SOCIO-ECONOMIC IMPACT ASSESSMENT OF TOURISMSUMMARY OF THE 2016/17 FESTIVE SEASON PERFORMANCE

Presentation to the Durban Chamber Tourism Committee

RESEARCH APPROACH

Timeframes• Festive Season defined as 1 December 2016-16 January 2017

Visitor Intercept Surveys• 585 surveys conducted at 16 locations• Key data on length of stay, type of accommodation used, spend by

category per day, perceptions/ratings of eThekwini Municipality• Allows for surveying of day visitors

Accommodation Surveys• All accommodation types & standards• 23% sample of rooms available• Room occupancies, origin of guests & purpose of visit obtained• Top foreign & domestic source markets identified

RESULTS OF THE ACCOMMODATION SURVEY

• 2016 Average room occupancy (ARO) was 78% (2015 ARO = 83%)

• Top domestic source market was Gauteng• Top foreign source markets were Germany, UK & Netherlands

% Domestic – KZN % Domestic – Rest of SA

% Foreign0%

20%

40%

60%

80%

100%

6%

80%

14%10%

80%

10%

Origin of overnight visitors

2015/16 2016/17

% Leisure % Business travel

% VFR % Conference % Other0%

20%

40%

60%

80%

100%81%

17%

2% 0% 0%

77%

19%

3% 0% 1%

Purpose of visit overnight visitors

2015/16 2016/17

NUMBER OF VISITORS

VISITOR SPEND

All visitors Domestic overnight

Foreign overnight

Day visitorsR 0

R 500

R 1,000

R 1,500

R 2,000

R 2,500

R 3,000

R 1,424

R 838

R 1,755

R 2,575

Spend per person per day

Accommodation11%

Pre-paid expenses, incl airfares

59%

Other transport8%

Other, incl meals & drinks21%

Spend by category (all visitors)

• In 2015, average daily spend of all visitors was R1 364

• Domestic overnight was R905

• Foreign overnight was R1 586

• Day visitors R2 273

ECONOMIC CONTRIBUTION OF TOURISM TO ETHEKWINI FESTIVE SEASON

2015/16 2016/17Direct expenditure Domestic overnight R2.1 billion R2.0 billion Foreign overnight R372.4 million R337.8 millionTotal overnight direct expenditure R2.5 billion R2.3 billion Day visitor direct expenditure R202.7 million R244.5 million Total direct expenditure R2.7 billion R2.6 billion

Economic contribution eThekwini's GDP R4.6 billion R4.4 billion Employment sustained/created (annualised) 10 791 9 848Labour remuneration R963.8 million R919.1 million Contribution to taxes R307.6 million R294.0 million

VISITOR RATINGS OF DURBAN AS A TOURISM DESTINATION

Day visitors Overnight domestic Overnight foreign 0%

10%

20%

30%

40%

50%

60%

70%

80%

69%

59%

16%

26%

34%

64%

Excellent Good

DO YOU PERCEIVE DURBAN AS A VALUE FOR MONEY DESTINATION?

All visitors Day visitors Overnight domestic Overnight foreign 95%

100%

105%

99%99%

98%

100%

Yes

Thank you