TOURISM - Provincial Government · 2016-03-15 · Annual Performance Report Broad-based black...

TOURISM

CONTENT

GENERAL INFORMATION

GAUTENG TOURISM AUTHORITY

GENERAL INFORMATION 04

LIST OF ABBREVIATIONS 05

MESSAGE FROM THE MEC 06

FOREWORD FROM THE CHAIRPERSON

OF THE BOARD 08

CHIEF EXECUTIVE OFFICER'S OVERVIEW 13

STATEMENT OF RESPONSIBILITY AND

CONFIRMATION OF ACCURACY 15

STRATEGIC OVERVIEW 16

LEGISLATIVE AND OTHER MANDATES 17

ORGANISATIONAL STRUCTURE 18

OFFICE OF THE CEO 24

FINANCE 25

CORPORATE MANAGEMtNT 26

RESEARCH & STRATEGY 27

PLANNING & REPORTING AND 27

MONITORING & EVALUATION

RESEARCH & STRATEGY 27

EQUITY ASSURANCE/TRANSFORMATION 28

LEGAL & COMPLIANCE 28

REGIONAL & RESPONSIBLE TOURISM 30

RESPONSIBLE TOURISM 30

REGIONAL TOURISM 30

DESTINATION MANAGEMENT 32

& DEVELOPMENT

DESTINATION MANAGEMENT 32

TOURISM INFRASTRUCTURE. 36

INVESTMENT & DEVELOPMENT

THE TOWNSHIP TOURISM PROGRAMME 38

INTEGRATED DESTINATION 40

MARKETING & COMMUNICATIONS

BRAND MANAGEMENT 43

PERFORMANCE INFORMATION DESTINATION COMMUNICATIONS 46

THE GAUTENG CONVENTION 48

SITUATIONAL ANALYSIS 20 & EVENTS BUREAU

SERVICE DELIVERY ENVIRONMENT 20 LEISURE & CONSUMER MARKETING 52

ORGANISATIONAL ENVIRONMENT 21 DIGITAL MARKETING 53

KEY POLICY DEVELOPMENTS 21 TRADE MARKETING 54

-AND LEGISLATIVE CHANGES

STRATEGIC OUTCOME-ORIENTED GOALS 22

PERFORMANCE INFORMATION 24

BY PROGRAMME 2014/2015

HUMAN RESOURCE MANAGEMENT

INTRODUCTION 72

HUMAN RESOURCE OVERSIGHT STATISTICS 72

GOVERNANCE

INTRODUCTION 58

EXECUTIVE AUTHORITY 58

THE ACCOUNTING AUTHORITY 59

- THE GTA BOARD

RISK MANAGEMENT 66

INTERNAL CONTROL UNIT 66

INTERNAL AUDIT AND 66

AUDIT COMMITIEES

COMPLIANCE WITH LAWS 68

AND REGULATIONS

FRAUD AND CORRUPTION 68

MINIMISING CONFLICT 68

OF INTEREST

CODE OF CONDUCT 68

HEALTH, SAFETY AND 70

ENVIRONMENTAL ISSUES

SOCIAL RESPONSIBILITY 70

DESTINATION PERFORMANCE

GAUTENG TOURISM PERFORMANCE 76

INTERNATIONAL TOURISM IN SOUTH AFRICA 77

INTERNATIONAL TOURISM IN GAUTENG 77

DOMESTIC TOURISM 79

FINANCIAL INFORMATION

ANNUAL FINANCIAL STATEMENTS 87

PERFORMANCE REPORT

STRATEGIC GOAL l: 82

STRATEGIC GOAL 2: 84




GENERAL INFORMATION

1 .1 GAUTENG TOURISM AUTHORITY GENERAL INFORMATION

Registered name:

Physical address:

Postal address:

North West

Gauteng Tourism Authority

124 Main Street

Marshalltown

Johannesburg

South Africa

PO Box 155

Newtown

2113

Free State

Telephone number:

Email:

Website:

Internal auditors:

Banker:

Company secretary:

Limpopo

t I

ICEMPTONPAAK

HEIOELBEAG �

:Z.1::::J

+27 (0) 11 085 2500

[email protected]

www.gauteng.net

Phandahanu Forensics (Pty) Ltd

ABSA/First National Bank

Yolanda du Preez

SAONKHOIISTSPRUIT

-� ..

Mpumalanga

1.2 LIST OF ABBREVIATIONS

AG

AIDC

APP

APR

BBBEE

Auditor-General

Automotive Industry Development Centre

Annual Performance Plan

Annual Performance Report

Broad-based black economic empowerment

BRICS Brazil. Russia. India. China & South Africa

CATHSSETA Cultural. Arts. Tourism. Hospitality

CCMA

CEO

CFO

COH

and Sports Sector Education and Training Authority

Commission for Conciliation.

Mediation and Arbitration

Chief executive officer

Chief financial officer

Cradle of Humankind

COHWHS Cradle of Humankind World Heritage Site

DAC

DED

EMITI

EIBTM

ETEYA

EXSA

Department of Arts and Culture

Department of Economic Development

Eastern Mediterranean International Tourism and Travel

European Incentive and Business Travel and Meetings

Emerging Tourism Enterprise of the Year

Exhibition Association of Southern Africa

FAM Familiarisation

FEDHASA Federated Hospitality Association of South Africa

GATOA Gauteng Tour Operators Association

GCB Gauteng Convention Bureau

GCR Global City Region

GDP Gross Domestic Product

GDPR Gross Domestic Product by Region

GFC Gauteng Film Commission

GEGDS Gauteng Employment Growth and Development Strategy

GGDA Gauteng Growth and Development Agency

GEP Gauteng Enterprise Propeller

GEYODI Gender. youth and disability

GPF Gauteng Partnership Fund

GHS Ga-Rankuwa Hotel School

GRAP Generally Recognised Accounting Practice

GTA Gauteng Tourism Authority

GTSS Gauteng Tourism Sector Strategy

ICCA International Congress and Convention Association

ICT Information Communications Technology

IDP Integrated development plan

IGR

IMEX

1TB

IT

JTC

MAL

M&E

Inter-governmental relations

Incentive. meetings. events and exhibition

lnternationale Tourismus-Borse

Information Technology

Johannesburg Tourism Company

Maropeng a· Afrika Leisure

Monitoring and evaluation

MEC Member of Executive Council

MINMEC Ministers and Members of Executive Council

MOU

MTEF

NDT

NGP

NTSS

OHS

POE

POi

PFMA

PR ASA

RASA

SABC

SAACI

Memorandum of Understanding

Medium Term Expenditure Framework

National Department of Tourism

National Growth Path

National Tourism Sector Strategy

Occupational Health and Safety

Portfolio of evidence

Point of interest

Public Finance Management Act

Passenger Rail Agency of South Africa

Restaurant Association of South Africa

South African Broadcasting Corporation

South African Association for the Conference Industry

SADC Southern Africa Development Community

SMART Simple. measurable. attainable. realistic and timely

SAT South African Tourism

SATSA Southern African Tourism Services Association

SMME Small. medium and micro enterprise

STATSSA Statistics South Africa

TER Township Economy Revitalisation

TFDS Total foreign direct spend

TMR Transformation. Modernisation and Revitalisation

TEP Tourism Enterprise Partnership

T GCSA Touris� Gr�ing Council of South Africa

TSA Tourism satellite account

TUT Tshwane University of Technology

UNWTO United Nations World Tourism Organisation

VIC Visitor Information Centre!

VFR Visiting friends and relatives

WTTC World Travel and Tourism Council

W TM World Travel Market

LEBOGANG MAILE

l .3 MESSAGE FROM THE MEC

Over the medium to long term, we intend taking decisive and

bold steps to make an integrated city region that is defined

by social cohesion and economic inclusion. Our eyes are

also firmly focused on creating a seamlessly integrated city

region that occupies centre stage as one of the leading

economies on the African continent. Our interventions in the

economic space will be principally aimed at achieving these

noble intentions. During the year under review. the Gauteng

Tourism Authority reprioritised and realigned its plans in order

to respond and play its part in the call for the transformation,

modernisation and reindustrialisation of the Gauteng

City Region.

In this vision, tourism, as one of the city region's priority

economic sectors. has a dedicated focus. Gauteng is the

gateway into South Africa and records an average of 44%

of all international visitor arrivals. The sector employs over

200 OOO people in Gauteng, contributing approximately

R30-billion per annum to the city region's economy. With these

figures and the continued resilience of the sector in the face of

global economic headwinds. it is not difficult to see why some

commentators have called tourism Gauteng's "new gold".

Our largest source market still remains Africa, followed by the

traditional source markets of the UK, US and Germany, with

strong growth in China and India. It is particularly pleasing that

the GTA is leading the charge in developing a focused Africa

Tourism Strategy in order to increase the number and value of

arrivals from the continent. This underscores the fact that our

work in the industry dovetails with our broader thinking on the

economy. The African continent is a key economic focus area

for Gauteng, and it is in this spirit that we intend to fortify trade

and economic links with sister regions on the continent.

Contrary to the idea that visitors travel through Gauteng rather

than into it. the province actually accounts for the largest share

of total bed-nights spent in South Africa. Our partnership and

contract with all the role-players in the meetings, incentives.

conferencing and events industry has enabled us to remain

a leading business destination of choice on the continent. In

2013, Gauteng ranked third on the continent behind Cape

Town and Nairobi. With a strong tertiary sector. cosmopolitan

population, large concentration of meetings and events

venues. presence of world-renowned academic research

institutions and a strong research industry, and being the seat

of government with world-class infrastructure, we are in pole

position to leverage over 250 OOO business travellers who visit

South Africa per year.

We continue to be the home exciting cultural. recreational and

entertainment events such as the Moretele Tribute Concert, the

Momentum 947 Cycle Challenge, the Discovery 702 Walk the

Talk and one of the biggest soccer derbies in Africa, the Soweto

Derby, the SANSUI Summer Cup and the Standard Bank Joy of

Jazz. All these events are helping us to sell our destination as

the home of champions, create a need to travel and

experience, and provide our SMMEs and other business

enterprises with much-needed business opportunities.

The newly adopted Bidding, Hosting and Events Strategy for

the Gauteng City Region carries an array of possibilities for the

industry, and how we collaborate and leverage resources to

make Gauteng a destination of choice for visitors and world

class events.

Along with this we have also developed an extensive township

tourism experience and enterprise development programme,

and are convinced that this will change the tourism landscape

to better reflect the demographics of our country, and

mainstream township tourism into a key component of the

city region's economy. In a bid to improve visitor experience,

we have designed systems to assist businesses, regions and

destinations to gather meaningful data to measure current

levels of visitor satisfaction and against various benchmarks.

The provision of excellent and exceptional visitor experiences

positively impacts on the bottom line of the business, and this

is the awareness that we seek to create across all layers of

the industry.

Our sincere appreciation goes to the GTA Board of Directors, the

management team and the entire staff for their continued hard

work and dedication. Through a range of interventions, we have

started laying the foundation for what a future Gauteng should

be. Tourism occupies a central place in this vision and it is

precisely for this reason that we have to be constantly engaged

in making new strides, raising the bar and taking bold actions to

transform the industry for the greater benefit of the people.

LEBOGANG MAILE

MEC for Economic Development, Environment, Agriculture

and Rural Development

KHEHLA MTHEMBU

1.4 FOREWORD FROM THE CHAIRPERSON OF THE BOARD

The past year has held a number of challenges, but despite

this. there have also been a number of victories with respect to

the Gauteng Tourism Authority as an organisation. It would be

remiss of me not to highlight the appointment of the new GTA

Board. The new Board will serve with effect from 1 November

2014 to 31 October 2017.1 consider it both an honour and

a privilege to have been reconfirmed as the chairperson for

another term.

My deputy chairperson is Dr Lulama Zitha. The other members

of the Board are Mr Republic Monakedi. Ms Khusela Sangoni.

Ms Moroesi Chiloane. Ms Nomusa Mufamadi. Ms Puleng

Ratlabala. Mr Mxolisi Zwane. Ms Muditambi Ravele and

Mr Happy Ntshingila.This team of dynamic and motivated

professionals is drawn from outstanding organisations and is

committed to supporting the promotion and growth of tourism

in Gauteng province.

The GTA broadly carries a dual mandate of being a destination

marketing organisation (DMO) and a destination management

organisation. This places a huge responsibility on our staff.

management and the Board. as it requires a systematic way

of ensuring that each of these key competencies receives

equal attention in terms of focus. resources and action plans.

We are pleased that. in the year under review. we have made

tremendous progress towards the realisation of the National

Tourism Sector Strategy's vision and goals. We have also in the

process of mainstreaming of the requirements of the Gauteng

Tourism Sector Strategy. This strategy was endorsed through the

Gauteng Tourism Summit. which was held in association with

the Tourism Business Council of South Africa (TBCSA).

The goals of the National Tourism Sector Strategy include:

Reaching 15-million foreign arrivals by 2020

Growing domestic tourist numbers from 14.6-million in 2009

to 18-million by 2020. and total domestic trips to grow from

30-million to 54-million. with holiday trips increasing from

4-million to 9-million

Increasing tourism's contribution to GDP. from an estimated

Rl 89.4-billion in 2009 to R499-billion by 2020

Growing contribution of domestic tourism GDP from 52% in

2009 to 60% by 2020

Creating jobs. and aiming to create 225 OOO jobs by 2020

- 1 77 OOO in the tourism sector. and 48 OOO through direct

government investment

The tourism sector's potential to bring about economic

growth and employment creation is supported by tourism's

positioning as one of the six core pillars of growth in the

country's New Growth Path framework, which also recognises

tourism's capacity to be a major contributor to South Africa's

global competitiveness.

Tourism is also one of the key sectors identified in our own

Gauteng Economic Growth and Development Strategy

(GEGDS). which is designed to ensure convergence between

the economic and social strategies of government and

promote a developmental state. This strategy combines a

series of economic, social and environmental factors to ensure

cohesion between sustainable economic development.

poverty alleviation and social protection. thus ensuring

synergy and promoting a developmental state through

co-operative governance.

As we continue on the journey towards prosperity and

heightened tourism awareness in our country, and Gauteng

province in particular. it is important to always remind ourselves

of the key national imperatives. Gauteng is required to play a

leading role in the realisation of the above. noting its strong

economic and financial capabilities.

Our operations are aligned with this vision, through the

formation of various Board sub-committees. namely, the

destination development committee, the audit and committee,

and the destination marketing committee. These are all Board

sub-committees that help in processing the work in between

the Board meetings, and liaise with the relevant management

structures to ensure better co-ordination. We are proud to

confirm that this institutional alignment has assisted us greatly

in the execution of our mandated responsibilities.

We congratulate our staff and management team for

once more supporting the Lilizela Tourism Awards. These

awards honour those who continue to shine and provide

quality services and visitor experience in our province. and

throughout the country. As the Board. we take the issues of

quality assurance very seriously, and we welcome industry and

government efforts to reward quality and excellent service in

the sector.

Tourism is a fiercely competitive business. We not only compete

with other businesses. cities, regions and provinces. but with

all the other demands for consumers' discretionary spend. The

tourism environment is changing, and in order to grow and

prosper. the tourism industry must not only be more flexible and

responsive to challenges, but also raise the bar in the delivery

of service and standards. This is imperative if Gauteng wants

to keep ahead of its competitors. Unlike many other consumer

purchases, tourism consumers buy a destination ·experience·

comprised of places to visit, places to stay and things to do.

If we are to defend our market share of visitors and increase

visitors' length of stay and spend. there must be a collective

effort to ensure that all tourism establishments maintain the

highest standards. This will guarantee guest satisfaction.

from the initial contact of booking until the point that tourists

arrive in our country. Nothing sells a country more than a big,

warm welcome. matched with service excellence and quality

experiences at every stage of a visit.

We are delighted that the organisational realignment process

between the GTA on the one hand and the Cradle of

Humankind World Heritage Site and Dinokeng Project on the

other. has finally been resolved through practical intervention

by MEC Lebogang Maile, and a concerted effort to create

new more effective and service-orientated structures that grow

tourism in a progressive and sustainable fashion.

On our overall organisational performance against our set

target. we are pleased that the agency has once again

recorded positive strides in the execution of its work. The main

highlights of the year under review were:

The successful hosting of Meetings Africa and its related

post-tour programmes

Successful support for provincial and national Lilizela

Tourism Awards, while retaining all the traditionally recurrent

regional tourism awards

Successful support for the 2014 Tourism lndaba. and use

of this platform to further our strategic partnerships and

strengthen our co-operation with key stakeholders

The execution and management of the growth of both the

Joy of Jou and the SANSUI Summer Cup mega events

The continued growth of our e-marketing initiatives, with

special focus on our increased social media presence

The promotion of Gauteng travel experiences on various

media channels through our focused Global Media

Relations Programme

The continued growth of our business tourism sector and

the support provided by our new Gauteng Convention &

Events Bureau

On the financial side, consistent with the guiding framework

of the Public Finance Management Act. No. l of 1999, the

G-TA- received an allocation of R92 957 607 from the provincial

Department of Economic Development. The Board provided

oversight over this budget and ensured that it catered for all

our needs in our drive to implement the GTSS. We allocated

resources for tourism development. strategic and tactical

marketing. and regional tourism development work across

our regions.

I wish to thank the outgoing members of the Board who stood

down in March for the value they added to the organisation

over many years. Your total commitment to. and expert inputs

into, the work and life of this organisation are unmatched. It is

a delight and a joy to be entrusted with the responsibility of

leading this collective group. I welcome the new Board and

look forward to working alongside them in taking the GTA to the

next level.

Special thanks go to the chief executive officer, Dawn

Robertson, the collective management and staff of the agency

for their invaluable support and dedication. We have recorded

all these strides through your dedication and hard work.

You remain our most valuable asset, and we are grateful for

your support.

To the new Board members: our 2014/ 15 financial year

performance, in terms of both organisational performance

targets and destination performance targets, reaffirms our bold

conviction that we have good tourism growth indeed and that

we have a successful development story to tell.

On behalf of the Gauteng Tourism Authority as an organisation

and the GTA Board, in particular, I thank you for your interest

and ongoing support.

KHEHLA MTHEMBU

Chairperson

THE BOARD

KHEHLA MTHEMBU

LULAMA ZITHA REPUBLIC MONAKEDI MOROESI CHILOANE

NOMUSA MUFAMADI HAPPY NTSHINGILA PULENG RATLABALA

MUDITAMBI RAVELE MXOLISI ZWANE KHUSELA SANGONI

SENIOR MANAGEMENT

KHUMBU SITHOLE

STRATEGY & PLANNING

NONNIE KUBEKA

DESTINATION MARKETING

DAWN ROBERTSON

CHIEF EXECUTIVE OFFICER

BARBA GAOGANEDIWE

DESTINATION COMMUNICATIONS

YASEEN ASMAL

CHIEF FINANCIAL OFFICER

MPHO MOETI

r'\CCTlf\1/\Tlf'"'\l\t l\,1Al\l/\�Cl\,1CI\IT

MBUYI KONA

RESPONSIBLE TOURISM

SARAH MOEKETSI

CORPORATE MANAGEMENT

DAWN ROBERTSON

1.5 CHIEF EXECUTIVE OFFICER'S OVERVIEW

The total expenditure during the year under review of

R88 621 638 is R4 335 969 less than budgeted and indicates

underspend of 4. 7%. The net surplus for the year, excluding

capital expenditure of R666 201, is R8 120 326. The GTA also

has conditional grant commitments of R8 005 393 that will be

dealt with in the 2015/16 financial year. The GTA will therefore.

in terms of Section 53(3) of the PFMA, request approval to

retain the surplus for the 2014/15 financial year. as this will

ensure that all commitments as at statement of inancial

position date are dealt with.

During the current year the MEC issued an instruction that

service providers should be paid within five days, and the GTA

ensured this was complied with 80% of the time.

The GTA had an effective supply chain management system

in place for the year under review. 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 GTA's policies and procedures.

These controls are implemented by trained. skilled personnel

with an appropriate segregation of duties and monitored by

management, and include a comprehensive budgeting and

reporting system operating within strict deadlines and an

appropriate control framework.

All prior year audit findings were resolved and closed before

the end of the second quarter of the 2014/15 financial year.

The MEC for Economic Development issued an instruction

that the GTA, the Cradle of Humankind World Heritage Site

trading entity (COHWHS) and the Dinokeng trading entity

must integrate at a functional and operating level to enable

the optimal achievement of the provincial tourism mandate

as of l April 2012. This instruction was in line with the broader

Gauteng Department of Economic Development agency

reconfiguration process that would have impacted on the

current status and form of the GTA. The merger process

was subsequently withdrawn, with the process finalised at

31 March 2015. The GTA, however, acts as the Gauteng

Department of Economic Development managing agent over

the Ga-Rankuwa Hotel School as of l April 2014.

The Human Resources department successfully managed

to support l O interns in terms of work experience and hours.

to assist their graduation in tourism management. It also

ensured all employees signed performance contracts. Due

to the merger processes of the GTA, COHWHS and Dinokeng,

the organisation lost employees with critical skills; staff morale

was very low and also operated with fewer human resources

due to the moratorium placed on vacancies. The unit also

performed without HR manager and officer skills, which

made it more difficult and reliant on outsourced services.

Two employees resigned and one employee's employment

contract was terminated due to misconduct.

Major campaigns led or supported by the entity included

the Spring to Summer Campaign. which incorporated the

Johannesburg Shopping Festival. the Standard Bank Joy of

Jazz Festival. the 2014 SANSUI Summer Cup and the

2014 HICA conference.

The proposed merger of the GTA with the Cradle of

Humankind World Heritage Site and Dinokeng Projects

has been discontinued. The executive made a decision to

restructure the tourism portfolio in the province. separating the

supply side from the demand side of tourism. with the former

now set to become the Gauteng Department of Economic

Development tourism branch. The GTA will now focus strictly on

the demand side, marketing and promoting Gauteng as

a preferred destination for visitors.

The transformation, modernisation and revitalisation of the

township tourism economy will form a new thrust for the entity

going forward.

I would like to take this opportunity to thank the Gauteng

Member of the Executive Council for Economic Development.

Mr Lebogang Maile, the ongoing chairman of the Board.

Mr Khehla Mthembu, and both the outgoing and the new

Boards that served during the year under review. I would also

like to thank all the staff who have worked under me during

this period, for their ongoing dedicated and efficient service.

DAWN ROBERTSON


Gauteng Tourism Authority

1.6 STATEMENT OF RESPONSIBILITY & CONFIRMATION OF ACCURACY

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed in the annual report is

consistent with the annual financial statements audited by the

Auditor-General.

The annual report is complete. accurate and is free of

any omissions.

The annual report has been prepared in accordance with the

guidelines on annual reporting, as issued by National Treasury.

The annual financial statements are prepared in accordance

with the applicable Statements of Generally Recognised

Accounting Practice as approved by the Accounting Standards

Board in accordance with Section 91 (l) of the Public Finance

Management Act. Act No. l of 1999, and incorporate disclosure

in line with the accounting philosophy of the GTA.

The accounting authority is responsible for the preparation of

the annual financial statements and for the judgments made in

this information.

The accounting authority is responsible for establishing and

implementing a system of internal controls. which has been

designed to provide reasonable assurance as to the integrity

and reliability of the performance information, the human

resources information and the annual financial statements.

The external auditors are engaged to express an independent

opinion on the annual financial statements.

In our opinion, the annual report fairly reflects the operations,

the performance information, the human resources information

and the financial affairs of the entity for the financial year

ended 31 March 2015.

Yours faithfully


MS DAWN ROBERTSON

Date: JULY 2015

Chairperson of the Board

MR KHEHLA MTHEMBU

Date: JULY 2015

1.7 STRATEGIC OVERVIEW

The 1990s saw a deliberate effort to formalise the South African

tourism industry. underscored in the main by the establishment

of the National Tourism Act, No. 72 of 1993. Nineteen ninety-four

also saw South Africa opening up to the world and reintegrated

back into 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 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.

tourism-oriented National White Paper on the Development and The 2007 amendment of the 2001 Act was premised on

Promotion of Tourism in South Africa (1996) which proclaimed, the recognition of the non-executive Board of Directors that

inter alia, that tourism should be government-led. private sector- hitherto was only temporary, having been established earlier

driven and community-based. to replace the Tourism Advisory Committee and act as an

To leverage on national tourism growth and development.

and to drive economic growth in the province. the Gauteng

Provincial Government (GPG) - through the then Department

of Finance and Economic Affairs (now the Department of

Economic Development) - established the Gauteng Tourism

Authority (GTA) in 1998 as a specialist agency responsible

for tourism promotion. The GTA 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 GTA to confer

powers and functions and impose duties upon the GTA to

establish a tourism development fund; to establish specific

mechanism 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 tourism 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. l O of 2001. which somewhat scaled down the

mandate of the GTA while maintaining the central role of the

agency as follows:

To provide for the promotion and sustainable development of

tourism in Gauteng; to establish the GTA to confer powers and

functions and impose duties upon the GTA to establish the

accounting authority.

The GTA broadly carries a dual mandate: on the one hand to

position Gauteng as a globally desired destination through its

marketing and promotion efforts and. on the other. to manage

Gauteng as a globally competitive destination through

ensuring that it is a value-for-money destination and ensuring

that it develops products that respond to tourist demands.

The progressively growing stature of tourism nationally and

provincially as an agent for economic growth and

development has resulted in the role of the GTA growing

exponentially in a bid to create sustainable jobs 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 National

Growth Path (NGP). both of which have job creation as

their main focus. Inherent in the GTA's mandate is the role

of positioning not only Destination Gauteng, but also Brand

Gauteng as a globally desirable and competitive destination

for investment and other purposes; a role that adds value

to the functions of its sister agencies such as the Gauteng

Growth and Development Agency (GGDA). the Gauteng

Film Commission (GFC). and the Cradle of Humankind World

Heritage Site (COHWHS) and Dinokeng Projects.

The GTA also works in close collaboration with regional and

local government structures to advance the positioning of

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 South African 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 destination for domestic and international

tourists and a primary tourism revenue generator, while co

operating with other provinces. particularly the ones with which

it has common borders. This is consistent with the GEGDS

that recognises Gauteng's role, as the country's economic

powerhouse. to assist with economic viability of other provinces

and to reduce the degree of in-migration to Gauteng.

