Domestic Tourism Presentation to the Portfolio Committee on Tourism 11 September 2015 South African...

Domestic TourismPresentation to the Portfolio Committee on

Tourism

11 September 2015

South African Tourism

Slide no. 2 © South African Tourism 2015

Purpose

The purpose of the presentation is to update the Portfolio Committee

on:

•The Domestic Tourism Marketing Strategy.

•The implementation of the R100 million ring-fenced funding.


Outline

• Recap on the Portfolio Committee’s request on key issues to be addressed• Identified Gaps and Key Interventions • Introduction

Domestic tourism key challenges Barriers to domestic tourism

Core domestic tourism problems 5 year performance overview • Domestic Tourism Key Issues

Links to NTSS Approach to additional funding Target segments

• Budget • Marketing Strategies per Strategic Objective and Implementation plan • Unpacking Sho’t Left

Recap on the Portfolio Committee’s request on key issues to be addressed

Slide no. 4


Key issues to be addressed

•Strategies to inculcate a culture of travel amongst South Africans.

•Strategies to achieve geographic spread.

•Strategies to target the Black Middle Class.

•Partnerships with organisations/stakeholders.

•Unpacking “Nothing’s More Fun Than A Sho’t Left”.

•Implementation of the R100 million ring-fenced funding.

Identified Gaps and Proposed Interventions

Slide no.6


Identified gaps and proposed interventions

Identified Gaps

•Integrated Domestic Growth Strategy is under review – NDT led process.•Expand the definition of a domestic tourist in a South African context.•Broaden our data collection parameters and extend our insights on segments.•Impact on the implementation plan for 2016/17 onwards and based on learnings on 2015/16.

Proposed Interventions

•SA Tourism will convene a Domestic Tourism Think Tank to agree on the innovative ways to grow domestic tourism (input to the growth strategy). •Participation of the advisory group include the Department of Tourism, Ministry, SA Tourism, Industry through TBCSA and key Provincial and City Tourism Agencies.


Outline

•Introduction

Domestic Tourism Key Challenges

Barriers to Domestic Tourism

Core Domestic Tourism Problems

5 year Performance Overview


Domestic Tourism Key Challenges

Developing the economic, socio-political case for Domestic Tourism resulting in

building a culture of travel among all South Africans, encouraging more frequent

travel, over a broad geographic spread throughout all seasons.

Slide no. 10

South African Tourism 2013

Sustainable GDP growth

Sustainable GDP growth

Sustainable job creation

Sustainable job creation

Redistribution and

transformation

Redistribution and

transformation

The mandate of SA Tourism

is . . .

. . . through six key

objectives . . .

. . . by acting in a focused way to . . .

Understand the domestic market

through insights and analytics

Understand the domestic market

through insights and analytics

Facilitate the removal of

barriers

Facilitate the removal of

barriers

Facilitating partnerships with key

stakeholders, provinces and cities

Facilitating partnerships with key

stakeholders, provinces and cities

Educate, influence and partner with

trade

Educate, influence and partner with

trade

Encourage travel to address seasonality

and geographic spread

Encourage travel to address seasonality

and geographic spread

Entrench a culture of travel

Entrench a culture of travel

Increase in tourist volume

Increase in tourist volume

Increase in tourist spendIncrease in

tourist spendIncrease length

of stayIncrease length

of stay

Improve geographic

spread

Improve geographic

spread

Improve seasonality

patterns

Improve seasonality

patterns

Promote transformation

Promote transformation

SA Tourism Domestic Marketing Mandate

Slide No. 10


Barriers to Domestic Travel

•Low disposable income.

•The perception that travel is not affordable.

•A lack of a culture of travel due, in part, to not understanding the value and benefits of travel.

•The general belief in the trade, provinces and cities that international tourism is more important than domestic tourism.


Core Domestic Tourism Problems

As per our Domestic Survey, these are the Top 5 Reasons cited for not taking a domestic trip

over the last 3 years;

•Economic constraints remain the biggest barrier to domestic travel. This can be translated

into the lack of affordability, but it can also be seen as the lack of value a travel experience

can create.

