we will meet the 56 000 delegates.

OBJECTIVE ANNUAL TARGET ACTUAL

COMMENT

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Slide no. 8

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.

Note: UNWTO estimates incorporate provisional data for some regionsSource: Statssa Tourism & Migration release March 2013, SAT analysis; UNWTO World Tourism Barometer June 2013

8.6%

2.6%

7.4% 6.8%

25.5%

2.0%

7.0%

0%

5%

10%

15%

20%

25%

30%

South Africa Africa Asia and the Pacific Europe Middle East Americas World

Year-on-Year Change in Tourist Arrivals to each region%

Change

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

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Slide no. 10

AFRICAAFRICAAFRICAAFRICA

1,736,166 arrivals 7.6% up from 2012

1,736,166 arrivals 7.6% up from 2012

Central & South AmericaCentral & South America

35,535 arrivals 15.2% up from 2012


North AmericaNorth AmericaNorth AmericaNorth America



EuropeEuropeEuropeEurope



AsiaAsiaAsiaAsia



AustralasiaAustralasia



Middle EastMiddle East



Indian Ocean IslandsIndian Ocean Islands 5,704 arrivals 10.3% up from 2012

5,704 arrivals 10.3% up from 2012Note : Tourist Arrivals figures shown above for Jan. - Mar. 2013

Source: Table A Tourist Arrivals Jan. - Mar. 2013

2,461,999 arrivals 8.6% up from 2012

2,461,999 arrivals 8.6% up from 2012

GRAND TOTALGRAND TOTAL

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.

# 1Asia &

Australia

# 4Americ

as

# 2Africa

Air

# 3Europe

# 5Africa Land

Slide no. 11

Slide no. 12

Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013Total Foreign Direct Spend (excluding capital expenditure), 2011 to 2013

Total foreign direct spend generated from tourist arrivals decreased by -5.4% between Q1 2012 and Q1 2013.

17.5

10.3

0.9 1.2 1.7

4.8

19.9

11.6

0.9 0.8 1.03.2

18.8

10.3

0.9 1.2 1.74.8

0

5

10

15

20

25

Total Africa - land Africa - air Americas Asia &Australasia

Europe

201120122013

Revenue (R

- B

illio

n)

2011 R9,000 R8,200 R13,600 R9,900 R13,400 R10,200

2012 R9,200 R8,400 R13,300 R11,600 R12,300 R10,100

2013 R8,000 R6,300 R9,200 R10,500 R13,900 R12,400

Source: SAT Departure Surveys

Average spend per tourist in SA

Africa - land and Africa - air were the only regions that posted a decrease in revenue from Q1 2012 to Q1 2013

Slide no. 13

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. 14

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. 15 © South African Tourism 2012

Average Number of Provinces Visited by All TouristsAverage Number of Provinces Visited by All Tourists, Q1 2012 vs. Q1 2013, Q1 2012 vs. Q1 2013Average Number of Provinces Visited by All TouristsAverage Number of Provinces Visited by All Tourists, Q1 2012 vs. Q1 2013, Q1 2012 vs. Q1 2013

There has been a decrease in the number of provinces visited by all tourists

Source: SAT Departure Surveys

Slide no. 16 © South African Tourism 2012

Provincial Distribution Q1 2012 vs. Q2 2012Provincial Distribution Q1 2012 vs. Q2 2012Provincial Distribution Q1 2012 vs. Q2 2012Provincial Distribution Q1 2012 vs. Q2 2012

Gauteng and Western Cape are by Far the Most Visited Provinces.

Note: Unpaid accommodation refers to staying with friends or family. “Other” accommodation refers to staying at schools, churches, universities, etc.Source: SAT Departure Surveys

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Slide no. 18

AFRICA AMERICAS & the UK ASIA & AUSTRALASIA EUROPE

CORE MARKETS

AngolaBotswana

Kenya Nigeria

South Africa*

USA AustraliaIndia

FranceGermany

NetherlandsUK*

INVESTMENT MARKETS

DRCMozambique

BrazilCanada

China (including Hong Kong)Japan

BelgiumItaly

Sweden

TACTICAL MARKETS

LesothoSwaziland

New Zealand Ireland

WATCH-LIST MARKETS

MalawiNamibiaZambia

Zimbabwe

Argentina Republic of Korea AustriaDenmarkPortugal

SpainSwitzerland

STRATEGIC IMPORTANCE

Bahrain, Oman, Qatar, Saudi Arabia

STRATEGIC AIR LINKS/HUBS

Egypt, Ethiopia, Ghana, Mauritius,

Senegal, Tanzania, UAE

MalaysiaSingapore

Cou

ntr

y M

an

ag

er

Reg

ion

al D

irecto

r

Sta

keh

old

er

Man

ag

er

Glo

bal

Ch

an

nel

Man

ag

er

2011 – 2013/4

Markets Driving Tourist Arrival Growth in Q1 and Beyond – 4th Portfolio 01/04/2011 to 30/03/2014

