Tourism Authority - Gauteng

1 Central Place

Cnr Jeppe and Henry Nxumalo (Goch) Streets

Newtown, Johannesburg 2011

www.gauteng.net

GautenG Tourism Authority

TOURISM

annual report2010/2011

Six regionS of gauteng

West rand

tshwane

ekhurhuleni

Sedibeng

Metsweding

Johannesburg

Tshwane

Pretoria

West RandEkurhuleni

Sedibeng

Metsweding

Johannesburg

Johannesburg

GAUTENG TOURISM AUTHORITY ANNUAL REPORT 2010/11 1

Section 1: Executive Summary

2 Message from MeC for economic Development

4 gta Board Chairperson’s foreword

6 Ceo’s overview

8 gta Board Members and Senior Management team

Section 2: The Gauteng Tourism Authority

10 2.1 gta Mandate

12 2.2 Constitutional, national and Provincial Legislative Mandates

12 2.3 good governance and Legislative responsibility

13 2.4 Strengthening accountability to Stakeholders

Section 3: GTA Vision and Mission

15 3.1 Vision, Mission, Values and Strategic goals

15 3.2 gta Core functions

Section 4: Reports on the Performance Against the Approved Plans

16 4.1 2010 fifa World Cup

18 4.2 Destination Management

19 4.3 Destination Marketing

24 4.4 Quality assurance

26 4.5 research and information Communication technology

27 4.6 institutional relations

29 4.7 Corporate affairs

29 4.8 Corporate Services – Human resources and administration

31 4.9 finance

TAbLE OfContentS

Section 5: Provincial Performance Report

33 5.1 a global Picture

34 5.2 a national Perspective

35 5.3 a Provincial Picture

Section 6: GTA Performance Report

37 Performance against targets per Business unit

Section 7: Annual Financial Statements for the year ended 31 March 2011

57 report of the auditor-general to the gauteng Provincial Legislature on the gauteng tourism authority

58 administrative information

59 Statement of responsibility by the Members of the Board

60 report of the Board

63 report of the audit Committee

64 Statement of financial Position

65 Statement of financial Performance

66 Statement of Changes in net assets

67 Statement of Cash flows

68 notes to the annual financial Statements

85 Materiality and Significance framework

86 Detailed Statement of Performance: annexure 1

Section 8: Outlook for the Coming Year

91

2 GAUTENG TOURISM AUTHORITY ANNUAL REPORT 2010/11

MEC’SforeWorD

Section 1: Executive Summary

MEC Economic DevelopmentQedani Mahlangu

T he tourism sector is a multifaceted industry that contributes to a variety of

economic sectors. it is also a labour-intensive industry with the capacity to create jobs. through tourism’s inherent message of goodwill, hospitality, trust, service without servility, tolerance, interaction and personal communication, it has become an effective mechanism for fostering transnational cultural exchange, regional integration, dialogue and understanding among people.

gauteng achieved a market share of 49,4% in 2010, recording a 20,6% growth over 2009. international arrivals increased from 3.3-million in 2009 to 3.9-million in 2010. this was mainly due to successfully hosting both the opening and closing ceremonies of the 2010 fifa World Cup. as gauteng also hosted the majority of matches, it was the most visited province during the event, with more than 220 000 (223 039) tourists coming to the province.

gauteng was also the home of the international Broadcast Centre – the nerve centre for all television operations and the world’s news agencies during the fifa World Cup event. the cumulative television audience for the event was estimated to be about 26,9-billion people, and gauteng was in the global spotlight for the six-week period. this in itself was a significant tourism boost for the local tourism

industry, since over 30 000 media representatives from across the globe were housed in gauteng.

gauteng reaped significant rewards from being a central host of the 2010 fifa World Cup. tourism in the province contributed 4.8% to gross domestic product (gDP), as compared with 5.3% in 2009. it must, however, be noted that despite the decline, which was effected by the new methodological change in tourist calculations, tourism’s contribution to the provincial economy in the 5% region remains critically important.

Since the 2010 fifa World Cup provided a once-in-a-lifetime opportunity to showcase what gauteng offers, the gauteng tourism authority (gta), throughout its various marketing campaigns, used the platform as a benchmark and motivated visitors and locals to enjoy gauteng beyond the action of soccer matches. this, it is hoped, will create market access for gauteng’s small, medium and micro enterprises (SMMes).

the gta erected 74 tourism signages in the province during the year under review, supported 661 SMMes and star-graded 820 non-hotel accommodations, while 3 000 individuals participated in the customer-care programme offered in partnership with the national Department of tourism through the national service excellence programme.

gta projects are aligned to the gauteng employment, growth and Development Strategy (gegDS) and it is currently reviewing the gauteng tourism Sector Strategy with the new national tourism Sector Strategy, the gegDS and the new growth Path.

this confirms the dedication and loyalty of its entire staff component. on this healthy note, i would also like to take the opportunity to thank the gta board and the Ceo for their unwavering support and strategic direction during the year.

i am happy to present to you yet another inspiring gta annual report.

Ms Qedani Dorothy Mahlangu Member of the Executive Council: Economic Development


Gauteng achieved a market share of 49,4% in 2010, recording a 20,6% growth over 2009.


ChAiRPERSON’SforeWorD

Section 1: Executive Summary continued

GTA Board Chairperson Khehla Mthembu

T he mandate of the gauteng tourism authority (gta) board is to steer activities and ensure

the gta sustains its position, thereby maximising the social and economic contribution that tourism makes to the community of gauteng.

tourism’s economic activities continue to improve, positively affecting the livelihoods of people through employment creation, income generation, improved infrastructure, increased standard of living and increased government revenue. our tourism industry is in a strong position, thanks in no small way to the efforts of our provincial government and the private sector.

the year under review saw gauteng achieve a market share of 49,4%, recording a 20,6% growth over the previous year. international arrivals increased from 3.3-million in 2009 to 3.9-million in 2010, mainly due to the successful hosting the 2010 fifa World Cup.

gauteng was a pivotal host of the World Cup and the epicentre of most of the Cup’s major activities: it hosted the first-ever official kick-off concert; 21 of the 64 matches; the opening game; two of the quarterfinals; and the final. the province hosted 19 team base camps and the international broadcast/media centre, making it the most visited province during the event.

gauteng maintained first place in terms of accommodation and bed nights. tourists spent an average of five days each in the province for the year under review. the more-than 650 000 tourists arriving through or tambo international airport for the Soccer World Cup were a significant boost for the gauteng tourism industry. the huge success of the World Cup gave the destination global recognition, and saw the tourism industry attain high levels of success, contributing 4.8% to gross domestic product. the province also continued being the most popular african land market for cross-border shopping.

We will leave no room for complacency; we will continue striving to increase our tourism numbers, and support efforts in creating more new jobs and sustaining existing ones.

Financial Stancethe gta functions within the framework of the Public finance Management act, no. 1 of 1999. for the period under review, the gta received r75,987,000 in subsidies. With our mandate of administering and promoting gauteng and its regions as a preferred destination, we take collective ownership and responsibility of growing our critical tourism industry as well as meeting key targets set out in the gauteng employment growth Development Strategy (gegDS), the gauteng tourism Sector Strategy, the national tourism Sector Strategy (ntSS) and the new growth Path.

the gta act also prescribes that one-third, i.e. 33%, of its budget should be spent on development through a development fund. the successful performance of our tourism activities during the year under review proved that our core mandate was achieved. Moreover, through the enthusiasm, professionalism and determination with which management carried its various portfolios, our SMMe development was achieved.

again, with strict adherence to and enforcement of policies and procedures as laid down, i am pleased to announce that gta’s financial performance received an unqualified audit. this is an affirmation of our loyalty to the prescribed business processes.

Governance and Structurethe board put significant effort into ensuring gauteng’s image was well portrayed and that it matched the expectations of both our african and international tourists, and therefore high quality tourism products were delivered. the board assisted gta management to partner with Kaya fM, Joburg fashion Week as well as Joy of Jazz in promoting gauteng; these activations happened during the tourism indaba.

the year also saw the review of the gta strategy to align with the gegDS and ntSS. We also played a key role in collaborating with the Sandton Convention Centre in bidding for various international events. and we contributed in the re-launch of the gta website.

Acknowledgement and Conclusion it has been a progressive and exciting year, with much achieved.

We were able to appoint a Ceo, Ms Dawn robertson, to drive the vision of the gta forward. the year also saw a change of leadership in the Department of economic Development, and we would like to thank MeC Qedani Mahlangu for her support and strategic direction during the period.

i would also like to acknowledge the hard work of the gta staff. their commitment and energy helped to ensure the gta continues making a vital contribution to gauteng’s economic well-being.

finally, i would like to thank my colleagues for their service during the year – you all made a significant contribution and it has been a privilege working with such a dedicated and committed group.

i hereby present to you yet another progressive gta annual report.

Mr Khehla MthembuChairperson: Gauteng Tourism Authority Board


Gauteng was the epicentre of the FIFA Football World Cup.


CEO’SoVerVieW


Chief Executive OfficerDawn Robertson

Sa tourism’s 2010 annual tourism report reveals that 2010 was a successful tourism

year for the country. foreign arrivals recorded a 15% growth from seven million in 2009 to 8.1-million in 2010. Coupled with this was a 14% growth in revenue, from r67-billion to r76-billion.

this performance was underscored by South africa’s resounding success in hosting the 2010 fifa World Cup on behalf of the african continent. gauteng was arguably the biggest beneficiary as a pivotal host and epicentre of World Cup activities.

the World Cup was one of the biggest success factors for tourism in 2010, and one of the most important legacies to build on in the future. our success will be measured not by the impact we made during the four weeks of competition, but by the impact it had on the lives of South africans.

the World Cup united people far beyond the boundaries of the match stadiums. We proved to the world that the dream of the rainbow nation is a reality, and that diversity of culture should be embraced. it also helped to reverse the afro-pessimism that has dominated foreign media for years. We displayed our world-class capabilities and skills, and confirmed our ability to deliver. the event boosted the country’s global credibility – and that is good for future growth.

gauteng welcomed over 70% of all World Cup visitors to South africa. How we sustain this success in the future will depend largely on the ingenuity of our provincial initiatives. the province captured r1.6-billion of the r3.6-billion revenue generated nationally from the Cup. this attests to gauteng’s formidable ability to generate tourism revenue under inconsistent circumstances. our total foreign tourism revenue growth of 24.5% (from r21.6-billion in 2009 to r26.9-billion in 2010) was achieved despite the strength of the rand, a converse of the 40% decline during the height of the recession.

one post-World Cup survey found that nine out of 10 foreigners who visited South africa for the World Cup would recommend it to others as a holiday destination. the industry is expecting visitor arrivals to climb steadily, in spite of South arica’s high costs, economic uncertainty and the strong rand. future tourism projections indicate that over the next five years, an estimated 1.5-million additional foreign visitors could visit South africa due to the 2010 World Cup.

the majority of international visitors emanated from traditional South african tourism markets such as the uK, uS, germany, australia, france and the netherlands. the World Cup also provided the opportunity to investigate source markets not previously considered. for example, the large number of South americans from Mexico and Brazil who visited

South africa for the event took the industry by surprise. other countries now receiving more attention include india, which was made a key source market this year after a 17% growth in arrivals in 2009.

following this period of strong growth, the tourism industry is already facing new challenges. We are all aware that a “business as usual” approach won’t do. Competition for the tourism dollar is fierce. Visitors are becoming increasingly discerning, constantly in search of new experiences and better standards of service. Businesses, especially those in the hospitality industry, are struggling to sustain the high profits generated by the World Cup. But, with a little creativity and coordination, we can turn these challenges into future opportunities.

the industry is vulnerable, even in times of strong growth, to sudden shifts in local and global competition, the risk of major shocks that can cause dramatic changes in consumer behaviour, and the rapid development of new destinations, attractions and modes of tourism. South africa is competing well with many of the world’s leading tourist destinations and we have managed to keep ahead of international trends to a large extent. embracing the spirit of “business unusual” and the lessons learnt from the World Cup, we began to overhaul of the work of the gauteng tourism authority (gta) during the latter half of 2010.


the mandate of the gta establishes it as the official destination marketing organisation for the province, to promote and position gauteng as the destination of choice for business tourism and to leverage leisure tourism benefits off increased business tourism. tourism is acknowledged as one of the fastest and most cost-effective creators of sustainable jobs in the economy. gauteng has tremendous growth potential in this area.

gauteng is the international visitor’s first point of contact with the country. as the gateway into the country and Southern africa, gauteng plays a critical role in our tourism landscape. the province is looked up to for inspiration in advancing the development of the country’s economy, including the tourism economy. the location of the industry’s major players in gauteng puts the province in an unparalleled position as the epicentre of tourism activity. With all the successes tourism may have registered over the many years, there is still a huge potential that the industry needs to realise to unlock its true value as a catalyst for socio-economic development and transformation.

gauteng competes fiercely with a wide range of destination choices.

tourists are more educated and selective when choosing their destinations, with far greater access to information and to a variety of destination options. Destination branding and marketing are critical. for developing countries specifically, destination marketing and country branding are an effective way of attracting tourists and increasing trade and investment strategically.

the internet has become the predominant channel for consumers to search for and buy travel services. about 95% of the world’s new constantly connected generation of travellers search for travel information online; 55% buy travel online (up from 45% in 2009); and 65% are influenced by their online community. Social media networks such as facebook, twitter and sites such as tripadvisor have become a hugely powerful and cost-effective driving force behind travel marketing. the emergence of social media and the resulting shift of control from suppliers to consumers

constitute the biggest media revolution of our times. Consumers are increasingly distrusting formal advertising and are making choices based on online word-of-mouth, reviews and referrals from their online friends.

a key strategy for leveraging the World Cup impact alongside the global marketing and sales plan was the launch of the gauteng Destination Marketing Portal in December 2010. this provides the province with a very strong social media presence and has been a phenomenal success.

an innovative and growing tourism industry is a hallmark of a modern and sophisticated economy. the new gauteng tourism Sector Strategy is currently being finalised in partnership with the tourism industry to create a vision, set a new direction and guide marketing and investment decisions to help the industry grow. importantly, it places the tourism and events industry at the heart of the gauteng government’s decision-making processes.

the new strategy will promote gauteng as an internationally competitive, premier four-season tourism destination, where visitors have access to extraordinary experiences. our business model will be industry-led, market-driven and research-based, as strategic business intelligence is vital in supporting effective business decisions and in maintaining our competitive edge.

Many government departments impact on the tourism industry directly and indirectly. our new strategy will link and integrate their activities to ensure tourism takes priority in decision-making on economic, social and environmental issues. this will make it easier for the industry and government to work together. it will also strengthen the links between the province and other tiers of government when it comes to promoting the industry.

the strategy will deliver a comprehensive new framework for all provincial government action that affects the tourism industry. our tourism marketing activities will be complemented by an increased focus on investment, policy development and interaction with

the community on environmental and planning issues. We will integrate land-use planning, industry and product improvement, visitor servicing and community engagement by all levels of government in partnership with the tourism industry.

in the year ahead we will concentrate on our strengths – lifestyle experiences and major public and business events. We will work hard to support these through distinctive and well-targeted advertising, product and infrastructure development and improving local transport infrastructure.

gauteng’s strengths also include our sophistication, diversity and reputation for cosmopolitan cultural experiences. over the years the provincial government has invested in key tourism infrastructure development, Maropeng and the Cradle of Humankind, Dinokeng game reserve, newtown and Constitutional Hill. as a result of the World Cup, our road transport system is of an international standard and we now boast the gautrain – the first high-speed train in africa. to sustain this, we and our tourism partners have to remain aware of short-term and long-term opportunities and challenges and combine this with careful product marketing. effective marketing strategies must also be complemented by a new focus on investment.

these are exciting and challenging times for the gauteng tourism industry. i look forward to working in long-term strategic partnerships with all parts of the industry to grow our visitor economy, create jobs and develop our tourism assets for the benefit of all the people of gauteng, and for the enjoyment of people from across the world.

Dawn Robertson CEO


GTA bOARdMeMBerS

Haroun Moolla

Moipone Molotsi

David Moshapalonomaxabiso Majokweni

Leonard MakgamatheJimmy ntintili

Khehla Mthembu



GTA SENiORManageMent teaM

Left to right: Hennie Venter – Chief financial officer Mbuyiselo Kona – Senior Manager regional tourism Sarah Moeketsi – Senior Manager Corporate Services Dawn Robertson – Chief executive officer Khumbulani Sithole – Senior Manager research and Strategy Nonnie Kubeka – Senior Manager Destination Marketing Mpho Moeti – Senior Manager Destination Management


SECTiON 2: ThEgauteng touriSM autHority

The Authority also works in close collaboration

with regional and local government structures

to position Gauteng as a global city region.

Section 2: The Gauteng Tourism Authority

2.1 GAuTENG TOuRiSM AuTHORiTY MANDATE

the gauteng tourism authority (gta) is founded by the gauteng tourism act, no. 10 of 2001, which prescribes the function of the gta as follows:

To provide for the promotion and sustainable development of tourism in Gauteng; to establish the Gauteng Tourism Authority; to confer powers and functions and impose duties upon the Authority; to establish the Tourism Advisory Committee; to establish a tourism development fund; to provide for registration of tourist guides, tour operators, couriers, accredited training providers in the tourism industry, hotels, conference centres, restaurants, designated tourism amenities and other accommodation establishments and possible future functions relating to these categories; and to provide for matters incidental thereto.

About the Gauteng Tourism Authority

the early to mid-1990s witnessed the stepping up of South africa’s deliberate effort to formalise tourism as an industry, underscored in the main by the establishment of the national tourism act (no. 72 of 1993). after the advent of this act, a few more legislative tourism developments occurred, both at national level and across the country, spurred by the dawn of a new political democratic dispensation in 1994, which began in earnest to open South africa to the world as the country was being reintegrated back into the global society.

as tourism growth and development in the country gained momentum, the notion of the sustainability of the industry took centre stage, ultimately giving birth to the responsible tourism-oriented national White Paper on the Development and Promotion of tourism in South africa (1996), which proclaimed, inter alia, that tourism should be government-led, private sector-driven and community-based.

in its quest to leverage national tourism growth and development to drive economic growth in the province, the gauteng government – through the erstwhile Department of finance and economic affairs (now the Department of economic Development) – established the gauteng tourism authority in 1998 as a specialist agency responsible for tourism

promotion. the authority was founded on the gauteng tourism act, no. 18 of 1998, whose chief purpose was:

To provide for sustainable development and improvement of tourism in Gauteng; to establish the Gauteng Tourism Authority; to confer powers and functions and impose duties upon the Authority; to establish a tourism development fund; to establish specific mechanisms in order to provide sustainable tourism revenue for tourism development and promotion; to provide for the registration, grading and classification of hotels; to provide for the registration of restaurants, other accommodation establishments, conference centres and tourist amenities; to provide for the licensing of tour operators, tour guides and couriers; to provide for the certification and accreditation of training providers in the tourism industry; to provide for the imposition and collection of levies in respect of hotels and other accommodation establishments, restaurants and designated tourist amenities; and to provide for matters incidental thereto.

the 1998 act was subsequently repealed by the gauteng tourism act, no. 10 of 2001, which somewhat scaled down the mandate of the authority while it maintained the central role of the agency:


To provide for the promotion and sustainable development of tourism in Gauteng.

To provide for the promotion and sustainable development of tourism in Gauteng; to establish the Gauteng Tourism Authority; to confer powers and functions and impose duties upon the Authority; to establish the Tourism Advisory Committee; to confer powers and functions and impose duties upon the Committee; to establish a tourism development fund; to provide for registration of tourist guides, tour operators, couriers, accredited training providers in the tourism industry, hotels, conference centres, restaurants, designated tourist amenities and other accommodation establishments and possible future functions relating to these categories; and to provide for matters incidental thereto.

a 2007 amendment of the 2001 act was premised on the recognition of the non-executive board of directors, which hitherto was only interim, having been established earlier to replace the tourism advisory Committee and act as an accounting authority.

the gauteng tourism authority broadly carries a dual mandate: on the one hand to position gauteng as a globally desired destination through its marketing and promotional efforts, and on the other to manage gauteng as a globally competitive destination through

ensuring that it is a value-for-money destination, and also ensuring that it develops products that respond to tourist demands.

the growing stature of tourism nationally and provincially as an agent for economic growth and development has resulted in the role of the gauteng tourism authority growing exponentially in a bid to create sustainable job and entrepreneurial opportunities. this in turn has seen the effort to formalise tourism as an economic sector with its specific accounting of economic contribution.

to this end, tourism is chief among the key industries and economic sectors identified to drive economic growth and creation of decent work through the gauteng employment growth and Development Strategy (gegDS) and the new growth Path, both of which have job creation as their centrepiece. inherent in the gta’s mandate is the role of positioning not only destination gauteng, but also brand gauteng as globally desirable and competitive for investment and other purposes – a role that adds value to the functions of its sister agencies such as the gauteng economic Development agency (geDa), the gauteng film Commission and the Cradle of Humankind/Dinokeng.

the authority also works in close collaboration with regional and local government structures to advance the notion of positioning gauteng as a global city region while seeking to achieve a joined-up government approach to harmonising tourism promotion and management in the province. it also maintains strong ties with Sa tourism, which leads the international marketing drive, and generally aligns itself without deviation to the national tourism agenda through, among other means, active participation in all national structures that seek to advance the sector agenda.

one of the gta’s foremost challenges is to sustain the province’s status as a leading provincial destination for international tourists and a primary tourism revenue generator, while cooperating with other provinces, particularly the ones with which it shares common borders. this is consistent with the gegDS, which recognises gauteng’s role – as the country’s economic powerhouse – to assist with economic viability of other provinces to reduce the degree of in-migration to gauteng.


Section 2: The Gauteng Tourism Authority continued

2.2 CONSTiTuTiONAl, NATiONAl AND PROViNCiAl lEGiSlATiVE MANDATES

LiSt of aCtS CoMPLianCe

gauteng tourism amendment act, no. 3 of 2006 national records and archives Services act, no. 43 of 1996

national tourism act, no. 72 of 1993

Promotion of administrative Justice act, no. 3 of 2000

Promotion of access to information act, no.2 of 2000

Public Service regulations, 2001, as amended

Public Service act, no. 103 of 1994, as amended

Public finance Management act, no. 1 of 1999, and regulations

Labour relations act, no. 66 of 1995

Basic Conditions of employment act, no. 75 of 1997, and regulations

South african Qualifications authority act, no. 58 of 1995

Skills Development act, no. 97 of 1998

employment equity act, no. 55 of 1998

occupational Health and Safety act, no. 85 of 93

access to information act, no. 2 of 2000

the income tax act, no. 58 of 1962

Value-added tax act, no. 89 of 1991

unemployment insurance act, no. 30 of 1966

Skills Development Levies act, no. 9 of 1999

2.3 GOOD GOVERNANCE AND lEGiSlATiVE RESPONSiBiliTY

the gauteng tourism authority was established in terms of the gauteng tourism act, no 10 of 2001, as from 5 february 2002. Prior to this, the gauteng tourism act of 1999 was applicable. the result of this process is that policies, procedures and the delegation of powers were revised in order to provide for the transfer of the accounting authority from the board to the Ceo.

Subsequently, the gauteng tourism amendment act, no 3 of 2006, came into effect on 7 June 2006, stipulating that a board of directors takes over from the Ceo the responsibilities of the accounting authority. the board was appointed on 1 february 2007. the gta is a schedule 3(c) provincial public entity in terms of the Public finance Management act, no.1 of 1999 (PfMa).

the PfMa requires the maintaining of and complying with the following policies:

• Supply-chainmanagementpolicy;

• Riskmanagementpolicy;

• Investmentpolicy;

• Debtcollectionpolicy;

• Fraudpreventionplan;

• Assetmanagementpolicy;and

• Materialityframeworkpolicy.

Compliance with the policies, procedures and applicable legislation is strictly monitored.


Governance and Management until 5 february 2002, the authority was governed by a board, appointed by the MeC for finance and economic affairs. on 5 february 2002 the Ceo became the accounting authority with the MeC, being the executive authority advised by an advisory committee. the authority also has an audit committee and a procurement committee. Staff were appointed according to the organogram, and at year-end the position of senior manager: destination management was vacant.

as from 1 february 2007, the responsibilities of the accounting authority were transferred to the new board, which became fully functional in the 2007/08 financial year. at the first board meeting, held on 22 May 2007, a resolution was passed that each board member sign a declaration of interest at every future board meeting.

the board:• Retainsfullcontrolovertheentity,

its plans and strategy; and

• Acknowledgesitsresponsibilitiesas to strategy, compliance with internal policies, external laws and regulations, effective risk management and performance measurement, transparency and effective communication, both internally and externally, by the entity.

