Transcript Title

Western Cape Regional Tourism
Growth Strategies
David Frost
Chief Executive Officer – SATSA
29th October 2013
Background
• Cape Town discovered by the world
• But – lot of awareness slightly less sales
Growth Rates – Selected Source Markets
2003 - 2012
400
300
Europe Top 5
China
India
200
100
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
South Africa – Non-African Arrivals Seasonality
240,000
220,000
200,000
2001
180,000
2002
2003
160,000
2004
2005
2006
140,000
2007
2008
120,000
2009
100,000
80,000
60,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Background
• Assertion – not much done practically over last 10
years to drive growth into the province
• Clear from interacting with SATSA members and
product throughout the province
• Idea – come up with practical regional growth
strategies that could be funded by the province
• Aim – to drive incremental “sales” – “bums in beds”
• Three year plans
• Winde – buy in
• Strong practical and backed by vibrant publicprivate sector partnership
(WESGRO / SATSA)
Today
• Share with you some examples of what this
could look like
– Namibia
– TKZN
– Eastern Cape
– Grant Thornton
– SA Tourism – Domestic Campaign
Today
• Then up to you to come up with the three pronged
strategy that will drive growth to your region in
next three years
• Taskforce (WESGRO, SATSA, GT) will come and
meet with you in your region – half day workshop
and knock the strategy into shape
• GT – transform into a business plan format –
modular funding proposal – to province for funding
• Aim – not to get into substance – but agree a
process
Long Haul Visitors to EC 2002 - 2008
500,000
3.9%
1.3%
400,000
-18,6%
300,000
21,0%
-38.7%
200,000
100,000
0
2004
2005
2006
2007
2008
Long Haul Visitors to KZN 2002 - 2007
700,000
6.6%
600,000
(-9.0)%
(-2.3)%
500,000
(-9.7)%
0.1%
(-14.6)%
400,000
300,000
200,000
100,000
0
2002
2003
2004
2005
2006
2007
Long Haul Visitors to KZN 2006-2011
600000
-1,6%
500000
0,5%
-10,5%
-3,68%
400000
-27,6%
- 43%
300000
200000
100000
0
2006
2007
2008
2009
2010
2011
Regional Review – South Africa
Business trips
(million)
Business spend
(R billion)
Holiday trips
(millions)
Holiday spend
(R Billion)
Total Spend
(R billion)
2007
2008
2009
2010
2,5
1,65
1,52
1,49
2,8
3,1
3,8
2,95
5,75
5,26
3,64
3,86
7,4
10,1
4,93
6,5
10,2
13,2
8,7
9,5
Regional Review – Namibia
Point of Departure - 2003





Relatively new tourism board - NTB
Arrivals figures flat
Disjuncture private sector and NTB
No clear strategy going forward
Isolated from tourism developments elsewhere in region
Outline
•
•
•
•
•
•
•
•
Budget – E 30 million
Vision
Global picture
Regional trends
Namibia’s performance
Key source markets
Conceptual tools
The Marketing Strategy
– Tactical
– Strategic
– Organisational / Institutional
• Implementation
• Results – does this work?
Namibia – Performance 2003
Total Tourist Arrivals
695 221
Overseas
165 336
Africa
525 885
South
Africa
222 009
Land
Arrivals
173 141
Air
Arrivals
48 868
Angola
222 752
Land
Arrivals
216 574
Rest of
Africa
81 124
Air
Arrivals
6 178
Other
Germany Europe
58 036
83 798
Leisure
142 755
VFR /
Leisure Business
103 482
118 527
Key Segments
Other
Countries
27 502
VFR /
Business
22 581
Total International Leisure
18,000
16,000
14,000
12,000
2001
2002
2003
10,000
8,000
6,000
4,000
2,000
0
Jan Feb Mar Apr May Jun
Jul
Aug Sep
Oct Nov Dec
Target Markets
Primary Markets
• German Speaking Europe
• UK & Ireland
• South Africa
• Angola
Secondary Markets
• France
• Benelux
• USA
• Italy
The Marketing Strategy
• Tactical
• Strategic
• Organisational / Institutional
The Marketing Strategy
Increased Arrivals
• Market Mapping
• Key Account
management
• Co-operative
marketing
• Public Relations
• Media
The Marketing Strategy
Increased Jobs
• Key Account
management
• Market Mapping
• Co-operative
marketing
• Public Relations
• Media
Marketing & Sales Tools
2.
Joint Marketing Agreements or Co-op Marketing
The concept of co-operative marketing is predicated on
identifying opportunities in a chosen market and/or
market segment and selectively engaging with an
appropriate organisation or business entity to jointly
invest in achieving mutually beneficial targeted outcomes
Marketing & Sales Tools
2.
Joint Marketing Agreements or Co-op Marketing
– International best practice (Eg. Canada, Australia,
New Zealand, South Africa, Namibia)
– Solid return on investment
– Ability to influence
‒ Spread
‒ Timing
‒ Product
• Extends the current budget
Marketing & Sales Tools
2.
Joint Marketing Agreements or Co-op Marketing
Hypothetical Example - “Acme Tours”
Current business – 50 pax per annum
Proposed STA contribution – R 20,000
Acme contribution – R 20,000
Campaign  direct sell database  Nov 2013 – Mar
2014
– Result
- extra 50 pax May – Aug 2014
- Ave. length of stay – 4 days
- Ave. spend in province – R 1,400 per day
–
–
–
–
50 x 4 x R 1,400 = R 280,000
R 280,000 ÷ R 20,000 = 14
ROI : R 1  R 14
International Arrivals – Seasonality 2001 - 2006
25,000
20,000
2006
2005
15,000
10,000
2001
5,000
0
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
Top Six International Markets
0
0
0
0
0
0
0
0
0
South Afri
Namibia
Tourist Arrivals from UK
Tourist Arrivals from UK
160
140
120
Namibia
100
South Africa
80
60
40
2003
2005
2006
2007
2008
2009
2010
Tourist Arrivals from Germany
0
0
0
0
0
0
0
0
0
South Afri
Namibia
Tourist Arrivals from USA
Tourist Arrivals from USA
200
180
160
140
Namibia
120
South Africa
100
80
60
40
2003
2005
2006
2007
2008
2009
2010
Tourist Arrivals from France
Tourist Arrivals from France
200
180
160
140
Namibia
120
South Africa
100
80
60
40
2003
2005
2006
2007
2008
2009
2010