CAN TOURISM BE A CATALYST FOR ECONOMIC
DEVELOPMENT?
TOURVEST HOLDINGS (PTY) Ltd
Established in 1997
4 500 employees
Estimated market value of
R4 billion rand
Manages 65 brands
globally
Africa’s largest integrated
tourism company
WHAT IS THE SECTOR’S ROLE
IN ECONOMIC DEVELOPMENT?
• Average spend per
foreign tourist in 2013 –
R6 578
• 14 million foreigners
visited SA in 2013 vs 13
million
in 2012
• 655 000 persons
employed in the industry
- 4.4% of gross
employment in SA
R0R100
R200R300
R400
Total Tourism Spend
Domestic Spend
Foreign Spend
Tourism GDP Contribution
2012
2013
R93 billion/ R103 billion
R94 billion
R124 billion
R199 billion/ R218 billion
OUR INDUSTRY IN PERSPECTIVE
Tourism contribution to total GDP 2.9%
Product International spend for every R100 spent …
Domestic spend for every R100 spent …
Non-specific products R27 R19
Tourism-related products R15 R10
Other products R20 R13
Accommodation R14 R15
Transportation excl. air R12 R29
Air transportation R12 R14
WHAT IS THE SECTOR’S ROLE
IN ECONOMIC DEVELOPMENT?
WHO ARE OUR VISITORS?
Holiday-makers:
88%Foreign students and workers:
2.3%Business travellers
1.4%
MAIN INBOUND DEPARTURE
POINTS
SADC INBOUND TRAVELERS
INBOUND TRAVELERS FROM
AFRICA
STRATEGIC PRESSURE-
POINTS AND CHALLENGES
Communication anomalies between government, the private sector
and communities
Failed long-term partnerships between government, the private sector
and communities
Non-aligned strategic long-term growth in the tourism sector and
national policy
STRATEGIC PRESSURE-
POINTS AND CHALLENGES
Safety and security; the role of the media and xenophobia
Political stability and maintaining long-term relationships with city
appointees
Target markets; roll-out and product efficiencies
A TALE OF TWO CITIES
Parys
• Up and coming tourist hotspot
• Easily accessible
• Tourist attractions maintained and easily accessible
• Variety of activities offered: fishing, museum, adventure, etc
• Wide range of good-rates accommodation
• Entertainment and big selection of dining option readily available and accessible
• Revamped as an ‘arty’ town, cloning the Dullstroom ambience
Mthatha (formerly Umtata)
• Unsuccessful tourist hotspot
• Poor road infrastructure
• Tourist attractions inaccessible
and usually closed ‘for repairs’
• Limited activities on offer:
museums, hiking.
• Poor selection of good-rated
accommodation
• No dining options or entertainment
readily available
• Post-apartheid – economic
recession
THE WAY
FORWARD?
• Maximising feet in
partnership with
inbound operators
• Strategic planning
• Social media
optimisation and
relevance in
modern marketing
• Infrastructural
maintenance and
re-investment
Q A&
THANK YOU