Vision:

To position Gauteng as a globally competitive destination

of choice

Mission:

To develop. promote, co-ordinate 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, benefits our

people, and contributes to job creation and

economic growth

Values:

Commitment to the principles of Batho Pele

Integrity and passion

Professionalism and excellence

Strong focus on sustainable and responsible tourism

Commitment to progressive corporate governance

Strategic goals:

Create and promote a world-class tourism destination

Contribute towards tourism sector industry development

Facilitate industry co-ordination and co-operative governance

Foster a responsible and sustainable tourism industry

Implement progressive corporate governance practices

1.8 LEGISLATIVE AND OTHER MANDATES

The GTA is established as a Schedule 3(c) Provincial Public

Entity in terms of the Public Finance Management Act (PFMA).

No. l of 1999.

The Gauteng Tourism Act. No. 18 of 1998, was the GTA's

enabling legislative framework until 5 February 2002. The

Gauteng Tourism Act. No. 18 of 1998, was then repealed by

the Gauteng Tourism Act, No. l O of 2001. The GTA is therefore

currently established in terms of the Gauteng Tourism Act.

No. l O of 2001. The promulgation of the aforementioned Act

was effectively a revision of the previous enabling legislation.

Such revision allowed for applicable GTA policies. procedures

and the delegation of powers to be amended, for purposes

of operational efficiency and in compliance with national

legislative frameworks.

The Gauteng Tourism Amendment Act. No. 3 of 2006. came

into effect on 7 June 2006. The Amendment Act provided

among other amendments that a Board of Directors would

be established as the accounting authority. The first Board of

Directors was duly appointed on l February 2007.

The following are the Constitutional and other legislative.

functional and policy mandates that govern the establishment

and operations of the GTA.

LIST OF ACTS

Promotion of Access to Information Act. No. 2 of 2000 --- -

Basic Conditions of Employment Act. No. 75 of 1997. and regulations

Employment Equity Act. No. 55 of 1998 -

Gauteng Tourism Act, No. 10 of 2001 - - -

Gauteng Tourism Amendment Act. No. 3 of 2006

Labour Regulations Act. No. 66 of 1995

National Records and Archives Services Act. No. 43 of 1996 --

Tourism Act, No. 3 of 2014

Occupational Health and Safety Act. No. 85 of 1993

Promotion of Administrative Justice Act. No. 3 of 2000 � ---

Public Finance Management Act. No.1 of 1999, and regulations

Skills Development Act. No. 97 of 1998

Skills Development Levies Act. No. 9 of 1999

South African Qualifications Authority Act. No. 58 of 1995 -- -

Income Tax Act, No. 58 of 1962 �

Unemployment Insurance Act. No. 30 of 1966

Value Added Tax Act. No. 89 of 1991

1.9 ORGANISATIONAL STRUCTURE

The staff complement of the GTA has been appointed according to its approved organogram

STllATEGV

& PLANNING

MR KHUMBU SITHOLE

CORPORATE

MANAGEMENT

MS SARAH MOEKETSI

CHIEF FINANCIAL

OFFICER

MR YASEEN ASMAL

DESTINATION

MANAGEMENT

MR MPHO MOETI

RESPONSIBLE

TOURISM

MR MBUYI KONA

DESTINATION

MARKETING

MS NONNIE KUBEKA

DESTINATION

COMMUNICATIONS

MR BARBA

GAOGANEDIWE

PERFORMANCE INFORMATION

2.1 SITUATIONAL ANALYSIS

2.1.1 SERVICE DELIVERY ENVIRONMENT

Evidence shows that the global tourism sector is buoyant and

increasingly resistant to macro-environmental factors. Despite

slowing growth levels, tourism in South Africa continues to

flourish, entrenching itself as the industry of the future. Gauteng

continues to maintain an unassailable leadership position

among provincial destinations, claiming slightly below 40%

market share of all international visitors. This is almost matched

by the market share of annual average of 37% in national

tourism receipts. thus contributing as much as 5% to the

provincial economy. Domestically, Gauteng occupies between

the second and third spot in terms of the number of domestic

trips. This bears unequivocal testimony to the extent of demand

for Gauteng tourism offerings by both foreign and domestic

tourists and visitors.

The single biggest threat to the growth of tourism is the social

reality of crime levels in the province, which is otherwise a

highly globally desirable and competitive destination. National

government is currently working on plans to reduce crime and

increase visible policing in Gauteng; the plans for policing

have also been given heightened attention. The problem,

however, is far from over and it will take a collective effort from

communities, industry and even tourists themselves to reduce

incident levels in the province. Two other emerging challenges

plaguing the sector are the so-called xenophobic attacks

on African immigrants, as well as the new visa regime. The

former further complicates efforts to make Gauteng palatable

to African visitors, whose critical importance to the Gauteng

tourism economy - about 90% of international visitor volume

and 60% of yield - can never be overemphasised.The full extent

of the impact of these challenges is yet to be quantified, but

there is no doubt the effects have worked themselves into the

performance of both South Africa and Gauteng during the

period under review.

The approach adopted in ensuring successful implementation

of the 2010 National Tourism Sector Strategy (NTSS) has

arguably been the most effective yet. Platforms created

through the NTSS Delivery Forum, supported by vibrant

quarterly National Tourism Leadership Dialogues and National

Tourism Stakeholder Forum (NTSF) sessions, have yielded

unprecedented levels of co-operation between the public and

the private sectors. These developments have undoubtedly also

augured extremely well for the implementation of the province's

tourism anchor strategy, the Gauteng Tourism Sector Strategy

(GTSS), which is modelled on, and fully aligned to, the NTSS.

The delivery on the tourism mandate remains a concurrent

responsibility across the three spheres of government.

Consequently, in terms of institutional arrangements, the

Constitution enjoins all three spheres to work in tandem.

Working in close co-operation with local government is

imperative, particularly considering the last part of the

1996 Tourism White Paper, which proclaims: ·Tourism in

South Africa will be government-Jed, private sector-driven

and community-based.'Therefore, partnership with local

government structures is crucial not only from the perspective

of investment in the sector, but also in terms of recognising that

service delivery matters are as important to tourists and visitors,

as they are to citizens of that particular locality. Considering all

this, service delivery protests certainly do not advance tourism

interest. particularly in township areas where there is a great

deal of effort to mainstream the tourism experiences espoused

by the Township Economy Revitalisation (TER) Programme.

The new administration - through the leadership of MEC

Lebogang Maile - has revitalised inter-governmental relations

(IGR), in terms of both technical and political structures. The

National Department ofTourism has been diligent in ensuring

that the biannual tourism conferences focusing on local

government enhance this co-operation, as envisioned in the

institutional framework. The entity strives to optimise the use of

existing platforms, such as Section 80 committees, in seeking

to influence and help shape the local government tourism

agenda. We are confident that the National Tourism Act, No.

3 of 2014, will also add impetus to harmonising the legislative

framework that has a direct and indirect impact on the sector

across the three spheres of government. particularly in view of

the following two of its total of five objectives:

l. To promote economic growth and development of

the sector.

2. To establish concrete inter-governmental relations to

develop and manage tourism.

The GTA has maintained its efforts to build and strengthen

the relationship with the private sector. To that end, the

agency has inter a/la established strong ties with the Tourism

Business Council of South Africa (TBCSA), the umbrella body

representing tourism business. The two entities have in the

recent past co-hosted the South African Travel and Tourism

Summit, and intend to maintain the co-operation. Being

home to the country's key sector players and serving as a

primary entry point for international visitors places an added

responsibility on the province to be a trailblazer in the effective

management and co-ordination of the sector. for the benefit of

the sector itself and the people of Gauteng.

2.1 .2 ORGANISATIONAL ENVIRONMENT

During the period under review. the GTA was undergoing a the merger decision was reversed and the tourism portfolio

merger with the Cradle of Humankind World Heritage Site was divided between demand and supply functions. with the

and Dinokeng Projects - a situation that resulted in a very supply side function moving into the Department of Economic

unstable organisational environment. A business case for the Development and the GTA having to realign to focus on

establishment of a single tourism entity in the province was destination marketing and promotion. The prolonged merger

developed and approved by Treasury for implementation in process. change of decision and uncertainty resulted in low

the 2014/15 financial year. This implementation process saw staff morale and the resignation of staff members from critical

a major overhaul of tourism strategies and plans in order to positions. which could not be filled as a result of a moratorium

respond to the revised mandate of the new tourism entity. on the filling of vacancies.

which was to take on a greater mandate and scope. During the

process many staff had to be moved into temporary positions

in order to deliver on the revised mandate. In January 2015,

2.1.3 KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES

One of the most important legislative developments. which

took place during the reporting period, was the promulgation

of the new Tourism Act. No. 3 of 2014. on 16 June 2014. The new

Tourism Act repealed both the Tourism Act of 1993 and the

Tourism Second Amendment Act of 2000. It should be noted

that the Regulations for Tourist Guides. which were promulgated

in 1994 and 2001 respectively, will only be repealed once new

regulations are passed. a process that is currently under way.

The new Tourism Act. No. 3 of 2014, is important for the

following reasons:

It replaces the spontaneous creation and application of

non-legislative rules. thereby establishing order in the sector

It is a prerequisite for society to develop and set rules that

are enforceable and applicable to all. thereby creating an

enabling environment for future development and growth

The main aims of the new Tourism Act. No. 3 of 2014, is therefore

to provide for the development and promotion of sustainable

tourism for the social. economic and environmental benefit of

all South African citizens.

Its key objectives are to promote the practice of responsible

tourism: provide for the effective marketing of South Africa

domestically and internationally; promote quality tourism

products and services; encourage growth and development in

the sector; and advance effective inter-governmental relations

in developing and managing tourism.

To this end. the Act now includes the National Tourism

Sector Strategy as part of the legislative framework for the

management and development of tourism. The Act furthermore

provides for knowledge and information management, and

monitoring and evaluation. and makes provision for the calling

for information from tourism businesses. The intention of these

provisions is aimed at fostering better understanding of the

sector and at improving decision-making. It should be noted

that the provision of information is voluntary. and allows for

incentives for businesses that participate.

Provision is also made for the issuing of norms and standards

to standardise the management and development of tourism.

and for the determination of codes of good practice as

guidelines for the management of tourism. The Act also aims to

regulate the tourist guide profession.

The GTA therefore intends to revise the Gauteng Tourism Act. No.

l O of 2001, during the next reporting period. in order to ensure

better alignment to the provisions of the new Tourism Act. No. 3

of 2014.

2.2 STRATEGIC OUTCOME-ORIENTED GOALS

The rationale for the elevation of tourism as the sixth economic

pillar in the 2011 New Growth Path (NGP) framework was the

recognition of the proven ability of the sector to contribute

meaningfully in the alleviation of poverty. inequality and

unemployment currently plaguing our country. The sector's

direct and indirect economic contribution of up to 9%

surpasses that of older sectors such as mining. Tourism is

renowned for its contribution to a positive balance of trade

through earning significant amounts of foreign exchange.

The sector boasts other elements that contribute positively to

socio-economic imperatives, such as low barriers to entry for

employment and entrepreneurial opportunities. It is one of the

few sectors that can create jobs in areas where people live, as

espoused by the National Development Plan.

The appointment of the fifth provincial administration following

the May 2014 general elections necessitated the revision of

the strategic goals of the Gauteng Provincial Government,

in line with the new vision that seeks to transform, modernise

and reindustrialise the Gauteng economy. The Transformation.

Modernisation and Reindustrialisation (TMR) Programme,

whose primary preoccupation is to foster the radical economic

transformation of the economy, is based on the following 10

pillars (of which the Department of Economic Development is

responsible for the five highlighted in bold):

1. Radical economic transformation.

2. Decisive spatial transformation.

3. Accelerated social transformation.

4. Transformation of the state and governance.

5. Modernisation of the public service.

6. Modernisation of the economy.

7. Modernisation of human settlements

and urban development.

8. Modernisation of public transport infrastructure.

9. Reindustrialisation of Gauteng province.

1 O. Taking the lead in Africa's new industrial revolution.

The key principles of the TMR programme are to:

Revitalise Gauteng's township economies

Build new smart. green. knowledge-based economy

and industries

Ensure decent employment and inclusion in key

economic sectors

Facilitate radical economic transformation. modernisation

and reindustrialisation

Include the marginalised sectors of women. youth and

persons with disabilities in mainstream economic activities

Establish appropriate partnerships for delivery

Provide an enabling policy and legislative environment for

equitable economic growth and development

Informed by the national and provincial political and socio

economic imperatives - contained in key documents such

as the National Development Plan (NDP) and the Medium

Term Strategic Framework (MTSF), the Gauteng Vision 2055

(G2055), the June 2014 State of the Nation Address (SONA)

and Gauteng's July 2014 State of the Province Address (SOPA)

the Department of Economic Development revised its strategic

goals as follows:

1. Gauteng's economy radically transformed.

2. Gauteng's economy reindustrialised.

3. The OED capacitated to deliver and implement efficiently

and effectively.

The GTA also duly embarked on the review process to ensure its

own alignment and repackaged its strategic goals as follows:

1. Gauteng is a world-class destination, renowned for its

sustainable tourism experiences.

2. Gauteng is recognised as a global tourism competitor for

leisure and business travel.

3. Tourism is a major contributor to job creation and

economic development in Gauteng.

4. Sound corporate governance. and enhanced strategic

and operational support within the organisation.

At the core of these strategic goals is the tourism mandate to manage tourism for the triple-bottom benefit as per the

diagrammatic representation below:

Sustainable tourism

Environment

Balancing the use of

environmental resources

and the economic benefits

of tourism

Economic

Balancing the use of


and changes to the social/

community values of those


Social

Balancing economic growth and

development, and the impacts of

development on community/social values

The job creation intervention is a hallmark of the sector's

contribution to overturning the triple challenge of

unemployment. inequality and poverty for reasons outlined

earlier. In spite of the sector's ability to create large-scale jobs,

there is an understanding that as a government entity, the

GTA's job creation intervention is limited mainly to the facilitation

of an enabling environment for the sector to thrive and in the

process create jobs. This, therefore. underscores the strategic

importance of sector relations, particularly with the private

sector that maintains some 30% (about 160 OOO) of the total

tourism direct jobs in the country.

In line with the strategic goals stated above, the GTA has made

a giant leap towards implementing one of its game-changers,

namely the Township Tourism Enterprise Programme, and has

established both a board committee as well as a task team

under the auspices of the Township Economic Revitalisation

(TER) Programme. Highlights of the programme's achievements

include the non-financial support of l 03 township-based

SMMEs (71 of which are women-owned and/or managed)

and 12 co-operatives, the packaging and promotion of 25

township-based experiences and, finally, the undertaking of a

comprehensive study to better understand township tourism

growth and development dynamics.

In response to pillar 10, on taking the lead in Africa·s industrial

revolution, the GTA has drafted an Africa Focus Tourism

Strategy as part of the sector's contribution to the Trade and

Investment Strategy. This was the product of engagement with

sector partners.

For other performance outcomes against all the other targets

of the GTA. please refer to the performance report section.

2.3 PERFORMANCE INFORMATION BY PROGRAMME 2014/2015

2.3. l OFFICE OF THE CEO

Purpose:

To provide strategic leadership in the development and

promotion of tourism for the province, create an enabling

environment for tourism stakeholders, and champion

the Gauteng Tourism Sector Strategy development and

implementation, with overall responsibility for strategic planning

and organisational accountability.

Key performance areas:

Corporate governance, including administration, enterprise

risk management. and compliance with applicable laws

and regulations

Strategy and leadership

Corporate and brand positioning

Strategic partnership and alignment

To utilise national and provincial tourism co-ordinating

structures to drive the provincial tourism agenda, within

the context of the national and provincial mandates,

thus ensuring a synergistic approach in pursuit of

tourism activities

Business unit outputs:

To provide strategic leadership and build effective

partnerships with the business community and key

stakeholders

To ensure principles of effective and good corporate

governance are implemented

To ensure best practice in the administration of the

organisation

To provide strategic direction and leadership to industry

based on global industry standards, national and provincial

legislation, and tourism sector intelligence

To ensure the creation and maintenance of a positive

image for the GTA and the provincial tourism brand

To ensure the co-ordinated development and promotion

of tourism among government stakeholders and private

sector partners

To provide strategic direction to the organisation through

ensuring that an appropriate governance structure is

in place

To undertake risk assessments for the effective management

of business risks

To engage with international and domestic strategic parties

to lobby for joint destination promotion

To build understanding and positive perceptions about the

GTA and its tourism brand among stakeholders. including

prospective investors

Key milestones and activities in the period under review:

A number of strategic partnerships were facilitated during

the year under review. These included a partnership with the

Tourism Business Council of South Africa (TBCSA) in the hosting

of the 2014 HICA Conference. Memoranda of Agreement

were also entered into with the Southern African Tourism

Services Association (SATSA) in support of township tourism

initiatives, and the Tourism Enterprise Project (TEP) with regard

to SMME support. Tsogo Sun continued to support the Gauteng

Lilizela Awards ceremony, which was hosted at La Toscano at

Montecasino. A number of initiatives were implemented with

South African Tourism. particularly with regard to trade and

media familiarisation trips for international media. The GTA

partnered with the National Department ofTourism to host a

very successful National Guides Day at Maropeng.

In February, the GTA hosted two world tourism leaders, Mr Taleb

Rifai, the secretary-general of the United Nations World Tourism

Organisation (UNWTO), and Mr David Scowsill. president and

CEO of the World Travel & Tourism Council (WTIC). for a lunch

and day trip at Maropeng and for a dinner at the Origins

Centre. The UNWTO is the specialised United Nations agency

responsible for the promotion of responsible, sustainable and

universally accessible tourism. As the leading international

organisation in the field of tourism. UNWTO promotes tourism

as a driver of economic growth, inclusive development and

environmental sustainability. The GTA is an affiliate member

of the UNWTO. The WTIC is the global business forum for the

travel and tourism industry. It includes the CEOs, chairmen and

presidents of the world's leading tourism companies among

its members. and represents the full travel and tourism value

chain. The wnc supports governments to implement policies

that grow tourism and manage the sector responsibly. Over the

period under review the GTA also hosted tourism delegations

from China, Zimbabwe and Mozambique.

2.3.2 FINANCE

Purpose:

This unit is accountable for the administrative, financial and risk

management operations of the GTA including the development

of a financial and operational strategy, metrics tied to that strategy,

and the ongoing development and monitoring of control systems

designed to preserve agency assets.


1 . To drive the TMR Pillars of Transformation of the state and

governance, and modernisation of the public service.

2. To ensure the Finance unit is elevated to a strategic business

partner.

3. To provide strategic leadership, support and transversal

business solutions to enable the GTA to effectively deliver on its

mandate.

4. To provide strategic inputs on planning, budgeting and value

for money for all organisational activities.

5. To ensure the development of responsive, user-friendly

organisational finance strategies and systems.


The GTA spent R88 621 638 (i.e. 95%) against the budget of

R92 957 607 by the end of the financial year.

The variance recorded between the budget and expenditure is

4. 7%. The year-to-date achievement was realised due to proper

spending in accordance with planned priorities and prescribed

needs, monthly spending analysis, and continuous interaction

with units on their spending trends and the mitigation of identified

discrepancies that could result in over- and/or underspending of

the allocated budget.

The GTA implemented an internal daily payment monitoring

Annual performance indicators for finance:

tracking system and a centralised invoice submission system, to

ensure that service providers were paid on time.

The Auditor-General's findings raised in the previous financial year

are 100% (5 of 5) resolved.The achievement was due to monthly

progress tracking by the Finance team.

The total expenditure for the Finance unit was R5 455 239 of a total

budget of R5 577 900, which was 2% under budget. All targets set

for the year were met.

Internal financial controls, policies and procedures are revised on

an ongoing basis, as and when a need has been identified. This

is fully compliant with all applicable legislation, and implemented

after the necessary approvals are obtained.

Financial reporting is performed on a monthly and quarterly

basis, and financial statements are disbursed to management

and the OED. On a quarterly basis they are submitted to the

Gauteng Provincial Treasury. The monthly and quarterly financial

management statements consist of the statement of financial

performance, statement of financial position and statement of

cash flows (also quarterly), statement of net assets, notes to these

statements and age analysis, as well as the budget deviation

report and bank reconciliations.

Payroll administration for the GTA is a competency and

responsibility of the Finance Business unit. Payroll and salary

structuring is treated as highly confidential, with the payroll

accountant responsible for processing of information while being

monitored and checked by the finance and payroll manager and

chief financial officer. The total actual expenditure on salaries for

the GTA amounted to R35 895 924 of a total budgeted amount of

R36 189 452, indicating an underspend of 1 %.

Enhance

financial

Number of clean

audits in terms of

Clean audit report Clean audit

report

Clean audit report

accountability the Auditor-

and compliance General's report

with prescribed per annum

financial

regulations and

guidelines

2.3.3 CORPORATE MANAGEMENT

Purpose:

The Corporate Management division provides effective

leadership. strategic management and support in accordance

with the legislation. regulations and policies.


1. To drive the TMR Pillars of Transformation of the state and

governance. and modernisation of the public service.

2. To ensure Corporate Management is elevated to a strategic

business partner.

3. To provide strategic leadership, support and transversal

business solutions to enable the GTA to effectively deliver on

its mandate.

4. To capacitate the GTA to deliver and implement efficiently

and effectively.

5. To develop specific strategies to fulfil a strategic partner

role through:

Service offering(s)

Value chain

Policies. business process manuals (BPMs). standard

operating procedures (SOPs)

Improved internal control environment through compliance


Information Communications Technology

During the period under review. ICT consistently achieved

the stipulated performance targets. The result of 98.4%

total uptime was achieved through effective monitoring

and proactively maintaining the virtual environment. A

three-tiered redundant system (duplication of data in more

than one place for back-up) and sound management

ensured consistent availability. Hardware was replaced in

adherence with the approved asset lifecycle. Performing

a quarterly ICT customer satisfaction survey revealed

a satisfied and enabled customer base. with no policy

breaches encountered throughout the year. The compulsory

Agencies Shared Services environment of the building

posed numerous challenges brought on by undefined

responsibilities. The physical security of the building still

remains problematic in terms of effectively safeguarding the

data centre. Supporting services such as air conditioning

and back-up power need proper maintenance; only

emergency repairs in severe cases were performed. A

manual switch-on process controls the diesel generator

for the 21-ftoor building when municipal power fails. which

elevates the risk factor considerably. The data centre

management is not at an acceptable level. which will lead

to the GTA seeking alternative avenues to converge more

ICT services in the cloud to reduce the risk profile for its

backbone systems.

Administration

This sub-unit took responsibility for the following functions

during the year under review:

Records management and archiving

Verification of assets

Fleet management

Health and safety

Space management

Switchboard and reception management

Office keeping and cleaning services facilitation

Mail management

In the year under review, the Administration sub-unit ensured

that the floors occupied by the GTA. Cradle of Humankind

World Heritage Site and Dinokeng Projects met health and

safety requirements. and that the facilities complied with the

Occupational Health and Safety Act, No. 85 of 1993. This was

achieved through the establishment of the health and safety

committee to ensure safekeeping of all employees. During

this period the committee managed to conduct a successful

evacuation drill to test how quickly and safely employees could

evacuate the building in case of any emergencies.

Asset verification was successfully conducted biannually and

reports were submitted to Finance. The sub-unit also managed

to direct. co-ordinate and plan essential central services. such

as reception, security, maintenance. mail. archiving. cleaning

and catering for meetings in the organisation.

Administration policies were reviewed and submitted to the

Board for approval. These policies were implemented and

monitored successfully. The GTA's records management system

was updated on a quarterly basis, rearranged and indexed.

to meet the administrative. legal and financial requirements in

terms of the Archives and Records Service Act. No. 43 of 1996

as amended.

Human resource management

The following corporate policies were reviewed and

approved by the Board during the period under review:

Human resources strategy

Change management framework

Acting allowance policy

Cellphone policy

Subsistence and travel policy

Recruitment and talent management policy

A more detailed overview of human resource management

during the period under review is provided in Part 4.

2.3.4 RESEARCH AND STRATEGY

Purpose:

The purpose of this business unit is to co-ordinate strategic

planning, provide strategic sector information, statistics,

monitoring and evaluation to enable accurate and informed

decision-making, and timely response to sector realities on

behalf of the organisation. While not a lead delivery unit of

the GTA's core mandate in and of itself. the data. information

and strategic guidance of the unit enables delivery towards

each of the Gauteng Tourism Strategic Goals, and the budget

allocation ensures and monitors for remedy, external delivery

and impact by the GTA. This business unit is composed of

five sub-units, namely Planning & Reporting, Monitoring &

Evaluation, Research, Equity Assurance/Transformation and

Legal & Compliance.


To use sector intelligence to ensure that the needs of visitors

drive new, innovative and sustainable tourism practices,

and to monitor visitor satisfaction and perceptions of quality

experiences

To apply efficient management of databases for effective

management of the tourism landscape

To ensure oversight and good governance for

performance information

To facilitate the advancement of the national and provincial

tourism sector transformation agenda

To ensure compliance with legislative mandates, resulting in

good governance


2.3.4. l Planning & Reporting and Monitoring & Evaluation

The Planning & Reporting sub-unit is responsible for

co-ordinating strategic and operational planning support.

and ensuring compliance reporting to the shareholder, the

OED. Monitoring & Evaluation works in close collaboration with

the former, and has a primary responsibility to quality assure

performance reports and undertake impact evaluation of the

projects of the organisation.

The primary role of this sub-unit is to work in tandem with the

DED's planning unit to ensure sound understanding of the new

vision and then interpret it for the three entities (the GTA. Cradle

of Humankind World Heritage Site (COHWHS) and Dinokeng

Project). to which the unit provides planning and reporting

services. This interpretation sought to convert the vision into

actionable plans that would advance the TMR programme

that was introduced during the course of the fiscal year under

review. To that end, the unit led the processes to reprioritise and

realign the original plans before the adoption of the TMR

programme, as well as to identify new game-changers.

Alongside the planning interventions, the unit also strived to

engender a culture of quality compliance reporting in order to

account for the application of budgets allocated to the three

entities to advance the provincial tourism agenda. Jn line with

enhancing accountability, the Monitoring & Evaluation sub-unit

also developed the Evaluation Plan that will be used to assess

the impact of the interventions of the agency. All targets on the

submission of compliance reporting monthly, quarterly and

annual performance reports to the shareholder were achieved.

With regard to other strategic planning interventions, the

unit championed the hosting of the Africa Focus Strategy

workshop with strategic sector partners. The outcomes of the

workshop have informed the draft strategy that is currently in

development. This strategy seeks to drive pillar l O of the TMR

that focuses on taking a lead in Africa's industrial revolution.