•Approximately, 48% of the adult population cannot afford to travel and they are

unemployed/ have no income.

35%

20%

16% 17%

10%

38%

20%

17%

11%9%

41%

21%19%

7%9%

0%

10%

20%

30%

40%

50%

Cannot afford travel No reason to take a trip Time constraints Unemployed / no income Dislike travelling

2012

2013

2014

Affordability Culture


Purpose of Travel Trends

• Visiting Friends and Relatives (VFR) remains the major reason for domestic trips and the number of domestic trips increased in 2014 compared to 2013.

• The number of holiday and business trips taken in 2014 decreased compared to 2013 and were even lower than 2012 levels.

18,4

2,91,7 2,0

0,1

17,9

3,12,0 1,9

0,1

20,7

2,81,6 2,2

0,20

10

20

30

VFR Holiday Business Religious Medical

2012

2013

2014


Outline

• Domestic Tourism Marketing Strategy

Links to NTSS

Approach to Additional Funding

Target Segments


Links to National Tourism Sector Strategy (NTSS)

NTSS aims to, amongst others, contribute to the job creation objectives that have been set

out by the President, the tourism’s sector contribution being 225 000 jobs by the year

2020.

Our role is to…

•To entrench a tourism culture among all South Africans.

•To increase the number of domestic travellers.

• Grow the number of domestic trips.

•increasing the number of holiday trips.

•To improve the domestic tourism revenue contribution.

•To improve seasonality and geographic spread of tourism.

April 18, 2011 17 Copyright © 2011 SA TourismNovember, 2011

Cape Town

Provincial Governments Local Government

Eco

no

mic

Fo

un

dat

ion

s

Communities

Soft Infrastructure

Hard Infrastructure

Durban Sun City Others

Roads International Airports Telecommunications Utilities

Banks & FinancialIndustry AssociationsPolice & SecurityUniversities, Training Institutes,

Schools, etc.

National GovernmentNDT, SAT

TourismOrganisations

High-Level Roadmaps for Reaching NTSS Targets

Note: Cluster map has been created as is from the sourceSource: The South African Tourism Cluster, The Cluster Consortium, 1999

Domestic Travellers

Individuals, families, tour groups, sports teams, study

groups, business people, delegations, politicians, etc.

AttractionsHoliday Resorts/

BeachesRetail/ Markets/

Restaurants

Game Parks, Recreational Facilities, Wildlife

Cultural VillagesSports Events/Public Events

Historical Places

Business/Congresses

SuppliersDirect Indirect

Construction

F&B Services

Financial Services, Insurance

Car Hire, Medical Services

Hotels, Guesthouses,

etc.

Tour Operators,

Agents/ Guides

Transportation (Airline/ Coaches Ships, Railway)

In addition to the activation strategy, it is important for all players in the tourism cluster to assist in creating the right environment in which tourism can flourish...


Target Segments

• The most attractive segments on which to focus activation efforts were

identified based on our ability

to create awareness (culture of travel)

ultimately grow the market (conversion)

comparing those scores against our ability to win in the market.

• SA Tourism used action segmentation methodology, where out of the South

African population of over 50 million was filtered by income of more than

R3 000 per month – which constitutes only 8.2 million adults.


Identifying the Most Attractive Segments for Activation

Integrated Prioritisation

Low-Income Singles

and Couples

Low Income Families

Black Single Parent

Families

Low Income Black

Families

Up and Coming Black

Singles

New Horizon Families

High-Life Enthus-

iasts

Business Travellers

Well-to-Do Mzansi

Families

Spontan-eous

Budget Explorers

Seasoned Leisure Seekers

Est. Holiday Families

Older Middle Income Whites

Older High Income

Culture

Growth

Ability to Win

Size of Segment

318,840 579,691 1,218,055 394,130 870,873 1,302,274 108,894 137,609 286,005 293,884 566,634 917,461 306,525 820,528

% of Segment already Travelling

36% 34% 37% 37% 47% 43% 48% 54% 54% 37% 44% 45% 36% 49%

Average Spend for all trips taken in a year

R2,079 R2,094 R2,042 R3,574 R4,146 R3,597 R3,859 R17,819 R5,333 R3,793 R8,173 R4,140 R2,526 R11,402

Once all three dimensions are viewed in composite, nine segments emerge as viable choices. Five segments were then chosen based on additional strategic input...