Slide no. 19

Markets that will drive Future Tourist Arrival Growth - 01/04/2014 to 30/03/2017 AFRICA AMERICAS ASIA & AUSTRALASIA EUROPE & THE UK

CORE MARKETS Angola Domestic

KenyaMozambique

Nigeria Tanzania

BrazilUSA

AustraliaChinaIndia

FranceGermany

NetherlandsUK

INVESTMENT MARKETS

BotswanaDRC

GhanaLesothoUganda

Zimbabwe

Canada JapanSouth Korea

Italy Russia

TACTICAL MARKETS

NamibiaUAE

Zambia

Singapore Switzerland

WATCH-LIST MARKETS

EthiopiaMalawi

Swaziland

Argentina New Zealand Austria Belgium

Denmark FinlandNorwaySpain

Sweden Turkey

STRATEGIC IMPORTANCE

Egypt, Israel, Morocco, Saudi Arabia, Tunisia,

Malaysia

Cou

ntr

y M

an

ag

er

Reg

ion

al D

irecto

rS

takeh

old

er

Man

ag

er

Responsibility

TR

M:

Glo

bal

TABLE OF CONTENTS

GLOBAL ENVIRONMENTOVERALL PERFORMANCE - KPIsGLOBAL Q1 PERFORMANCESOUTH AFRICA’S Q1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTHDOMESTIC TOURISM RESULTS TGCSA UPDATENCB UPDATE

TABLE OF CONTENTS

GLOBAL ENVIRONMENTOVERALL PERFORMANCE - KPIsGLOBAL Q1 PERFORMANCESOUTH AFRICA’S Q1 PERFORMANCE MARKETS DRIVING TOURIST ARRIVAL GROWTH IN Q1 AND BEYOND MARKETS THAT WILL DRIVE FUTURE GROWTHDOMESTIC TOURISM RESULTS TGCSA UPDATENCB UPDATE

Slide no. 21

USA (Office) - Hub

Canada

India (Office) – Stand Alone

NORTH AMERICASNORTH AMERICAS

ASIA & AUSTRALASIA

ASIA & AUSTRALASIA EUROPEEUROPE

Germany (Office): Hub

Russia **

* Brazil (Office): Hub

*** Argentina

*** Chile

LATIN AMERICASLATIN AMERICAS CENTRAL EuropeCENTRAL Europe

INDIAINDIA

AUSTRALASIAAUSTRALASIA

Australia (Office) : Hub

New Zealand

AMERICASAMERICAS

Norway

Sweden (**)

Denmark

Finland

United Kingdom (Office): Hub

Ireland

Scotland

Wales

UNITED KINGDOMUNITED KINGDOM

BENELUX & SCANDINAVIABENELUX &

SCANDINAVIANetherlands (Office) :Hub

Belgium

China - Office ** : Hub

Hong Kong

Macau ***

Japan

South Korea **

ASIA PACIFICASIA PACIFIC

ASIA Air LINK HUBASIA Air LINK HUB

The Hub Strategy for Global Markets to increase market penetration, footprint and efficient resource utilisation.

Austria

France – Stand Alone

FRANCE (OFFICE)FRANCE (OFFICE)

Switzerland

Spain

Turkey

Malaysia

Singapore

* Kenya (Office) : Hub

Tanzania & Uganda **

*** Ethiopia

EAST AFRICAEAST AFRICA

AFRICAAFRICA

* Nigeria (Office): Hub

Ghana

*** ECOWAS countries

WEST AFRICAWEST AFRICA

* Angola (Office) – Stand Alone

DRC: Hub

CENTRAL AFRICACENTRAL AFRICA

Italy – Stand Alone

ITALY (OFFICE)ITALY (OFFICE)

