presentation to portfolio committee sa tourism marketing...

1October 2016

© South African Tourism

Presentation to Portfolio Committee

SA Tourism Marketing Investment Framework

Scenarios

18 August 2017

2October 2016


SA Tourism uses its Marketing Investment Framework to develop optimal budget allocation scenarios based on the

organisational goals and national priorities.

The marketing budget Global Spread

The regions we choose to focus on

The desired market share

1

2

3

Marketing Investment Framework

The investment framework allows us to select the markets SA Tourism should focus on based on the potential of the market, South Africa ability to win in the market, the cost of acquisition

of tourist from the market

Levers to scenario planning

Architecture of the MIF

Leveraging on the above 3 levers the investment framework can help SA Tourism to develop various scenarios (market wise

budget allocation and anticipated returns) depending on what is to be achieved

3October 2016


International Brand Performance Trends: South Africa

T r a v e l E x p e r i e n c e w i t h S o u t h A f r i c a

KEY BARRIERS

Respondents believe Barriers for traveling to

South Africa have increased since 2011

C o n c e r n s F o r

M y P e r s o n a l

S a f e t y

A n o t h e r

A p p e a l i n g

D e s t i n a t i o n

U n c e r t a i n

A b o u t

P o l i t i c a l

C l i m a t e

T o o

E x p e n s i v e

t o G e t

T h e r e

18% 18% 14% 11%

12% 23% 9% 21%

13% 22% 10% 18%

N e v e r V i s i t e d

A W A R E N E S S

P O S I T I V I T Y

C O N S I D E R A T I O N

P L A N T O

S E E K I N F O

S O U G H T I N F O

S H O R T - T E R M

C O N S I D E R A T I O N

2011 2017

88.8 million

58.8 million

79%

37%

22.5million

31%

20%

22%12.8

million

12%

7.0million

14%

23%13.1

million

24%

30%23.9

million

37%

65.8million

77%

106.4million

3 5 %

4 6 %

3 8 %

5 9 %

7.8 million

4 0 %

L E A K A G E

1 1 %

4 2 %

4 %

6 0 %

4 4 %

4 3 %

23.4million

12.6million

103.4

AIR MARKETS (million pax)

124.0

27.0million

14.0 million

4 5 %

17% 11% 20%15%

To arrive at the optimal point SA Tourism needs to study both the demand and the supply. For instance In the Air markets SA

Tourism has quantified the potential target market to be 106.4 million potential pax, which can be in an ideal scenario be

targeted with an investment of R37 billion a year. However in reality the pax that can be converted will also depend on

availability of product and removal of other barriers.

2.9 millionR1Bn

R2.7Bn

R37.0Bn

R4.5Bn

R8.2Bn

R22.7Bn

R9.3Bn

R4.8Bn

4October 2016


Investing additional R240Mn if used optimally can yield Maximum 900K international tourist

into SA per year and a Minimum of 200K.

Regional - Cost of

acquisition

Budget -

Incremental

Activated Holiday Average spent

per tourist

ROI

Europe R264 R240Mn 900K R18 290 R18bn

America R276 R240Mn 800K R20 451 R16bn

Africa Air R1 199 R240Mn 200K R20 650 R4.1bn

Asia R1135 R240Mn 200k R13 342 R2.6bn

Total R61 R240Mn 728K R8100 R5.9bn

The rand value remains unchanged, competitor destination don’t intensify their marketing efforts

presentation to portfolio committee sa tourism marketing...

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