annual report northern cape tourism authority - … · dmc management companydestination sancb...

AnnuAl RepoRt 2015/2016

www.experiencenortherncape.comwww.experiencenortherncape.com

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Designed & printed by SwiftPrint, Tel: 053 839 2900, Kimberley

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SubmiSSion of AnnuAl RepoRt ........................................................................ 3

Part A General information1. publiC entitY’S GeneRAl infoRmAtion ........................................... 5

2. liSt of AbbReViAtionS/ACRonYmS ....................................................... 6

3. StRAteGiC oVeRVieW ................................................................................... 8

4. leGiSlAtiVe mAnDAteS .............................................................................. 9

5. oRGAniSAtionAl StRuCtuRe ................................................................ 10

6. foReWoRD bY tHe CHAiRpeRSon ......................................................... 11

7. CHief eXeCutiVe offiCeR’S oVeRVieW ............................................. 12

Part B performance information1. StAtement of ReSponSibilitY foR peRfoRmAnCe

infoRmAtion ................................................................................................. 16

2. AuDitoR GeneRAl’S RepoRt: pReDeteRmineD obJeCtiVeS ..... 17

3. peRfoRmAnCe infoRmAtion bY pRoGRAmme ............................ 183.1. programme 1: marketing and promotion ............................................. 183.2. programme 2: Administration ................................................................. 57

Part C Governance1. intRoDuCtion .............................................................................................. 64

2. poRtfolio CommitteeS ......................................................................... 64

3. eXeCutiVe ....................................................................................................... 64

4. tHe boARD ....................................................................................................... 64

5. RiSK mAnAGement AnD inteRnAl ContRol ................................ 67

6. inteRnAl AuDit AnD AuDit CommitteeS ...................................... 68

tAble of ContentS

www.experiencenortherncape.com

Annual Report 2015/2016

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Part A

7. CompliAnCe WitH lAWS AnD ReGulAtionS ................................. 68

8. fRAuD AnD CoRRuption.......................................................................... 68

9. minimiSinG ConfliCt of inteReSt .................................................... 68

10. CoDe of ConDuCt ...................................................................................... 68

11. HeAltH SAfetY AnD enViRonmentAl iSSueS ............................... 68

Part D Human Resource management1. intRoDuCtion .............................................................................................. 69

2. HumAn ReSouRCe oVeRSiGHt StAtiStiCS ....................................... 69

Part E financial information1. StAtement of ReSponSibilitY .............................................................. 73

2. RepoRt of tHe AuDitoR-GeneRAl to tHe pRoVinCiAl leGiSlAtuRe on tHe AnnuAl finAnCiAl StAtementS of noRtHeRn CApe touRiSm AutHoRitY ............................................. 74

3. AnnuAl finAnCiAl StAtementS .......................................................... 77

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t ASubmiSSion of AnnuAl RepoRt

Honourable macCollen Jack

MEC FINANCE, ECONOMIC DEVELOPMENT AND TOURISM

Dear meC

it gives me great pleasure to submit the Annual Report of the northern Cape tourism Authority for the financial year 1 April 2015 to 31 march 2016 for your information and scrutiny, as well as for presentation to the northern Cape provincial legislature and other relevant institutions.

This report presents our activities and outcomes for the period under review, while at the same time highlighting those challenges faced. it also highlights our contribution towards the development goals of the province and living the principles of batho pele in everything we do. ensuring that the northern Cape gets its equitable and increased share of the tourism market has always been and will continue to be a challenging task. i believe that this has been the year in which the board and nCtA staff truly excelled by closing the gaps and reaching those goals, which were once beyond our wildest dreams. Through hard work and creative ‘out-of-the-box’ approaches, we have managed an unprecedented level of success and a distinctly heightened profile for the province. it gives our board great pride to present a notably comprehensive Annual Report, which outlines successes achieved in the finest detail as well as highlighting challenges experienced. We have put in place every possible measure to convey these successes and challenges in a language that is easily assimilated by those working closely with tourism stakeholders as much as those to whom tourism is a relatively new concept in their respective portfolio. i respectfully urge the Honourable meC to specifically note some challenges with which the board will continue to grapple and which require the urgent support from the provincial executive, to whom we remain grateful for sharing our vision in their continued commitment towards tourism development.

Yours sincerely

Colin FortuneChairperson: Northern Cape Tourism Authority



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Part A

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t APART A GeneRAl infoRmAtion

1. publiC entitY’S GeneRAl infoRmAtion

ReGiSteReD nAme: northern Cape tourism Authority

pHYSiCAl ADDReSS: 15 Villiers Street Kimberley 8301

poStAl ADDReSS: private bag X5017 Kimberley 8300

telepHone numbeR/S: (053) 833 1434

fAX numbeR: (053) 831 2937

emAil ADDReSS: [email protected]

WebSite ADDReSS: www.experiencenortherncape.com

eXteRnAl AuDitoRS: office of the Auditor General South Africa

bAnKeRS: first national bank



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Part A

2. liSt of AbbReViAtionS/ACRonYmS

AGSA Auditor General of South AfricameC member of executive CouncilCeo Chief executive officerCfo Chief financial officerpfmA public finance management ActtR treasury Regulationsmtef medium term expenditure frameworkSmme Small medium and micro enterprisesSCm Supply Chain managementnCtA northern Cape tourism AuthoritymiCe meetings, incentives, Conferencing and exhibitionsntSS national tourism Sector StrategySA South AfricanC northern CapeJmA Joint marketing AgreementKpA Key performance AreaSAt South African tourismpR public RelationsSADC South African Development CommunityRto Regional tourism officesApp ApplicationsAmeSA Association for mathematics, educators of South AfricaCRm Customer Relations managementASS Associationmtb mountain bikinguK united KingdomWtm World travel marketAttA African travel and tourism AssociationSSC Supersonic Carbee black economic empowermentmSCC mittah Seperepere Convention CentrepCo professional Conference organiserDmo Destination marketing organisationDmC Destination management CompanySAnCb South African national Convention bureauSAACi Southern African Association for the Conference industryeibtm european incentives, business travel and meetingsibtm international business travel and meetingsDSAC Department of Sports, Arts and CulturepCb provincial Convention bureau

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KDC Kimberley Diamond CupSete Sports & events tourism exchangeACSA Airports Company South AfricauSA united States of AmericaGWK Griekwaland-Wes KorporatiefDet Department of tourismminmeC ministers and members of executive CouncilSAtSA South African tourism Services AssociationHR Human ResourceseAp employee Assistance programmeDeDat Department of economic Development and tourismeXCo executive CommitteeAfS Annual financial StatementsGRAp Generally Recognised Accounting practisepAA public Audit Actitb internationale tourismus-börse VS Versusfit free independent travellerAbtA American Association of tour operatorsbAptA british Association of tour operatorsAStA American Society of travel AgentsSAtoA South African travel AssociationAttA Adventure travel trade AssociationVip Very important personCtiCC Cape town international Convention CentreSeo Search engine optimizationSAWmA South African Wildlife management AssociationfifA fédération internationale de football AssociationDoe Department of educationnoCCi northern Cape Chamber of CommerceHomS Head of mission DesignatesSpu Sol plaatje universitySpm Sol plaatje municipalityDSD Department of Social Developmentmou memorandum of understandingpStf public Sectors trainers forumSASAff South African fitness Sport Aerobic federationSASAii South African Sports Association for the intellectually impaired



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Part A

3. StRAteGiC oVeRVieW

3.1 Vision

The northern Cape is South Africa’s premier destination for extreme escapism, exploration and adventure with tourism growth outstripping the national average. tourism exists in harmony with nature and is a major generator of jobs, income and community pride

3.2 Mission

The nCtA promotes the northern Cape as a highly desirable tourism destination, in a responsible and sustainable manner.

3.3 Values

The nCtA is driven by the following guidelines:it values the contribution of its staff, recognise their performance and appreciate them as people;it strives for superior delivery of customer service, both internally and externally;it is committed to make the northern Cape a top-of-mind destination in South Africa;When performing our duties there will be trust that each staff members is honest and reliable;All staff members will respect each other and communicate in a manner that demonstrates this;We will act with dignity at all times when we deal with our internal and external publics in order for them to trust us;our internal and external publics will value dealing with us because of our high degree of professionalism andteam spirit will be built and fostered to make the northern Cape tourism Authority a great place to work.

3.4 Strategic Orientated Goals

to achieve above-average growth in domestic and international tourist arrivals and revenues, focusing specifically on improving the market yield of tourism and achieving:

increased expenditure by tourists visiting the province;Reduced seasonality and improved tourist flows and revenues throughout the year;longer average stays per tourist.

to establish a sought after and widely recognized northern Cape tourism brand.

to coordinate and optimize the marketing efforts and resources of the Government, the private sector and tourism communities.

to work closely with the Department in packaging and presenting tourism attractions and experiences at the highest possible standard and in accordance with market demand.

to support transformation of the industry through improved marketing exposure and access, with a particular focus on tourism Smmes.

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3.5 Overview

Given our limited resources most notable financial and human, the nCtA, as a destination marketing authority implements its activities in the most cost effective output driven manner. The nCtA promotes the northern Cape generically in terms of its unique selling points as an all seasons, year round preferred adventure, cultural and nature destination, utilising marketing initiatives that are guided by six key performing areas. We also work to engender a travel culture among the northern Cape residents and to develop the northern Cape potential as a business events destination.

Domestic tourism is high on our agenda. We address seasonality through all year round campaigns including the national domestic campaign. The nCtA `s international approach is focused, cost effective and customer driven. We persistently undertake to play smarter,’ in the increasingly competitive market by adopting South African tourism`s market segmentation research into key spend and volume markets that highlights areas where the northern Cape tourisms marketing efforts will reap the greatest returns. The organisation has also embarked upon an aggressive e- business strategy that includes digital, social media engagement and a website, www.experiencenortherncape.com. The nCtA participates in travel shows and exhibitions (strategically selected - based on northern Cape product offerings). We host overseas and domestic media, tourism trade and government delegations. The organisation also maintains and utilises a database of domestic and international travel trade and other related role players, disseminated to stakeholders.

We coordinate advertising, public relations and direct mailing campaigns. We articulate opinions to the media with regard to strategic tourism matters through arranging media conferences and drafting media releases. We engage in Joint marketing Agreements with international and domestic tourism partners, which allows us to leverage off our partners and create investment for the province. furthermore the nCtA is active in promoting the northern Cape as a destination for business events. The NCTA demonstrates an unwavering commitment towards industry transformation. We partner with the relevant government departments, local, provincial partners, product owners (routes), media (local and national) and e-marketing platforms to enhance Smme exposure. networking platforms are created at our exhibitions, stakeholder meetings and trade meetings. Good cooperative governance essentially consists of effective leadership, it requires leadership that is able to integrate decision making, strategy and sustainability. it also calls for an inclusive and collaborative approach with stakeholders, founded on the need for effective dialogue and engagement. largely thanks to the visionary leadership of the nCtA management team and the stability of the organisation with minimal staff turn-over, the nCtA is able to achieve its goals more rapidly than rival destinations.

4. leGiSlAtiVe mAnDAteS

• public finance management Act, Act 1 of 1999• treasury Regulations• northern Cape tourism entity Act,2008 (Act no.5 of 2008)• labour Relations Act 66 of 1995• basic Condition of employment Act 75 of 1997• employment equity Act• Skills Development Act 97 of 1998• occupational Health and Safety Act• unemployment insurance fund Act• national tourism Sector Strategy (ntSS)• White paper on the Development and promotion of tourism in the northern Cape province



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Part A

5. oRGAniSAtionAl StRuCtuRe

northern Cape tourism board

northern Cape tourism Authority

1 x Chief executive officer

financial management

1 x Chief financial officer

1 x financial manager

1 x financial Clerk

1 x Supply Chain officer

1 x Supply Chain Clerk

marketing

1 x General manager

1 x marketing Communications officer

2 x marketing officers

1 x marketing Assistant

1 x Researcher

1 x marketing Support Clerk

business tourism

1 x General manager

1 x events Coordinator

1 x miCe Assistant

1 x events Support Clerk

Administration Support Services

1 x manager: Admin Support

1 x Receptionist

1 x Cleaner

1 x it officer

Human Resources

1 x HR manager

1 x HR Clerk

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6. foReWoRD bY tHe CHAiRpeRSon

i am pleased to report that the period under review remained one of growth and consolidation in terms of the provincial investment in tourism. This confidence in investing into what constitutes the world’s largest employer continues to pay dividends not only economically, but also socially as pride and service levels are raised and new tourism entrepreneurs come to the fore ready to showcase their unique cultural products. The northern Cape remains a strong contender against other better resourced provinces.

Governments across the world have realised the positive value and economic growth that tourism brings hence more and more are embracing it. South Africa is no different and therefor our national Development plan features the tourism sector as an important economic driver. following two decades of consistent and impressive growth, 2015 was not a good year for tourism in our country. Global and local economic pressures took their toll and perceptions of health risks discouraged travel to Africa. Visa and other travel documentation requirements had a further negative impact on tourism.

Sustaining positive growth in the number of tourist arrivals and the revenue generated in the ever-changing global and domestic environment is a constant challenge. Recently, our biggest challenge in promoting our province was the weakening South African Rand against a number of foreign currencies.

The northern Cape tourism Authority has made tremendous progress despite limited funds, stretching our Rand as far as possible through strategic partnerships. our collective future remains defined by not least the ability of the northern Cape tourism industry to adapt to ever changing trends and takes advantage of new opportunities. We dare not lose our market share and must continue to invest in this sector which has performed so diligently to reach its present level. We are respected at the highest level domestically, regionally and internationally.

Domestic tourism remains high on our agenda in order to ensure its increased contribution to tourism growth. During the past two years, Domestic tourism has been under pressure as the economy grew sluggishly and unemployment figures continued to rise. We believe our cross-seasonal campaigns, together with renewed focus on our established routes, will enable us to grow our domestic market significantly. Growing the leisure and business events industries presents us with further opportunities to contribute to local, and especially rural economic growth.

As a demonstration of excellent controls, good governance and the upholding of the highest performance measures, i am pleased to report that for the period under review our results-driven organisation once again received a clean audit report for the 2015/2016 financial year. This result also feeds into a repeat plea from this board that the provincial government and other tourism stakeholders increase their investment into tourism, both in terms of human resources and finances. The size of our current investment, though increased, is eroded by inflation and we are continually competing with rival destinations, especially on the international front.

in line with our judiciary responsibilities the northern Cape tourism board has developed a five year strategic plan and an annual performance plan which was accepted by our parent department. This required an informed and deep understanding of the micro-and macro-economic environment in which we actively market and promote the northern Cape province as a preferred leisure and business events destination. These plans are aligned to the national Development plan (nDp), the national tourism Sector Strategy, the provincial Growth and Development plan as well as the tourism master plan.

in adhering closely to these plans, the northern Cape tourism Authority endeavours to contribute to the important objectives of job creation and economic growth. tourism is already an important sector of the northern Cape economy and there is no doubt that its position will strengthen over the next planning period. We look forward to working with local, provincial and national government, the tourism industry and all stakeholders to deliver the expected results.

i would like express our sincere gratitude and appreciation to the Honourable meC, mr mac Jack, for his visionary leadership. We also appreciate the unwavering support of the Acting Head of Department, mrs Hendrina Samson, and her colleagues at the provincial Department of economic Development and tourism. ms Sharron lewis, Chief executive officer of the nCtA, continues to inspire her team with commitment to service excellence, timeous delivery and, most importantly, she does it with passion.

together, we encapsulate batho pele!

Colin FortuneChairperson: Northern Cape Tourism Authority

may 2016



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Part A

7. CHief eXeCutiVe offiCeR’S oVeRVieW

THE YEAR IN REVIEWThe provincial investment into tourism indeed continues to yield high returns, with a positive impact that extends beyond the province to the rest of the country. The value is inherent in the fact that by promoting the unique northern Cape brand, its features and benefits as a tourist destination is really an investment in all aspects of the provincial fiscal health. The period in review is no exception despite serious economic constraints nationally and internationally. The activities of team nCtA during the year under review were undoubtedly underpinned by an unprecedented level of innovation, creativity, networking and public-private sector collaborative engagements resulting in the acknowledgement and status of brand northern Cape as a formidable competitor in the global tourism space. our organisation continues to collect prestigious accolades, including most recently achieving:

• VotedLeadingSportTourismDestinationinAfrica2014byBusinessDestinations• VotedasNo6mustdoworldregionbyRough Guides 2016 (only region in Africa to be nominated and competitors included

Alaska, uSA, Gujarat india, tasmania in Australia , Quebec in Canada, tohoku in Japan, then nC in South Africa, lombok in indonesia, Calabria in italy, Castilla Y leon in Spain and inally in no 10 position Western isles in Scotland).

• AfrikaBurnvotedasoneofthemustattendeventsin2016bytheprestigiousSundayTimesTravelMagazineUK‘essentialguide to events and festivals 2016

Monitoring Performance: The nCtA remains on a growth trajectory.

Northern Cape Brand: The province remains true to its “Real” and “extreme” positioning. This continues to stand us in good stead despite the fact that inflation has dipped into our investment. We have recently seen that this positioning was absolutely spot-on in terms of global travel trends, with key themes such as Disconnect to reconnect, Adventures off the beaten track, multigenerational family travel and Rewarding cultural experiences as four crucial elements that will shape the way South Africa is packaged for the future. brand performance continued its growth path and offered top of mind visibility to the trade and the travelling public. A total of 62 244 articles featured online, on radio, television and in print, (69% growth) reaching a potential global audience of 193 billion, (246% growth) generating a media value of R71 billion, (1665% growth). (Source: Meltwater Media Monitoring Service)

Domestic Marketing remains high on our agenda: We continue to focus on geographical spread, seasonality and destination promotion. our activation campaigns have proven enormously successful, despite currency fluctuations. We have once again shown successes through our seasonal, cross-border, special interest and brand pillar campaigns. The three seasonally based domestic campaigns, namely Summer, easter and Spring/flowers, resulted in 68 articles (up from 56 the previous period under review), reaching a potential audience of 27 million (583,358 the previous period), at a rand value of R309 million from R2,7 million the previous year. (Source: Newsclip and Meltwater Media Monitoring Services and magazine articles)

International Marketing: our focus on the international arena remains Strategic. We adopt a focused cost effective and customer driven approach to play smarter in the increasingly competitive global market. We work closely with South African tourism to leverage off their extensive marketing intelligence network, campaigns and business tourism initiatives. in terms of the global picture, the nCtA is in the same position as any other tourism organisation across the globe: every destination faces challenges at the best of times. During the worst of times, namely the global economic crisis, pivotal strategic partnerships are increasingly forged in line with a ‘strength in numbers’ strategy.

Market Research and Information Management: Journalists and the travel trade alike are more easily convinced if we are able to show them dependable, relevant and segmented statistics for a particular sector that interests them. to this end, the nCtA’s marketing strategies are enhanced through information management and valid, reliable market research. The investment made in the marketing campaigns, advertising, joint marketing agreements, media investment, e-marketing platform has showed an impressive return on our investment and contributed to increased destination awareness, subsequent arrivals and increased length of stay:

Media Educationals: in partnership with SA tourism resulted in 57 articles with a potential audience reach of 17 million at a

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rand value of R169 million.

Media Campaigns: 42 editorials were developed and distributed to media partners internationally. This resulted in a total of 38 841 articles (888% increase) reaching a potential audience of 153 billion (225% increase) at a rand value of (R51 billion) (1487% increase). (Source: Meltwater Media Monitoring Service)

Joint Marketing Agreements: our joint marketing trade partnerships delivered a good return on our investment resulting in a total of 4548 rooms nights sold with a rand value of R7.1 million vs the 1 961 bed nights sold at a rand value of R 5.3 million in the previous financial year .

Social Media: it is crucial to serve the needs of “Millennials” who actively embrace mobile technology and mobile payment methods. travel websites serve as virtual shop windows which can be shared in real time. opinions of fellow social media “friends” and “followers” are especially valued. Hence the nCtA continues to expand and increase our social media engagements. our facebook increased by 69%, reaching 2 million, with twitter tweets increasing to 2 647, representing a 16% growth. Youtube views increased by 92% to a total 6 798 views. our newly created instagram page has 234 followers to date. The northern Cape events facebook platform currently has a reach of 4.2 million. (Source: Social media performance statistics, Facebook, Twitter, and YouTube)

our website has been upgraded and is now fully, mobile and tablet compatible. We maintained our top ranking on the global search engines. for the period in review 140,502 visits were recorded, a total of 97,124 unique users visiting an average of 4.38 pages per visit and remaining on site an average of 2.39 minutes. most travellers favour the affordable option after researching on travel review websites. They prefer to manage bookings themselves using online travel booking websites. (Source: South African Tourism Domestic Insights Study- April 2016)

Effective Brand Communication is a measure of our success, however attracting visitors and enticing them to return is where we truly benchmark ourselves: The northern Cape experienced a 34.7% decline in international arrivals to the province, a decrease of 2.1% in room nights booked and a consequent 12.7% decrease in foreign spend within the province. Although northern Cape experienced a decline in tourism arrivals and spend, length of stay increased to 8, 3 nights from 5.5 in the previous year, with more international visitors including the province on their itinerary. This resulted in a 1.2% of total market share of international arrivals to the country. our Domestic performance declined in the first three quarters of 2015. in the first quarter of 2016 there was increase in revenue as compared to the previous year. Domestic tourism was negatively affected the economic recession and unemployment. in going forward we are working closely with South African tourism and our provincial partners to make travel more affordable for the Domestic market.

BUSINESS TOURISM (MEETINGS, INCENTIVES, CONFERENCE AND EVENTS): An unprecedented focus on miCe and events Development, continues to pay dividends. We continue to advance and complement our brand identity and aim to attract higher revenue visitors. business tourists are both domestic and foreign investors and they facilitate increased trade in goods and services. The Mittah Seperepere Convention Centre (MSCC) recorded a total of 74 business events (81 341 delegates representing an increase of 44% over the previous period. This translates into a R261 104 610.00 contribution to the provincial GDp - 65 % increase compared to the previous year. (Source: SAT and Stats SA Economic Indicators for determining the ROI and economic impact of events)

The nCtA supported 50 events during the period of review. participant and visitor attendance of 214 463, constituting an increase of 28% and a contribution of R140 200 278, 00 to the provincial economy. (Grant Thornton Calculation methodology)

BEST CORPORATE GOVERNANCE RECORD: Solid corporate governance practice is integral to optimal performance. The visionary leadership and the stability of the organization with a minimal staff turn-over enable the nCtA to achieve its goals more rapidly than many rival destinations. The nCtA has developed a staff component whereby every individual is responsible for managing a system as opposed to merely “having a job”. We value our staff, recognize their performance and appreciate them as people. This, in turn, feeds into our growth plan for the tourism industry. training and Development forms an integral part of our organizational focus to equip staff on a continued basis to enhance service delivery within a challenging work environment. Continues emphasis has been place on staff development to improve leadership and management through coaching and mentoring. We are committed to promoting sustainable confidence in our conduct as an organization and as a corporate citizen.



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Part A

Financial Discipline underpin our operations at every level, especially in light of ever increasing inflationary costs. We have built greater accountability for quality into the requirements for all managers such that the organization on operates on purpose-driven principles at all times. We will continue to exercise prudence, while we explore new opportunities for both leisure and business tourism to enhance our tourism performance. The entity achieved a clean audit for the financial year ending 31 march 2016.

Stakeholder Relations: Connecting with all layers of industry is critical for building beneficial cooperative relationships. The nCtA plays a leading role in marketing the province and in driving consumer demand. However, the delivery of the promise lies with the industry. Stakeholder reaction is critical for building a stable progressive tourism industry. The nCtA foster good tourism industry relations. in the absence of structured stakeholder institutions we engage in stakeholder meet and greet sessions to share industry related information with our regional partners, local partners and industry at large.

The NCTA remains mindful of the challenges of emerging enterprises and therefore supports all efforts to strengthen that their sustainability: Community-driven events represent a core aspect of our uniquely northern Cape offering. As such, we pay lip service to grassroots representation as community buy-in helps ensure the success of any event to which the nCtA attaches its brand. As a rule of thumb and especially during event partnerships, the nCtA endeavours to invest one third of our budget on local beneficiation. We partner with the relevant government departments, local, provincial, product owners (routes), media (local and national) and e-marketing platforms to enhance Smme exposure. networking platforms are created at our exhibitions, stakeholder meetings and trade meetings. The nCtA supported 50 provincial events and obtained employment figures for 39 of those events. The number of work days amounts to 142 and the total amount spend on temporary employment to R1 263 815.00. A total of 2 068 temporary employment opportunities were created. This represents an increase of 23% over the same period last year. 48 Smmes featured in a total of 26 articles, reaching a potential audience of 673 000 with a media value of R5 million.

While the global tourism outlook looks good we have to manage and address our challenges to stay competitive within an increasingly dynamic tourism industry. We are marketing in an enormously competitive global environment, however our efforts to improve our destination and visitor experience will not translate into increased tourist numbers unless we market well and continue to up our game, developing niche markets and keeping track of global trends. investment is continually required, and consistent adherence to service excellence standards.

tourism success is based on collaboration. Whilst our job is to create the demand appetite and desire to travel we are dependent on the northern Cape`s tourism industry to ensure that we deliver exceptional services and attention to detail to enhance the quality of our tourism experience. .Adequate tourism resource commitment at Regional and local government is critical to strengthen the marketing arm of the province.

We are committed to ensuring that we contribute towards the national Development plan objective of contributing towards a respectable standard of living for all citizens through eradication of poverty and reduction of inequality. in going forward we undertake to:

• remainfiercefullyproprietaryovertheprotectionandexpansionofourprovincialbrandbyinstillingcommunitybuyin–that seeks to transform our provincial industry sustainably

• lobby for the upscaling of our provincial research capacity: to direct decisionmaking amidst themany global economicchallenges we face and to address the disparity of tourism research models currently employed.