Botswana

Malawi

SADCSADC

Zimbabwe

Lesotho

Mozambique Zambia

Namibia

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)

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23 © South African Tourism 2011

Domestic PerformanceKey Metrics Q2 2011 Q2 2012 Q2 2013

Travel Incidence Monthly 6.6% 6.6% 5.3%

Number of Trips

Quarter 6.2 Million 7.0 million 5.5 millionTravellers 3.5 million 3.0 million 2.9 million

Avg Trips per Traveller 1.8 2.3 1.9

By Purpose VFR: 72%, Holiday: 16%, VFR: 71%, Holiday: 14%, VFR: 74%, Holiday: 9%,

By Province KwaZulu Natal: 30% Limpopo: 22% KwaZulu Natal: 31%

(Purpose and Province with sample size less that twenty

(20) not included)

Gauteng: 18% Gauteng: 19% Limpopo: 18% Eastern Cape: 11% KwaZulu Natal: 18% Gauteng: 17% Western Cape: 8% Western Cape: 13% Western Cape: 8%

Limpopo: 7% Eastern Cape: 8%

Spend

Total Annual Spend R4.6 Billion R5.0 Billion R5.2 BillionBy Purpose

VFR: 57%; Holiday: 25% VFR: 49%, Holiday: 25% VFR: 55%, Holiday: 19%(Purpose with sample size less that twenty (20) not included)

Average Spend per Trip / per Day

R640 / Trip; R160 / Day R760 / Trip; R200 / Day R930 / Trip; R230 / Day

Trip LengthTotal Annual Bed Nights 24.9 Million 27.5 million 23.0 millionAverage Nights per Trip 4.0 Nights 3.9 Nights 4.0 Nights

No Trips TakenTop 5 Reasons for not taking a

trip

Cannot Afford Travel: 32% 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% Dislike Travelling: 8%

Slide no. 24

Total spend has increased by 4% from R5.0 billion in Q2 of 2012 to R5.2 billion in Q2 in 2013.

•Average spend per trip has also increased from R760 in Q2 of 2012 to R930 in Q2 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 Q2 of 2012 to 5.5 million in Q2 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 Q2 of 2013• Lower consumer spending recorded in Q1 of 2013 was 2.3% - down from 2.4% (Q4 of

2012), 2.7 (Q3 of 2012) and 3.2% (Q2 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.

Reasons for a Decline in Domestic Performance

Slide no. 25

• 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. 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.

Revamped Domestic Campaign

Slide no. 27

• 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 get-away 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”.

1st Phase - Inter-City and Provincial Rivalry (3 months)

Slide no. 28

• 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.

• 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.

2nd Phase – Post Rivalry

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Slide no. 30

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 111 23 79 185 79 60 22 26 781 1 366

Non-Hotel Accommodation Total 636 111 766 658 251 259 120 181 1 863 4 845

Hotel Total 57 25 177 108 30 38 24 24 184 667

Accommodation Grand Total 693 136 943 766 281 297 144 205 2 047 5 512

MESE Total (Business Tourism) 7 12 72 4 13 18 7 13 17 163

Grand Total Graded Properties 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. 31

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

Bed & Breakfast 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

Guest House 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

This slide DOES NOT include cancellations

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Slide no. 33

Number of Bids Secured for South Africa 2013 - 2017

Total Bids Total Number of Days

Estimated Delegate Numbers

Estimated Economic Impact

106 Secured 461 219 980 R 2 903 544 000.00

Bids 2013 - 2017




30 Submitted 131 41900 R 622 300 000.00

Bids Submitted Q1 and Q2 dated 22/10/2013

Slide no. 34

Number of Bids Secured for South Africa 2013 - 2017




41 Secured 168 58750 R 695 688 000.00

Bids 2013




26 Secured 111 47 750 R 610 960 000.00

Bids 2014

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Slide no. 36

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

•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.

Slide no. 37

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-to-date 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. 38

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 three planned overseas offices have not been opened yet (Angola, Brazil and Nigeria) while the 4th new office (in Kenya) is only planned for the end of the 2013/14 financial year

o approval for phase 1 of the planned Head Office extension have not been received from the relevant local authority yet.

Slide no. 39

THANK YOUTHANK YOU

south african tourism

Documents

billionthe q1 target

global tourism arrivals

overall performance

tourist arrivals

trended revenue r q1

global growth

q2 figures

africa land marketson