Compliance with the policies, procedures and applicable legislation is strictly monitored. in order to improve on internal controls, various other policies and procedures were also put in place. an audit committee is functional. the audit committee evaluated the effectiveness of the internal audit function provided by the firm, governance and risk Management (Pty) Ltd, on an ongoing basis with recommendations reflected in the minutes of the committee’s meetings.

2.4 STRENGTHENiNG ACCOuNTABiliTY TO STAKEHOlDERS

2.4.1 Cooperative Governance: National Departments

Department Scope of Engagement

national Department of tourism •Alignmentofplansandbudgetformarketing, skills development, service excellence in the province

2.4.2 Cooperative Governance: National

Government Agency Scope of Engagement

South african tourism (Sat) •Alignmentofplansandbudgetformarketing the province

•Supportforinternationalanddomestic tourism destination marketing

•Researchandplanningcooperation

tourism grading Council of South africa

•Promotionoftourismgradingandsupport for accreditation of assessors

the tourism enterprise Partnership •Alignmentofskillsandentrepreneurship development programmes

2.4.3 Cooperative Governance: Provincial Departments and Agencies

Government Department/Agency Scope of Engagement

Department of economic Development (DeD)

•Developmentandimplementationofservice level agreement (SLa)

•Alignmentofplansandbudgetwithin DeD agencies

Department of Local government •Alignmentofplansandexecution

gauteng economic Development agency

•Sharingcommonmarketingplatforms

gauteng economic Propeller •AlignmentofplansonSMMEdevelopment support

Cradle of Humankind and Maropeng

•Alignmentofplans,marketingandpromoting the province


To develop, promote, coordinate and facilitate responsible and sustainable tourism in the Gauteng global city region.


SECTiON 3: GTAViSion anD MiSSion

3.1 ViSiON

To position Gauteng as a globally competitive destination of choice.

MiSSiONTo develop, promote, coordinate and facilitate responsible and sustainable tourism in the Gauteng global city region; to create a world-class destination that attracts business visitors and all other tourists to the province; and to benefit our people and contribute to job creation and economic growth.

VAluES • CommitmenttotheprinciplesofBatho Pele.• Integrityandpassion.• Professionalismandexcellence.• Strongfocusonsustainableandresponsibletourism.• Commitmenttoprogressivecorporategovernance.

STRATEGiC GOAlS• Createandpromoteaworld-classtouristdestination.• Contributetowardstourismsectorindustrydevelopment.• Facilitateindustrycoordinationandcooperativegovernance.• Fosteraresponsibleandsustainabletourismindustry.• Implementprogressivecorporategovernancepractices.

3.2 GTA CORE FuNCTiONS

The Gauteng Tourism Authority’s core function is to develop, promote, coordinate and facilitate responsible and sustainable tourism in the Gauteng global city region; to create a world-class destination that attracts business visitors and all other tourists to the province; and to benefit our people and contribute to job creation and economic growth.


SECTiON 4: REPORT ON ThE PERfORMANCEof PrograMMeS againSt tHe aPProVeD PLanS

4.1 PROGRAMME 1: 2010 FiFA WORlD CuP

Since the announcement in May 2004 of South africa as the host of the 2010 fifa World Cup, it was evident that our country had reached an unassailable milestone in stamping its authority as a host of major events of global stature and significance.

this served to consolidate our young democratic nation’s membership of the global society following many decades of isolation. the preparation for the hosting of the 19th edition of this largest single-code sporting event called for the country and all spheres of government to mobilise major resources to ensure the success of an event that the country ostensibly hosted on behalf of the african continent.

the event touched all aspects of South african life and created confidence in africa and its abilities. the event’s indelible legacy and the power of sport to change lives, as observed by former president nelson Mandela, will reverberate for many years. the hosting of this tournament led to fast-tracked delivery of socio-economic infrastructure, and provided a template for cooperation on effective delivery of a common goal among all three spheres of our government. Partnerships between the public and private sector also provided something to build on in the future. the country was also galvanised to make unprecedented investments in improving the service quality of frontline personnel to prepare them to service our visitors with distinction.

fifa’s gamble on africa paid off, with the 2010 edition cited as being the most successful in the history of the federation. this was notwithstanding the aftermath of the devastating global economic recession that the world was still reeling from ahead of the tournament. the 3.1-million ticket sales were comparable to the 2002

South Korea/Japan edition and demonstrate what the possibilities could have been had the global economic circumstances been more favourable.

gauteng was arguably the pivotal host and, consistent with that status, also the major beneficiary from the event, having:

•Hostedthefirst-everofficialkick-offconcert held in the tourist magnet of Soweto;

•Hosted21ofthe64matches;

•Beentheonlyprovincewithtwohost cities and the most number of host stadiums – three;

•Hostedtheopeninggame,whichisaccompanied by the fanfare of the opening ceremony, thus attracting huge live television audiences from all across the globe;

•Hostedtwoquarterfinals;

•Hostedonesemifinal;

•Hostedthefinalwhich,liketheopening game, also attracts the world’s interest due to the spectacle of the closing ceremony that precedes the game itself;

•Playedhostto19nationalteambase camps (including hosts, South africa); and

•HostedtheInternationalBroadcastCentre/media centre, which exposed the influential global media to gauteng and its unpretentious character.

accordingly, the province exploited the unprecedented marketing opportunity through various means, techniques and platforms, working in partnership with Sa tourism.

Post the hosting of this event, the province carried an impact assessment study under the auspices of the gateway project team, which was a matrix team drawn from the gauteng government and charged with the responsibility of a coordinated and successful delivery of the tournament on behalf of the province. the study delved into the

social, economic, tourism, sport development and, to a lesser degree, political impacts of the tournament on the lives of those in gauteng.

it was encouraging to see that the event had an all-round positive impact in the following ways:

•EventhoughGautengersdidnot have access to the job opportunities that they had hoped for, they were nonetheless proud of their country and province for having hosted an incredibly successful tournament, the first time it had happened on african soil. this enhanced the embracing of national assets, ranging from the national team, Bafana Bafana, to the national anthem and the national flag. the spirit of the tournament broke down gender, race and class stereotypes and engendered social cohesion.

•Thesocio-economicinfrastructure,such as roads constructed mainly under the auspices of the gauteng freeway improvement Project, left a lasting legacy that largely relieved traffic congestion and allowed gautengers to spend less time on the roads. the city beautification programmes saw the planting of trees in townships and the removal of grime, thus heightening sensitivity to environmental-care issues among the locals. the economy of the province benefited something in the order of r12-billion in gross domestic product performance, immediately improving the year-on-year economic performance of the country and the province. economists interviewed during the study argue that some of the benefits may not be immediate but the country stands to benefit over the months and even years to come.

•Asexpected,Gauteng’stourismindustry received a major boost, benefiting in excess of r1.5-billion of the r3.6-billion spent directly by visitors during the tournament. as a province that is consistently a


The event touched all aspects of South African life and created confidence in Africa and its abilities.

leading destination for international visitors, more than 70% of the 310 000 primary World Cup visitors visited gauteng and contributed, inter alia, to increases of more than 300% in hotel revenues in central locations such as Sandton. the tourism-specific legacy will certainly depend on the ingenuity of our plans to harness the opportunities emanating from the exposure that new potential source markets had to both our country and province.

•Inaprovincethatisalreadysport-mad, the tournament enhanced interest in sport in general, and in soccer in particular. it, however, also created new sport fans among some gautengers who were previously not very keen on sport. the tournament led to the upgrading of various sporting infrastructure, from practice facilities to official host stadiums across various regions of the

province. Since the hosting of the tournament, Bafana Bafana have improved their international ranking and the domestic league has become more competitive, even though this hardly translated into attracting spectators back to the stadiums. the national football administrative body, the South african football association (Safa), also benefited from a professional home funded by fifa, constructed against the backdrop of the fifa World Cup tournament flagship stadium, Soccer City. the windfall Safa will receive from fifa as its profit share for hosting the tournament is largely anticipated to assist in elevation of grassroots soccer. through its various social programmes, fifa also constructed facilities to both benefit soccer and have a positive social impact by attracting the youth to sport in general.

•Whetherattributeddirectlyorotherwise, South africa’s successful hosting of the 2010 fifa World Cup undoubtedly had a major influence on the invitation to South africa to join the Brics (Brazil, russia, india, China and South africa as the last member) economic partnership – an unequivocal show of confidence in the country with the smallest economy comparative to other member countries. two of these member countries are, coincidentally, the next hosts of the fifa World Cup tournaments, namely Brazil and russia, in 2014 and 2018 respectively. the country’s successful hosting of elections in 2009 did not only reaffirm the sustainability of its young democracy, but also proved that South africa, as a politically stable nation, could be trusted with hosting of events with a long-term horizon.


4.2 PROGRAMME 2: DESTiNATiON MANAGEMENT

the purpose of the programme is to build a strong product base, informed by the needs of the target markets, which will allow the province to offer exciting, memorable and unparalleled visitor experiences and to develop products and infrastructure that are economically viable, environmentally sustainable and to the maximum benefit of local communities.

Key to the deliverable of this objective, the Destination Management unit responsibility is to ensure that its interventions are aimed at maximising local economic benefits through reducing tourism leakages and increasing linkages; to promote equitable tourism business and enhance product development; to ensure innovative tourism development that meets visitor requirements; and to facilitate and provide appropriate enterprise assistance programmes and the development of viable tourism routes.

4.2.1 Enterprise and Product Development

a figure of 661 tourism SMMes were financially and non-financially supported in line with an extensive gta business development programme, which includes business advisory services, business support, SMMe skills development and market access assistance.

Subsequently, 11 tourism awareness programmes were hosted by gta in the six gauteng regions. this was to enhance information sharing with tourism stakeholders and broader participation of communities in the tourism sector, and promote industry compliance to the required standards of product quality and service excellence.

the gta extensively supported five gauteng tourism businesses participating in the emerging tourism

entrepreneur of the year awards (eteya awards). these businesses are: Vaalnest Boutique Hotel (gauteng’s overall winner); Leshala restaurant (Soweto); imbokoto guest Lodge and Spa (Bronkhorstpruit); usiba Lodge (Magaliesburg); and Mount Zion tours (Johannesburg). Vaalnest Boutique Hotel was supported by gta to participate in the international tourism Bourse (itB) in germany in March 2011, and continues to represent the province at the national eteya awards.

the gta hosted four Business to Business network Sessions in ekurhuleni municipality, Soweto, West rand municipality and Sandton during the Meetings africa 2011.

to enhance transformation of the tourism sector, gta printed 10 000 The Business of Tourism booklets, and there are Starting a Tour Operator, B&B/Guesthouse, Arts and Craft, Restaurant/Eating House and Travel Agency publications to address the information gap of starting and operating a tourism business. these were distributed at the gta, regional information offices and at the tourism awareness Workshops hosted by gta

gta is also involved in the development of the gauteng Birding route, the Meadowlands route and the yeoville tourism route.

4.2.2 infrastructure and investment Development

gta identified eight community-based tourism projects in gauteng. these projects were submitted to the national Department of tourism for funding consideration, under the Social responsibility implementation Programmes (SriP). the SriP fund financially supports tourism projects that are labour-intensive and community driven. the eight projects are:

•PuleAceNtsoelengoeSoccerMuseum and academy (West rand).

•DonaldsonDamTourismFacility (West rand).

•KatlegoCulturalFacility(Westrand).

•MetswedingArtandCraftincubator and Centre (Metsweding).

•RatandaResorts(Sedibeng).

•SedibengBirdingRoute(Sedibeng).

•BoipatongMassacreSiteTourismDevelopment Projects (Sedibeng).

•VuvuzelaEatandSleep(Metsweding).

the tourism Signage Project was also implemented and 74 tourism signs were installed in ekurhuleni and Metsweding Municipality. this initiative was aimed at enhancing tourism spread and accessibility to tourism products located in these areas.

4.2.3 industry Partnershipsgta supported the Book-a-guesthouse Programme, which is implemented in partnership with Southern Sun Hotels. Project beneficiaries are 34 B&Bs/guesthouses from Johannesburg, tshwane, Zuurbekom, Sandton,

Section 4: Report on the Performance of Programmes against the Approved Plans continued


ekurhuleni and Midrand. the project is aimed at capacity building, mentoring and creation of market access for these B&Bs/guesthouses.

gta participated in the following industry workshops and conferences:

•ProductandEnterpriseDevelopment Committee.

•TourismInvestmentandinfrastructure Summit.

•TourismBBBEEFocalPointCommittee.

•GautengTourismSignsandLiaisonCommittee.

•NationalTourismInvestmentForum.

•TourismBusinessNetworksForum.

4.3 PROGRAMME 3: DESTiNATiON MARKETiNG

the purpose of the Destination Marketing unit is to participate at business and trade exhibitions, including leisure tourism, both internationally and domestically. the unit also hosts site inspections and partakes in various bids and tenders in an effort to win future events to be hosted in gauteng.

the key marketing activities during the past year were mainly 2010 fifa World Cup-related activities and activation, thereby targeting a specific marketing approach. the unit optimally marketed, promoted and positioned gauteng as a global tourism destination in a way that sought to maximise the socio-economic value of 2010 fifa World Cup for the primary benefit of gauteng people.

the unit approached the aggressive marketing by leveraging the 2010 fifa World Cup to spread the economic and social benefits beyond gauteng; create awareness for brand gauteng as the gateway for leisure, culture, tourism, competitive sport, trade and investment; capture non-traditional source markets, who are “soccer mad”, in order to sustain repeat visitors; influence the industry players to adopt practices that positively contribute towards entrenching the culture of service excellence in the province; ensure enterprise and product development that leads to job creation; and mobilise the gauteng public at large as well as

tourists, ensuring their involvement and active participation in the fifa World Cup showpiece.

Being a top contender for attracting tourists is one of the province’s well-known successes, and gauteng was a prominent host of the World Cup – it hosted the opening and final matches as well as the closing ceremony, and provided 19 team-based camps and practice venues. the unit, being confident, managed to implement innovative and effective marketing strategies to position gauteng as a distinct and competitive tourist destination. awareness was raised of gauteng’s experiences and product offerings. this will grew tourism arrivals and spend and defended gauteng domestic market share in 2010.

In a province that is already sport-mad, the tournament enhanced interest in sport in general, and in soccer in particular.


the tourism sector is a major area for growth and development in the years beyond 2010, and the Destination Marketing unit will continue positioning gauteng as a premier global sporting, cultural and business events city. again, we have created everlasting partnerships with venues, tertiary institutions and professional organisers to grow gauteng’s business and event tourism industry through various programmes.

4.3.1 Business Tourismtourism has emerged as a dominant tool for economic growth, and good niches exist in business tourism for developing and transitioning economies. Business tourism is one of the gta’s focal points and the aim of our programmes is to generate high-yield business by attracting, developing and supporting business tourism to gauteng. the gta actively leveraged the fifa World Cup to strengthen marketing and promotion efforts, and targeted investors, associations, governments and corporate events planners from gauteng, South africa, africa and internationally to showcase what gauteng has to offer; a kaleidoscope into the tapestry of the continent’s culture, at the same time making visitors feel at home.

the unit hosts site inspections to famaliarise itself with new establishments in the industry – be they new hotels, restaurants, spa retreats or refurbished experiences, etc. the unit also partakes in and supports various bids and tenders in an effort to win future conferences and events to be hosted in the province, both international and african.

the Destination Marketing unit focused on growing business tourism as the marketing platform for africa’s business tourism industry. Support to city bureaus, conference venues, professional conference organisers, event planners and associations initiating bids, and support for domestic and international


conferences, continued during the period under assessment. assistance varied per conference-support requirement (see table below):

Pre- anD PoSt-BiD aSSiStanCe

ConVention PLanning SuPPort

on-Site eVent SerViCeS

BuSineSS touriSM aSSiStS CLientS WitH:

Bid presentations Site inspection Visitor information booths/desks

Sourcing great ideas for corporate events and incentives

Bid promotion material

introduction to service suppliers

Welcome packs and room drops Welcome desksWelcome reception (facilitating sponsorship)

Locating that perfect special event or conference venue

Bid site inspection (the bureau can host three institution of Scientific research Society delegates for a maximum of three nights and four days, which includes all accommodation, transfers, tours, meals, site visits and facilitation of government interactions). flight arrangements partnership

Public relations supportDestination web links to conference websiteMarketing the destination at the conference the previous yearDistribute press releases

Hosting of ViP delegatesProvide support stafffacilitate tours

information provision on support services and professional local service Providersaccommodation optionsSite inspectionsDestination informationMarketing intelligence

Building attendance

Post-event servicing Marketing collateral

Delegate boosting – increase the number of delegates

Post-event evaluation

facilitation of stakeholder engagement

Conferences supported with bidding include: World Junior Chamber (2012); CoP17 (2011); World Conference on tobacco (2012); international Harm reduction association (2012); airport Cities Conference and exhibition (2013); international embryo Society annual Conference (2013); Junior Chamber international Meeting (July); Blue iQ ultra-Marathon (September); Sascoc (april); Moshito exhibition and Conference (September); trade and investment africa exhibition and Convention (november); nepad (november); gauteng economic Development agency (geda) international investor interaction (april, May, June, July); gauteng future Championship international u17 (January 2010); Meetings africa (february 2010); national transplant games; incosai Congress and exhibition; World information technology and Service alliance; and Johannesburg international Stamp Conference (Philatelic Services), etc.

the gta participated at Meetings africa from 21 to 23 february 2011 at the Sandton Convention Centre. Meetings africa is the only business tourism show on the continent and is the marketing platform for africa’s business tourism industry. this exhibition has grown over the years, attracting and generating high-yield businesses opportunities to the province. the number of people hosted with a view to concluding meaningful conference and meetings


agreements has grown accordingly. gta co-hosted a golf day during this year’s session and organised media tours and pre-/post-conference tours, all with the aim of sustaining the growth of gauteng’s domestic tourism market. the Destination Marketing unit participated in imex and eiBtM, as they are the main international exhibitions in the association and incentive market. through these business-exchange programmes in different channels, gauteng has grown from raising awareness to converting awareness to real business.

in 2004, the gta became a member of the international Congress and Convention association (iCCa), one of the most prominent organisations in the world of international meetings. it is the only association with a membership representing the main specialists in handling, transporting and accommodating international events. Membership has given gta access to iCCa’s database of over 800 members in 80 countries. in addition, the growth of gta’s destination marketing strategy was advanced through the attendance of an iCCa and SaCCi conference aimed at advancing professionalism in meetings management across all sectors of the industry.

Business tourism messages are advertised in the Meetings, incentives, Conferences and exhibitions magazines; Business Destination; international publications; Conference, Exhibitions & Events Guide; and local print media.

4.3.2 Trade Events Marketingthe economic impact of events marketing throughout the region is evident, while benefits to society are equally important. the hosting of signature events increases direct economic income to the economy of gauteng, and contributes indirectly as temporary employment is created.

events supported by the gta included the Standard Bank Joy of

Jazz; Pale ya rona Carnival; african Women’s football Cup (Caf); africa Day Celebrations; Vaal Meander Wine route; gauteng fashion Week; World festival of youth and Students, etc. at present, events contribute an estimated r1-billion to the provincial economy and, in order to boost this further, gauteng liaised with a major tour operator in Kenya, nigeria and Botswana with a view to attracting more jazz lovers from africa

Continued strengthening trade relations went well with the airports Company South africa (acsa), South african airways (Saa), British airways, taM, Mango airline, i-Point and i-Hub. this mutual relationship has led acsa to allocate two locations to the authority for expansion of its destination-marketing initiatives. the two locations will serve as an information dissemination point and an office to be shared with geda. the office will also serve as the greeting point for future events as mandated by the office of the premier.

the authority entered into partnership with i-Point – a touch-screen platform for SMMe and upcoming business entrepreneur marketing exposure that is placed at strategic locations all over gauteng, such as or tambo international airport. this is an information device where individuals are able to access tourism information.

gta is also in partnership with i-Hub, which is a company responsible for dissemination of information at various malls and airports. this collaboration is utilised to extend the authority’s information points.

gta partnered with trade stakeholders to promote gauteng experiences. the campaign “amazing Place gauteng” was a promotional initiative supported by Chevrolet Captiva and Kaya fM, which saw eight local celebrities formed into four groups and sent out for a two-day adventure where clues were planted in six of gauteng’s top tourist destinations.

the television series was broadcast on DStv bouquet channels (Mzansi Magic, africa Magic and africa Magic Plus) and SaBC in november.

the objective of this marketing exercise will yield the following:

•Building,creatingandmaintainingawareness of gauteng’s tourism routes, products, attractions and experiences;

•Demystifyingthenotionthatgauteng is just a concrete jungle and instead entrenching the province as a tourism destination with a diversity of attractions and packages for visitors;

•Marketingaregionallyrepresentative tour package that can be experienced in a day, which covers heritage, culture, adventure sports and biodiversity;

•Leveragingthemarketingmomentum achieved by hosting the 2010 fifa World Cup;

•PositioningGautengasacommitted tourism agency communicating positive messages about the province to ensure ongoing communication between mega-events.

trade partnerships and events, which have the potential for creating product awareness offerings, increasing spend, improving seasonality and contributing to economic development within the province, continued to be a priority during the 2010/11 financial year.

4.3.3 leisure TourismLeisure tourism aims to promote and activate campaigns that highlight and showcase gauteng’s leisure-based products to identified target markets. Leisure tourism further aims to create awareness of the gta’s various campaigns through advertised programmes and public relations.

on the local front, exhibitions undertaken during the period included: the rand Show (april) – 11 action-packed days of exhibition


The World Travel Market show, in particular, indicated that a growing number of companies viewed the province as a destination in itself rather than part of a round trip to South Africa.


where families enjoy a great day out; tourism indaba exhibitions (May); tourism month campaign – amazing Place gauteng (September); major tour operators hosting programme (april, May, June, october); school competitions (June, november); and the 2010 fifa international and Local Media roadshow and stadia site inspection (april to July2010).

on the international front, the authority participated in the african tourism Workshop (august/September). this workshop aimed at educating the travel trade in african countries about the products available in South africa and gauteng. it provided a stimulating environment for trade partners to look at fresh approaches to product development, dealing with barriers and to build stronger relationships.

the gta also participated at the World travel Market (november) and itB (March). these are business-to-business exhibitions staged annually in London and Berlin respectively, providing tourism with a unique opportunity for the whole global travel industry to meet, network, negotiate and conduct business. Participants also get the opportunity to promote their destinations to quality travel agents in the united Kingdom, europe and worldwide. the World travel Market show, in particular, indicated that a growing number of companies viewed the province as a destination in itself rather than part of a round trip to South africa. a meeting with tripadvisor and City film production company in germany at the itB in Berlin resulted in gta becoming part of their marketing initiatives for 2011/12.

the authority plays a key role in creating an enabling environment for regions, communities and private-sector stakeholders to market their offerings optimally within the destination-marketing framework and strategy.

to this effect the authority collaborated with the Cradle of Humankind World Heritage Site, (CoH WHS) and participated at the itB, targeting the high-value international market in positioning destination gauteng. this is informed primarily by a number of annually produced South africa-inbound international tourism reports, including the grant thornton Demand research report and the Sa tourism international tourism growth Strategy, as well as by monitoring international tourism.

the strategic objective of this partnership was aimed at:

•Creatinginternationalbrandawareness of the CoH WHS by co-exhibiting tourism trade – specifically buyers and consumers of foreign tourism products globally;

•Attendingpre-scheduledmeetingstargeted at tour operators and travel agents;

•Mediacommunicationforbrandretention and exposure through the Harry the Hominid activation;

•Maintainingstakeholderengagement and relationship-building with strategically targeted role-players, e.g. Sa tourism offices in germany, united States and united Kingdom.

the itB provided a unique platform for communication, renewing contacts, establishing new trade links and sealing many business deals. this year, especially, the germans displayed greater willingness to travel to South africa, and targeted key objectives were realised.

the gta plays a key role in creating an enabling environment for regions, as well as uncovering tourism product synergies and joint marketing efforts. in this regard, the launch of the Harry the Hominid promotion at the itB was a great success. attendants were encouraged to pose for an evolutionary picture that depicted a series of hominids. this activation

brought many participants to the gta stand and also impacted on the sustainability of our regional tourism campaigns. Various collaterals were displayed at such exhibitions to promote these sectors.