2.3.4.2 Research & Strategy

Research provides evidence-based planning to ensure prudent

and optimal deployment of resources across the organisation;

and serves as the key supporter of the Integrated Marketing

Communications (IMC) business unit. The dissemination of

sector intelligence is designed to position the organisation as

the opinion leader on tourism matters in the province.

The Township Enterprise Revitalisation (TER) Programme is one

of the hallmarks of the radical economic transformation pillar.

The Research & Strategy business unit worked with the Office of

the MEC to collect important information of township tourism

enterprises in the townships earmarked for MEC visits, ahead

of the actual visits. Subsequent to the visits, the unit embarked

on a full-scale research study to ascertain the baseline of the

tourism infrastructure in the priority townships, collection of

the history and identification of experiences with the view to

inform the strategic interventions required to unlock tourism

development and mainstream township tourism.

The unit continued to undertake tourism and economic

impact assessments of events taking place in the province. The

following events were covered during the period under review:

Go West! Music Festival

Joburg Festival

Gauteng SANSUI Summer Cup

Tri-Rock Triathlon

The supply-side performance assessment of the sector

across the five regions of the province spanned areas such

as accommodation, tour operator services and attractions.

Included in the trend tracking study was the tourism labour

market, given the strategic importance of sector job creation

matters within the context of the TMR.

With regard to research information sharing, the findings of the

Gauteng Tourism Demand and Supply Study were presented

to the West Rand Section 80 Committee, West Rand Municipal

Tourism, Cradle of Humankind General Managers' Forum,

the City of Johannesburg Economic Development Portfolio

Committee's strategic planning session, and the Johannesburg

Tourism Company.

2.3.4.3 Equity Assurance/Transformation

The Equity Assurance sub-unit serves as a GEYODI (gender,

youth and persons with disabilities) focal point to co-ordinate

the GTA's advancement of the transformation agenda. The

sub-unit focuses on equity assurance. ensures compliance

reporting on sector transformation and GEYODI beneficiation

matters. Through this sub-unit. the agency participated in the

initiatives on youth development programmes such as the

Gauteng Inter-Governmental Youth Forum, the development

of the National Youth Policy, the crafting of the Gauteng Youth

Strategy and the Gauteng Youth Safety Summit. With regard to

GEYODI interventions, the GTA serves on task teams for disability

co-ordinated by the Office of the Premier. such as the Universal

Disability event, and participated in the drafting of the Disability

Rights Strategy.

2.3.4.4 Legal & Compliance

The Legal & Compliance sub-unit provides legal services,

ensuring the GTA is kept abreast of all legislative framework

matters that have direct and/or indirect implications for. and

impact on, it.

Additionally, the sub-unit provided legal support services to

GTA COHWHS and Dinokeng Project that were initially

earmarked for merger.These services included contractual and

administrative/regulatory law, legislative interpretation. general

legal interpretation, and perusal of and input into project

approval reports. The legal support services provided also

extended to Maropeng a' Afrika Leisure (MAL), the GTA Board

and the Bid Acquisitions Committee.

All litigation and pre-litigation matters were satisfactorily

managed within the parameters of the applicable judicial

mechanisms. Due to the judicious exercising of legal risk

management. and timely and appropriate legal advice

rendered, only one litigation matter was instituted against

the GTA during the period under review. A contract register

was implemented by this sub-unit in order to manage the

contractual issues of the GTA. The process of vetting and

drafting of contracts was also successfully managed

and maintained.

Annual performance indicators for Research & Strategy:

Number of New indicator 4 4 None

intelligence is Gauteng Tourism

used to ensure Regional

that the needs Performance

of visitors drive SuNeys by

new. innovative March 2015

and sustainable

tourism

practices

Number of New indicator 3 3 None None

Gauteng Tourism

Economic Trend

Reports by March

2015

Efficient Number of None None

management integrated

of databases databases for

for effective products and

management services in the

of tourism province by

landscape March 2015

The sector is Number 2 4 4 None None

committed of studies

to monitoring monitoring

visitor visitor quality

satisfaction satisfaction and

and perception perceptions

of quality of Gauteng

experiences experiences by

March 2015

2.3.5 RESPONSIBLE & REGIONAL TOURISM

2.3.5. l Responsible Tourism

Purpose:

The purpose of the business unit is to facilitate responsible

tourism planning initiatives among municipalities. communities

and private sector role-players.


Promote the triple-bottom line outcomes of

sustainable development

Promote sustainable and responsible tourism practices by

focusing on the responsibility of role-players in the tourism

sector. and destination in general. to take action to achieve

sustainable tourism development


Responsible tourism is an approach to the management

of tourism, aimed at maximising economic. social and

environmental benefits. and minimising costs. to destinations.

Responsible tourism is tourism "that creates better places for

people to live in. and better places to visit".

The GeePee Responsible Tourism Challenge

Ten township-based tourism products were selected

to participate in this tourism resource efficiency pilot

programme on the usage/management of energy,

water and waste in 2014, and the pilot programme was

implemented in partnership with Better Tourism Africa.

These l O tourism businesses went on a journey to apply

responsible business practices over a six-month period.

The host businesses were evaluated, assisted with the

development of a sustainability plan and trained to

implement the changes needed.Along the way, new

behaviours and technologies supporting responsible

tourism were introduced. and were at all stages measured

by the results of the changes effected. The host businesses

were taken through a step-by-step process to better

understand their current resource usage, were assisted

with the drafting of sustainability plans. and how to apply

the necessary business practices, tools and technologies

to make their businesses more sustainable. Throughout

the process, they were actively involved in capturing

and analysing data on their resource usage. It is hoped

that through the introduction of the right actions and

technologies. tourism business owners will begin to realise

the value of responsible tourism and begin to do more to

ensure that their businesses operate sustainably and thrive.

Responsible tourism service excellence

The Gauteng Responsible Tourism Guidelines have been

developed in line with the national minimum standards

aiming at improving, integrated service excellence and

providing user-friendly guidelines and tips for the tourism

industry to achieve best-practice levels as indicated in

the South African National Standards. SANS 1162:2011.

These guidelines will help industry players with the following:

Integrated approaches to planning and

management of business practices. systems

and resources

Adherence and promotion of responsible and

sustainable tourism pillars

Inclusive community beneficiation

Introducing business systems meant to reduce

leakages and maximise profits

Responsible tourism partnerships

The GTA. in partnership with the National Department of

Tourism (NDT) and the Gauteng Department of Agriculture

and Rural Development, has implemented a programme

on universal access in provincial parks. The main purpose

of the programme is to determine universal accessibility

readiness by provincial parks in order to inform interventions.

There are very low levels of awareness on universal

accessibility within provincial parks.

The GTA has also partnered with the NDT and the National

Cleaner Production Centre South Africa in implementing the

Tourism Resource Efficiency Programme within l O Gauteng

hotels. This project was implemented as part of the broader

national tourism assessments of the NDT, in support of the

following objectives:

Promoting access to sustainable sources of clean.

reliable energy

Encouraging tourism growth through sustainable

energy and green economy

Identifying possible green economy opportunities

2.3.5.2 Regional Tourism

Purpose:

Regional Tourism supports and facilitates regional tourism

development and marketing within the context of the Gauteng

Global City Region.

Strategic objectives:

Build strong relations with municipalities. supporting and

enhancing their capacity to promote and develop tourism

in the regions

Promote. co-ordinate and integrate tourism planning

through municipal integrated development plans (IDPs)

and industry partnerships for mutual benefit. community

beneficiation and tourism growth in the province


The year under review saw Regional Tourism hosting the

provincial Lilizela Awards. held at Montecasino. with the aim

of promoting service excellence in Gauteng.The unit also

partnered with Sedibeng and West Rand District Municipalities to

host their regional awards.

Regional Tourism has put the tourism agenda into all inter

governmental relations (IGR) meetings to promote alignment

with municipalities. The unit also co-ordinated township

focus groups. established in line with the Township Economy

Revitalisation Programme.

The unit managed the affiliation of the GTA to the N3 Gateway

and Nl 2 Treasure Route to promote cross-border marketing.

Joint workshops were held with the NDT and the Industrial

Development Corporation for the empowerment of tourism

product owners. for growth and development opportunities.

Financial support was provided to the Ekurhuleni Metro.

Sedibeng and West Rand District Municipalities with the aim

of establishing their regional tourism organisations in the area.

The unit also supported Sedibeng District Municipality with the

scholar Tourism Passport Project and Birding Route. The West

Rand District Municipality also received support for its feasibility

study for product development.

Annual performance indicators for Responsible & Regional Tourism:

Visitor Number of None None

requirements met provincial tourism

through world- annual awards

class products implemented by

and infrastructure March 2015

provision. and

unique. authentic.

experiences

To develop and Number of incident New indicator 12 12 None None

grow prioritised management

sectors in order reports generated

to improve their by March 2015

competitiveness.

and create

sustainable and

decent jobs

Visitor Number of New indicator 4 Target The Hominin

requirements met green initiatives exceeded by 3 House upgrade

through world- linked to tourism incorporated an

class products infrastructure additional

and infrastructure development by 3 innovative

provision. and March 2015 green initiatives

unique. authentic as a pilot

experiences

2.3.6 DESTINATION MANAGEMENT & DEVELOPMENT

2.3.6. l Destination Management

Purpose:

The purpose of the business unit is to contribute to tourism

sector development through SMME and co-operatives

facilitation and support. This will be achieved by facilitating

business management skills in the sector: facilitating access

to funding and markets. and enhanced service excellence:

facilitating registration in the sector: and identifying and

maximising tourism infrastructure and leveraging potential

benefits. The business unit is the lead delivery unit of the

GTA's core mandates, and as such leads delivery towards the

following Gauteng Tourism Strategic Goals:

Gauteng is a world-class destination, renowned for its

responsible and sustainable tourism experiences

Tourism is a major contributor to job creation and

economic development in Gauteng


To ensures that visitors to the province receive the highest

level of service excellence at every stage of their journey,

and that all new entrants have the necessary skills to deliver

quality experiences

To facilitate skills development initiatives and training

programmes for tourism enterprises and stakeholders

To register tourist guides as per the Act No. 3 of 2014:

Tourism Act, 2014

To provide tourism enterprise support (including SMMEs)

through financial and non-financial support


Initiatives and support programmes are geared towards

ensuring service excellence and quality products and service

in the province. In a nutshell, the unit is entrusted with ensuring

that Gauteng remains a world-class destination, renowned

for its responsible and sustainable tourism experiences. The

following areas of work are included in the remit of this division:

Tourism enterprise support programmes. including the new

Township Tourism Project

Demand-driven skills development and training programmes

Facilitating the grading of emerging

accommodation establishments

Registering and monitoring of tourist guides

Service excellence and sustainable tourism initiatives

Tourist guide registration, monitoring and compliance

During the period under review the unit registered 517 tourist

guides. Programmes to train/upskill some of the tourist

guides were also implemented. Guide information sessions,

focused on knowledge enhancement and product

development, proved to be extremely popular among

tourist guides. Tourist guide inspections were conducted

at OR Tambo International Airport and other tourist sites

around the province. Most were found to be compliant,

wearing their badges and presenting valid identity cards.

International Tourist Guide Day was hosted in February 2015,

in partnership with the National Department of Tourism, and

was held at the Maropeng Visitor Centre of the Cradle of

Humankind World Heritage Site. Over 200 tourism partners

and guides attended.The event was also attended by both

the national Minister and Deputy Minister (of the NDT), who

addressed the guides on the importance of their profession.

Enterprise support

During the year under review an SMME development

framework was developed in partnership with the Tourism

Enterprise Partnership (TEP). In structuring this programme.

the key focus has been on enabling enterprises to

improve their services and product offering, and increase

market access. The services were differentiated so as to

be relevant to the differing needs and capacities of the

various categories of enterprises. The enterprise support

programme was developed and aligned to TEP's tiered

support programmes, but included several complementary

components aimed at supporting the development of

emerging entrepreneurs and SMMEs.

The business support sub-programmes are aimed

at industry transformation by enabling historically

disadvantaged individual (HDI) entrepreneurs to grow

their tourism enterprises through skills transfer and business

brokering initiatives. During the year under review 400

tourism enterprises were supported with grading, market

access and business linkages. 60 aspiring entrepreneurs

were assisted with information on starting tourism

businesses. 300 SMMEs were supported through the

GTA/TEP MoU, and 464 rooms were graded through the

partnership with the Tourism Grading Council of South

Africa (TGCSA).A further 20 rooms were assessed but did

not meet the grading standard.

Workforce skills development

The target of l OOO beneficiaries of the GTA sector skills

training programme was surpassed and l 160 beneficiaries

were trained, of 452 of the beneficiaries are women. youth

or persons with disabilities from 50 townships.

After numerous delays in the transfer of the Ga-Rankuwa

Hotel School (GHS) from North West to Gauteng, which

was finally achieved during September 2013, the school

successfully completed second-year professional cookery

diploma training for 23 beneficiaries. The school also

assisted in the training of 202 beneficiaries in food and

beverages. reception and housekeeping skills during the

running of short-term programmes in these categories

from November 2014-February 2015. Upon request from

the MEC's office, the GHS trained 11 beneficiaries from

Katlehong (for the purposes of establishing a bakery

co-operative) successfully, with positive feedback from both

the MEC's office and the beneficiaries. Three hundred and

eighty youths were beneficiaries of a youth employability

programme, executed in partnership with the National

Department of Tourism in the Tourism Buddies programme.

One hundred and forty-six beneficiaries were trained

in customer care skills, and 398 beneficiaries trained in

business/enterprise development skills in partnership with

the TEP.

These achievements were made possible due to high

industry demand for training, and enabled through sound

public and private sector partnerships in executing these

projects. This programme. alongside initiatives such as

the GHS. is crucial for the province's sustainable global

competitiveness by ensuring that visitors do return and/or

are willing to recommend the destination.

Annual performance indicators destination management & development:

Visitors receive Number of 3 4 4 None None

the highest tourism workforce

level of service skills initiatives

excellence at implemented by

every stage of March 2015

their journey Number of people 703 l OOO l 160 Target exceeded Target exceeded

trained in tourism by 160 as a result of

skills by March MOU with TEP to

2015 leverage off their

resources for

additional SMME

support

Percentage New indicator l 00% completion l 00% completion None None

completion of of second- of second-

professional year diploma year diploma

cookery diploma (graduation) (graduation)

course of 22

second-year

students at the

Ga-Rankuwa Hotel

School by March

2015

STRATEGIC

OBJECTIVE

Visitors receive

the highest

level of service

excellence at

every stage of

their journey

To develop and

grow prioritised

sectors in order

to improve their

competitiveness,

and create

sustainable and

decent jobs

To develop and

grow prioritised

sectors in order

to improve their

competitiveness.

and create

sustainable and

decent jobs

PERFORMANCE

INDICATOR

Number of

rooms graded

funded through

GTA funding by

March 2015

Number of

beneficiaries

from youth

employability

programmes by

March 2015

Number of

tourism SMMEs

supported

through the

Integrated

Enterprise

Support Plan by

March 2015

Number of new

and existing

township-based

co-ops, in each

of the 11 sectors.

supported non-

financially by

March 2015

ACTUAL

ACHIEVEMENT

2013/2014

New indicator

New indicator

New indicator

New indicator

PLANNED ACTUAL

TARGET ACHIEVMENT

2014/2015 2014/2015

400 484

300 380

300 334

15 12

DEVIATION

FROM

PLANNED

TARGET

2014/2015

Target

exceeded

by84

Target

exceeded

by80

Target

exceeded

by34

Target

missed by 3

COMMENT

ON

DEVIATION

Leveraging on

ongoing

partnership

withTGCSA

Partnership with

NDT enabled

us to meet the

ever-growing

demands for

these youth

targeted

development

programmes

Target

exceeded

as a result of

MOU with TEP

to leverage off

their resources

for additional

SMME support

Complexities

associated with

co-operative

establishment

STRATEGIC

OBJECTIVE

To develop and

grow prioritised

sectors in order

to improve their

competitiveness,

and create

sustainable and

decent jobs

PERFORMANCE

INDICATOR

Number of youth

completing

learnerships by

March 2015

Number of youth

completing

internships by

March 2015

Number of

existing and new

township-based

SMMEs, in each

of the 11 sectors,

supported non-

financially by

March 2015

Number of new

and existing

township-based

SMMEs and co

ops owned and/

or managed by

women, youth

and persons

with disabilities

supported

financially and

non-financially by

March 2015

ACTUAL PLANNED

ACHIEVEMENT TARGET

2013/2014 2014/2015

New indicator 25

New indicator 12

New indicator 100

New indicator 60

ACTUAL

ACHIEVMENT

2014/2015

25

13

102

71

DEVIATION

FROM

PLANNED

TARGET

2014/2015

None

Target exceeded

by l

Target exceeded

by 2

Target exceeded

by 11

COMMENT

ON

DEVIATION

Effective

partnerships

of the

Ga-Rankuwa

Hotel School

with industry

led to the

achievement of

this indicator

An additional

opportunity

was facilitated

as a result of

vacancies

resulting from

the merger

Target

exceeded

as a result of

MOU with TEP

to leverage off

its resources

for additional

SMME support

Target

exceeded

as a result of

MOU with TEP

to leverage off

its resources

for additional

SMME support

To develop ond Number of New indicator 250

grow prioritised women, youth

sectors in order and persons with

to improve their disabilities from

competitiveness. the 50 townships

and create trained in tourism

sustainable and skills by March

decent jobs 2015

2.3.6.2Tourism infrastructure. investment and development

Purpose:

The purpose of this programme is to establish long-term tourism

infrastructure strategic planning processes. deliver products.

experiences, tourism research. infrastructure and investment into

tourism, which assists Destination Gauteng to deliver on the GTSS

mandate of providing world-class infrastructure and experiences.


To deliver on the GTSS targets set for 2020. to increase

investment in tourism infrastructure from the public and

private sectors. as well as foreign direct investment


This unit covers the following work areas: tourism planning, policy,

visitor services, tourism investment. product and experience

development, and tourism infrastructure development.

452

Infrastructure upgrades

Target exceeded

by 202

In implementing

the Township

Economic

Revitalisation

(TER) agenda,

beneficiaries

from the

townships

were prioritised

through

Ga-Rankuwa

Hotel School

and the

partnership

with the Tourism

Enterprise

Partnership

The Gauteng Provincial Government owns the Maropeng

property. The key focus to undertake a process to deliver

on the various elements of the Maropeng infrastructure

upgrades has been premised on the enhancement of

visitor experiences through a diversified tourism offering.

It is this process that contributes to the development and

management of a coherent destination. as an anchor

project to stimulate the regional economy on the West

Rand. The completion of the extension of Hominin House

ensured that a total of l 09 temporary jobs were created

in this process. Subsequent infrastructure upgrades are

anticipated to increase visitor numbers and spend, and

thus to grow the revenue of the Maropeng operations. The

green initiatives on the Hominin House expansion project

set a benchmark for similar sustainable tourism projects for

the entire tourism sector in Gauteng.

Tourism investment initiatives

Developing a pipeline of tourism infrastructure projects for

progressive delivery from project packaging to investment

and actual delivery remained a priority.This area of work

has ensured that the organisation was able to showcase its

investment opportunities to developers. partners, promoters,

and investors at multiple platforms, including HICA. At

HICA all the major hotel groups presented key projects

i.e. Maropeng Hotel development. Suikerbosrand Nature

Reserve and the Ga-Rankuwa Hotel School. Completion

of the repositioning strategy for Suikerbosrand was also

a key deliverable. The impact of this work is wider than

Suikerbosrand, as it proposes a model to manage other

Gauteng nature reserves, in collaboration with the Gauteng

Department of Agriculture and Rural Development. From

a TMR perspective. this presents a critical provincial

game-changer for the effective management of both

conservation and tourism facilities.

In addition to the above. the unit is already acting on

behalf of the GTA to create a viable and integrated tourism

transport network for Gauteng. in collaboration with the

Department of Roads and Transport. PRASA. Transnet.

Gautrain and municipalities, among others. so that clear

consensus and commitments from these entities can be

sought at the highest provincial decision-making level.

The main purpose of this process is to ensure enhanced

domestic and international visitor experiences, longer stays

and repeat visitation, as well as to disperse the benefits of

tourism widely across Gauteng through the modernisation

of an efficient public transport system.

Visitor services

The Gauteng Tourism Visitor Services Programme is aimed at

growing the visitor economy by increasing visitors and length

of stay in Gauteng, thus increasing the regional GDP. ensuring

regional spend and creating employment opportunities. The

programme includes creating a network of visitor centres in

Gauteng with the aim of providing high-quality and up-to

date information on Gauteng tourism offerings. In an exciting

development, Gauteng's first Mobile Visitor Information Centre

has also been delivered in partnership with the Automotive

Industry Development Centre. This vehicle will service all the

regions of Gauteng. and will also be used for major events

and exhibitions. In 2015/16. the following visitor information

centres will delivered:

The Sandton Square Visitor Information Centre will be

developed through an agreement with Liberty Group

The Eastgate Mall Visitor Information Centre will be

developed in collaboration with Stanlib Properties

Rental has been negotiated to be free for both spaces.

Construction is expected to be finalised in October 2015

Local tourism associations are being capacitated through

the development of a unified industry membership system.

The aim of this project is to create a credible, up-to-date

database of tourism offerings in Gauteng. This database will be

used for visitor information provisioning at all Gauteng visitor

information centres. In order to deliver this project. membership

co-ordinators have been recruited in three regions (Ekurhuleni,

Tshwane and West Rand).Three website-based database

management systems will be launched in these three regions

in 2015.

The GTA is collaborating with the Tourism Business Council

of South Africa (TBCSA) in the implementation of the Tourism

Safety Initiative (TSI) project. The TSI is aimed at increasing the

number of visitors to Gauteng, through reducing the number

of visitor-related crimes as well as supporting visitors who have

been affected by crime. This aim has been achieved through

the following objectives:

Visitor crime reporting and intelligence reporting. Tourism

establishments will be encouraged to report tourism crime

incidents. A tourism crimes report will be published at

regular intervals

Emergency and incidence management. A network of

volunteers and service providers will be established to offer

a network of services aimed at assisting visitors affected by

crime during emergencies

A communications strategy will be developed, with the

aim of communicating good and positive news of the fight

against tourism-related crimes

Product development

Two new themed maps were added to the existing eight.

The maps intend to raise awareness of Gauteng's rich and

varied heritage, leisure and lifestyle, encouraging domestic

and international visitors to explore different dimensions or

aspects of the province. The maps will motivate GeePees

to tour the province, and core and tactical markets to stay

longer, visit again and spend more while in Gauteng. The

two new maps are Gauteng for Kids and the Visual Arts

Map. The Gauteng for Kids map showcases family- and kid

friendly activities and destinations. The map will help parents

navigate the logistics of travelling with children, as well as

introduce families to destinations around the province.

It will feature top family-friendly restaurants, attractions,

activities, events, entertainment, day trips, extra-murals and

lots of family fun. The Gauteng Visual Arts Map will leverage

international interest in Gauteng's flourishing arts sector.

showcasing Gauteng's contemporary arts scene and

highlighting historic art collections. The map will showcase

the artists and their work making waves in the local and

international art worlds. This themed map demonstrates why

Gauteng is the pre-eminent African arts capital.

In line with developing themed experiences, the Struggle

and Democracy Route experience was conceptualised

and developed by the GTA in 2014. Delivery in 2015 will

include the training of qualifying Struggle veterans as

experience storytellers/ambassadors. These will be the first

group to be trained and accredited as official storytellers

of the experience.The second initiative is the development

of products of origin that will take arts and craft experts

through a programme of product development. production

and marketing to ensure that visitors can purchase unique

tourism products of origin. This programme draws on the

links between the creative industry and tourism. and will

create employment for approximately 30 Struggle veterans

in Gauteng. Additionally, work has begun on creating the

Gauteng Birding Experience, which includes developing

a birding map and unique experiences for Gauteng. It is

targeted at the local and international birding markets.

Future interventions include training township tourist guides

to lead in terms of narrating these experiences.

2.3.6.3 The Township Tourism Programme

Township tourism is unique to South Africa. There are other

examples in other countries where tourists pay to visit an

indigenous population but none has the political significance

of the townships, which were the base for both the civil

disobedience and the armed struggle used to fight and

eventually overthrow apartheid. In support of the revitalisation

of the township economy in Gauteng, the GTA has identified

a number of significant townships that will be revitalised

through tourism. and in particular through experiential tourism.

Experiential travel is a new form of tourism that engages visitors

in a series of memorable travel activities that are inherently

personal. It involves all the senses, and makes connections on

a physical, emotional. spiritual. social or intellectual level. It is

travel designed to engage visitors with locals. set the stage for

conversations, tap the senses and celebrate what is uniquely

Gauteng. It represents an opportunity for the tourism industry to

inspire visitation by creating authentic experiences designed

to connect travellers to the special places, people and cultures

within communities.

The GTA received additional resources in February 2015

to implement this programme as a key component of the

Gauteng Township Economy Revitalisation Project, aimed at

the growth and development of tourism SMMEs in townships

within Gauteng. The programme will aim to position tourism as

a key driver of township economy revival through job creation,

entrepreneurial development and sector transformation.

The outcome of this project will see 20 township experiences

(cultural. lifestyle and adventure) being developed and

packaged for promotion in the market. This project is

being implemented in phases. Phase l targeted Soweto

and Sophiatown; Fordsburg and Fietas; Alexandra; Kagiso;

Mamelodi; Atteridgeville; Refilwe; Onverwacht and Rayton;

Katlehong, Thokoza and Vosloorus; Tembisa; and Sharpeville

and Boipatong. Phase 2 will expand to include additional

townships. The Township Tourism Programme is a flagship

project that will be prioritised for implementation in the MTEF.

This project supports the GTA's integrated township tourism

development and promotion/marketing plan, which is aimed

at radical transformation of the economy through interventions,

and means to unlock growth and employment potential for

youth and women, and to revitalise and transform the

township economy.

The programme is underpinned by extensive research into the

township tourism environment. This has included and extensive

literature review, desktop research and focus groups with the

tourism sector in the townships, as well as telephonic interviews

with key informants. Further research is being undertaken in the

20 townships identified for this programme, which will inform the

development of the unique experiences in each township.