• intensifyourdomesticcampaignswithspecialfocusontheprovincialdevelopedroutesandthenationaldomesticcampaign.• expandtheprovincialtourismpackagetoenhancetourismvisitationandlengthofstay.• defendourcoremarkets,butrespondtoemergingmarketsresponsibilityespeciallytheBriggs(China)countries.• expandofourE-MarketingPlatformsbothdigitalandsocialmediatomeetconsumerdemandsandnewtrends.• emphasizedestinationaccessandvisitormobilityintheprovince.• highlightandembraceServiceexcellenceasaprovincialpriority.• signupmoreJMAnationallyandinternationally.• expandourBusinessTourismunit,withspecialfocusonevents.• committoimprovingstakeholderrelationsandpartneringwithrelevantdepartmentsandprivatesector.• enhancebroad–basedblackeconomicempowerment,tourismSMMEdevelopmentandtransformation.• workdiligentlytoretainourstatusofcleanauditreportandorganizationalprofessionalism.

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it is thanks to each of my staff members and management team that we are able to defy the odds when the trumps are down as we brainstorm an alternative way of approaching challenges. once again, a very special thank you to our board of Directors, especially the executive Committee, for their unwavering support and commitment to creating an enabling environment for nurturing our continuous commitment towards professionalism and good management. it is through such team efforts that, collectively, we can assist in the alleviation of poverty, inequality and unemployment.

Sharron LewisChief Executive Officer: Northern Cape Tourism Authority

may 2016



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Part B

PART B:peRfoRmAnCe infoRmAtion

1. StAtement of ReSponSibilitY foR peRfoRmAnCe infoRmAtion

Statement of Responsibility for Performance Information for the year ended 31 March 2016

The Chief executive officer is responsible for the preparation of the public entity’s performance information and for the judgements made in this information.

The Chief executive officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information.

in my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets as per the annual performance plan of the public entity for the financial year ended 31 march 2016. The performance information of the entity is set out on pages 18 - 72.


may 2016

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2. AuDitoR GeneRAl’S RepoRt: pReDeteRmineD obJeCtiVeS

The Auditor General has conducted some audit procedures on the performance information for usefulness and reliability, compliance with laws and regulations and internal control, but an opinion is not expressed on the performance information.

Refer to page 74 of the Report of the Auditor General’s Report, included in part e: financial information.



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Part B

3. PERFORMANCE INFORMATION BY PROGRAMME

3.1 Programme 1: marketing and Promotions

key Performance area 1: Brand management and Promotion aim: to develop and promote a highly sought after northern cape tourism Brand

strategy/ actionPerformance indicator

actual achievement 2014/15

Performance targetsPlanned target 15/16

actual Performance deviation

LocaL Brand aPPLicationApply the brand at key visitor gateways to the province

Brand touch PointsIdentify key visitor gateways eg airports, border posts, entry routes, boundaries, key tourism town entrances, visitor centres etc.

Achieved – Brand displayed at 1 gateway1 airport1 border postKey events

Display brand at 1 GatewayDisplay brand at 1 AirportDisplay brand at 1 Border PostBrand displayed at key events

AchievedAchievedAchievedAchieved

NoneNoneNoneNone

Negotiate agreements with relevant authorities and apply branding eg welcome signs and boards, directional and interpretive signage etc.

Brand endorsementExplore and develop an industry “brand family” of facilities, operators, industry organizations that endorse the brand and use it in conjunction with their own brands

Achieved – Concluded co-operative branding agreements with

6 Provincial Departments5 District Municipalities6 Local Municipalities5 Private Operators/Products

Conclude co-operative branding agreements with:-

6 Provincial Departments5 District Municipalities6 Local Municipalities5 Private Operators/Products


NoneNoneNoneExceeded - we have partnered with 15 products/operators and event organisers

Branded coLLateraLMake the brand visible by producing and distributing branded destination and corporate marketing collateral

Produce printed marketing collateral Produce and distribute marketing collateral at shows, destination tourism offices and all brand touch points, provincial, national and international

Achieved – printed the following:

10 0000 NC Consumer Guides500 Desk Calendars 20 000 NC Travel Maps5 000 Flower maps5 000 Summer Maps3 000 Top Reasons to visit NC

Produce the following items:

Northern Cape Consumer Travel Guide (10 000)Desk Calendars (500)Northern Cape Travel Map (20 000)Summer Maps (5 000)Summer Booklet (5 000)Easter Booklet (3 000)

Achieved

AchievedAchieved

AchievedNot achievedAchieved

None

NoneNone

NoneOnly 2000 printedNone

Produce corporate marketing collateralProduce Northern Cape and NCTA marketing collateral that is highly visible and identifiable to be used on campaigns throughout province and industry

Achieved – produced the following

NCTA BannersCorporate WearCorporate Gifts

Produce the following:-

Corporate Marketing Material Corporate Wear

AchievedAchieved

NoneNone

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Strategy/ ActionPerformance Indicator

Actual achievement 2014/15

Performance TargetsPlanned Target 15/16

Actual Performance Deviation

E-MARKETING MATERIALSProduce electronic marketing collateral and distribute to identified markets

Achieved – Produced the following:

E-photographic library materialNC Marketing DVDNC Destination Marketing DVD

Produce the following:-

E Photographic library NC Marketing DVDNC Destination Marketing DVD

AchievedAchievedAchieved

NoneNoneNone



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Part B

KEY PERFORMANCE AREA 1

Brand Management and Promotion Aim: To develop and promote a highly sought after Northern Cape Tourism brand

LOCAL BRAND APPLICATION - Apply the brand at key visitor gateways to the province - our improved partnerships and relationships with the tourism industry, on international, national and provincial level, produced an increased awareness of the northern Cape tourism brand. The brand was displayed at the following:

Brand Touch Points

Gateways and Provincial Routes: northern Cape branding and information is displayed at all five provincial routes and information offices. new artwork was developed and replaced outdated material at the five billboards situated at the gateways/entry points to upington. one billboard was erected at tourism House in Kimberley promoting the bloodhound event. branding and information was distributed at eight district and municipal information offices. Additional distribution points were identified on the main routes and arteries leading into and from the northern Cape and included 32 filling stations, padstals and restaurants.

Border Posts and Airports: northern Cape tourism branding and information was displayed and distributed at provincial airports, Cape town, King Chaka, oR tambo international Airports, Vioolsdrift and Sendlingsdrift border posts. Additional branding was placed at Kimberley Airport for the duration of the Hunan week held in September and the KDC event held in october.

Events: brand and information was displayed at 47 provincial events including flagship events, ten national and three international events held within the northern Cape.

BRAND ENDORSEMENT - explore and develop an industry “brand family” of facilities, operators, industry organizations that endorse the brand and use it in conjunction with their own brands.

The correct and continued application of the brand is vital for its positive growth and a strong brand presence within the marketplace. We continuously enhance brand awareness through:

Brand Value Strategy: brand consistency and brand compliance is continuously monitored and encouraged. brand application guidelines are communicated to provincial, national and international stakeholders on a regular basis resulting in an increased use of the brand in marketing collateral and visual applications by our provincial, national and international partners.

Brand Compliance: Continued monitoring of the brand application by all partners to ensure brand compliance. The corporate identity manual was sent to all five district municipalities, seven municipalities, twelve provincial departments and four national departments.

Brand Partnerships: The value of the brand is continuously enhanced through brand association and provincial campaigns such as; I love Northern Cape. The brand was further enhanced through partnership campaigns, interalia: the national Department ofTourism–TourismMonthandtheSho’t Left – Travel is Fun campaign of South African tourism to promote domestic travel within South Africa. further partnerships exist with our marketing partners such as open Africa, lion Roars, tailormade Safaris, boomerang Reisen, orange River Cellars and KDC, bloodhound, Gariep Arts festival, Diamonds and Dorings, Spinning and motoring sports, Green Kalahari Canoe marathon, Amageza Rallye, Richtersveld Wild Run.

BRANDED COLLATERAL - make the brand visible by producing and distributing branded destination and corporate marketing collateral:

Printed Marketing Collateral

20 000 Destination maps, 10 000 Destination Guides, 5 000 Summer maps, 5 000 experience Summer booklets, 3 000 experience easter and Winter booklets, and 500 Desk Calendars were produced.

Corporate Marketing Material

A selection of outdoor and indoor marketing material was produced including: stand graphics for international platforms (Wtm london and Wtm Africa, indaba and namibia), two trigga displays, the outdoor bloodhound billboard on the R360 outside Askham and an attractive selection of corporate wear included 1 500 t-shirts (‘i love nC’ campaign) were produced.

Supplementary unaudited schedules

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E-MARKETING MATERIALS - produce electronic marketing collateral and distribute to identified markets.

E-Marketing Collateral: The e- library currently comprises 3 007 pictures featuring iconic events, leisure attractions and brand pillar visuals. A three minute northern Cape marketing Vignette featured during the fifth annually held Kimberley Diamond Cup. 1 000 updated nC marketing DVD’s were produced.

ACHIEVEMENTS

• brand northern Cape has been transformed into a globally recognized and reputable brand. The repeated and consistent exposure at international, national and provincial events encourages increased brand strength and visibility.

• The northern Cape brand featured in 62 244 articles - a 69% increase on the previous year, the potential reach has increased with 246% with a potential of 193.6 billion readers/viewers exposed to the northern Cape brand at a rand value of R70.6 billion, an increase of 1 665%. (Source: Meltwater and Newsclip Media Monitoring Services and domestic and international and advertising channels and magazine articles)

CHALLENGES

• brand Compliance at regional and local level remain problematic.

• Commitment to service excellence remains a concern ( evident from media and trade feedback)

• budget constraints limit the production of sufficient marketing collateral




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Part B

Key Performance area 2: Domestic Leisure marketingaim: To exceed average national growth levels pertaining to South africans visiting, staying and spending on holiday travel in the northern cape

Strategy/ actionPerformance Indicator

Performance achieved2014/15

Performance TargetsPlanned Target15/16

actual Performance Deviation

DomeSTIc TacTIcaL DeSTInaTIon camPaIGnS

Domestic Season campaigns Achieved – Rolled out one domestic integratedmarketing campaign per season

• Easter• Winter• Spring• Summer

Roll out one domestic integrated marketing campaign per season and special interest campaigns presence across leisure tourism sectors and events

• Easter• Winter• Spring• Summer


NoneNoneNoneNone

Launch cross-Border campaigns

Achieved –Rolled out one cross border integrated marketing campaign:N7 Cape to Namibia

Roll out one cross border integrated marketing campaign

Achieved None

Special Interest and route Promotion

Achieved –Rolled out one special interest marketing campaign: Birding

Roll out one integrated marketing campaign

Achieved None

Brand Pillar campaignsMulti-media campaigns aimed at identified target audiences. (Special focus on Heritage, Culture and Rural tourism)

Achieved - Developed and executed 3 campaigns (Nature, Culture, Adventure)

Develop and launch three campaigns (Extreme Nature, Extreme Culture, Extreme Adventure)

Achieved None

DomeSTIc eXHIBITIonSExhibit at lifestyle and holidays shows in order to profile and promote the destination domestically as a desirable holiday destination to domestic consumers

Promote the destination at domestic consumer fairs

Achieved – Attended 3 exhibitions Distributed 600 brochures per exhibition

Attend three exhibitionsDistribute 600 brochures per Exhibition

Achieved Exceeded -

we have attended four exhibitions Getaway, Beeld, Outdoor JHB and Good Food and Wine Show

Build crm database Achieved –Grew database by 10 % per exhibition

Grow database by 10% per exhibition

Achieved Database grown by 10% per annum

DomeSTIc cHanneL marKeTInGImprove knowledge base of travel trade in SA about Northern Cape and its unique tourism offerings to encourage increased visits booked by them

Achieved – implemented a channel marketing campaign

Develop and roll out a Channel Marketing Campaign

Achieved None

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Strategy/ ActionPerformance Indicator

Performance Achieved2014/15



Trade Relations and Presentation

Develop relationship with key operators and trade through direct sales and presentations to improve knowledge and encourage growth of arrivals to NC

Achieved None

Trade Road Shows Achieved – attended roadshows in major centres

Attend trade roadshows in major centers

Achieved None

Launch local school travel program – exchange across regions to promote travel amongst youth

Achieved – 11 schools in Marchand, Kuruman, Galeshewe, Roodepan, Colville, Port Nolloth, Springbok, Garies, Upington x 3

Target 5 schools and 2 local communities

Achieved None

Trade Newsletter Achieved – Maintained relationships with key operators and trade

Distribute eleven trade newsletters to keep trade informed regarding NC developments

Achieved None

Trade Fam Trips Achieved Schedule and Host two per annum

Achieved None

Trade Database Achieved Maintain database of key trade selling province and track performance

Achieved None

Enter into JMAs Achieved Enter into marketing agreements with targeted trade

Achieved None

TOURISM MONTHPromote brand pride among tourism industry stakeholders (e.g. DEAT, private sector etc.), and the population at large with a specific focus on Tourism Month

Tourism MonthLaunch a tourism month awareness campaign tied to national and provincial Tourism Month activities

Achieved - Developed and rolled out a media activation program for provincial activities

Develop and roll out a media activation program for provincial activities

Achieved None

Launch local school travel program – exchange across regions to promote travel amongst youth

Achieved – targeted 5 schools and 2 local communities

Target five schools and two local communities

Achieved None

DOMESTIC MEDIA & PRMaximize national and provincial media coverage opportunities to position the Northern Cape as a desirable holiday destination and the No1 destination for extreme culture, nature and adventure.

Achieved - Developed and distributed a series of media statements and stories on NC and its tourism products and attractions.

Develop and distribute a series of media statements and stories on NC and its tourism products and attractions.

Achieved None

Media EducationalsDevelop and roll out a media and PR activation program for provincial activities

Achieved - Hosted 6 media educationals

Host three media Educationals Achieved Exceeded - we have hosted four media educationals with 29 media attending

Achieved - Maintained a database of national media houses and publications.

Maintain a database of national media houses and publications

Achieved None

Achieved - maintained a database of national advertising, public relations companies

Maintain a database of national advertising, public relations companies, and freelance journalists

Achieved None



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Part B


Domestic Leisure Marketing Aim: To exceed average national growth levels pertaining to South Africans visiting, staying and spending on a holiday travel in the Northern Cape.

DOMESTIC TACTICAL DESTINATION CAMPAIGNS – Geographical spread, seasonally, length of stay and destination promotion was well addressed and achieved through our tactical campaigns:

Domestic Seasonal Campaigns: to increase market awareness and geographical spread we introduced new campaign platforms, channels and partners in the execution of our seasonal campaigns. notable is the “seasonal booklets” that were developed for the Summer and easter campaigns with detailed information on the five routes, (“must do” activities), tourist attractions along the main arteries and a listing of information points along the n12, n14, n7, n8 and R63. A comprehensive Summer, easter and Winter events diary encouraged regional spread, rural tourism exposure and community beneficiation.

Campaign objectives:• promote the northern Cape as a desirable seasonal destination to domestic and international travelers;• promote conversion by encouraging extended stays and increase spent within the province;• promote brand northern Cape; and• promote rural tourism and regional spread.

The three campaigns featured in print, across all our social media platforms, partner websites and experiencenortherncape.com. resulting in 68 articles with a potential audience reach of 27 million and a rand value of R309 million. (Source: Newsclip and Meltwater Media Monitoring Services and magazine articles)

Easter /Winter Campaigns: The campaign was executed across traditional and social media platforms with a dedicated booklet designed and printed. “experience easter and Winter in the northern Cape” press releases were distributed to provincial and national media and featured in four articles reaching a potential audience reach of 20 million with a media value of R200 million.

Spring/Flower Campaign: The campaign was successfully presented in partnership with West Coast tourism and namakwa District municipality. Highlights included the flower hotline, production of fifty thousand flower maps, daily updates across all social media platforms and partner websites detailing flower hotspots. it was promoted extensively across all our media channels and platforms and resulted in a total of 59 articles, reaching a potential audience of 3,8 million with a media value of R75 million.

Summer Campaign: The annual summer campaign was the most comprehensive campaign undertaken yet. it featured new platforms, channels and partners. in addition to the n12 route, we promoted the five iconic routes and main arteries of the province and a calendar of summer events in an attempt to encourage regional spread, community and rural tourism product promotion, increased spend and length of stay.

An extensive radio campaign including all the provincial radio stations, nfm in Springbok, Radio teemaneng in Kimberley, Radio Riverside in upington, Radio Kaboesna in Calvinia and Kurara fm in Kuruman as media partners featured iconic travel experiences, activities and events within the five regions of the province. experience Summer northern Cape editorial and press releases were further distributed to 38 provincial and national media and resulted in 5 printed articles reaching a potential audience of 3.4 million and a media value of R34 million (Source: Newsclip Media News Monitoring and Sunday Times Travel Weekly).

Launch Cross-Border Campaigns: The Cape to namibia Route is promoted on an ongoing basis and featured in our e-newsletters and the seasonal campaigns, especially the flower and Summer campaigns.

Special Interest and Routes Promotion: All five northern Cape routes were featured extensively in the monthly e-newsletters, in print and across all social media platforms. The routes and their activities were promoted during media and trade familiarization trips. our seasonal campaigns highlighted the hidden gems of each route promoting community and rural tourism products. The routes are managed by open Africa with proven success in creating Smme product development and beneficiation. A provincial route management forum was established and is tasked with creating an enabling environment for route development, encourage participation of local communities and effective public private relationships.

Brand Pillar Campaigns: Through the positive relationships with our target media we achieved a saving of R115 239 on our advertising spent. We have placed a total of eighteen adverts at an investment of R355 345, reaching a potential audience of 2.8 million with a brand value of R13 million.


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DOMESTIC EXHIBITIONS - exhibit at lifestyle and holiday shows in order to profile and promote the destination domestically as a desirable holiday destination to domestic consumers.

Attendance is based on our product offering. our core domestic markets include the well-established mzanzi families, adventure and adrenaline seekers, the young fun seekers and the over 50ties.

Promote the destination at domestic consumer fairs

Exhibitions: We attended four consumer fairs; Getaway and beeld Holiday shows in Johannesburg, the Good food and Wine Show in Cape town (partnership with orange River Wine Cellars), the Gauteng outdoor show (partnership with umkulu Safaris and tours). These platforms afforded the nCtA and its exhibiting partners an opportunity to communicate directly with our domestic market and promote destination awareness to increase visitor arrivals to the northern Cape.

Shopping Centres: We promoted brand northern Cape at three shopping centres in partnership with the Kimberley Diamond Cup organizers. Shopping centres included: Coca Cola Dome (Johannesburg), Canal Walk Shopping Centre (Cape town), and Stoneridge (Johannesburg) and at the Grandwest Casino in Cape town.

CRM Database: 184 new contacts were added to our domestic trade database for targeted updates on new developments and tourism products of the northern Cape.

DOMESTIC CHANNEL MARKETING - The channel marketing strategy encourage top of mind awareness of the domestic travel trade of the northern Cape and its unique tourism offerings.

Trade Relationships and Presentations: in partnership with lion Roars, the destination and its unique product offerings were presented to 221 travel trade, tour operators and corporate companies, in Cape town, Durban and port elizabeth.

Outcomes • Absolute travel created a northern Cape flower itinerary and contracted okiep Country Hotel as accommodation option.• Abang travel and AAA travel and tours are keen to develop and include nC itineraries to sell to their Dutch and european

clients. • nomad Adventure and tours use Hondeklipbay as a stopover en-route to namibia and is considering adding a further night

along the route.• perfect Africa, Springbok Atlas, Thompsons tours and travel and Welcome tours and Safaris have requested further product

presentations by nCtA.• Thompsons tours and travel is looking at increasing their Japanese tour series to namakwa in 2016/17.

Trade Roadshows: We attended the travel people Workshop in Durban. lion Roars attended the port elizabeth and east london Workshops and the tme roadshow held in Johannesburg. We met with 408 industry representatives comprising of conference organizers, travel agents, tour operators and corporate buyers.

Trade Newsletters: nine monthly e-newsletters, one seasonal message and two trade newsletters were sent to national tour operators and travel agents on our database.

Trade Familiarization Trips: The Cape town based wholesaler, Your Africa, was hosted on a three day trip to Kimberley and Carnarvon. The international sales manager of lion Roars was hosted on a four day visit to Kimberley and upington to experience the Kokerboom food and Wine Route.

Trade Database: 629 new contacts were added to our domestic trade database for targeted updates on new developments and tourism products of the northern Cape.

Enter into JMA’s: Three joint marketing agreements were signed with Jacques marais, tailor made Safaris and lion Roars to assist with the promotion of the northern Cape as a desirable tourism destination for South Africans.




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Part B

Provincial Partnerships: provincial and national partnerships are equally important in promoting the destination. We successfully partnered with namakwa, John taolo Gaetsewe, Zf mgcawu and frances baard District municipalities, Sol plaatje local municipality and provincial departments such as Department of economic Development and tourism, Department of Social Development, Department of environment and nature Conservation, Department of public Works and the Department of transport, Safety and liaison. national partnerships include SA Grading Council, South African tourism and the national Department of tourism and South African national parks. SADC partnerships include botswana tourism and namibia tourism.

TOURISM MONTH: launch a tourism month awareness campaign aligned to the national and provincial tourism month activities.

tourism month is an annual celebration held in September and focuses on the importance of tourism for the economy of South Africa. The South African theme for the 2015 tourism month: “A million New Experiences are a Sho’t left Away” actively promoted domestic tourism to:• encourage South Africans to travel;• present travel as a fun activity with a range of aligned benefits; and• encourage the South African trade to recognize the importance of domestic travel and need for affordable travel choices and

products.

in support of the national program, the northern Cape launched a “599 New Experiences a Sho’t Left Away” campaign to promote the northern Cape as the destination for:• iconic cultural and sporting events;• unique and real cultural and heritage experiences, incredible landscapes and adventure experiences for families; and• “must do” travel experience for domestic travelers.

Media and PR: 26 members of national media, print, radio and television attended provincial events held in September resulting in a total of 72 articles, reaching a potential audience of 23 million with a media value of R67 million.

Schools Program: in partnership with frances baard, 27 grade eight and nine learners from four schools were hosted on a day trip to the mokala national park. The learners were all finalists in the frances baards annual schools entrepreneur competition 2014 and included students from Vaalhart High, Xun & Khwe High, Greenpoint High and Diamantveld.

Achievements and Awards

“The Desert Comes Alive” - The 2014 World tourism Day event hosted in the northern Cape in partnership with the national and provincial Departments of tourism, was awarded a Grand prix loerie Award during the 37th Annual loerie Africa and middle east Awards held in Durban in 2015. it was South Africa’s first World tourism Day event to earn a Grand prix Gold loerie.

A further screening of the 37th Grand prix loerie Award at france’s Cannes film festival exposed destination northern Cape to a world audience.

Lilizela Tourism Awards - The third national lilizela tourism Awards was held on the 22 october at the Sandton Convention Centre in Johannesburg where 219 tourism product owners were recognised and rewarded for their contribution to service excellence in tourism and upholding the promise of quality assurance.

northern Cape national Winners were:• 5StarGuesthouseAward–OleanderGuestHouse(Kimberley)• 3StarSelf-CateringAward–KoekaisGuestFarm(Griekwastad/Griquatown)• LodgeEstablishment-FlamingoCasino(Kimberley)won2Awards–ImveloBestWaterManagementProgram&Imvelo

best Waste management program


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DOMESTIC MEDIA & PR: maximise national and provincial media coverage opportunities to position the northern Cape as a desirable holiday destination and the preferred destination for extreme culture, nature and adventure.

Through the positive relationships with mainstream and freelance media we have maximized national and provincial media coverage opportunities and continued to position the northern Cape as a desirable domestic holiday destination. our hosted familiarization trips and joint marketing media agreements indicates good return on our investment. We expanded the positioning of the northern Cape as the premier destination for extreme culture, nature and adventure experiences. The latter was especially evident in reference to extreme sports and included the Kimberley Diamond Cup, The trans Karoo mountain bike Challenge, Richtersveld Wildrun, Amageza biker’s Rallye and the Green Kalahari Canoe marathon.

Develop and Distribute Media Statement/Stories: 42 editorials were distributed to provincial and national media resulting in a total of a total of 23 403 articles featured online, on radio, television and in print, (44.8% increase) reaching a potential audience of 40.6 billion (362%) with a media value of R19.8 billion, (3 011 % increase). (Source: Newsclip Media Monitoring Service and magazines)

The Joint marketing Agreement with the acclaimed journalist, Jacques marais has been very successful. our investment of R 48 000 has resulted in four multi-page magazine articles (22 pages) and facebook updates, reaching 1.7 million potential readers with a value of R7 million.

Media Educationals: We hosted four media educational trips with a total of 29 journalists from print, television, radio and social media in the province. These included the Citizen, flow Communication, Ann7 and Soweto tV, AA traveler, Good morning Africa, SAfm, Radio temeneng, new Age, nC times, noordkaap, northern express and Volksblad.

Maintain a database of national advertising, public relations companies and freelancers: • media Database : 296 new entries have been added (10.4% increase) • Advertising and pR Agencies: 34 entries have been added (26% increase)

ACHIEVEMENTS

• Media Coverage: Through the positive relationships with mainstream and freelance media we have maximized national and provincial media coverage opportunities and continued to position the northern Cape as a desirable domestic holiday destination. 42 editorials were distributed to provincial and national media resulting in a total of 23 403 articles featured online, on radio, television and in print, (44.8% increase) reaching a potential audience of 40.6 billion (362%) with a media value of 19.8 billion (3 011 % increase). (Source: Newsclip Media Monitoring Service and magazines)

• Seasonal Campaigns: The three campaigns, Summer, easter and Spring/flowers resulted in 68 articles, reaching a potential audience of 27 million with a rand value of R309 million thereby successfully increasing destination awareness. (Source: Newsclip and Meltwater Media Monitoring Services and magazine articles)

• Advertising: Through the positive relationships with our target media we achieved a saving of R115 239 on our advertising spent. We have placed a total of eighteen adverts at an investment of R355 345, reaching a potential audience of 2.8 million with a brand value of R13 million.

• Winners: Three national winners in the 2015 national lilizela Awards.