During the year under review, the gta continued with its trade and media hosting campaign, welcoming groups from africa, asia, india, europe, america, australia, the uK, germany, france and russia. it further hosted programmes aimed at educating and creating exposure to trade and travel media and potential meeting planners, both local and international, to encourage visits and publicity of the destination. the authority played host to a russian television crew (april); indaba pre- and post-tours (May); gagasi fM and Lesedi fM journalists on a gauteng fact-finding mission (november); and an italian journalist (December).

for the authority, it is important that the benefits of bringing tourists to the province are available across the entire tourism value chain. We believe that such hostings help identify opportunities and provide leads that will not only grow tourism within the province, but also help to grow and diversify our product offerings.

4.3.4 information Dissemination

advertising has become an indispensable function in tourism business due to its cut-throat competition through mass production. it also helps in our information-dissemination efforts. the communications team provided media communications support in all the marketing initiatives mentioned above, including interview facilitation on various radio and tV channels. the authority continued its marketing and promotional initiatives on major platforms such as the Southern African Tourism Update, Solomon’s Guide, Best of Africa, online directory brochures and classifieds, Leisure Golf SA, the Brabys online business


directory, Explore South Africa, City film production company, and in tourism directories.

the Saa video series used to promote the province on international flights was extended, and Phinda futhi Productions began producing provincial promotional videos with subtitles for domestic use.

the face-to-face channel – visitor information centres – ensured that visitors get first-hand information about the province from all identified strategic points. the four information kiosks, located in Sandton, rosebank, or tambo international airport and newtown, continue providing information services to visitors through telephone, email, walk-ins and mobile support.

Visitor information centres (ViC) continued assisting an average of 100 000 visitors per month – 600 000 during the six-week-long 2010 fifa World Cup – marketing private-public partnerships, sustainable development and service excellence in tourism. the ViCs also serve as a source of information and feedback to the authority.

the website was revamped and relaunched on 14 December 2010. after its relaunch, the site saw an unprecedented traffic flow from 8 227 visits to the site in february to 10 690 in March, translating to an effective increase of 29.94%. Page views also grew to 28 390 from 19 447 – a 45.99% increase. time spent on www.gauteng.net also improved from 2:20 in february to 2:44 in March 2011.

With regard to content, most of the traffic was directed to the homepage, the itB Harry the Hominid campaign competition page, and the attractions a-Z overview.

in terms of city overlay, domestic traffic was dominated by Johannesburg, Sandton and Pretoria, with the top three centres being

randburg, Constantia Park, and Parktown; Cape town, Durban and Berlin followed.

the “i love gauteng” facebook page http://www.facebook.com/pages/i-love-gauteng/137072063009742 registered 198 people liking it.

the visitgauteng twitter account http://twitter.com#!visitgauteng had 232 followers, followied 393 accounts and appeared in 10 lists.

the gauteng flickr page http://www.flickr.com/groups/1558671@n21/ had 737 items posted on the group pool and 117 members.

the gauteng you tube channel http://www.youtube.com/user/visitgauteng has 26 subscribers.

4.3.5 Small, Medium and Micro Enterprises (SMMEs) Development

the unit continued actively promoting SMMes by providing support for their products, special projects and advertising; they were included in the gta’s publications and platforms were provided during exhibitions both nationally and internationally. a total of 91 SMMes were supported during 2010/11. Support was provided for the following programmes: gauteng 2010 Summit (april); tourism indaba (May); and 2010 fifa World Cup pre- and post-tours and hosting programmes. other forms of support included the procurement of services from SMMe service providers.

4.3. 6 Advertisingadvertising has become an indispensable function in the tourism business due to its cut-throat competition through mass production. it also helps in information-dissemination efforts. the authority continued its marketing and promotional initiatives on major major platforms such as the Southern African Tourism Update, Solomon’s Guide, Best of Africa, online directory

brochures and classifieds, Leisure Golf SA, the Brabys online business directory, Explore South Africa, etc.

4.3.7 Amazing Place Gautengamazing Place gauteng, a promotional initiative supported by Chevrolet Captiva and Kaya fM, saw eight local celebrities form into four groups and head out for a two-day adventure to discover clues planted in six of gauteng’s top tourist destinations.

the television series was broadcast on DStv bouquet channels (Mzansi Magic, africa Magic and africa Magic Plus) and SaBC in november.

the objective of this marketing exercise will yield the following:

•Building,creatingandmaintainingawareness of gauteng’s tourism routes, products, attractions and experiences;

•Demystifyingthenotionthatgauteng is just a concrete jungle and instead entrenching the province as a tourism destination with a diversity of attractions and packages for visitors;

•Marketingaregionallyrepresentative tour package that can be experienced in a day, which covers heritage, culture, adventure sports and biodiversity;

•Leveragingthemarketingmomentum achieved by hosting the 2010 fifa World Cup;

•PositioningGautengasacommitted tourism agency communicating positive messages about the province to ensure ongoing communication between mega-events.

4.4 PROGRAMME 4: QuAliTY ASSuRANCE

the registrar within the Quality assurance unit is mandated by the tourism Second amendment act, no. 70 of 2000, to register, promote and train tourist guides as per the promulgated sections of the act. the review of the legislation aimed at also



including the possible registration of other listed activities/amenities in the act still under discussion. this would allow for an expanded registration system that would culminate in an integrated and comprehensive database of the provincial offerings.

the office of the registrar is tasked with ensuring an efficient and effective registration of tourist guides and the provision of a capacity-building support system.

4.4.1 TrainingForeign languages

to provide an excellent service using languages predominantly spoken around the world by visitors and to provide an opportunity for tourist guides to understand the culture related to these languages.

• 10Germanlearnersleveltwoandthree trained from october 2010 to March 2011.

• 10Spanishlearnersleveltwoandthree trained from october 2010 to January 2011.

• ThreePortugueselearnerslevelthree and four trained from July 2010 to September 2010.

• 15Frenchlearnersleveltwoandthree trained from october 2010 to february 2011.

Service Excellence

Workshops, each with an audience of up to 4 000 delegates and including a train-the-trainer component, were conducted from 3 to 7 May 2010 in Sandton and gallagher estate. this training aimed at enhancing professionalism on the frontline. a figure of 3 606 frontline staff were trained on tourism service excellence.

French language Training

thirty previously disadvantaged persons were selected to undergo french language training conducted by alliance française in Parkview and Soweto in partnership with ill de france and gta. training was from May 2009 to May 2010.

Tourist Guide Training

the objective of the project was to oversee a dedicated programme geared towards tourist guides being able to set the core visitors’ experiences in gauteng. twenty-nine PDis started training in november 2009 and completed training in May 2010.

4.4.2 Tourist Guides Directoryan amount of 1 800 tourist guide directories were produced, printed and distributed from april 2010. the directories were printed for the build-up to the 2010 fifa World Cup. the directories were distributed to tour operators, accommodation establishments, tourism partners as well as embassies.

registered guides were showcased in the directories, which featured their guiding qualifications, knowledge of foreign languages and specific site expertise.

4.4.3 Registration and Re-Registration of Tourist Guides

a figure of 3 600 tourist guides have been registered to date, which included new regisration and re-registration applications in preparation for the World Cup. the demand for foreign language guides increased. Many guides who trained and acquired foreign language skills updated their records accordingly.

4.4.4 Bilateral French Programme (ill de France)

Programmes conducted by the gta and french embassy from 15 to 20 april 2010 covered technical knowhow and good practices, and the matching of wine and dishes. thirty PDis were selected to undergo french language training conducted by alliance française in Parkview and Soweto in partnership with ill de france and gta.

4.4.5 Gauteng Guides Association (GGA)

the association represented South africa at a tourist conference in

estonia (tallinn). the gga was part of the South african delegation that presented a bid to host the next World federation of tourist guide associations convention in 2013 in South africa (gauteng). the two gga representatives were sponsored by gta. the bid was awarded to Macau.

4.4.6 Annual international Tourist Guide Day

gauteng, in partnership with the national Department of tourism, hosted the national international tourist guide Day celebrations on 21 february 2011. the event took place at Voortrekker Monument and included a tour of Pretoria prior to formal proceedings.

Deaf tourist guides were provided a platform to present their challenges to the audience. this initiative was a partnership between DeafVision and the gta and was the first of its kind in the country. the chairperson of the gta board, Mr Khehla Mthembu, delivered a keynote address that highlighted the importance of tourist guides in the country. others speakers included the area representative of the World federation of tourist guide associations, as well as representatives from the national Department of tourism and deaf tourist guides.

registered tourist guides rendered free guiding experiences to disadvantaged communities, tourism partners, youth and other stakeholders.

4.4.7 Tourist Guide Database

tourist guide database training was scheduled for 17 March 2011. training was facilitated by the national Department of tourism to align all nine Provinces into one centralised system.

the purpose of a national system is to promote a more effective, efficient and accurate database. the national database will maintain consistency



among all nine provinces and reduce a labour-intensive processes and paper wastage.

4.5 PROGRAMME 5: RESEARCH AND iNFORMATiON COMMuNiCATiON TECHNOlOGY

the purpose of the programme is to provide strategic industry insights that underpin organisation-wide decision-making processes and provide technology platforms as a strategic business tool that seeks to make destination gauteng globally competitive and the gta the organisation of the future.

4.5.1 Research 4.5.1.1 Tourism indaba Tracking

Survey

the execution of research work was done within the context of the Strategic research Plan. Due to persistent extreme financial constraints, all work undertaken by the unit is handled by the Strategic research unit (Sru). to that end, the Sru could only manage to execute the annual tourism indaba tracking Survey in May 2010, which was being conducted for the fourth successive year.

the objective of this tracking survey was:

•ToprofileaGautengIndabastandvisitor;

•Togaugetheintentiontoattendthe show; and

•Tomeasuresatisfactionlevelsofthe visitors post-indaba.

4.5.1.2 indaba SMME Assessment Survey

in addition, the SMMe assessment Survey also targeted small operators that the gta, in partnership with the national Department of tourism and other partners, sponsor to attend the indaba event with a view to exhibiting their businesses.

the aim is to use their feedback to evaluate the extent to which they benefit from the training they receive

ahead of the exhibition, plus the benefit of participating in the exhibition.

4.5.1.3 Acquisition of Global Recession Report

the strategic objective for the acquisition of the global recession report – compiled by a globally renowned team of tourism economists and researchers at tourism intelligence international – was to not only gauge the extent of the global economic downturn impact on the tourism industry, but also to acquire insights on how best to respond to this.

4.5.1.4 Hosting of Temple university’s School of Tourism and Hospitality Professors

through the uS-based travel and tourism research association (ttra), of which the gta is an associate member, the gta facilitated a visit of three professors from temple university’s School of tourism and Hospitality. the purpose was to expand the base of beneficiaries from this visit as opposed to just one person attending an international conference. this was done against the backdrop of temple university’s immense contribution to the tourism research body of knowledge through its strong links to the ttra, which is endorsed by the unWto. regions and some universities participated in the one-week programme and there are ongoing partnerships and engagements emanating from this visit.

4.5.1.5 Gauteng Tourism Sector Strategy

the research unit was charged with the responsibility of coordinating the development of the gauteng tourism Sector Strategy (gtSS). this process entailed a full review of the implementation of the gauteng tourism Development Strategy developed in 2007.

the development of the new strategy was informed by some of the key global, national and provincial developments. these included, among others, the 2008 global economic downturn; the development of the national tourism Sector Strategy; the development of a new national economic strategy – the new growth Path; and the development of the gauteng employment growth and Development Strategy.

finally, the research team collaborated with other strategic partners to conduct the Joy of Jazz impact assessment Study. Joy of Jazz is arguably the biggest event on gauteng’s annual events calendar. this was the fourth instalment of an analysis of the impact of the Joy of Jazz on tourism in the province.

4.5.2 information Communication Technology (iCT) and e-Business

the financial year under review saw the continuation of a strategy that streamlines all iCt operations. the e-business function was fairly successfully executed until the e-business manager resigned during the course of the year. this position was not filled due to a moratorium on new staff hire, which adversely affected the performance of the portal. a service provider was subsequently enlisted, which resulted in a refreshed look and feel of the portal and a heightened focus on social networking.

the web portal and query-based booking engine received a greater focus to ensure that a design and operational structure is achieved that could accommodate all the regions in the province. Social media has been harnessed to ensure that the gta obtains maximum exposure in the travel industry locally and internationally. the phenomenal growth in social networking has afforded gta the best returns on web marketing.


The implementation of responsible tourism planning (RTP) as indicated in the previous years has been ongoing, together with the distribution of RTP manuals to various tourism stakeholders at a local level.

Based on the results of the quarterly iCt surveys, users are satisfied with the services being rendered and technology provided.

4.6 PROGRAMME 6: iNSTiTuTiONAl RElATiONS

to ensure effective coordination, leadership and cohesion of the gauteng tourism industry; to promote responsible tourism resulting in structured partnerships; to ensure enhanced integrated destination planning, community beneficiation, key stakeholder participation and visitor safety and security.

4.6.1 The implementation of the Responsible Tourism Planning Programme

the implementation of responsible tourism planning (rtP) as indicated in the previous years has been ongoing, together with the

distribution of rtP manuals to various tourism stakeholders at a local level. in addition, lobbying work is also continuing to influence local authority planning systems to reflect more inclusive projects through their integrated development plan (iDP) processes. already some of the regions are starting to adopt the principles of responsible tourism planning. reprinting of the manuals was put in abeyance to allow for a reprioritisation process and 2010 fifa World Cup, but further distribution of the pamphlets as guidelines for proper inclusive planning continued.

the implementation of the gauteng tourism institutional framework, which is meant to address the misalignment of regional and local tourism plans, continued as planned. the following is an indicative regional progress report of the gauteng tourism institutional framework arrangements:

4.6.1.1 Tshwane Metro

tshwane Metro processes continued to take longer than anticipated. Last year’s council resolution for the establishment of the regional tourism organisation (rto) was amended. in addition to progress achieved last year, another council resolution was taken affecting the status of the rto entity. Currently progress has reached a stage whereby a service provider to facilitate the rto set-up and establishment has been appointed by the tshwane Metro. the process now requires that an interim structure be facilitated soon, comprised of the key role-players and stakeholders. Lastly, in anticipation of the proposed alignment of Metsweding District Municipality borders into tshwane Metro, the rto has already started to engage tourism-related stakeholders and role-players from the identified areas for facilitative work and integration under the bigger tshwane rto entity.


4.6.1.2 West Rand

an earlier memorandum of undesrtanding (Mou) signed between the gta and West rand District Municipality after negotiations with stakeholders gave the regulatory framework on the processes of the rto establishment.

Based on this Mou, the implementation of the gauteng tourism institutional framework has started in earnest. grant thornton is the preferred service provider responsible for the facilitative work within the West rand District Municipality. as agreed earlier, the rto institutional arrangements will be located within the broader framework of the West rand Development agency as one of the portfolio sub-sectors. By the end of this current financial year, the appointed service provider was busy engaging local and regional tourism stakeholders on the regional specifics and analysis status quo, which would result in a draft report for engagement and council support. Lastly, the process is at a stage of establishing an interim steering committee to drive the tro development process forward.

4.6.1.3 Sedibeng District

in the Sedibeng District Municipality, the process to implement the framework has reached a stage whereby the executive mayor launched an inclusive interim rto. the interim rto then appointed an inclusive regional/local project steering committee to drive the process leading to the establishment of a fully fledged rto. Currently the steering committee has produced some regional business plans for support through the Sedibeng District Municipality. in turn the steering committee has submitted tourism proposals for support to gta through the office of the Ceo.

4.6.2 Collaboration Efforts facilitation work has been done to formalise agreements to identify collaboration efforts with, among others: the provincial safety cluster;

the provincial gauteng gateway 2010 teams (including technical stream, marketing promotions and events stream, and development and mobilisation streams); the Southern africa tourism Services association; and regional and local tourism associations.

groundwork has been laid for a successful inter-governmental relations framework, which was done collaboratively with the regions. the ultimate aim for this would be to have service level agreements signed between the gta and the five gauteng regions on key areas of tourism relevance.

4.6.3 Provincial Joint Operations

the gta continued to be a key member of the Provincial Joint operations Committee (ProvJoints), which is a platform to facilitate and coordinate, among others, prioritisation and plans for the broader safety and security cluster in gauteng, linking it to national safety priority plans. During the 2010 fifa World Cup, the gta, through the ProvJoints on safety and planning, was afforded space to work within the provincial emergency operations set-up. the set-up was stationed at Brixton. gta also employed some extra personnel as safety volunteers to work shifts on the 24-hour emergency call centre.

initiatives that started the previous financial year to mobilise communities continued in the current year. as reported last year, the gauteng tourism operators’ association continued to grow, and it also assisted its members on leveraging 2010 economic activities.

Collaborative partnerships with industry stakeholders and role-players have led to numerous benefits, e.g. township tourism 2010 awareness beneficiation done with regional players enhanced product beneficiation.

inter-provincial attempts to formalise cooperation agreements with neighbouring provinces are afoot, and most of the collaborative areas have been identified and agreed to.

gta continued to create a number of regional/local tourism economic platforms with the aim of providing previously disadvantaged individuals and groupings an opportunity to mobilise and position themselves for economic mainstreaming activities.

Direct support was also given to tourism SMMes within the transport sector from tshwane with the aim of enhancing and exposing their business potential to the market.

4.6.4 Stakeholder Engagementon a monthly basis the gta also engaged in local community, stakeholder, and role-player awareness roadshows with the aim of providing as much information as possible. these moved from area to area, and were facilitated with the offices of the premier and MeC. Such initiatives are mostly followed up by desired organisational intervention initiatives as indicated or identified. the purpose of these is to raise tourism awareness among the key stakeholders and role-players. in this current financial year we visited all six gauteng regions in partnership with key role-players and stakeholders.

4.6.5 Tourism Safety the tourism safety and support programme continued to grow and a number of achievements were realised. the primary mandated/leading stakeholder continued to be the South african Police Service through the safety cluster arrangement. a key tourism safety awareness programme was implemented through private-sector partnership with the africa event Management Company, and provided very useful tools needed by tourists.

on a regular basis the gta participates on the Provincial Joints



operations Committee, which is a stakeholder platform dealing with safety planning matters.

4.6.6 Green Tourism imperatives

in a strategic engagement session an agreement was reached that green tourism imperatives, which are part of the broader responsible tourism planning initiatives, should be elevated and the industry should be encouraged to go green. thus a strategy will be developed in the next financial year.

Coordination efforts are also ongoing with national and provincial spheres of government. regional plans through stakeholder engagement sessions have improved greatly during this period to ensure synergy and seamless operations.

the aim is to have inclusive provincial tourism agenda plans informed by various regional experiences, and plans that are cognisant of stakeholder views and inputs.

4.7 PROGRAMME 7: CORPORATE AFFAiRS

the purpose of this programme is to provide effective leadership and strategic management and support in accordance with legislation, regulations, and policies; and to ensure appropriate support services to all other programmes.

the projects planned as indicated in the business plan were executed. these included a board strategic session held on 28 July 2010 to give input to the national tourism Sector Strategy; and to review and align the gta strategic plan and annual plan 2010/11 between the national tourism Sector Strategy and the gauteng employment and growth Development Strategy. furthermore a management strategic session was held on 28 and 29 March 2011 to finalise the strategic plan and the annual performance plan to include the new growth Path. the annual report 2009/10 was compiled, developed and printed.

the following board and sub-committee meetings were held in 2010/11:

•Fiveboardmeetings.

•Fourauditcommitteemeetings.

•Onedestinationmarketingcommittee meeting.

•Oneprocurementcommitteemeeting.

the board, together with the MeC, appointed a new Ceo, Ms Dawn robertson, with effect from 1 July 2010. also, the Department of economic Development appointed Mr Leonard Makgamathe to represent the department on the gta board for the period under review.

4.8 PROGRAMME 8: CORPORATE SERViCES – HuMAN RESOuRCES AND ADMiNiSTRATiON

the purpose of this programme is to provide effective leadership and strategic management and support in accordance with legislation, regulations, and policies; and ensure appropriate support services to all other programmes. the projects carried out during this period related to ongoing enhanced legislative compliance, employee benefits, staff development, and training and employee wellness.

4.8.1 Human Resources 4.8.1.1 Organisational Development

in order to identify gaps and build a motivated workforce, a climate survey, skills audit and competency assessment were conducted. Subsequent to these, feedback sessions and identified interventions will be implemented in the new financial year. this means the organisational development strategy is due for review, and the process to come up with a new strategy will also be given attention in the new year, subject to adequate budget. over and above that, proper interventions will be identified and implemented accordingly. the job grading system continued to be implemented.

4.8.1.2. Occupational Health and Safety

Continuing compliance in terms of occupational health and safety through appointed consultants and a gta Health and Safety Committee is operational. in this regard, meetings are convened on a quarterly basis.

4.8.1.3 Recruitment

recruitment of staff was suspended in anticipation of a realignment of functions initiated by the office of the premier for the entire province and an internal restructuring envisaged by the Ceo in consultation with the board. the restructuring process will ensure that the government is able to achieve the five-year strategic objectives and priorities that have been adopted by the Provincial executive Council. thus, no new appointments were made.

additionally, having looked at economic challenges as well as the Department of economic Development (DeD) realignment process, the board officially resolved to put emphasis on the decision to put all vacancies on hold. the moratorium also came in during the process where the premier is reviewing the mandates of the DeD and its agencies. the authority’s organogram remains unchanged and vacant positions will be filled on strong motivation. During the year, the position of Ceo was filled and the filling of other vacant positions will depend on the board.

4.8.1.4 Employment Equity

the gta employment equity plan is in place to support all recruitment that gta will undertake. the plan is reviewed constantly and remains relevant for five years. the employment equity report was submitted to the Department of Labour as legislated, and quarterly reports submitted to Statistics South africa as required. During the year under review, three members of staff were terminated, while the new Ceo was appointed in July 2010. no further recruitments were made.



the table below outlines the gta workforce profile for the year under review in terms of the occupational level and or categories.

WORKFORCE PROFilE1.1 the total number of employees (including employees with disabilities) in

each of the following occupational levels: note: a=africans, C=Coloureds, i=indians and W=Whites

occupational Levels Male female foreign nationals total

a C i W a C i W Male female

top management 1 0 0 1 0 1 0 0 0 0 3

Senior management 2 0 0 0 2 0 0 0 0 0 4

Professionally qualified and experienced specialists and mid-management

2 0 0 1 8 0 1 1 0 0 13

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

6 0 0 0 11 0 3 0 0 0 20

Semi-skilled and discretionary decision-making 6 0 0 0 12 1 0 0 0 0 19

unskilled and defined decision-making 0 0 0 0 2 0 0 0 0 0 2

total permanent 17 0 0 2 35 2 4 1 0 0 61

temporary employees 3 0 1 0 2 0 0 0 0 0 6

GRAND TOTAl 20 0 1 2 37 2 4 1 0 0 67

1.2 the total number of employees with disabilities only in each of the following occupational levels: note: a=africans, C=Coloureds, i=indians and W=Whites

occupational Levels Male female foreign nationals total

a C i W a C i W Male female

top management 0 0 0 0 0 0 0 0 0 0 0

Senior management 0 0 0 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists and mid-management

0 0 0 0 0 0 0 0 0 0 0

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

0 0 0 0 0 0 0 0 0 0 0

Semi-skilled and discretionary decision-making 0 0 0 0 0 0 0 0 0 0 0

unskilled and defined decision-making 0 0 0 0 0 0 0 0 0 0 0

total permanent 0 0 0 0 1 0 0 0 0 0 1

temporary employees 0 0 0 0 0 0 0 0 0 0 0

GRAND TOTAl 0 0 0 0 1 0 0 0 0 0 1


4.8.1.5 labour Relations

no labour disputes were experienced during the year. nehawu, the employees’ trade union, continued to practise its organisational rights within gta, while the final draft of the recognition agreement is in place.

two disciplinary cases were reported this year. one related to misconduct and performing unauthorised work on gta premises during working hours, and the other to misusing company resources. final written warnings were issued.

4.8.1.6 Performance Management

the performance management system is ongoing and new performance contracts were signed by all staff members and implemented. the annual performance reviews are conducted by end of March each year.

4.8.1.7 Policy Development and implementation

other Hr policies are revised throughout the year whenever necessary, resulting in new policies being developed, consulted on and implemented.