Source: Monitor/ Grail Analysis; National Tourism Sector Strategy, February 2011, Department of Tourism, Republic of South Africa

Low-Income Singles and

Couples

Low Income Families

Black Single Parent

Families

Low Income Black

Families

Business Travellers

Up and Coming Black

Singles

New Horizon Families

High-Life Enthusiasts

Well-to-Do Mzansi

Families

Spontaneous Budget

Explorers


Established Holiday Families

Older Middle Income Whites

Older High Income


Understanding More about the Most Attractive Segments

Overview of Prioritised Segments

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Spontaneous Budget Explorers

Spontaneous Budget Explorers

New Horizon New Horizon FamiliesFamilies

New Horizon New Horizon FamiliesFamilies





Well-to-Do Mzansi Families

Well-to-Do Mzansi Families

35+

Black, Coloured and Indian

25-45


25-45

White

18-45


18-24

All races

Travel is a way to discover new

people, places and adventures.

Consumers in this segment travel to get

away from the monotony of daily life; to add to their

life experiences and fond memories

Travel is a way to educate their

children, and to provide them with the

opportunity to broaden their

perspectives. It is also seen as quality time for the family to spend together, and a reward for hard

work

Travel is a way to boost one’s social

status, and to experience the finer things in life in new and different settings

Travel is a way of life and something

of a necessity. Having grown up going on regular

holidays, this group of consumers

understands the value of travel

experiences and memories over commodities

Travel is all about escaping the city, and being able to spend time with

friends and family in new and different

locations. To a certain extent, travel

is also about exposing the children to alternative ways of

life and activities

Budget

21


MTEF budget allocation

2015/16 2016/17 2017/18

MTEF ring-fenced

AllocationR100 000 000 R105 000 000 R110 250 000

Domestic Budget

(current allocation)R 36,576,000 R 41,200,000 R 48,656,000

TOTAL R136,576,000 R141,200,000 R148,656,000


Approach to the additional funding

Ensure that the additional funding will be expended to support the two

categories:

•Marketing activities aimed at Creating Awareness and Culture of travel.

•Marketing activities that will Drive Conversion in the short term.

2015/16 – 70%:30%

2016/17 – 60%:40%

2017/18 – 50%:50%

Marketing Strategies per Strategic Objective and Implementation plan

24


Strategic Objective 1: Grow the number of domestic travelers

• SA Tourism targets 4 of the 5 prioritised segments with one additional middle

income segment - to help grow the number of travelers and increase

frequency.

• Engage in activities which will drive demand by changing consumer segments

attitude towards desirability and value of domestic travel, through

communication that appeals to each segment, using relevant media.

• The selected use of media channels will include travel product placement in

local TV soapies, reality and breakfast shows.

Implementation Plan 2015/16

26

KEY PERFORMANCE

INDICATORMEASUREMENT TARGET: 2015/16

BUDGET ALLOCATED

Grow the number of

travelers - increase

frequency

Achieve 13.8m; additional

domestic travellers; which is a 7%

growth over 2014/15

R32 million

Initiative Impact Update/TargetUltimate Braai MasterThis is reality television show about cooking and travelling targeted at South Africans who enjoy travelling their own country in less visited provinces. SA Tourism has partnered with Cooked in Africa to showcase less visited provinces and hidden gems. The aim to inspire travellers to take more frequent holiday trips.

Total Reach over R2, 5million (incl TV, print & online).

R100 million globally - Travel Channel.

No of people directly mobilised – 300.

Quarter 1: Produced 13 episodes + provide schools prizes in each provinces.Quarter 2: Flighting on 20th September ’15.Quarter 4: Repeated on Travel Channel in March 2016.

