Hotoco March 17 2011-9-12 Am Grade 12 Tourism 2011 Gr12 Trsm Mod2 Unit5

8/6/2019 Hotoco March 17 2011-9-12 Am Grade 12 Tourism 2011 Gr12 Trsm Mod2 Unit5

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Brainline Tourism T2L5 Gr.12

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Term 2

Tourism geography,attractions and travel trendsUnit 5

The Role of SA Tourism toMarket South Africa as aTourism Destination

TYPES OF TOURISTS - FOREIGN MARKETS

The Annual Tourism Report by South African Tourism (2004)indicates that South Africa recorded the highest number oftourism arrivals in the history of the country in that year. The 6677 839 tourists who arrived in 2004 were 2,66% more than in2003 and showed growth for the third continuous year (2001-

2004). This increase in arrivals also brought the compoundaverage growth rate between 2001 and 2004 to 4.9%.

Foreign Tourist Arrivals in South Africa (1965-2004)Tourism maintained its status as the new gold of the SouthAfrican economy with a Total ForeignDirect Spend of R47,8 billion. This is R15 billion more thanGold exports. Linked to this figure were27 000 more direct jobs in tourism, an increase of 5% from2003 as stated in the Mbombela Tourism Sector Plan 2006.

Figure 1: Foreign Tourist Arrivals in South Africa (1965-2004)

Countries of origin for Long-Haul Tourists (Overseasand North Africa)The Mbombela Tourism Sector Plan 2006 states that Figure 2indicates that, for the first time, The Netherlands hasovertaken France (Figure 2) and is now the fourth bestperforming arrival market after the UK, Germany and theUnited States for long-haul visitors to South Africa. Theproportion of long-haul visitors to South Africa has increasedto 31% in 2004, compared to 28% in 2002. This implies that

long-haul visitors are becoming an important and viable sourceof tourist arrivals to SA.


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Figure 2: Long- and Short-Haul Inbound Tourists to SouthAfrica

Countries of origin for Short-haul (SADC, Central &East Africa)

The largest share of foreign tourist arrivals to South Africa island-based and travel from neighbouring SADC countries.South Africas largest source of arrivals in 2004 (Figure 3) wasLesotho, with 1 470 953 arrivals. Arrivals from Lesotho were

up 14,5% in 2004, compared to 2003 (1 284 953). The top sixsource markets are South Africas neighbouring states, namelyLesotho, Swaziland, Botswana, Zimbabwe, Mozambique andNamibia. These six markets account for 60% of arrivals to

South Africa.

Figure 3: Top 10 African Markets (overall)


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Figure 4 indicates that the UK remains the number oneoverseas market for South Africa. Germany, USA, TheNetherlands and France were the other major markets witheach of South Africas arrivals from them exceeding the100 000 mark.

Figure 4: Top 20 overseas markets 2004 vs 2003

Visitor profiles of foreign tourists to South AfricaMost tourists (50%) who visited SA in 2003 and 2004 were first

-time visitors (Figure 5). In 2004, there was a 5% increase inthe number of tourists who had visited South Africa 10 times ormore.

Figure 5: Repeater Rates 2003-2004 - Air Tourists


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Figure 6 indicates that Namibia, Mozambique and Zambiashowed the largest improvement in repeater rates (visited SAmore than 10 times) since 2003. The Australian and UKmarket also showed a marked improvement.

Figure 6: Repeater Rates: Tourists who visited SA 10 times ormore

Although, according to Figure 7, Holiday was still the mainreason for tourists visiting South Africa in 2004, the proportionof holiday-makers overall who visit South Africa have,however, shown a decline of approximately 5% since 2003.

This decline has been cancelled out by an increase in touristscoming to visit friends and family and to shop. All otherpurposes of travel have remained relatively stable over thepast year.

Figure 7: Purpose of visit 2004 vs 2003


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Total foreign direct spend in South Africa

South African Tourism mentioned in their annual report that

the total foreign direct spend in South Africa by foreign touristsin 2004 was R47,8 billion, in nominal Rand terms. This is adecrease of 11,3% or R6,1 billion from R53,9 billion in 2003.

