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SRU 15102002

Presentation to the Portfolio Committee: Domestic Tourism in South Africa

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SRU 15102002

Strives to contribute

to …

Sustainable GDP Sustainable GDP growthgrowth

Sustainable GDP Sustainable GDP growthgrowth

Sustainable job Sustainable job creationcreation

Sustainable job Sustainable job creationcreation

Redistribution and Redistribution and transformationtransformation

Redistribution and Redistribution and transformationtransformation

… through delivering

sustained ...

Increases in tourist Increases in tourist volumevolume

Increases in tourist Increases in tourist volumevolume

Increases in tourist Increases in tourist spendspend

Increases in tourist Increases in tourist spendspend

Increased length of Increased length of staystay

Increased length of Increased length of staystay

Improved geographic Improved geographic spreadspread

Improved geographic Improved geographic spreadspread

Improved seasonality Improved seasonality patternspatterns

Improved seasonality Improved seasonality patternspatterns

… by acting in a

focused way to …

Understand the Understand the marketmarket

Understand the Understand the marketmarket

Choose the attractive Choose the attractive segmentssegments

Choose the attractive Choose the attractive segmentssegments

Market the Market the DestinationDestinationMarket the Market the DestinationDestination

Facilitate the removal Facilitate the removal of obstaclesof obstacles

Facilitate the removal Facilitate the removal of obstaclesof obstacles

Facilitate the product Facilitate the product platformplatform

Facilitate the product Facilitate the product platformplatform

Monitor and learn Monitor and learn from tourist from tourist experienceexperience

Monitor and learn Monitor and learn from tourist from tourist experienceexperience

Promote Promote transformationtransformation

Promote Promote transformationtransformation

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SRU 15102002

South African Tourism’s core business is marketing South Africa as a preferred international tourist destination, but this does not occur in a

vacuum…

•

Investment

ProductDevelopment

ProductsProducts

Customers Customers

Domestic TourismDomestic Tourism

Do

mes

tic

To

uri

sm B

ase-

load

International Tourism StrategyInternational Tourism StrategyInternational Tourism StrategyInternational Tourism Strategy

Who do we

organise against

to win, and how?

- Who?

- Where?

- What?

- When?

- How?

Access

- Visas

- Flights

- Channels

MarketingMarketing

ChannelsChannels

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SRU 15102002

Domestic Tourism and the African Market are the bed-rock of the sector

Split of SA’s International Tourists by Long-Haul and

Short-Haul (2001)

1.70 million

4.09 million

Short-Haul(SADC, Central & East Africa)

71%

Long-Haul (Overseas and North Africa)

29%

Split of SA’s International and Domestic Tourists (2001)

5.79 million

9.86 million

Domestic

63%

International

37%

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SRU 15102002

How did I travel to my destination?

Taxi (43%)Car (21%)

Length stay: 6.2 nightsSpend in SA: 216 R/day

How did I travel to my destination?

Taxi (43%)Car (21%)

Length stay: 6.2 nightsSpend in SA: 216 R/day

Informed by:Friends or family (42%)

Radio (12%)Television (9%)

Newspaper (7%)

Informed by:Friends or family (42%)

Radio (12%)Television (9%)

Newspaper (7%)

Where did I go?KZN (19%)

Western Cape (16.2%)Gauteng (15.9%)

Northern Cape (14%)

Where did I go?KZN (19%)

Western Cape (16.2%)Gauteng (15.9%)

Northern Cape (14%)

Where did I stay?With Friends /family (24%)

Own holiday house, flat (29%)Stayed in the house of friends/relatives (23%)

Where did I stay?With Friends /family (24%)

Own holiday house, flat (29%)Stayed in the house of friends/relatives (23%)

What attractions did I visit?Durban/Westville/Bluff (8%)Johannesburg/Plaza (6%)

Cape Town/Claremont (5%)

What attractions did I visit?Durban/Westville/Bluff (8%)Johannesburg/Plaza (6%)

Cape Town/Claremont (5%)

What am I interested in doing? Go to the beach (63%)

Shopping (56%)Visit a historical site (53%)

What am I interested in doing? Go to the beach (63%)

Shopping (56%)Visit a historical site (53%)

Source: SAT Departure Survey 1998-2000, Monitor Analysis

Mainly female (54%) visitors between 25-44 years (45%) with

income of less than R 750/ month per household (33%)

The Domestic Traveller

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SRU 15102002

Domestic Trips in South Africa34 million trips per annum

0

10

20

30

40

50

60

Holiday, Leisure Friends & Relatives Business Health Religious

%

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SRU 15102002

Tourism activities that dominate SA tourism’s product portfolio are:

Progressive, educational travel which conserves the environment and benefits local communities