Getaway Travel Show This is a partnership with Thompsons Tours to promote domestic travel deals and packages driving frequency and grow domestic travellers to address seasonality. This is one of the biggest consumer shows in South Africa.

Estimated Reach 15 717. Quarter 1@: Negotiate contract.Quarter 3: Show in December 2015.

Mango In-Flight ActivationsThis is a partnership with low cost airline Mango, to have on-board branding the aircraft encourage travellers to take more frequent holiday breaks.

Total Passengers reached 950 000. Quarter 1: In-flight Activations.Quarter 2-4: On board branding planned for end September 2015 to 31 March 2016.

Implementation Plan 2015/16 …continued

27

Initiative Impact Update/Target

Trade Deals Dashboard This is a SA Tourism platform in partnership with numerous product owners and trade, that provides an opportunity for the them to promote and market their deals on the dashboard. Collaborate with Grading Council to ensure products are graded. This affords the travellers a variety of affordable and accessible deals and packages to choose from to book a holiday trip. This is a service SA Tourism provides to the industry.

Over 145,000 unique visitors. Website Page views 876,520 .Top Page viewed: Deals 181,000.

Quarter 1-2: An average of 5000.In quarter 3 and 4, we plan to further lobby product to register and load new special deals addressing affordability, using existing trade platforms like SATSA workshops etc.

Tertiary ActivationsThis is a partnership with Student Travel Association (STA) Travel aimed at implementing student activations at campuses encouraging them to take more frequent holiday trips. This operator is the biggest student association in the country.

Reached a total of 60 000(Activities include exposure to Digital, social media, in-store collateral, social influencers, Online competitions, staff conferences & PR).

Quarter 3: Activations planned at Wits and University of Cape Town.

Implementation Plan 2015/16 … continued

28


Muvhango Content IntegrationPartnership with SABC 2 with Muvhango as it’s the number one soapie in South Africa currently.

Viewership = 4,839,000. Quarter 1&2: Negotiate with SABCQuarter 4: This will be implemented in the last quarter.

Television PartnershipsPartnered with Expresso Breakfast Television show as they are currently the second most watched breakfast show on television.

Viewership 1,400,000 with a growing Black audience of 46%.

Quarter1: Negotiate partnership.Quarter 2: Rolling out for Tourism Month.

Digital PlatformsWe use Facebook, Twitter & Instagram to leverage events, promote deals and partnerships.

Reach 232,804 on Facebook.Reach 9424 on Twitter.

Quarter 1-4: Ongoing.


Strategic Objective 2: Entrench a tourism culture among South Africans• Create a provincial partnership plan that details regional media buys

enhancing national domestic tourism campaign to lobby alignment and support

• Amplifying the existing recent provincial content to profile the provinces and highlight their hidden gems on various media platforms.

• Partnering with the various community platforms and jointly reach all ordinary South Africans through affiliated stokvel groups across all provinces including rural townships.

• We want to roll out a road trip targeting first time travellers who have never travelled before, to less visited provinces, using national regional and community radio stations as well as influencers like a radio DJ.

• Enhance The Sho’t Left product offer will continue to support affordable trade offers.

• We want to highlight the provincial hidden gems and jointly promote the World Heritage Sites and other iconic heritage and cultural attractions nationally, by collaborating with provinces.


30

KEY PERFORMANCE INDICATOR MEASUREMENT TARGET: 2015/16BUDGET ALLOCATED

Entrench a Tourism

Culture among South

Africans

Achieve annual target of 3.1 m holiday trips

(2014/15)

R46 million

Initiative Impact Update/TargetGogo’s on TourSA Tourism will mobilise 1500 South African senior citizens through activations which will assist us entrench culture of travel.

Reach 1500 Senior Citizens

Quarter 3: This will start in October and end in quarter 4. October is seniors month.

PUO BooksNon traditional partnership with an enterprise that educates and targets children using a fun travel book to create a culture of travel amongst kids.

Reach 12 000 kids Quarter 3: Planned for November 2015.

Spelling Bee CompetitionPartnership with Mzansi Spelling Bee about a spelling challenge and literacy support program for children ages 9-14 yrs. This will be hosted in Gauteng, North West, Free State, Western Cape and Mpumalanga. Fist print will be 20 000 copies to be distributed in participating schools, public library etc.