4.8.1.8 Skills Development and Training

employees update their individual personal development plans annually, which are taken into consideration when the training programme is developed and implemented. application of the gta study assistance scheme is ongoing and 14 staff members were assisted through this scheme during the period under review. the gta successfully continued to spend on training and developing its workforce – 1% of the payroll costs were spent in this regard. the gta aims to spend 2% in future. an amount of r134 000 was spent on assisting staff with further studies, while r50 000 was spent on employees’ short-term courses. employee wellness issues were all addressed.

4.8.1.9 internship Programme

the gta tertiary and school internship programmes continued developing the youth and promoting quality education and skills development aligned to the strategic objective of gta.

4.8.2 Office Administration

the purpose of this programme is to provide effective leadership and strategic management and support in accordance with legislation, regulations, and policies; and to ensure appropriate support services to all other programmes.

this section ensures that staff members are housed in a conducive working environment and provides administrative support to the organisation.

4.8.2.1 Visitor information Centres

the Sandton City visitor information centre (ViC) lease was renewed until 31 March 2011, with an option to renew. the or tambo international airport and rosebank kiosks are still located on the same premises. the revamping of the or tambo international airport ViC was delayed due to negotiation processes during the 2010 fifa World Cup and for a request for a strategic location to meet gta’s business objectives.

4.8.2.2 Appointment of Service Providers

a tender process to appoint travel service providers was finalised and five were appointed from the positive feedback from the media advertisement of the bid.

4.8.2.3 Relocation of the Agency

the Department of economic Development issued a mandate to relocate all agencies, including gta, to 124 Main Street. Work streams wherein various logistical matters are organised were established to facilitate the move. gta will possibly be relocating during 2011.

4.8.2.4 Policy Development and implementation

all policies and procedures were reviewed and a gta business continuity plan (disaster recovery plan) was developed.

4.8.2.5 Office Maintenance and Security

gta continues to implement energy-saving measures and reduce telephone costs, which have decreased tremendously. additional security measures were implemented to control the exit and entry points to gta.

4.9 PROGRAMME 9: FiNANCE the purpose of the programme is to provide an effective financial management function, ensure the implementation of risk management and provide a strategic support function.

internal financial controls, policies and procedures are revised on an ongoing basis as and when the need has been identified. this is fully compliant with all applicable legislation and only implemented after the necessary approval.

4.9.1 Financial Reporting financial reporting is performed on a monthly basis with a full set of financial statements ready for disbursement to management and the DeD within the first week of the following month. the monthly financial management statements consist of a statement of financial performance, statement of financial position and statement of cash flows (also quarterly); notes to these statements and age analysis; as well as the budget deviation report and bank reconciliations.

4.9.2 Payroll AdministrationPayroll administration for the authority is a competency and responsibility of the finance Business unit. Payroll and salary structuring is treated as highly confidential, with the remuneration officer responsible for processing of information while being monitored and checked by the finance manager.


International tourism recovered fairly strongly from the global financial crisis and the economic recession.


SECTiON 5: PROviNCiALPerforManCe rePort

5.1 A GlOBAl PiCTuREinternational tourism recovered strongly from the global financial crisis and the economic recession. 2010 saw arrivals increase by 6.7% from the 4% decline suffered during 2009. the increase more than offset the decline caused by the economic downturn, with an additional 22-million arrivals over the former peak in 2008 (913-million).

uncertainty still dominated part of 2010, with ash clouds after the eruption of an iceland volcano in april slowing recovery. the sector gained momentum in June, and in particular growth was stronger during September and october. as illustrated in the above graph, all world regions recorded positive growth in international arrivals over 2009.

Africa – the region had exceeded global performance by recording a positive growth of 3.1% over 2008/09, while all other regions recorded negative growths. the picture looked different in 2010, with Middle east (14%) and asia and the Pacific (13%) recording the highest growth, while africa recorded a 6% growth in receiving a total of 49-million arrivals.

Americas – Were among the worst affected by the global economic crisis in 2009, resulting in a nearly 5% decline. the 2010 results showed strong recovery of 8%.

Europe – the region hardest hit by the economic crisis showed slow recovery compared with other regions, increasing arrivals by 3%.

Middle East – the region outperformed all global regions, recording a 14% increase in 2010. the growth is reported to be a consequence of intra-regional travel favoured because of high oil prices.

AsiaandthePacific – as the first region to start showing recovery from the global downturn, asia has been growing since, recording a double-digit growth rate of 13% in 2010.

International tourist arrivals

% C

ha

ng

e

15

10

5

0

-5

-10 Asia & the pacific

Americas Africa Middle EastEuropeWorld

-4

6.7

3

13

8

6

14

-5

-1.7

-4.9

3.1

-5.7

08/09 09/10

Provincial distribution: All foreign visitors

% s

ha

re o

f fo

reig

n v

isito

rs

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%EasternCape

KwaZuluNatal

Mpuma-langa

LimpopoWesternCape

Gauteng North West

NorthernCape

Free State

2009

2010

47.3%

49.4%

18.8%

18.6%

4.5%

4.4%

12.3%

11.8%

14.8%

14.1%

12.7%

13.0%

6.3%

6.6%

1.4%

1.2%

8.2%

7.3%

Arrivals growth performanceGauteng compared to South Africa 2009/10

Q1

9.9

Q2 Q3 Q4

15.5

10.6

15

18.9

34.79

20.9

25.63

South AfricaGauteng

Total foreign direct spend (excl. Capex) per province

spe

nd

in b

illio

ns

R35.00

R30.00

R25.00

R20.00

R15.00

R10.00

R5.00

R0.00

East

ern

Ca

pe

Kwa

Zulu

Na

tal

Mp

um

a-

lan

ga

Lim

po

po

We

ste

rnC

ap

e

Ga

ute

ng

No

rth

W

est

No

rth

ern

Ca

pe

Fre

e S

tate

2009

2010

12.8

9.4

28.6

14.3

9.7

27.6

24.5

30.7

0.0

5.1.1 Top 10 Arrivalsin the 2010 rankings of the first 10 destinations by international tourist arrivals and receipts, China has reinforced its position. China has overtaken Spain and now ranks third after france and the uSa in arrivals, while in terms of receipts it ranks fourth, overtaking italy. the only other change in the ranking by receipts came from Hong Kong (China), which climbed from 12th to ninth position. france continues to lead the ranking of the world’s major tourism destinations in terms of arrivals, and ranks third in receipts, while the uSa ranks first in receipts and second in arrivals.

5.1.2 international Tourism Receipts

in 2010, international tourism receipts are estimated to have reached uS$919-billion worldwide, up from uS$851-billion in 2009. in real terms (adjusted for exchange-rate fluctuations and inflation) international tourism receipts increased by 5% as compared with an almost 7% growth in arrivals, showing the close relation between both indicators and confirming that in recovery years, arrivals tend to pick up faster than receipts.

5.1.3 Top 10 international Tourism Spenders

the top 10 rankings of international tourism spenders shows China climbing to third position: it has multiplied expenditure four times since 2000, thus achieving by far the fastest growth in this category over the last decade. other changes in the ranking of international tourism expenditure include the rise of Canada and australia, to sixth and 10th positions respectively.

5.1.4 Prospects for 2011growth is set to continue in 2011 at a moderate pace. the unWto (World tourism organisation) predicts an increase in international tourist arrivals worldwide this year in the range of 4% to 5%.


Section 5: Provincial Performance Report continued

5.2 A NATiONAl PERSPECTiVE Prior to 2010, South african tourism could only report on foreign visitor arrivals as there was no way of separating day visitors from overall arrivals. in 2009, Statistics South africa for the first time was able to make the distinction between tourist and day visitor, and so started a data series for tourist arrivals that was aligned to the globally accepted definition of a tourist. as a result of this change, the results in this report are not comparable with previous reports.

South africa continued to outperform global tourism growth, which grew by 6.7% in 2010, while tourist arrivals to South africa grew by 15.1%.

5.2.1 Arrivalsthe number of foreign arrivals grew from seven million in 2009 to 8.1-million in 2010. the americas, and asia and australasia regions grew fastest in 2010, with growth of 37% and 34% respectively.

Regional Performance

Europe – Drivers of growth from europe were Portugal 51.9%, the russia federation 29.9%, Switzerland 25.2%, Spain 24% and Belgium 7%.

Asia and Australasia – grew by 34.6% with increase in all the markets in the region. China and australia posted the highest growths, with 62.3% and 30.4% respectively. tourist arrivals from asia and australasia were due to strong performance in China. taiwan and Singapore were the only markets in this region that did not record growth in 2010.

Americas – an additional 124 736 tourists from the americas visited South africa. the region grew by 37.8%. the 2010 fifa World Cup saw tourist arrivals from Mexico, and the growth in the “other” americas market was as a result of the 2010 fifa World Cup.

Africa – there was also a strong growth from africa. the largest source of tourist arrivals grew by 12.8% over 2009, and the region contributed an additional 651 763 arrivals. the air markets in africa grew by 14% in 2010, while the land markets in africa grew by 12.8%. growth in the africa land region was driven by growth from Lesotho and Zimbabwe. the strong performance from the other markets in the region was as a result of the fifa World Cup. the neighbouring Southern african Development Community continues to be the major source market, with Zimbabwe moving into first position ahead of Lesotho. Zimbabwe is the largest land market, while nigeria is the largest source market.

Middle East – Saudi arabia and uae were the only markets that recorded declines.

5.2.2 Repeater Rate and Purpose of Visit

only 13% of tourists who visited South africa in 2009 were first-time visitors – the rest had been to South africa once before. However, of the tourists who arrived by air, 47% were first-time visitors.

the biggest reason for coming to South africa was reportedly for visiting

friends and relatives (Vfr) – 2. 5-million tourists came to South africa for that reason. africa contributes largely to Vfr, with 27.1% of all african tourists coming to South africa for Vfr purposes. europeans and americans are holidaymakers, with 55% and 49.4%, respectively, coming on holiday.

a regional picture for purpose of visit shows africans as the main visitors for medical reasons. of the 646 000 total arrivals to South africa for medical attention, the highest numbers are from Mozambique (32%) and Lesotho (18.3%).

•Leisuregrewby12.7%

•Businesstravellergrewby18.3%

•Businesstourismgrewby9.9%

•Othergrewby25.4%

5.2.3 Bed Nights and length of Stay

the average number of nights spent in South africa in 2010 by all foreign tourists was 8.5 nights, an increase from the 2009 average of 8.3. although holiday tourists tend to stay for a longer period, the number of nights spent dropped by 0.2 nights in 2010. nights spent by business tourists declined by 0.3 nights while business travellers increased by 0.2 nights.

the number of visitors coming for other reasons increased by 1.7 nights. growth in arrivals was predominantly from visitors who were here for other reasons (25.4%), followed by business travel (18.1%).

By committing to creating an

environment that’s conducive to growing

domestic tourism, we will create

employment and income for Gauteng.


5.2.4 Revenuetotal foreign direct spend (tfDS) generated from tourist arrivals increased by r13.4-billion (22.6%), from r59.2-billion in 2009 to r72.6-billion in 2010.

the global financial crisis and the depreciation of the euro (-16.8%) and the pound (-13.6%) had a negative impact on the rand value of tourists from europe. europe accounted for r12.4-billion of total revenue, which is a 4.1% decline.

africa’s land market was the only region where average spends per tourist increased. as a result revenue from this market increased by 34%, from r35.1-billion in 2009 to r47-billion in 2010.

tfDS from the americas increased to r5,2-billion in 2010, compared with r3,9-billion in 2009, driven mainly by the increase in arrivals.

asia and australasian market increased to r4,5-billion, which is a 19.6% increase compared with 2009.


% C

ha

ng

e

15

10

5

0

-5



-4

6.7

3

13

8

6

14

-5

-1.7

-4.9

3.1

-5.7

08/09 09/10


% s

ha

re o

f fo

reig

n v

isito

rs

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%EasternCape

KwaZuluNatal

Mpuma-langa

LimpopoWesternCape

Gauteng North West

NorthernCape

Free State

2009

2010

47.3%

49.4%

18.8%

18.6%

4.5%

4.4%

12.3%

11.8%

14.8%

14.1%

12.7%

13.0%

6.3%

6.6%

1.4%

1.2%

8.2%

7.3%


Q1

9.9

Q2 Q3 Q4

15.5

10.6

15

18.9

34.79

20.9

25.63

South AfricaGauteng


spe

nd

in b

illio

ns

R35.00

R30.00

R25.00

R20.00

R15.00

R10.00

R5.00

R0.00

East

ern

Ca

pe

Kwa

Zulu

Na

tal

Mp

um

a-

lan

ga

Lim

po

po

We

ste

rnC

ap

e

Ga

ute

ng

No

rth

W

est

No

rth

ern

Ca

pe

Fre

e S

tate

2009

2010

12.8

9.4

28.6

14.3

9.7

27.6

24.5

30.7

0.0


% C

ha

ng

e

15

10

5

0

-5



-4

6.7

3

13

8

6

14

-5

-1.7

-4.9

3.1

-5.7

08/09 09/10


% s

ha

re o

f fo

reig

n v

isito

rs

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%EasternCape

KwaZuluNatal

Mpuma-langa

LimpopoWesternCape

Gauteng North West

NorthernCape

Free State

2009

2010

47.3%

49.4%

18.8%

18.6%

4.5%

4.4%

12.3%

11.8%

14.8%

14.1%

12.7%

13.0%

6.3%

6.6%

1.4%

1.2%

8.2%

7.3%


Q1

9.9

Q2 Q3 Q4

15.5

10.6

15

18.9

34.79

20.9

25.63

South AfricaGauteng


spe

nd

in b

illio

ns

R35.00

R30.00

R25.00

R20.00

R15.00

R10.00

R5.00

R0.00

East

ern

Ca

pe

Kwa

Zulu

Na

tal

Mp

um

a-

lan

ga

Lim

po

po

We

ste

rnC

ap

e

Ga

ute

ng

No

rth

W

est

No

rth

ern

Ca

pe

Fre

e S

tate

2009

2010

12.8

9.4

28.6

14.3

9.7

27.6

24.5

30.7

0.0

5.3 A PROViNCiAl PiCTuRE5.3.1 Arrivalsthe 2010 fifa World Cup boosted arrivals in gauteng, which increased by 678 312.25, a 20.5% increase over 2009.

this was the highest growth compared with other provinces. the northern Cape was the only province that suffered a negative growth, of -3.5%.

gauteng experienced exceptional growth during the second quarter, which is certainly attributable the arrivals for the 2010 fifa World Cup.


Section 5: Provincial Performance Report continued

the overall increase in arrivals to gauteng represented an increase in market share from 46.8% in 2009 to 48.1% in 2010.

Western Cape’s market share declined from 15.4% in 2009 to 14.3% in 2010, although the province received an additional 187 903 foreign tourists.

5.3.2 Bed Nights and length of Stay at the time of this report, the national bed-nights figure had not yet been released. However, the percentage relating to provinces had been determined. gauteng captured 37.1% of bed nights, while Western Cape, KwaZulu-natal and Mpumalanga recorded market shares of 29.9%, 9.4% and 6% respectively.

5.3.3 Revenuegauteng recorded the highest revenue, increasing from r21.6-billion to almost r 26.9-billion in 2010. growth in revenue was realised in all provinces except the northern Cape.


% C

ha

ng

e

15

10

5

0

-5



-4

6.7

3

13

8

6

14

-5

-1.7

-4.9

3.1

-5.7

08/09 09/10

Provincial distribution: All foreign visitors%

sh

are

of f

ore

ign

vis

itors

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%EasternCape

KwaZuluNatal

Mpuma-langa

LimpopoWesternCape

Gauteng North West

NorthernCape

Free State

2009

2010

47.3%

49.4%

18.8%

18.6%

4.5%

4.4%

12.3%

11.8%

14.8%

14.1%

12.7%

13.0%

6.3%

6.6%

1.4%

1.2%

8.2%

7.3%


Q1

9.9

Q2 Q3 Q4

15.5

10.6

15

18.9

34.79

20.9

25.63

South AfricaGauteng


spe

nd

in b

illio

ns

R35.00

R30.00

R25.00

R20.00

R15.00

R10.00

R5.00

R0.00

East

ern

Ca

pe

Kwa

Zulu

Na

tal

Mp

um

a-

lan

ga

Lim

po

po

We

ste

rnC

ap

e

Ga

ute

ng

No

rth

W

est

No

rth

ern

Ca

pe

Fre

e S

tate

2009

2010

12.8

9.4

28.6

14.3

9.7

27.6

24.5

30.7

0.0


SECTiON 6: GTAPerforManCe rePortfor the year ended 31 March 2011

the gauteng tourism authority (gta) is founded by the gauteng tourism act, no. 10 of 2001, which prescribes the function of the gta as follows:

To provide for the promotion and sustainable development of tourism in Gauteng; to establish the Gauteng Tourism Authority; to confer powers and functions and impose duties upon the Authority; to establish a tourism development fund; to provide for registration of tourist guides, tour operators, couriers,

accredited training providers in the tourism industry, hotels, conference centres, restaurants, designated tourism amenities and other accommodation establishments and possible future functions relating to these categories; and to provide for matters incidental thereto.

the gta’s performance report focuses mainly on its strategic objectives stipulated in the authority’s Strategic Plan 2010/11.

Key PerforManCe inDiCatorS

targetS % anD nuMBerS

PerforManCe / aCHieVeMentS

target aCHieVeD / not aCHieVeD

eViDenCe to SuPPort PerforManCe

reaSonS for VarianCe

number of campaigns organised, both domestic and international, for sourcing leads to achieve the set target to increase the number of visitors in the province.

a figure of 53% market share of international tourists visiting gauteng.

gauteng achieved a market share of 49.4% in 2010, recording a 20.6% growth over 2009. arrivals increased from 3,3-million in 2009 to 3,9-million in 2010 despite a change in methodology of calculating foreign tourists, introduced during the course of 2009/10.

not achieved.

Sa tourism report.

the province continues to perform consistently better than other provinces but the 53% market share was both high and flawed in approach. the new approach will focus on the percentage increase in arrivals performance.

gta planned to attend and host the following trade and consumer exhibitions locally and internationally:•Sixtrade

exhibitions•Threeconsumer

exhibitions

Participated in seven trade exhibitions, three consumer and two roadshow exhibitions: •Indaba–May•Fifteeneconomicshows

april – february 2011•FestivalforAfrica–June•WorldSportsDestination

– July•MoshitoExhibition•WorldTravelMarket–

november•InternationalCongress

and Convention association iCCa – october

•KenyaRoadshow–August•DubaiRoadshow–

november•EIBM–December•MeetingsAfrica–

february•ITB–March

target exceeded.

reports. Stronger industry partnerships, spurred by the cooperation spirit of the fifa World Cup.

PERFORMANCE AGAiNST TARGETS PER BuSiNESS uNiTBuSiNESS uNiT: DESTiNATiON MARKETiNG

STRATEGICOBJECTIVE: increase the number of international and domestic nights and average length of stay, to increase the foreign and domestic direct spend in gauteng by tourists.

MEASURABLEOBJECTIVE1: intensify marketing effort to increase international arrivals.








number of campaigns organised, both domestic and international, for sourcing leads to achieve the set target in increasing number or percentage of bed nights in the province.

a figure of 34% bed nights market share.

Performance: 24.8-million bed nights were spent in gauteng, an equivalent of 37.1% market share.

target exceeded.

Sa tourism reports.

gauteng benefited immensely from hosting the 2010 World Cup.

gta planned to attend and host the following trade and consumer exhibitions locally and internationally in the year under review:•Sixtrade

exhibitions

•Threeconsumerexhibitions

•Threeroadshows

Participated in seven trade exhibitions, three consumer and two roadshow exhibitions: •Indaba–May•Fifteeneconomicshows

april – february•FestivalforAfricaJune•WorldSportsDestination

– July•MoshitoExhibition•WorldTravelMarket–

november•InternationalCongress

and Convention association iCCa – october

•KenyaRoadshow–August•DubaiRoadshow–

november•EIBM–December•MeetingsAfrica–

february•ITB–March

targeted exceeded.

reports. greater effectiveness of campaigns and partnerships that drive them.

Section 6: GTA Performance Report continued

MEASURABLEOBJECTIVE2: intensify marketing efforts to increase number of bed nights in the province.


MEASURABLEOBJECTIVE3:intensify marketing efforts to increase the average length of stay in the province.







number of campaigns organised, both domestic and international, and sourcing leads to achieve the set target by increasing number of days tourists stayed in the province.

five average number of days spent by tourists in gauteng.

five average days spent by tourists.

target achieved.

Project approval and feedback reports available.

Province holding steady in terms of average length of stay by tourists.

gta planned to bid for, support and host conferences, events and corporates locally and internationally: •Twobids•Eightconferences•Sixevents/

corporates •Twelvemedia

hosting

Participated in three international bids (CoP 17, World tourist guide Conference and Commonwealth Chess Championships), supported 10 conferences. used a number of communications channels and Pr platforms as marketing efforts:•Radiointerviews•KayaFM,TalkRadio

702, ukhozi, yfM, Metro, Jacaranda, Metro fM, gagasi, P4

•Russiantelevisioncrew– april

•Spanishcrew–May•Tourismmonthmediatour

– September•BrazilianMedia–May•ItalianJournalist–July•Twenty-eightinternational

teams, eight site inspections: april – March

•Fifty-daymediatour–february

•USmusician’stourprogramme

•ThaiandUKmediatour•FIFA-accreditedtour

operators’ programme May, august, December, March

•FIFA-accreditedteamtours (six international teams)

target exceeded.

reports and minutes.

greater effectiveness of marketing and promotional campaigns that build and enhance the brand in markets where potential is greatest.








number of campaigns organised, both domestic and international, and sourcing leads to achieve the set target by increasing number of days tourists stayed in the province.

Contribute an annual average of 5% to the provincial economy.

five percent gross domestic product by region (gDPr) contribution by tourism (4.8% compared with 2009’s 5.3% due to methodological changes by Sa tourism) made up of r26.9-billion foreign tourism revenue and r3.9-billion domestic tourism revenue totalling r30.8-billion.

target achieved.

Sa tourism reports.

target was achieved under extraordinary circumstances of a revised methodology, which revised down the tourist arrival figures in order to separate overnight foreign tourists from day visitors travelling in and out from neighbouring border countries.

MEASURABLEOBJECTIVE4: intensify marketing efforts to increase tourism’s contribution to the provincial gross domestic product (gDP).



MEASURABLEOBJECTIVE5: enhance profile of brand gauteng destination.







number of events hosted in the province to enhance destination brand.

events hosted for the following categories:•Twoleisuretourism•Twobusiness

tourism

•Fifteeneventssupportedin leisure tourism

•Tenbusinesstourismevents supported

•Nineconferenceendorsements

•Threebidssupported•Usedanumberof

communications channels and Pr platforms to enhance the brand

•AfricaDaycelebrations– May

•FestivalforAfrica–June•StandardBankJoyofJazz

– august •Sho’tLeft–September•MoreteleJazz–August•EastandWestAfrica

family tour – november •TourismMonth–

September •Satsaconference•Africancountryfocus

seminars•Sacciconference•TradeandInvestment

africa exhibition•Nepadconference•Sportstourismconference•Sascocconference–

March•AfricanWomenCAF

tournament: october/november 2010/ 11

•YouthFestival–December2010/11

the above exhibitions, conferences and events led to destination awareness, hot leads and increased arrivals and yield.

target exceeded.

Project approval and feedback reports.

Stronger industry partnerships and improved cooperation in identifying collaborative opportunities.


MEASURABLEOBJECTIVE6: Develop brand-awareness campaign aligned to destination strategy.








number of campaigns hosted to create brand awareness aligned to destination strategy.

four campaigns per year, that is:•Twodomesticand•Twointernational

four campaigns done this year:•GautengBetweenthe

games – april to august•Sho’tLeft–Septemberto

March; and Know your Province campaign – april to June

•AmazingPlaceGauteng–September to January

•ILoveGauteng–ITBMarch

•Alsoutilisedanumberof communications channels and Pr platforms for marketing efforts. Created awareness of domestic packages that event organisers can sell

target achieved.

Project approval and feedback reports.

awareness and appeal of unique domestic offerings to the domestic and regional markets.

MEASuRABlE OBJECTiVE 7: improve product packaging of unique tourism products.

number of unique tourism products/collateral distributed to regions in the province.

new distribution channels used to disseminate gauteng information.

•Thirty-twomobilevisitorinformation centres created to distribute tourism information.