The period under review sow the initiation of the following

areas of work:

Development of the Tourism Experience Toolkit, a step-by-step

user guide on how to create tourism experiences. This will

be translated into several official South African languages

to ensure that all communities are better equipped to

participate in the mainstream tourism economy

Infrastructure development and support plan - infrastructure

audits will be conducted to identify existing infrastructure

(main and supporting) gaps in the townships, and the

implementation plan will include recommendations to fix the

gaps in the MTEF circle.This is to ensure that there is proper

co-ordination of all services and stakeholders that impact on

and aim at maximising visitor service

Tourism SMME growth and promotion plan - working

with TEP and GEP will ensure that all SMMEs in the value chain

are assessed for sustainability and competitiveness, and that

interventions by the relevant institutions are drawn into the

programme. The GTA is also currently developing the township

tourism brand, which will ensure a strategic profiling and

promotion of Gauteng townships and its experiences

Research - continuous research will be undertaken to

ensure that baseline data informs the development of,

and investment into, tourism experiences, products

and infrastructure

Annual performance indicators for tourism infrastructure. investment and development:

Visitor Number of New indicator 2 2 None None

requirements new tourism

met through experiences

world-class developed by

products and March 2015

infrastructure

provision,

and unique,

authentic,

experiences

Number of New indicator 25 25 None None

township

neighbourhood

tourism

experiences

packaged and

marketed

Number of 2 3 3 None None

operational

visitor information

centres (VI Cs)

in Gauteng per

annum

2.3.7 INTEGRATED DESTINATION MARKETING & COMMUNICATIONS

The Integrated Marketing Communications division is divided

into the following business units:

1. Brand Management.

2. Leisure & Consumer Marketing.

3. Corporate & Destination Communications.

4. Digital Marketing.

5. Trade Marketing & Partnerships.

6. The Gauteng Conventions & Events Bureau.

Purpose:

The purpose of the division is to develop and deliver highly

targeted and integrated marketing and communication

campaigns in both the domestic market and key global

markets through optimal use of best technology and social

networking platforms. It is further charged with the responsibility

to promote Gauteng signature experiences and events to

strengthen Gauteng's position in the marketplace, and develop

the awareness and appeal of Gauteng as a leisure and

business tourism destination.


The business unit is delegated as a lead delivery unit of the

GTA's core mandates, and as such leads delivery towards the

following Gauteng Tourism Strategic Goals:

Gauteng is a world-class destination renowned for its

sustainable tourism experiences

Gauteng is recognised as a global tourism competitor for

leisure and business travel

Position Gauteng as a premier sporting, cultural and MICE

events province

Attract first-time and repeat visitors through implementation

of niche marketing plans

Domestic tourism in Gauteng is a vibrant and profitable part

of the provincial tourism industry

Market Gauteng locally and internationally to attract visitors

Build and implement the GTA's media engagement

programmes

Build destination marketing capabilities through the use of

technology and social media

Annual performance indicators for integrated destination marketing & communications:

STRATEGIC PERFORMANCE ACTUAL PLANNED ACTUAL DEVIATION COMMENT

OBJECTIVE INDICATOR ACHIEVEMENT TARGET ACHIEVEMENT FROM ON

2013/2014 2014/2015 2014/2015 PLANNED DEVIATION

TARGET

2014/2015

To facilitate and Number of 5 40 40 None None

promote the association

Gauteng City meetings and

Region as an exhibitions hosted

investment, trade in Gauteng by

and tourism March 2015

destination Number of annual 10 10 20 Target exceeded Additional

signature events by 10 events

hosted by March supported

2015 as a result of

additional

resources from

OED during the

financial year

STRATEGIC PERFORMANCE ACTUAL PLANNED ACTUAL DEVIATION COMMENT

OBJECTIVE INDICATOR ACHIEVEMENT TARGET ACHIEVE- FROM ON

2013/2014 2014/2015 MENT PLANNED DEVIATION

2014/2015 TARGET

2014/2015

To facilitate and Rand value of New indicator 300 711.6 Target exceeded Additional events

promote the economic benefit by R4l l .6 million supported as a

Gauteng City generated from result of

Region as an conferences. additional

investment. trade signature events resources from

and tourism and exhibitions DED during the

destination hosted (R million) financial year

per annum

Number of 650 OOO 650 OOO 786 139 Target exceeded Increased

unique visitors to by 136139 investment

the website per in content

annum generation and

leveraged heavily

on social media

platforms to drive

greater online

traffic

Number of 4.27 4.2 3.8 Target missed by Changing

international 400 OOO market

visitor arrivals to conditions also

Gauteng [million] dropped the

per annum Gauteng market

share to 39.8 %

from 41.6% in

2013

STRATEGIC

OBJECTIVE

• • .... . .

promote the

Gauteng City

Region as an

investment. trade

and tourism

destination

PERFORMANCE

INDICATOR

• • • .

of revenue

generated from

international

tourists in

Gauteng per

annum [R billion]

Rand value

of revenue

generated from

domestic tourists

per annum

[R billion]

Number of

domestic trips

to Gauteng per

annum [million]

Number of bed

nights spent

per annum by

international

visitors [million]

Number of

days spent in

the province by

international

tourists per

annum

ACTUAL PLANNED

ACHIEVEMENT TARGET

2013/2014 2014/2015

21.7 5

10.3 5

29.4 30

6 6

ACTUAL DEVIATION COMMENT

ACHIEVEMENT FROM ON

2014/2015 PLANNED DEVIATION

TARGET

2014/2015

... . .. . ..

R6.9-billion in revenue is

consistent with

a decline in

arrivals;

particularly

among key

African source

markets

4.4 Target missed by Adversely

R600-million affected by

local market

conditions

4.3 Target missed by Adversely

700 OOO trips affected by

local market

conditions

27.5 Target missed by The decline

2.5-million in revenue is

consistent with

a decline in

arrivals

7.5 Target exceeded Increased

by 1.5 attraction of

destination

Gauteng and

its offerings

improved

average length

of stay

2.3.7.l Brand Management

The brand and experience thereof, which is Destination

Gauteng, was identified as a critical pillar for the successful

implementation of the Gauteng Tourism Sector Strategy

(GTSS). The Brand Management unit therefore exists to

respond to that pillar's realisation through the development

and implementation of a brand strategy aligned to the GTSS

to not only create a unique and known visual brand identity

for our destination. but also guide the inherent elements of

Gauteng's destination brand for tourism such as consistently

communicating our unique selling propositions (USPs). our

brand positioning as a business and leisure one-stop shop, and

other brand-intrinsic attributes such as celebrating the Place of

Gold, Gauteng.

The Brand Management unit does not operate or exist

as a silo, but as a unit within the Integrated Marketing

and Communications (IMC) division of the GTA, thus

functions in support of the overall organisational marketing,

communications and branding needs. Having developed

a comprehensive brand strategy for the GTA in the previous

financial year of 2013-14, the implementation of this

aforementioned strategy was the primary area of focus for the

year under review.

The unit exits as part of a bigger IMC division that thus supports

the following objectives:

Increase demand for Gauteng's visitor brand offering

domestically and internationally. through the creation and

presentation of a unique provincial tourism brand

Use of research intelligence to guide brand presentation

to attract new and repeat visitors. This unique Gauteng

destination brand created sets to be used in support of the

stimulation of new and growth of existing market share

Roll-out of a refreshed visual and inherent brand identity

across all brand contact points. ranging from markets to

operations such as branding, websites. social media, etc.

Ensure provincial brand alignment to create a single,

coherent and multi-offering brand for Gauteng, as per its

unique regional brand identities and offerings

The abovementioned goals, which are strategic (long-),

medium- and also short-term. are achieved through a number

of key functional areas of work. including areas relating to

the visual brand identity creation such as the brand manual,

corporate identity (Cl) development and implementation.

photography, design, collateral development, sub-brands

development. campaign concept development and support.

destination branding and brand management (e.g. consistent

messaging management. etc.)


A number of key projects were undertaken as set out in the

operational plan for the 2014-15 financial year, all in support of

achieving the broader organisational, IMC and brand strategy

specific objectives. These included the following functional

areas and projects hereunder:

Brand manual design and roll-out

The previous year saw the development of a cohesive

brand strategy for Gauteng. which resulted in the

development of a Brand Manual that required roll-out

across various brand contact platforms. This allowed for the

updating of the visual and inherent brand identities across

various platforms such as the website, branding material.

online. visitor information centres and other collateral. such

as brochures and videos. The use of the Cl manual has also

seen the creation of consistent brand roll-out, where the

Gauteng brand has created a new and known identity for

increased brand recognition and experience retention.

Development of sub-brands - the Gauteng Signature

Collection and Gauteng Hidden Gems

In response to Gauteng being perceived as a purely

business tourism destination. it became imperative

to develop the Gauteng Signature Collection brand.

which is a collection of all Gauteng's must-see and

iconic leisure experiences. The Gauteng Signature

Collection brand was developed in consultation with

all signature experiences across the province. such as

Soweto. the Apartheid Museum. the Vaal. the Cradle

of Humankind. the Voortrekker Monument. Airport

Museum and others. The brand was showcased

and strongly supported through advertising and

promotions during the period under review. This

dispelled wrong perceptions that Gauteng had no

extraordinary leisure experiences. and also changed

industry. trade and consumer perceptions in that

regard.

The Gauteng Hidden Gems brand was developed in

partnership with the Tourism Enterprise Programme

(TEP) to profile all unseen. unspoken of and generally

perceived as not visitor-appealing offerings by

industry. Guided by findings emanating from the

South African Travel and Tourism Summit. the creation

of visitor-focused experiences and brands informed

the Gauteng Hidden Gems brand and its offerings.

Gauteng Hidden Gems was very well profiled at the

Tourism lndaba. and allowed the tourism trade an

alternative and authentic visitor-driven experience.

Regional USPs development

The development of unique selling propositions (USPs)

for all regions to ensure alignment to the Gauteng

mother brand commenced during the past year. and

the West Rand and Sedibeng USPs were developed

through a consultative process with private sector

associations. municipalities and other role-players

such as tourism products.The West Rand has been

defined as the region of origins. heritage and

adventure because the Cradle of Humankind World Heritage

Site. history and heritage and adventure escapes and activities

emerged as the core regional offerings. The Sedibeng region

has been classified as the water region due to the prevalence

of the Vaal River. as its biggest and brand-differentiating tourism

offering.

Destination video and photography

The promotion of a destination. as well as presentation of

the brand offering. cannot happen in the absence of visual

collateral such as video and photography. A number of

videos were developed through various partnerships purely

for the purposes of profiling on different platforms:

A Gauteng Signature Collection video, showcasing

the total inventory of all signature experiences. This

video was used at trade shows such as the Tourism

lndaba. on online media platforms and shared with

key partners for ongoing profiling of the Gauteng

Signature Collection

Three City Film videos were created in partnership

with the globally acclaimed City Film. which

showcased our province's cities and surrounding

offerings on a global platform through partnering

with international hotels in over 40 countries

A destination commercial was produced during

the year under review. The commercial featured

two acclaimed South African actors. Rapulana

Seiphemo and Kenny Nkosi. in the Gauteng Sho't

Left domestic tourism campaign. This commercial

not only aligned to South African Tourism's national

campaign but also presented the domestic tourism

experience. as undertaken by locals. in a refreshing

and appealing manner

Online videos for all the Gauteng regions were

developed and approved. These videos are

presently loaded on the GTA social media

platforms. website and YouTube. and provide an

increased idea of what the broader Gauteng

tourism offering is through regional differentiation

As far as photography is concerned. a service provider was

commissioned to capture all of Gauteng's signature offerings

across the province. This does not only increase the GTA

photo library in terms of showcasing a variety of product and

experiences. but it is photography that is expressive of the

Gauteng brand that centres on the origins of humankind and a

place of ignition. cosmopolitan environments. competitive sport.

unique people and urban neighbourhood spaces.

• Collateral - Gauteng branding material. visitor's guide,

brochures, maps and visitor information

As much as it may seem as a minor area for branding.

this area is quite critical as it covers many platforms

where targeted audiences and key industry role-players

are exposed to the brand.The following collateral was

developed for increased destination branding. experience

profiling. and brand awareness and consumption:

Branding material - brand material that goes beyond the

profiling of the visual brand elements such as a logo and

corporate colours were developed.This material. as aligned

to the Cl. used photography on the branding and also

saw production of material suitable for various platforms

and target markets. e.g. region-specific branding for event

branding. etc.

Gauteng Visitor's Guide - for the first time. a comprehensive

Gauteng Visitor's Guide was created. The guide showcased

major tourism hubs across the regions. signature

experiences and hidden gems, providing visitors with a

variety of experiences from which to choose

Official Tourist Map - an official map of the province,

primarily for visitor navigation but also briefly capturing

our visitor hubs across all regions and signature offerings,

was developed. This map is widely distributed at visitor

information centres, exhibitions and other

promotional platforms

Visitor Information Centres - the creation of an aesthetics

manual the previous year, informed by the overall brand

manual for Gauteng for all Visitor Information Centres

(VICs), realised the branding of Gauteng's very first mobile

VIC. This was done in support of a project led by the

Visitor Information Services sub-unit. where the mobile

VIC was branded. All regional experiences are profiled

as informed by their regional USPs or flagship offerings.

This should not only see increased dissemination of visitor

information to address the issue of low product and

experience awareness, but also serve as mobile advertising

for Gauteng tourism offerings and other promotions, e.g.

launches. collateral distribution. etc.

Themed route maps - the design and printing of themed

route maps for events and the arts were also finalised

during the period under review

Gauteng Events Map - a Z-fold calendar of all Gauteng

signature events was developed in support of the

Convention & Events Bureau unit in the Integrated

Marketing and Communications (IMC) work stream. This

was used as part of the Gauteng Sho't Left campaign,

aimed at using events to increase visitor footfall into the

province. These included events such as the Standard Bank

Joy of Jazz Festival. Cradle Cycle Festival. Go West!. the

Gauteng Shopping Festival and other signature events

GeePee Life magazine - the rebranding and design,

production, printing and distribution of the second edition

of Gauteng's lifestyle magazine was completed as part of

the GeePee Sho't Left campaign, which was aligned to the

South African Tourism domestic campaign

Airport TV - a year-long partnership with Provantage was

entered into for the profiling of our experiences across

airports in the country. All campaigns, events and other

Gauteng promotions were profiled on this national

platform that targets business, leisure and other travellers

domestically and internationally. All these are key target

segments for Gauteng tourism

Additional and ad hoe brand support

Being a support function that oversees consistent and

increased brand profiling across the entire organisation, the

Brand Management unit also executed the following areas

of work on an ad hoe basis during the period under review:

Events invitation designs, photography and videos

for events such as the Lilizela Awards, Gauteng

Conventions & Events Bureau (GCEB) events, etc.

Exhibitions stand design, building and

construction support

2.3. 7 .2 Destination Communications

As part of the GTA's efforts to streamline integrated marketing

and communications work, it has adopted a channel

approach to selling Destination Gauteng.These channels are

the agency's reach to trade, leisure, business, visitor services

and media that in the overall makes up the travel and tourism

value chain. The approach of the GTA has been to use all these

channels through a single operating model that enables each

to leverage from the other. Also underpinning this approach is

a dedicated focus on unique characteristics and offerings of

Destination Gauteng, such as township experiences and key

work and messaging around transformation, modernisation

and reindustrialisation efforts by the provincial government.

The unit provides integrated communications services that

aid the agency's drive to position the province as a leading

leisure and business tourism destination in Africa and beyond.

The unit is, among others, responsible for the following areas

of work: media relations, including the Visiting Journalists

Programme, media hosting and familiarisation trips, as well

as communications research, content development, and

corporate and internal communications.The unit's main

purpose is to provide integrated communications services

that aid the agency's drive to position the province as a

leading leisure and business tourism destination in Africa and

beyond. The unit serves as a reliable point of contact and

disseminator of GTA information and services to key role-players

and.partners, and a valuable resource to both internal and

external clients.

Leisure and domestic tourism promotion

During the period under review, the unit focused on

the promotion of leisure and business tourism through

various channels. The unit promoted the Northern Corridor

Cluster of the Cradle of Humankind, Lion Park and Croc

City through national media channels. The unit also

developed and leveraged the Tourism lndaba platform by

collaborating with South African Tourism in hosting the Meet

South Africa international bloggers who formed part of the

annual leisure travel show in Durban.These bloggers were

deployed across the key experiences in Gauteng,

not only to immerse themselves with the offerings but

to further assist the efforts of the GTA in generating the

required content, especially images of the key Gauteng

signature experiences.

As part of the agency's domestic and leisure tourism

promotion drive, the unit spearheaded the a partnership

with Metro FM and Power FM in the period under review

to run a domestic #GeePeeShotLeft campaign in which

consumers or the public were directly engaged with, and

ran a competition in which lucky listeners won various

experience packages in key Gauteng attractions across

all regions.

The Destination Communications unit, as part of Gauteng's

Sho't Left drive, also produced and launched the Gauteng

lifestyle domestic tourism publication ( GeePee Life) and

partnered with major hotels and events in the distribution of

this important magazine.

Visiting Journalists Programme

With this programme, the Destination Communications unit

provides support to visiting travel, lifestyle, entertainment,

sporting and specialist niche-market journalists across

South Africa, the region and internationally. This support

is in the form of scheduled access to key content

sites, information packaging, access to events and

dedicated, specialist interviews to shape and influence

editorial content of various media publications and

programmes. In the period under review, a number of

international journalists, ranging from the Good Morning

Show in Australia that recorded live the Nelson Mandela

International Day broadcast from Vilakazi Street in Soweto,

to visiting journalists from Kazakhstan, the Eastern Cape and

Chino Travel News Week/ywere hosted.

The unit also played a leading role in facilitating the

shooting of the Hollywood blockbuster The Avengers in the

streets of Johannesburg CBD in the period under review.

The movie premiere was scheduled for June 2015 and the

golden city skylines are clearly visible in the trailer, a perfect

promo for the city of Johannesburg.

Guided by the provincial government's Transformation,

Modernisation and Reindustrialisation (TMR) Programme,

the unit has ensured that the organising of such visits

includes the embedding of township experiences and the

sharing of our collective efforts to engender a pan-African

agenda in the agency's marketing and promotion drive

with the visiting journalists.

Media hosting and familiarisation trips

In the period under review, several international and

domestic media were hosted with a view to provide

first-hand content and help in shaping and influencing

their editorial coverage. The goal of this programme is

to generate editorial coverage that inspires travel to the

Gauteng City Region in high-circulation publications in

South Africa and abroad. Overall. this programme has been

a hallmark of the agency's successful global media relations

strategy to build relations with the media and to also allow

them first-hand experience of Destination Gauteng.

With the rise in popularity of some of our flagship attractions

such as Maboneng, Braamfontein, the City Sightseeing

Red Bus and the continued scientific discoveries in the

Cradle of Humankind World Heritage Site, the agency

has in the period under review received unprecedented

requests and visits by foreign and regional media to visit

these sites for a first-hand experience. It is through this work

in collaboration with the cities that the agency has been

able in the past year to cement Joburg's standing in the

global arena as Africa's most-visited city, and further receive

accolades and awards for Maboneng and many of the

inner-city development initiatives. The unit has continued to

use big events to invite and host regional and local media,

leveraging on the staging of these mega events such as

the famous Soweto Derby soccer match between Orlando

Pirates and Kaizer Chiefs. This platform continues to be a key

enhancer of the agency's destination promotion content,

and a hit with both regional and local media.

Supporting our flagship and signature events

In line with the TMR objectives, the unit has aligned the

media promotional drive of the agency to focus on selling

key flagship and signature events across the African region,

and the Southern African Development Community (SADC)

in particular. This is part of the unit's efforts to strengthen

regional co-operation and trade with the promotion of,

among others, the inaugural Joburg Shopping Festival, the

Standard Bank Joy of Jou Festival and the Gauteng SANSUI

Summer Cup in Botswana, Angola and Mozambique.

The unit spearheaded the partnership with South Africa's

biggest lifestyle radio station, Metro FM. in promoting big

urban city vibe and lifestyle in Maputo in association with

the South African embassy in Mozambique. This enabled

the GTA to showcase some of Gauteng's top and emerging

designers in this key market, and further built momentum

and interest in the Joburg Shopping Festival.

The unit continued in the year under review its drive to

support Gauteng signature and flagship events with media

relations and mobilisation work. In that regard the unit

supported Go West!, the Soweto Wine Festival. the Getaway

Expo, the Joburg Inner City Festival. the Vaal Wine Route and

many others with the packaging of information for editorial

coverage and overall promotion. as part of selling Gauteng

as the home of mega events, lifestyle and entertainment.

Furthermore, in the period under review, the Destination

Communications unit co-ordinated media coverage and

support for the Heads of State Footprint Project in the Cradle

of Humankind. These events continued to draw massive

media interest and have been used to help improve and

build the profile of Gauteng's only World Heritage Site. The

unit has facilitated the hosting of targeted media sessions,

broadcasts and coverage through making available some

of Gauteng's key attractions to serve as anchor sites for

key national and international broadcasts. In that regard,

the Dinokeng Game Reserve and the Cullinan Tourism

Hub hosted SABC's Morning Live broadcast and ANN?

dedicated broadcast cov�rage.

The agency's Convention & Events Bureau unit also

received media support in the form of targeted coverage

and interviews on key print and broadcast media, with

special focus on business tourism, Meetings Africa and the

hosting of mega conferences and exhibitions.

Media partnerships

The Destination Communications unit has made

considerable strides in the year under review by building

lasting partnerships with the media. The unit initiated a

targeted relationship with the Eastern Cape-based

The Herald and Now Media for travel trade content, Metro

FM for Gauteng lifestyle events and domestic campaigns,

and Power FM for domestic and business tourism initiatives.

The unit continues to have a good working relationship with

Good Morning Africa, Morning Live and SABC's channel

404 Kaleidoscope programme, in which Gauteng-specific

coverage and content amounted to 19 episodes of the

48 travel and tourism programmes broadcast across the

African continent in the period under review: this is a

remarkable feat, considering the channel covers the rest of

Africa as well as all nine of South Africa's provinces.

Internal and corporate communications

In the period under review, the unit's limited capacity and

resources in this area of work was severely exposed. Despite

these limitations the unit continued to consistently produce

the various internal publications and programmes aimed

at ensuring direct and unmediated internal

communications flow.

The unit also produced an integrated change

management communications strategy that guided

the work of the technical task team that was set up to

lead the merger process of all three tourism entities in

the province. We initiated in the period under review, a

quarterly staff celebration and reflection of key quarterly

milestones achieved.The programme was a huge success

but had to be abandoned due to limited resources and

the implementation of cost-cutting measures by Treasury.

The unit continues to drive the production of the annual

report, and work with Corporate Services in organising staff

wellness and information sessions with key specialists and

experts in various aspects of staff professional life.

2.3. 7 .3 The Gauteng Convention & Events Bureau

The meetings industry has come of age and has firmly placed

itself at the centre of tourism as one of the key drivers of the

sector's development, and an important generator of income,

employment and investment. Gauteng has identified radical

economic transformation, modernisation of the economy and

reindustrialisation as core pillars for economic growth. The visitor

economy is critical to the economic success of the province,

and the meetings industry is one of the core pillars of this visitor

economy. In addition to important business opportunities, the

meetings industry provides immense benefits to the broader

economy as it generates on average a higher spending

level, reduces seasonality, contributes to the regeneration of

destinations, spreads knowledge and enhances innovation

and creativity.

Gauteng has become a serious player in the meetings,

incentives, conventions and exhibitions (MICE) market.

Gauteng has a proven capability, capacity, and an impressive

track record with regard to the successful hosting of major

international business events and incentives. Many international

visitors have experienced Gauteng's first-rate infrastructure,

outstanding star-graded business events facilities, award

winning international convention centre, world-class airport,

excellent accommodation options, and technology and

telecommunications infrastructure that rival the best in the

world.These, combined with the unique cultural interactions

our international visitors have with local communities, as well

as the many adventures and experiences unique only to

Gauteng, add to the value of hosting a business event or

incentive in the province.

The repositioning of the GTA provides for the establishment

of the Gauteng Convention & Events Bureau (GCEB) within

the GTA, which mirrors the South African National Convention

Bureau. This unit is already operational, although not fully

resourced as yet. The unit is tasked with implementing the MICE

and events strategic frameworks, and growing the MICE and

events industry in Gauteng. The aim is to provide assistance

to meeting planners, incentive organisers and events rights

owners who are considering Gauteng as their next MICE

or events destination. The GCEB is a ·one-stop" solution for

independent information and assistance, giving neutral advice

on all aspects of hosting and organising business and other

events in Gauteng. The unit will co-ordinate provincial bidding,

undertake research, and collaborate with the national and city

convention bureaus to promote MICE and events in Gauteng.

The unit will provide support at every level, using our expertise,

strategic planning and destination knowledge to ensure that

conferences, exhibitions, events or incentives in Gauteng are a

special experience - memorable for delegates and attendees,

and hassle-free for meeting planners and incentive organisers.

The MICE programme positions Gauteng as a quality

alternative to other international meetings, events and incentive

destinations. Gauteng's state-of-the-art facilities, high service

levels, diverse destinations and distinctive niche product

experiences are promoted in key geographic and segment

specific markets to generate new business opportunities, thus

growing tourism export revenues. The challenge now is to

establish Gauteng as a global MICE destination, delivering

a world-class visitor experience and ensuring that business

tourism contributes to the economic success of the province.

The GTA aims to grow Gauteng to be an ICCA top 50

international destination that delivers a compelling experience

for meetings and events. That success will include Gauteng

being recognised as a leading African event destination for a

broad cross-section of conferences, from small-scale meetings

to international association conferences, attracting thousands

of delegates.

The GCEB actively targets conferences and trade events of two

to three-day duration that need delegate accommodation,

1

because these events deliver greater economic benefits. It

targets the following categories of events and conferences to

the province:

Political and governmental events

Corporate - e.g. AGMs, sales conferences

Public sector - e.g. health, local government conferences

Associations - across all sectors and professions, working

closely with the universities to identify the sectors and

professions offering the strongest synergies with the

province, and which support the knowledge economy

Helping to increase the province's high-yield business tourism

market. the GCEB provides information and assistance to

meeting and incentives planners, media, corporate and

association buyers who show an interest in one of the five cities

that it promotes. Working beside organisations and business

event leaders, the GCEB identifies international and national

conferences, congresses. events. meetings and incentives

to bring to Gauteng. Support services include standard bid

support material. venue and accommodation sourcing,

network to gain local association and promotional support.

Using its extensive list of key stakeholders such as airlines, hotels,

venues. tour operators and government protocol offices, it is

capable of delivering quality services to all interested parties.