• Awards: ‘The Desert comes alive!’ for World tourism Day 2014 was awarded a Grand prix loerie Award during the 37th Annual loerie Awards held in Durban. it was South Africa’s first World tourism Day event to earn a Grand prix Gold loerie.

CHALLENGES• limited number of accommodation products currently available on online booking platforms.• limited contracted products and properties by the operators selling the northern Cape. • The over pricing of accommodation during peak periods threatens the saleability of the northern Cape and perception of

“value for money” destination.• limited tourism packages and itineraries for family travel and multi generation family travel.




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Part B

Key Performance area 3: International Leisure marketing aim: To optimize international visitor numbers, length of stay and expenditure in the northern cape

Strategy/actionPerformance Indicator

actual achievement2014/15



InTernaTIonaL cHanneL marKeTInGSolicit the support and improved knowledge base of international inbound tour operators and wholesalers

engage in Joint marketing agreements (budget permitting) Identify and enter into joint marketing agreements with identified operators and or wholesalers to sell Northern Cape as a desirable destination within Southern Africa and to increase the effectiveness of trade marketing activities and international marketing opportunities

Achieved - Concluded 13 JMA’s with international tour operators

Conclude three JMAs with international operators

Achieved

None

Maintain database of top sellers, wholesale and operators in each core market to SA and their ground handles in South Africa

Achieved – Increased database by 10% Increase current database by 10%

Achieved None

Develop and improve knowledge and awareness of NC and its tourism offerings through e courses and apps

Achieved - Completed one e-training and one application

Complete one e-training course and one application

Achieved None

Identify and obtain membership to relevant international travel and tourism bodies

Achieved - Attained memberships with two organisations

Attain memberships with two organisations

Achieved None

InTernaTIonaL meDIa anD PrMaximize international media coverage opportunities for the Northern Cape

Achieved – developed and distributed a series of media statements and stories on NC and its tourism products and attractions

Develop and distribute a series of media statements and stories on NC and its tourism products and attractions

Achieved None

InTernaTIonaL meDIa anD PrMaximize international media coverage opportunities to position the Northern Cape as a desirable holiday destination

Achieved- 19 889 articles, 9.6 billion viewership and value R1.8 billion

Develop and distribute a series of media statements and stories on NC and its tourism products and attractions

Achieved

None

arrange International media educationalsWork with SAT International offices to identify and target and host suitable media for media educationals to the province. Key markets: USA, UK, Far East, Australia

Achieved- Hosted 8 international media trips

Arrange two Fam Trips Achieved Exceeded - we have hosted four media educationals from Germany, Italy, Uk and France

Host VIP’s Achieved – Hosted and attended VIP foreign dignitaries and invitations

Host and attend VIP foreign dignitaries and invitations

Achieved None

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Strategy/ActionPerformance Indicator

Actual Achievement2014/15



NTERNATIONAL EXHIBITIONS – TRADE AND CONSUMERPromote the destination at key international consumer and trade fairs

Distribute 500 Brochures, and make contact with possible partners

Exhibit overseas at:

Indaba Achieved – distributed 600 brochures Distribute 500 brochures per show, made contacts with possible partners

Achieved None

WTM Achieved – distributed 600 brochures Distribute 500 brochures per show made contacts with possible partners

Achieved None

ITB Achieved – distributed 600 brochures Distribute 500 brochures per show made contacts with possible partners

Achieved None

Exhibit regionally at:

Namibia Achieved - Distributed 500 brochures (collateral), Collected 50 new CRM contact

Distribute 500 brochures per show made contacts with possible partners

Achieved None

Trade Roadshows

UK Trade road show was cancelled Distribute 100 brochures per show made contacts with possible partners

Achieved None

Italy Achieved - Distributed 100 brochures per trade engagement


Achieved None

Dutch Achieved - Distributed 100 brochures per trade engagement


Achieved None

TRADE MISSIONSLeverage of Government missions when invited

Achieved - Prepared material for outbound mission

Prepare material for outbound mission

Achieved None

Achieved - Added to database upon attendees return (share contacts)

Add to database upon attendees return (share contacts)

Achieved None



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Part B


International Leisure MarketingAim: To optimize international visitor numbers, length of stay and expenditure in the Northern Cape

INTERNATIONAL CHANNEL MARKETING - Solicit the support and improved knowledge base of international inbound tour operators and wholesalers. Our campaign of ongoing email / telephonic communiques and face to face meetings with trade partners, international SAT offices and embassies keep the Northern Cape destination top of mind in our core markets is certainly showing results.

Engage in Joint Marketing Agreements: We have concluded four international and eight national joint marketing agreements with wholesalers and media to strengthen our footprint in our core and watch target markets in Europe, Asia and USA and our core African market, Namibia. A total of 3511 rooms nights resulted from the partnerships with an estimated rand value of R5.8 million vs the 1 961 bed nights booked with an estimated rand value of R 5.3 million of the previous financial year.

Joint Marketing Agreements – Domestic and International 2015/2016

JMA’s Secured Brief Description NCTA’s Contribution

AAA Tours and Travel Our agreement activity is to promote the NC as affordable and key focus is to increase arrivals from Dutch speaking markets, They are the ground handler for the following Dutch tour operators currently interested in the NC: TUI, Rondreis op Maat, Mooi Vakanties, Rooikat Reizen, Van Verre Reisen, Diaz travel and Your Africa

An African Anthology/Experiences

Our agreement is focused on the marketing and selling of Namakwa flower camps to domestic and international tour operators and FIT visitors

R 15 000

Boomerang Reisen Agreement includes a Northern Cape 10 day self-drive itinerary for FIT and group travel to German speaking markets and their trade partners.

R 40 000

Jacques Marais Promoting the Northern Cape as a desirable holiday destination to the South African travelling public in print and online.

R 40 000

Akilanga Promote the Northern Cape to European markets especially French and German markets

R 10 000

Lion Roars JMA agreement with Lion Roars marketing to market and sell the Northern Cape as a desirable destination to domestic and international wholesalers and operators.

R 80 000

National Geographic Traveller Selling Northern Cape as a desirable destination to English speaking travellers worldwide resulted in a double page spread valued.

R 35 000

APL Media – UK and USA trade catalogues

Selling Northern Cape as a desirable destination to ABTA and BAPTA R 63 000

Thompsons Agreement with Planet tours selling the Namakwa flower experience to Asian markets especially Japanese market

-

Transfrontier Parks Destination Selling the Northern Cape in association with Xaus lodge to the European markets especially

-

SAT Italy :Italy / Ill Diamante/ Sirocco tours

Joint Marketing campaign with SAT Italy and Il Diamante and Sirooco Tours, two of the top outbound selling operators selling South African as an affordable destination. Two operators added specific Northern Cape add on itineraries. Campaign included a trade mailer and facebook and media campaign.

R 25 000

Tailor Made Safaris: Netherlands and Belgium

Our agreement includes a specially developed story book around the Northern Cape Experience for prospective clients to the destination and a dedicated webpage for the Northern Cape and dedicated material on the Northern Cape at the travel shows in Utrecht and Maasricht.

R 50 000

R438 000


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Actual Room Nights Sold by Trade Partners

Partner Average Room Rate

Room nights available

Room nights sold Income

Skilpad flower camp R1100 1200 1140 R1,254 000

Beach Flower Camp R2050 840 781 R 1,601 050

Xaus–Akilanga/BoomerangReisen.TailorMadeSafaris/IlDiamante/ Sirocco tours

R1754 1 962 R 3 441 348

boomerang Reisen 225 R 394 650

Thompsons 440 R 462 000

total 4 548 R 7 153 048

our media partnership with Apl media successfully exposed the destination to the british trade through the AbtA Country by Country magazine. This is the official magazine of the Association of british travel Agents and is distributed to 55 000 industry personnel. it has a membership of 1 500 companies with 6 000 offices accounting for 90% of sales of package holidays in the uK

TheSecondAPL industryguide–ASTA World Wide Destination Guide is the official annual publication or the American Society of travel Agents and reaches 22 00 of the most influential members of the uSA travel industry. The publication has a potential readership of 50 000.

Host Trade Fam Trips: We hosted two northern Cape familiarization trade visits in collaboration with South African tourism international offices:

in partnership with the uK office we hosted four tour operators on a seven day visit to Kalahari Red Dune Route, Quiver tree food and Wine Route and the namakwa flowers. The trade hosted were from the following travel houses, Africa travel, African pride, odyssey World and Selling Africa.

in collaboration with SAt italy we hosted one trade member from the motorbike tour operator, motorissimo in the Diamond fields and Kalahari regions on a five day visit. They were all impressed with the experience and expressed a willingness to include a northern Cape tour itinerary in their company catalogues for 2016/17.

E- Training: The new e-learning course has been uploaded to South African tourism’s e-learning modules for use by international and national trade partners.

Industry Membership: The nCtA has two membership agreements with leading international associations based in the uK and uSA. SATOA, (Southern African travel Association) provides the nCtA with a credible platform to promote the unique tourism products of the province, to network with tour operators, travel agents and create new business opportunities within the uK. ATTA (Adventure travel trade Association) allows the nCtA to link with a global adventure travel community to tap into industry knowledge research and webinars on new trends in the adventure travel market.

Trade Newsletters/ Viral Campaigns: nine monthly e-newsletters and one seasonal message were distributed to international, SADC tour operators and travel agents on our database. A trade specific e-newsletter, Top reasons to visit the Northern Cape, was sent to trade attending indaba, namibia, itb and Wtm trade shows.

INTERNATIONAL MEDIA AND PR - Maximize international media coverage opportunities for the Northern Cape

The presence of the northern Cape in editorials, print and electronic media has proven enormously successful not only in terms of growing brand and destination awareness but in growing visitor numbers and revenue. The persuasive editorial content successfully presents a personal recommendation that speaks to the desirability of the destination and call to readers and viewers to experience the northern Cape personally.

Develop and Distribute Media Stories/Statements: 42 editorials were developed and distributed to media partners internationally which resulted in a total of 38 841 articles, (87.7% increase) featured online, on radio, television and in print, reaching a potential global audience of 153 billion, (224.7% increase) generating a media value of R50.7 billion, 1 487% increase). (Source: Meltwater Media Monitoring Service and Magazine articles).




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Arrange Fam Trips: in partnership with SA tourism and international partners we hosted three international media educational trips with a total of eleven journalists from our core markets which resulted in 57 articles with a reach of a potential audience of 17 million with a media value of R169 million. The hosted media included:• Germany: Andrea Christina Diener - frankfurter Allgemeine Zeitung, Rasso Dietmar Knoller- Die Reisejournalisten, Dr.

BerndKregel–Freelance,JuliaRuhnau–dpa,NorbertSiegfriedEisele-Hein–Freelance,MargotZeslawski–FOCUS;• France: pierre Hausherr and Jeanne mear from the high end luxury travel magazine french Voyage de lux;• Italy: marco Ghezzi from italian mototurismo; and• United Kingdom: Julie bain - Selling travel and Simon parker from the bbC.

Bloodhound PR Company, Mettle PR –WemetwithBloodhound’sPRandCommunicationsfirm,MettlePRwhilstattendingWtm london and discussed possible partnerships and pR activities between nCtA and the pR firm. The unveiling of the bloodhound SSC at Canary Wharf, london, generated huge public and media interest with more than 20 000 people attending the three day event. media awareness by mettle pR resulted in 5 413 articles published with a media value a R37 billion with a potential audience of 2 billion.

Host VIPs: The following delegations were hosted:• A delegation from the Hunan province in China attending the Hunan week held in Kimberley; and• ten newly appointed heads of missions to europe and Africa were hosted during their visit to the northern Cape. The nCtA

hosted them at iconic tourism experiences within the Kimberley and immediate environs.

INTERNATIONAL EXHIBITIONS – TRADE AND CONSUMER promote the destination at key international consumer and trade fairs:

WTM Africa, Cape Town: The second World travel market (Wtm) Africa scheduled from 15 to 17 April 2015 at the Cape town international Convention Centre (CtiCC) showcased more than 570 exhibitors, with 82% new buyers from over 45 different countries. The northern Cape representatives and our on stand partners presented the northern Cape and its unique set of tour offerings to 173 operators.

Indaba 2015, Durban: indaba 2015 offered a strategic platform to sell the northern Cape and its selection of unique tourism experiences and it further served as an useful barometer for the nCtA to gauge the attending trade’s understanding and knowledge of the northern Cape offering. Seventeen partners joined the nCtA on the northern Cape pavilion and conducted 662 meetings which resulted in 29 positive leads, eleven deals and ten signed partnerships. As per tradition the Diamond Give-away and function remained a popular highlight on the indaba event’s calendar and 275 trade and media representatives attended the event.

World Travel Market, London: The uK remains one of the most important core markets for the province. The Wtm platform presented an opportunity to showcase and communicate to targeted attendees and trade partners the iconic experiences of the destination, interalia: adventure, culture, nature and the unique activities available across the five regions and routes. it presented an opportunity to engage the SA tourism uK team to ensure that the northern Cape forms part of their trade and media engagements to South Africa and to assist with promoting the bloodhound event. The nCtA delegation met with 36 tour operators, travel agents and eleven media. We further attended industry lectures and presentations on new travel trends in e-marketing and market access.

VakantieBeurs and Vakantiesalon Consumer Exhibitions: our trade partner, private Safaris, attended Vakantiebeurs in utrecht, netherlands and lion Roars attend Vakantiesalon in Antwerp, belgium and met with 76 trade. These two exhibitions created important platforms to connect with the Dutch and belgium travelling publics.

ITB, Berlin: Germany remains one of the most important core markets for the province. itb creates a high profile marketing platform for the province to showcase our unique offerings under the extreme brand pillars of extreme nature, extreme adventure and extreme culture. total number of visitors from this market remains on our top ten lists of countries visiting the destination. it is evident from the number of visits to our website generated from German search engines, unique visits from German based service providers, the length of visit that this market is interested and planning to visit the northern Cape. We had 37 meetings. trade were especially interested in the Cape namibia Route, Augrabies national park, Desert Safari`s, Khomani San bushman experience and soft family adventure experiences.


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Exhibit Regionally in SADC, Namibia: The namibia expo offered a valuable platform to reconnect and foster new relationships with namibian partners, trade, media and travelers. The e-mailer campaign sent out to 87 namibian trade, travel agents and media prior to the show resulted in 37 on stand meetings. We met with a further 107 visitors requesting information on bloodhound and the destination resulting in five confirmed bookings and seventeen strong leads for future bookings.

With our partners namibia tourism and Wesgro, the Cape namibia Route was re-launched featuring three storytellers depicting the uniqueness of each sector of the route and a further 39 trade, media and partners attended the event. The stories from Kamiesberg and namakwa by northern Cape story teller, Jessie Strauss and his demonstration of the unique “namastap” was well received.

namibia remains an important African source market for the northern Cape with arrivals during April, may, August and December addressing seasonality and regional spread (Source: South African Tourism Strategic Research Unit: 2013 Annual Tourism Report – 2014).

Trade Road Shows Atta Roar Trade Workshop: The nCtA attended the first ever AttA Roar one day trade workshop and met with 25 tour operators and travel buyers from the uK and france selling Southern Africa.SA Tourism UK Roadshow: NCTAattendedtheThreeCityRoadshowfrom1–4March.Weengagedwith125tradeinGlasgow,manchester and london. SA Dutch Road Show: The international sales representative of lion Roars attended the four City SAt roadshow end october and met with 241 travel trade in Amsterdam, breda, Arnheim and utrecht.Italian Trade Road Show: lion Roars attended the italian Road show and met with the top 23 tour operators selling Southern Africa in milan and Rome.2016 European Sales Trips, Germany, Switzerland, Belgium, Austria, Australia and Netherland: lion Roars presentation to 310 tour operators.

TRADE MISSIONS: northern Cape marketing material was included in the information packs distributed at provincial outward bound trade missions to philippines and China.

International Database: 1797 international contacts were added to the database and include top buyers, ground handlers and potential partners.

ACHIEVEMENTS• A total of 38 841 articles featured online, on radio, television and in print, (87.7% growth) reaching a potential global audience

of 153 billion, (224.7% growth) generating a media value of R50.7 billion, (1 487% growth). (Source: Meltwater Media Monitoring Service)

• media educationals in partnership with SAt resulted in 57 articles with a reach of a potential audience of 17 million with a media value of R169 million.

• our joint marketing trade partnerships delivered a good return on our investment resulting in a total of 4548 rooms nights sold with a rand value of R7.1 million vs the 1 961 bed nights sold with a rand value of R 5.3 million in the previous financial year.

CHALLENGES• limited number of accommodation products currently available on online booking platforms. • limited contracted products and properties by the international operators selling the northern Cape. • limited tourism packages and itineraries available for multi generation family travel.• limited investment in new product development (experiences and activities).• budgetary constraints limits investment in JmA partnerships.




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Part B

Key Performance area 4: Information management and Destination Performanceaim: To enhance ncTa marketing strategies through information management and valid and reliable market research





e-BUSIneSS PLaTformS

Website managementEnhance the web platform to manage information and promote tourism

Achieved - maintained, upgraded and improved Northern Cape e-business system ad website and measure performance

Maintain, upgrade and improve Northern Cape e-business system ad website and measure performance

Achieved None

Social media platforms Achieved - Grew social following by more than 15%

Grow performance by 15% Achieved None

Create, maintain improve Northern Cape e-marketing tools

Achieved - Mobile Guide to the Northern Cape, Online interactive guide to NC and E- Learning Modules

Appls/Digiguide/Etraining Achieved None

Travel Information PlatformsSuch as Trip advisor, expedia, lonely planet, national geographic, wayne.com

Achieved - Grew presence and content by more than 10%

Increase content by 10% Achieved None

e-newsletterProduce and distribute monthly newsletters

Achieved - 11 E-newsletter distributed.

Eleven monthly e-newsletters to database

Achieved None

ProVIncIaL Performance

Destination Performance Achieved - Collected and analysis statistics from NC National Parks and Airlines

Collect and analysis statistics from NC National Parks and Airlines

Achieved None

Brand Performance Achieved – produced four reports on brand performance

Produce four reports on brand performance

Achieved None

Industry feedback Achieved - provided info and feedback regarding developments and experiences

Provide info and feedback regarding developments and experiences

Achieved None

InDUSTry DaTaBaSeEstablish an inventory for regular communication and liaison with stakeholders and clients

Achieved - Increased database by more than 10 %

Increase database by 10 % Achieved None

Database/cr managementDevelop a CRM strategy Achieved - Grew Customer

Retention and tracking of trade and consumers – resulted in an informed sales force on NC behalf especially in key markets

Grow Customer Retention and tracking of trade and consumers – result in an informed sales force on NC behalf especially in key markets

Achieved

None

Achieved - Monthly quality check on entries to ensure efficient and targeted information dissemination

Monthly quality check on entries to ensure efficient and targeted information dissemination

Achieved None

InformaTIon DISTrIBUTIonEnsure the distribution of Northern Cape Tourism information at key distribution points

Send marketing collateral for distribution at own office, airports in province, publicity associations offices within and outside of the NC, SA Tourism Offices and Embassies, etc

Achieved - Increased distribution of marketing collateral by more than 10%

Increase distribution of marketing collateral by 10%

Not achieved Period under review indicates a 2% on previous year

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information Management and Destination PerformanceAim: To enhance NCTA marketing strategies through information management and valid and reliable performance research

E-BUSINESS PLATFORMS: (Digital Marketing) A fast growing world-wide trend sees consumers making optimal use of technology to plan and manage their lifestyle and travel behavior. Tourists are increasingly consuming travel and tourism products directly via their mobile devices through social media platforms. We are aggressively researching these platforms.

Website Management: The website is now fully, mobile and tablet compatible and through our responsive design, continued updates and enhanced search engine optimization (SEO) capabilities have maintained our top ranking on the global search engines such as Google. To date we had 140 502 visits to the website, a total of 97 124 unique users, accessing an average of 4.38 page per visit and remaining on site an average of 2.39 minutes. Most international visitors are from our core markets such as UK, Netherlands, Germany, Namibia and Kenya. (Source: google analytics)

Social Media Platforms: Taking our limited resources into consideration we have identified and included the following four top performing social media platforms in our digital marketing strategy:

Facebook: Started in 2004, it is currently the largest and most important of all social media platforms with more than 1 billion posts per day. Since inception in 2012 to date we have seen the Northern Cape Tourism Facebook platform grows to its current reach of 2 million, (a growth of 69%). The Northern Cape events Facebook page has a reach of 4.2 million. (Source: Facebook)

Twitter: The platform is mostly used by the under 35’s and the NCTA has used it effectively to promote events and festivals within the destination to this target market. We have created 2 647 tweets and retweets and conversations with this market which is a growth of 16%. (Source: Twitter)

Youtube: Launched in 2005 this platform has proven successful in inspiring and engaging audiences. The NC Youtube page allows the Northern Cape to interact, engage and inspire our target audience through visually attractive original and shared visual video content. In the year under review the Northern Cape content had 6 798 views (a 92% growth). (Source: YouTube)

Instagram: Launched in August 2010 this is one of the fastest growing social media platforms allowing users to connect and share experiences visually. We have included Instagram in our social media platform strategy as it offers a perfect vehicle to showcase the destination visually through our compelling pictography. Since inception in the third quarter we have shared 74 pictures and have 234 followers to date. During the next financial year we will partner and host leading photographers in the destination to grow this platform more effectively. (Source: Instagram)

Create, maintain and improve Northern Cape Digital Marketing tools: With the continued changes in consumer behavior coupled with technological advances it is no longer enough to only have a website. Taking our limited resources into consideration we have identified and included the following digital marketing tools into consideration:

Mobi Guide Application: The guide has been discontinued due to new trends and consumer behavior.

Northern Cape Applications: The MICE application was completed and is available from the I- store.

Northern Cape Trade E-learning Modules: The e-learning course was developed and incorporated into the South African Tourism’s e-learning module available on www.southafrica.net. Upon completion of the integrated Northern Cape website, an e-learning section will be incorporated in our trade segment to encourage online trade training and familiarization with the destination.

Travel Information Platforms: The aim of our campaign during the year under review was to re-engage with already connected WAYNE users, create new connections amongst members, increase our brand and destination awareness and drive business to our website. Our campaign to date resulted in 22 491 impressions and 17 959 new friend requests (Source: Campaign Report Wayne.com)

E-Newsletter: nine e-newsletters, three trade e-mailers, and a seasonal e-mailer have been produced and distributed eliciting positive responses from the marketplace. The e-mailers’ increased and consistent distribution contributed positively to the growth of the province as a desirable destination.




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PROVINCIAL PERFORMANCE: The investment in our marketing campaigns, advertising, joint marketing agreements and media showed a good return on the investment made and contributed positively to the awareness creation, increased tourism arrivals and increased length of stay.

Destination Performance

2015 was not a good year for tourism in South Africa. Global and local economic pressures took their toll and negative perceptions of health risks discouraged travel to Africa. Visa and other travel regulations also had a negative impact on arrivals. This resulted in a 6.8 % decline in international arrivals compared to the previous year.

The northern Cape tourism sector similarly was affected and we showed a decline in tourism arrivals to the province. However we did see an increase in arrivals to the northern Cape as reported by the Visitor Centers, South African parks and ACSA.

Visitor Centres - 80 601 visitors were recorded at the five visitor centres across the province during April 2015 - march 2016 versus the 20 493 of April 2014 - march 2015. The core european markets of netherlands, Spain, Germany, italy and uK are predominant followed by Sweden and Switzerland. Domestic markets see Gauteng and Western Cape still dominating and SADC namibia as core market followed by botswana. The international visitors showed a positive growth of 456.6%, domestic visitors increased with 368.7%. SADC visitors showed an increase of 147.8% for the year under review.

National Parks - 165 320 visitors were recorded at the five national parks within the province for the month under review (April 2015 - march 2016 versus the 147 748 reported in the previous financial year). international visitors showed a growth of 1.2%, SADC visitors increased with 21.% and domestic visitors showed a growth of 13.4%. The parks reported an income of R78.6 million.

ACSA - 166 960 passengers traveled to and from Kimberley Airport on both scheduled and chartered flights, a 4.1% increase on the 160 442 of the previous year. upington showed a decrease of 7.1% with 69 006 passengers arriving and departing vs the 74 297 passengers of the previous year. (Source: ACSA)

Provincial Performance

official figures from SAt showed an increase in domestic bed nights, but a decline in trips undertaken to the province and tourism spent. Similarly international arrivals to the northern Cape showed a decline.

The challenges we experienced in South Africa last year resulting in dwindling tourism numbers is now behind us, and we are experiencing spectacular growth in our tourist arrivals. Grant Thornton reported an increase of 16% in tourism arrivals in January 2016 vs January 2015. These include arrivals from our core markets: Germany improved by 22%, uK by 16% and uSA by 11%. our other core markets, the netherlands, italy, france and belgium equally show an increase in arrivals to South Africa. All indications are that 2016 will be a bumper year for tourism in South Africa

Domestic Destination Performance

2012 2013 2014 2015

Bednights 1 663 000 2 552 000 2 058 000 3 361 000

Trips 368 000 480 000 557 000 275 000

Total Spent 298 760 000 572 396 000 476 514 000 331 028 811

Source: South African Tourism Research Unit

International Destination Performance

2012 2013 2014 2015

Bednights 482 918 872 630 885 427 866 208

Trips 125 456 151 223 160 463 105 045

Total Spent 547 000 000 654 314 716 681 168 428 594 119 595

Source: South African Tourism Research Unit


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Brand Performance

brand northern Cape has been transformed into a globally recognized brand and offered top of mind visibility to the trade and travelling public. The brand performance continued its growth pattern and featured in 62 244 articles - a 69% increase on the previous year, the potential reach has increased with 246% with a potential of 193.6 billion readers/viewers exposed to the northern Cape brand with a rand value of R70.6 billion, an increase of 1 665%. (Source: Meltwater and Newsclip Media Monitoring Services and domestic and international and advertising channels and magazine articles)

Advertising Campaigns: We have placed a total of eighteen adverts at an investment of R325 627 reaching a potential audience of 2.8 million with a brand value of R13 million. (Source: ABC ratings)

Seasonal Campaigns: our investment in the seasonal campaigns generated a positive return on the investment made resulting in 68 articles, reaching 27 million potential readers with a rand value of R309 million. (Source: Newsclip Media Monitoring Service)

Domestic Media: A total of 23 310 articles featured online, on radio, television and in print, (44% increase) reaching a potential audience of 41 billion (362%) with a media value of R21 billion, (3291% increase). (Source: Newsclip Media Monitoring Service and magazines)

International Media: A total of 33 437 articles featured online, on radio, television and in print, an increase of 62%, reaching a global audience of 151 billion readers/viewers, an increase of 221% at a value of R 16 billion, an increase 415%. (Source: Meltwater news monitoring and international magazines)

Industry Feedback

our direct engagement with the travel trade, media and the industry enables the nCtA to provide valuable feedback on international trends and demands to product owners and DeDat. trade and consumers expressed the following:• A more varied and affordable product offering for the over 50ties, families and the young and upcoming markets; • The quality of our camping and caravanning sites is an area of concern; and• Appropriate product to fulfil the new domestic and international trend of “Glamping”.

northern Cape experiences, products; accommodation and activities urgently need to be contracted into the tour plans of local wholesalers and online booking engines to support the increased demand for northern Cape products by international tour operators and wholesalers.