•Alsodistributedcollateralduring the hosting of pre- and post- tours for all events, conferences and exhibitions supported or sponsored by gauteng province.

•Inalleventsandconferences mentioned above including main hotels for ViPs and delegates e.g.

•MeetingsAfricahostedbuyer main hotels;

•Joyofjazzmainhotel,2010 Caf main hotels;

•Inallexhibitionsandconferences per gta marketing calendar.

effective dissemination of information in all strategic points about the province offering achieved.

target achieved.

included in project approval and feedback reports.

Highly effective dissemination of tourist information across strategic points despite huge gaps still existing due to limited financial resources.


BuSiNESS uNiT: DESTiNATiON MANAGEMENT STRATEGICOBJECTIVE1: Contribution to the growth of the provincial gross domestic product (gDP).

MEASURABLEOBJECTIVE: Promote investment support services to increase tourism investment and infrastructure development.







number of organisations benefiting from investment support services.

Six sustainable cooperatives to be empowered.

three cooperative’s business assisted.

target not achieved.

reports available. Lack of viable cooperative support proposals. Closer cooperation with gauteng enterprise Propeller forged to identify viable cooperative projects as per the new growth Path.

number of tourism signs erected in the gauteng province.

Sixty-five tourism signs to be erected.

a total of 74 signs were installed.

achieved. reports available. no variance.

STRATEGICOBJECTIVE2:accelerate the rate of investment in gauteng tourism products.

MEASURABLEOBJECTIVE:establishment of the gauteng birding route.

number of gauteng birding routes developed.

Phased development of new gauteng birding routes.

Phase one of the Sedibeng birding route project is under way and will be completed in the second quarter of the 2011/12 financial year.

the project is on course.

reports available. no deviation at this point and project is ongoing.

STRATEGICOBJECTIVE3: accelerate transformation of the tourism sector.

MEASURABLEOBJECTIVE: facilitate SMMe development and ensure growth by providing support mechanisms to sustain SMMes.

number of SMMes operational 12 months after start-up.

two hundred SMMes to be supported, financially and non-financially.

over 661 SMMes were financially and non-financially assisted through some of the following events:•Gautengtourismgrading

project•Indaba–May2010•JoyofJazzConcert2010•TasteofJoburgShow2010•HICA2010•Tourismbusinessnetwork

forums; conferencing and workshop programmes from april 2010 to March 2011

•2010hostingprogrammes•MeetingsAfrica2011•Businessadvisoryand

procurement services

target exceeded.

reports available. the majority of unplanned SMMes supported were accessed through the gauteng grading project in collaboration with strategic partners, e.g. tourism grading Council of South africa and the regions.

STRATEGICOBJECTIVE4: improving the supply and quality of tourism experience.

MEASURABLEOBJECTIVE1: enhance the quality of the tourism experience through grading and accreditation.

number of tourism products graded and accredited.

five hundred and fifty rooms to be star graded.

a total of 820 rooms were star graded.

target exceeded.

Monthly reports from tourism grading Council of South africa.

the target was exceeded due to 2010 World Cup preparations.


MEASURABLEOBJECTIVE2: Promote sport/township tourism.







number sport/township tourism entities assisted.

two sport/township tourism foundations to be assisted.

two sport/township tourism projects were assisted.

target achieved.

reports and the proposals are available.

use of gta sponsorship ensured successful implementation.

MEASURABLEOBJECTIVE3: facilitate youth development.

number of youth development entities and initiatives assisted.

three youth development projects to be supported.

three youth development projects were supported.

target achieved.

reports and proposals are available.

use of a development fund as prescribed by the gauteng tourism act ensured successful implementation.

MEASURABLEOBJECTIVE4: Promote small business network forum.

number of small business network forums held.

Six small business network forums to be held.

three small business network forums held.


reports are available.

Lack of effective and vibrant tourism business networks in other regions.

MEASURABLEOBJECTIVE5:Develop “How to ...” tourism booklets to guide on starting tourism businesses.

number of “How to...” booklets printed.

nine thousand “How to ...” tourism booklets to be printed.

ten thousand “How to...” tourism booklets were printed.

target achieved.

reports, Copies of the booklets.

essentially implemented according to plan.

MEASURABLEOBJECTIVE6: attend conferences and workshops.

number of conferences and workshops attended.

three conferences and workshops to be attended.

Seventeen conferences and workshops were attended.

target exceeded.

invitations,reports.

it would seem the aftermath of South africa’s hosting of the fifa World Cup sparked a plethora of useful seminars, workshops, etc, that were relevant for gta’s participation, more than initially planned.

MEASURABLEOBJECTIVE7:tourism awareness programmes.

number of tourism awareness programmes held.

four tourism awareness programmes to be held.

eleven tourism awareness programmes held in partnership with the regions.

target exceeded.

reports. Closer collaboration with our regional counterparts contributed to the initial target being exceeded.









number of regional/sector platforms created focusing on PDis.

eight support/awareness initiatives done with tourism stakeholders and PDi community groups including cooperatives, women, youth, etc.

•Five2010WorldCupreadiness regional roadshows in partnership with regional local authority stakeholders and private sector.

•Sevenprovincialroadshows benefiting regional tourism stakeholders.

•Fiveregionalvisitsinpartnership with regions and raSa to elevate township tourism through flagship projects.

target exceeded.

reports. Cooperation and collaboration with other entities led to exceeding the target.

MEASURABLEOBJECTIVE2: Broaden sustainability of cooperatives through cooperation between gta and other agencies.

number of joint initiatives, focused on cooperatives, with other agencies/strategic partners implemented.

three joint initiatives, focused on cooperatives, with other agencies/strategic partners implemented.

•Collaborativeagreemententered into with africa events Management Company on tourist information mall maps continued until September.

•Regionalpartnershipsonthe planned township tourism elevation continued with six municipal regions.

•AgreementwithTEPreached on the unfolding of the adopt-a-tavern programme.

target achieved.

reports. Collaboration and support from other entities assisted in achieving better results.

MEASURABLEOBJECTIVE3: facilitate relationship-building with other agencies/facilitate structural coordination between public, private and community tourism sectors.

number of alignment structures and agreements formalised/established.

two regional tourism organisations (rto) to be formalised.

•SedibenginterimRTOlaunched.

•WestRandRTO–Grantthornton is the service provider and the process is in phase three; situational analysis report to be tabled to council in the next financial year

•TshwaneRTOestablishedthrough council resolution. Service provider for start-up process has been appointed.

target achieved.

reports. Previous formalised agreements and processes initiated with regions are beginning to bear fruits.

BuSiNESS uNiT: iNSTiTuTiONAl RElATiONS STRATEGICOBJECTIVE:accelerate transformation of the tourism sector.

MEASURABLEOBJECTIVE1:ensure and promote development and sustainability of broad-based black economic empowerment, SMMes and cooperatives in the province.








number of cooperatives/local communities benefiting from the financial support.

three cooperatives/local communities to benefit from the financial support.

•TshwaneTravelandtourism association supported for exposure to business market access.

•SALTHAassistedincreating an economic platform for its conference to unleash economic potential of SMMes.

•Adopt-a-tavernprogramme aimed at benefiting 20 regional products has been delayed.


reports. identification of cooperatives for gta support has posed a great challenge. all initiatives geared towards cooperatives to be merged into a single project and partner with gauteng enterprise Propeller in implementation.

MEASURABLEOBJECTIVE5: facilitate responsible tourism planning initiatives within municipalities and key role players.

number of initiatives and projects executed.

facilitate one tourism opportunity awareness/planning intervention.

two sessions held with regions in order to improve coordinated planning and to develop a provincial tourism agenda.

target exceeded.

reports. Processes to foster integration of plans at a national level resulted in more than one session.

MEASURABLEOBJECTIVE6:facilitate tourism safety and aftercare programme.

number of initiatives and projects executed, including number of pre- and post-incident management protocols established.

two projects executed, including number of pre- and post-incident management protocols to be established.

•Ongoingparticipationonthe provjoints.

•GTAaffordedspaceonthe 2010 emergency operations centre in Brixton.

•Communityvolunteersemployed to work on the 2010 emergency operations’ tourism information;

•Safetytipsdevelopedand distributed to key attractions.

target exceeded.

reports. implementation of the 2010 gateway plan contributed towards exceeding the target.


MEASURABLEOBJECTIVE4:Provide financial support to cooperatives.


BuSiNESS uNiT: QuAliTY ASSuRANCE STRATEGICOBJECTIVE1:improve visitor satisfaction through service-excellence interventions and skills enhancement.

MEASURABLEOBJECTIVE:enhance service excellence within the sector through skills training.







Capacity building, training and support structure programmes.

implement the national service excellence plan in the province.

Customer care training workshop held around May 2010 to train about 3 000 participants in customer care, and train-the-trainer programme.


Participants’ register.

the total number anticipated varied because some potential attendees cancelled at the last minute for various reasons.

STRATEGICOBJECTIVE2:align provincial service excellence to national initiatives.

MEASURABLEOBJECTIVE:facilitate capacity building/training of selected learners in enhancing awareness around service excellence.

number of individuals trained through the national tourism excellence programme.

one hundred trainees targeted for training.

one-hundred-and-twenty trainees attended.

attendance register of the trainees.

target exceeded. the additional attendees showed up on the day without having rSVPed.

STRATEGICOBJECTIVE3: facilitate foreign language training.

MEASURABLEOBJECTIVE:implementation of the foreign language training for 2010 fifa World Cup and beyond.

number of learners trained in the different languages offered.

overall 50 learners registered for different languages: french, german, Spanish and Portuguese.

overall 38 learners made it to level three.


Database of all learners.

Some learners did not make it to level three because of work commitments. these learners are tour operators, tourist guides and frontline staff.

STRATEGICOBJECTIVE4: facilitate tourist-guide registration based on national systems.

MEASURABLEOBJECTIVE: registration of all qualified tourist guides with the authority.

Comprehensive database of tourist guides.

up to 3 400 tourist guides registered.

registration is ongoing. target achieved.

Database. ongoing registration as per the tourism Second amendment act.

STRATEGICOBJECTIVE5: international tourist guide Day celebration.

MEASURABLEOBJECTIVE:Successful hosting of the annual international tourist guide Day.

Successful hosting of the annual international tourist guide Day.

approximately 300 tourist guides and tourism practitioners targeted.

over 300 attended the celebration on 21 february.

target exceeded.

List of rSVPs and attendance register.

Some attendees showed up on the day without having prior confirmed attendance.

STRATEGICOBJECTIVE6: Develop a tourist-guide directory.

MEASURABLEOBJECTIVE1: Periodically publish the database of registered tourist guides.

Published tourist-guide directory.

a figure of 3 300 directories published.

further 1 800 directories printed (total 5 100) in anticipation of the 2010 fifa World Cup.

target exceeded.

Directory approval report.

the demand for the directory exceeded supply, hence the reprint.

MEASURABLEOBJECTIVE2: facilitation of placement of trained tourist guides.

enter into strategic partnerships to facilitate placements of trained tourist guides.

agreements with key stakeholders on placement of guides.

Currently there are learners placed at Constitutional Hill trained through the gta.

target achieved.

reports. While the agreement was successfully concluded with Constitutional Hill as a pilot project, the targets need to be stepped up drastically.









Board ratification of annual performance report and financial statements by 31 May annually for the annual report.

Six hundred copies of annual report to be compiled, printed and distributed to internal and external stakeholders.

Six-hundred-and-twenty copies of annual report 2009/10 compiled, printed and distributed.

target slightly exceeded.

Copy of the annual report 2009/10.

DeD requested that 20 extra copies be printed in Braille for geyoDi project.

MEASURABLEOBJECTIVE2: Develop quarterly performance reports.

Quarterly performance reports developed each quarter.

Develop and submit quarterly reports to DeD by 12 July, 11 october, and 15 December and 5 april .

four quarterly performance reports were developed and submitted to DeD on the set target dates.

target achieved.

Copies of the quarterly performance reports.

no deviation due to adherence to the plan despite a need to improve on the submission dates.

MEASURABLEOBJECTIVE3:Develop annual plan to align with the department’s requirements, and undertake quarterly reviews.

annual plan to align with department requirements and quarterly reviews.

annual review of the annual plan.

•Developmentoftheannual performance plan.

•Five-yearplanandstrategic plan 2009 to 2014 submitted to DeD in october 2010.

•Anadjustedstrategicandannual performance plan submitted to the board for approval.

target achieved.

approved copies of the annual performance plan, five-year plan and the operational plan 2010/11.

no deviation due to adherence to the annual planning cycle.

MEASURABLEOBJECTIVE4: Coordinate quarterly board meetings, correspondence and allowances.

number of board meetings, sub-committees, correspondence and allowances.

Coordinate four quarterly board meetings, four audit committee meetings, five sub-committee meetings for the following:•Onedestination

marketing committee

•Onedestinationmanagement committee

•Oneprocurementsub-committee

•Onecorporateservices committee

•OneresearchandiCt committee meeting

the following meetings were attended by board and sub-committees:•Twoboardmeetings•Twospecialboard

meetings•Fourauditcommittee

meetings•Destinationmarketing

meetings•Oneprocurement

meeting

target not achieved in specific regard to sub-committee meetings.

Copies of the minutes.

Destination management committee and the corporate services committee did not take place due to members’ non-availability.

BuSiNESS uNiT: CORPORATE AFFAiRS STRATEGICOBJECTIVE:ensure effective and efficient management and accountability of the authority.

MEASURABLEOBJECTIVE1:ensure achievement of the gta strategic plan and legislative compliance with accountability requirements i.e. the development of the annual report.








number of hosted local and international ViPS visiting the province.

Hosting to be facilitated as and when ViPs and other strategic delegates arrive in the province.

Hosted regions and restaurant association of South africa in the year under review.

target achieved.

Contact report. there was little activity in regard to relevant ViPs and delegates to host through a specific gta programme, but Ceo participated in other hosting programmes under the fifa World Cup auspices.

MEASURABLEOBJECTIVE6: Coordination of strategic partnership programme.

number of workshops to be held.

one workshop to be held to review performance, and undertake strategic planning in partnership with regions and other relevant stakeholders.

•Strategicsessionheldin July to input into the national tourism Sector Strategy.

•Heldstrategicsessionin September to review gta strategic plan 2009 to 2014 and develop an annual performance plan 2011/12.

•Finalisationoftheplanssession was held in March.

target exceeded.

report. More strategic sessions were held than planned due to realignment of gta strategic plan and annual performance plan to newly developed national tourism Sector Strategy, gauteng employment and growth Development Strategy, and the new growth Path.

MEASURABLEOBJECTIVE7: attend conferences and forums locally and internationally: Ceo’s office.

number of conferences and forums attended.

attend six international and six local conferences.

attended four international events: •ICCA•WTM•EIBTM•ITBLocally attended:•IndabaeventinDurbanLocal forums: •MINMECinCapeTown

16 to18 September 2010.•MINMECinDurban3

March 2011.


•Reportfromdestination marketing.

•Minutes and approval reports.

Deviation due to project prioritisation process.

MEASURABLEOBJECTIVE8: attend conferences and forums locally and internationally: board.

number of conferences and forums attended.

one international conference and two local trips.

•Attendedtwointernational conferences: London to attend World travel Market (WtM) and itB in germany.

•Attendedtwolocalconferences: indaba, and tourism Month in Limpopo.

target achieved.

approval report and report from destination Marketing for WtM.

attended more international trips than planned due to board members encouraged to know the industry and for strategic support.

MEASURABLEOBJECTIVE5:Corporate hosting programme and entertainment for local and international ViPs.








undertake a hosted buyers’ survey at indaba 2010.

Hosted buyers’ survey to be undertaken.

Survey conducted and report ready.

target achieved.

Survey report. the project was conducted successfully and was funded from normal budget according to plan.

Conduct a 2010 fifa World Cup socio-economic impact assessment to gauge the impact of this mega-event.

Complete the study and produce the report by March 2011.

report produced by end of March.

target achieved.

Copy of assessment report.

the dedication of gta’s research team in working with the service provider and close supervision of this ambitious project were instrumental for successful delivery.

MEASURABLEOBJECTIVE2: improve customer relationship management (CrM) processes.

Quarterly customer satisfaction index.

four quarterly customer satisfaction indexes planned.

no reports produced. target not achieved.

none. research funding expected after finalisation of normal budgeting process to fund this, among other projects, fell through.

STRATEGICOBJECTIVE2: ensure alignment of tourism strategies with plans to key national and provincial strategies and plans.MEASURABLEOBJECTIVE: gauteng tourism strategies remain current and relevant.

review the 2007 gauteng tourism development strategy and use as a basis for development of new gauteng tourism development strategy.

new gauteng tourism Sector Strategy is developed by end of March 2011.

gauteng tourism Sector Strategy developed and to be approved in the new financial year.

target achieved.

Copy of new gauteng tourism Sector Strategy.

no deviation due to sound planning, despite being disrupted by the postponement of the tourism Summit, which was to be used as a stakeholder consultative platform.

STRATEGICOBJECTIVE3:application of technology as a strategic business tool for global competitiveness of the gta and destination gauteng.MEASURABLEOBJECTIVE1: Convert online traffic to bookings.

number of bookings received for new product offerings.

two-hundred-and-fifty bookings to be done through gta portal.

one-hundred-and-seventy booking queries received. Zero bookings concluded.

not achieved.

Booking enquiry records.

Deviation due to inadequate online marketing collateral and the sheer complexity of the intricacies of competing in the online booking space.

MEASURABLEOBJECTIVE2: improve search-engine tactics to increase the number of hits.

number of hits, length of stay on site, search-engine visit generation.

a figure of 450 hits per day, two minutes 30 seconds spent on site, and 70% average search-engine-generated visits.

a figure of 450 hits per day, two minutes 21 seconds on site, and 69.21% search-engine-generated visits.

target achieved.

google analytic reports.

Changes in website service providers had major effects on results.

BuSiNESS uNiT: RESEARCH and iCT STRATEGICOBJECTIVE1:enhance monitoring and evaluation process.

MEASURABLEOBJECTIVE1:undertaking of various research projects geared to underpin decision-making process and enhance accountability and reporting compliance.









implementation of Hr policies and procedures by target date.

Quarterly reviews and implementation of Hr policies and procedures as set target.

Continuous implementation of and compliance with Hr policies and procedures.

target achieved.

Hr policies. no deviation due to strict adherence to the annual plan.

MEASURABLEOBJECTIVE2: Develop quarterly performance reports.

Quarterly Hr reports developed by target date.

Submission of quarterly reports to corporate affairs.

Quarterly reports submitted to corporate affairs on time.

target achieved.

reports. no deviation due to strict adherence to the annual plan.

MEASURABLEOBJECTIVE3: Staffing the organisation with competent employees.

recruit staff as per the approved organogram and employment equity plan.

Processing of staff requisition requests from business units.

no new staff recruited despite numerous staff requisition requests received.


Memo signed by HoD and MeC available.

Moratorium on appointing on a permanent basis. However, DeD has recommended that gta should appoint on fixed-term contract, not permanent.

MEASURABLEOBJECTIVE4: Compliance with employment equity legislation.

Submission of employment statistics/reports to Statistics South africa and Department of Labour.

Monthly submission of employment equity reports.

Continuous compliance with applicable legislation and policies.

target achieved.

reports. no deviation due to strict adherence to the annual plan.

MEASURABLEOBJECTIVE5: facilitate staff development and training.

Develop an annual training plan for all staff and implement as approved.

annual training plan as per organisational requirements.

annual training plan developed and ad hoc training courses approved and attended as identified for staff as far as possible as per available funds.

target achieved.

approved training report.

no deviation due to strict adherence to the annual plan, and agreed plan for ad hoc training requests received.

MEASURABLEOBJECTIVE6: facilitate study assistance.

Produce personal development plans for all staff and disburse available funds for longer-term staff development as approved.

update annually. fifteen study assistance applications received and approved.

target achieved.

Personal development plans.

no deviation due to strict adherence to execution as per Ceo-approved requests.

BuSiNESS uNiT: CORPORATE SERViCES (HuMAN RESOuRCES) STRATEGICOBJECTIVE:ensure effective and efficient management of the authority.

MEASURABLEOBJECTIVE1:ensure achievement of the gta strategic plan and legislative compliance with accountability requirements.








revise and develop the organisational development strategy.

a revised organisational development strategy.

Successfully conducted and concluded a climate survey, skills audit and competency assessments.


reports. organisational development strategy not finalised yet but processes to inform its development successfully concluded and strategy to be finalised in new financial year.

MEASURABLEOBJECTIVE8:Manage the performance management system.

Manage performance contracts and conduct appraisals.

appraisals conducted twice a year.

annual performance reviews for the financial year 2011/12 done.


Performance contracts and reviews.

Could not conduct half-year appraisals as the appointment and settling in of the new Ceo happened during the year, thus the focus was to ensure that the Ceo is oriented accordingly.

MEASURABLEOBJECTIVE9: facilitate a well-balanced employee worklife through the employee wellness programme.

Health and wellness policy, Chronic and disability policy, personal life events policy, HiV/aids policy etc. implemented according to approved programmes.

ongoing effective management of the employee wellness programme.

Various wellness programmes were implemented in line with the available resources:•Fluvaccinationforstaff.•Discovery702Walkthe

talk Marathon.•Counsellingsessionsfor

staff who experienced traumatic incidents.

•Organisationalteam-building session.

target achieved.

reports. no deviation due to strict adherence to the annual plan and execution of ad hoc requests that conform to the programme.


MEASURABLEOBJECTIVE7: facilitate organisational development.


BuSiNESS uNiT: CORPORATE SERViCES (ADMiNiSTRATiON) STRATEGICOBJECTIVE:ensure effective and efficient management and accountability of the authority.

MEASURABLEOBJECTIVE1:Submission of quarterly performance reports.







Submission of quarterly performance reports by the fifth day of the month following end of previous quarter.

Submission of quarterly reports by due date.

Quarterly reports submitted by due date.

target achieved.

Quarterly reports. no deviation due to strict adherence to the annual plan.

MEASURABLEOBJECTIVE2: Procure goods and services on behalf of, and as required by, the organisation e.g. office furniture, refreshments, stationery etc, plus management and maintenance of assets.

ongoing execution of procurement requests received and maintenance and management of assets.

Procure goods and services as well as facilitate maintenance of assets as required.

Monthly refreshments and other office consumables purchased according to requirements.one vehicle taken in for a service.

target achieved.

approvals and receipts, vehicle service book, asset register.

execution as per received requests ensured that there was no deviation.

MEASURABLEOBJECTIVE3: Develop and implement document management strategy and policy.

implementation of document management strategy as per the roll-out plan.

Provision of document filing and other related facilities as required by the organisation.

ongoing provision of relevant archiving and related facilities.

target achieved.

approval reports and email communication.

no deviation except the pending recruitment of documentation officer.

MEASURABLEOBJECTIVE4:effective administration support to the organisation.

Develop and implement relevant administration policies and procedures.

ongoing development of new relevant policies and continuous improvement of existing ones.

Second draft of business continuity plan (BCP) finalised, presented to and approved in principle by Policy implementation Committee (PiC).travel agency procedure adjusted and finalised as per PiC.

target achieved.

BCP policy, adjusted travel agency procedure.

no deviation except outstanding approvals by Ceo and board.

MEASURABLEOBJECTIVE5: Compliance with national archives act, occupational Health and Safety act (oHSa), access to information act etc.

Development of relevant organisational policies and procedures in accordance with these acts.

ongoing compliance with oHSa, access to information act and other related acts.

oHSa compliance status at 87% and no incidents reported.

target achieved.

oHSa report, attendance register.

no deviation due to strict adherence to the annual plan.

MEASURABLEOBJECTIVE6: effective front-desk and reception services that project a professional image of the organisation.

Provision of professional front-desk and reception services.

ongoing monitoring of front-desk and reception services.

no complaints received or irregularities observed.

target achieved.

Visitor register,CCtV coverage.

front-desk staff duly observe organisational policies on conduct.








undertake ongoing monitoring of contracts, SLas etc.

ongoing monitoring of contracts, SLas etc.

ongoing monitoring of contracts, SLas etc.

target achieved.

reports. no deviation. Most SLas on a month-to-month basis pending finalisation of DeD reorganisation process. no new SLas entered into.

MEASURABLEOBJECTIVE8: established library for resource material.

ensure availability of library resource material.

ensure purchases of library resource material as per organisational requirements.

Purchased online research publications from the unWto as per the Ceo’s requirements.

target achieved.

Proof of purchase of online unWto material.

received requests duly executed, thus no deviation.