The GCEB assists professional meeting planners. destination

management companies, event organisers. associations and

corporate buyers in three stages (bidding, delegate boosting

and onsite event services stage). These include:

Bid assistance for national and international events/

conferences/meetings

Corporate events and incentive concepts

Access to support services and service providers

Provision of destination marketing material

Airport welcome and departure desk

Supply with a list of accredited Gauteng professional

conference organisers

Delegation boosting

Convention planning support

Site inspections

Generating leads:

During the year under review the GCEB undertook several

activities specifically designed to generate new leads, including:

The ICCA Africa business exchange with Middle East and

European chapters during IMEX Frankfurt 2014, resulting

in 18 business matchmaking appointments and two

qualifying business leads

Attendance at the Southern African Association for the

Conference Industry (SAACI) and Exhibition and Event

Association of Southern Africa (EXSA) congresses to

capitalise on large business events coming to Gauteng

over the next three years, and drive yield for both the city

and the province

Comprehensive sales calls were undertaken in key source

markets by the GCEB team, including visits to conference

and exhibition venues, hotels and relevant attractions. This

programme of targeted sales calls resulted both in new

leads and secured business

A new area of focus for 2014 was working with sports

federations and cultural community associations

Johannesburg hosted 23 international association

meetings and is now ranked 2nd on the continent and

1 02nd in the world

The GCEB developed its first meeting planner guide,

capturing information in all five regions of 400 products and

key conference services

Attendance at trade shows throughout the year, IMEX

2014, and Meetings Africa 2015. These provided important

platforms for the GCEB to raise awareness of Gauteng as

a business events destination, in addition to delivering new

business contacts and opportunities Activities in the period

under review include:

Conferences, exhibitions and events supported:

Propelled by strategic collaboration between the GCEB, private

and public sector organisations, as well as well-respected

industry partners, significant growth in the Gauteng business

events sector during the 2014 fiscal year saw the province

welcome more than 40 OOO overseas MICE visitors, generating

over R600-million in MICE revenue. These achievements saw the

GCEB exceed its annual targets for both visitor numbers and

industry earnings. Europe was our largest source of MICE visitors,

followed by the Americas and then Asia.

In 2014/15 the GCEB supported a total of 63 conferences, ex

hibitions and events. i.e. 23 international events. nine national

conferences, 12 exhibitions, nine signature events and eight

community events.

Examples of conferences. exhibitions and events supported

in 2014:

CONFERENCES AND EXHIBITIONS I

SIGNATURE AND COMMUNITY EVENTS

Africa R ail/ Aviation Outlook Africa/ Africa Ports & Harbour Show

International Franchise Expo

International Mineralogical Association

Conference of International Association of Universities and

Colleges of Art. Design and Media

World Orchid Conference

SA Automotive Week

World Franchise Council

Total Concrete Expo

The aim of the Gauteng Department of Economic Development

is to radically transform, modernise and reindustrialise the

economy of Gauteng. Events have been identified as drivers of

economic development in Gauteng. ensuring that the province

creates world-class events that generate significant economic

benefits, attract global media coverage, have wide appeal to

both local/domestic and international participants, and have

socio-economic benefits by involving communities, creating

jobs, developing skills. involving SMMEs and impacting on the

province's infrastructure by improving roads, public spaces and

places. For example, the Standard Bank Joy of Jazz, Gauteng's

oldest jazz festival, has grown exponentially over the years, now

attracting over 25 OOO patrons over the duration of the festival.

The event has a youth development programme, Geleza Kleva,

which empowers young, upcoming musicians.

Impressively, international business events secured during

the year improved on room nights and forecasted economic

impacts due to increased delegate numbers.

Examples of confirmed business:

Public Relations World Congress

Africities Summit

World Congress on Healthy Ageing

African Union summit

Automechanika Johannesburg

World Cup - Women's epee fencing

Bouma Conexpo Africa

IIPT World Symposium

International Road Safety

World Energy Security

Discop Africa

Conferences & exhibitions for which bids were submitted in 2014, for future business:

World Universities Debate Championships 2017

International Conference on Rare Diseases and Orphan

Drugs 2018

Joburg Shopping Festival

Jo burg Art Week Fair

Spring Explosion

Showbiz Entertainment Arts Expo

Moretele Park Tribute Jazz Festival

Standard Bank Joy Jazz Festival

Go West!

Land Rover Africa Cup

Vaal River Meander Wine Route/Vaal River Carnival

Future Champions Cup

International Wood Protection 2019

Commonwealth Association of Polytechnics in Africa 201 8

The International Conference on Survivors of Rape 2016

Global Entrepreneurship Congress 2017

UFI Congress 2017

Digital Earth Summit 2017

COP 17 (conference on trade in endangered species)

Delegate boosting: During 2014, delegate-boosting activities were undertaken

for conferences and exhibitions to be held in Gauteng in the

coming years. The purpose of this activity was to promote

Gauteng as the host province for the next event, and also

raise awareness about options for extending a delegate's

stay to include pre- or post-touring experiences. To maximise

delegate attendance, the GCEB team plays an active role,

working alongside city bureaus, local hosts and conference or

exhibition organisers, through the delivery of delegate-boosting

initiatives and other marketing and promotional activities.

Familiarisations: In 2014, with the support of the SANCB and South African

Airways, 12 international familiarisations and 16 site visits were

held in Gauteng, during which key decision-makers were

hosted by GCEB staff (on some occasions in partnership

with the local host organisation and city), and were given a

comprehensive overview of the GCEB's business events offering,

in line with the requirements of their specific conference. This

was done to ensure that key decision-makers are shown the

premier suppliers of convention venues, exhibition centres,

accommodation establishments and tourism attractions in all

five regions of Gauteng. In all cases, hosted buyers and media

were impressed with Gauteng and its unique visitor offering.

Liaison with industry

Together with the SANCB, cities' convention bureaus and

tourism associations. eight successful stakeholder networking

events were co-ordinated during the year.

Meetings planner guide:

The GCEB developed its first meeting planner guide and

captured information in all five regions of over 400 products

and key conference services. It is a distinctive resource

for professional conference and events organisers. when

considering holding a conference or event in Gauteng. This is a

valuable tool that provides advice on how to interact with and

gain support from the GCEB team, and information on a wide

range of venues. accommodation. general services, wining and

dining. and the beautiful regional areas of Gauteng.

Membership:

The team continued to leverage off GCEB membership of the

International Conference and Convention Association (ICCA).

Destination Marketing Association International (DMAI), SAACI

and EXSA. These important relationships continue to offer real

opportunities for lead generation and in securing valuable bids.

Looking ahead:

This year's results show that Gauteng continues to grow

in popularity as a world-class business events destination,

attracting a high calibre of both national and international

meetings year on year, and improving its position in the

business events industry.

2.3.7.4 Leisure & Consumer Marketing

The Leisure & Consumer Marketing unit does not operate or

exist in a silo. but as a sub-unit within the Integrated Marketing

and Communications Unit (IMC) division of the GTA. and thus

works as a team within the overall work stream that includes

Destination Communications. Brand Management. Trade &

Convention and GCEB.

The previous year saw the marketing of the Gauteng Signature

Collection and Gauteng Hidden Gems. which are a collection

of all Gauteng's must-see, and iconic leisure experiences

through the consumer show programme. The consumer

show programme is an excellent way to meet face-to-face

with potential visitors and to provide destination awareness

!or Gauteng.Although consumer shows have become less

popular with consumers over the years, certain shows such as

the Gauteng Getaway Show, Gauteng Outdoor Show, Rand

Show and the Soweto Wine & Lifestyle Festival have brought a

number of good results to industry partners. These shows are

particularly effective when the local operators attend and are

able to sell their product directly to the consumer. The consumer

show programme also provides an excellent opportunity for

co-operative marketing, as the GTA often allocates additional

booth space for products. Consumer shows are assessed

on three key criteria: feedback from participating operators

(bookings. enquiries and overall perception of the show).

marketing exposure at the show (sponsorship opportunities.

show attendance and materials handed out). and actual

enquiries fielded by the GTA.


A number of key projects were undertaken as set out in the

operational plan for the 2014-15 financial year. all in support of

achieving the broader organisational, IMC and the consumer

and leisure marketing-specific objectives:

The consumer show programme

The Outdoor Eco Adventure and Travel Expo was particularly

effective when local operators attended and were able to sell

their product directly to consumers. The Outdoor Eco Expo is

an annual. national consumer show for all outdoor-product

suppliers. as well as travel and tourism-related marketers.

Presented in Johannesburg, the show offers the COHWHS,

Dinokeng and the GTA an opportunity to market new

and existing products and services directly to the relevant

consumer. The show attracts a high-quality audience of high

income earners who have a passion for adventure, travel and

the outdoors. This audience falls within the COHWHS, GTA and

Dinokeng-targeted tourism market (the Established market).

i.e. a large audience falling within the Living Standards

Measure (LSM) bracket of 7-10.

Gauteng Getaway Show

The Gauteng Getaway Show is an annual national

consumer show for all outdoor-product suppliers, as well

as travel and tourism-related marketers. It provides an

excellent opportunity for co-operative marketing, as the GTA

allocates additional booth and outside space for products.

The show also offers the GTA an opportunity to market new

and existing products and services directly to the relevant

consumer. The Getaway Show assists in increasing visitor

volumes. visitor spending and economic impact for the

destinations by developing awareness and preference.

In 2014. the show had more than 260 exhibitors and

welcomed 23 949 visitors through its doors.

The Rand Show

Unlike many other consumer purchases. tourism consumers

buy a destination ·experience· comprising places to visit,

places to stay and things to do. If Gauteng is to defend

its market share of visitors and increase visitors' length of

stay and spend, there must always be a collective effort

to ensure that the Gauteng brand collaborates with key

partners in the industry that are perceived to be generating

economic benefits for the province. The GTA therefore

played a leading role in the realisation of the Rand Show,

which provided the perfect marketing platform for it to

increase brand awareness of Gauteng. The GTA partnered

with the Rand Show as one of its endorsing sponsors.

Soweto Wine & Lifestyle Festival

The Soweto Wine & Lifestyle Festival celebrated l 0

years in 2014. This event took place at the University of

Johannesburg, Soweto Campus. The festival, which started

with a few hundred visitors tentatively trying wines, is now

attracting l O OOO visitors to the three-night event from across

South Africa and the world. With an economic impact

in excess of Rl 0-million in direct investment into Soweto.

made up of hotel accommodatior.i. travel hire, employment.

food and sundries, the event has had a significant impact

on the economic stimulation of the city of Soweto. In the

year under review, during the 10-year celebrations, the GTA

sponsored the Gauteng Taste of Africa Theatre Experience.

The Gauteng Taste of Africa featured Gauteng's top

restaurants, particularly from the Maboneng Precinct, in a

bid to drive traffic and business back to Maboneng while

showcasing Gauteng's finest in African cuisine.

Domestic tourism campaign

In most successful tourism destinations around the world,

the domestic market forms the backbone of the tourism

industry. In South Africa, as a result of our history, many

South Africans did not have the opportunity to travel within

their own country. and are therefore not accustomed to

tourism and do not participate readily in travel and tourism

to the extent that is possible. The Domestic Tourism Growth

Strategy (DTGS) also identified that the barrier to travel by

the majority of South Africans is the perception that travel

is expensive and not affordable. Domestic marketing will

remain the bedrock of our industry. The new segmentation

has been used to formulate the Sho't Left campaign, with

the focus on affordable, accessible packages geared

toward the new segments.

The purpose of the consumer and leisure unit was to address

the challenges of geographical spread and seasonality, which

offers opportunities for enhanced levels of domestic tourism.

The unit's main expected outcomes were to create tourism

campaigns with the aim of benefiting local communities;

creating a holiday culture; extending visits to friends and

relatives into tourism leisure, and marketing domestic leisure

to all major local markets. The GeePee Sho't Left campaign

implemented raised awareness of local travel. The campaign

was designed with the objective of encouraging South Africans

to see the unrivalled value that domestic travel delivers and

thereby overcoming the perception that:

Travel offers no real value

Travel is expensive

We need to disrupt the retail category

The GeePee Sho't Left campaign proposition is that there is

unrivalled fun to have everywhere in Gauteng.The campaign

is fully integrated, sustainable, unconventional, unexpected

and entertaining. Gauteng is presented to the consumer in

an inspiring and compelling fashion in the Sho't Left summer

campaign through strategic marketing partnerships with the

Gauteng Signature Collection (products), and using innovative

emerging marketing tools to reach new customers and

encourage repeat visits.

In response to the DGTS, the GTA placed emphasis on rolling out

the summer campaign, which was fully integrated with South

African Tourism's Sho't Left campaign.The campaign's critical

success resulted from the collaboration between the GTA and

industry partners (the Signature Collection products), who

ensured the availability of affordable packages and addressed

seasonality and geographic spread.Tourism advertising impacts

consumer perceptions of provinces in accidental yet positive

ways, and also generates significant economic impact by

driving visitation, with long-term potential for broader economic

development. The promotion of a destination cannot happen in

the absence of advertising.The GTA embarked on an integrated

advertising promotion through the following channels: Metro FM,

billboards, street poles, Gautrain escalators, screens,

in-flight magazine advertising, and using toll reach promotions in

partnership with South African Tourism as a platform to distribute

collateral at the major tollgates entering Gauteng.

2.3.7.5 Digital Marketing

The role of Digital Marketing is to utilise the most effective digital

media platforms to increase brand visibility, engage, attract and

retain unique visitors. The continuously increasing popularity of

various digital platforms, e.g. the Internet, mobile and tablets

and social media, in all phases of a traveller's conversion from

destination awareness to finally booking and then post-trip

sharing, makes e-marketing key in promoting destinations

to travellers.

From a destination marketing organisation's perspective, the

challenges and opportunities to reach and convert travellers

are both great. One of the challenges is to provide quality

content that matches travellers' needs and search behaviour.

This means not only drawing consumers to owned channels,

but being present and available on the travel and social

channels that are consulted during a traveller's information

gathering and decision-making phases. Marketers can no

longer broadcast company-centric messages to consumers;

instead, consumers will access various channels of information

on multiple platforms to meet their needs. The new consumer

is a demanding individual and the online travel environment

highly competitive.

Due to ever-changing needs and technologies, digital channels

need to be in a constant state of enhancement. As important

as new developments is maintenance, a critical success factor

often overlooked by marketers. Maintenance of existing content

and tools contribute to quality, building of trust and being able

to take advantage of new functionality, and has been key in the

achievement of our overall objectives.


For the period under review, the GTA implemented a strong

digital strategy that focused on increasing brand visibility in the

domestic and international tourist target market, by focusing on

and leveraging partnerships through events. Our strategy had

a strong focus on advocacy to reach the domestic market: we

identified key online influencers, based on their ability to amplify

the conversation with key audiences.

One of the highlights of our e-marketing work was the GeePee

Sho't Lett campaign, which ran from September 2014 until

March 2015. The campaign aimed to create awareness of the

signature experiences and hidden gems in Gauteng: position

Gauteng as a premier destination with many experiences

and a rich history; highlight and promote key events that

make the province a sought-after destination to visit over the

summer period; and encourage people to explore the region

of Gauteng while attending these events. The campaign

was centred around three signature events, which were

leveraged to promote the themed tourist maps, published on

the GTA website.The GeePee Sho't Lett campaign stimulated

engagement through competitions and produced an array

of multimedia content for social media platforms, including

custom-made videos and branded imagery. Part of the GeePee

Sho't Lett strategy involved utilising sponsored posts to increase

engagement on all social media platforms.

Following the successful completion of the campaign, the

GTA launched the GeePee Lifestyle campaign that focused

on smaller events strategically designed to grow the brand

domestically, by partnering with four key local event organisers

and influencers to drive organic conversations. The campaign's

main objectives were to create a buzz around locations, events,

lifestyle hubs and entertainment venues in Gauteng, and

increase brand visibility to domestic tourists.

Social media growth and engagement was a key focus for

e-marketing in the year under review, as witnessed by the

growth of the Gauteng social media properties. The GTA

Facebook page exceeded its target of 30 OOO likes and

achieved 60 OOO, backed by a strong bought media budget.

The GTA Twitter profile also exceeded the target of 6 OOO

followers with over 8 OOO, and the YouTube property's target of

80 OOO views was exceeded with over 142 OOO views.

The Gauteng Travel Guide mobile opp was launched at the

beginning of 2013 with great success, becoming the most

popular free travel opp in South Africa and achieving nearly

3 039 downloads by the end of 2014/15.

2.3.7.6 Trade Marketing

The purpose of the Trade Marketing unit is to increase leisure

visitor volume, length of stay, visitor spending and economic

impact for Destination Gauteng through the promotion and

distribution of the destination's travel products to the travel

trade. The main expected outcome from the period under

review was the implementation of a trade marketing strategy, in

order to engage optimally on the travel trade platform.

Tour operators, agents and other sales channels are critical

to the success of our tourism marketing initiatives. Travel

professionals who understand Gauteng experiences and

products will achieve greater success in selling our destination

to their customers. Travel and reservation agents and consumer

direct tour operators can recognise and influence Gauteng's

target customer and deliver the Gauteng brand message to

close the sale on Gauteng programmes.

The GTA Trade Relations team influences operators on how

to modify their existing product or how to communicate the

key motivators within that product, in ways that will most

resonate with their best target. During the period under

review it has worked with the travel trade to determine which

tourism products were packaged and market-ready, and then

promoted these aggressively to the trade through a variety of

marketing and sales initiatives.


The main activity during the period under review was the

implementation of a new trade marketing strategy, in order

to be able to engage optimally with the travel trade. In order

to develop awareness of Gauteng and enhance its appeal

as a recognised global competitor for leisure and business

travel, the promotional plan for the year under review has been

aligned mainly to South African Tourism co-funded events and

trade shows where provinces were invited to participate. These

events were mainly made up of international trade shows and

South African Tourism in-country roadshows.

Our support of the travel trade varied depending on the

market, but generally included the following activities:

Attending key travel trade marketplaces to meet with key

accounts and identify potential new travel trade partners

Providing destination awareness, education and ideas for

product marketing

Providing up-to-date product and planning information

Encouraging the travel trade to carry and promote

Gauteng products and experiences

Supporting familiarisation (FAM) tours for product managers

and sales agents, to increase their awareness and sales of

Gauteng travel experiences

Creating strategic co-operative marketing partnerships

and promotions, to enhance destination awareness and

generate sales

A number of trade resources were developed, including

promotional resources such as product information sheets. tour

planners. new product updates and sample itineraries. All of

these collateral pieces help to keep Gauteng top of mind with

the travel trade.

The GTA attended a number of key trade shows. marketplaces

and sales events to promote Gauteng as a group and

packaged tour destination. The GTA has taken a more strategic

approach by increasing sales calls and activities to ensure a

high rate of return. and has broadened its investment in key

markets. The GTA participated in the following trade shows:

Tourism lndaba (May 2014)

WTM (November 2014)

Roadshows are facilitated by South African Tourism to open

up key emerging markets. The province is represented at

the roadshows to share insights and promote the provincial

product offerings to the hosted trade and media. Participation

for 2014/15 is highlighted below:

SA Tourism China roadshow

SA Tourism India roadshow

Trade FAMs are an excellent way for the GTA to showcase

market-ready products to the travel trade and to enable

Gauteng's local tour operators to sell their products on the

international wholesale market. The GTA collaborates with South

African Tourism and the industry to co-host travel trade clients

on site visits of Gauteng. The GTA strengthened Gauteng's

profile through existing and new relationships with key trade

channel partners. The GTA hosted both Netherlands and India

travel agents, and presented new packaged tours to the group

during the period under review.

GOVERNANCE

3.1 INTRODUCTION

The GTA is established as a Schedule 3(c) Provincial Public

Entity in terms of the Public Finance Management Act (PFMA).

No. 1 of 1999.

The Gauteng Tourism Act, No. 18 of 1998, was the GTA's enabling

legislative framework until 5 February 2002. The Gauteng Tourism

Act, No. l O of 2001, then repealed the Gauteng Tourism Act. No.

18 of 1998. The GTA is therefore currently established in terms

of the Gauteng Tourism Act, No. l O of 2001. The promulgation

of the aforementioned Act was effectively a revision of the

previous enabling legislation. Such revision allowed for

applicable GTA policies, procedures and the delegation of

powers to be amended, for purposes of operational efficiency

and in compliance with national legislative frameworks.

The Gauteng Tourism Amendment Act, No. 3 of 2006, came into

effect on 7 June 2006. The Amendment Act provided (among

other amendments) that a Board of Directors would be

established as the accounting authority. The Board of Directors

was duly appointed on l February 2007.

The PFMA and Treasury regulations as applicable to Schedule

3(c) Provincial Public Entities. are adhered to by the GTA.

Such compliance has resulted in the development and

implementation of the following policies:

Supply-chain management policy

Credit card policy

Petrol card policy

Receivables policy

Asset management policy

Fraud prevention policy

Materiality policy

Investment policy

One of the most important legislative developments to take

place during the reporting period was the promulgation of

the new Tourism Act, No. 3 of 2014, on 16 June 2014. The new

Tourism Act repealed both the Tourism Act of 1993 and the

Tourism Second Amendment Act of 2000. It should be noted

that the Regulations for Tourist Guides, which were promulgated

in 1994 and 2001 respectively, will only be repealed once new

regulations are passed, a process currently under way.

The new Tourism Act, No. 3 of 2014, is important for the

following reasons:

It replaces the spontaneous creation and application of

non-legislative rules. thereby establishing order in a sector

It is a prerequisite for society to develop and set rules that

are enforceable and applicable for all. thereby creating an

enabling environment for future development and growth

The main aim of the new Tourism Act. No. 3 of 2014. is therefore

to provide for the development and promotion of sustainable

tourism for the social, economic and environmental benefit of

all South African citizens.

Its key objectives are to promote the practice of responsible

tourism. provide for the effective marketing of South Africa

domestically and internationally, promote quality tourism

products and services, encourage growth and development in

the sector, and advance effective inter-governmental relations

in developing and managing tourism.

To this end, the Act now includes the National Tourism

Sector Strategy as part of the legislative framework for the

management and development of tourism. The Act furthermore

provides for knowledge and information management.

monitoring and evaluation. and makes provision for the calling

for information from tourism businesses. The intention of these

provisions is aimed at fostering better understanding of the

sector and at improving decision-making. It should be noted

that the provision of information is voluntary, and allows for

incentives for businesses that participate.

Provision is also made for the issuing of norms and standards

to standardise the management and development of tourism.

Provision is also made for the determination of codes of good

practice as guidelines for the management of tourism. The Act

also aims to regulate the tourist guide profession.

The GTA therefore intends to revise the Gauteng Tourism Act, No.

10 of 2001, during the next reporting period, in order to ensure

better alignment with the provisions of the new Tourism Act, No.

3 of 2014.

3.2 EXECUTIVE AUTHORITY

The MEC for Economic Development appointed 1 O new Board

members with effect from 1 November 2014 until 31 October

2017. The former chairperson of the GTA Board was retained.

and nine new Board members were appointed.An induction

into the affairs of the GTA was given to new Board members on

2 and 3 December 2014.

A shareholder compact was entered into between the MEC for

Economic Development as the relevant executive authority, and

the GTA. This document ensures that an effective leadership

and governance framework outlines the clarity of roles between

the MEC and the GTA as well as the alignment of strategy,

a clear mandate and performance targets for the GTA. and

effective monitoring conducted by the executive authority.

The Executive Council of the Gauteng Provincial Government

took a decision in 2010 that the GTA, COHWHS and Dinokeng

Projects should be merged into a tourism promotion agency.

The Board gave extensive attention to this matter during

the financial year and ensured that it complied with all the

requirements determined by the Gauteng Department of

Economic Development.

3.3 THE ACCOUNTING AUTHORITY - THE GTA

Introduction of Board

From its initial establishment, a Board of Directors who were

duly appointed by the MEC for Finance and Economic Affairs

governed the GTA. On 5 February 2002, in accordance with the

provisions of the Gauteng Tourism Act, No. l O of 2001, the CEO

was designated as the accounting authority for the GTA. The

MEC was designated as the executive authority and advised by

an advisory committee, while the GTA also established an audit

committee and a procurement committee.

The Gauteng Tourism Amendment Act, No. 3 of 2006, ensured

that as of l February 2007, the responsibilities of the accounting

authority were designated to the new Board of Directors. This

Board became fully functional in the 2007 /8 financial years. At

the first Board meeting held on 22 May 2007, a resolution was

passed that each current and future Board member would sign

a declaration of interest at every Board meeting.

The Board therefore:

Retains full control and oversight in respect of the entity, its

plans and strategy

Bears responsibility for strategy implementation, compliance

with internal policies, external laws and regulations, effective

risk management and performance measurement

Is additionally responsible for transparency and effective

communication, both internally and externally, by the GTA

The roles and responsibilities of the Board are detailed in the

approved GTA Board Charter and are as follows:

To provide effective corporate governance that involves

relationships between the DED, the GTA and other relevant

stakeholders in terms of the Gauteng Tourism Amendment

Act, No. 3 of 2006

Manage the business and affairs of the GTA. This includes

setting strategic direction and goals, and monitoring

management's implementation of that strategy. Additionally,

this function entails the monitoring and review of the GTA's

corporate strategy, major plans of action, risk policy, annual

budgets and business plans. The Board must regularly

identify key risk areas and key performance indicators,

based on both financial and non-financial aspects

Ensure that the GTA is fully aware of and complies with

applicable laws, regulations and government policies

Ensure that they have unrestricted access to accurate,

relevant and timely information of the GTA

Act on a fully informed basis, in good faith, with diligence,

skill and care and in the best interests of the GTA, while

taking into account the interests of all stakeholders,

including employees, creditors, customers, suppliers and

local communities

Closely monitor the process of disclosure and

communication, and exercise objective judgment on the

affairs of the GTA, independent of management

Maintain the confidentiality of all confidential matters of the

GTA, as individual members of the Board

Monitor and manage potential conflicts of interest of

management and Board members. The Board as a

whole and each individual member may not accept any

payment of commission, any form of bribe, gift or profit for

him- or herself

Develop a clear definition of the levels of materiality or

sensitivity in order to determine the scope of the delegation

of authority, as well as reserve specific powers and authority

solely for itself. Delegated authority must be recorded in

writing and evaluated on a regular basis

Ensure that financial statements are prepared for each

financial year, which fairly represent the affairs of the GTA

Appraise the performance of the chairperson on an annual

basis. The Board should also on an annual basis review

and evaluate its mix of skill, experience and other qualities

in order to assess the effectiveness of the entire Board,

its committees and the contribution of each individual

member during the entire term of office

Maintain the highest standards of integrity, accountability

and responsibility, and ensure that it finds a fair balance

between conforming to corporate governance principles

and the performance of the GTA

Doing all that is necessary or expedient to perform its

functions, including -

Acquiring or disposing of any right in or to property, but

ownership in immovable property may be acquired or

disposed of only with the consent of the MEC

Opening and operating banking accounts in the

name of the GTA

Investing any of the GTA's money

Insure the GTA against any loss, damage or risk or any

liability it may incur in the application of the Gauteng

Tourism Amendment Act, No. 3 of 2006

Perform legal acts, including acts in association with

or on behalf of any other person or organ of state

Conclude agreements with organs of state, and other

persons

Institute or defend any legal action.