INDUSTRY DATABASE: establish an inventory for regular communication and liaison with stakeholders and clients.

Database/CR Management: our CRm system store our client details for effective targeted marketing communication with our audiences, both leisure and trade. our continued communication with our target markets allows for successful customer retention and top of mind destination awareness which encourages an increase in tourism arrivals and increased length of stay.

our data base has currently 31 011 entries recorded in the previous year. in line with international and national legalities, our database only includes authorized entries and it is continually reviewed.

INFORMATION DISTRIBUTION - A total of 54 659 have been distributed to provincial information offices, government departments, international offices, shows and event platforms. This is a growth of 2.2% on the previous financial year.

ACHIEVEMENTS

• brand northern Cape has been transformed into a globally recognized brand and offered top of mind visibility to the trade and travelling public. The brand performance continued its growth pattern and featured in 62 244 articles - a 69% increase on the previous year, the potential reach has increased with 246% with a potential of 193.6 billion readers/viewers exposed to the northern Cape brand with a rand value of R70.6 billion, an increase of 1 665%. (Source: Meltwater and Newsclip Media Monitoring Services and domestic and international and advertising channels and magazine articles)




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• our website has been upgraded and is now fully, mobile and tablet compatible and responsive and maintained our top ranking on the global search engines such as Google. our website continued to show good results with 140 502 recorded visits to the website, a total of 97 124 unique users visiting an average of 4.38 page per visit and remaining on site an average of 2.39 minutes.

• northern Cape social media interactions continue to grow. northern Cape tourism facebook increased with 69% reaching 2 million, the twitter tweets increased to 2 647, a 16% growth and Youtube views increased with 92%, now at a total of 6 798 views, the newly created instagram page for the northern Cape tourism has 234 followers to date. The northern Cape events facebook platform has now a total reach of 4.2 million. (Source: Social media performance statistics, facebook, twitter, youtube)

• our engagement with Wayn.com, successfully grew international awareness of the destination and our campaign to date resulted in 22 491 impressions and 17 959 new friend requests.

CHALLENGES

• measuring performance remains a challenge. The conducting of visitor surveys, performance research and establishing a tourism barometer reside outside the nCtA’s mandate. our only credible source of statistical information is obtained from SA tourism’s research unit which does not accurately reflect our provincial performance.


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Key Performance area 5: mIce and events Development aim: To attract and stage high-revenue conferences, meetings, Incentives, exhibitions and events





conference anD BIDDInG SUPPorTProvide support to identified associations and sport bodies to secure meetings and conferences

Achieved - Identified and completed at least 5 bids for international and national conferences and meetings:

Achieved - 1 International conference/meeting (min 500 pax)

Identify and complete at least five bids for international and national conferences & meetings:

One international conferences or meeting (min 500 pax)

Achieved

NCTA does not complete bids but provides bidding support Continuous support towards FISE and Beach Soccer.

Not achieved - 3 National conference/meetings (min 100 pax)

Four national conferences/meetings (min 100 pax)

Achieved NCTA does not complete bids, but provides bidding support. PSTF, Amagaza Rallye, SAMWA, Merc Truck Expo

Exceeded - secured 3 new events

Secure at least two new events per year

Achieved NCTA does not complete bids but provides bidding support12 New provincial events supported

meeTInGS Achieved - Encouraged industry sector to invite international sectors to come to NC for international meetings

Encourage industry sector to invite international sectors to come to NC for international meetings

Achieved None

ProVIncIaL conVenTIon BUreaUEstablish and implement Provincial Convention Bureau in conjunction with SAT National Convention Bureau

Achieved - Bid support to related industry to secure at least 2 meetings within province

Bid support to related industry to secure at least two meetings within province:

Achieved None

Achieved - Attended SANCB Council Meetings

Attend SANCB meetings Achieved None

Achieved – Attended quarterly meetings with MSCC

Attend quarterly meetings with MSCC

Not achieved Only one meeting held. Monthly attendance reports received from MSCC

Not achieved - Set up Provincial Council made up of Public/Private members to serve on PCB

Set up Provincial Council made up of Public/Private members to serve on PCB

Not achieved

Budgetary constraints

TraDe reLaTIonS anD eXHIBITIonSCreate awareness in meetings sector especially NC related industry

Not achieved – established contact with 5 NC related industries and government departments within province and nationally

Establish contact with at least six NC related industries and government departments provincially and nationally

Achieved

None

Achieved - Established and maintain/developed relationships with at least 10 business trade nationally and 5 internationally

Establish and maintain/develop relationships with at least ten business trade nationally and five internationally

Achieved None



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ExhibitionsAttend MICE platforms internationally as part of awareness creation and promotion of NC as a MICE destination

Not achieved - participate at MICE exhibitions and distribute at least 300 brochures at each event

Not achieved - IMEX Frankfurt

Not achieved - SETE Durban

Achieved - Meetings Africa

Achieved - Grew trade database by 10% per annum

Not achieved - Establish and implemented a Northern Cape product workshop

Participate at MICE exhibitions and distribute at least 300 information packs at each event:

IMEX Frankfurt/EIBTM Barcelona

SETE Durban

Meetings Africa

Grow trade database by 10% per annum

Establish and implement a Northern Cape product workshop

Achieved

Achieved - Attended IBTM World

Achieved - Attended IBTM Africa

Achieved

Not achieved

Achieved

None

None

None

None

MICE venues and Trade grew by more than 10% but overall database by only 4%

Arranged and successfully hosted two Business Events workshops

TRADE AWARENESSEstablish and maintain close working relationship with key MICE trade to encourage their booking of NC for MICE business both national and international.

Create awareness within MICE sectors regarding NC offerings

Achieved - Produced and distributed collateral to profile NC as MICE destination nationally and internationally

Achieved - Produced a NC events calendar - included in printed leisure and business collateral. Included monthly calendar in e-newsletter

Achieved - Secured at least 3 features (I national, 2 international) in mice publications

Achieved - Advertised in at least 1 appropriate MICE publication

Achieved - Hosted MICE fam trip in NC to provide first-hand experience of the product and destination as well as service standards

Achieved - Newsletter: accurate and timeous information included in bi-annual MICE newsletter

Achieved - Website: accurate and updated event dates and details for website and e-platforms

Distribute collateral to profile NC as MICE destination nationally and internationally

Update the Northern Cape Events Calendar

Secure at least three features (one national, two international,) in SA Tourism publications

Advertised in at least one appropriate MICE publication

Host MICE fam trip in NC

Newsletter: Accurate and timeous information to be included in bi-annual newsletter

Website: Accurate and updated events dates and details for website and e-platforms

Achieved

Achieved

Achieved

Not achieved

Achieved – hosted two fam trips

Achieved

Achieved

None

None

None

No advertising but 5 features and/or write-ups in numerous publications and online media

None

None

None

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Achieved - Website: accurate and updated event dates and details for website and e-platforms

Website: Accurate and updated events dates and details for website and e-platforms

Achieved None

MEMBERSHIPSIdentify and obtain membership to relevant international MICE travel and trade bodies

Not achieved - Attained membership with at least 2 organizations

Attain membership with at least two organizations

Achieved Existing membership renewed

Joint Marketing AgreementsIdentify and enter into Joint Marketing Agreements with identified PCO’s and DMC’s

Not achieved - Sign at least 2 JMA’s with DMC’s and PCO’s

Sign at least two JMA’s with DMC’s and PCO’s

Not achieved JMAs signed with event organisers

MICE Database Achieved - Developed database of top sellers and wholesale operators in each core market to SA and their ground handlers in SA

Maintain database of top sellers and wholesale operators in each core market to SA and their ground handlers in SA

Achieved None

Achieved - Conducted Service Excellence check on all meeting and conference venues as per database

Conduct Service Excellence check on all meeting and conference venues as per database

Not achieved Due to budget constraints excellence checks were conducted in the previous financial year

Achieved - Audit of business events taking place in the Northern Cape

Audit of business events taking place in the Northern Cape

Achieved Analysis of Mittah Sepererpere Convention Centre attendance

Achieved Listed available meeting and conference venues within province

List available meeting and conference venues within province

Achieved None

EVENTS SUPPORTSupport the development and expansion of annual events including:

Achieved - Grew visitor attendance by 10%

Grow visitor attendance by 15% Achieved None

Flagship Events

Successful hosting of Kimberley Diamond Cup through the provision of marketing support and activations

Achieved Increased awareness of NC as a skateboarding destination increased participation and visitor numbers to the region

Increased awareness of NC as a skateboarding destination increasing visitor numbers to the region

Achieved None

Support towards the successful hosting of Bloodhound Land speed record attempt through the provision of marketing support and activations

Achieved - Increased awareness of NC as a destination of choice for motorsport increasing participation and visitor numbers to the region

Increased awareness of NC as a destination of choice for motorsport increasing visitor numbers to the region

Achieved None

Support towards the successful hosting of the Aspen Trans Karoo Mountain Bike Challenge in Sutherland

Not achieved - Increase awareness of NC as a cycling destination increasing participation and visitor numbers to the region

Increased awareness of NC as a cycling destination increasing visitor numbers to the region

Achieved None

Local Events Achieved - Increased awareness of events by 10% and distribute at least 200 information leaflets

Increase participation of events by 10% and distribute at least 200 information leaflets per event

Achieved None

Achieved - Developed and initiated events specific research to determine objectives achieved and ROl achieved.

Develop and initiate events specific research to determine objectives achieved and ROl achieved.

Achieved None



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Achieved – Increased awareness of destination as cultural, adventure and nature destination

Increase awareness of destination as cultural, adventure and nature destination

Achieved None

Secure at least 2 new sporting events

Achieved None

Cultural

Kalahari Festival Mier Achieved Not achieved Event postponed

Gariep Festival Achieved Achieved None

Diamond and Dorings Achieved Achieved None

Kalahari Kuierfees Achieved Achieved None

Afrikaburn Achieved Not achieved Information leaflets not distributed at event

Richtersveld Liggiesfees Achieved Not achieved Event cancelled

Williston Winterfees Achieved Achieved None

Namakwa Festival Achieved Achieved None

Khara Hais Festival Not achieved Achieved None

Extreme adrenaline/sports events

Spinning and Drifting Achieved Achieved None

Green Kalahari Canoe Marathon

Achieved Achieved None

Ghaap Xtreme Achieved Achieved None

Barney Barnato Golf week Achieved Achieved None

Township Revitalization Projects & Events

Achieved Not achieved Information leaflets not distributed at events. Advertising posters were produced for Kings of Spin, Soccer & Beach ball festival

Kalahari Desert Speedweek Achieved Not achieved Event cancelled

Tourism Month Achieved Achieved World tourism day celebrations not hosted in the province this year. Information leaflets distributed at Bloodhound roadshow

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MICE and Events Development Aim: to attract and stage high-revenue Conferences, Meetings, Incentives, Exhibitions and Events

CONFERENCE AND BIDDING SUPPORT: Provide bidding and conference support to identified associations and sport bodies to secure meetings and conferences.

Bid and conference support

Event Support and Activities Outcome

Mercedes Benz Truck Expo Witch and Wizard for the hosting of a Mercedes Benz Truck Expo in a Northern Cape Town. Springbok identified as possible host town

Proper venue and logistics assistance not possible. Event was moved elsewhere by organisers

Amageza Rallye 2015 Amageza Rallye for the hosting of the 2015 Amageza Rallye. Assistance provided to the organisers to identify and secure venues for the various activities in the Northern Cape

Event successfully hosted with great awareness created for destination through national media in both South Africa and Botswana

South African Wildlife Management Association (SAWMA) Symposium 6-10 October 2015

Department of Environment and Nature Conservation for the hosting of the SAWMA 2015 Symposium in Kimberley. NCTA provided I Love Northern Cape t-shirts to each of the delegates, which will ensure future destination profiling.

Event successfully hosted. One hundred and fifty five wildlife management experts from all over South Africa and neighboring countries participated in the conference.

FIFA Beach Soccer 2016 Intermatch Sports Marketing LTD for the possible hosting of an International FIFA accredited Beach Soccer event in the Northern Cape, venue earmarked is Port Nolloth for the 2016 event

Did not manage to solicit the support of the district and local municipality. Organiser informed that NCTA will not be able to provide further assistance.

FISE World Series Hurricane Action Sport Company to secure a Host City spot on the World Series for 2017 - 2019

Complete provincial support not achieved yet. Currently planning to secure approval to attend host city workshops in Canada in order to assist us in establishing and defining bid requirements

MEETINGS: Arranged and/or attended 30 meetings with event organisers, departmental representatives, municipal representatives, business events stakeholders and other stakeholders to discuss events or activities in relation to the organisation’s objectives.

PROVINCIAL CONVENTION BUREAU: Establish and implement Provincial Convention Bureau in conjunction with SAT National Convention Bureau.

The strategy and business plan for the establishment of a Provincial Convention Bureau (PCB) is completed. A number of the required strategic activities of the PCB are however being executed by the Business Tourism Unit of the NCTA.

Mittah Seperepere Convention Centre (MSCC)

The MSCC as a provincial asset has been providing the NCTA with monthly attendance figures except for the last three months of the period under review. The NCTA has been reporting and comparing delegate attendance at the conference venue as per tables below. The centre recorded a total of 74 business events with 81 341 delegates for the period of review, which represents an increase in delegate count of 44% over the previous period. Based on the 2015 SAT and Stats SA Economic Indicators for determining the ROI and economic impact of events in South Africa, delegates contributed R261 104 610.00 (R3510 per day) to the provincial economy. It should also be noted that the number of delegate dates has conservatively been calculated as one day only whereas some of the Business Events were held over a number of days. The value of contribution to GDP for the previous period was R158 205 600.00 (R2800 per day), which represents an increase of 65% for this period.




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Delegate Attendance 2014/2015 Delegate Attendance 2015/2016

Month No. Delegates Month No. Delegates

April 3 8 400 April 5 4 951

may 7 14 990 may 3 3 370

June 4 8 600 June 8 3 960

July 1 2 250 July 5 2 900

Aug 9 5 300 August 8 7 280

September 7 1 425 September 8 7 000

october 13 7 384 october 10 21 980

november 7 1 238 november 11 14 410

December - - December 6 5 170

January 1 4 805 January - -

february 5 2 110 february 4 4 120

march - - march 6 6 200

GRAnD totAlS 57 56 502 74 81 341

TRADE RELATIONS AND EXHIBITIONS: Create awareness in meetings sector especially nC related industry.

Conference Outcomes: Attended the SAACi Conference in Cape town from 2 - 4 August. The program for the 2015 congress included the following items:• better buildings: adaptive and architectural solutions;• Global compliance: trends and local implications;• Wellness for event professionals;• branding and marketing;• professionalism: ethics, conducts and values;• Government tenders;


51


Mittah Seperepere Convention Centre (MSCC)

The MSCC as a provincial asset has been providing the NCTA with monthly attendance figures except for the last three months of the period under review. The NCTA has been reporting and comparing delegate attendance at the conference venue as per tables below. The centre recorded a total of 74 business events with 81 341 delegates for the period of review, which represents an increase in delegate count of 44% over the previous period. Based on the 2015 SAT and Stats SA Economic Indicators for determining the ROI and economic impact of events in South Africa, delegates contributed R261 104 610.00 (R3510 per day) to the provincial economy. It should also be noted that the number of delegate dates has conservatively been calculated as one day only whereas some of the Business Events were held over a number of days. The value of contribution to GDP for the previous period was R158 205 600.00 (R2800 per day), which represents an increase of 65% for this period.

Delegate Attendance 2014/2015 Delegate Attendance 2015/2016 Month No. Delegates Month No. Delegates April 3 8 400 April 5 4 951 May 7 14 990 May 3 3 370 June 4 8 600 June 8 3 960 July 1 2 250 July 5 2 900 Aug 9 5 300 August 8 7 280 September 7 1 425 September 8 7 000 October 13 7 384 October 10 21 980 November 7 1 238 November 11 14 410 December - - December 6 5 170 January 1 4 805 January - - February 5 2 110 February 4 4 120 March - - March 6 6 200 GRAND TOTALS 57 56 502 74 81 341

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• The phycology of learning: meeting formats, presentation and networking; and• information on a profitable financial model: outsource vs insource.

SAACi offers business events Destinations and professionals the platform to engage with likeminded people and interact on programs and activities which could increase its share of the lucrative meetings industry.

Business Events Stakeholder Meetings: two stakeholder meetings were implemented during period of review. These workshops were presented to stakeholders in Kimberley and upington under the heading of “towards building northern Cape’s business events industry”. Stakeholders from northern Cape business events product and Service providers (accommodation, venues with conferencing facilities, conference centres, transport services, catering companies, restaurants, pCo’s, DmC’s) were in attendance.

Exhibitions

Clarkson, Hammond and May Live Show: The nCtA attended the Clarkson, Hammond and may live event at the Coca Cola DomeinJohannesburgfrom12–14June2015.TheBloodhoundLandspeedRecordAttempt,KalahariDesertSpeedweekandHakskeenpan were promoted during the event. A full scale model of the bloodhound Car and 1/10 model was on display.

Indaba 2015, Durban: bloodhound SSC project was profiled in the outdoor exhibition area by way of a full-scale model and also inside the main hall with the bloodhound Driving experience.

IBTM Africa, Cape Town: The nCtA participated under the banner of experience northern Cape and conducted 30 meetings with international hosted buyers. interest in the northern Cape ranged from small high end incentive trips to meetings for 250 delegates.

June 16 Commemoration: The bloodhound project was showcased as part of the June 16 commemoration in upington.

IBTM World, Barcelona: The nCtA participated at this business events tourism exhibition for the first time. ibtm World formerly called eibtm is the flagship event of Reed exhibitions ibtm portfolio with more than 15,500 Worldwide meetings and incentive professionals in attendance in 2016. The nCtA attended the event on a fact finding mission and decided on the following actions:• Host fam trip (December 2015);• ArrangebusinessproductworkshopinKimberleyandUpington(January–March2016);• facilitate presentations to pCo’s and DmC’s nationally during 2016; and • Sign up at least 2 JmA`s with a pCo, DmC and/or incentive House during 2016.

Meetings Africa 2016, Sandton Convention Centre: The nCtA participated at the African business events exhibition platform, meetings Africa 2016 and was shown on national tV. minister Derek Hanekom also visited the stand and briefly met with DeDat’s Acting Head of Department, ms Drinie Samson. 35 meetings were held with business events professionals from india, uSA, netherlands, China, Singapore, Germany, Canada, Kuala lumpur, poland, Russia, brussels and South Africa.

TRADE AWARENESS: establish and maintain close working relationships with key miCe trade to increase their awareness and knowledge of unique miCe offerings and product within nC and encourage their booking of nC for miCe business both national and international.

platforms such as the SAACi Congress, the business events Coordinating Council meetings, ibtm Africa 2015, indaba 2015, ibtm World 2015 and meetings Africa 2016 were utilized to maintain and grow awareness of nCtA as a business events Destination. The nCtA also hosted three national, eight international business events trade and two SA national Convention bureau staff on familiarization tours in the northern Cape during period of review.




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Details of trade hosted

Name Company Professional activity Country

Riedwaan Jacobs Ilios Conferences PCO South Africa

Henk Graaff SW Africa DMC South Africa

Nick Buckland Into Africa DMC/Incentive House South Africa

Michael Kern Dekon Group DMC Turkey

Rajesh Chhetri Dee Catalyst DMC India

Robert Findlay Ruby Mear Group DMC UK

Henry Latham ZETA Tours DMC UK

Deepak Jagtiani Corporate Events DMC India

Jacob Santosh Kumar Network 8 Events DMC Bangladash

Murali Bukkapatnam The Indus Entrepreneurs Buyer India

Isaac Augustine Barretto Mercury Travel DMC India

Tshepo Maseko SANCB Sales & Marketing Coordinator South Africa

Mdu Biyela SANCB Business Development & Research South Africa

Memberships: Identify and obtain membership to relevant international MICE travel and trade bodies. • Southern African Association for the Conference Industry (SAACI); and• Adventure Travel Trade Association (ATTA).

Joint Marketing Agreements including MOU’s: The following event JMA’s were concluded during period of review: • Trans Karoo MTB Challenge, hosted in Sutherland, Namakwa region (Broadcast Media value return of R4 250 000.00 –

Event Organiser report)• RichtersveldWildrun, hosted in the /Ai /AisRichtersveldTransfrontier Park, Namakwa (Broadcast Media value return of

R450 909.00 – Newsclip Monitoring)• XS Promotions for the hosting of one leg of the Supadrift series as part of the Easter Festival in Kimberley (Broadcast Media

value of R3,377 820.00 – Event Organiser report)• Amageza Rallye, hosted at Kimberley, Van Zylsrus, Hakskeenpan and Springbok (Broadcast Media value of R1 669 765.00 –

Newsclip Monotoring)• Simanga Films, provided assistance for the filming of “Snaaks Genoeg” and the promotion of the Namakwa region as film

destination (destination promotion during filming and airing of film, post production in 2016 expected to exceed R1 000 000.00)

Total media value generated by the JMA’s amounts to approximately R10 748 494.00. The JMA investment amounts to R283 000.00, which constitutes a 1:38 ROI.

MICE Database Database As at March 2015 As at March 2016 % Increase/Decrease

Northern Cape Event Organizers 69 101 46%

Professional Conference Organizers (PCO) 47 57 21%

MICE Media 258 320 24%

General MICE Listing 9082 9331 3%

Northern Cape MICE Venues 105 131 25%

Totals 9 561 9 940 4%


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The MICE database grew by 4% year-on-year across all categories with the general MICE contacts (visitors at MICE platforms) reaching a point of saturation. Growth of 25% for MICE venues, 21% for PCO’s and MICE Trade and 24% for MICE media however shows dynamic developments for this sector.

EVENTS SUPPORT: Support the development and expansion of annual events including:• Flagship events: NCTA as key partner;• Endorsed events: NCTA endorsement and promotion through regular channels; and• Seed-supported local events: NCTA provides limited financial support.

Flagship Events

Kimberley Diamond Cup (KDC)

Skateboarding for Hope Activations: The NCTA either attended or ensured brand presence at the following Skateboarding for Hope activations: • Skatelab, George on 4 July 2015;• Key West Mall Skatepark, Krugersdorp on 18 July 2015;• Langebaan Skatepark, Cape Town 25 July 2015;• Menlyn Skatepark, Pretoria on 1 August 2015;• Canal Walk, Cape Town on 5 September 2015;• Kuruman Skatepark, Kuruman on 11 September 2015; and• Postmasburg on 12 September 2015.

KDC Grand Slams: The NCTA was present at the following KDC Grand Slams leading up to the main Championship:• Ticket Pro Dome: The qualifier attracted interest of more than 1 000 people attending the CHM show, present were pro and

amateur skaters, aspirant skaters and clinics with under-privileged kids were held;• Grandwest Casino, Cape Town: 27 participants and more than 1,000 spectators on the day of the event; and • Kimberley Diamond Cup 2015 Championship (KDC): Brand presence at the Kumba Skate Plaza during the 2015 Kimberley

Diamond Cup Championships.

Bloodhound

The Bloodhound Project was showcased and promoted at the following shows and events:• Indaba 2015: Replica of the Bloodhound car as an outdoor exhibit and Bloodhound Driving Experience in main hall across

NCTA stand • CHM Live: Held at the Ticket Pro Dome, Johannesburg from 12 – 14 June 2015. Full size replica of the Bloodhound car as

an exhibit and activation with the Bloodhound Driving Experience;• IBTM Africa: Utilized platform to promote the Bloodhound project;• NC Premier’s Office: Exhibit of Bloodhound replica at the June 16 commemoration in Upington; and• PSTF conference: Exhibit of Bloodhound replica at the PSTF conference held at the MSCC. Activation of Bloodhound

Driving Experience and interaction with more than 1 500 conference delegates.

As part of the Tourism Month activations, the NCTA undertook a provincial roadshow to take the Bloodhound Project to communities in the province, thereby increasing awareness of this forthcoming global event in our province. The presentations were held in the following towns and communities:• Rietfontein, 22 August 2015, attended by more than 300 community members;• Williston (Williston Winter Festival), 3 – 5 September 2015, activation attracted 800 school children and community

members;• Calvinia, 7 September 2015, attendance of 30 school children and community members;• Springbok, 9 September 2015, attendance of 900 scholars from the high schools as well as tertiary institutions;




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• PortNolloth,11 September 2015, the event was attended by 1 100 scholars and community members;• Kakamas,14 September 205, attendance of more than 800 scholars;• Kuruman,16 September 2015, attendance of 40 scholars;• Pella(PellaCulturalFestival),18 – 19 September 2015, more than 200 youth participated in the Bloodhound activation;• GovernmentExhibitionday(Colesberg),17 November 2015, visitation of more than 800 people from the surrounding

communities; and• DeAar:19 November 2015, the workshop attracted more 300 school children for the day.

TransKarooMTBRace,CerestoSutherland:The 2015 Trans Karoo took place on the 25 April 2015, starting In Sutherland (Northern Cape) and ended in Ceres (Western Cape).