MEASURABLEOBJECTIVE7:Legal compliance of gta contracts, memoranda of understanding, service level agreements (SLas) etc.








implementation of finance policies and procedures by target date.

revise all policies by 30 november 2010 and monitor daily.

Policies duly revised by target date and monitoring ongoing.

target achieved.

Copies of finance policies and procedures.

no deviation due to strict adherence to the internal annual management plan.

MEASURABLEOBJECTIVE2: Develop quarterly financial reports.

Quarterly financial reports developed by set target date.

By the tenth day of the month following the quarter.

all reports provided within the set timelines.

target achieved.

Copies of reports. no deviation due to strict adherence to the internal annual management plan.

MEASURABLEOBJECTIVE3: Conduct quarterly audits.

Quarterly audits conducted by target date.

as per audit plan. all audits done as per audit plan.

target achieved.

Copies of reports. no deviation due to strict adherence to the internal annual management plan.

MEASURABLEOBJECTIVE4:Provide efficient accounting services.

Provide accounting services on an ongoing basis based on approved accounting standards, including providing management accounts by the fifth working day of each month.

By the fifth working day of each month.

Monthly financial statements provided within the set timeline.

target achieved.

Copies of financial statements.


MEASURABLEOBJECTIVE5: ensure payment of staff.

Payment of staff on/not later than the 26th of each month.

not later than the 26th of each month.

Staff paid on time. target achieved.

Monthly payroll documents on file.

Strict adherence to the internal annual management plan.

MEASURABLEOBJECTIVE6: Prepare and provide year-end financial statements.

Provide year-end financial statements by 31 May each year.

By 31 May of each year.

financial statements to ag by 31 May 2010.

target achieved.

financial statements.


MEASURABLEOBJECTIVE7: Coordinate management of the organisational risk plan.

Coordinate gta risk plan and short-term insurance.

revised by 31 March each year and monitor monthly.

risk plan revised and approved by the board, monitored monthly.

target achieved.

Copy of risk plan, board minutes, monthly risk reports.


MEASURABLEOBJECTIVE8: execute an internal audit plan.

Coordinate revision of internal audit plan annually.

30 april each year. three-year rolling plan 2010 to 2013 approved by the board.

target achieved.

Copy of the plan and board minutes.


BuSiNESS uNiT: FiNANCE STRATEGICOBJECTIVE:ensure effective and efficient management of the authority.

MEASURABLEOBJECTIVE1:achievement of the gta strategic plan and legislative compliance with accountability requirements.









Pay creditors daily. Daily payments as approved by the Ceo.

Creditors paid daily. target achieved.

Cashbook on file. no deviation due to strict adherence to the internal annual management plan.

MEASURABLEOBJECTIVE10: ensure regular banking of cash.

Bank money weekly. Weekly banking. Money banked weekly. target achieved.

Deposit slips on file.


MEASURABLEOBJECTIVE11:ensure compliance with medium-term expenditure framework (Mtef) planning framework.

Provide Mtef figures as per strategic plan by not later than 30 September each year.

30 September each year.

Mtef 2011 to 2014 provided by 30 September 2010.

target achieved.

Copy of approved Mtef 2011 to 2014.


MEASURABLEOBJECTIVE9: Manage payment of creditors


REPORT Of ThE AUdiTOR-gENERAL TO ThEGAUTENG PROVINCIAL LEGISLATURE ON THE GAUTENG TOURISM AUTHORITY

RepoRt on the Financial StatementSintroduction I have audited the accompanying financial statements of the Gauteng Tourism Authority, which comprise the statement of financial position as at 31 March 2011, and the statement of financial performance, statement of changes in net assets and cash-flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 64 to 72.

accounting authority’s Responsibility for the Financial StatementsThe accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act, No. 1 of 1999 (PFMA), and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

auditor-General’s Responsibility As required by section 188 of the Constitution of the Republic of South Africa, 1996, and section 4 of the Public Audit Act, No. 25 of 2004 (PAA), my responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with international standards on auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

opinionIn my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Tourism Authority as at 31 March 2011 and its financial performance and cash flows for the year then ended in accordance with SA Standards of GRAP and the requirements of the PFMA.

RepoRt on otheR leGal and ReGulatoRy RequiRementSIn accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I include below my findings on the annual performance

report as set out on pages 37 to 56 and material non-compliance with laws and regulations applicable to the Gauteng Tourism Authority.

predetermined objectivesusefulness of informationThe reported performance information was deficient in respect of the following criteria:

• Measurability: Indicators are well-defined and verifiable, and targets are specific, measurable and time-bound.

• Consistency: Objectives, indicators and targets are consistent between planning and reporting documents.

The following audit findings relate to the above criteria:

• Consistency: The reported objectives, indicators and targets are not consistent with the approved annual performance plan, and changes to planned objectives, indicators or targets of the approved annual performance plan have not been disclosed or explained in the report on predetermined objectives in terms of the National Treasury Preparation Guide.

• Measurability: For the selected objectives, 50% or more of the planned and reported targets were not specific in clearly identifying the nature and the required level of performance; measurable in identifying the required performance and time-bound in specifying the time period or deadline for delivery.

compliance With laws and Regulations There were no findings concerning material non-compliance with laws and regulations applicable to the public entity.

inteRnal contRol In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control. The matters reported below are limited to the significant deficiencies that resulted in the findings on the annual performance report.

leadershipManagement has not exercised adequate oversight responsibility regarding performance reporting and has not ensured compliance with the National Treasury Preparation Guide on predetermined objectives.

Johannesburg

29 July 2011

sEcTiON 7:ANNUALFINANCIAL STATEMENTSFor the year ended 31 March 2011


BoaRd memBeRS

messrs Meetingsattended

mesdames Meetingsattended

S Mthembu – Chairperson 16 N Majokweni – Deputy Chairperson 7

JN Ntintili 8 PA Lion-Cachet (until 31 May 2010) 0

H Moolla 10 M Molotsi 9

D Moshapalo 5

LM Magi (until 31 May 2010) 0

L Makgamathe (from 1 June 2010) 1

audit committee

messrs Meetingsattended

mesdames Meetingsattended

H Moolla – Chairperson 4 M Molotsi 4

PA Lion-Cachet (until 31 May 2010) 0

N Majokweni (from 1 June 2010) 1

auditoRSAuditor-General South AfricaPO Box 91081Auckland Park2006

inteRnal auditoRGovernance and Risk Management152 Western Services RoadAllhart Office ParkWoodmead2096

chieF eXecutiVe oFFiceR chieF Financial oFFiceRMr MH Moeti (acting until 30 June 2010) Mr JH (Hennie) VenterMs Dawn Robertson (from 1 July 2010)

poStal addReSS ReGiSteRed oFFicePO Box 155 1 Central PlaceNewtown Cnr Jeppe and Henry Nxumalo StreetsJohannesburg 2113 Newtown Johannesburg 2001

telephone BanKeRS+27 11 639 1600 ABSA Bank

FaX WeBSite+27 11 639 1700 www.gauteng.net

email call [email protected] 0860 428 8364

AdMiNisTRATiVEINFORMATION31 March 2011

section 7: Annual financial statements for the year ended 31 March continued


Statement oF ReSponSiBility 31 maRch 2011The Board members are responsible for monitoring the preparation and the integrity of the financial statements and related information included in the annual report.

inteRnal and accountinG contRolSIn order for the Board to discharge its responsibilities, management has developed and continues to maintain an effective and efficient system of internal control through its policies as per Item 3.1of the Report of the Board.

The system of internal controls is designed to provide reasonable assurance as to the integrity and reliability of the financial records of the Authority and to safeguard and maintain accountability of the Authority’s assets.

The Audit Committee and the Board regularly review the Risk Management Policy and system of internal control and these are revised as legislative and operational conditions change.

The system of internal control includes a comprehensive budgeting system operating within strict deadlines and monitored by Management, the Board, the Audit Committee and the Internal Auditor.

As part of the system of internal control, the Board’s internal audit function conducts the internal audit in accordance with the standards set by the Institute of Internal Auditors and the Auditor-General.

The Board is satisfied that the system of internal control is adequate so that the financial records and system may be relied upon for preparing the financial statements and maintaining accountability of assets and liabilities.

The Board applies a system of declaration of interest.

audit committeeThe Audit Committee of the Board consists of three non-executive Board members and meets at least two times a year. The committee ensures effective communication between the Board, Internal Audit and the Auditor-General. The Auditor-General and the Internal Auditor have free access to the Audit Committee.

The Audit Committee operates within the framework of formal terms of reference approved by the Board and has discharged its responsibilities for the year, in compliance with its terms of reference approved by the Board.

annual Financial StatementSThe annual financial statements are prepared in accordance with the applicable Statements of Generally Recognised Accounting Practice as approved directives from the Accountant General and incorporate responsible disclosure in line with the accounting philosophy of the Authority.

The financial statements are based on appropriate accounting policies as set out in the notes to these financial statements and are consistently applied and supported by reasonable and prudent judgements and estimates within the requirements of the Public Finance Management Act, 1999 (Act No. 1 of 1999), as amended.

The financial statements have been prepared on the going concern basis of accrual as the Board Members have every reason to believe that the Board has adequate resources in place to continue in operation for the year ahead.

The Board believes that the annual financial statements fairly present, in all material respects, the financial position of the Board as at 31 March 2011 and the results of its operations and cash flows for the year then ended.

CHAIRPERSON OF THE BOARD Mr S Mthembu

Signed: 31 May 2011

sTATEMENT Of REsPONsibiLiTyBY THE MEMBERS OF THE BOARD31 March 2011


REPORTOF THE BOARD31 March 2011

1. intRoductionThe Gauteng Tourism Authority was established as an Authority on 1 April 2000 in terms of the Gauteng Tourism Act of 1999 and succeeded the Gauteng Tourism Agency, a section 21 company, as a going concern. The Authority received tax clearance from the South African Revenue Service (Sars) and confirmation of deregistration from the registrar of companies during the 2001/02 financial year. The Authority was deregistered for VAT on 1 October 2005 due to the fact that National Treasury and Sars considered section 3(c) entities as VAT exempt.

The Gauteng Tourism Act No 10 of 2001 was promulgated on 5 February 2002 with the Chief Executive Officer (CEO) as the accounting authority in terms of section 49 2(b) of the Public Finance Management Act (PFMA) No. 1 of 1999.

On 7 June 2006, Act No. 3 of 2006 came into effect, resulting in the establishment of a board, which became operational as from 1 February 2007. The board then became the accounting authority of GTA.

2. GeneRal ReVieW oF the State oF Financial aFFaiRSThe financial statements reflect the financial position of the Authority as at 31 March 2011 and the results of its operations for the year ended are summarised as follows:

actual Budget deviation

R’000 R’000 R’000

income: Provincial grant 67,151 64,151 0%

Registration fees 173 71 145%

Interest received 1,041 780 33%

Other 7,945 11,174 -2%

total revenue 76,310 76,176 0.18%

expenditure: Destination management 5,255 5,266 0%

Destination marketing & CC 41,420 41,451 0%

Quality assurance 3,331 3,334 0%

Corporate services 8,419 8,434 0%

Finance 4,299 4,311 0%

Research and ICT 6,445 6,455 0%

Institutional relations 2,808 2,811 0%

Corporate Affairs 3,921 3,925 0%

Sub total: operational cost 75,898 75,987 0%

Capital expenditure 187 189 -1%

total expenditure 76,085 76,176 - 0.12%

Surplus/(deficit) for the year 225 -

The total expenditure of R76,084,662 is R91,338 less than budgeted and indicates an underspend of 0.12%. The Authority hereby indicates that it has the capacity to spend the allocation from the provincial Department of Economic Development, amounting to R67,151,000. The net surplus for the year, including capital expenditure of R186,725 is R411,804. The general reserve as at balance sheet date is R3,372,511.77. The Authority will in terms of the approved business plan and budget and in accordance with Treasury regulations in terms of section 53(3) of the PFMA, request approval to retain the surplus of R225,079 for the 2011/12 financial year.



3. BuSineSS actiVitieS

3.1 legislation

The Gauteng Tourism Authority was established in terms of the Gauteng Tourism Act No. 10 of 2001 as from 5 February 2002. Prior to this, the Gauteng Tourism Act of 1999 was applicable. The result of this process is that policies, procedures and the delegation of powers were revised in order to provide for the transfer of the accounting authority from the board to the CEO.

Subsequently, the Gauteng Tourism Act No. 3 of 2006 came into effect on 7 June 2006, stipulating that a board of directors take over from the CEO the responsibilities of the accounting authority. The board was appointed on 1 February 2007. The GTA is a schedule 3(c) Provincial Public Entity in terms of the PFMA.

PFMA is implemented resulting in the maintaining of and complying with the following required documents:• Supply-chain Management policy• Risk management policy• Investment policy;• Debt-collection policy;• Fraud prevention plan; • Asset management policy; and• Materiality framework policy.

3.2 Governance and management

Until 5 February 2002, the Authority was governed by a board, appointed by the MEC for Finance and Economic Affairs. On 5 February 2002 the CEO became the accounting authority with the MEC, being the executive authority advised by an advisory committee. The Authority also has an audit committee and a procurement committee. Staff were appointed according to the organogram and at year end the position of senior manager: destination management was vacant.

As from 1 February 2007, the responsibilities of the accounting authority were transferred to the new board, which became fully functional in the 2007/08 financial year. At the first board meeting held on 22 May 2007, a resolution was passed that each board member must sign a declaration of interest at every future board meeting.

the board:

• Retains full control over the entity, its plans and strategy; and

• Acknowledges its responsibilities as to strategy, compliance with internal policies, external laws and regulations, effective risk management and performance measurement, transparency and effective communication, both internally and externally, by the entity.

Compliance with the policies, procedures and applicable legislation are strictly monitored. In order to improve on internal controls, various other policies and procedures were also put in place. An audit committee is functional. The audit committee evaluated the effectiveness of the internal audit function provided by the firm Governance and Risk Management (Pty) Ltd on an ongoing basis with recommendations reflected in the minutes of the audit committee meetings.

3.3 planning and mandate

The Authority follows a strategic approach, with a strategic plan, three-year business plan and MTEF budget, in compliance with the requirements of the PFMA. This is done in accordance with an annual planning programme. The strategic plan is revised on an annual basis, resulting in revision of the business plan and annual performance plan accordingly. The Gauteng Tourism Development Strategy was approved by the Gauteng executive council during November 2007 and came into effect in the 2008/9 financial year. During the current year, the need was identified for further revision to be finalised in 2011.

These documents guide the Authority throughout the decision-making process in order to meet the its vision and mission:

Vision: To be the strategic leader of tourism in Gauteng.

Mission: To develop, promote, coordinate and facilitate responsible and sustainable tourism in Gauteng; and to create a world-class destination that attracts business visitors and all other tourists to the province, benefits our people and contributes to economic growth.

3.4 ceo’s Responsibility

The CEO is responsible for monitoring the preparation of and the integrity of the financial statements, and related information included in this report.

Management has developed and continues to maintain a sound accounting system and internal controls. During the 2010/11 financial year, internal controls, policies and procedures were adjusted to incorporate the board in terms of the new delegation of authority as approved by the board. The board and CEO review the operations of the Authority on a regular basis in conjunction with the internal auditor and the audit committee.

The internal controls include a risk-based system of internal accounting and administrative controls designed to provide reasonable assurance that assets are safeguarded and that transactions are executed and recorded in accordance with generally accepted business practices and the Authority’s policies and procedures. These controls are implemented by trained,


skilled personnel with an appropriate segregation of duties, who are monitored by management, and include a comprehensive budgeting and reporting system operating within strict deadlines and an appropriate control framework.

The financial statements are prepared in accordance with applicable accounting standards as approved and incorporate responsible disclosure in line with the accounting philosophy of the Authority. The financial statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

During this financial year the Authority’s strategic plan, business plan and annual performance plan were revised and subsequently implemented. An effective system of monitoring and evaluation was introduced to ensure ongoing progress towards reaching the targets set out in the abovementioned plans.

4. touRiSm deVelopment Fund

The total amount spent on projects of a developmental nature was R30,624,392, which was 45.34% of the DED grant of R67,151,000 received. The grants amounted to R50,151,000 for subsidy, R14,000,000 for SWC 2010-related projects and R3,000,000 as GEGDS funding.

The development fund expenditure per business unit was as follows:

Destination management 4,761,833

Destination marketing 18,622,644

Research and ICT 1,748,394

Institutional relations 1,889,709

Quality assurance 1,923,074

Corporate affairs 314,183

Corporate services 469,916

Finance 894,638

total R30,624,392

5. appRoVal oF Financial StatementSThe financial statements for the Gauteng Tourism Authority for the financial year ended 31 March 2011 are hereby approved.

Mr S Mthembu

chairperson of the boardSigned: 31 May 2011

1 Central Place


Newtown, Johannesburg

2001

Tel: +27 11 639 1600

Fax: +27 11 639 1700

www.gauteng.net



REPORT Of ThEAUDIT COMMITTEE31 March 2011

We are pleased to present our report for the financial year ended 31 March 2011.

audit committee memBeRS and attendanceThe Audit Committee consists of the members listed hereunder and met four times during the year under review.

name of member Meetings attended

Mr H Moolla (Chairperson) 4Ms P Lion-Cachet (until 31 May 2010) 0Ms M Molotsi 4Ms N Majokweni (from 1 June 2010) 1

audit committee ReSponSiBilityThe Audit Committee’s responsibilities arise from section 51(1)(a) of the Public Finance Management Act (“the Act”) and Treasury Regulations 27.1.8 and 27.1.10. The Audit Committee also adopted formal terms of reference as its audit committee charter and regulates its affairs in compliance with this charter.

the eFFectiVeneSS oF inteRnal contRolThe system of internal control is effective according to the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and management letter of the Auditor-General. All reports of Auditors are discussed at the committee meetings and applicable resolutions are taken.

inteRnal auditThe internal audit function is outsourced to the firm Governance and Risk Management (Pty) Ltd. Audits were performed in accordance with an approved Risk Management Plan and Three Year Rolling Audit Plan. All the reports issued were discussed between the firm and the relevant business unit before finalisation. It is the CEO’s responsibility to ensure that recommendations are implemented.

the quality oF manaGement and monthly/quaRteRly RepoRtS SuBmitted in teRmS oF the actThe Committee discusses the content and quality of monthly and quarterly reports prepared and issued by the CEO.

eValuation oF Financial StatementSThe Audit Committee has reviewed and discussed the audited annual financial statements, the Auditor-General’s management letter, management responses and the Auditor-General’s final report for the 2010/11 financial year.

CHAIRPERSON OF THE AUDIT COMMITTEEMr H Moolla


note 2010/11actualR’000

2009/10actualR’000

aSSetS

non-current assets 1,405 1,824

Property, plant and equipment 2.1 1,070 1,471

Intangible assets 2.2 31 49

Deposits 3.3 304 304

current assets 14,290 10,356

Trade and other receivables from exchange transactions 3.1 5 -

Prepayments 5 113 180

Cash and cash equivalents 12.5 14,172 10,176

total aSSetS 15,696 12,180

liaBilitieS

non-current liabilities -

current liabilities 12,314 6,223

Trade and other payables 6 12,314 6,223

Provisions 4 - -

total liaBilitieS 12,314 6,223

net aSSetS

capital and ReSeRVeS 13.1 3,382 5,957

General reserve fund 13.1 3,372 5,949

Revaluation reserve 13.1 10 10

total net aSSetS and liaBilitieS 15,696 12,180

sTATEMENT OfFINANCIAL POSITIONat 31 March 2011



note 2010/11

Budget

R’000

2010/11

actual

R’000

2010/11

Variance

R’000

2009/10

Budget

R’000

2009/10

actual

R’000

2009/10

Variance

R’000

ReVenue

Transfers and subsidies received 7 67,151 67,151 - 48,500 48,500 -

Other income 7.1 8,245 8,118 127 1,145 1,519 (374)

total ReVenue 75,396 75,269 127 49,645 50,019 (374)

eXpendituRe

Administrative expenses 8.1 1,279 1,271 8 1,334 1,321 12

Staff costs 8.2 24,499 24,493 6 24,253 24,189 64

Audit fees 8.3 331 330 1 465 464 1

Other operating expenses 8.5 49,266 36,936 71 22,762 15,069 1,584

Gift, sponsorships and donations

paid (Budget incl. in 8.5)

8.4 - 12,260 - - 6,109 -

Depreciation 8.6 560 557 3 563 562 1

Amortisation 8.7 47 47 - 77 77 -

Deficit on disposal of assets 8.5 5 4 1 2 - 2

total eXpendituRe 75,987 75,898 89 49,455 47,792 1,664

SuRpluS/deFicit FRom opeRationS

(591) (629) 39 190 2,227 (2,037)

Income from investments 7.2 780 1,041 (261) 600 883 (283)

Surplus/(deficit) for the year 189 412 (222) 790 3,110 (2,320)

sTATEMENT OfFINANCIAL PERFORMANCEFor the year ended 31 March 2011


note Generalreserve fund

R’000

Revaluationreserve

R’000

totalR’000

Balance at 01 april 2009 3,199 3,199

Transfer to general reserve - - -

Surplus for the year surrendered to (21) - (21)

DED (339) (339)

Surplus/(Deficit) for the year 12.1 3,110 - 3,110

Non-distributable revaluation reserve - 8 8

Balance at 31 march 2010 5,949 8 5,957

Balance at 01 april 2010 5,949 - 5,949

Balance brought forward 5,949 - 5,949

Surplus surrendered to DED

Surplus for the year surrendered to

DED (2,989) (2,989)

Surplus/(deficit) for the year 12.1 412 - 412

Non-distributable revaluation reserve - 10 10

Balance at 31 March 2011 13.1 3,372 10 3,382

sTATEMENT OfCHANGES IN NET ASSETSFor the year ended 31 March 2011



note 2010/11R’000

2009/10R’000

net caSh FloW FRom opeRatinG actiVitieS 7,169 2,767

Cash receipts from customers 75,331 50,442

Cash paid to suppliers and employees -69,203 (48,558)

cash generated/utilised from operations 12.1 6,128 1,884

Interest received 7.2 1,041 883

caSh FloW FRom inVeStinG actiVitieS (187) (121)

Addition to property,plan and equipment 12.2 (158) (101)

Addition to computer software (intangible assets) 12.3 (29) (20)

caSh FloW FRom FinancinG actiVitieS - -

Decrease in general reserve fund (2,988) (360)

net cash flow from financing activities (2,988) (360)

net increase/(decrease) in cash and cash equivalents 3,996 2,286

cash and cash equivalents at beginning of year 12.4 10,176 7,890

cash and cash equivalents at end of year 12.5 14,172 10,176

sTATEMENT OfCASH FLOWSFor the year ended 31 March 2011


1. accountinG policieS

1.1 Basis of preparation The annual financial statements have been prepared in accordance with the effective Standards of Generally

Recognised Accounting Practices (GRAP) including any interpretations and directives of such statements issued by the Accounting Standards Board.

1.1.1 The cash flow statement can only be prepared in accordance with the direct method. 1.1.2 Specific information such as: (a) receivables from non-exchange transactions, including taxes and transfers; (b) taxes and transfers payable; (c) trade and other payables from non-exchange transactions must be presented separately on the

statement of financial position. 1.1.3 The amount and nature of any restrictions on cash balances are required to be disclosed. 1.1.4 The following additional GRAP Standards have been approved and became effective on the dates as

indicated.