It is important to note that the Board may delegate, in writing,

any of its powers to the chief executive oficer.

Board Charter

The GTA Board Charter was reviewed and approved by the

Board on 31 January 2014, and by the new Board on 29

January 2015. The Board Charter makes provision for the

following areas:

Structure and composition of the Board

Roles and responsibilities of the chairperson

Operating procedures of the Board

Responsibilities of the Board

Delegation of authority

Term of office

Disqualification and vacation of office

Conditions of appointment

Fees

Company policies

Conflict of interest

GTA committees

Review of charter

The GTA Board Charter is reviewed on an annual basis. The

stipulations in the GTA Board Charter have been implemented.

Composition of the Board

Section 5.A of the Gauteng Tourism Amendment Act, No. 3 of

2006. makes provision for the MEC to appoint a Board of not

less than seven (7) and not more than ten (l 0) members. The

MEC for Economic Development appointed l O Board members

for the period l February 2007 to 28 February 2010. Some

members resigned. one member died, and the tenure of those

Board members who resided outside the Gauteng province

was not extended. Due to the pending merger of the GTA with

the COHWHS and Dinokeng Projects, new Board members were

not appointed, and the tenure of some Board members was

extended until 30 October 2014. The Board therefore initially

consisted of five members during the reporting period.

The following Board members were appointed during 2014/15

(l April-30 October 2014):

Mr Khehla Mthembu (chairperson)

Mr Mthembu was appointed by the MEC for Economic

Development from l February 2007 and his appointment

was extended until 31 October 2014. Mr Mthembu was also

reappointed as the chairperson by the MEC for Economic

Development for the period l November 2014 until

31 October 201 7.

Mr Mthembu obtained a Bachelor of Commerce degree from

Unisa,was a member of the MAP programme from the Wits

Business School. and attended management development

diploma programmes from the London School of Economics,

University of London. Harvard Business School and INSEAD

in Paris.

Mr Mthembu was interaliachairperson of Sun International and

group executive of Tourvest Holdings Ltd, and gained extensive

experience in the hospitality industry, which is a vital component

in the tourism field. He is now the group executive director of

Manoja Leisure Group. which focuses on leisure, hospitality and

travel. He is au faitwith the various tourism institutions and how

they relate to each other. Mr Mthembu has been instrumental in

forging close working relationships and partnerships between

the travel and tourism industry and the GTA.

He serves on the following Boards:

Tourvest Holdings Shareholder/Director

Guam Tourism Shareholder /Director

Wyandanch Group Shareholder /Director

Wyandanch Technical Group Shareholder/Director

Manoja Consulting Shareholder/Director

Manoja Leisure Shareholder/Director

Ms Nomaxabiso Majokweni (deputy chairperson)

Ms Makwojeni was appointed by the MEC for Economic

Development from l February 2007 and her appointment was

extended until 31 October 2014. Ms Majokweni obtained a

Bachelor of Commerce degree from the University of Transkei,

attended an industrial relations development programme

at the University of Stellenbosch Business School. and also a

breakthrough programme for senior executives at the Institute

of Management Development in Switzerland. Ms Majokweni

also studied to obtain an executive MBA at the University of

Cape Town's Graduate School of Business.

Ms Majokweni serves on the following Boards as a

non-executive director:

Gibb Holdings

StauchVoster Architects

Black Lite Solar Energy

Mr David Moshapalo

Mr Moshapalo was appointed by the MEC for Economic

Development from l August 2008 until 31 October 2014.

Mr Moshapalo attended training in modern management

at Caltex Oil (SA) (Pty) Ltd, the New Leadership Programme

at the Arthur D Little School of Management in Cambridge,

Massachusetts. industrial relations, human resources

development and personnel management in Tokyo, and

the ILO Strategic Management of Employer's Organisation in

English Speaking Africa. in Turin. Mr Moshapalo serves on a

number of Boards:

Advatrix Investment (Ply) Ltd

Advacom Investments (Ply) Ltd

Director

Director

Bombela Concession Company (Ply) Ltd Director

Bombela Turnkey Contractor (Ply) Ltd Director

Business Partners (Ply) Ltd

Business Venture Investments

No. 927 (pty) Ltd

Director

Director

lnduna Tippers (pty) Ltd Director

lsithimela Advertising Company (Ply) Ltd Director

lsithimela ICT Company (Ply) Ltd Director

lsithemela Property Development Director

Company (pty) Ltd

lsithimela Rail Maintenance (Ply) Ltd Director

lsithimela Rail Services (Ply) Ltd Director I

Chairman

Lakeshore Trading 36 CC Member

Lyncon Construction (Ply) Ltd Director

Sota Foundation (Association Director

Incorporated underSection 21)

SPG Specialised Security Services

(Ply) Ltd

Strategic Partners Group (Ply) Ltd

Strategic Partners Group

Corporate Investments (Ply) Ltd

Talamo Fleet Logistics Investments

(Ply) Ltd

Director

Director/

Shareholder

Director

Director

TSM Business Enterprises (Ply) Ltd Member

Withmore Investments l (Ply) Ltd Director

Kumnandi Investment Holdings (Ply) Ltd Director

RiverportTrading 58 Director

SPG Concessions (Ply) Ltd Director

Strategic Partners Group Construction Director

(pty) Ltd

Strategic Partners Group Investments Director

and Operations (Ply) Ltd

Veteran Council (Association Director

Incorporated under Section 21)

Ms Moipone Molotsi

Ms Molotsi was appointed by the MEC for Economic

Development from l February 2007 and extended until 31

October 2014. Ms Molotsi has a BA Education degree and a

post-graduate diploma in Management from Wits University,

and a Master's degree in Business Administration from De

Montfort University, Leicester.

Ms Molotsi serves on the following Boards:

Gauteng Film Commission

Basuoa Organisation

Germiston Fastener

Mr Leo Makgamathe

Director /Member

Member

Member/85% ownership

Mr Makgamathe was appointed by the MEC for Economic

Development from l March 2010 until 31 October 2014. Mr

Makgamathe obtained his 0-Levels and HIGCSE from the

International School of South Africa, a BA degree in Political

Studies and Economic Studies from the University of the

Witwatersrand, a post-graduate diploma in Management at

the University of Cape Town's Graduate School of Business, and

registered for a Master's degree in Development Finance at the

University of Stellenbosch Business School.

The MEC for Economic Development appointed the following

Board members with effect from l November 2014 until 31

October 2017:

Mr Khehla Mthembu (chairperson)

Mr Mthembu was appointed by the MEC for Economic

Development from l February 2007 and his appointment

was extended until 31 October 2014. Mr Mthembu was also

reappointed as the chairperson by the MEC for Economic

Development for the period l November 2014 until

31 October 2017.

Mr Mthembu obtained a Bachelor of Commerce degree from

Unisa; was a member of the MAP programme from the Wits

Business School, and attended management development

diploma programmes from the London School of Economics,

University of London, Harvard Business School and INSEAD

in Paris.

Mr Mthembu was infer a/iachairperson of Sun International and

group executive of Tourvest Holdings Ltd, and gained extensive

experience in the hospitality industry, which is a vital component

in the tourism field. He is now the group executive director of

Manoja Leisure Group, which focuses on leisure. hospitality and

travel. He is au faitwith the various tourism institutions and how

they relate to each other. Mr Mthembu has been instrumental in

forging close working relationships and partnerships between

the travel and tourism industry and the GTA.

He serves on the following Boards:

Tourvest Holdings Shareholder/Director

Guam Tourism Shareholder /Director

Wyandanch Group

Wyandanch Technical Group

Manoja Consulting

Manoja Leisure

Shareholder /Director




Dr Lulama Zitha (deputy chairperson)

Dr Zitha was appointed deputy chairperson of the GTA Board

by the MEC for Economic Development. She is a public finance

consultant. who has extensive experience in public finance

and economic development. She is currently the managing

director of Zilule Business Enterprise. her own management

consulting company. Her experience includes acting as

GesellschaftTechnische Zusammenarbeit (GTZ) adviser to the

National Treasury. This is an international co-operation enterprise

for sustainable development with worldwide operations that

is based in Eschborn. near Frankfurt am Main, and supports

the German government in achieving its development policy

objectives. It provides viable. forward-looking solutions for

political, economic, ecological and social development in

a globalised world. Working under difficult conditions. GTZ

promotes complex reforms and change processes. She was

also instrumental in implementing financial management

reforms for municipalities in South Africa. Dr Zitha is the former

chairperson of the Central Johannesburg Further Education

Training College.

She serves on the following Boards:

Zilule Business Enterprise

Bothakga Burrow

Ms Moroesi Chiloane

Director

Director

Ms Chiloane has a Master's degree in Management and Public

Development. and is in the process of obtaining her doctorate

in this field. She has extensive experience in the education

sector and is passionate about developing learners. Her

experience is beneficial particularly with regard to training and

development programmes.

Ms Chiloane serves on the following Board:

Buvhezi Trading 755cc

Ms Khusela Sangoni

Ms Sangoni has an in-depth and intimate understanding of

Gauteng Province. having served for six years as chief director

within the GPG. She was also an executive responsible for

business relations at the Careways Group, managing numerous

blue-chip clients including Volkswagen SA. De Beers. SAB and

Transnet. She has also served as a member of the audit and

risk committee of Joburg Metrobus. a member of the Board

for the same entity, and a trustee on Sanlam's Ubuntu Botho

Trust. Ms Sangoni is currently serving as the head of media

relations in the ANC's Department of Information and Publicity,

and is responsible for providing strategic communication

counsel to the National Executive Committee of the ANC

as well as building and maintaining relationships between

the organisation. the media and other key stakeholders. Ms

Sangoni's well-rounded skills in governance. marketing

and tourism promotion, social activism and strategic

management will make an invaluable contribution to the GTA

and the province.

Ms Sangoni serves on the following boards:

Brand Jabulani Shareholder/Director

Elethu Consulting

Lavela Media

Joburg Metrobus

Mr Republic Monakedi



Director

Mr Monakedi has served in several senior management

positions in the public sector for the past 16 years. He started

his management career as head of the Limpopo Youth

Commission. and was appointed municipal manager of

the Ephraim Mogale Local Municipality in 2007. He has both

theoretical and practical understanding of key management

issues such as financial management. marketing, strategic

planning, economic development and capital resources

management. Mr Monakedi has served on the Northern

Transvaal Training Trust Board, the Limpopo Development

Agency Board and the Risima Housing Finance Board. He has

practical experience of governance at executive levels.

Mr Monakedi's Master's degree in Development Planning was

based on tourism.

Mr Monakedi serves on the following Board:

Risima Housing Finance Corporation Director

Ms Nomusa Mufamadi

(chairperson of the audit and risk committee)

Ms Mufamadi served as the deputy chairperson of the

Gauteng Liquor Board from 2010 until 30 September 2014. She

has extensive experience in forensic auditing, and the auditing

of developing and entrepreneurial businesses. parastatals, and

listed and unlisted companies. She also has experience in the

preparation and auditing of annual financial statements. tax

consulting and computation for audit clients.

Ms Mufamadi serves on the following Boards:

Mululamisi Mining

Hampfuna Mining

Magase Project Management

Sasas Bakery

Anysong Trading

Mr Happy Ntshingila

Mr Ntshingila recently vacated his position as chief executive

officer of SuperSport International in order to concentrate on

his various business ventures. Before then, he spent six years

as chief marketing and communications officer at ABSA

the largest retail bank in South Africa by customer numbers.

Three years ago, he was appointed the deputy chairperson

of BrandSA by the State President. and he also serves on

Communications Minister Faith Muthambi's Communications

Task Force. In addition, he is a specialist marketing consultant

for the Multichoice Group. Mr Ntshingila began his working

career in 1984, as a sales representative at Unilever. He worked

his way up to marketing assistant before joining IBM as editor

of IBM SA News. He was later promoted to media liaison officer

and communications specialist. From there, Mr Ntshingila

moved to Tiger Oats as PR manager and then to Ogilvy &

Mather as an account manager. At Ogilvy, he worked on

true South African brands such as Joko Tea, Royco, Mrs Ball's

chutney, Tastic rice and Steers.

Mr Ntshingila serves on the following Boards:

Piguet Investments 1016

Createur Investments

Africa Cup of Nations 2013 Local Organising

Committee South Arica

Mavuno Holdings

KND Holdings

Wavelength 49

Freefall Information Logistics

H&R Washirika

Ujiri

Ujiri Mining

Ms Puleng Ratlabala

Ms Ratlabala is the nominee of the Gauteng Department of

Economic Development. She has been in the public service

since 1998 and has held various portfolios within human

resources management and development disciplines within

the Gauteng Provincial Government. She has also served on

the Gauteng Youth Commission, responsible for human capital

management. Currently, Ms Ratlabala is the executive head of

human capital management within the Gauteng Department

of Economic Development. Ms Ratlabala holds a BA degree,

a BA (Honours) degree, as well as Advanced Management

Development Programme and Public Management certificates.

She brings to the Board a variety of skills and competencies

as a dedicated and conscientious administrator in the areas

of strategy development, policy formulation and information

systems. Ms Ratlabala serves on no other Board.

Ms Muditambi Ravele

Ms Ravele has extensive knowledge and experience in the

field of sport tourism, as former head of sport marketing and

sponsorships at the Tshwane University ofTechnology, general

manager of the Premier Soccer League, marketing and

corporate communications. Her current position in Masingo

Business Management focuses on new business, sports

consulting, and advisory service and strategic planning. Ms

Ravele is the owner ofThe Journey Sport Marketing and Events

Company, Masingo Management and also the founder and

chairperson of the SA Women and Sport Foundation. She

also has interests in the Laureus Sport for Good Foundation

(South Africa), Pack 'n Stack and the National Education Trust

(Vhembe District) Board, is the chairperson of Boxing South

Africa, and a sport and recreation distribution agent for the

National Lotteries Board.

Ms Ravele serves on the following Boards:

The Journey Marketing

Masingo Business Management

Mr Mxolisi Zwane

Mr Zwane is a distinguished attorney and businessman, with

extensive experience in Constitutional and corporate law.

Having been admitted as an attorney in 1997, his expertise in

these fields will allow him to provide legal counsel to the Board.

Mr Zwane is the current president of the Foundation for Business

and Consumer Services (FABCOS), which is an association of

small business entrepreneurs. He is also the head of policy for

the Black Business Council, which is testimony to his knowledge

and commitment to small business development. He has

served on numerous Boards of Directors in private and public

entities, and brings along a wealth of experience on matters of

corporate governance.

Mr Zwane serves on the following Board as chief operating officer:

Maluleke Seriti Makume Matlala Inc.

Ms Dawn Robertson

Ms Robertson was appointed chief executive officer of the GTA

in October 2010, and is the only non-executive Board member.

Ms Robertson holds a BA (Fine Arts) degree, HOE and Bachelor

of Education from the University of Natal. Ms Robertson is

a highly experienced and astute strategic manager with

a verifiable record of accomplishment in various spheres of

government, specifically in the areas of sport. the arts. culture

and heritage, tourism and the creative industries. She lectured in

Arts Education at the University of Natal before being appointed

head of Arts Education at the National Department of Arts and

Culture in 1999.As programme director of Create SA (2002-2005)

she headed up the dynamic team responsible for the Creative

Industries National Skills Development Initiative. She also served

as chief curator at Museum Africa in Johannesburg. In 2006 she

was appointed head of the Gauteng Department of Sport. Arts.

Culture and Recreation. and one of her core responsibilities was

the co-ordination of the Gauteng 2010 technical task team for

the FIFA 2010 World Cup. Following the World Cup, in July 2010

she was appointed as the chief executive officer of the GTA.

K Mthembu (chairperson)[ N Majokweni

I D Moshapalo

M MolotsiL Makgamathe

Bid acquisition committee

I

+

Officials. who were appointed by the CEO. fulfilled the

functions of this committee. As per the delegations of authority,

expenditure above R2-million was submitted to the Board

for approval.

5

5

5

5

Ms Robertson currently serves on the following boards:

Gillian Bickell Director

Pehemida Trust (family) Trustee

Committees

The Board has established the following committees in order to

enhance its effectiveness:

Audit committee

Bid acquisition committee

Remuneration committee

Destination marketing committee

Destination management committee

Merger committee

---+---

+

Remunerations committee

3

2

4

The functions of the remunerations committee were

incorporated into the merger committee.

DESTINATION MARKETING COMMITTEE

N Majokweni (chairperson)D MoshapaloL Makgamathe

--2

2

2

DESTINATION MANAGEMENT COMMITTEE

2

2

2

2

2 -----�

I D Moshapalo L Makgamathe

., Ii,/, 'Ill' K Mthembu (chairperson)

L Zitha r M Chiloane

S Monakedi

N Mufamadi

H Ntshingila

P Ratlabala

M Ravele

K Sangoni

MZwane

P Ratlabala (chairperson) K Mthembu M Chiloane

M Zwane

5

5

THE NEW BOARD ESTABLISHED THE FOLLOWING COMMITTEES ON 2 AND 3 DECEMBER 2014:

-

- ----

�

3

3

3

3

3

3

3

3

3

3

ii'&

-

-

- -

MERGER AND TRANSFORMATION COMMITTEE

DESTINATION MARKETING COMMITTEE

�u

-

-r-

3

4

s 'mlail

3

2

3

3

3

2

2

3

2

2

0

---Dr L Zitha (chairperson) I 0 H Ntshingila I 0

��-+��-+-��

KSangoni��'� ��- O

H Ntshingila (chairperson) M Ravele K Mthembu

K Mthembu (chairperson)

TOWNSHIP TOURISM REVITALISATION COMMITTEE

0

0

0

0

0 0

0

3.4. RISK MANAGEMENT

The GTA performs an annual risk assessment to determine the

effectiveness of its risk management strategy, and to identify

new and emerging risks. The senior manager conducts a

monthly review of the risks identified, and the internal auditors

evaluate these on a quarterly basis.

The audit and risk committee advises management on the

overall system of risk management. particularly the mitigation

of unacceptable levels of risk and also independently monitors

the effectiveness of the system of risk management with the

assistance of the internal auditors.

3.5 INTERNAL CONTROL UNIT

The internal audit control function was outsourced to

Phandahanu Forensic Consulting.

3.6 INTERNAL AUDIT AND AUDIT COMMITTEES

Audit committee (until 31 October 2014)

According to the Public Finance Management. No. 1 of

1999 as amended (PFMA). the accounting authority of the

GTA is required to ensure that the entity has and maintains

effective, efficient and transparent systems of financial and risk

management and internal controls.

Treasury Regulations 27 .2. 7 require that the entity prepare

a three-year strategic internal audit plan. based on the

assessment of key areas of risk with regard to its current

operations and those proposed in its strategic plan and its risk

management strategy. This should be done in consultation with,

and by approval of, the audit committee.

The Treasury regulations further state that an annual risk

assessment be conducted to take cognisance of the changing

risk profile of an entity.

Phandahanu Forensic Consulting was appointed to provide

internal audit services to the GTA and has thus been managing

the function for the duration of the financial year.

Senior management and the internal auditors developed a

2014/ 15 risk register. which was approved by the Board on 27

March 2014. A three-year rolling internal audit plan was based

on the risks identified. and the following internal audits were

conducted during 2014/15:

Quarter l performance information

Alignment of approved strategic and annual performance

plan for 2013/ 14 to performance report indicators

Implementation of performance information

management framework

Review the description of targets in the performance plan

to ensure that they are aligned to simple. measurable,

attainable, realistic and timely (SMART) criteria

Review the process used to collate the supporting

information and provide an assessment of the

sufficiency and reliability of the information (testing of proof

of evidence)

Research and Strategy

Implementation of the research strategy (framework)

Joint assessment and determination of individual business

units· research needs

Dissemination and implementation of research results to all

stakeholders with action plans

Contracts management - legal compliance

Destination Management

Tour guides registration

Project management within training

Finance

Revenue and expenditure

Travel and subsistence

Cash and bank

Asset management

Financial reporting

Supply chain management

Corporate Service

Performance management

Recruitment and promotions

Training and development

Leave management

Conventions and Events

Evaluation of the business plan and convention strategy

Execution of the convention strategy

Management of events portal

Responsible Tourism

Implementation of the responsible tourism framework

Regional Tourism

Existence of updated institutional framework and

implementation thereof

Implementation of the stakeholder engagement plan

Quarter 2 performance information


information, and provide an assessment of the

sufficiency and reliability of the information (testing of

proof of evidence)

Quarter 3 performance information




proof of evidence)

Follow up all audit action plans

Follow-up on status of implementation of action plans

addressing audit issues identified

Quarter 4 Performance Information




proof of evidence)

The following areas are considered during the quarterly

meetings of the audit committee:

Governance (Treasury regulations, updating of policies)

Financial statements

Internal audit reports

Risk reports

Performance reports

The audit committee also considered the 2014/15 strategic

plan, annual performance plan and budget, for approval by

the Board. The 2013/14 annual report and financial statements

were also submitted to the audit committee for perusal and

submission to the Board for adoption.

In addition to the members of the audit committee who

were appointed by the Board, the audit committee is also

attended by the CEO. chief financial officer, and internal and

external auditors. Due to the low number of Board members

(pending the finalisation of the merger of the GTA, COHWHS

and Dinokeng Projects). the audit committee comprised two

members, one of whom was the chairperson of the Board.

The committee was cognisant that it was not considered

best governance practice for the chairperson of the Board

to serve on the audit committee. To ensure objectivity, the

director: financial management in the Gauteng Department

of Economic Development was co-opted as an independent

member of the audit committee.

•

•

The audit committee consisted of the members listed

hereunder and met six times during the year under review:

Ms M Molotsi - chairperson (until Oct 2014)

Mr S Mthembu (until Dec 2014)

Ms B Mbolekwa (until Oct 2014)

Ms N Mufamadi - chairperson (from Dec 2014)

Mr R Monakedi (from Dec 2014)

Mr M Zwane (from Dec 2014)

3.7 COMPLIANCE WITH LAWS AND REGULATIONS

The GTA Board supports the principles of the King Ill Report

on Corporate Governance for South Africa and where

applicable and practical, implements these principles.

Responsible corporate citizenship and sound governance

practices remain key priorities of the Board, its committees and

management. Compliance with the policies, procedures and

applicable legislation is strictly monitored. In order to improve

on internal controls, various policies and procedures were also

implemented. The audit committee has assisted management

in fulfilling its oversight responsibility to the statutory process by

monitoring compliance with laws and regulations, the system of

internal controls over pre-determined objectives, and the code

of ethics and business conduct. Relevant recommendations

are reflected in the minutes of the audit committee. All

applicable legislation regarding financial matters, financial

management and other applicable matters have therefore

been complied with.

3.8 FRAUD AND CORRUPTION

A fraud prevention plan has been developed and finalised,

and implementation is ongoing. Fraud and corruption matters

are reported to the National Anti-Corruption Hotline on

0800 701 701. This service is manned by a professional external

independent party, which provides a 24-hour professional

service available in five official languages. This ensures that the

reporter can remain anonymous should he/she so wish. The

reports from the hotline are referred to the CEO, in writing, for

investigation and appropriate responses. No matters referring to

the GTA were reported to the National Anti-Corruption Hotline in

the 2014/2015 financial year

3.9 MINIMISING CONFLICT OF INTEREST

All staff members sign annual declarations relating to any

conflicts of interest. At all procurement-related meetings relevant

committee members are likewise required to sign declarations

of interest. Board and committee members also provide

assurance of impartiality by declaring their interests in writing at

every Board and committee meeting.

3.10. CODE OF CONDUCT

When cases of misconduct occur, these are identified and

dealt with swiftly. It is the duty of every employee to report to his/

her manager any incident that is suspected of being a breach

of conduct, whether or not it is related to his or her own area of

work. The GTA also complies with the following parameters in

respect of enforcing the code of conduct.

Unlawful or criminal activity is referred to the South African

Police Service immediately, to be dealt with in accordance

with due legal process

Breaches of conduct falling short of illegal activity are dealt

with in accordance with the GTA Code and Disciplinary

Procedure. appropriate to the seriousness of the offence

and focused on correcting the conduct of employees. while

also safeguarding the best interests of the public

In applying the principles of breach of conduct, the

entity assesses the seriousness of the alleged misconduct

by considering:

a) The actual or potential impact of the alleged misconduct

on the work of the entity. the employee's component and

colleagues. and the public

b) The nature of the employee's work and responsibilities

c) The circumstances in which the alleged misconduct

took place

Whatever the nature of the breach of conduct, procedures for

dealing with the cases are swift, fair, equitable and effective.

3.11 HEALTH, SAFETY AND ENVIRONMENTAL ISSUES

The GTA ensures that there is compliance with the

Occupational Health and Safety Act, No. 85 of 1993. The GTA

therefore aims to provide for the health and safety of persons

in connection with the activities of all persons within the

work environment. The GTA has appointed Scott-Safe as its

occupational health and safety compliance agency. Scott

Safe specialises in the performance of safety consultancy.

Such appointment has ensured that the GTA takes a holistic

approach in ensuring that health and safety becomes

an integral part of the organisational structure and

business priorities.

Scott-Safe provides the entity with assurance through

occupational health and safety legal compliance audits

and inspections. The compliance status is monitored through

quarterly inspections and meetings to ensure that identified

potential contraventions are managed and resolved. Quarterly

reports are then developed to record all incidents, as well as

the GTA's compliance status.

3.12 SOCIAL RESPONSIBILITY

Staff members have embarked upon a staff-funded social

responsibility initiative named Knitting for Mandela.The concept

is simple and involves blankets being knitted or crocheted

by staff members and then handed out to the needy on

Nelson Mandela International Day. Although no blankets were

handed out last year, staff donated new/old clothing, shoes,

used laptops, used furniture, perishable food items, etc. and

presented to Margaret Mcingana Community Development in

Jabulani, Soweto.

HUMAN RESOURCE MANAGEMENT

The Human Resource Management unit provides effective

leadership, strategic management, recruitment and selection

of suitable candidates, compensation, performance

management, employee relations, training and development

of employees in terms of the individual personal development

plans and support in accordance with the relevant legislation,

regulations and policies to ensure appropriate human

resources services across the value chain.