LocalEvents

GariepArtsFestival,(Kimberley):Attendance at the annual Gariep Festival attracted 56 941 visitors for the four day duration, a decline compared to previous 2014 event held, the event continues to be one of the major provincial festivals.

GreenKalahariCanoeMarathon,(UpingtontoKakamas):Visitor participation figures are still to be submitted by the organizer but the total of 72 paddlers participated in the race compared to 100 in the previous year. Media exposure to the event resulted in 64 articles being produced with a value of R68million.

RichtersveldWildrun,(/Ai/AisRichtersveldTransfrontierPark):A total of 76 trail runners registered and participated at the event.

DiamondsandDoringsMusicFestival,(KimberleyandLangleg):The event staged various programs across different venues in and around Kimberley. A full report is still awaited from the organizers.

AfrikaBurn, (TankwaKaroo): According to the organizers, approximately 9 264 participants were recorded. The event is restricted to paying participants. The event has a substantial economic impact on the surrounding areas (Carnarvon, Williston, Fraserburg and Calvinia).

EasterSpinning,DriftingandDragRacing,(Kimberley):The number of Annual Easter weekend festivities took place attracted approximately 15 064 for the weekend duration.

FraserburgDramaFestival,(Fraserburg):The NCTA attended this event for the first time as a fact finder, the purpose being to promote Northern Cape Arts and Drama.

WillistonWinterFestival, (Williston): According to the organisers, the 2015 event recorded a visitor figure of 4 400. This represents a decline of 2 percent compared to the previous year.

KalahariDesertSpeedweek,(Hakskeenpan):The event did not take place for 2015.

Barney Barnato Golf Challenge, (Kimberley): Approximately 3600 amateur golfers and day visitors participated in the championships.

GhaapRiverXtremeChallenge,(Douglas):More than 3 600 participants and festival goers reported by the event organizer.

AmagezaRallye,(Kimberley,VanZylsrus,Botswana,Hakskeenpan,Springbok,Kimberley):The Amageza Rallye reported attendance of more than 27 000 people for the event’s seven day duration and 250 participants.

Namakwa-KhaiMaFestival(NamakwaFestival),Pofadder:This event rotates between towns in the Namakwa region and this year was held in Pofadder.

//KharaHaisMusicFestival,(Upington):The event was presented in conjunction with the Mayoral Lights festival and brought together local and national artists performing to the local crowd.

KalahariKuierfees,(Upington):Online support was provided to the festival.


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Annual Events Comparison: 2014/2015 vs. 2015/2016

EVENT COMMUNITY SUPPORT Attendance2015/16 Attendance 2014/15

Diamonds & Dorings festival Kimberley – Sol Plaatjie Municipality

Financial, Branding & Online 10 503 10 000

All Africa Waterski Champs Kakamas – ZF Mcgawu District Municipality

Finance, Branding & Online Once-off event 240

Kimberley Music Festival Kimberley – Sol Plaatjie Municipality

Financial & Online 100 Once-off event

Easter Bash with Teekay Kimberley – Sol Plaatjie Municipality

Online 100 New event

Kalahari Desert Festival Mier – ZF Mcgawu District Municipality

Financial, Branding & Online Event postponed 5 000

Living Waters Outreach Kimberley – Sol Plaatjie Municipality

Branding 250 Once-off event

Ms Gay Pride Festival Kimberley – Sol Plaatjie Municipality

Financial 350 Once-off event

Beach Party Festival Kimberley – Sol Plaatjie Municipality

Financial & Online 350 Once-off event

Afrikaburn Hantam Karoo District Financial &Online 9 264 9 000

Richtersveld Wild Run Richtersveld Municipality Financial, Branding & Online 76 120

Supa Drift Series Kimberley - Sol Plaatjie Municipality

Financial, Branding & Online 8 000 New event

Windsorton Off road race Windsorton- Frances Baard District municipality

Financial – Online & Branding

Once-off event 410

Trans Karoo MTB Sutherland – Namakwa District

Financial – Online & Branding

700 400

SASAFF: Regional Hip Hop Championships

Kimberley – Sol Plaatje Municipality

Financial, Online & Branding Once-off 519

Kimberley Classic Pro Dart Championship

Kimberley – Sol Plaatjie Municipality

Financial - Online & Branding 220 Once-off event

NOCCI Expo Kimberley – Frances Baard District

Online, Financial 1 860 New event

Gariep Arts Festival Kimberley – Frances Baard District

Online, Financial & Branding 56 941 65 000

Amageza Rallye Spectators, competitors and crew

Across Northern Cape 30 000 250

Karoo Cooking & Cultural Festival

Calvinia – Namakwa District Online, Financial 5 000 600

Simanga Films (Production) Northern Cape Financial 20 New JMA

Williston Winter Festival Williston – Pixley Ka Seme District

Financial, Online & Branding 3 200 4 500

Kamiesberg/Namaqualand Flower Run

Kamiesberg – Namakwa District

Online 368 240

Green Kalahari Canoe Marathon

Upington – ZF Mcgawu District

Online, Financial & Branding 72 1200

Pella Festival Pella – Namakwa District Online, Financial & Branding 1 000 New event

Skateboarding Across Northern Cape Financial, Online & Branding 9 043 10 110

Kalahari Desert Speedweek Haakskeen Pan, Mier – ZF Mcgawu District

Financial, Online & Branding Event cancelled

Fraserburg Festival Fraserburg – Karoo Hoogland Online No support provided 220

AMESA Conference Kimberley – Frances Baard District

Financial, Online & Branding Once-off event 1 049

Kimberley Diamond Symposium

Kimberley – Frances Baard District

Online Once-off event 178




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SA Wildlife Management Association (SAWMA)


Financial and Online 155 0

Bloodhound BDE & Communication Test and media activation

Hakskeenpan – Mier, ZF Mgcawu District

Financial, Branding & Online 3 870 150

World Tourism Day Celebrations

Upington & Mier, ZF Mgcawu District

Financial, Branding & Online Once-off event 3 000

Barney Barnato Golf Challenge



Ghaap River Extreme Douglas – PixleyKaSeme District


2014 Toys Run Kimberley – Frances Baard District

Online Once –off event 300

Goegap MTB Springbok – Namakwa District

Online Did not support event 200

NamaGoi Festival Springbok – Namakwa District

Online Did not support 1 500

GWK Hengel Kimberley Open Market



Flying Fish Beach Volley Ball Kimberley – Frances Baard District


Kalahari Augrabies Extreme Marathon

Augrabies – ZF Mgcawu District

Online 710 450

Aggeneys Festival Aggeneys – Namakwa District Online 4 500 3 900

Northern Cape Carb Bonanza Kimberley – Frances Baard District

Online 200 300

Kuruman Gospel Show Kuruman – John TaoloGaetsewe

Online Did not support 2 000

Metro FM Heatwave Tour Kimberley – Sol Plaatje Municipality

Online, Financial & Branding 6 500 New event

Kimberley Festival Kimberley – Sol Plaatje Municipality

Online & Branding 2 500 New event

Khara Hais Festival Upington – Khara Hais Municipality

Financial, Branding & Online 8 000 Did not support

Namakwa Festival Pofadder – Namakwa District Financial, Branding & Online 5 000 6 000

CC Riders Rally Kimberley – Sol Plaatje Municipality


South African Junior Chess Championship


Financial, Logistics, Branding & Online

Once-off event 4 805

Richtersveld Liggies fees Springbok – Namakwa District

Financial, Branding & Online Event cancelled 15 000

Gariep 4X4 Challenge Kimberley – Frances Baard District

Financial, Branding & Online Once-off event 240

Triwaters Tour Barkly-West – Frances Baard District

Financial, Branding & Online Once-off event 100

Pre-Easter Spinfest Kimberley – Frances Baard District

Online 2 000 1 300

Kuruman Fun Run # Kuruman – John Taola Gaetsewe District Municipality


Teeni Bergfees # Olifantshoek – John Taola Gaetsewe District Municipality


Hopetown 150 Motorbike Challenge #

Hopetown – Pixley ka Seme District Municipality



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loxton Show Loxton–PixleyKaSemeDistrict municipality

online 500 not previously supported

Green Kalahari extravaganza Upington–ZFMcgawuDM online 3 600 new event

We love food festival Kimberley–FrancesBaardDistrict municipality

financial, online & branding 200 new event

Cansa Relay for life Kimberley–FrancesBaardDistrict municipality

online 2 000 not previously supported

Sol plaatje Soccer tournament (2 events within same period)

Kimberley–FrancesBaardDistrict municipality

financial, online & branding 9 500 not previously supported

easter Drags (2 events within same period)


financial, online & branding 3 564 2 286

Kings of Spin: Arena Kimberley–FrancesBaardDistrict municipality

financial, online & branding 10 000 part of easter motorsport events

nCS: easter Spin fest (2 events within same period)


financial, online & branding 7 500 2 575

Kp intersessionary meeting Kimberley–FrancesBaardDistrict municipality

financial, online & branding once-off event 500

Casino Royale motorshow Kimberley–FrancesBaardDistrict municipality

online 1 000 new event

totals 218 316 167 74261


ACHIEVEMENTS The NCTA supported fifty events during the period of review, which includes 12 events not previously supported. A total of 62 events were supported in the previous year, which constitutes a decrease of 19%. This decrease is as a result of a more targeted approach to event support and the fact that some key annual events previously supported were either cancelled or postponed. It should be noted however that event attendance increased by 30 % notwithstanding the decrease in event support. Five Joint Marketing Agreements were concluded with event organisers and a film production company, which yielded a return in excess of R10 million. During the period of review event support was extended to 12 new events ensuring we reached a larger target audience and scope for marketing and promotion of Northern Cape events. Participant and visitor attendance of 214 463 was recorded by event organisers, constituting an increase of 28% and a contribution of R140 200 278,00 to the provincial economy. (Grant Thornton Calculation methodology)

CHALLENGES • Budgetary constraints to conclude potential bids. • Support of Local and District Municipalities missing




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ACHIEVEMENTS

The nCtA supported fifty events during the period of review, which includes 12 events not previously supported. A total of 62 events were supported in the previous year, which constitutes a decrease of 19%. This decrease is as a result of a more targeted approach to event support and the fact that some key annual events previously supported were either cancelled or postponed. it should be noted however that event attendance increased by 30 % notwithstanding the decrease in event support.

five Joint marketing Agreements were concluded with event organisers and a film production company, which yielded a return in excess of R10 million.

During the period of review event support was extended to 12 new events ensuring we reached a larger target audience and scope for marketing and promotion of northern Cape events. participant and visitor attendance of 214 463 was recorded by event organisers, constituting an increase of 28% and a contribution of R140 200 278,00 to the provincial economy. (Grant Thornton Calculation methodology)

CHALLENGES• budgetary constraints to conclude potential bids.• Support of local and District municipalities missing


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Key Performance area 6: Special Strategic Projects aim: To reduce barriers to business and support industry transformation





commUnITy anD Smme SUPPorTAssist SMMEs from previously disadvantaged communities to gain access to tourism markets in support of BEE.

Support attendance of travel fairsProvide financial assistance to attend and exhibit at main fairs

Achieved - At least 5 SMMEs supported p.a. to attend travel fairs

Support five SMMEs per annum to attend travel fairs

Achieved None

facilitate Smme marketing exposureProvide preferential exposure in travel guide and on website

Achieved - Dedicated free SMME advertising page in travel guide and website

Dedicate free SMME advertising page in travel guide and website

Achieved None

arrange Smme networkingCreate networking opportunities with the tourism industry

Achieved - Arranged at least 1 function for SMMEs to meet mainstream trade.

Arrange at least one function for SMMEs to meet mainstream trade

Achieved None

Achieved Arranged functions to introduce SMMEs to trade

Arrange functions to introduce SMMEs to trade

Achieved None

STaKeHoLDer reLaTIonSMaintain relations with complementary organizations and coordinating tourism structures

Achieved – Attended meetings:

Attend meetings: Achieved None

National marketing meetings

National marketing meetings

National CEOs forums National CEOs forums

MINMEC/MIPTECH MINMEC/MIPTECH

Relevant DET meetings Relevant DET meetings

Relevant Industry Stakeholder meetings (Provincial, local, national)

Relevant Industry Stakeholder meetings (Provincial, local, national)

National conferences National conferences

Provincial Stakeholders Forums

Provincial Stakeholders Forums



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Special Strategic Projects Aim: to reduce barriers to business and support industry transformation

COMMUNITY AND SMME SUPPORT: Assist SMMES from previously disadvantaged communities to gain access to tourism markets in support of BEE.

Support Attendance at Travel Fairs: Showcasing our SMME product at show platforms encourages their sustainable growth through exposure to trade and consumers. 66 SMME products, inclusive of the four routes, were supported at WTM Africa, Indaba, Getaway Show and the Beeld Holiday Shows.

Facilitate SMME Marketing Exposure: 110 SMME products were exposed to national, international markets, trade, media familiarization trips, in e-newsletters, at shows, in the official travel guide, website, campaigns and itineraries. 48 SMME products on the four routes were exposed in 26 articles, reaching a potential audience of 673 273 million with a media value of R5 099 307 million.

Arrange SMME Networking: 36 SMME products were featured during the Minister of Tourism’s Outreach Program in Kimberley and exposed to national and international trade and media during Stakeholder Engagements held at the Big Hole, Calvinia and at Indaba.

Community Beneficiation at Events: The NCTA supported 50 provincial events and obtained employment figures for 39 of those events. The number of work days amounts to 142 and the total amount spend on temporary employment to R1 263 815.00. A total of 2 068 temporary employment opportunities were created. This represents an increase of 23% over the same period last year.

Projects Direct Investment SMME Marketing Exposure 339 228.86 18% Kimberley Diamond Cup 339 843.43 18% Bloodhound 482 825.00 26% Local festivals and Events 599 524.05 32%Tourism Month 100 275.98 5%Total 1 861 697.32

63


KEY PERFORMANCE AREA 6: SPECIAL STRATEGIC PROJECTS

Aim: to reduce barriers to business and support industry transformation COMMUNITY AND SMME SUPPORT: Assist SMMES from previously disadvantaged communities to gain access to tourism markets in support of BEE. Support Attendance at Travel Fairs: Showcasing our SMME product at show platforms encourages their sustainable growth through exposure to trade and consumers. 66 SMME products, inclusive of the four routes, were supported at WTM Africa, Indaba, Getaway Show and the Beeld Holiday Shows. Facilitate SMME Marketing Exposure: 110 SMME products were exposed to national, international markets, trade, media familiarization trips, in e-newsletters, at shows, in the official travel guide, website, campaigns and itineraries. 48 SMME products on the four routes were exposed in 26 articles, reaching a potential audience of 673 273 million with a media value of R5 099 307 million. Arrange SMME Networking: 36 SMME products were featured during the Minister of Tourism’s Outreach Program in Kimberley and exposed to national and international trade and media during Stakeholder Engagements held at the Big Hole, Calvinia and at Indaba. Community Beneficiation at Events: The NCTA supported 50 provincial events and obtained employment figures for 39 of those events. The number of work days amounts to 142 and the total amount spend on temporary employment to R1 263 815.00. A total of 2 068 temporary employment opportunities were created. This represents an increase of 23% over the same period last year.

Projects Direct Investment

SMME Marketing Exposure 339 228.86 18%

Kimberley Diamond Cup 339 843.43 18%

Bloodhound 482 825.00 26%

Local festivals and Events 599 524.05 32%

Tourism Month 100 275.98 5%

Total 1 861 697.32

Social Tourism: We participated in programs directed at the aged, the youth, disabled and disadvantaged communities. We supported school programs to advance tourism awareness, and partner with government departments to advance social programs thereby enhancing tourism awareness. We collaborated with various provincial departments and Institutions to celebrate the spirit of giving on Nelson Mandela Day and on


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Social Tourism: We participated in programs directed at the aged, the youth, disabled and disadvantaged communities. We supported school programs to advance tourism awareness, and partner with government departments to advance social programs thereby enhancing tourism awareness. We collaborated with various provincial departments and Institutions to celebrate the spirit of giving on Nelson Mandela Day and on International Day for the Eradication of poverty. Projects and communities supported were in Jan Kempdorp, Kimberley and environs. We further hosted 27 school learners from the Frances Baard District on a day trip to Mokala National Park during Tourism Month.

Nine tourism students were given an opportunity to widen their knowledge and experience during a four week experiential training and work program at the Tourism Visitor Center during the Summer Campaign. The program has assisted them in developing their communication skills, sense of responsibility and tolerance to other individuals. It has widened their experience and gave them a sense of pride of becoming more knowledge about the province and their home town, Kimberley.

STAKEHOLDER RELATIONS – Maintain relations with strategic organizations, tourism stakeholders and product, provincial departments and local government structures

Stakeholder Meetings: Tourism is everybodies business and it has become increasingly important to align tourism, corporate governance and marketing objectives, service delivery to maximize use of available resources and to grow Tourism Northern Cape. During these meetings with the various partners, the NCTA outlined its strategic objectives and deliverables, identified areas of co-operation and areas of concern.

Tourism Stakeholder’s Meet and Greet, Calvinia 7 September 2015: A stakeholders meeting was held in partnership with the Namakwa District Municipality and the Provincial Department of Tourism. The new provincial Tourism Master Llan 2015 – 2020 was shared with attendees, the role and responsibilities of the NCTA was clarified and the importance of local and district tourism structures were discussed.

Meetings

Tourism Partners – Trade and Industry and Event Organisers• National Department of Tourism• SA Airlink• SA Express• Fly Blue Crane• Kimberley Diamond Cup• Amageza Rallye • DEDaT• Frances Baard District Municipality • Kimberley Sparkle – Clean-up operation• ACSA• N12 Route• Northern Cape Marketing Forum Meetings• SAFM• Motorsport Fraternity




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Part B

Institutional Meetings

NCTA Board• NCTAExecutiveCommittee(Monthly)• NCTABoard(Quarterly)• NCTAAuditCommittee(Quarterly)

Government Departments - Provincial• MeetingsconductedwithrelevantDepartmentsonanongoingbasis

Government Departments – National • MIPTECH(Quarterly)• MINMEC(Quarterly)• SATMarketingWorkingGroup(Quarterly)

Local Government• Meetingsconductedonanongoingbasis

Stakeholder Meet and Greet Sessions: Intheabsenceofstructuredstakeholderinstitutionsweengageinstakeholdermeetandgreet sessions toshare information,marketingworkplans,newtrends,other industryrelated informationwith the industry,product,government,publicsectorpartnersandtofosterstakeholderrelationsamongstthebroadertourismindustry.

Marketing Forum Meetings: Fourmeetingsareheldonarotationalbasiswithintheregions.Thepurposeofthesemeetingsistosharemarketinformationandstrategies.Informationofnewtrendsnationalandinternationalisalsoshared.Tourismofficersfromlocal/districtmunicipalities,products,associations,DEDaT,SANparks,provincialparksareamongsttheattendees.

Business Tourism Workshop: TwoworkshopswereheldtoclarifythestrategicdeliveryandobjectivesoftheNCTA’sBusinessTourismunitandhighlightingareasofco-operationtoadvancetourismwithintheNorthernCape.TheseworkshopstargetedbusinesstourismstakeholdersinUpingtonandKimberleyandincludedournationalpartners,SANCBandtheTourismGradingCouncilSA.

Private Sector Partnerships: Ongoingpartnershipsandengagementswithprivatesectorinclude(wine,agriculture,bankingandfinance,carmanufacturers,telecommunications)toenhanceourproductofferingandtoexpandourtourismpackage.

ACHIEVEMENTS

• TheNCTAsupported50provincialeventsandobtainedemploymentfiguresfor39ofthoseevents.Thenumberofworkdaysamountsto142andthetotalamountspendontemporaryemploymenttoR1263815.00.Atotalof2068temporaryemploymentopportunitieswerecreated.Thisrepresentsanincreaseof23%overthesameperiodlastyear.

• 48SMMEsfeaturedinatotalof26articles,reachingapotentialaudienceof673000withamediavalueofR5million.

CHALLENGES• Industrytransformationisstilltakingplaceataslowpace• Accessremainsachallenge(priceofairtickets)• SMMEFinancialandBusinessCapacity/Resources• SMMEsaccesstofinance


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Programme 2: administrationKey Performance area 7: administrative services aim: To ensure efficient and effective administrative management through compliance to Pfma

strategy/action

Performance indicator

actual achievement

2014/15

Performance targets

Planned target 14/15

actual Performance deviation

office Systems manage office space and systems

security and safety

Pay office rent

Pay water & electricity

maintain office image

Purchase cleaning materials

all payments made within 30 days as required by treasury regulations.

expenditure within budget.


Prompt payment

Prompt payment

Prompt payment

Budget not exceeded

Budget not exceeded


Payments made within 30 days



none

communication Systems ensure efficient and effective communications and communication systems

manage and execute postage and courier

administer and service franking machine.

manage and pay telephone, fax and internet service

manage printing and stationary

manage rentals and make rental payments

manage photo copies, order copy paper

all expenditure incurred in line with policy.

all payments made within 30 days as required by treasury regulations


Comply with policy

Comply with policy

Comply with policy

remain within budget

Prompt payments

remain Within budget

all expenditure incurred in line with policy.

all payments made within 30 days as required by treasury regulations


none

Sundry expenses ensure efficient and effective control of sundry expenses

manage petty cash for Public relations, entertainment,

Pay bank charges

Interest Paid

Pay TV license

Insurance



all expenditure incurred in line with policy

Prompt payment

Budget not exceeded

Comply with policy



all expenditure incurred in line with policy

none



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Part B

Strategy/Action

performance indicator

Actual achievement

2014/15

performance targets

planned target 14/15

Actual performance Deviation

Travel and Subsistence Ensure effective and efficient travel and subsistence services

processing of claims:

petrol allowance

Air travel

Staff travel &Subsistence claims

board travel &Subsistence claims

All expenditure incurred in line with policy and budget

Remain within budget

Comply with policy

All expenditure incurred in line with policy.

none

Movable Assets Ensure effective and efficient management of movable Assets

purchase and maintain computers

prepare and pay payroll license fee

office furniture purchase


All payments made within 30 days as required by treasury Regulations

Remain within budget

Compliance with policies


All purchases and disposals updated on Asset Register.

All payments made within 30 days as required by treasury Regulations

none

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KEY PERFORMANCE AREA 8: Financial and Payroll Services Aim: To ensure efficient and effective pay roll services and compliance with NCTA reporting procedures





Taxes and leviesensure efficient payment of taxes, levies and membership fees

pay skills development levies

pay industry membership fees eg SAtSA, SAltA, bmf

pay workman’s compensation levies

All payments made within the required timeframe

All payments made within 30 days as required by treasury Regulations.

ensure monthly payment

ensure monthly paymentpay and evaluate value membership regularly

pay and evaluate value membership regularly

All payments made within 30 days as required by treasury Regulations.

none

none

none

Board Payments manage payments to board members

prepare monthly board Honorariums

All payments made within the required timeframe.

ensure monthly payment

All payments made within the required timeframe.

none

Wages and Salaries ensure efficient payment of wages, allowances and other forms of remuneration

prepare and pay salaries

prepare and pay allowances Housing motor

prepare and pay various employer contributions

prepare and make medical aid fund payments

prepare and make bonus payments as per performance system

prepare and pay casual wages as per project needs

All payments made within the required timeframe and in line with approved policies.

ensure prompt and correct payment





ensure Annual payment

ensure payments are made in line with policy

All payments made within the required timeframe and in line with approved policies and legislation.

none

none

none

none

none

none

none



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Part C

KEY PERFORMANCE AREA 9: Human Resources and Organizational Development Aim: To ensure an efficient and effective organization with capable and motivated staff





HR PoliciesDevelop and implement appropriate HR policies and practices

Labour relations policyDevelop and implement labour relations policy according to approved programme.

Procedures manualRevise policies and procedures

Employee leaveupdate and maintain leave procedures and register

policy developed and implemented

Disciplinary Code / Code of Conduct developed and implemented.

Annual review of policies conducted.

Register updated and reconciled monthly.

Review policy and update amendments

Review policy and update amendments

implementation

implementationmonthly balancing of leave register

HR policy reviewed and updated. Achieved

Review conducted. Disciplinary Code / Code of Conduct monitored and implemented.

Annual review of HR policies conducted.

Register updated and reconciled monthly.

none

none

none

none

Performance managementimprove staff capacity and performance

Devise performance management plan

Conduct annual skills audit and needs analysis and implement a skills development programme for personnel (partner with learning institutions)

Arrange training programmeAttend seminars

policy and system approved and implemented.

Skills audit conducted and skills gaps identified through the pmDS system (Quarterly reviews). Skills programs identified with Getsmarter / uCt and implemented.

Skills gaps addressed through skills identification and performance management system.

2 Staff members sent on 2 formal online training courses. finance unit sent on informal training at provincial treasury.

performance management system implemented and monitored

identify Skills gaps and development needs and implement training interventions to address the training needs.

implement training interventions to address skills gaps and training needs. implement a learnership programme for experiential training to 2 students.

Support school learners to attend national tourism Careers expo.

policy and system maintained and implemented.

Skills development plan compiled through identification process.

3 Senior managers attended Advanced project management training. 3 Junior staff members trained in introductory project management. All training conducted through university of Cape town and Getsmarter. 2 Students appointed on a learnership programme across all disciplines in the nCtA. 30 school learners supported to attend the national tourism Careers expo.

none

none

none

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Employee wellnessMaintain and improve staff and industry motivation

employee Wellness programmes:

Develop eAp programmes and offer support to staff

brand Ambassador Awards for staff and industry employees

Arrange weekly staff meetings

Staff continuously supported through identified processes, eg, counselling and referrals. eAp policy developed and implemented.

monthly staff award implemented with incentives.

Staff meetings held on weekly basis

eAp programmes implemented and continuous staff support granted.

Quarterly award for best employee

employee wellness with interventions

A formal employee Wellness Day held off site. Staff continuously supported through identified processes, eg, counseling and referrals. 1 employee referred for psychological counseling.

Staff award implemented with incentives at year end.