Standard Effective Date

GRAP 4 - The Effects of Changes in Foreign Exchange Rates 01-Apr-09

GRAP 5 - Borrowing Costs 01-Apr-09

GRAP 6 - Consolidated and Separate Statements 01-Apr-09

GRAP 7 - Investments in Associate 01-Apr-09

GRAP 8 - Interest in Joint Ventures 01-Apr-09

GRAP 9 - Revenue from Exchange Transactions 01-Apr-09

GRAP 10 - Financial Reporting in Hyperinflationary Economies 01-Apr-09

GRAP 11 - Construction Contracts 01-Apr-09

GRAP 12 - Inventories 01-Apr-09

GRAP 13 - Leases 01-Apr-09

GRAP 14 - Events After the Reporting Date 01-Apr-09

GRAP 16 - Investment Property 01-Apr-09

GRAP 17 - Property Plant and Equipment 01-Apr-09

GRAP 19 - Provisions, Contingent Liabilities and Contingent Assets 01-Apr-09

GRAP 100 - Non-current Assets Held for Sale and Discontinued Operations 01-Apr-09

GRAP 101 - Agriculture 01-Apr-09

GRAP 102 - Intangible Assets 01-Apr-09

1.1.5 The following GRAP Standards have been approved but are not yet effective.

GRAP 18 - Segment Reporting Unknown

GRAP 21 - Impairment of Non-cash-generating Assets 01-Apr-12

GRAP 23 - Revenue from Non-exchange Transactions (Taxes and transfers) 01-Apr-12

GRAP 24 - Presentation of Budget Information in Financial Statements 01-Apr-12

GRAP 25 - Employee Benefits Unknown

GRAP 26 - Impairment of cash-generating assets 01-Apr-12

GRAP 103 - Heritage Assets 01-Apr-12

GRAP 104 - Financial Instruments Unknown

NOTEs TO ThEANNUAL FINANCIAL STATEMENTSFor the year ended 31 March 2011



1.1 Basis of preparation – continued

The effect of these GRAP Standards has not had a significant impact on the financial statements as the

principles are similar to those already applied under the equivalent Statements of SA GAAP.

1.2 Going concern

The Authority will be a going concern in the year ahead. For this reason the going concern basis of

an accrual system and historical cost principle have been adopted in preparing the Authority’s annual financial

statements.

1.3 currency

The financial statements are presented in South African Rand which is the Authority’s functional currency. See

point 16 in Notes to the Financial Statements.

1.4 Revenue Recognition

Revenue is derived from government transfers (non-exchange transactions) and other income (exchange

transactions) and is recognised on the accrual basis in the month of receipt as confirmed by the Department

of Economic Development. The Authority did not change its accounting policy during the year based on GRAP

23 read with Directive 5.

1.5 leasing

Operating leases Lease payments under an operating lease are recognised as expenses in the Statement of Performance on a

straight line basis over the lease period.

1.6 Government Grants

Government grants are recognised when it is probable that future economic benefits will flow to the

Authority and these benefits can be measured reliably. The grants are recognised to the extent that there are

no further obligations arising from the receipt of the grant. These grants are recognised in the month of receipt

decided by and confirmed by the Department of Economic Development. We have taken into consideration all

conditions related to the grants, in preparing these financial statements.

1.7 Retirement Benefit costs

Provident Fund The Authority operates a defined contribution provident fund for all its permanent employees, the assets of

which are held in a separate trustee-administered fund subject to the Pension Fund Act, 1956 as amended.

Payments are charged to the statement of financial performance in the year to which they relate.

1.8 taxation

No provision for income tax has been made as the Authority is exempt in terms of section 10(1) of the Income

Tax Act.

1.9 employee Benefits (Short/long term)

The Authority only has short-term employee benefit costs which are recognised during the period in which the

employee renders the related services.


1.10 property, plant and equipment

Property, plant and equipment are recognised in the Statement of Financial Position in the month when

acquired and measured at historical cost less accumulated depreciation. Depreciation commences in the

month of acquiring the asset. The Authority does not componentise any assets. Depreciation is calculated on

the straight line method to write off the cost of each asset over its estimated useful life as follows:

Furniture and Fittings 15% Per Annum

Equipment 20% Per Annum

Computer equipment 33% Per Annum

Leasehold improvements 10% Per Annum

1.11 intangible assets

Intangible assets are recognised in the Statement of Financial Position in the month when acquired and

measured at historical cost less accumulated amortisation. Amortisation commences in the month of acquiring

the asset. Amortisation is calculated on the straight line method to write off the cost of each asset over its

estimated useful life as follows:

Computer Software 50% Per Annum

Expenditure on research is recognised as an expense when incurred.

1.12 measurement and Recognition of property, plant and equipment and intangible assets

In terms of GRAP 17 and GRAP 102 which became effective on 1 April 2009, the Authority changed its

accounting policy for depreciating property, plant and equipment and for amortisation of intangible assets,

whilst at the same time adopting the cost model from revaluation model whereby all assets are carried at cost

less accumulated depreciation for property, plant and equipment and cost less accumulated amortisation for

intangible assets resulting in that assets may be carried at a minimal and/or zero value. Management takes

the view that this policy provides reliable and more relevant information because it deals more accurately

with the categories of property, plant and equipment and intangible assets. The effect on the current year

is to decrease the carrying amount of property, plant and equipment and intangible assets by the annual

depreciation and amortisation charge as per 1.10 and 1.11 above. Depreciation methods, useful lives and

residual values are reassessed annually before 31 March based on physical inspection of each asset by the IT

and Office Manager. Derecognision on disposal is executed in terms of the Authority’s Asset Management Policy

whereby profits or losses on disposal of property, plant and equipment and intangible assets are determined by

comparing the proceeds from disposal with its carrying amount and are recognised as such in the Statement

of Financial Performance.

1.13 impairment of tangible and intangible assets

At each reporting date, the Authority physically reviews all of its tangible and intangible assets to determine

whether there is any indication that those assets may be impaired. In the event of impairment, the carrying

amount is reduced with the impairment loss and the impairment loss recognised in the Statement of

Performance. The Authority did not recognise any impairment during the financial year.

1.14 Subsequent cost

Subsequent cost on capitalised tangible and intangible assets is capitalised only when it increases the future

economic benefit in the specific asset. All other expenditure is recognised in the Statement of Performance as

an expense when incurred.



1.15 provisions

Provisions are recognised when the Authority has a present obligation as a result of a past event and it is

probable that this will result in an outflow of economic benefits that can be estimated reliably. Provision was

made for leave pay and 13th cheque in the following manner until 2009 when GRAP 19 became effective:

- Provision for leave pay is set at 100% of all outstanding accumulated leave as per the GTA policy at

statement of position date;

- Provision for 13th cheque is made for January to March and is calculated on the actual December payout

of the current financial year divided by four.

As from 1 April 2009, both provisions were reclassified retrospectively as accruals under trade and other

payables as to ensure compliance with GRAP 19.17. See Notes to the Annual Financial Statements No. 11. No

provision for doubtful debts is made.

1.16 Financial instruments

Financial assets and financial liabilities are recognised in the Authority’s Statement of Financial Position when

the Authority becomes a party to the contractual provisions of the instrument. These consist of cash and bank

balances, trade and other receivables and other payables and are measured at initial recognition.

1.17 trade and other Receivables

Trade and other receivables are initially carried at cost and subsequently carried at amortised cost.

1.18 trade and other payables

Trade and other payables are initially carried at cost and subsequently carried at amortised cost.

1.19 cash and cash equivalent

Cash and cash equivalents are measured at amortised cost.

1.20 General Reserve Fund

Accumulated surpluses or deficits are taken to the general reserve fund.

1.21 comparatives

Where necessary comparative figures are adjusted to conform to changes in presentation in the

current year.

1.22 irregular, Fruitless and Wasteful expenditure

Irregular, fruitless and wasteful expenditure means expenditure incurred in contravention of, or not in

accordance with, a requirement of any particular legislation, including the Public Finance Management Act of

1999 (as amended by Act of 1999). No such expenditure was incurred in the reporting period.

1.23 Related party transactions

The Authority operates within the auspices of its parent organisation, the Department of Economic Development,

which is primarily responsible for funding and is therefore regarded as its related party.


1.24 Budget information in the Financial Statements

As per GRAP 1.12, a comparison of the budget and actual amounts for the reporting period are included in

the financial statements. The Authority’s financial statements and budget are on the same basis of accounting

which is a pre-requisite for this inclusion. GRAP 24 to be effective on 1 April 2012 stipulates that entities may elect

to make available their approved budget subject to disclosing the reasons for material differences between

the budget and actual amounts. The Authority is of the opinion that disclosure of budget amounts compared

to the actual amounts arising from execution of the budget may enhance the user of the financial statements’

understanding and may also be used as a performance measure indicator.

1.25 prepayments

The Authority recognises prepayments made in respect of exchange transactions for next financial year in the

statement of position. Prepayments are reviewed at each statement of position date and adjusted if necessary.

1.26 events after Reporting date

Any known or anticipated event that may occur after the reporting period is declared in the notes to the

financial statements. See Notes to the Annual Financial Statements No. 18.

1.27 contingencies and other liabilities (accruals)

Any known or anticipated contingency that may occur is declared in the notes to the Annual Financial

Statements. Accruals are liabilities to pay for goods or services that have been received or supplied but have

not been paid, including amounts due to employees for accrued vacation pay. Accruals are reported as part of

accounts payable.

As from 1 April 2009 when GRAP 19 became effective, provisions for accrued leave and 13th cheque were

reclassified retrospectively as accruals under trade and other payables as to ensure compliance with GRAP

19.17. Accruals were made in the following manner:

- Leave pay is set at 100% of all outstanding allowed accumulated leave at statement of position date;

- 13th cheque is made for January to March and is calculated on the actual December payout of the current

financial year divided by four.

1.28 Borrowing costs/Financial costs

In terms of the PFMA, the Authority is prohibited from borrowing. During the year under review, the Authority did

not enter into any borrowing activities and also did not incur any finance cost.

1.29 deposits

The Authority recognises deposits made in respect of exchange transactions in the statement of position as

non-current assets. These deposits consist of Aquazania for water bottles at R1,620 and Greater Newtown

Development Company for Office Rental for R302,100.

1.30 Staff advances/loans

The Authority recognises staff advances in the statement of position as current assets and any interest if

applicable in the statement of performance. These advances are granted in terms of the Authority’s HR policy on

staff loans and/or advances. One advance was granted during the year under review.

1.31 Financial Risk management

Risk management is performed in terms of the board’s Risk Management Plan.



2.1 pRopeRty, plant and equipment

year ended 31 march 2011

ComputerEquipment

Equipment Furniture &Fittings

MotorVehicles

LeaseholdImprovements

Total

R R R R R R

Opening net carrying amount 203,328 127,091 303,975 100 836,837 1,471,331

Gross carrying amount 1,634,689 744,620 1,781,986 100 1,696,030 5,857,425

Accumulated depreciation (1,431,361) (617,529) (1,478,011) - (859,193) (4,386,094)

Additions 134,854 23,103 - - - 157,957

Disposals (2) 4,122 - - - 4,120

Cost 28,457 7,067 - 35,524

Revaluation written back to Reserve 2 - - 2

Depreciation charge - disposals (28,457) (2,945) - (31,402)

Depreciation charge (162,043) (83,973) (141,616) - (169,603) (557,235)

Revaluation 50 557 982 - - 1,589

Closing net carrying amount 176,189 62,656 163,341 100 667,234 1,069,518


Accumulated depreciation (1,564,950) (698,558) (1,619,626) - (1,028,796) (4,911,930)

year ended 31 march 2010

Opening net carrying amount 268,739 221,594 435,637 100 1,006,440 1,932,510



Additions 84,164 1,899 14,968 - - 101,031

Disposals - - - - - -

Cost 82,139 2,375 3,652 - - 88,166

Revaluation written back to reserve 10 100 30 140

Depreciation charge – disposals (82,139) (2,375) (3,652) - - (88,166)

Depreciation charge (149,566) (96,302) (146,600) - (169,603) (562,071)

Revaluation - - - - -

Closing carrying amount 203,327 127,091 303,975 100 836,837 1,471,330




2010/11 2009/10

R R

2.2 intangible assets

computer software

opening net carrying amount 49,119 106,249

Gross carrying amount 188,004 175,264

Accumulated amortisation (138,885) (69,015)

Accumulated impairment deficit - -

Revaluation adjustments - -

Additions 28,768 20,238

Amortisation (46,678) (77,366)

Disposals - (7,496)

Revaluation written back - (2)

Amortisation – disposals - (7,496)

Impairment deficit (recognised/reversed) - -

closing net carrying amount 31 march 31,208 49,118

Gross carrying amount 216,772 188,004

Accumulated amortisation (185,563) (138,885)

Accumulated impairment deficit - -

3. tRade and otheR ReceiVaBleS 308,720 303,720

(exchange transactions)

5,000 -

3.1 trade receivables 5,000 -

3.2 deposits 303,720 303,720

Water bottles 1,620 1,620

Rental premises 302,100 302,100

4. pRoViSionS

See note 6.



2010/11 2009/10

R R

5. pRepaymentS 113,417 180,413

SAACI 827 788

National Circulation - 19,587

Immix 12,710 41,083

Independent Newspapers 6,431 8,995

VIP Licence 12,912 10,901

CEO Tech 1,473 -

LUUK 5,700 28,500

Pastel - 965

Encirc 2,969 -

Media Circulation 16,780 -

Festival Calendar - 37,620

MWeb 8,970 -

Sonke - 1,795

ICCA 20,208 21,755

SAMRO 770 743

IT WEB - 206

Brainstorm - 154

Nag - 338

Nashua 6,983 6,983

Meltwater 5,058 -

SABC 375 -

Leisure Golf 11,250 -

6. tRade and otheR payaBleS 12,313,600 6,222,633

Trade creditors 7,205,265 1,299,443

Lease liabilities 3,416,787 3,444,841

13th cheque 300,000 277,000

Leave pay 1,377,249 1,197,249

Staff savings 7,100 4,100

Staff claims 7,199 -

7. ReVenue 76,309,742 50,901,815

Revenue comprises revenue received in respect of:

Grants – non-exchange transactions 67,151,000 48,500,000

Other Income – exchange transactions 7.1 8,117,739 1,519,022

Income from Investments 7.2 1,041,003 882,793


2010/11 2009/10

R R

7.1 other income 8,117,739 1,519,022

8,066,672 1,048,447

Grant Westrand - 200,000

Ekurhuleni Africa Day Celebrations 1,500,000 -

SWC 2010 Gateway Media 3,400,000 -

SWC 2010 Dept Education 2,500,000 -

Compensation commissioner refund 21,961 -

Dept of Sport SASCOC 200,000 -

DEAT grant for Soccerex - 342,000

Ile de France – 2010 SWC - 284,000

Ekurhuleni SWC 2010 Impact Study 200,000 -

Co-exhibitor fees - 10,000

Registration fees 169,200 164,336

Registration other 3,382 2,542

Study assistance refund 35,490 2,418

Foreign exchange profit - 3,082

Telephone staff refund 36,639 40,070

7.1.1 other: Int. VAT; Lost Card; Auditorium; Nehawu and Dept of Sport

51,066 470,574

7.2 income from investments 1,041,003 882,793

Interest from Corporation for Public Deposits 726,727 641,890

Interest from ABSA 313,822 240,903

Interest from staff loans 454 -

8. eXpendituRe 75,897,936 47,791,668

8.1 administrative expenses 1,271,211 1,321,137

General and administrative expenses 80,159 66,406

Accounting fees 29,578 26,843

Bank charges 34,938 21,199

Parking official 15,643 18,364

Fees for non-executive board members 205,391 259,588

Internal audit fees 453,874 441,457

Legal fees 112,425 184,572

Entertainment 291,409 34,793

Stationery and printing 77,575 89,062

Training and development 50,380 245,259



2010/11 2009/10

R R

8.2 Staff costs (incl. wellness, labour, recruitment and study)

Wages and salaries 24,493,347 24,189,207

Basic salaries 8,479,878 11,098,423

Performance awards 1,920,141 1,533,601

Periodic payments 1,074,653 1,236,035

Other non-pensionable allowance 1,248,921 330,738

Temporary staff 1,135,954 789,504

Leave payments 101,263 25,098

Resignation leave 53,655 -

Overtime pay 1,000,606 493,872

CEO and senior manager’s emoluments 5,258,632 6,005,120

Defined pension fund contribution plan expense 1,864,758 1,095,931

Social contributions (employer’s contribution)

Medical 1,618,483 682,655

Unemployment Insurance Fund 95,960 87,850

Insurance (group life) 266,405 257,373

Other salary-related costs (accrual for leave pay/ 374,039 553,007

period payments as well as empl wellness, labour,

recruitment and study assistance)

8.3 auditors remuneration (Statutory audit)

Audit fees 330,136 464,331

8.4 Gifts, sponsorships and donations 12,259,824 6,108,193

8.5 operating expenses (incl. depreciation and amortisation)

37,543,416 15,708,801

36,939,504 15,069,364

Maintenance, repairs and running costs

Property and buildings 229,816 227,055

Machinery and equipment 1,426,069 678,403

Other maintenance, repairs and running costs 84,740 48,704

Deficit on disposal of asset 4,123 -

Rental in respect of operating leases (minimum lease payments)

Building 3,206,667 3,208,914

Plant, machinery and equipment 80,624 83,802

Vehicles 131,141 129,167

Net foreign exchange loss 2,832 3,401

Other operating expenses 31,773,491 10,689,919

Soccer World Cup 2010 23,969,766

Other 7,803,725 10,689,919


2010/11 2009/10

R R

8.6 depreciation (already included in other pragrammes 8.4)

557,235 562,071

Plant, machinery and equipment 83,973 96,302

Vehicles - -

Computer equipment and peripherals 162,043 149,566

Office furniture and fittings 141,616 146,600

Lease furniture and fittings 169,603 169,603

8.7 amortisation 46,678 77,366

9. ceo and SenioR manaGeR’S emolumentS (already included in Staff costs 8.2) 6,614,083 7,359,399

executive staff members Salaries Bonusesand perform

payments

prov fundcontrib

cell/med aidcontrib

total

R R R R R

D Robertson: CEO as from 01/07/2010

1,125,000 - - - 1,125,000

M Moeti: Registrar and ACEO until 30/06/2010

724,677 146,706 49,296 40,668 961,347

MN Kubeka: SMS Dest Marketing 667,880 143,471 50,091 37,596 899,037

S Moeketsi: SMS Corporate Affairs 657,278 144,402 49,296 40,668 891,644

JH Venter: Chief Financial Officer 769,241 175,010 57,693 10,684 1,012,628

KS Sithole: SMS R&ICT 657,278 130,709 49,296 13,068 850,351

M Kona: SMS Institutional Relations 657,278 129,464 49,296 38,039 874,077

Year ended 31/03/2011 5,258,632 869,761 304,968 180,723 6,614,083

Year ended 31/03/2010 6,005,120 802,316 310,130 241,831 7,359,399

2010/11 2009/10

R R

10. Gta BoaRd memBeRS coStS (already included in 8.1)

Board member emoluments/claims /uiF 205,391 237,400

Mr K Mthembu (Chairperson) 59,328 93,800

Ms N Majokweni (Deputy Chairperson) 28,363 19,000

Mr J Ntintili 24,750 23,800

Prof. L Magi until May 2010 750 12,000

Ms P Lion-Cachet until May 2010 - 26,600

M H Moolla (Chairperson Audit Comm) 44,700 27,400

Ms M Molotsi 32,750 17,800

Mr D Moshapalo 14,750 17,000



11. continGent liaBility

The Authority entered into an agreement with Trudon (Pty) Ltd, also known as Yellow Pages for the placement of an advertisement for R31,361.40. Subsequently it was discovered that the amount was per month for twelve months. Negotiations between the Authority and the company to terminate the agreement may not be successful whereby the Authority will be liable for the payment of R206,742.35 as per the March 2011 statement. No other contingent liabilities existed during this financial year.

2010/11 2009/10

R R

12. noteS to the caSh FloW Statement

12.1 Reconciliation of net (deficit)/surplus before taxation to cash (utilised)/generated from operations

Net (deficit)/surplus for the year (from trial balance) 412 3,110

Adjusted for:

Depreciation 557 562

Amortisation 47 77

Investment income (1,041) (883)

Operating (deficit)/surplus before working capital changes (25) 2,867

Working capital changes

Decrease/(increase) in accounts receivable 62 423

(Decrease)/increase in accounts payable 6,091 (1,405)

Cash utilised in operations 6,128 1,884

12.2 adjustments to property, plant and equipment

Additions to property, plant and equipment 158 101

Computer equipment 135 84

Equipment 23 2

Furniture and fittings - 15

12.3 adjustment to intangible assets

Additions to computer software 29 20

12.4 cash and cash equivalents at beginning of the year 10,176 7,890

Current bank account 1,361 7,695

Poverty relief savings account (restricted use) - 10

Mandela yard savings account (restricted use) - 11

CPD reserve bank account 8,809 167

Petty cash 6 6


2010/11 2009/10

R R

12.5 cash and cash equivalents at end of the year 14,172 10,176

Current bank account 1,631 1,361

Corporation for public deposits account (restricted use) 12,535 8,809

Petty cash 6 6

13. noteS to the Statement oF chanGeS in net aSSetS

13.1 Reserves – capital and general

The capital reserve fund was created in 1998 with a transfer of the surplus from the general reserve fund to the capital reserve fund. The capital reserve fund was subsequently transferred to the general reserve fund during the 2003/4 financial year. The general reserve reflects net assets and includes retained income for future use amounting to R3,372,511.77 as well as the non-distributable revaluation reserve fund of R9,520.

14. RetiRement BeneFit oBliGationS

The Authority has made provision for a Liberty Life group provident fund of 7.5% or 15% for GTA personnel. The Authority contributes 100% of the amount payable for provident fund for staff who join the scheme at 7.5% and 50% of the amount payable for staff who join at 15%. The Liberty Life provident fund is governed by the pension fund (Act No. 24 of 1956) and incorporated in the GTA staff policies.

15. opeRatinG leaSe aRRanGementS

At the statement of position date the GTA had outstanding commitments under non-cancellable operating leases, which fall due as follows

2010/2011R’000

2009/2010R’000

Not later than one year 3,559 3,259 Office rental lease

84 84 Equipment lease

61 61 Motor vehicle (1)


Later than one year but not 12,780 16,339 Office rental lease

later than five years 0 0 Equipment lease



Later than five years 0 0 Office rental lease

16,573 19,947 The Authority rents photocopy machines from Nashua from 01 February 2006 at R6,504.84 per month for three years plus escalation of 0 to15% per annum to be determined mutually. The lease agreement for copiers is automatically renewed at the end of the lease term unless mutually agreed not to extend. The Authority does not have the option to acquire the equipment.

Office space is rented from Akhona from 01 May 2005 for a period of nine years, 11 months at R117,249 per month inclusive of VAT plus escalation of between 8.5% and 12% per annum. The Authority rents two vehicles from ABSA from 15 March 2007 at R5,107.52 and from 7 February 2008 at R4,508.41 per month fixed for five years with buyback option after the term. The lease agreements bear no contingent lease payments.

The lease agreements do not impose any restrictions.



16. pReSentation cuRRency

The financial statement figures have been stated in Rand terms as this is the Authority’s functional currency. All amounts have been rounded to the nearest one thousand Rand (R1,000) in the statements and from Note 12 to 17 in the Notes to the Financial Statements. The detailed Statement of Performance (Income Statement – Annexure 1) is stated in Rand terms.

17. Related paRty tRanSactionS

transactionsThe Authority has one related party, namely Department of Economic Development which is its parent organisation responsible for primary funding. Grants amounting to R50,151,000 (subsidy); R14,000,000 (SWC 2010 funding); and R3,000,000 (GEGDS funding) were made to the Authority by the department f or the 2010/11 financial year.

BalancesThere were no outstanding balances from transactions between the department and the Authority at the 2010/11 Statement of Position date.

18. eVentS aFteR RepoRtinG date

The Department of Economic Development is currently in a process of realignment which may have an impact on the existence of the Authority in its current form.

19. non-capital commitmentS

operating leasesThe future minimum lease payments under non-cancellable operating leases for the Authority’s office, equipment and motor vehicles are as follows:

2010/2011R’000

Not later than one year 3,559 Office rental lease

84 Equipment lease

51 Motor vehicle (1)


Later than one year but not 12,780 Office rental lease

later than five years 0 Equipment lease

0 Motor vehicle (1)


Later than five years 0 Office rental lease

16,573

20. SenSitiVity analySiS

The Authority, fulfilling its mandate under the auspices of the provincial government, is reliant on government as its major source of revenue. It therefore does not anticipate any interest rate risk caused by fluctuating interest rates as it does not operate a system of debtors of significant value. The Authority also manages its risks through a risk management plan.


21. Financial inStRumentS

The Authority’s financial instruments are summarised as follows:

2011 R 2010 R

assets – Trade and other receivables

5,000 assets – Trade and other receivables

-

Cash and bank 14,286,186 Cash and bank 10,355,981

Total 14,291,186 Total 10,355,981

liabilities – Trade and other payables

12,313,600 liabilities – Trade and other payables

6,222,633

22. iRReGulaR, FRuitleSS and WaSteFul eXpendituRe

The Board is currently investigating the possible recovery of the irregular expense reported in the Annual Financial Statements 2008.