HR's priorities set for the year under review were to develop the

human resources strategy to align its plans and strategies with

the GTA's objectives, and to ensure that the skills necessary for

the organisation's success were sourced.

The employee performance management framework was

successfully implemented. All employees signed performance

contracts. Performance appraisals were conducted and

employees were remunerated in accordance with their

individual performance assessments.

k:

Employee wellness programmes were implemented in terms of

approved plans. Individual cases were dealt with on their merits.

On 27 May 2014, Wellness Day was celebrated and employees

were given the opportunity to undergo health checks with

different medical professionals.

In the year under review, 23 human resources policies were

reviewed and a new human resources strategy developed and

approved by the GTA Board.

The GTA managed to support 19 interns in terms of work

experience and hours to assist them to graduate in Tourism

Management. Employees updated their individual personal

development plans, which were taken into consideration when

training programmes were developed and implemented.

The GTA's study assistance scheme is ongoing, and eight

staff members were assisted through this scheme during the

period under review. One employee also attended a five-day

stakeholder engagement course, and three attended other

relevant short courses.

Due to the merger process of the GTA COHWHS and Dinokeng,

the organisation lost critical skills through resignations and

operated with reduced human resources due to a moratorium

that was placed on the filling of vacant posts. Staff morale was

also negatively impacted in the year under review. The unit also

performed without HR manager and officer skills, which made it

more difficult and led to reliance on outsourced services.

4.2 HUMAN RESOURCE OVERSIGHT STATISTICS

Two employees resigned and one employee's employment

contract was terminated due to misconduct.

Labour relations - misconduct and

The GTA entered into arbitration with the CCMA and resolved a

misconduct matter, where the HR manager had misrepresented

herself regarding false qualifications. The incumbent 's contract

of employment was since terminated on 1 September 2014.

Equity target and employment:

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

A C w A C w MALE

Top management 0 0 0 0 0 0 0 0

Senior management 4 0 0 0 0 0 0

Professionally qualified and experienced specialists 2 0 8 0 2 3 0

and mid-management

Skilled technical and academically qualified 6 0 0 0 9 0 3 0 0

workers, junior management. supervisors,

foremen and superintendents

Semi-skilled and discretionary decision-making 9 0 0 0 24 3 0 0

Unskilled and defined decision-making 0 0 0 0 0 0 0 0

TOTAL PERMANENT 21 44 4 6 3 0

Temporary employees 25 0 0 0 52 0 0

GRAND TOTAL 46 96 5 6 4 0

FEMALE

0

0

0 17

0 18

0 37

0

0 81

0 79

0 160

Total number of employees with disabilities only in each of the following occupational levels.

Note: A = Africans. C = coloureds. I = Indians and W = whites

A C w A .c w

Top management 0 0 0 0 0 0 0 0

Senior management 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists 0 0 0 0 0 0 0

and mid-monogement

Skilled technical and academically qualified 0 0 0 0 0 0 0 0

workers. junior management. supervisors.

foremen and superintendents

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

Unskilled and defined decision-making 0 0 0 0 0 0 0

TOTAL PERMANENT 0 0 0 0 0 0 0

Temporary employees 0 0 0 0 0 0 0 0

GRAND TOTAL 0 0 0 0 0 0 0

MALE FEMALE

- .

0 0 0

._ �

0 0 I 0

0

I0

I

-L0 0 0

-1

0 0 0

.....

0 0

0 0

0 0 0

0 0

DESTINATION PEFORMANCE

5.1 GAUTENG TOURISM PERFORMANCE

5.1. l INTRODUCTION

At the time of compiling this report, South African Tourism (SAT)

had only released performance data without a comprehensive

analysis. This report is compiled from the provincial data extract

provided by the SAT general manager: strategic research.

Other data sources, such as the UNWTO tourism highlights

report and the Statistics South Africa tourism and migration

report, are referenced. As a result, only a limited analysis is

provided under provincial performance.

The initial annual peformance report (APR) was submitted

for audit in May 2015 but excluded reported values on six

destination performance indicators (i.e. arrivals, revenue,

bednights, etc) due to non-availability of information from

the primary data source, SAT. This information only became

available at the end of July 2015 and the APR was duly

adjusted and resubmitted to the auditors in August 2015 for

audit. An audit was conducted on the revised APR. which forms

the basis for the audit report referenced herein.

Fig 1: International tourist arrivals (in millions): 2013-2014

1200

1000

800

581,8

600 565.4

400

5.1 .2 GLOBAL TOURISM CONTEXT

. Twenty-fourteen marked a fifth consecutive year of robust

growth for tourism, with 46-million more tourists travelling the

world. In 2014. international tourist arrivals grew globally by 4.4%

(1 .135-million tourists). showing continued growth following

the global economic crisis of 2009 and exceeding the UNWTO

long-term forecast of 3.8% annual growth.

Africa's international tourist numbers grew by an estimated

2%, equivalent to an increase of one million arrivals, to

reach 56-million tourists. The best-performing region was the

Americas with 8% growth. welcoming an additional 14-million

international tourists and raising the total to 182-million. Europe

continues to fortify its position as the most-visited region, with

over half the world's international tourists.

2013

• 2014249,8 263,3

200

0

WORLD EUROPE

167,5 181

ASIA & THE PACIFIC AMERICAS

54.4 55,7

AFRICA

Tourism receipts were up by 3.7% in real terms, international tourism receipts reached an estimated US$1 245-billion worldwide, from

US$ l 078-billion in 2012 and US$ l 159-billion in 2013.

Fig 2: International tourist receipts 2013-2014

• EUROPE - $509

• ASIA & THE PACIFIC - $377

• AMERICAS - $274

• MIDDLE EAST - $49

AFRICA - $36

International tourism accounts for 30% of the world's export of services and 5% of total export. a contribution similar for both

developed and emerging economies.

5.2 INTERNATIONAL TOURISM IN SOUTH AFRICA

5.2.1 TOURIST ARRIVALS

Total foreign arrivals to South Africa grew only by 0.1 %. showing

slowed growth compared to the 4. 7% in 2012. according to the

2014 Tourism report released by Statistics South Africa.

The regional distribution of the 2014 tourists indicated that 7 4%

were residents of SADC countries, 24% came from overseas

countries while 2% were residents from other African countries

(i.e. non-SADC member countries):

Africa land increased by 7.8%

Africa air declined by 7.2%

Americas increased by 5.3%

Asia & Australasia declined by 16.3%

Europe increased by 11 . 7%

Drivers of growth were mainly from European countries:

Denmark (27%). France (24%), Italy (23%). Spain (27%) and

Switzerland (21 %) recorded double-digit growth. Major declines

were recorded from China including Hong Kong (-38%),

Argentina (-26%) and Ghana (-20%).

'UNWTO. 2014. UNWTO Tourism Highlights

5.2.2 TOURIST SPEND

Total foreign direct spend (TFDS) excluding capital expenditure

increased marginally, by 0.4%. The decrease was driven by

China and Hong Kong recording a 66% decline in revenue

spending, from R2. l-billion in 2013 to R729-million in 2014.

Lesotho (-41%) and Brazil (-31.5%) also recorded major

declines. Growth trends were picked up from Mozambique

(44%) as the second-highest contributor to the TFDS, and

average spend per trip from Mozambique was the highest,

increasing from R2.8-billion to R4-billion in 2014.

5.3 INTERNATIONAL TOURISM IN GAUTENG

5.3.1 TOURIST ARRIVALS

Double-digit growth of 47% and a stark decline of 43% were

recorded from Mozambique and China respectively. This drastic,

mixed-bag performance does not tell a positive picture about

Gauteng. the province suffered setbacks from most markets,

a double-digit decline from Brazil (-21.8%) saw the South

American country dropping out of the top 20 ranking. Of the

top 20 Gauteng markets as seen in Figure l . only eight markets

showed growth while the remaining dozen were in decline.

Fig 3: Gauteng's top 20 markets: 2013-2014

60,0

50,0

40,0

30,0

20,0

w 10,0

0,0 w

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-20,0

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Arrivals from SADC ranked first. contributing 66.6% of all arrivals

in Gauteng. Mozambique was the highest driver of growth

within SADC, bringing an additional 286 OOO tourists over 2014.

Declines were recorded from Zimbabwe (-2.2%), Lesotho (-15%)

and Botswana (-7.5%).

Fig 4: Provincial distribution 2013-2014

NORTHERN CAPE

EASTERN CAPE

NORTH CAPE

KWAZULU-NATAL

FREE STATE

MPUMALANGA

304 822

276 611

508 562

493 197

768 237

772 372

960 196

796 706

l 144 079

l 132 444

"" ::::,

WESTERN CAPE 1 386 147

l 330 520

> < < 5 < "' c:; 0 � z <Se i5 � Cl � (!) < UJ � 0 z z < ::, (!) (!) C: 5 0

z z I-

< C: z "' ffi () UJ < ::::, () (!)

(!) <

z UJ

9 z

z 0

5.3.2 PROVINCIAL DISTRIBUTION

Gauteng (3.8mil) continues to capture the lion's share of the

foreign market as seen in the graph below, while Limpopo

(l .6mil) has surpassed the Western Cape (1.3 mil).

• 2014

2013

LIMPOPO l 639 849

l 422 556

GAUTENG

Tourism revenue declined from R30.3-billion in 2013, to

R26. l-billion in 2014. The most crippling decline of 66.6% was

recorded from China and Hong Kong, with a total of Rl .4-billion

lost from this market. Chinese visitors are the biggest spenders:

3 803 967

3 712144

on average, a tourist from China and Hong Kong spends

Rl 6 400 on a trip. Travelling trends from this market have over

the years shown a consistent, large percentage share of this

market visiting Gauteng.

Fig 5: Spend by top 20 markets 2013-2014

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R5 OOO OOO OOO

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Strong growth was recorded in SADC: Mozambique (44.8%),

Malawi (17.9%),Zambia (19.7%) and Swaziland (24.6%).These

four neighbouring countries, together with Zimbabwe, Lesotho

and Botswana, contribute 63.2% to the total provincial foreign

direct expenditure.

0 I

0 (/) �

Big spenders in Gauteng in 2014 were Malawians, Zambians

and Chinese, spending on average per trip R20 900, Rl 8 500

and Rl 6 400 respectively. There is a causal relationship between

expenditure and length of stay; in the case of Malawi, the

relatively high expenditure is linked to the 7.5 nights that are

spent on average when a Malawian visits the province. Visitors

from the UK and Germany spend on average Rl 2 500 per trip,

while staying for a shorter period.

• 2014 2013

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5.4 DOMESTIC TOURISM

The total number of domestic trips increased by 11 % in 2014 to

reach 28-million trips, compared to the 25.2-million trips taken

in 2013. Approximately 12-million South African adults took a

domestic trip in 2014, the same number of travellers we had in

2013. However, the average number of trips taken per traveller

increased from 2.1 in 2013 to 2.3 in 2014.

Visits to friends and relatives (VFR) remains the main purpose

of all domestic trips and accounted for 73% of all domestic

trips taken in 2014, an increase from 70% in 2013. Holiday

trips accounted for l 0% of all domestic trips taken in 2014,

down from 12% in 2013. Business trips accounted for 6% of all

domestic trips taken in 2014, down from 8% in 2013.

Total revenue generated from domestic trips was R26.8-billion

in 2014, an increase of 11 % on R24.3-billion in 2013. The increase

in revenue was as a result of the increase in the number of

domestic trips, as the average spend per trip decreased from

R980/trip in 2013 to R950/trip in 2014. This can be attributed to

the increase in the number of VFR trips in 2014, which tend

to have a lower average spend relative to other types of

domestic trips.

The average length of a domestic trip decreased from 4.4

nights in 2013 to 4 nights in 2014. However. given that there

were more trips taken in 2014 than in 2013, the total number

of bednights increased by 2%, from 111 .3-million in 2013 to

113. l-million in 2014.

Economic constraints remain the biggest barrier to domestic

travel, with 48% of the adult population mentioning that they

cannot afford to travel and they are unemployed/have no

income.

5.4.1 DOMESTIC TOURISM IN PROVINCES

Gauteng (36%), Limpopo (18%) and KwaZulu-Natal (15%) were

the top three source markets in 2014. Together these three

provinces account for more than two-thirds of all domestic trips

(69%).Trips from Gauteng to other provinces declined by 8%,

while Limpopo (75%), Eastern Cape (125%) and the North West

(2 253%) increased their contribution to the overall number of

domestic tourists taking trips in South Africa.

Gauteng (4.3-million) was the third most-visited province in

2014. Trips to Limpopo increased from 5.6-million in 2013 to

7.4-million in 2014, thus shifting Limpopo to the most-visited

province in 2014, followed by KwaZulu-Natal (5.3-million). Trips

to Gauteng declined from 4.5-million trips recorded in 2013 to

4.3-million trips in 2014.

Unlike in the case of domestic arrivals, total domestic direct

spend showed healthy growth in Gauteng, increasing by 22.2%

from R3.6-billion in 2013 to R4.4-billion in 2014.

PERFORMANCE REPORT

I I I I I !

STRATEGIC PERFOR- ACTUAL i PLANNED ACTUAL DEVIATION REASON FOR ENTITY

OBJECTIVE MANCE ACHIEVE- ' TARGET I ACHIEVEMENT I FROM PLANNED i VARIANCE RESPONSIBLE I I I I '

l INDICATOR MENT ' 2014/2015 2014/2015 TARGET FOR THE ' '

I 2013/2014 ' I 2014/2015 INDICATOR

' I ' '

STRATEGIC GOAL 1:

Gauteng ,s a world-class destination renowned for its responsible and sustainable tourism experiences

Visitor Percentage Appointment of I 70% (second I 100% I None None Cradle of requirements met completion of o contractor construction) (sign-off. Humankind World through world- the Marapeng hand-over. project Heritage Site class products Hominin Hause decommission) (COHWHS) and infrastructure upgrade by provision. and March 2015 unique. authentic : experiences

I I I Percentage New indicator I Operational 60% (Phase I Delays in the The funds have Cradle of completion of Marapeng 2 - project payments received recently been Humankind World the Maropeng Virtual Lab design from the project lransferred. and the Heritage Site Virtual Lab by concluded) sponsor (DAC) project is ta be (COHWHS) March 2015 caused the delay in delivered in the l st

the delivery of this quarter of the 2015/ l 6 project financial year

-

Expansion size Finalisation of 7 OOO hectares 11 630 hectares Target missed by Ta date only l 630 Dinakeng of the Dinakeng large incorporated 5 370 hectares hectares of private Game Reserve documents land have been (hectares) by incorporated as March 2015 negotiations with

landowners have due ta the finalisation of the shore model taken longer than expected, as well as the need to lobby more private landowners

Number of new New indicator I 2 2 None None GTA tourism experiences

,-,*� developed by March 2015

Number of 25 None None GTA township neighbourhood tourism

experiences packaged by March 2015

Number of New indicator 25 25 None 1 None GTA township neighbourhood

I tourism I experiences

promoted and marketed by March 2015 -

Sector intelligence Number of New indicator 4 4 None None GTA is used to ensure Gauteng that the needs Tourism Regional of visitors drive Pertormance new innovative Surveys by and sustainable March 2015 tourism practices

I None

--- -

Number of I

New indicator 3 3 None GTA Gauteng Tourism Economic Trend Reports by March 2015

management integrated

of databases for databases for effective products and management of services in the tourism province by March landscape 2015

Visitors receive Number of people 703 l OOO l 160 Target exceeded Target exceeded GTA the highest trained in tourism by 160 as a result of level of service skills by March MOU with TEP to excellence at 2015 leverage off their every stage of resources for their journey additional SMME

support

Number of tourism 3 4 4 None None GTA workforce skills initiatives implemented by

Morch 2015

Percentoge New indicator l 00% completion 100% completion None None GTA

completion of of second-year of second-year

professional diploma (gradu- diploma (gradu-cookery diploma ation) ation) course of 22 second-year students at the Ga-Rankuwa Hotel School by Morch 2015

Number of rooms New indicator 400 484 Target exceeded Leveraging on GTA

graded through by84 ongoing part-

GTA funding by nership with the

Morch 2015 Tourism Groding Council of South Africa (TGCSA)

Number of None None GTA

provincial tourism

annual awards implemented by March 2015

The sector is Number of studies 2 4 4 None None GTA

committed to monitoring visitor monitoring visitor quality satisfaction

satisfaction and perceptions

and perception of Gauteng

of quality experiences by experiences March 2015

Visitor Number of 2 3 3 None None GTA

requirements operational VICs in met through Gauteng world-class per annum products and infrastructure provision,

and unique, authentic experiences

To develop and Number New indicator 12 12 None None GTA grow prioritised of incident sectors in order management to improve their reports generated competitiveness, by March 2015 and create sustainable and decent jobs

Visitor Number of New indicator 4 Target exceeded The Hominin GTA requirements green initiatives by3 House upgrade met through linked to tourism incorporated an world-class infrastructure additional three products and development by innovative green

infrastructure March 2015 initiatives as a

provision, pilot

and unique, authentic experiences

STRATEGIC GOAL 2

The ·outstonding universal value· of the COH WHS is protected, conserved and interpreted

The sustainable environmental management of the COH WHS by conforming to prescribed regulatory requirements

STRATEGIC GOAL 3:

Number of surface and groundwater monitoring reports developed by March 2015

Number of fossil site inspections conducted annually

�;;-schools sponsored to visit Sterkfontein and Maropeng by March 2015

I

I

2 2

2 2

--- I 10 10

t

Gauteng is recognised as a global tourism competitor for leisure and business travel

To facilitate and Number of 5 40 promote the association Gauteng City meetings and Region as an exhibitions hosted investment, trade in Gauteng by and tourism March 2015 destination

Number of annual 10 10 signature events hosted by March 2015

Rand value of New indicator 300 economic benefit generated from conferences, signature events and exhibitions hosted (R million) per annum

Number of unique 650 OOO 650 OOO visitors to the website per annum

I Number of international I 4.27 4.2

visitor arrivals to Gauteng [million] per annum

Rand value 35.5 33 of revenue generated from international tourists in Gauteng per annum [R billion]

-

I

I

2 None

2 None

II 10 None

I I

I

I

40 None

20 Target exceeded by 10

711.6 Target exceeded by R4 l l .6-million

786 139 Target exceeded by 136 139

3.8 Target missed by 400 OOO

26.l Target missed by R6. 9 -billion

None

None

None

None

Additional events supported as a result of additional resources from OED during the financial year

Additional events supported as a result of additional resources from OED during the financial year

Increased investment in content generation and leveraged heavily on social media platforms to drive greater online traffic

Changing market conditions also dropped the Gauteng market share to 39.8% from 41.6% in 2013

The decline in revenue is consistent with a decline in arrivals; paticularly among key African source markets

Cradle of Humankind World Heritage Site (COH WHS)

Cradle of Humankind World Heritage Site (COH WHS)

Cradle o� Humankind World Heritage Site (COH WHS)

GTA

GTA

GTA

GTA

GTA

GTA

To facilitate and promote the Gauteng City Region as an investment. trade and tourism destination

STRATEGIC GOAL 4:

revenue generated from domestic tourists per annum [R billion]

�-umber of domestic

tnps to Gauteng per annum [million]

J

I

Number of bed nights spent per annum by international visitors [million]

Number of days spent in the province by international tourists per annum

I

-----10.3 5

29.4 30

6 6

I Tourism is a maior contributor to job creation and economic growth in Gauteng

To develop and I Number of New indicator I

300 grow prioritised beneficiaries from sectors in order youth employability to improve their programmes by competitiveness. March 2015 and create sustainable and decent jobs

Number of tourism New indicator 300 SMMEs supported through the Integrated Enterprise Support Plan by March 2015

-- - -

Number of tourism New indicator 15 co-operatives supported

Ithrough the Gauteng Tourism Enterprise Plan by March 2015: number of new and existing township based co-ops in each of the 11 sectors

I supported NON-FINANCIALLY - --

... __ L__ 4.3 Target missed by

700 OOO trips

27.5 Target missed by 2.5-million

7.5 Target exceeded by 1.5

I

380 I Target exceeded by BO

I

I I 334 Target exceeded

by34

I I 12 Target missed

by3

I

conditions

Adversely affected by local market conditions

The decline in revenue is

consistent with a decline in arrivals

-c---

Increased attraction of Destination Gauteng and its offerings improving average length of stay

I

I Partnership with NDT enabled us to meet the ever-growing demands for these youth-targeted development programmes

Target exceeded as a result of MOU with TEP to leverage off their resources for additional SMME support

Complexities associated with co-operative establishment

GTA

GTA

I--GTA

I

I GTA

GTA

I GTA

JI

To develop ond Number of youth New indicator 25 25 None Effective pcrtnerships GTA

grow prioritised completing learn- between the

sectors in order erships by March Ga-Rankuwa

to improve their 2015 Hotel School and

competitiveness, industry led to the

and create achievement of this

sustainable and indicator

decent jobs

Number of youth New indicator 12 13 Target exceeded An additional GTA

completing by 1 opportunity was

internships by facilitated as a March 2015 result of vacancies

resulting from the

merger

Number of New indicator 100 102 Target exceeded Target exceeded GTA

existing and new by2 as a result of MOU

township-based with TEP to leverage

SMMEs, in each off its resources for

of the 11 sectors. additional SMME

supported NON- supper!

FINANCIALLY by March 2015

Number of new New indicator 60 71 Target exceeded Target exceeded GTA

and existing by 11 as o result of MOU

township-based with TEP to leverage

SMMEs and co- off its resources for

ops owned and/ additional SMME

or managed by support

women, youth

and persons with disobilities supported FINANCIALLY and

NON-FINANCIALLY

by March 2015

Number of New indicator 250 452 Target exceeded In implementing the GTA

women, youth by202 Township Economic

and persons with Revitalisation

disabilities from (TER) agenda,

the 50 townships beneficiaries from

trained in tourism the townships were

skills by March prioritised through

2015 Ga-Rankuwa Hotel

School and the

partnership with the Tourism Enterprise Partnership

STRATEGIC GOAL 6:

Sound corporate governance and enhanced strategic and operational support within the arganisat,an

Enhance Number of clean Clean audit Clean audit Clean audit None None GTA

financial audits in terms report report report

accountability of the Auditor-

and compliance General's report

with prescribed per annum financial regulations and guidelines

FINANCIAL INFORMATION


ANNUAL FINANCIAL STATEMENTS

For the year ended 31 March 2015

CONTENTS Report of the Auditor-General

Administrative information

Statement of responsibility by the members of the Board

Report of the Board

Report of the audit and risk committee

Statement of financial position

Statement of financial performance

Statement of changes in net assets

Statement of cash flows

Accounting policies

Notes to the annual financial statements

Materiality framework

Detailed statement of financial performance - Annexure l

90

92

93

94

98

99

100

101

102

103

110

123

124


REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON GAUTENG TOURISM

Report on the financial statements

INTRODUCTION

1. I have audited the financial statements of the Gauteng

Tourism Authority set out on pages 99 to 123 which

comprise the statement of financial position as at 31 March

2015. the statement of financial performance, statement of

changes in net assets and the statement of cash flows for

the year then ended. as well as the notes. comprising a

summary of significant accounting policies and other

explanatory information.

ACCOUNTING AUTHORITY'S RESPONSIBILITY FOR

THE FINANCIAL STATEMENTS

2. The Board of Directors. which constitutes the 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

of South Africa (No. l of 1999) (PFMA). and for such

internal control as the accounting authority determines is

necessary to enable the preparation of financial statements

that are free from material misstatement, whether due to

fraud or error.

AUDITOR-GENERAL'S RESPONSIBILITY

3. My responsibility is to express an opinion on these financial

statements based on my audit. I conducted my audit in

accordance with the International Standards on Auditing.

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.

4. 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 judgment, 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 public 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.

5. I believe that the audit evidence I have obtained is sufficient

and appropriate to provide a basis for my audit opinion.

OPINION

6. In my opinion, the financial statements present fairly, in all

material respects. the financial position of the Gauteng

Tourism Authority as at 31 March 2015 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.

ADDITIONAL MATTER

7. I draw attention to the matter below. My opinion is not

modified in respect of this matter.

UNAUDITED SUPPLEMENTARY SCHEDULES

8. The supplementary information set out on pages 124 to

128 does not form part of the financial statements. and

is presented as additional information. I have not audited

these schedules and, accordingly, I do not express an

opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS

9. In accordance with the Public Audit Act of South Africa

(No. 25 of 2004) (PAA) and the general notice issued in

terms thereof. I have a responsibility to report findings on the

reported performance information against predetermined

objectives for selected strategic goals presented in the

annual performance report, compliance with legislation

and internal control. The objective of my tests was to identify

reportable findings as described under each subheading,

but not to gather evidence to express assurance on

these matters. Accordingly, I do not express an opinion or

conclusion on these matters.

PREDETERMINED OBJECTIVES

10. I performed procedures to obtain evidence about the

usefulness and reliability of the reported performance

information for the following selected strategic goals

presented in the annual performance report of the public

entity for the year ended 31 March 2015:

Strategic goal 1 : Gauteng is a world-class destination

renowned for its responsible and sustainable tourism

experiences. on pages 82 to 83

Strategic goal 3: Gauteng is recognised as a global

tourism competitor for leisure and business travel,

on pages 84 to 85

Strategic goal 4: tourism is a major contributor to job

creation and economic development in Gauteng, on

pages 85 to 86

11. I evaluated the reported performance information against

the overall criteria of usefulness and reliability.

12. I evaluated the usefulness of the reported performance

information to determine whether it was presented in

accordance with the National Treasury's annual reporting

principles and whether the reported performance was

consistent with the planned strategic goals. I further

performed tests to determine whether indicators and targets

were well defined, verifiable, specific. measurable. time

bound and relevant, as required by the National Treasury's

Framework for Managing Programme Performance

Information (FMPPI).

13. I assessed the reliability of the reported performance

information to determine whether it was valid, accurate

and complete.

14. I did not raise any material findings on the usefulness and

reliability of the reported performance information for the

selected strategic goals.

ADDITIONAL MATTERS

15. I draw attention to the following matters:

ACHIEVEMENT OF PLANNED TARGETS

16. Refer to the annual performance report on pages 82 to 86

for information on the achievement of the planned targets

for the year.

ADJUSTMENT OF MATERIAL MISSTATEMENTS

17. I identified material misstatements in the annual

performance report submitted for auditing on the reported

performance information for strategic goal 3: Gauteng is

recognised as a global tourism competitor for leisure and

business travel. As management subsequently corrected

the misstatements, I did not identify any material findings

on the usefulness and reliability of the reported

performance information.