Analyses of the categories of foreign direct spend show thatexpenditure on capital goods and other expenses were thelargest contributors to the value captured in 2003. There wasless value captured from foreign tourists expenditure oncapital goods in 2004.

Figure 8: Average Foreign Direct Spend in SA by Category

Seasonality of foreign arrivals

The African countries in general, and in particular theneighbouring countries Swaziland and Mozambique, show alow seasonality in arrivals (Figure 9). On the other hand,seasonality of the main European markets and in particularSouth Africas largest market, namely the UK, is quite high.


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Figure 9: Arrivals from the UK - January to December

Given the volume of SADC arrivals, combined with the

seasonality of the other markets, the total number of foreignarrivals show a relatively even spread with a low point in mid-year and climb towards year-end, particularly in 2004(Figure 10).

Figure 10: Total foreign arrivals to SA


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Provincial distribution of foreign tourist arrivals

Provincial distribution is viewed from three perspectives: howmany provinces are visited by foreign tourists to South Africa,the distribution of bed nights and the distribution of valueacross the nine provinces.

A total of 6 677 839 tourists visited South Africa in 2004. Thetop four most visited provinces retained their position in 2004,

with KwaZulu-Natal attracting more visitors in 2004.Mpumalanga showed a decline in visitor totals in 2004 andremained in fourth place overall (Figure 11).

Figure 11: Provincial distribution (visitors) - 2004 vs 2003

Gauteng captured the most bed nights with Mpumalanga infourth place after Western Cape and KwaZulu-Natal.

Figure 12: Provincial distribution (bed nights)


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Figure 12 indicates that of the R43,2 billion spent in SouthAfrica by foreign tourists in 2004, the different provinces eachreceived different contributions.

Figure 13: Total value per province (R-billion) - 2004 vs 2003

Length of stay of foreign tourist arrivals

One of the strategic objectives of South African Tourism is toexpand the length of stay of tourists visiting South Africa. This

implies that the longer visitors spend in the country, the morelikely they are to participate in tourist activities and visit more

provinces and consequently increase their contribution to theeconomy.

The average length of stay for all foreign tourists visiting SouthAfrica was 9 days in 2004 compared to 10 days in 2003. Thisdrop in the length of stay is attributed to business touristsspending fewer nights on average in South Africa.


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Figure 14: Length of stay 2003 vs 2004

Figure 14 indicates that the average length of trips is higherthan the most common length of stay. The most commonlength of stay of all foreign tourists remained constant in 2004,with more tourists staying 2 nights, and fewer tourists staying 7and 14 nights. However, the differences in the most common

length of stay are more prevalent at a market level.

Activities undertaken by foreign tourists to South

Africa

Figure 15 indicates that the most popular activities undertakenin South Africa include Shopping, Nightlife, Socialising, Visitingnatural attractions, Wildlife, Visiting Beaches and Cultural,Historical and Heritage Sites.

Figure 15: Activities undertaken in South Africa 2003/4


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Experience of foreign tourists in South Africa

The strongest draw card for tourists who visited South Africa in

2004 was its scenic beauty (21.2%). South Africas wildlife,game reserves and hospitality (and friendliness of itscitizens) were also some of the top experiences touristsmentioned. Three in every four tourists who visited SA did not

experience unlawfulness or poor service, nor did they have anunpleasant experience (Figure 16).

Figure 16: What was your most positive experience in SA?

Figure 17: What was your most negative experience in SA?


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Satisfaction of foreign tourists

Tourists who visited South Africa in 2004 were most satisfied

with the hospitable and friendly people and the generalinfrastructure in the country. Transport, i.e. both domesticflights and public transport, were rated poor by tourist whovisited the country (Figure 18).

Figure 18: Satisfaction

2. TYPES OF TOURISTS - DOMESTIC MARKETS

Total number of overnight trips

The total number of overnight trips in South Africa is 49,3million, according to South African Tourism 2004. More than

60% of the trips are for VFR purposes, with Holiday trips only

accounting for 16% of the total number of trips. However, theRand value delivered by these markets does not equate totheir respective volumes (Figure 19).