Staff meetings held on weekly basis to improve internal communication and staff morale

none

none

none



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Part C

KEY PERFORMANCE AREA 10: Corporate Governance and Special Projects Aim: To apply best practice in corporate governance thereby reducing risks and improving performance of the NCTA





Accounting and auditingemploy high quality accounting and auditing practices

Appoint accounting firm to prepare annual statements

Appoint internal audit committee, arrange meetings, draft charter

prepare for annual audit

engage Auditor General to undertake annual audit

Achieved

Achieved–4meetings held as required.

Achieved

Achieved

Complete quarterly internal audits and report

100% compliance with procedures

facilitate Annual Audit

Achieved

Achieved–4meetingsheld

Achieved

Achieved

none

none

none

none

Strategic planningplan effectively

Develop 3-year strategic plan new plan adopted by board and DeDAt

plan approved by board and DeDat

App adopted by board and DeDAt

none

Board meetingsmanage and arrange regular board and exco meetings

Arrange quarterly Board meetings

Arrange monthly EXCO meetings

board meetings held quarterly

eXCo meetings held monthly

Hold 4 meetings

Hold 10 meetings

board meetings held Quarterly

monthly eXCo meetings held

none

none

ReportingReport on performance as required

Draft and submit reports to DeDat

produce a high-quality Annual Report

Quarterly reports submitted as required.

Annual report tabled to legislature as required.

Submit quarterly reports

table Annual Reports by Sep/oct

Quarterly reports submitted as required.

Annual report tabled to legislature as required.

none

none

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Risk managementinstitute procedures to manage and reduce risks

Review financial procedures manual and delegations and update

Completion of asset register and compliance with Audit requirements

Devise risk management strategy

manage potential risks e.g. monthly printing of staff telephone printout

financial policies& delegations adopted by the new board members

Asset register updated with all purchases.

Risk assessment completed with the help of provincial treasury. Reviewed on a continuous basis.

Developed policies and procedures to minimise risks during day to day operations

Sound financial procedures manual

Annual verification of assets

Complete strategy

effective control of identified risks

financial policies & delegations reviewed by management

Asset register updated with all purchases and disposals

Risk assessment completed with the help of provincial treasury. Reviewed on a continuous basis.

Reviewed policies and procedures to minimise risks during day to day operations.

none

none

none

none



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Part C

pARt C:GoVeRnAnCe

1. INTRODUCTIONCorporate governance embodies processes and systems by which public entities are directed, controlled and held to account. in addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entity’s is applied through the precepts of the public finance management Act (pfmA) and run in tandem with the protocol on Corporate Governance, which encapsulates the principles contained in the King’s Report on Corporate Governance.

parliament, the executive and the boards of the public entity are responsible for corporate governance.

2. PORTFOLIO COMMITTEESThe nCtA presented its annual report for the financial year 2014/2015 to the portfolio Committee of finance, economic Development and tourism and the Standing Committee on public Accounts on 10 november 2015.

3. EXECUTIVE AUTHORITYThe nCtA submitted quarterly progress reports on performance to the office of the meC: finance, economic Development and tourism on the following dates:Q1 - 6 July 2015Q2 - 19 october 2015Q3 - 14 January 2016Q4 - 15 April 2016

4. THE BOARDPowers and functions of the Board

InordertoachievetheobjectivesoftheEntity,theBoardmay–

(a) in consultation with the responsible member and the member of the executive Council responsible for finance, lease, purchase or otherwise acquire, let, sell exchange or alienate, mortgage, burden with a servitude of confer any real right in immovable property;

(b) rent, purchase or acquire, rent out, sell, exchange or alienate, pledge or confer any other real right in movable property;

(c) negotiate or, in consultation with the responsible member, cooperate with any government, provincial administration or local government, or any other board or person, in the Republic or elsewhere, with regards to any matter which is directly or indirectly aimed at the achievement of the objectives of the board;

(d) in consultation with the responsible member, enter into agreements with a similar body, within the Republic or elsewhere, for the promotion of tourism in the respective areas for which the entity and that body have been established, and for what purpose the board, or a member or members of the board, may undertake journeys inside and outside the Republic;

(e) in consultation with the responsible member, open and administer offices which may be necessary or advisable for the effective and proper exercise of its powers, the performance of its functions and the carrying out of its duties;

(f) acquireinsurancecover–

(i) against any loss, damage, risk or liability which it may suffer or incur; and

(ii) for the members of the board and committees and employees in respect of bodily injury, disablement or death resulting solely and directly from an accident occurring when performing their duties as such members or employees

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(g) open and maintain an account in the name of the Entity with a registered Bank in the republic;

(h) draw up, make, publish and sell or make available free of charge, books, guides, maps, publications, photographs, films, videos and similar matter intended to inform persons in the Republic or elsewhere, of tourism attractions and services in the Province;

(i) gather, evaluate and process information relating to tourism in the Province and make such information available to persons who are engaged in the tourism industry;

(j) give marketing advice and guidance to persons who are engaged in the tourism industry in the Province;

(k) with a view to the effective marketing of, and the provision of information relating to any service, facility or product offered in connection with tourism, determine, publish and regulate the use of such distinguishing signs and wording as the Board may deem fit;

(l) in consultation with the responsible Member and the Member of the Executive Council responsible for Finance, establish, manage and administer any pension or provident fund or medical aid scheme for the benefit of the Entity’s employees, or have such fund or scheme administered by another person or body;

(m) negotiate and co-operate with any educational institution regarding the institution, continuation or expansion of courses for the training of persons for careers in the tourism industry;

(n) approve the use of trading names by the Entity for specific tourism marketing projects; and

(o) perform any other activities which may contribute towards the achievement of the objectives of the Entity.

In order to achieve the objectives of the Entity, the Board must –

(a) work with the Department and municipalities to implement the tourism development and marketing strategies of the Province and municipalities;

(b) integrate transformation objectives into the operational activities of the Entity;

(c) work with other national and provincial public entities, particularly those tasked with tourism, trade and investment promotion; and

(d) work with sector-specific bodies which contribute to the growth of the tourism industry in the Province.

The Board must exercise and perform its powers and functions with due regard to section 104, read with section 125 of the Constitution, section 230 of the Constitution, the Borrowing Powers of Provincial Governments Act, 1996 (Act No. 48 of 1996), the Public Finance Management Act, 1999 (Act No. 1 1999) and the provisions of all national legislation and all national policies, guidelines and directives pertaining to tourism, trade, industry, sector development and investment, with specific reference to policies, guidelines and directives pertaining to the transformation of the tourism and business sectors.

The Board must exercise and perform its power and functions, as far as financial and personnel matters are concerned, by-

(a) developing and implementing all policies and programmes of the Entity pertaining to financial and personnel matters, within six months after the coming into operation of this Act, and subsequently amending such policies and programmes as and when necessary;

(b) ensuring that the Entity adheres to sound financial management, effective and equitable human resource development and efficient office administration in a responsible, accountable and transparent manner; and

(c) employing, disciplining, suspending or dismissing any employee of the Entity, with due regard to the provisions of the Labour Relations Act, 1995 (Act No 66 of 1995).



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Part C

Composition of the Board

Name Designation (in terms of the Public Entity Board structure)

Date appointed

Date resigned/ term ended

Other Committees (e.g: Audit committee)

No. of Meetings attended

Mr K Phentela Chairperson 31/12/2009 31/03/2016 Audit Committee 2Mr C Fortune Chairperson 1/04/2015 Executive Committee,

Tender Committee, Audit Committee

12

Ms B Bopape Vice Chairperson 1/04/2015 4Mr A Vass Non - Executive Member 31/12/2009 31/03/2016 Executive Committee,

Tender Committee2

Mr R Williams Non - Executive Member 1/04/2015 Audit Committee 7Mr R Loko Non - Executive Member 1/04/2015 4

Mr V Barbery Non-Executive Member 1/04/2015 3Mr T Cogang Non-Executive Member 1/04/2015 Executive Committee,

Tender Committee12

Mr W Burger Non-Executive Member 1/04/2015 Executive Committee, Tender Committee

7

Committees

Committee No. of meetings held

No. of members

Name of members

EXCO 9 3 Mr C Fortune, Mr W Burger, Mr T Cogang

Audit Committee 4 3 Mr R Williams, Mr C Fortune, Mr A Motlekar, Mr K Phentela

Tender Committee 0 3 Mr C Fortune, Mr W Burger, Mr T Cogang

Remuneration of Board Members

Name Remuneration Other allowance Other reimbursements TotalMr K Phentela 7 830 1 000 - 8 830Ms B Bopape 10 400 - - 10 400Mr A Vass 4 000 - - 4 000M R Williams 20 000 - - 20 000Mr R Loko 12 000 - - 12 000Mr C. Fortune 90 430 - - 90 430

Mr W. Burger 16 000 - - 16 000Mr T Cogang 25 482 - - 25 482Mr V Barbery 12 000 - - 12 000

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5. RISK MANAGEMENT AND INTERNAL CONTROLAs in any business, nCtA faces risk and uncertainty in everything it does. The corporate strategy, which is reviewed on a regular basis, seeks to capitalise on identified opportunities while mitigating known downside risks. Where material risks have been identified within our business, we have implemented an appropriate internal control environment to endeavour to protect the entity. The board is ultimately responsible for the system of internal controls and risk management, and it discharges its duties in this area by:

• overseeing the risk management strategy; and

• ensuring management implement effective systems of risk identification, assessment and mitigation and internal controls. These systems are designed to manage, rather than eliminate, the risk of failure to achieve business objectives and cannot provide absolute assurance against material misstatement or loss.

Key features of NCTA’s internal control framework include:

Clear delegation of power Agreed objectives Agreed ways

of working Transparency

Schedule of matters reserved for the

board’s decision Remit and terms of reference of board

Committees

Delegation of authority to each level of management

Group Strategy, supported by

Annual financial and technical budgets

Risk tolerance / appetite clearly defined

Code of Conduct

Documented policies, procedures, processes

and standards

Risk management policy and procedures

Appropriate tools including accounting,

and risk systems

Clear accountability

management reporting against budgets,

plans and forecasts supported by

Annual audit and other external

assurance providers

internal audit and other in-house review

processes

Responsibility for reviewing the effectiveness of the internal controls has been delegated to the Audit and Risk Committee. The Committee uses information drawn from a number of different sources to carry out this review.

Financial reportingmanagement is responsible for establishing and maintaining adequate internal controls over financial reporting. A comprehensive strategic planning, budgeting and forecasting system is in place. financial information is reported to the executive Committee on a monthly basis and to the board on a quarterly basis. The executive Committee meet monthly to review performance against budget and forecast and senior financial managers regularly carry out reviews and analysis of material variances. The Audit and Risk Committee reviews the application of financial reporting standards and any significant accounting judgements made by management.

internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes.

Risk managementnCtA has an integrated approach to risk management and internal controls to ensure that its review of risk is used to inform the internal audit process and the design of internal controls. The risk management process, which has been in place throughout the year under review and to the date of approval of the accounts, identifies, evaluates, manages and monitors the risks facing the business. Those risks that are identified as significant, in addition to the associated mitigating controls, are reviewed regularly by the executive Committee and then by the board.

Risk management is embedded into the operations of the organisation. We have been assisted by the provincial treasury’s risk management unit in developing the model that is used by the nCtA. The model is based on the barn owl system developed and adopted by national treasury.

Risk assessments are performed annually and coincide with the strategic planning process.



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Part C

6. INTERNAL AUDIT AND AUDIT COMMITTEESThe Audit Committee was fully functional during the period under review, the main activities of the committee during the 2015/2016 period included the following:

• implementation of Audit Action plans (14/15 outcomes)• implementation of Risk management Strategy

7. COMPLIANCE WITH LAWS AND REGULATIONSThe nCtA has implemented policies and procedures in order to ensure that we are compliant with all relevant laws and regulations applicable to Section 3 C provincial public entities.

8. FRAUD AND CORRUPTIONThe nCtA have an anti-fraud and corruption policy that has been approved and adopted by the board. The policy regulates the prevention, detection, reporting of and dealing with all corruption and fraud, theft, maladministration and suspected irregularities.

9. MINIMISING CONFLICT OF INTERESTAll employees are prohibited from engaging in any business activities that are actually or potentially adverse or detrimental to the best interest or mission of the nCtA. This procedure is included in the Human Resources policy manual and is continually communicated across the entity. no incidents relating to conflict of interest has been detected or reported for the period under review.

10. CODE OF CONDUCTWith our continued emphasis on compliance with our code of conduct our employees always strive to conduct themselves in a manner that is ethical and professional, both in their individual conduct and in their relationship with each other. All employees are aware of the code of conduct and the implications it will have on individuals and the entity. no transgression of note has transpired within the period under review.

11. HEALTH SAFETY AND ENVIRONMENTAL ISSUESnCtA remains committed to the health and safety of all staff members and to protecting and enhancing the environment. Safety and health programs are described in the occupational Health and Safety Act and each work area have access to and have access to the safety procedures. Regular inspections are conducted to identify potential safety hazards. no incidents relating to occupational Health and Safety have taken place in the year under review.

The nCtA regards its human capital as a valuable asset which we strive to manage well with as much focus as any other strategic business development. nCtA understands the effect that individual health and wellness has on the day to day operations of the entity especially since we operate in a very demanding environment. We have in place a process where specialized support is available and we give direction in making the choices that build a healthy workplace through employee wellness initiatives that have a positive and direct impact on individuals.

The services rendered by this unit is centred on but not limited to:• HiV/ AiDS counselling and support• emotional and personal difficulties• Drug & Alcohol abuse• managing stress and change• trauma counselling• Work related issues (eg, poor performance, absenteeism, retirement preparation, etc)• Health promotion • financial guidance

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PART D:HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION The NCTA has over the last year continued to implement proactive HR strategies to address the reactive responses to employment conditions. Our workforce is representative of our strong focus on transformation which includes employees who fill strategic, administrative, and managerial roles. We work in a dynamic environment where, as the tourism industry continues to change, our workforce must evolve. Our employees come from a variety of backgrounds and is more representative of the diversity of our province than in the last 5 years.

Learnership Program - In the 2015/16 financial year, the NCTA had the pleasure of working with 3 students in our learnership program. Each learner was matched to a unit within the entity in an area relevant to the learner’s area of interest. This program was designed to provide learners with a broad view of our objectives and deliverables and aids them in realistically assessing their future career decisions. Everyone involved in each program strives to ensure that all students have an engaging and rewarding experience. We have successfully assisted one learner to enrol for a B.Com degree at University of Johannesburg which further underlines our commitment to developing our youth.

Performance Management - Our Performance Management system was introduced in 2010 and is a best practice approach that ties and cascades strategic goals all the way down to personal work goals. With our strong desire to become more efficient and align ourselves with best practice methodologies, we focus heavily on individual performance outputs which ultimately contributed to the achievement of various awards ranging from best stands at exhibitions, international loerie award and worthy to mention, a clean audit for 2015/16.

Training & Development - With the ever changing environment in which we operate training and development is a key focal area to ensure staff stays on par with new and developing trends. Human Resources has provided a variety of Training and Development opportunities aimed at building employee capacity to deliver services, meet strategic needs and align with our Values and overall Mission. Training and Development programs in the areas of Project Management, Events Management, Marketing and Financial Management which directly support our Mission was organised and implemented through our partnership with University of Cape Town. The courses offered by the University of Cape Town are designed, developed and facilitated by professional subject matter experts through partnership with Getsmarter.

2. HUMAN RESOURCE OVERSIGHT STATISTICS The public entity must provide the following key information on human resources. All the financial amounts must agree to the amounts disclosed in the annual financial statements. Where considered appropriate provide reasons for variances.

Personnel Cost by programme

Programme Total Expenditure for the entity

(R’000)

Personnel Expenditure (R’000)

Personnel exp. as a % of total exp.

(R’000)

No. of employees Average personnel cost per employee

(R’000)Marketing 12505 4517 23 8 565Administration 7499 4438 22 8 555TOTAL 20005 8955 100 16



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Part D

Personnel cost by salary band

Level Personnel Expenditure (R’000)

% of personnel exp. to total personnel cost

(R’000)

No. of employees Average personnel cost per employee (R’000)

Top Management 1219 13.61% 1 1219Senior Management 4136 46.19% 5 827Middle Management 762 8.51% 1 762Junior Management 1236 13.80% 2 618Skilled 1568 17.51% 6 261Unskilled 208 2.32% 2 104TOTAL 8955 17

Performance Rewards

Programme Performance rewards Personnel Expenditure (R’000) % of performance rewards to total personnel cost (R’000)

Top Management - 1219 0Senior Management 136 4136 1,5Middle Management 25 762 0,3Junior Management 34 1236 0,4Skilled 41 1568 0,5Unskilled 5 208 0,1TOTAL 192 8955 2,1

Training Costs

Directorate/ Business Unit

Personnel Expenditure (R’000)

Training Expenditure

(R’000)

Training Expenditure as a % of Personnel Cost.

No. of employees trained

Avg training cost per employee

Marketing 4517 42 0,94 5 8 460Administration 4438 7 0,16 1 7 200TOTAL 8955 49 6

Employment and vacancies

Programme 2012/2013

No. of Employees

2013/2014 Approved Posts

2013/20143

No. of Employees

2013/2014

Vacancies

% of vacancies

Marketing 8 11 8 4 36%Administration 9 12 8 3 25%TOTAL 17 23 16 7 30%

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Employment by Occupational Category

Programme 2012/2013

No. of Employees

2013/2014 Approved Posts

2013/2014

No. of Employees

2013/2014

Vacancies

% of vacancies

Top Management 1 1 1 0 0Senior Management 5 5 5 0 0Middle Management 1 1 1 0 0Junior Management 2 5 2 3 40Skilled 7 10 6 4 40Unskilled 1 1 1 0 0TOTAL 17 23 16 7 30

Employment changes

The NCTA had maintained a low staff turnover rate over the past two financial years. No resignations or service terminations for the period under review.

Salary Band Employment at beginning of period

Appointments Terminations Employment at end of the period

Top Management 1 0 0 1Senior Management 5 0 0 5Middle Management 1 0 0 1Junior Management 2 0 0 2Professional Qualified 0 0 0 0Skilled 6 0 0 6Un skilled 1 0 0 1Total 16 0 0 16

Reasons for staff leaving

Reason Number % of total no. of staff leavingDeath - 0Resignation - 0Dismissal - 0Retirement - 0Ill health - 0Expiry of contract - 0Other - 0Total - 0



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Part D

Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number Verbal Warning 2Written Warning 0Final Written warning 0Dismissal 0

Equity Target and Employment Equity Status

Levels MALEAfrican Coloured Indian WhiteCurrent Current Current Current

Top Management 0 0 0 0Senior Management 0 3 0 0Middle Management 0 1 0 0Junior Management 1 0 0 0Skilled 1 1 0 0Semi - Skilled 0 0 0 0Unskilled 0 0 0 0TOTAL 2 5 0 0

Levels FEMALEAFRICAN COLOURED INDIAN WHITE

Current Current Current Current Top Management 0 1 0 0Senior Management 0 0 0 2Middle Management 0 0 0 0Junior Management 1 0 0 0Skilled 3 1 0 0Semi-skilled 0 0 0 0Unskilled 0 1 0 0TOTAL 4 3 0 2

Levels Disabled StaffMale Female

Current CurrentTop Management 0 0Senior Management 0 0Middle Management 0 0Junior Management 0 0Skilled 0 0Unskilled 0 0TOTAL 0 0

Vacancies are advertised with specific focus on attracting disabled staff in skilled and junior management categories. However, no disabled candidates have applied for any of the advertised positions.

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pARt e:finAnCiAl infoRmAtion

1. STATEMENT OF RESPONSIBILITYStatement of Responsibility for the Annual Financial Statements for the year ended 31 March 2016

The Chief executive officer is responsible for the preparation of the public entity’s annual financial statements and for the judgements made in this information.

The Chief executive officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual financial statements.

in my opinion, the financial statements fairly reflects the operations of the public entity for the financial year ended 31 march 2016.

The external auditors are engaged to express an independent opinion on the AfS of the public entity.

The nCtA’s annual financial statements for the year ended 31 march 2016 have been audited by the external auditors and their report is presented on page 74.

The Annual financial Statements of the public entity set out on page 77 to page 120 have been approved.


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3. ANNUAL FINANCIAL STATEMENTS

Northern Cape Tourism AuthorityFinancial Statements for the year ended 31/03/2016

GENERAL INFORMATION

BUSINESS ADDRESS 15 Villiers Road

CBD

Kimberley

8301

POSTAL ADDRESS Private Bag X5017

Kimberley

8300

BUSINESS Advancement of Tourism in the Northern Cape Province

BANKERS First National Bank

AUDITORS Auditor General of South - Africa

COUNTRY OF INCORPORATION AND DOMICILE South Africa

LEGAL FORM OF ENTITY Public Entity established in terms of the Northern Cape Tourism EntityAct No. 5 of 2008. The Public Entity is listed in terms of the PFMA as aSchedule 3C, Public Entity

BOARD MEMBERS C Fortune (Chairperson)

B Bopape (Deputy Chairperson)

V Barbery

RJ Williams

RM Loko

W Burger

T Cogang

CHIEF EXECUTIVE OFFICER S Lewis

CHIEF FINANCIAL OFFICER R Miller

LEVEL OF ASSURANCE These financial statements have been audited in compliance with theapplicable requirements of the Public Finance Management Act(PFMA) No. 1 of 1999.

EXECUTIVE AUTHORITY Northern Cape Department of Economic Development and Tourism(MEC: M Jack)

PUBLISHED 31 May 2016

FINANCIAL REPORTING FRAMEWORK Generally Recognised Accounting Practice (GRAP), as issued by theAccounting Standards Board (ASB)

RELEVANT LEGISLATION Northern Cape Tourism Entity Act, No. 5 of 2008;

Public Finance Management Act, No. 1 of 1999;

Employment Equity Act, No. 9 of 1999;

Basic Condition of Employment Act, No. 75 of 1997; and

Unemployment Insurance Act, No. 30 of 1966.

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Part E


INDEX

The reports and statements set out below comprise the financial statements presented to the Provincial Legislature:

INDEX PAGE

Statement of Members responsibility 3

Audit Committee Report 6 - 7

Members Report 4 - 5

Statement of Financial Position 8

Statement of Changes in Net Assets 10

Statement of Financial Performance 9

Cash Flow Statement 11

Accounting Policies 12 - 30

Notes to the Financial Statements 31 - 45

ABBREVIATIONS

GRAP Generally Recognised Accounting Practice

IAS International Accounting Standards

MEC Member of the Executive Council

PFMA Public Finance Management Act

DEDAT Department of Economic Development and Tourism

2

Statement of members responsibility 79

Members report 80

Audit Committee 82

Statement of financial position 83

Statement of financial performance 84

Statement of changes in net assets 85

Cash flow 86

Accounting policies 87

Note to financial statements 106

ABBREVIATIONSGRAP Generally Recognised Accounting PracticeIAS International Accounting StandardsMEC Member of the Executive CouncilPFMA Public Finance Management ActDEDAT Department of Economic Development and Tourism

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STATEMENT OF MEMBERS RESPONSIBILITY

The members are required by the Public Finance Management Act (Act 1 of 1999), to maintain adequate accounting recordsand are responsible for the content and integrity of the financial statements and related financial information included in thisreport. It is the responsibility of the members to ensure that the financial statements fairly present the state of affairs of theentity as at the end of the financial year and the results of its operations and cash flows for the period then ended. The externalauditors are engaged to express an independent opinion on the financial statements and was given unrestricted access to allfinancial records and related data.

The financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice(GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonableand prudent judgements and estimates.

The members acknowledge that they are ultimately responsible for the system of internal financial control established by theentity and place considerable importance on maintaining a strong control environment. To enable the members to meet theseresponsibilities, the accounting authority sets standards for internal control aimed at reducing the risk of error or deficit in a costeffective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effectiveaccounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitoredthroughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s businessis conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the entity ison identifying, assessing, managing and monitoring all known forms of risk across the entity. While operating risk cannot befully eliminated, the entity endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethicalbehaviour are applied and managed within predetermined procedures and constraints.

The members are of the opinion, based on the information and explanations given by management, that the system of internalcontrol provides reasonable assurance that the financial records may be relied on for the preparation of the financialstatements. However, any system of internal financial control can provide only reasonable, and not absolute, assuranceagainst material misstatement or deficit.

The members have reviewed the entity’s cash flow forecast for the year to 31/03/2017 and, in the light of this review and thecurrent financial position, they are satisfied that the entity has or has access to adequate resources to continue in operationalexistence for the foreseeable future.

The entity is wholly dependent on the Northern Cape Department of Economic Development and Tourism for continuedfunding of operations. The financial statements are prepared on the basis that the entity is a going concern and that theNorthern Cape Department of Economic Development and Tourism has neither the intention nor the need to liquidate or curtailmaterially the scale of the entity.

Although the accounting authority are primarily responsible for the financial affairs of the entity, they are supported by theentity's external auditors.

The external auditors are responsible for independently reviewing and reporting on the entity's financial statements. Thefinancial statements have been examined by the entity's external auditors and their report is presented on page xx.

The financial statements set out on pages 4 to 45, which have been prepared on the going concern basis, were approved bythe accounting authority on 31 May 2016 and were signed on its behalf by:

C Fortune (Chairperson)

Kimberley

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MEMBERS REPORT

The members submit their report for the year ended 31/03/2016.

1. INCORPORATION

The entity was established on 1 April 2010 in terms of the Northern Cape Tourism Entity Act, No. 5 of 2008. The entity is listedas a Schedule 3C Public Entity, in terms of the Public Finance Management Act, No.1 of 1999.

2. REVIEW OF ACTIVITIES

Main business and operations

Net surplus of the entity was R 22,874 (2015: surplus R 5,627).

3. GOING CONCERN

We draw attention to the fact that at 31/03/2016, the entity had accumulated deficits of R (9,207) and that the entity's totalliabilities exceed its assets by R (9,207).

The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basispresumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities,contingent obligations and commitments will occur in the ordinary course of business.