Scenic beauty, nature / wildlife reserves, botanical gardens

Sun and Sand

Sports Adventure

Culture

Shopping

EntertainmentHealth

Religious

Trade

Ecotourism

MICE

Meetings, incentives, conferences and events

Beach activities

Religious gatherings Shopping in malls Wilderness and challenging environment

Scuba diving, skydiving

Taking part in a sports event or being a spectator

Medical treatments, health operations

Spa waters, springs

Dining, night life, visiting a casino, live shows, dancing

Visiting social, cultural, political and historical attractions

Meeting with suppliers / customers

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SRU 15102002

The Main activities are entertainment and shopping

Market Size

(Million Rand)

Entertainment R 9,912

Shopping R 8,985

Ecotourism R 6,201

Sports R 4,748

Sun and sand R 4,105

Culture R 4,015

Adventure R 3,705

MICE R 2,002

Trade R 1,577

Health R 1,254

Religious R 1,174

R 0 R 5,000 R 10,000 R 15,000 (Million R)

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SRU 15102002

2.80.2

0.9

0.75.5

1

0.8

0.6

0.2

2.9

20.1

0.3

0.30.6

0.3

0.2

1

0.8

0.4

1.3

2.9

1.6

1.7

1.9

1

2.1

0.9

5.5

1.6

0.5

1.1

2.1

6

1.8

1

0.6 0.5

0.7

1.8

0.6

1.7

8.4

1.9

0.9

0.7

3.6

1.3

1.6 4.81

1.10.2

0.4

0.5

6.4

2.6

0.60.5

2.5

Eastern Cape

Northern Cape

Western Cape

North West

Free StateKwaZulu-Natal

Gauteng

N Province

Mpumalanga

DURBAN NORTH

DURBAN SOUTH

DURBAN OUTER WEST

DURBAN CENTRAL

VOLUME

24229 - 100000

100000 - 200000

200000 - 500000

500000 - 1000000

1000000 - 2148000

Layers

Tourism Regions

Provincial boundaries

KM

2001000

Proportion of domestic tourism market visiting each region

All trip types excluding 1 day excursions

Figure 1: South Africa

E

Produced by: GIS Centre:HSRC

Enlargement of Durban Metro

Source: Domestic Tourism Survey, 2001

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SRU 15102002

EC FS GT KZN MP NC NP NW WC

Scenery & beauty Economic Beach/SeaGame Reserves Entertainment Shopping

Major Attractions in each province

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SRU 15102002

There are a number of challenges that face the domestic tourism market in SA. Some of these issues are not only essential for domestic tourism

but for growth of the international market too…

Arrivals to South Africa (1998-2001)

Gauteng24.3%

Western Cape 38.0%

KZN16.4%

Other 21.3%

Share of Nights Spent by Province (2000)

• Economic constraints on local tourists

•We know that LSMs 8-10 already travel locally and internationally,

•The challenge of the Domestic Strategy is to encourage South Africans who may not currently be able to, or who do not believe they are able to, to be tourists in their own country, South Africa

•The involvement of SMME’s in the industry

$

0

100

200

300

400

500

600

700

•The flow of funds

•BE and equity

•Job creation

•Opportunities for PDIs

•Participation & benefit for all South Africans

•Unlock the value of domestic and African markets

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SRU 15102002

The Welcome Campaign has been launched to address some of these issues

Objectives•Get South Africans ready to receive tourists: understand the benefits, their role and the expectations of tourists.

•Encourage South Africans to travel domestically and use South African Tourist products through the “Tourism Month” promotions.

•To facilitate the creation of the appropriate conditions for delivering a high quality, satisfying tourism experience. These conditions are:

•Safety and health

•Clean environment

•High standards and good service

•Information and access

•The message and activities of Welcome must add value to the international campaign

•Welcome talks to international tourists as well as locals

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SRU 15102002

Consumers as tourists in South

Africa are demand drivers

South Africans deliver

and enhance

the tourism experience

Drive up the demand standardBuild capacity and capability

Understand the value

The link between domestic tourism campaigns and international tourism development in SA critical

Be a tourist in your own country

Welcome touristsBe prepared for tourists

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SRU 15102002

It is important for South Africa to have a well developed Domestic Tourism market. DEAT & SATourism’s role, going forward, is to…

Campaigns to stimulate South Africans to travel more

Develop market intelligence with provinces and help to facilitate implementation

Conduct domestic tourism research

•Understand the size of the domestic tourism market

•Calculate the value of the domestic tourism industry

•Understand the industry structure, how employment is created

•2002/3 domestic research project is underway

•Identify marketing opportunities for each province through segmentation

•Identify consumer needs in terms of product development

•Develop ways to mobilise the industry to support SMME’s and transformation

•Poverty alleviation via through tourism related projects (DEAT poverty relief study)

•Welcome campaign

•Tourism Month campaign

•“Tourism is everyone's business-play your part”

DEA

T – P

olic

y d

river -

en

ab

ler

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SRU 15102002

Thank You

Tourism is everyone's business, play your part !