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Figure 19: Total number of overnight trips

Types of trips by generating province

KwaZulu-Natal, Gauteng, Eastern Cape and Western Capegenerate over 70% of domestic trips in South Africa whileMpumalanga only generates 2,1 million overnight trips perannum, according to Figure 20.

Figure 20: Types of trips by generating province

Types of trips by destination province

According to Figure 21, KwaZulu-Natal (28%), Gauteng (17%),Eastern Cape (15%) and Western Cape (10%) dominatedomestic market share of trips received, with Mpumalanga in

8th place which received 2,5 million overnight trips.


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Figure 21: Type of trip received by destination province

Inter and Intra-provincial trips

According to Figure 22 only 39% of all domestic trips in SouthAfrica are undertaken outside the province of residence.

Figure 22: Inter and Intra-provincial trips

The majority of trips in KwaZulu-Natal (77%), Western Cape(71%) and Eastern Cape (76%) are driven by intra-provincialtravellers (Figure 23).


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Figure 25: Domestic vs International Seasonality

Total direct domestic spend = R47 billion

The holiday market accounts for a significant 45% of totaldirect domestic spend despite accounting for only 16% ofvolumes, versus the VFR market which accounts for only 37%of direct domestic spend but 65% of volumes according toFigure 26.

Figure 26: Total direct domestic spend

Spend by generating province

Four of the provinces generate over 81% of tourism spend,including Gauteng (31%), KwaZulu-Natal (21%), Western

Cape (15%) and Eastern Cape (14%). (Figure 27)


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Figure 27: Spend in generating province

Spend by provincial receipts

The same four provinces also benefit from the highest tourismreceipts with KwaZulu-Natal receiving 29% of receipts followedby Gauteng and the Western Cape at 18% each and theEastern Cape with 14% (Figure 28).

Figure 28: Spend by provincial receipt

WAYS IN WHICH SAT TARGET PARTICULAR

MARKETSAs discussed under marketing earlier on, it is important thatthe tourist market should be segmented.SAT (2004) identifies six strategic objectives that will be

implemented at national, provincial and local level in terms ofconsumer segments.


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On the one hand, we have the demand. The demand is thepeople who would like to make use of the product or servicethat is on offer. Another word for the demand in tourism is thetourism market. The market can either be classified as theinternational market (people from overseas) or the domesticmarket (people from South Africa). On the other hand, wehave the supply. The supply side is the products or serviceswhich we can offer the tourist. This can be attractions,facilities, resources or services.

If the tourism product is demand-driven, it means the marketdetermines what they would like to do,to have and to experience. However, if the tourism destinationis supply-driven, it means the destination decides what theywould like to offer the tourist. The danger which lies in this isthat the tourist might not want what is on offer.

This is what happened in the example above where the persondecided to buy the transport before determining whether therewas a demand (market) for it.

Say for instance the tourists (market) would like to doadventure activities and the destination does not present any,this could be an ideal opportunity to undertake productdevelopment. Product development is creating somethingnew, as an entrepreneur would do. However, the advantage isthat because research was done, there is a better probabilityof success because we know this is what the market wants.The product is therefore demand-driven.


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WAYS IN WHICH TO MAINTAIN THE CURRENT

MARKETTo really determine the feasibility of tourism products ortourism destination, Hall (2000) identifies the following criteriaa destination should boast to make it viable and to maintainthe current market.

There should be a set of cultural, physical, social andnatural characteristics in the area.

There should be an adequate tourism infrastructure ormoney to develop it.

The area should be larger than only the community ortourism product.

The area should contain already existing tourist attractionsor the potential to support the development of attractions todraw tourists.

The region or product should be accessible to a largepopulation base. Public authorities or elected council must take

responsibility for planning and management.An active private sector.

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Hotoco March 17 2011-9-12 Am Grade 12 Tourism 2011 Gr12 Trsm Mod2 Unit5

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