The entity is wholly dependant on the Northern Cape Department of Economic Development and Tourism for continued fundingor operations. The Northern Cape Department of Economic Development and Tourism has neither the intention nor the need toliquidate or curtail materially the scale of the entity.

4. SUBSEQUENT EVENTS

The members are not aware of any subsequent events that would require disclosure or adjustment of the financial statements.

5. MEMBERS' INTEREST IN CONTRACTS

The accounting authority and key management of the entity did not have any interest in contracts entered into during the yearunder review.

6. ACCOUNTING POLICIES

The following Standards on Generally Recognised Accounting Practice (GRAP) have been issued but is not yet effective, theentity did not early adopt this Standards.

GRAP 32: Service Concession Arrangements: Grantor, issued August 2013; GRAP 108: Statutory Receivables, issued September 2013; andIGRAP 17: Service Concession Arrangements where a Grantor controls a Significant Residual Interest in an Asset.

All the standards as listed above will only be effective for financial years starting on or after 01 April 2016, as announced by theMinister of Finance.

Standards of GRAP effective from 01 April 2015:

The following GRAP standards became effective during the reporting period, the effectiveness of these standards did not haveany impact on the financial statements of the entity.

GRAP 18: Segment Reporting;GRAP 105: Transfer of functions between entities under common control;GRAP 106: Transfer of functions between entities not under common control; andGRAP 107: Mergers.

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MEMBERS REPORT

7. ACCOUNTING AUTHORITY

The members of the entity during the year and to the date of this report are as follows:

Name NationalityC Fortune (Chairperson) South - AfricanB Bopape (Deputy Chairperson) South - AfricanV Barbery South - AfricanRJ Williams South - AfricanRM Loko South - AfricanW Burger South - AfricanT Cogang South - African

8. ACCOUNTING OFFICER

The Chief Executive Officer (CEO) of the entity for the whole of the financial year under review was, Ms. S Lewis.

Business address15 Villiers RoadCBDKimberley8300

9. CONTROLLING ENTITY

The Executive Authority of the entity is the Northern Cape Department of Economic Development and Tourism, MEC M Jack.

10. AUDITORS

Auditor General of South - Africa will continue in office for the next financial period.

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AUDIT COMMITTEE REPORT

We are pleased to present our report for the financial year ended 31/03/2016.

Audit committee members and attendance

The audit committee consists of the members listed hereunder and should meet 4 times per annum as per its approved termsof reference. During the current year 4 meetings were held.

Audit committee responsibility

The audit committee reports that it has complied with its responsibilities arising from section 55(1)(a) of the PFMA and TreasuryRegulation 27.1.

The audit committee also reports that it has adopted appropriate formal terms of reference as its audit committee charter, hasregulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.

The effectiveness of internal control

The quality of in year management and monthly/quarterly reports submitted in terms of the PFMA and the Division of RevenueAct.

Evaluation of financial statements

The audit committee has: reviewed and discussed the audited financial statements to be included in the annual report, with the Auditor-

General and the Accounting Authority; reviewed the Auditor-General of South Africa's management report and management’s response thereto; reviewed changes in accounting policies and practices; reviewed the entities compliance with legal and regulatory provisions; reviewed significant adjustments resulting from the audit.

The audit committee concur with and accept the Auditor-General of South Africa's report the financial statements, and are ofthe opinion that the audited financial statements should be accepted and read together with the report of the Auditor-General ofSouth Africa.

Internal audit

The audit committee is satisfied that the internal audit function is operating effectively and that it has addressed the riskspertinent to the entity and its audits.

6

The audit committee consists of the members listed hereunder and should meet 4 times per annum as per its approved terms of reference.

R Williams (Chairperson) C Fortune A Motlekar

During the current year 4 meetings were held.

Audit committee responsibility

The audit committee reports that it has complied with its responsibilities arising from section 55(1)(a) of the PFMA and Treasury Regulation 27.1.

The audit committee also reports that it has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.

The effectiveness of internal control

The quality of in year management and monthly/quarterly reports submitted in terms of the PFMA and the Division of Revenue Act.

Evaluation of financial statements

The audit committee has:• reviewed and discussed the audited financial statements to be included in the annual report, with the Auditor- General and

the Accounting Authority;• reviewed the Auditor-General of South Africa’s management report and management’s response thereto;• reviewed changes in accounting policies and practices;• reviewed the entities compliance with legal and regulatory provisions;• reviewed significant adjustments resulting from the audit.

The audit committee concur with and accept the Auditor-General of South Africa’s report the financial statements, and are of the opinion that the audited financial statements should be accepted and read together with the report of the Auditor-General of South Africa.

Internal audit

The audit committee is satisfied that the internal audit function is operating effectively and that it has addressed the risks pertinent to the entity and its audits.

The audit committee has met with the Auditor-General of South Africa to ensure that there are no unresolved issues.

Robert Williams Chairperson: Audit Committee

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Statement of Financial Position as at 31/03/2016

2016 2015Note(s) R R

Assets

Current Assets

Receivables from exchange transactions 3 253,752 194,089

Cash and cash equivalents 4 2,122,451 1,038,390

2,376,203 1,232,479

Non-Current Assets

Property, plant and equipment 5 532,810 562,730

Intangible assets 6 25,766 23,887

Other financial assets 21 43,889 43,889

602,465 630,506

Non-Current Assets 602,465 630,506

Current Assets 2,376,203 1,232,479Total Assets 2,978,668 1,862,985

Liabilities

Current Liabilities

Finance lease obligation 24 9,770 9,367

Payables from exchange transactions 7 972,303 572,497

Trade and Other payables (non-exchange) 25 500,000 -

1,482,073 581,864

Non-Current Liabilities

Finance lease obligation 24 1,546 7,785

Operating lease liability 22 180,626 121,716

Provisions 8 1,323,630 1,183,939

1,505,802 1,313,440

Non-Current Liabilities 1,505,802 1,313,440

Current Liabilities 1,482,073 581,864Total Liabilities 2,987,875 1,895,304

Assets 2,978,668 1,862,985

Liabilities (2,987,875) (1,895,304)Net Assets (9,207) (32,319)

Net Assets

Accumulated surplus (9,207) (32,319)

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STATEMENT OF FINANCIAL PERFORMANCE

2016 2015Note(s) R R

Revenue

Revenue from exchange transactions

Rendering of services 10 570,182 4,745,720

Interest received - investment 11 136,535 128,208

Total revenue from exchange transactions 706,717 4,873,928

Revenue from non-exchange transactions

Transfer revenue

Government grants & subsidies 10 19,302,814 17,567,000

Total revenue 20,009,531 22,440,928

Expenditure

Employee cost 13 (8,954,974) (7,954,082)

Remuneration of board members (199,142) (174,636)

Depreciation and amortisation 5&6 (112,859) (101,525)

Finance costs 12 (1,320) (442)

Lease rentals on operating lease 22 (643,673) (648,205)

Repairs and maintenance (14,904) (21,715)

General Expenses 2 (10,077,767) (13,546,747)

Total expenditure (20,004,639) (22,447,352)

- -

Gain on disposal of assets and liabilities 17,982 12,051

Surplus for the year 22,874 5,627

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STATEMENT OF CHANGES IN NET ASSETS

Accumulatedsurplus

Total netassets

R R

Balance at 01/04/2014 (37,946) (37,946)Changes in net assetsSurplus for the year - Restated 5,627 5,627

Total changes 5,627 5,627

Balance at 01/04/2015 (32,081) (32,081)Changes in net assetsSurplus for the year 22,874 22,874

Total changes 22,874 22,874

Balance at 31/03/2016 (9,207) (9,207)

Note(s)

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Cash Flow Statement

2016 2015Note(s) R R

Cash flows from operating activities

Receipts

Cash receipts from customers 20,317,313 22,346,388

Interest income 136,535 128,208

20,453,848 22,474,596

Payments

Cash Paid to Suppliers & Employees (19,295,795) (28,001,376)

Finance Costs (1,320) (447)

(19,297,115) (28,001,823)

Total receipts 20,453,848 22,474,596

Total payments (19,297,115) (28,001,823)

Net cash flows from operating activities 9 1,156,733 (5,527,227)

Cash flows from investing activities

Purchase of property, plant and equipment 5 (95,302) (69,080)

Proceeds from sale of property, plant and equipment 5 40,019 11,092

Purchase of other intangible assets 6 (11,553) (12,003)

Purchase of financial assets - -

Net cash flows from investing activities (66,836) (69,991)

Cash flows from financing activities

Finance lease payments (5,836) 12,018

Net increase/(decrease) in cash and cash equivalents 1,084,061 (5,585,200)

Cash and cash equivalents at the beginning of the year 1,038,390 6,623,590

Cash and cash equivalents at the end of the year 4 2,122,451 1,038,390

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ACCOUNTING POLICIES

1. Presentation of Financial Statements

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice(GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act(Act 1 of 1999).

These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical costconvention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or conditionswere developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standardof GRAP.

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ACCOUNTING POLICIES

A summary of the significant accounting policies, which have been consistently applied in the preparation of these financialstatements, are disclosed below.

The following Standards of GRAP have been issued and are effective:

GRAP 1 Presentation of financial statementsGRAP 2 Cash flow statementsGRAP 3 Accounting policies, changes in accounting estimates and errorsGRAP 4 The effect of changes in foreign exchange ratesGRAP 5 Borrowing CostGRAP 6 Consolidated and separate financial statements GRAP 7 Investments in associatesGRAP 8 Interest in joint venturesGRAP 9 Revenue from exchange transactionsGRAP 10 Financial reporting in a Hyperinflationary EconomiesGRAP 11 Construction ContractsGRAP 12 InventoriesGRAP 13 LeasesGRAP 14 Events after reporting dateGRAP 16 Investment propertyGRAP 17 Property, Plant and EquipmentGRAP 18 Segment Reporting GRAP 19 Provisions, Contingent liabilities and assetsGRAP 20 Related Parties GRAP 21 Impairment of Non-cash-generating assetsGRAP 23 Revenue from Non-Exchange transactionsGRAP 24 Presentation of budget information in the financial statements GRAP 25 Employee benefitsGRAP 26 Impairment of Cash-generating assetsGRAP 27 AgricultureGRAP 31 Intangible AssetsGRAP 103 Heritage assets GRAP 104 Financial InstrumentsGRAP 100 Non – current assets held for sale and Discontinued operationsGRAP 105 Transfer of functions between entities under common controlGRAP 106 Transfer of functions between entities not under common controlGRAP 107 Mergers

Standards, Amendments to Standards and interpretations issued but not yet effective

The following GRAP standards and interpretations have been issued but are not yet effective and have not been early adoptedby the entity:

GRAP 32: Service Concession Arrangements: Grantor - issued August 2013;GRAP 108: Statutory Receivables - issued September 2013; andIGRAP 17: Service Concession Arrangements where a Grantor controls a Significant Residual Interest in an Asset.

All other standards as listed above will be effective for financial year's beginning on or after 01 April 2016 as announced by theMinister of Finance.

Nature of impending changes in accounting policy:GRAP 32, Service Concession Arrangements: Grantor; GRAP 108: Statutory Receivables and IGRAP 17: Service ConcessionArrangements where a Grantor controls a Significant Residual Interest in an Asset.

The effectiveness of these standards will not have an effect on the financial statements / accounting policies of the entity, asthe entity does not have any related transactions or activities that falls within the scope of these standards.

Impact on the entity's financial statements once implimented: GRAP 32, Service Concession Arrangements: Grantor; GRAP 108: Statutory Receivables and IGRAP 17: Service ConcessionArrangements where a Grantor controls a Significant Residual Interest in an Asset.

The effectiveness of these standards will not have impact financial statements of the entity, as the entity does not have anyrelated transactions or activities that falls within the scope of these standards.

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ACCOUNTING POLICIES

These accounting policies are consistent with the previous period.

1.1 Presentation Currency

These annual financial statements are presented in South African Rand rounded off to the nearest Rand, which is thefunctional currency of the entity.

1.2 Going concern assumption

These financial statements have been prepared based on the expectation that the entity will continue to operate as a goingconcern for at least the next 12 months.

1.3 Significant judgements and sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affect the amountsrepresented in the financial statements and related disclosures. Use of available information and the application of judgementis inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material tothe financial statements. Significant judgements include:

Trade receivables / Held to maturity investments and/or loans and receivables

The entity assesses its trade receivables and loans and receivables for impairment at the end of each reporting period. Indetermining whether an impairment loss should be recorded in surplus or deficit, the surplus makes judgements as to whetherthere is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

The impairment for trade receivables and loans and receivables is calculated on a portfolio basis, based on historical lossratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date thatcorrelate with defaults on the portfolio. These annual loss ratios are applied to loan balances in the portfolio and scaled to theestimated loss emergence period.

Fair value estimation

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at thecurrent market interest rate that is available to the entity for similar financial instruments.

Impairment testing

The entity reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carryingamount may not be recoverable. In addition, goodwill is tested on an annual basis for impairment. Assets are grouped at thelowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there areindications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets.Expected future cash flows used to determine the value in use of goodwill and tangible assets are inherently uncertain andcould materially change over time.

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosure ofthese estimates of provisions are included in note 8 - Provisions.

Allowance for doubtful debts

On debtors an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. Theimpairment is measured as the difference between the debtors carrying amount and the present value of estimated future cashflows discounted at the effective interest rate, computed at initial recognition.

1.4 Conditional grants and receipts

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the entity hascomplied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditionsor obligations have not been met a liability is recognised.

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ACCOUNTING POLICIES

1.5 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in theproduction or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used duringmore than one period.

The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic benefits or service potential associated with the item will flow to the entity; and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to thelocation and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts andrebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or acombination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If theacquired item's fair value was not determinable, it's deemed cost is the carrying amount of the asset(s) given up.

When significant components of an item of property, plant and equipment have different useful lives, they are accounted for asseparate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurredsubsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item ofproperty, plant and equipment, the carrying amount of the replaced part is derecognised.

The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is alsoincluded in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where theobligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the locationand condition necessary for it to be capable of operating in the manner intended by management.

Items such as spare parts, standby equipment and servicing equipment are recognised when they meet the definition ofproperty, plant and equipment.

Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet therecognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaininginspection costs from the previous inspection are derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimatedresidual value.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Furniture and fixtures Straight line 12 *Office equipment Straight line 15IT equipment Straight line 5**

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting date. Ifthe expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unlessexpectations differ from the previous estimate. * Furniture and fixtures includes certain assets that were assesed to have anaverage life of only 5 years as a result of the nature of the asset. **IT Equipment includes certain assets that were assesed tohave an average life of 15 years as a result of the nature of the asset. These assets have been depreciated over the reassedusefull life.

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ACCOUNTING POLICIES

1.5 Property, plant and equipment (continued)

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item isdepreciated separately.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount ofanother asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economicbenefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit whenthe item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment isdetermined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.6 Related parties

Individuals as well as their close family members, and / or entities are related parties if one party has the ability, directly orindirectly, to control or jointly control the other party or exercise significant influence over the other party in making financial and/ or operating decisions. Key management personnel is defined as the Chief Executive Officer, Chief Financial Officer and allother managers reporting directly to the Chief Executive Officer or as designated by the Chief Executive Officer.

1.7 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and thedate when the financial statements are authorised for issue. Two types of events can be identified:

those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date);and

those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reportingdate).

The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date oncethe event occurred.

The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannotbe made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of userstaken on the basis of the financial statements.

1.8 Intangible assets

An asset is identifiable if it either: is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or

exchanged, either individually or together with a related contract, identifiable assets or liability, regardless ofwhether the entity intends to do so; or

arises from binding arrangements (including rights from contracts), regardless of whether those rights aretransferable or separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were inthe form of a contract.

An intangible asset is recognised when: it is probable that the expected future economic benefits or service potential that are attributable to the asset will

flow to the entity; and the cost or fair value of the asset can be measured reliably.

The entity assesses the probability of expected future economic benefits or service potential using reasonable and supportableassumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life ofthe asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measuredat its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

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1.8 Intangible assets (continued)

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeablelimit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is notprovided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that theasset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator thatthe asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised overits useful life.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful lifeComputer software, other 5 years

1.9 Changes in accounting policies, estimates and errors

Changes in accounting policies that are effected by management have been applied retrospectively in accordance with GRAP3 requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect ofthe change in policy. In such cases the public entity shall restate the opening balances of assets, liabilities and net assets forthe earliest period for which retrospective restatement is practicable.

Changes in accounting estimates are applied retrospectively in accordance with GRAP 3 requirements. Details of changes inaccounting estimates are disclosed in the notes to the annual financial statements where applicable.

Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with GRAP 3requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of theerror. In such cases the public entity shall restate the opening balances of assets, liabilities and net assets for the earliestperiod for which retrospective restatement is practicable.

1.10 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

1.11 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residualinterest of another entity.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability ismeasured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effectiveinterest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly orthrough the use of an allowance account) for impairment or uncollectibility.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to dischargean obligation.

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inforeign exchange rates.

Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement offinancial position.

A derivative is a financial instrument or other contract with all three of the following characteristics: Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price,

foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case ofa non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’).

It requires no initial net investment or an initial net investment that is smaller than would be required for other typesof contracts that would be expected to have a similar response to changes in market factors.

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1.11 Financial instruments (continued) It is settled at a future date.

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or group offinancial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period. Theeffective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life ofthe financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financialliability. When calculating the effective interest rate, an entity shall estimate cash flows considering all contractual terms of thefinancial instrument (for example, prepayment, call and similar options) but shall not consider future credit losses. Thecalculation includes all fees and points paid or received between parties to the contract that are an integral part of the effectiveinterest rate (see the Standard of GRAP on Revenue from Exchange Transactions), transaction costs, and all other premiumsor discounts. There is a presumption that the cash flows and the expected life of a group of similar financial instruments can beestimated reliably. However, in those rare cases when it is not possible to reliably estimate the cash flows or the expected lifeof a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the fullcontractual term of the financial instrument (or group of financial instruments).

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties inan arm’s length transaction.

A financial asset is: cash; a residual interest of another entity; or a contractual right to:

- receive cash or another financial asset from another entity; or- exchange financial assets or financial liabilities with another entity under conditions that are potentiallyfavourable to the entity.

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for aloss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of adebt instrument.

A financial liability is any liability that is a contractual obligation to: deliver cash or another financial asset to another entity; or exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket interest rates.

Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financialliabilities that are settled by delivering cash or another financial asset.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes inmarket prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factorsspecific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in themarket.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.

A residual interest is any contract that manifests an interest in the assets of an entity after deducting all of its liabilities. Aresidual interest includes contributions from owners, which may be shown as:

equity instruments or similar forms of unitised capital; a formal designation of a transfer of resources (or a class of such transfers) by the parties to the transaction as

forming part of an entity’s net assets, either before the contribution occurs or at the time of the contribution; or a formal agreement, in relation to the contribution, establishing or increasing an existing financial interest in the net

assets of an entity.

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset orfinancial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued ordisposed of the financial instrument.

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1.11 Financial instruments (continued)

Financial instruments at amortised cost are non-derivative financial assets or non-derivative financial liabilities that have fixedor determinable payments, excluding those instruments that:

the entity designates at fair value at initial recognition; or are held for trading.

Financial instruments at cost are investments in residual interests that do not have a quoted market price in an active market,and whose fair value cannot be reliably measured.

Financial instruments at fair value comprise financial assets or financial liabilities that are: derivatives; combined instruments that are designated at fair value; instruments held for trading. A financial instrument is held for trading if:

- it is acquired or incurred principally for the purpose of selling or repurchasing it in the near-term; or- on initial recognition it is part of a portfolio of identified financial instruments that are managed together and forwhich there is evidence of a recent actual pattern of short term profit-taking;- non-derivative financial assets or financial liabilities with fixed or determinable payments that are designated atfair value at initial recognition; and- financial instruments that do not meet the definition of financial instruments at amortised cost or financialinstruments at cost.

Classification

The entity has the following types of financial assets (classes and category) as reflected on the face of the statement offinancial position or in the notes thereto:

`

Class CategoryReceivables from Exchange Transactions Financial asset measured at amortised costCash and cash equivalents Financial asset measured at amortised costOther financial assets Financial asset measured at amortised cost

The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement offinancial position or in the notes thereto:

`

Class CategoryFinance leases Financial liability measured at amortised costTrade payables from exchange and non - exchangetransactions

Financial liability measured at amortised cost

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes aparty to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directlyattributable to the acquisition or issue of the financial asset or financial liability.

The entity first assesses whether the substance of a concessionary loan is in fact a loan. On initial recognition, the entityanalyses a concessionary loan into its component parts and accounts for each component separately. The entity accounts forthat part of a concessionary loan that is:

a social benefit in accordance with the Framework for the Preparation and Presentation of Financial Statements,where it is the issuer of the loan; or

non-exchange revenue, in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions(Taxes and Transfers), where it is the recipient of the loan.

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Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories: Financial instruments at fair value. Financial instruments at amortised cost. Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Fair value measurement considerations

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, theentity establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish what thetransaction price would have been on the measurement date in an arm’s length exchange motivated by normal operatingconsiderations. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willingparties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flowanalysis and option pricing models. If there is a valuation technique commonly used by market participants to price theinstrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual markettransactions, the entity uses that technique. The chosen valuation technique makes maximum use of market inputs and reliesas little as possible on entity-specific inputs. It incorporates all factors that market participants would consider in setting a priceand is consistent with accepted economic methodologies for pricing financial instruments. Periodically, an entity calibrates thevaluation technique and tests it for validity using prices from any observable current market transactions in the same instrument(i.e. without modification or repackaging) or based on any available observable market data.

The fair value of a financial liability with a demand feature (e.g. a demand deposit) is not less than the amount payable ondemand, discounted from the first date that the amount could be required to be paid.

Reclassification

The entity does not reclassify a financial instrument while it is issued or held unless it is: combined instrument that is required to be measured at fair value; or an investment in a residual interest that meets the requirements for reclassification.

Where the entity cannot reliably measure the fair value of an embedded derivative that has been separated from a hostcontract that is a financial instrument at a subsequent reporting date, it measures the combined instrument at fair value. Thisrequires a reclassification of the instrument from amortised cost or cost to fair value.

If fair value can no longer be measured reliably for an investment in a residual interest measured at fair value, the entityreclassifies the investment from fair value to cost. The carrying amount at the date that fair value is no longer availablebecomes the cost.

If a reliable measure becomes available for an investment in a residual interest for which a measure was previously notavailable, and the instrument would have been required to be measured at fair value, the entity reclassifies the instrument fromcost to fair value.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value isrecognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficitwhen the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets

The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or group offinancial assets is impaired.

Financial assets measured at amortised cost:

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If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, theamount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimatedfuture cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s originaleffective interest rate. The carrying amount of the asset is reduced directly OR through the use of an allowance account. Theamount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to anevent occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly OR byadjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds what theamortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amountof the reversal is recognised in surplus or deficit.

Financial assets measured at cost:

If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is notmeasured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured asthe difference between the carrying amount of the financial asset and the present value of estimated future cash flowsdiscounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed.

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Derecognition

Financial assets

The entity derecognises financial assets using trade date accounting.

The entity derecognises a financial asset only when: the contractual rights to the cash flows from the financial asset expire, are settled or waived; the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has

transferred control of the asset to another party and the other party has the practical ability to sell the asset in itsentirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to imposeadditional restrictions on the transfer. In this case, the entity :- derecognise the asset; and- recognise separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred onthe basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair valuesat that date. Any difference between the consideration received and the amounts recognised and derecognised is recognisedin surplus or deficit in the period of the transfer.

If the entity transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the right to servicethe financial asset for a fee, it recognise either a servicing asset or a servicing liability for that servicing contract. If the fee to bereceived is not expected to compensate the entity adequately for performing the servicing, a servicing liability for the servicingobligation is recognised at its fair value. If the fee to be received is expected to be more than adequate compensation for theservicing, a servicing asset is recognised for the servicing right at an amount determined on the basis of an allocation of thecarrying amount of the larger financial asset.

If, as a result of a transfer, a financial asset is derecognised in its entirety but the transfer results in the entity obtaining a newfinancial asset or assuming a new financial liability, or a servicing liability, the entity recognise the new financial asset, financialliability or servicing liability at fair value.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of theconsideration received is recognised in surplus or deficit.

If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, theprevious carrying amount of the larger financial asset is allocated between the part that continues to be recognised and the partthat is derecognised, based on the relative fair values of those parts, on the date of the transfer. For this purpose, a retainedservicing asset is treated as a part that continues to be recognised. The difference between the carrying amount allocated tothe part derecognised and the sum of the consideration received for the part derecognised is recognised in surplus or deficit.

If a transfer does not result in derecognition because the entity has retained substantially all the risks and rewards of ownershipof the transferred asset, the entity continue to recognise the transferred asset in its entirety and recognise a financial liability forthe consideration received. In subsequent periods, the entity recognises any revenue on the transferred asset and any expenseincurred on the financial liability. Neither the asset, and the associated liability nor the revenue, and the associated expensesare offset.

Financial liabilities

The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it isextinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for ashaving extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modificationof the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liabilityand having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred toanother party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised insurplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transactionare accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes andTransfers).

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Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense insurplus or deficit.

Dividends or similar distributions relating to a financial instrument or a component that is a financial liability is recognised asrevenue or expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue orexpense in surplus or deficit.

Distributions to holders of residual interests are recognised by the entity directly in net assets. Transaction costs incurred onresidual interests are accounted for as a deduction from net assets. Income tax [where applicable] relating to distributions toholders of residual interests and to transaction costs incurred on residual interests are accounted for in accordance with theInternational Accounting Standard on Income Taxes.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial positionwhen the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a netbasis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the transferredasset and the associated liability.

1.12 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease isclassified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair valueof the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor isincluded in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The financecharge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balanceof the liability.

Any contingent rents are expensed in the period in which they are incurred.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference betweenthe amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1.13 Impairment of non-cash-generating assets

Cash-generating assets are assets managed with the objective of generating a commercial return. An asset generates acommercial return when it is deployed in a manner consistent with that adopted by a profit-oriented entity.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognitionof the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting anyaccumulated depreciation and accumulated impairment losses thereon.