23. GiFtS, donationS and SponSoRShipS paid – local

peRiod name

puRpoSe 2010/11 R

2009/10 R’000

BudGetVote

april 2009 to march 2010 6,108

20/04/10 Tseola Dinare Sponsor tour for Japanese 6,710.00 0297/003

17/05/10 Spirit of Ubuntu SMME networking dinner 2,000.00 0247/006

21/05/10 Bassline Jazz Club (PTY) Ltd Africa Day celebration 1,500,000.00 0305/006

20/05/10 Fancy Free Gateway 2010 200,000.00 0305/002

12/05/10 Fedhasa Inland Fedhasa GTA workshop catering 2,368.00 0305/003

21/05/10 Jamiatul Ulama Printing of Muslim Tourist Guide 18,750.00 0301/006

27/05/10 999 Music Artist perfomance 6x weeks 450,000.00 0305/002

14/06/10 Vaal Meander Indaba 2010 SMME markerting collateral 2,986.80 0247/001

07/05/10 Gauteng Tour Operastors Association

Indaba SMME support 14,500.00 0247/001

01/06/10 Shwe Shwe Poppis Trust Keyrings distributed to SASCOC 3,750.00 0305/007

07/05/10 Copy Tech Brochures/Indaba marketing collateral 1,595.00 0247/001

01/06/10 Tsheola Dinare Tour & Transport Transfers rendered during SASCOC dinner 10,830.00 0305/007

01/06/10 Birchwood Management Company

Conferencing & SASCOC dinner hosting 136,312.00 0305/007

14/06/10 Mbokoto Guest Lodge Indaba 2010 SMME markerting collateral 2,084.00 0247/001

08/06/10 Kasietainment Events & Projects

Diski Dance perfomance at SASCOC event 3,600.00 0305/007

14/06/10 Isolomzi Place Indaba 2010 SMME markerting collateral 3,000.00 0247/001

14/06/10 Baobab Coaches Indaba 2010 SMME markerting collateral 2,572.91 0247/001

29/04/10 Copy Tech Indaba 2010 SMME markerting collateral 3,000.00 0247/001

03/05/10 The Orange Print House Indaba 2010 SMME markerting collateral 3,000.00 0247/001

17/05/10 Phuthi Transport & Design Indaba 2010 SMME markerting collateral 3,000.00 0247/001

03/05/10 Multilayer Trading Brochure payment for Indaba 2010: Usiba Lodge

3,000.00 0247/001



23. GiFtS, donationS and SponSoRShipS paid – local continued

peRiod name

puRpoSe 2010/11 R

2009/10 R’000

BudGetVote

17/05/10 FNP Communications Indaba 2010 SMME markerting collateral 3,000.00 0247/001

02/06/10 Crotchet And Batiks Corner SA Flags distributed at SASCOC dinner 3,000.00 0305/007

21/06/10 Roots Restaurant and Gallery Indaba 2010 SMME markerting collateral 3,000.00 0247/001

21/06/10 MEDC Indaba 2010 SMME markerting collateral 3,000.00 0247/001

21/06/10 LA Rose Guest House Indaba 2010 SMME markerting collateral 3,000.00 0247/001

21/06/10 Hope Engravers Indaba 2010 SMME markerting collateral 3,000.00 0247/001

21/06/10 Croydon Motel & Holiday Apartment

Indaba 2010 SMME markerting collateral 3,000.00 0247/001

21/06/10 Isolomzi Place Tourism Business Network Forum 79,230.00 0247/003

23/06/10 Iphiva Travel & Sports Tours cc Payment for hospitality & transfer 355,270.40 0305/002

17/06/10 Nikame Trading cc Various 2010 SA Flag colours promotional material

136,508.56 0352/004

10/06/10 Nhlanhla SASCOC gifts 6,485.00 0305/007

28/05/10 Love Jozi Gateway 2010 170,846.10 0305/002

01/06/10 Jabulani Zulu Jazz perfomance in SASCOC dinner 13,000.00 0303/003

30/06/10 Tsheola Dinare Tour & Transport Eteya support 75,000.00 0247/003

28/06/10 Izicwe Academy Payment : FIFA World Cup Fans Tournaments

400,000.00 0305/002

01/06/10 Sport For All Perfomance & transport fee 5,000.00 0303/003

07/07/10 RETOSA Festival of Africa 200,000.00 0305/002

09/07/10 Iphiva Travel & Sports Tours cc Payment for tours; hospitality & transfers 355,167.00 0305/002

21/07/10 Saltha Gauteng Province Saltha Tourism Sponsorship 50,000.00 0247/006

23/07/10 Blue Falcon 86 Trading (Pty) Ltd Sponsorship for Design Magazine 84,980.00 0297/004

29/06/10 Now Media Sponsorship for Gauteng Route Planner 287,280.00 0305/002

02/08/10 Tourism KwaZulu Natal Indaba SMME networking dinner 25,000.00 0247/006

19/08/10 999 Music Payment for Holiday Programme during 2010 FIFA WC

2,440,000.00 0305/010

30/07/10 JTC Sponsor World Sport Destination Exhibition 65,025.60 0305/002

Bassline Jazz Club (PTY) Ltd Africa Day Celebration - addition 1,500,000.00 0305/006

1/10/10 SALTA Conference sponsorship 25,000.00 0352/001

4/10/10 Urban Genesis World Cup sponsorship (Precincts) 122,674.15 0305/002

21/10/10 RASA Management Services RASA Fun Golf Day: chairperson participation

5,000.00 0380/006

14/10/10 Izinyama Catering & Pub Catering: Tourism Service Excellence Roadshow

15,000.00 0400/023

08/11/10 Avusa Payment for Holiday Programme during 2010 FIFA WC

1,300,000.00 0305/010

06/12/10 Market Photo Workshop WC: Rural & Urban photo diary 30,000.00 0305/002

08/12/10 JMT Tours & Safaris Lunch & Transport costs for Soweto Tour 2,100.00 0247/006

15/12/10 Seema Printing Gifts for Board/Senior Managers 19,448.40 0380/002

15/12/10 Tsheola Dinare Tour & Transport Sponsorship for Witsa delegation 34,780.00 0303/003

15/12/10 Gauteng Tguides Association Sponsorship for Estonia 2011 37,000.00 0400/017

19/01/11 Love Jozi T-Shirts for Gateway Roadshow 153,754.08 0305/002

20/01/11 International Hotel School Re Football for Hope 49,500.00 0247/004

03/03/11 Market Photo Workshop Photography marketing website portal development

32,000.00 0298/001


23. GiFtS, donationS and SponSoRShipS paid – local continued

peRiod name

puRpoSe 2010/11 R

2009/10 R’000

BudGetVote

31/03/11 Simkada Indaba strategy 393,300.00 0247/001

31/03/11 Sedibeng District Municipality Sedibeng Birding Route 300,000.00 248/001

31/03/11 Yeoville Bellevue Community Trust

Community development 70,000.00 0248/001

31/03/11 National Tourism & Hosp Assoc Meadowlands tourism dev 70,000.00 0248/001

31/03/11 Krazy Boys 2010 sponsorship 154,416.25 0305/002

31/03/11 Meeting Review Ltd The World Destination Episode sponsorship 82,000.00 0303/003

31/03/11 Avusa Extratime sponsorship 1,500,000.00 0305/002

31/03/11 D April Premarketing Indaba sponsorship 50,000.00 0301/001

31/03/11 T Musicman Joy of Jazz sponsorship 150,000.00 0301/001

31/03/11 SA Arts Exchange Art Performance sponsorship 50,000.00 0301/001

31/03/11 Independent Instit of Education

Brand development 100,000.00 0298/001

31/03/11 Johannesburg Tourism Company

Meetings Africa sponsorship 171,000.00 0303/003

april 2010 to march 2011 12,259,824.25



MATERiALiTy ANdSIGNIFICANCE FRAMEWORKFor the year ended 31 March 2011

The Authority’s Materiality Framework is as follows:

Legislative reference Quantity level Quality level

PFMA sec 50(1)(C)

(1) The Accounting Authority for a public entity must –

(c) on request, disclose to the executive authority responsible for that public entity or the legislature to which the public entity is accountable, all material facts, including those reasonably discoverable, which in any way may influence the decisions or actions of the executive authority or that legislature; and

All figures that might influence the decision by the executive authority. Monthly reports to the DED will include explanatory notes if the actual expenditure/revenue per business unit deviates more than 5% from budget.

Any item or event of which specific disclosure is required by law.

All facts discovered of which its omission or misstatement, in the board’s opinion, could influence the decision by the executive authority.

PFMA sec 54(2) All transactions as required All figures as applicable

PFMA sec 55(2)(b)(i)

(2) The annual report and financial statements referred to in subsection (1)(d) must include particulars of –

(b) any material losses through criminal conduct and any irregular expenditure and fruitless and wasteful expenditure that occurred during the financial year;

Any loss through criminal conduct identified.

Any loss through irregular/fruitless/wasteful expenditure and if the combined total exceeds the planning materiality figure used by the external auditors for the year under review.

Any loss identified through criminal conduct


dETAiLEd sTATEMENT Of PERfORMANcEANNExURE 1For the year ended 31 March 2011

Budget2010/11

R

actual2010/11

R

Budget2009/10

R

actual2009/10

R

income 76,176,000 76,309,742 50,245,000 50,901,815

DFEA subsidy 50,151,000 50,151,000 48,500,000 48,500,000

Grant Westrand - - 200,000 200,000

The Tourist Refund - - 180,000 -

Grant Dept of Sport Soccerex 200,000 200,000 342,000 342,000

Ile de France 2010 SWC 300,000 - 284,000 284,000

Co-exhibitor fees 12,000 - 11,000 10,000

Grant SWC 2010 Gateway 14,000,000 14,000,000

Ekurhuleni Africa Day Celebrations 1,500,000 1,500,000

Grant SWC 2010 Gateway Media 3,400,000 3,400,000

Dept of Education 2,500,000 2,500,000

Grant GEGDS 3,000,000 3,000,000

Ekurhuleni SWC impact study 200,000 200,000

Registration fees 70,000 169,200 70,000 164,336

Other 20,000 51,066 20,000 470,574

Registration other 1,000 3,382 1,000 2,542

Study assistance refund 2,000 35,490 2,000 2,418

Compensation commissioner - 21,961 - -

Telephone staff refund 40,000 36,639 35,000 40,070

Foreign exchange profit - - - 3,082

Interest received 780,000 1,041,003 600,000 882,793

Contribution from accumulated surplus - - - -

eXpendituRe 75,987,000 75,897,938 49,455,000 47,791,669

Finance 4,311,000 4,299,011 4,120,000 4,112,893

Fin – Provision for leave 180,000 180,000 60,800 60,783

Fin – Provision for 13th cheque 23,000 23,000 7,000 7,000

Fin – Conference & meetings 89,000 87,520 20,000 18,671

Fin – Accounting fees 30,000 29,578 27,000 26,843

Fin – Audit internal 454,000 453,874 442,000 441,457

Fin – Audit external 331,000 330,136 464,500 464,331

Fin – Bank charges 37,000 34,938 21,500 21,199

Fin – Financial planning 5,000 2,021 - -

Fin – Insurance 191,000 190,952 183,000 182,426

Fin – Staff total 2,359,000 2,358,956 2,252,200 2,250,747

Fin – Scrapped assets 5,000 4,123 2,000 -

Fin – Amortisation 47,000 46,678 77,400 77,366

Fin – Depreciation 560,000 557,235 562,600 562,071



Budget2010/11

R

actual2010/11

R

Budget2009/10

R

actual2009/10

R

coRpoRate SeRViceS

operational cost 8,434,000 8,419,176 9,907,000 9,733,942

CS – Conference and meetings 40,000 38,318 25,790 22,773

CS – Employee wellness 30,000 28,282 28,000 27,039

CS – Courier and postage 7,000 6,911 10,210 10,209

CS – Entertainment 294,000 291,409 37,000 34,793

CS – Staff dev and training 51,000 50,380 246,000 245,259

CS – Labour relations 10,000 8,881 157,000 149,044

CS – Legal fees 113,000 112.425 185,000 184,572

CS – Library research 6,000 5,305 2,000 1,850

CS – Motor vehicle expenses 85,000 84,740 63,000 48,704

CS – Office maint and recep 230,000 229,816 240,000 227,055

CS – Office electricity 366,000 365,546 270,000 251,638

CS – Lease office rent 3,207,000 3,206,667 3,209,000 3,208,914

CS – Parking official 16,000 15,643 20,000 18,364

CS – Organisational development 220,000 219,735 213,000 212,538

CS – Motor vehicle lease 132,000 131,141 150,000 129,167

CS – Printing and stationery 78,000 77,575 95,000 89,062

CS – Recruitment - - 35,100 35,072

CS – Refreshments 85,000 84,261 74,900 70,784

CS – Security and safety 16,000 15,393 35,000 31,005

CS – Staff total 2,782,000 2,781,200 3,721,000 3,720,681

CS – Study assistance 134,000 133,876 275,000 274,069

CS – Subscriptions and library 59,000 58,669 73,000 72,721

CS – Telephones 473,000 473,003 742,000 668,628

touRiSm deVelopment 5,266,000 5,225,337 5,840,000 5,446,201

Dev – Tourism enterprise dev 1,459,000 1,458,182 1,180,000 1,142,805

Dev – Small business network 273,000 272,683 179,000 178,078

Dev – Youth development 67,000 66,720 68,500 30,000

Dev – How to booklets 180,000 178,000 227,000 217,730

Dev – Conference and workshops 245,000 243,585 285,500 284,787

Dev – Sport township tourism 150,000 148,000 167,000 156,429

Dev – Grading of amenities - - 500,000 500,000

Dev – Tourism awareness prog 164,000 163,350 87,000 60,776

Dev – Business development 155,000 154,333 85,000 75,130

Dev – Tour infrastr/invest support 873,000 872,812 861,000 604,751

Dev – Staff 1,700,000 1,697,673 2,200,000 2,195,715


Budget2010/11

R

actual2010/11

R

Budget2009/10

R

actual2009/10

R

touRiSm maRKetinG and cc 41,451,000 41,420,414 13,460,000 12,939,245

Mark – image mark coll & advert 2,705,000 2,704,384 115,000 113,594

Mark – image building campaigns - - 92,000 91,106

Mark – cooperative marketing (SAT) - - 5,000 -

Mark – corporate gifts 18,000 17,100 52,000 4,685

Mark – product development 197,000 196,870 8,000 -

Mark – LT – Dom/intraprov camp 1,937,000 1,936,948 1,807,000 1,806,149

Mark – exhibitions & conferences 788,000 787,296 - -

Mark – hosting 23,000 22,230 - -

Mark – LT – African Leisure Camp 28,000 27,137 33,000 24,112

Mark – info prov – distr of coll mat 277,000 276,915 30,000 26,351

Mark – info prov – visitor info centr 1,000 892 437,000 13,933

Mark – info prov – temps for funct 241,000 240,477 117,000 116,595

Mark – international trade camp 580,000 579,202 986,000 985,165

Mark – bus tourism – stakeh 41,000 40,699 4,000 -

Mark – bus tourism – conv bur 71,000 70,213 10,000 9,614

Mark – bus tourism – MICE exhib 1,238,000 1,231,294 219,000 212,467

Mark – business tour – conf 45,000 44,592 - -

Mark – sponsorship opportunities - - 10,000 6,568

Mark – SWC 2010 Gateway (DF) 10,055,000 10,053,520 1,094,000 1,091,892

Mark – enterp develop SWC 2010 2,244,000 2,243,985 - -

Mark – Africa Day cele SWC 3,181,000 3,180,236 - -

Mark – SASCOC sponsorship 164,000 163,977 - -

Mark – SWC 2010 Gateway temps 969,000 964,642 - -

Mark – SWC 2010 Gateway media 3,972,000 3,970,285 - -

Mark – SWC 2010 Cool to School 2,440,000 2,440,000 - -

Mark – SWC 2010 info off overt 351,000 350,425 - -

Mark – Soccerex - - 214,000 211,697

Mark – Meetings Africa - - 1,401,000 1,400,292

CC – Go Gauteng 799,000 798,170 - -

CC – campaign & events 60,000 58,530 - -

CC – hosting of delegates 55,000 53,935 - -

CC – advert & advertorials 667,000 665,488 - -

CC – conference & monitoring 1,000 75 - -

CC – media monitoring 22,000 20,016 - -

Mark & CC – staff 8,281,000 8,280,979 6,826,000 6,825,024



Budget2010/11

R

actual2010/11

R

Budget2009/10

R

actual2009/10

R

coRpoRate communicationS 2,618,000 2,599,038

C/C – corporate comm strat

C/C – 24/7 Go Gauteng - - 989,000 988,500

C/C – The Tourist - - 75,000 75,000

C/C – campaign & event support - - 440,000 438,330

C/C – hosting of trade & VIP del - - 40,000 37,154

C/C – advertising & advertorials - - 467,000 466,167

C/C – media monitoring - - 57,000 56,430

C/C – staff - - 550,000 537,457

ReSeaRch and ict 6,455,000 6,445,054 4,388,000 4,352,182

R&ICT – content manag system 86,000 83,125 199,000 198,909

R&ICT – SWC impact study 850,000 850,000 - -

R&ICT – staff 3,222,000 3,222,763 3,321,000 3,320,152

R&ICT – professional memberships 1,000 - 10,000 --

R&ICT – conference & seminars 105,000 104,278 50,000 47,434

R&ICT – implimentation of SRP 37,850 37,850 23,000 15,328

R&ICT – strategy dev/impl 340,000 336,300 - -

R&ICT – subscriptions 3,150 2,650 15,000 8,153

R&ICT – dev/maint of IT,Tel,Aud, 1,427,000 1,426,069 679,000 678,403

R&ICT – connectivity 302,000 301,395 - -

R&ICT – lease of equipment 81,000 80,624 91,000 83,802

inStitutional RelationS 2,811,000 2,807,623 2,930,000 2,568,462

I/R – local auth, comm tour proj 114,000 113,263 188,000 187,396

I/R – stakeholder engagem progr 936,000 934,713 427,000 183,460

I/R – strategic partnerships 32,000 31,596 108,000 16,554

I/R – instit F/W for respons tourism 137,000 136,509 350,000 350,000

I/R – visitor safety strat awareness 30,000 29,900 372,000 371,136

I/R – conference & workshops 46,000 45,703 20,000 1,473

I/R – staff 1,516,000 1,515,940 1,465,000 1,458,443


Budget2010/11

R

actual2010/11

R

Budget2009/10

R

actual2009/10

R

coRpoRate aFFaiRS 3,925,000 3,920,813 3,109,000 3,104,016

C/A – organisational planning & integr

344,000 343,880 114,000 113,408

C/A – board secretariat 152,000 151,401 331,000 330,309

C/A – attendance & conf & forums 131,000 130,794 281,000 280,782

C/A – attend conf & forums local 99,000 98,597 10,000 9,566

C/A – attend conf & forums intern 293,000 292,892 21,000 20,396

CA – attend conf & forums board loc 195,000 194,021 310,000 309,611

CA – attend conf & forums board int 187,000 186,558 126,000 125,356

C/A – board payments & allowances 206,000 205,391 260,000 259,588

C/A – corporate hosting programme 2,000 1,426 31,000 30,831

C/A – staff 2,316,000 2,315,852 1,625,000 1,624,169

quality aSSuRance 3,334,000 3,330,509 3,083,000 2,935,691

QA – strategy development 9,000 8,212 - -

QA – conference & workshops (DF) 45,000 44,021 113,000 111,483

QA – registration of tourist guides 156,000 155,745 186,000 80,476

QA – tourist guide directory 192,000 191,800 213,000 199,792

QA – lecture series (DF) 986,000 984,784 841,000 840,129

QA – staff 1,946,000 1,945,946 1,730,000 1,703,812

total expenditure 75,987,000 75,897,938 49,455,000 47,791,669

net Surplus/deficit For the year 189,000 411,804 790,000 3,100,145



sEcTiON 8: OUTLOOkFOR THE COMING YEAR

International tourist arrivals grew by 4.5% in the first four months of 2011, despite new challenges emerging since the beginning of the year. According to the latest issue of the UNWTO World Tourism Barometer, growth was positive in all regions with the exception of the Middle East. Some sub-regions achieved double-digit growth: South America (+17%), South Asia (+14%) and South-East Asia (+10%).

“Global tourism continues to consolidate the recovery of 2010 despite the impact of recent developments in the Middle East and North Africa, as well as the tragic events in Japan, which are temporarily affecting travel flows to these regions. We should nonetheless remain vigilant as we face other persisting uncertainties such as high unemployment and increased public austerity measures,” said UNWTO secretary general Taleb Rifai.

The UNWTO expects that destinations currently facing difficulties will see demand recover towards the end of the year. “It is time to support those destinations and help their tourism sectors to rebound, contributing to overall economic and social stability and progress,” Rifai added.

Short-term prospects remain largely favourable, as reflected in the UNWTO Confidence Index based on a survey among the UNWTO panel of experts. In spite of the changed circumstances, the more than 350 participating experts worldwide maintained a positive outlook for the period May to August.

europe leading tourism GrowthBetween January and April 2011 destinations worldwide recorded 268-million international tourist arrivals, some 12-million more compared with the 256-million registered in the same period in 2010.

April was the strongest month with an estimated increase of 6%. This reflects a late Easter holiday and contrasts with the week April of 2010 when European airspace was closed for nearly a week due to the ash cloud following the eruption of a volcano in Iceland. January (+6%) was also strong, while February and March were comparatively weaker (both at around +3%).

Europe exceeded expectations (+6%) and posted the highest growth in the first four months of 2011. Results reflect a delayed recovery in various European destinations and source markets, the late Easter holiday and the compensation for the negative month of April 2010, affected by the volcanic ash cloud. Destinations in Northern, Eastern and Southern Europe performed particularly well.

Growth in Asia and the Pacific (+5%) was in line with the world average, but slightly below previous prospects. Asia, and in particular North-East Asia, suffered the impact of the earthquake and tsunami in Japan, which affected both its inbound and outbound travel as well as intra-regional travel from other markets.

In the Americas, international tourist arrivals increased by 5%, driven by the strong results of South America, which contrasted with the below-average growth of North and Central American destinations.

The Middle East (-7%) and North Africa (-11%) have been considerably affected by recent developments. Nonetheless, some destinations in the Middle East have shown particularly positive results, such as Saudi Arabia and Dubai (United Arab Emirates), demonstrating the dynamism of the sector in the region.

Within Africa (+2%), arrivals to sub-Saharan Africa (+8%) stand out.

positive outlook for the Remainder of the year As the peak tourist season got under way in the northern hemisphere, short-term prospects remained positive. This is reflected in the UNWTO Confidence Index, which remained largely optimistic for the period May to August 2011.

There are, however, marked differences in the confidence levels for different world regions, with experts in the Americas and Europe anticipating the best outcomes. Confidence remains high in Africa, but lower than might have been expected in Asia and the Pacific. Experts in the Middle East are the least optimistic.

“The sustained optimism shown by the UNWTO Confidence Index is reassuring, especially as we still face many factors which could dampen growth. While global economic prospects indicate an improved second half of the year, the UNWTO remains alert to social instability in certain parts of the world, volatile oil prices and concerns over fiscal stability in the US and Europe,” said Rifai.

The UNWTO maintains its forecast for international tourist arrivals in 2011 at between 4% and 5%, slightly above the long-term average and in line with previous assessments. The developments in the Middle East, North Africa and Japan are not expected to significantly alter the global forecast.

South africa and Gauteng The second quarter Tourism Business Index released by the Tourism Business Council of South Africa, in partnership with Grant Thornton and First National Bank, reflects a mixed-bag outlook among the various sub-sectors of the industry. Some sub-sectors are more bullish than the accommodation sector, which is arguably the best indicator of destination performance.

South Africa remains among the better performance destinations and the country is expected to benefit from the weakness of currency occasioned in the main by the economic uncertainties in the world’s major economies, led by the US.

Gauteng, in particular, can be expected to continue reaping benefits from the sound performance of African markets, which drive the overall international arrivals in the country, as well as tourism receipts.

Furthermore, while leisure tourist arrivals may somewhat dwindle, Gauteng can be expected to benefit from business tourist arrivals. But this may skew the demand in favour of accommodation and other services located mainly in major business districts such as Sandton. Gauteng’s leading revenue-generating experience, shopping, has proven that it can cushion the provincial tourism economy against the fluctuating currency.

1 Central Place


Newtown, Johannesburg 2011

www.gauteng.net

TOURISM

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