Reach 10 000 kidsReach 100 Youth volunteers50 Coaches (unemployed youth)20 000 books397 travel word list

Quarter 1”Negotiated partnership.Quarter 2: Provided travel word listQuarter 3 & 4: Implement

Radio PartnershipsPartnered with 3 Limpopo based radio stations Thobela FM, Munghana Lonene FM & Phalaphala FM for Tourism Media Launch creating tourism awareness and promoting September as Tourism Month

Reached 1,754,000 Adult 18+ Income R3000+

Quarter 2: Executed in this quarter.


31


Experiential Travel Play This is an inspirational theoretical play incorporating song, dance and poetry to inspire South Africans to change their culture of travel from VFR to leisure.

Reach 2000 learners and adults. Quarter 1: Negotiated and secured partnership.Quarter 2: Produce script

SA StoriesThis is 60 second television commercials highlighting real South African stories of various backgrounds who have never travelled fo4 holiday purposes.

Reach a total of 14,104,980 Adults 18+ with income R3000+ including Black Middle Class

Quarter1: Identified and selected 4 60 second different stories to be produced.Quarter 2: Filming and production of the commercials.Quarter 3: Flight the commercials on SABC 1,2 & 3, eTv and DStv.

Print PartnershipsPartnered with Independent Media through a series of editorials, strip adverts and opinion pieces to promote Domestic Tourism.

Reach 809,000 Quarter 2: Printed in newspaper in September


32


Womans Day ActivationWe were given an opportunity to communicate travel messages to the influential women in the North West. Promoted destination AV at the event and activated Mangwanani Spa treating the ladies.

Reached 1000 Women Quarter 2: August for Womens Month

School Kids InitiativeCollaborated with NDT to galvanise 2000 school children nationally to visit SANParks, SANBI and selected World Heritage sites and icons.

Reach 2000 kids Quarter 1 7 2: Negotiate and plan initiativesQuarter 3 & 4

DJ ToursPartnership with Micasa Music embarking on a series of road trips within the 9 provinces accompanied by #1st time travellers, Micasa, media as well as influencers. Provincial dates start from 15-16 October, 5-6 November, 19-20 November, 10-11 December, 4-5 February, 11-12 February, 18-19 February, 3-4 March, and10-11 March 2016.

Reach 45 first time travellersReach 7,000,000 viewersReach 2,000,000 social media followersListenership from various radio stations and viewership from selected lifestyle TV shows, i.e. Selimathunzi, The Real Goboza, V-Entertainment, Live Amp and Club 808.Followers from selected various influencers from social media platforms.

Quarter 1& 2: Negotiate and secure partnershipsQuarter 3 to 4: Implementation roll out


Strategic Objective 3: Increase tourism revenue contribution to the economy

Amount of revenue:

•SA Tourism targets all 5 prioritised segments and will largely be driven by holiday

leisure travellers and an additional segment - Business Traveller - with the

intention of converting business travellers to leisure.

•Drive conversion with all trade partners showing them the profitability of selling

domestic travel.

•Contribute to increasing tourism revenue.


34

KEY PERFORMANCE


BUDGET ALLOCATED

Grow the number of

domestic travellers

Achieve annual spend target of R26.7b which

is a 6.9% growth on 2014/15 target

(additional).

R12 million

Initiative Impact Update

Intercape PartnershipA non traditional partnership with the largest inter city passenger transport service. The aim is to distribute affordable product deals to passengers visiting friends and relatives to consider tourism leisure activities. Activities also include promoting the audio visual on board the bus screens and at Park Station.

Reach a total 1,000,000 Quarter 1&2: NegotiateQuarter 3: Roll out planned for December 2015

Tollgate ActivationsPartnership with Tollreach implementing tollgate activations encouraging South Africans to take day trips of leisure experiences to the Provinces they are visiting addressing VFR. Petrol Forecourts rolling out in parallel with the tollgate activations.