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1.13 Impairment of non-cash-generating assets (continued)

A cash-generating unit is the smallest identifiable group of assets held with the primary objective of generating a commercialreturn that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets orgroups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income taxexpense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction betweenknowledgeable, willing parties, less the costs of disposal.

Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use.

Useful life is either:(a) the period of time over which an asset is expected to be used by the entity; or(b) the number of production or similar units expected to be obtained from the asset by the entity.

Identification

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired.If any such indication exists, the entity estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also test a non-cash-generating intangible asset with anindefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing itscarrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If anintangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairmentbefore the end of the current reporting period.

Value in use

Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service potential.

The present value of the remaining service potential of a non-cash-generating assets is determined using the followingapproach:

Depreciated replacement cost approach

The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciatedreplacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. Thiscost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication)of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured asthe reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis ofsuch cost, to reflect the already consumed or expired service potential of the asset.

The replacement cost and reproduction cost of an asset is determined on an “optimised” basis. The rationale is that the entitywould not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned orovercapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides.Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services theasset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflectsthe service potential required of the asset.

Restoration cost approach

Restoration cost is the cost of restoring the service potential of an asset to its pre-impaired level. The present value of theremaining service potential of the asset is determined by subtracting the estimated restoration cost of the asset from thecurrent cost of replacing the remaining service potential of the asset before impairment. The latter cost is determined as thedepreciated reproduction or replacement cost of the asset, whichever is lower.

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1.13 Impairment of non-cash-generating assets (continued)

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of theasset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset towhich it relates, the entity recognises a liability only to the extent that is a requirement in the Standards of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset isadjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any),on a systematic basis over its remaining useful life.

Reversal of an impairment loss

The entity assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods fora non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates therecoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in theestimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. Thecarrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss.The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carryingamount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for theasset in prior periods.

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating assetis adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any),on a systematic basis over its remaining useful life.

1.14 Employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

Termination benefits are employee benefits payable as a result of either: an entity’s decision to terminate an employee’s employment before the normal retirement date; or an employee’s decision to accept voluntary redundancy in exchange for those benefits.

A constructive obligation is an obligation that derives from an entity’s actions where by an established pattern of past practice,published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certainresponsibilities and as a result, the entity has created a valid expectation on the part of those other parties that it will dischargethose responsibilities.

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1.14 Employee benefits (continued)

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelvemonths after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as: wages, salaries and social security contributions; short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the

absences is due to be settled within twelve months after the end of the reporting period in which the employeesrender the related employee service;

bonus, incentive and performance related payments payable within twelve months after the end of the reportingperiod in which the employees render the related service; and

non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, carsand cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognise the undiscounted amountof short-term employee benefits expected to be paid in exchange for that service:

as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds theundiscounted amount of the benefits, the entity recognise that excess as an asset (prepaid expense) to the extentthat the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense as the employees render services that increasetheir entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measure the expectedcost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unusedentitlement that has accumulated at the reporting date.

The entity recognise the expected cost of bonus, incentive and performance related payments when the entity has a presentlegal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation canbe made. A present obligation exists when the entity has no realistic alternative but to make the payments.

1.15 Provisions and contingencies

Provisions are recognised when: the entity has a present obligation as a result of a past event; it is probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; and a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at thereporting date.

Where the effect of time value of money is material, the amount of a provision is the present value of the expendituresexpected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific tothe liability.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, thereimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settlesthe obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does notexceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it isno longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle theobligation.

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. Thisincrease is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

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1.15 Provisions and contingencies (continued)

Provisions are not recognised for future operating deficits.

If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised andmeasured as a provision.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 18.

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for aloss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of adebt instrument.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions.

The entity recognises a provision for financial guarantees and loan commitments when it is probable that an outflow ofresources embodying economic benefits and service potential will be required to settle the obligation and a reliable estimate ofthe obligation can be made.

Determining whether an outflow of resources is probable in relation to financial guarantees requires judgement. Indications thatan outflow of resources may be probable are:

financial difficulty of the debtor; defaults or delinquencies in interest and capital repayments by the debtor; breaches of the terms of the debt instrument that result in it being payable earlier than the agreed term and the

ability of the debtor to settle its obligation on the amended terms; and a decline in prevailing economic circumstances (e.g. high interest rates, inflation and unemployment) that impact on

the ability of entities to repay their obligations.

Where a fee is received by the entity for issuing a financial guarantee and/or where a fee is charged on loan commitments, it isconsidered in determining the best estimate of the amount required to settle the obligation at reporting date. Where a fee ischarged and the entity considers that an outflow of economic resources is probable, an entity recognises the obligation at thehigher of:

the amount determined using in the Standard of GRAP on Provisions, Contingent Liabilities and Contingent Assets;and

the amount of the fee initially recognised less, where appropriate, cumulative amortisation recognised in accordancewith the Standard of GRAP on Revenue from Exchange Transactions.

1.16 Commitments

Items are classified as commitments when an entity has committed itself to future transactions that will normally result in theoutflow of cash.

Disclosures are required in respect of unrecognised contractual commitments.

Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the financialstatements, if both the following criteria are met:

Contracts should be non-cancellable or only cancellable at significant cost (for example, contracts for computer orbuilding maintenance services); and

Contracts should relate to something other than the routine, steady, state business of the entity – therefore salarycommitments relating to employment contracts or social security benefit commitments are excluded.

1.17 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in anincrease in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly givesapproximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties inan arm’s length transaction.

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1.17 Revenue from exchange transactions (continued)

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated withthe transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcomeof a transaction can be estimated reliably when all the following conditions are satisfied:

the amount of revenue can be measured reliably; it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; the stage of completion of the transaction at the reporting date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on astraight line basis over the specified time frame unless there is evidence that some other method better represents the stage ofcompletion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until thesignificant act is executed.

When the outcome of the tran€saction involving the rendering of services cannot be estimated reliably, revenue is recognisedonly to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage ofcompletion is determined by the proportion that costs incurred to date bear to the total estimated costs of the transaction.

Interest, royalties and dividends

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends is recognised when: It is probable that the economic benefits or service potential associated with the transaction will flow to the entity,

and The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Service fees included in the price of the product are recognised as revenue over the period during which the service isperformed.

1.18 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, whichrepresents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied inthe asset is required to be consumed by the recipient as specified or future economic benefits or service potential must bereturned to the transferor.

Control of an asset arise when the entity can use or otherwise benefit from the asset in pursuit of its objectives and can excludeor otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, anddirectly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity inexchange.

Expenses paid through the tax system are amounts that are available to beneficiaries regardless of whether or not they paytaxes.

Fines are economic benefits or service potential received or receivable by entities, as determined by a court or other lawenforcement body, as a consequence of the breach of laws or regulations.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity eitherreceives value from another entity without directly giving approximately equal value in exchange, or gives value to anotherentity without directly receiving approximately equal value in exchange.

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ACCOUNTING POLICIES

1.18 Revenue from non-exchange transactions (continued)

Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used,but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployedas specified.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon the use of atransferred asset by entities external to the reporting entity.

Tax expenditures are preferential provisions of the tax law that provide certain taxpayers with concessions that are not availableto others.

The taxable event is the event that the government, legislature or other authority has determined will be subject to taxation.

Taxes are economic benefits or service potential compulsorily paid or payable to entities, in accordance with laws and orregulations, established to provide revenue to government. Taxes do not include fines or other penalties imposed for breachesof the law.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extentthat a liability is also recognised in respect of the same inflow.

As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchangetransaction recognised as an asset, it reduces the carrying amount of the liability recognised and recognises an amount ofrevenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to theamount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability.Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle theobligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability issubsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability isrecognised as revenue.

Transfers

Apart from Services in kind, which are not recognised, the entity recognises an asset in respect of transfers when thetransferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

The entity recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfythe criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

Gifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the futureeconomic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably.

1.19 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.

1.20 Comparative information

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

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1.21 Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care beenexercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financialperformance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of theexpense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.22 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred incontravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or(c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA requiresthe following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial year and which was condoned before yearend and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditureregister. In such an instance, no further action is also required with the exception of updating the note to the financialstatements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is beingawaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception ofupdating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, theregister and the disclosure note to the financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by theNational Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for theirregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediatesteps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accountingofficer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to thefinancial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has notbeen condoned and no person is liable in law, the expenditure related thereto must remain against the relevantprogramme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in theirregular expenditure register.

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Part E


Notes to the Financial Statements

2016 2015R R

2. General expenses

Marketing and advertising 7,988,508 11,767,248

Assessment rates & municipal charges -Third party 54,311 37,946Audit and other Fees 804,284 598,607Bank charges 15,582 15,197Cleaning 2,196 190Insurance 62,932 47,386Community development and training - 6,891IT expenses 36,641 46,859Postage and courier 2,060 8,081Printing and stationery 41,524 48,448Security costs - 2,820HR and organizational development 245,126 135,395Subscriptions and membership fees 107,804 14,081Telephone and fax 235,382 216,318Travel and accomodation 64,027 62,447Annual report 65,532 73,067Board and sub-committe expenses 320,569 431,351General expenses 31,289 34,415

10,077,767 13,546,747

3. Receivables from exchange transactions

Trade receivables 196,605 133,156Other receivables 57,147 60,933

253,752 194,089

Trade and other receivables pledged as security

No Trade and other receivables were pledged as security during the financial year.

The carrying amount reported in the statement of financial position for trade and other receivables approximate fair value dueto the short time period between initiation and settlement thereof. The effect of discounting is not material.

Trade and other receivables past due but not impaired

Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31/03/2016, R249,773 (2015: R 91,372) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows:

4 months past due 253,752 91,372

Trade and other receivables impaired

As of 31/03/2016, trade and other receivables of R - (2015: R -) were impaired and provided for.

The amount of the provision was R (369) as of 31/03/2016 (2015: R (369)).

The ageing of these loans is as follows:

The carrying amount of trade and other receivables are denominated in the following currencies:

Rand 253,752 194,089

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2016 2015R R

3. Receivables from exchange transactions (continued)

Reconciliation of provision for impairment of trade and other receivables

Opening balance 369 193,161Amounts written off as uncollectible - (192,792)

369 369

4. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand 387 183Bank balances 2,122,064 1,038,207

2,122,451 1,038,390

Cash and cash equivalents held by the entity that are not available for use bythe economic entity

- -

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired canbe assessed by reference to external credit ratings (if available) or historical information about counterparty default rates:

Credit ratingAAA 2,122,451 1,038,390

5. Property, plant and equipment

2016 2015

Cost /Valuation

Accumulateddepreciation

andaccumulatedimpairment

Carrying value Cost /Valuation

Accumulateddepreciation


Carrying value

Furniture and fixtures 428,605 (137,713) 290,892 437,851 (137,713) 300,138Office equipment 215,706 (88,569) 127,137 190,539 (50,803) 139,736IT equipment 239,979 (125,198) 114,781 227,102 (104,246) 122,856

Total 884,290 (351,480) 532,810 855,492 (292,762) 562,730

Reconciliation of property, plant and equipment - 2016

Openingbalance

Additions Disposals Depreciation Total

Furniture and fixtures 300,138 20,780 - (30,026) 290,892Office equipment 139,736 25,167 - (37,766) 127,137IT equipment 122,856 49,355 (22,037) (35,393) 114,781

562,730 95,302 (22,037) (103,185) 532,810

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2016 2015R R

5. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2015

Openingbalance

Additions Disposals Depreciation Total

Furniture and fixtures 323,303 4,512 - (27,677) 300,138Office equipment 146,303 25,380 (430) (31,517) 139,736IT equipment 112,221 39,188 (966) (27,587) 122,856

581,827 69,080 (1,396) (86,781) 562,730

Pledged as security

Finance lease assets with a carrying value of R10 985 (2014/15: R17 184) have been pledged for security for the finance leaseobligation as disclosed in note 21.

Assets subject to finance lease (Net carrying amount)

Office equipment 10,985 17,184

A register containing the information required by the Public Finance Management Act is available for inspection at theregistered office of the entity.

6. Intangible assets

2016 2015

Cost /Valuation

Accumulatedamortisation


Carrying value Cost /Valuation

Accumulatedamortisation


Carrying value

Computer software 168,089 (142,323) 25,766 156,536 (132,649) 23,887

I

Reconciliation of intangible assets - 2016

Openingbalance

Additions Amortisation Total

Computer software 23,887 11,553 (9,674) 25,766

Reconciliation of intangible assets - 2015

Openingbalance

Additions Amortisation Total

Computer software 26,631 12,003 (14,747) 23,887

7. Payables from exchange transactions

Trade payables 333,780 18,298Other payables 263,841 259,762Short term Employee Benefit: Thirteen Cheque 134,483 116,445Short term Employee Benefit: Leave 240,199 177,992

972,303 572,497

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2016 2015R R

7. Payables from exchange transactions (continued)

The carrying amount reported in the balance sheet for trade and other payables approximate fair value due to the short timeperiod between initiation and settlement thereof. The effect of discounting is not material.

The carrying amount of trade and other payables are denominated in the following currencies:

Rand 972,303 572,497

8. Provisions

Reconciliation of provisions - 2016

OpeningBalance

Additions Total

Employee Benefit Cost 1,183,939 139,691 1,323,630

Reconciliation of provisions - 2015

OpeningBalance

Additions Total

Employee Benefit Cost 1,119,872 64,067 1,183,939

9. Cash generated from (used in) operations

Surplus 22,874 5,627Adjustments for:Depreciation and amortisation 112,859 101,525Loss on sale of assets and liabilities (17,982) (12,051)Movements in provisions 219,936 85,104Other non-cash items 59,147 112,016Changes in working capital:Receivables from exchange transactions (55,683) 33,663Trade and other payables from Non-Exchange transactions 500,000 -Payables from exchange transactions 315,582 (153,111)Taxes and transfers payable (non exchange) - (5,700,000)

1,156,733 (5,527,227)

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2016 2015R R

10. Revenue: Non - Exchange and Exchange Revenue

Northern Cape Department of Economic Development and Tourism 19,041,118 17,232,000Contributions - Government Entities 261,696 335,000

19,302,814 17,567,000

10.1 Advertising Campaing Contributions

Income - Namibia 50,000 60,000Income - Indaba 204,664 227,380Income - Getaway 70,180 110,840Contribution Advertising Campaign 3,938 60,000Income - Meetings Africa - 5,000Income - Tourism Month 10,000 3,050,000Income - Beeld 76,400 60,000Income - N12 50,000 60,000Income - WTM Africa 5,000 -Income - Media Tour 65,000 -Income - Amageza Rallye 35,000 -Income - NDT - 1,112,500

Total Exchange Revenue from Advertising and campaing contributions 570,182 4,745,720

11. Investment revenue

Interest revenueBank 136,535 128,208

- -136,535 128,208

The amount included in Investment revenue arising from exchange transactions amounted to R 136,535 (2014/15: R128,208).

12. Finance costs

Finance leases 1,320 442

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2016 2015R R

13. Employee related costs

Basic Salary 6,578,415 5,992,321Medical aid - company contributions 274,063 155,342UIF 28,903 29,504Leave pay provision charge 201,899 77,514Provident fund 1,042,377 968,531Bonusses 393,454 354,573Travel, motor car, accommodation, subsistence and other allowances 24,887 8,065Car allowance 72,000 74,286Housing benefits and allowances 97,200 95,400Performance bonusses 241,776 198,546

8,954,974 7,954,082

Remuneration of Chief Executive Officer

Annual Remuneration 825,375 776,994Annual Bonus 68,218 64,719Travel Allowance - 11,173Subsistance - Non Taxable 39,684 -Provident Fund 223,115 216,167Cash Allowance 57,084 55,473

1,213,476 1,124,526

Remuneration of Chief Finance Officer

Annual Remuneration 477,761 443,338Annual and Performance Bonus 69,037 64,417Travel Allowance 4,108 5,659Cash Allowance 173,227 163,201Provident Fund 128,922 122,944Subsistance - Non Taxable 65,399 -

918,454 799,559

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2016 2015R R

14. Remuneration of other key management

General Manager - HRBasic Salary 344,167 312,893Annual and Performance Bonus 49,811 45,790Travel Allownace 3,313 3,469Cash Allowance 124,112 115,060Provident Fund 92,518 86,963Subsistence - Non Taxable 1,343 -

615,264 564,175

General Manager - OfficeBasic Salary 344,317 316,118Annual and Performance Bonus 49,811 45,790Trevel Allowance - 1,142Cash Allowance 124,112 115,061Provident Fund 92,518 86,963Subsistence - Non Taxable 9,726 -

620,484 565,074

General Manager - MarketingBasic Salary 646,664 589,425Annual and Performance Bonus 33,756 31,313Travel Allowance 8,707 15,497Cash Allowance 95,536 88,358Provident Fund 172,108 164,007Subsistence - Non Taxable 59,576 -

1,016,347 888,600

General Manager - MiceBasic Salary 476,925 444,243Annual and Performance Bonus 69,037 64,417Travel Allowance 80,500 89,764Cash Allowance 101,227 91,201Provident Fund 128,922 122,944Subsistence - Non Taxable 94,350 -

950,961 812,569

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2016 2015R R

15. Risk management

Interest rate risk

As the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are substantiallyindependent of changes in market interest rates.

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entityonly deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on anongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, riskcontrol assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.Individual risk limits are set based on internal or external ratings in accordance with limits set by the board.

Financial assets exposed to credit risk at year end were as follows:

`

Financial instrument 2016 2015Receivables from Exchange Transaction 253,752 194,089Other Financial Assets 43,889 43,889Cash and cash equivalents 2,122,451 1,038,390

Liquidity risk

The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity riskthrough an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.

The table below analyses the entity’s financial liabilities and net-settled derivative financial liabilities into relevant maturitygroupings based on the remaining period at the statement of financial position to the contractual maturity date. The amountsdisclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carryingbalances as the impact of discounting is not significant.

At 31/03/2016 Less than 1year

Between 1and 2 years


Over 5 years

Payables From Exchange Transactions 972,303 - - -Fianace Lease Obligations 9,770 1,546 - -Trade and other payables from Non - ExchangeTransactions

500,000 - - -

At 31/03/2015 Less than 1year



Over 5 years

Payables From Exchange Transactions 572,497 - - -Fianace Lease Obligations 9,367 7,785 - -

Financial risk management

The entity’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk,cash flow interest rate risk and price risk), credit risk and liquidity risk.

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2016 2015R R

16. Commitments

This committed expenditure relates to property and will be financed by available bank facilities, retained surpluses, rights issueof shares, issue of debentures, mortgage facilities, existing cash resources, funds internally generated, etc.

The following contracts and orders were approved before year end and are payable after year end :

Commitments - approved and contracted4,856,456 7,269,336

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2016 2015R R

17. Related parties

`

RelationshipsBoard members Refer to members' report noteDepartment with significant control Northern Cape Department of Economic

Development and TourismKey management Refer to note 13 and 14Entities under common control Northern Cape Liquor Board

Northern Cape Gambling Board

Related party balances

Amounts included in Trade receivable (Trade Payable) regarding related partiesNorthern Cape Department of Economic Development and Tourism - 72,902Northern Cape Liquor Board 10,000 10,000Northern Cape Gambling Board 10,000 10,000

Related party transactions

Revenue recieved from related partiesGrants - Department of Economic Development and Tourism 19,041,118 17,232,000Partnership Projects 261,696 335,000

Transactions with board membersRemuneration 199,535 163,336Travel and Subsistence 119,437 171,724Goods and Services 16,736 14,006

Compensation of Key ManagementSalaries and Employee Benefits (refer to Note 13 and 14) 5,334,985 4,754,503

40



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Part E

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Figures in Rand

18. Contingencies

The entity do not have any contingent assets or liabilities on 31 March 2016, that will require disclosure in terms of GRAP 19,Provisions, Contingent Liabilities and Contingent Assets.

19. Correction of prior period errors

Certain comparative figures have been adjusted as a result of a prior period error.

The operating lease liability of 2014/15 have previously not been accurately recorded, resulting in the liability being understatedby R9 700. The error have been retrospectively corrected in terms of the requirements of GRAP 3, Accounting policies,changes in accounting estimates and errors.

Board remuneration paid for 2014/15 have been disclosed at the net amount received by board members and excluded theportion of PAYE deducted from the board remuneration. The error have been retrospectively corrected in terms of therequirements of GRAP 3, Accounting policies, changes in accounting estimates and errors.

Items of property, plant and equipment disposed in prior years for which an insurance claim was received was accounted forseparately, by recognising the insurance claim / revenue received and the loss on the item. The profit and loss on these itemshave now been recorded in the financial statements. The error have been retrospectively corrected in terms of therequirements of GRAP 3, Accounting policies, changes in accounting estimates and errors.

.The effect of the prior period error is as follows:

Statement of financial positionOperating lease liability - (9,700)

Statement of Financial PerformanceLease rentals on operating lease - 9,700Board remuneration - 27,900Employee related cost - (27,900)Insurance claim received - 13,450Items disposed / damaged - (1,399)Profit and loss on disposal of assets - 12,051

20. New standards and interpretations

20.1 Standards and interpretations effective and adopted in the current year

In the current year, the entity has adopted the following standards and interpretations that are effective for the currentfinancial year and that are relevant to its operations:

Standard/ Interpretation: Effective date:Years beginning on orafter

Expected impact:

GRAP 18: Segment Reporting 01/04/2015 The impact of theamendment is notmaterial.

GRAP 105: Transfer of Functions Between Entities UnderCommon Control

01 April 2015 The impact of theamendment is notmaterial.

GRAP 106: Transfer of Functions Between Entities NotUnder Common Control

01 April 2015 The impact of theamendment is notmaterial.

GRAP 107: Mergers 01 April 2015 The impact of theamendment is notmaterial.

21. Other financial assets

At amortised cost

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2016 2015R R

21. Other financial assets (continued)Rental deposit - Office BuildingThe deposit was paid in February 2014 for the lease agreement entered into forthe lease of the office building. The lease period is 60 months, after which thedeposit will be repaid to the entity.

43,889 43,889

- -- -

43,889 43,889

Non-current assetsAt amortised cost 43,889 43,889

Non-current assets 43,889 43,889Current assets - -

22. Operating lease asset (accrual)

Non-current liabilities (180,626) (121,716)

The operating lease was entered into during February 2014, for the lease of the office building of the entity.

The lease period is 60 months with an annual increase of 8%.

The minimum lease payments due under the lease contract are as follows:

Within 1 year: R642 580 (2014/15: R584 163)Within 2 - 5 year: R1 413 676 (2014/15: R2 056 256)

Reconciliation of operating lease liability:

Payments made R584 164 (2014/15: R531 058), straightline lease payments recognised R643 073 (2014/15: R643 073adjustment) due to straigtline recognition R58 909 (2014/15: R112 015) (2013/14: R9 700).

23. Other financial liabilities

24. Finance lease obligation

Minimum lease payments due - within one year 10,358 10,501 - in second to fifth year inclusive 1,607 8,126

11,965 18,627less: future finance charges (649) (1,475)

Present value of minimum lease payments 11,316 17,152

Non-current liabilities 1,546 7,785Current liabilities 9,770 9,367

11,316 17,152

It is entity policy to lease certain office equipment under finance leases.

The average lease term was 2 to 5 years and the average effective borrowing rate was 9% (2015: 9%).

The entity's obligations under finance leases are secured by the lessor's charge over the leased assets.

25. Trade and other payables (non-exchange)

Earmarked funds: Mobile Information Office 500,000 -

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25. Trade and other payables (non-exchange) (continued)

The carrying amount reported in the balance sheet for trade and other payables approximate fair value due to the short timeperiod between initiation and settlement thereof. The effect of discounting is not material.

Fair value of trade and other payables (non-exchange)

Taxes and transfers payable (non-exchange) 500,000 -

The carrying amount of trade and other payables (non-exchange) are denominated in the following currencies:

Rand 500,000 -

26. Financial instruments disclosure

Categories of financial instruments

2016

Financial assets

At amortisedcost

Total

Trade and other receivables from exchange transactions 253,752 253,752Cash and cash equivalents 2,122,451 2,122,451Other financial assets 43,889 43,889

2,420,092 2,420,092


At amortisedcost

Total

Trade and other payables from exchange transactions (972,303) (972,303)Finance lease obligations (11,316) (11,316)

(983,619) (983,619)

2015

Financial assets

At amortisedcost

Total

Receivables from exchange transaction 194,089 194,089Other financial assets 43,889 43,889Cash and cash equivalents 1,038,390 1,038,390

1,276,368 1,276,368


At amortisedcost

Total

Trade and other payables from exchange transactions (572,497) (572,497)Finance lease obligation (17,140) (17,140)

(589,637) (589,637)

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2016 2015R R

27. Auditors' remuneration

Audit fees 570,671 390,676Accounting and other services 233,613 207,931

804,284 598,607

28. Comparative amounts

Certain comparative amounts have been reclassified during the year:

Board remuneration paid have previously been classified as part of employee related cost. The expenditure relating to this itemhave been reclassification and are now seperatly disclosed in the financial statements.

Lease expenditure paid have previously been classified as part of general expenditure. The expenditure relating to this itemhave been reclassification and are now seperatly disclosed in the financial statements.

Details are as follows:

Statement of financial performanceBoard remuneration 199,142 174,636Lease rental on operating lease 643,673 648,205General expenditure (643,673) (648,205)Employee cost (199,142) (146,736)

29. Going concern

We draw attention to the fact that at 31/03/2016, the entity had accumulated deficits of R (9,207) and that the entity's totalliabilities exceed its assets by R (9,207).

The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basispresumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities,contingent obligations and commitments will occur in the ordinary course of business.

The entity is wholly dependant on the Northern Cape Department of Economic Development and Tourism for continued fundingor operations. The Northern Cape Department of Economic Development and Tourism has neither the intention nor the need toliquidate or curtail materially the scale of the entity.

30. Events after the reporting date

The entity is not aware of any events after the reporting date that would require additional disclosure or adjustment of thefinancial statements.

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