Reach 1,000,000 Quarter 2: Negotiated and secured contractQuarter 3: Distribution


35


Stokvel Association ExpoPartnered with Thompsons Tours at the Stokvelex Expo to exhibit and promote group packages and special deals to stokvel members.

Reached 5000 Stokvel members and executives consisting of predominantly Black Middle Class members with disposable income.

Quarter 2: Exhibited on 22-23 August 2015 at Walter Sisulu Square in Kliptown.

Joint Marketing Agreement with Thompsons ToursWe partnered with a key tour operator to promote Domestic Tourism by selling affordable travel packages and deals relevant to our segments. They are the biggest operators selling domestic travel in South Africa. Activities, print media on TNW, online & outdoor media billboards & street poles, Fun Bus Specials in support of the events, radio promotions, press trips and SA Specialist programs.

Reach 865 000 on digital platformsReach 100 people through the Fun BusReach 15 000 through brochure distribution

Quarter 2: Implementation started in August 2015 until end fiscal


36


Flightsite Joint Marketing AgreementPartnership with this operator to leverage on non traditional partnership with Pick n Pay Travel. Activities include online, web banners, PnP Smart Newsletter, Social Media, print ads, Holiday vouchers, in-store radio & PnP Money Counter.

Reach 70 000 PnP Smarter Newsletter subscribersReach 800000 social media followersReach 20 000 Flightsite members

Quarter 2: Negotiated and secured signed contractQuarter 3: Implementation of planned activities until 31 March 2016


Strategic Objective 4: Enhance efforts aimed at addressing seasonality and equitable geographical spread

Increase Geographic Spread (5 prioritised segments):

•The plan is to engage in non-traditional partnerships using provincial events as a

key catalyst in the even distribution of tourism.

•All joint marketing agreements will be secured to have a 360 approach focussing

on hidden gems in less visited provinces.

Address Seasonality (5 prioritised segments)

•Roll-out deal driven tactical campaigns with trade partners that are specifically

designed to address the low season from May to September as well as using key

events such as Tourism Month campaign.

•Use South Africa’s iconic heritage sites to incite free entry to attractions

encouraging day trips.


38

KEY PERFORMANCE


BUDGET ALLOCATED

Grow the number of

domestic travellers

Achieve 13.8m; additional domestic travellers;

which is a 7% growth over 2014/15

R10 million


Joint Marketing Agreement (JMA’s) with VUWA Safari & Tours. This is a partnership with a SMME tour operator based in Limpopo promoting this province as one of the less visited provinces

Reached 150 Tourism Stakeholders & Media at Tourism Month Media Launch.

PR Value – To be supplied tomorrow from ID

Quarter2: Branded fleet promoting the campaign in Limpopo. Hosted 40 national and regional media. Unique travel itineraries showcasing hidden gems in a less visited province, Limpopo. Training 120 community stakeholders in Mopani District in Limpopo. mid September. . Activities are community radio exposure, media hosting, community tourism awareness training, university & mall activations & discounted deals

SMME Domestic WorkshopPartnership with TEP to educate SMME’s and other product about the importance Domestic Tourism and how to package for the market demands.

Reach 300 Quarter 1: Implemented at Indaba 2015.


• Sho’t Left is SA Tourisms Domestic Marketing Campaign.

• The campaign line has evolved from “Nothings More Fun Than a Sho’t Left” to “A Million New Experiences Are a Sho’t Left Away” to embrace all South Africans.

• This evolution was informed by our need to increase frequency of travel within the priority segments and entrenching a culture of travel amongst South Africans.

• “A Million New Experiences Are A Sho’t Left Away” was derived from digging deeper into the consumer research, establishing the shared truth amongst all segments that, there is always a first time to experience something new.

• Insights revealed that no matter how much our segments do or do not travel, every weekend provides a new opportunity to do something that they have never done before.

Unpacking Sho’t Left

THANK YOU

40

Domestic Tourism Presentation to the Portfolio Committee on Tourism 11 September 2015 South African...

Documents

Transcript of Domestic Tourism Presentation to the Portfolio Committee on Tourism 11 September 2015 South African...