COMPLIANCE WITH LEGISLATION

18. I performed procedures to obtain evidence that the

Gauteng Tourism Authority had complied with applicable

legislation regarding financial matters. financial

management and other related matters. I did not identify

any instances of material non-compliance with specific

matters in key legislation, as set out in the general notice in

terms of the PAA.

INTERNAL CONTROL

19. I considered internal control relevant to my audit of

the financial statements, the performance report and

compliance with legislation. I did not identify any significant

deficiencies in internal control.

Johannesburg

26 August 2015

A U DITOR - GE N E R AL

SOU T H AFRIC A

Auditing to build public confidence


ADMINISTRATIVE INFORMATION

Annual financial statements for the year ended 31 March 2015

BOARD MEMBERS

MESSRS

S Mthembu - chairperson

D Moshapalo (until Oct 2014)

L Makgamathe (until Oct 2014)

S Monakedi (from Nov 2014)

H Ntshingila (from Nov 2014)

ME Zwane (from Nov 2014)

AUDIT AND RISK COMMITTEE

MESSRS

S Mthembu (until Oct 2014)

SR Monakedi (from Dec 20140

ME Zwane (from Dec 2014)

AUDITORS

Auditor-General South Africa

61 Central Street

Houghton

2198

INTERNAL AUDITOR

Phandahanu Forensics (Ply) Ltd.

PO Box 11666

VornaValley

1686

CHIEF EXECUTIVE OFFICER

Dawn Robertson

CHIEF FINANCIAL OFFICER

Yaseen Asmal

POSTAL ADDRESS

PO Box 155

Newtown

Johannesburg 2113

I MEETINGS ATTENDED

8

4

4

4

2

2

' '

MEETINGS ATTENDED

4

l

l

I

I

MESDAMES

N Majokweni - deputy chairperson (until Oct 2014)

M Molotsi (until Oct 2014)

L Zitha (Dr) (from Nov 2014)

G Chiloane (from Nov 2014)

N Mufamadi (from Nov 2014)

K Sangoni (from Nov 2014)

ME Ravele (from Nov 2014)

PP Ratlabala (from Nov 2014)

MESDAMES

M Molotsi - chairperson (until Oct 2014)

B Mbolekwa (until Oct 2014)

NM Mufamadi - chairperson (from Dec 2014)

REGISTERED OFFICE

124 Main Street

Johannesburg

2001

TELEPHONE

+27 (0) 11 085 2500

BANKERS

ASSA Bank

First National Bank

E-MAIL

[email protected]

WEBSITE

www.visitgauteng.net

MEETINGS ATTENDED

3

2

2

3

3

2

3

2

I MEETINGS ATTENDED

I

3

l

l


STATEMENT OF RESPONSIBILITY BY

THE MEMBERS OF THE BOARD

Annual financial statements for the year ended

31 March 2015

The 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 CONTROLS

In 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 3.1 of 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 GTA. and to safeguard and maintain

accountability of the GTA's assets.

The audit and risk 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 and risk

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 AND RISK COMMITTEE

The audit and risk committee of the Board consists of three

non-executive Board members. and meets at least four times a

year. The committee ensures effective communication between

the Board, internal auditor and the Auditor-General. The Auditor

General and the internal auditor have free access to the audit

and risk committee.

The audit and risk 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. The chairperson was

Ms M Molotsi until October 2014. and Ms NM Mufamadi from

December 2014.

ANNUAL FINANCIAL STATEMENTS

The 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 GTA.

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 judgments and estimates within the requirements

of the Public Finance Management Act,

No. l 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 2015. and the results of its operations and

cash flows for the year then ended.

CHAIRPERSON OF THE BOARD

MrS Mthembu

Date: JULY 2015


REPORT OF THE BOARD


31 March 2015

l. INTRODUCTION

The Gauteng Tourism Authority (GTA) was established as an

authority on l April 2000 in terms of the Gauteng Tourism Act.

No. 18 of 1998, and succeeded the Gauteng Tourism Agency. a

Section 21 company, as a going concern. The GTA received tax

clearance from SARS and confirmation of deregistration from

the Registrar of Companies during the 2001 /2 financial year.

The GTA was deregistered for VAT on l October 2005 due to the

fact that National Treasury and SARS considered Section 3(c)

entities as VAT-exempt.

The Gauteng Tourism Act. No. l O of 2001. was promulgated

on 5 February 2002 with the chief executive officer as the

accounting authority in terms of section 49 2(b) of the Public

Finance Management Act. No. l of 1999. On 7 June 2006 the

Gauteng Tourism Amendment Act. No. 3 of 2006, came into

effect. resulting in the establishment of a Board that became

operational from l February 2007. The Board then became the

accounting authority of the GTA.

The Gauteng MEC for Economic Development issued an

instruction that the GTA, the Cradle of Humankind World

Heritage Site (COHWHS) and the Dinokeng trading entity must

integrate at a functional and operating level to enable

the optimal achievement of the provincial tourism mandate,

from l April 2012. This instruction was in line with the broader

Department of Economic Development (DED) agency

reconfiguration process that would have impacted on the

current status and form of the GTA.The merger process was

subsequently withdrawn. with the process finalised at 31 March

2015. The GTA also acts as DED's managing agent over the

Ga-Rankuwa Hotel School, from l April 2014.

2. GENERAL REVIEW OF THE STATE OF

FINANCIAL AFFAIRS

The financial statements reflect the financial position of the GTA

as at 31 March 2015 and the results of its operations for the

year then ended are summarised as follows:

' ACTUAL BUDGET DEVIATION

INCOME Provinciol gront - GTA

Provincial grant - GTA additional

Provincial grant - GHS

GTA other income incl. registration

GHS - other income

Interest received

TOTAL REVENUE

EXPENDITURE Destination management - training

Destination management - regional

Destination marketing

Corporate communications

Corporote services incl CEO

Finance

Research and strategy

Go-Ronkuwo Hotel School

SUB -TOTAL Operational cost

Capitol expenditure

TOTAL EXPENDITURE

Surplus/(deficit) for the year including capital expenditure

Net surplus/(deficit) for the year excluding capitol expenditure

R'OOO R'OOO %

6 5 ,430 6 5.427 0.0%

18.895 18,895 0.0%

10000 10000 0.0%

134 177 -24.3%

345 206 67.8%

1.939 2,050 -5 .4%

96,742 96,754 0.0%

11,912 12,670 -6 .0%

9.957 10,248 -2.8%

18,436 18,837 -2.0%

8.704 9,111 -4.4%

22,007 24,005 -8.1%

5 ,45 5 5.578 -2.2%

4,949 5 ,101 -2.3%

7 203 7 408 -2.8%

88,622 92,958 -4.7%

6 6 6 3,797 -33.3%

89,288 96,754 -7.7%

7,454

8,120


REPORT OF THE BOARD


31 Morch 2015

2. GENERAL REVIEW - CONTINUED

The total expenditure of R89 287 839 is R7 466 268 less than

budgeted and indicates an underspend of 7. 7%. The net

surplus for the year, excluding capital expenditure of R666 201,

is RB 120 326. The GTA also has conditional grant commitments

of RB 005 393 that will be dealt with in the 2015/16 financial

year. The GTA will therefore in terms of (PFMR) TR Section 53(3)

of the Public Finance Management Act, No. l of 1999, request

approval to retain the surplus for the 2014/ 15 financial year,

as this will ensure that all commitments as at statement of

financial position date be dealt with.

3. BUSINESS ACTIVITIES

3.1 Legislation

The GTA was established in terms of the Gauteng Tourism Act.

No. l O of 2001, from 5 February 2002. Prior to this, the Gauteng

Tourism Act, No. 18 of 1998, 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 chief

executive officer.

Subsequently, the Gauteng Tourism Act, No. 3 of 2006, came

into effect on 7 June 2006, stipulating that a Board of Directors

3.2 Governance and management

Until 5 February 2002, the GTA was governed by a Board,

appointed by the MEC for Finance and Economic

Development. On 5 February 2002 the chief executive officer

became the accounting authority, with the MEC being the

executive authority advised by an advisory committee. The

GTA also has an audit and risk committee, and a procurement

committee. Staff was appointed according to the organogram.

From l 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

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

take over from the CEO the responsibilities of the accounting Compliance with the policies. procedures and applicable

authority. The Board was appointed on 1 February 2007. The GTA legislation are strictly monitored. In order to improve on internal

is a Schedule 3(c) Provincial Public Entity in terms of the PFMA. controls, various other policies and procedures were also put in

place. An audit and risk committee is functional. The audit and

The PFMA is implemented, resulting in the maintaining of and risk committee evaluated the effectiveness of the internal audit

complying with the following required documents: function provided by the firm Phandahanu Forensics (Pty) Ltd

on an ongoing basis, with recommendations reflected in the

Supply-chain management policy

Risk management policy

Investment policy

Receivables policy

Fraud prevention plan

Asset management policy

Materiality framework policy

minutes of the audit and risk committee meetings.


REPORT OF THE BOARD


31 March 2015

3.3 Planning and mandate

The GTA follows a strategic approach resulting in a strategic

plan. three-year business plan and MTEF budget. and is in

compliance with the requirements of the PFMA. This is done

in accordance with the annual planning programme. The

strategic plan is revised on an annual basis. resulting in

revisions to the business plan and annual performance plan

accordingly. The Gauteng Tourism Development Strategy was

approved by the Gauteng Executive Council during November

2007, and was effected in the 2008/09 financial year.

These documents guide the GTA throughout the

decision-making process in order to meet the its vision and

mission. namely:

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

Mission: To develop. promote. co-ordinate and facilitate responsible

and sustainable tourism in Gauteng, 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 chief executive officer is responsible for monitoring the

preparation 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 2009/10 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 chief executive officer review the operations of the

GTA on a regular basis, in conjunction with the internal auditor

and the audit and risk 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 GTA's policies

and procedures. These controls are implemented by trained.

skilled personnel with an appropriate segregation of duties and

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 GTA. The financial statements are based on

appropriate accounting policies. consistently applied and

supported by reasonable and prudent judgments

and estimates.

During this financial year the GTA'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 R27 706 986. which was 42% of the DED grant of

R65 430 OOO received.

The development fund expenditure per business unit was as follows:

Destination management

Destination marketing

Corporate communications

Research and ICT

Regional tourism

Corporate services incl. CEO

Finance

TOTAL

5. APPROVAL OF FINANCIAL STATEMENTS

R

12.823.156

2.509,043

2,711.520

2.079,010

3,052.568

2,890.586

1,641.104

1127,706,986

The financial statements for the GautengTourism Authority for the financial year ended 31 March 2015 are hereby approved.

CHAIRPERSON OF THE BOARD

MrS Mthembu

Date: JULY 2015


REPORT OF THE AUDIT AND RISK.COMMITTEE


31 March 2015

We are pleased to present our report for the financial year

ended 31 March 2015.

Audit and risk committee members and attendance

The audit and risk committee consists of the members listed

hereunder, and met four times during the year under review.

NAME OF MEMBER

Ms M Molotsi - chairperson (until Oct 2014)

Mr S Mthembu (until Oct 2014)

Ms B Mbolekwa (until Oct 2014)

Mr SR Monakedi (from Dec 2014)

Ms NM Mufamadi - chairperson (from Dec 2014)

Mr ME Zwane (from Dec 2014)

Audit and risk committee responsibility

The audit and risk committee's responsibilities arise from section

51 (1 )(a) if the Public Finance Management Act ("the Act")

and Treasury Regulations 27 .1 .8 and 27 .1.10. The audit and risk

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 control

The 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 audit

The internal audit function is outsourced to Phandahanu

Forensics (Pty) L td.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 chief executive officer's responsibility to ensure that

recommendations are implemented.

The quality of management and monthly/quarterly reports

submitted in terms of the Act

The committee discusses the content and quality of monthly

and quarterly reports, prepared and issued by the chief

executive officer.

NUMBER OF MEETINGS ATTENDED

3

4

1

l

l

l

The chief financial officer

MrYaseen Asmal was appointed as the GTA's chief financial

officer from 1 September 2012.

Evaluation of financial statements

The audit and risk 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 2014/15 financial year.

CHAIRPERSON OF THE AUDIT AND RISK COMMITIEE

Ms NM Mufamadi

Date: JULY 2015


STATEMENT OF FINANCIAL POSITION


ASSETS

Current assets

Cash and cash equivalents

Trade and other receivables from exchange transactions

Debtors

Deposits

Pre-payments

Non.current assets

Property, plant and equipment

Intangible assets

TOTAL ASSETS

LIABILITIES

Current liabilities

Trade and other payables from exchange transactions

Trade and other payables: trade creditors

Trade and other payables: staff leave accruals

Trade and other payables: other creditors

Trade and other payables tram nan-exchange transactions

Trade and other payables: conditional grants

Non-current liabilities

TOTAL LIABILITIES

Capital and reserves

Accumulated surplus/(deficit)

Accumulated surplus

Net surplus for the period

TOTAL NET ASSETS AND LIABILITIES

I NOTES I 2014/15 I 2013/14

: ACTUAL R'OOO ACTUAL R'OOO

32,149 16,718

10.5 26.138 16,275

6 011 443

63

::I 4.1 304

4.2 5,644

1,087 669

2.1 1.087 66�

I 2.2

33,235 17,387

5 19.551 7,934

11,546 3,434

4,021 1.623

1,403 1,334

6,123 478

8,005 4,500

8.005 4.500 I

19,551 7,934

13,684 9,453

5.564 6.233

8.120 3,219

33,235 17,387


STATEMENT OF FINANCIAL PERFORMANCE


I NOTES I 2014/15 2014/15 I 2014/15 ! 2013/14

1 2013/14

1 2013/14

BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

REVENUE 94,322 94,325 3 62,016 62,016

Non-exchonge transactions

Government grant 6 65,427 65.430 3 62,016 62,016

DED additional govl

grants Ga-Rankuwa HS 10,000 10,000

DED additional govt grants 12,100 12,100

Township revitalisation 1,995 1,995

Transfers from other departments - 4,800 4,800 conditional grants

Revenue from exchange transactions 2,433 2,410 (23) 1,033 1,026 (7)

Interest earned - external investments 6.2 2,050 1,939 (111) 450 623 173

other income (incl. registr.) 6.1 177 126 (51) 583 403 (180) Other Income GHS 206 345 139

TOTAL REVENUE 96,754 96,742 (20) 63,049 63,042 (10)

EXPENDITURE

Employee-related costs (incl. remuneration of executive committee) 7.1 41.647 41,353 (294) 35,260 33,614 (1,646)

Depreciation 7,2 309 245 (64) 167 153 (14)

Amortisation 7.3 12 (12)

Repairs and maintenance 7.4 l.819 1,690 (129) 834 822 (12)

General expenses 7.5 49,182 45,333 (3,849) 26,157 25,234 (923)

TOTAL EXPENSES 92,953 88,622 (4,331) 62,429 59,822 (2,607)

OTHER GAINS/LOSSES

(Gains)/loss on disposal of assets 7.6 5 (8) 3 20 (2) (18)

SURPLUS FROM OPERATIONS 3,797 8,120 4,324 600 3,219 2,619

Surplus for the period 3,797 8,120 4,324 600 3,219 2,619


STATEMENT OF CHANGES IN NET ASSETS

Annual financial statements for the year ending 31 March 201

Balance as at 01 April 2013

Balance brought forward

Surplus/ ( deficit) for the year

Balance at 31 March 2014

Balance at 01 April 2014

Balance brought forward

Surplus/(deficit) for the year

Surplus surrendered to Treasury

Balance as at 31 March 2015

.

I ACCUMULATED SURPLUS/(DEFICIT) I TOTAL

NOTES R'OOO R'OOO

6,233

6,233

3,219

9.453

9.453

9.453

8.120

(3,889)

13.684

I

6,233

6,233

3.219

9.453

9,453

9,453

8.120

(3.889)

13.684


STATEMENT OF CASH FLOWS

Annual financial statements for the year ended 31 Morch 2015

INOTES I 2014/151 2013/14

I R'OOO R'OOO

NET CASH FLOW FROM OPERATING ACTIVITIES I 10.518 7,787

Cash receipts from customers 106,018 66.919

Cash paid to suppliers and employees (97,437) (59,754)

Cash generated/utilised from operations 10.l 8.580 7,165

Interest received 6.2 1,939 623

I

CASH FLOW FROM INVESTING ACTIVITIES (655) (412)

Addition to property. plant and equipment 10.2 (666) (420

� 1 Proceeds from disposal of assets 11

CASH FLOW FROM FINANCING ACTIVITIES

lncrease/(decrease) in general reserve fund

Net cash flow from financing activities

Net increase/ (decrease) in cash and cash equivalents 9,863 7,376

Cash and cash equivalents at beginning of year 10.4 16,275 8,903

Cash and cash equivalents at end of year 10.5 26,138 16,275


ACCOUNTING POLICIES


1. ACCOUNTING POLICIES

1 .1 BASIS OF PREPARATION

The annual financial statements have been prepared on the

accrual basis 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 and in accordance with Sec

tion 91 (1) of the Public Finance Management Act. No. 1 of 1999.

1.2 PRESENTATION CURRENCY

The financial statements are presented in South African rand.

which is the GTA's functional currency. See notes to the financial

statements 14.

1.3 GOING CONCERN

These financial statements were prepared based on the

expectation that the entity will continue to operate as a going

concern for at least the next 12 months.

1 .4 COMPARATIVE INFORMATION

1.4.1 CURRENT YEAR COMPARATIVES (BUDGET)

Budget information. in accordance with GRAP 1 and 24, has

been provided in a separate disclosure note to these annual

financial statements. Where necessary, comparative figures

are adjusted to conform to changes in presentation in the

current year.

1 .4.2 PRIOR YEAR COMPARATIVES

When the presentation or classification of items in the financial

statements is amended, prior year comparative amounts

are also reclassified and restated, unless such comparative

reclassification and/or restatement is not required by a Stand

ard of GRAP. The nature and reason for such reclassifications

and restatements are also disclosed.

Where material accounting errors. which relate to prior

periods, have been identified in the current year, the correction

is made retrospectively as far as is practicable and the prior

period comparatives are restated accordingly. Where there has

been a change in accounting policy in the current year, the

adjustment is made retrospectively as far as is practicable, and

the prior period comparatives are restated accordingly. The

presentation and classification of items in the current year is

consistent with prior periods.

1.5 STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE

The following Standards of GRAP and/or amendments thereto

have been issued by the Accounting Standards Board, but

will only become effective in future periods or have not

been given an effective date by the Minister of Finance.The

STANDARD

GRAP 18 - Segment reporting

The standard requires the identification and aggregation

of the operating segments of the entity into reportable

segments for which identified details of financial

performance and financial position will be disclosed.

GRAP 20 - Related party disclosures

The standard provides the requirements for the disclosure

of related parties, and transactions and balances with related

parties. The current accounting practice of the GTA for related

disclosures is aligned to this standard.Accordingly, it is not

expected that the adoption of this standard will have a material impact on the

financial statements of the GTA.

GRAP 25 - Employee benefits

GRAP l 05 - Transfers of functions between entities under common control

GRAP l 06 - Transfer of functions between entities not under common control

GTA has not early-adopted any of these new standards or

amendments thereto, but has referred to them for guidance in

the development of accounting policies in accordance with

GRAP 3 as read with Directive 5:

I EFFECTIVE DATE I APPLICABLE

2015/04/01 N/A

No effective date Yes

2015 Yes

2015 Yes

2015 No


ACCOUNTING POLICIES


STANDARD

GRAP 107 - Mergers

GRAP 1 08 - Statutory receivables

. Statutory receivables are receivables that:

(a) Arise from legislation. regulations. or similar means: and

(b) Require settlement by another entity in cash or another financial asset

Accordingly. it is not expected that the adoption of this

standard will have a material impact on the financial

statements of the GTA. The GTA expects ta adopt the

standard for the first time once it becomes effective.

Directive 11 • Changes in measurement basis following initial adoption of Standards of

GRAP

The objective of this directive is to permit any entity to changechange its measurement

bases following the initial adoption of Standards of GRAP based on the principles in

the Standard of GRAP on Accounting Policies. Changes in Accounting Estimates and

Errors. This directive should therefore be read in conjunction with the Standard of GRAP

on Accounting Policies. Changes in Accounting Estimates and Errors.

1.6 SIGNIFICANT JUDGMENTS AND ESTIMATES

The use of judgment, estimates and assumptions is inherent to

the process of preparing financial statements. These judgments.

estimates and assumptions affect the amounts presented in

the financial statements. Uncertainties about these estimates

and assumptions could result in outcomes that require a

material adjustment to the carrying amount of the relevant

asset or liability in future periods.

1 .6.1 JUDGMENTS

In the process of applying these accounting policies.

management makes judgments that may have a significant

effect on the amounts recognised in the financial statements.

When this occurs. disclosure is made in the notes to the

financial statements.

1.6.2 ESTIMATES

Estimates are informed by historical experience. information

currently available to management. assumptions, and other

factors that are believed to be reasonable under the

circumstances. These estimates are reviewed on a regular basis.

Changes in estimates that are not due to errors are processed

in the period of the review and applied prospectively.

1 .6.3 USEFUL LIVES OF PROPERTY. PLANT AND

EQUIPMENT /DEPRECIATION AND AMORTISATION

Depreciation recognised on property, plant and equipment

is determined with reference to the useful lives and residual

values of the underlying items. The useful lives and residual

I EFFECTIVE DATE I APPLICABLE

2015 Yes



values of assets are based on management's estimation of the

asset's condition, expected condition at the end of the period

of use. its current use. expected future use and the GTA's

expectations about the availability of finance to replace

the asset at the end of its useful life. In evaluating the how

the condition and use of the asset informs the useful life

and residual value. management considers the impact of

technology and minimum service requirements of the assets.

1.7 FINANCIAL INSTRUMENTS - INITIAL

RECOGNITION, INITIAL AND SUBSEQUENT

MEASUREMENT AND DERECOGNITION

Financial assets and financial liabilities are initially recognised in

the GTA's statement of financial position. when the GTA becomes

a party to the contractual provisions of the instrument.

Upon initial recognition the GTA classifies financial instruments

as financial liabilities. financial assets or residual interests in

conformity with the substance of the contractual arrangement.

and to the extent that an instrument satisfies the definitions of a

financial liability, a financial asset or a residual interest. The GTA's

financial instruments consist of cash and bank balances. trade

and other receivables. and trade and other payables. and are

measured at cost at initial recognition. Refer to note 17 of the

notes to the financial statements.

1 . 7 .1 DERECOGNITION

A financial asset is derecognised at trade date. when: the cash

flows from the asset expire. are settled or waived: a) significant


ACCOUNTING POLICIES


risks and rewards are transferred to another party; or b) despite

having retained significant risks and rewards, the GTA has

transferred control of the asset to another entity. A financial

liability is derecognised when the obligation is extinguished.

Where the terms of an existing financial liability are modified, it

is also treated as the extinguishment of an existing liability and

the recognition of a new liability.

1.7.2 GAINS AND LOSSES

For financial assets and liabilities measured at amortised cost

or cost , a gain or loss is recognised in surplus or deficit when

the financial asset or liability is derecognised or impaired.

1.7.3 OFFSETIING

The GTA does not offset financial assets or liabilities, except

where offsetting is either required or permitted by a Standard

of GRAP.

1.7.4 IMPAIRMENTS

All financial assets measured at amortised cost, or cost. are

subject to an impairment review. The GTA assesses at the end of

each reporting period whether there is any objective evidence

that a financial asset or group of financial assets is impaired.

1.8 SPECIFIC FINANCIAL INSTRUMENTS

1.8. l INV ESTMENTS AT AMORTISED COST

Investments that include short-term deposits invested with

the Reserve Bank and the GTA's appointed bankers are

categorised as financial instruments at amortised cost. and are

subsequently measured at amortised cost.

1.8.2 CASH AND CASH EQUIVALENT

Cash and cash equivalents for purposes of the cash flow

statement and statement of financial position comprise cash at

banks and cash on hand. Cash equivalents are held with the

Reserve Bank and the GTA's appointed banker. Cash and cash

equivalents are subsequently measured at amortised cost.

1.8.3 TRADE AND OTHER RECEIVABLES

Trade and other receivables are initially recognised at cost

and subsequently measured at amortised cost. All trade

and other receivables are assessed at least annually for

possible impairment.

l .8.4 TRADE AND OTHER PAYABLES

Trade and other payables are initially measured at cost and

subseauentlv measured at amortised cost.

1.9 PROPERTY, PLANT AND EQUIPMENT

1.9. l INITIAL RECOGNITION AND MEASUREMENT

Property, plant and equipment are tangible non-current assets

that are expected to be used during more than one year.

These items are initially recognised at cost in the statement

of financial position when it is probable that future economic

benefits or service potential associated with the item will flow

to the GTA and the cost of the asset can be measured reliably.

The GTA does not componentise any asset.

1.9.2 DEPRECIATION

Depreciation commences when the item is available for use

and 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 - 5-15% per annum

Computer equipment - 5-33% per annum

Equipment - 5-20% per annum

Leasehold improvements - 10% per annum

1.9.3 SUBSEQUENT MEASUREMENT

Subsequent to initial recognition, items of property, plant

and equipment are measured at cost less accumulated

depreciation and impairment losses. All assets are reassessed

annually to determine their useful life. Assets received as

donation are carried at cost as per the donator invoice, less

accumulated depreciation.

1.9.4 SUBSEQUENT EXPENDITURE

Subsequent cost on capitalised tangible assets is capitalised

only when it increases the future economic benefit in the

specific asset.All other expenditure is recognised in the

statement of financial performance as an expense when

incurred. The effect on the current year is to decrease the

carrying amount of property, plant and equipment by the

annual depreciation charge. 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. Derecognition on disposal is executed in terms of

the GTA's asset management policy, whereby profits or losses

on disposal of property, plant and equipment are determined

by comparing the proceeds from disposal with their carrying

amount and are accounted for as such in the statement of

financial performance.


ACCOUNTING POLICIES


1.9.5 IMPAIRMENTS

The GTA tests for impairment where there is an indication that

an asset may be impaired. An assessment of whether there is

an indication of possible impairment is done at each reporting

date. Where the carrying amount of an item of property, plant

and equipment is greater than the estimated recoverable

amount (or recoverable service amount), it is written down

immediately to its recoverable amount (or recoverable service

amount) and an impairment loss is charged to the statement

of financial performance.

1.9.6 DERECOGNITION

Items of property, plant and equipment are derecognised when

the asset is disposed of, or when there are no further economic

benefits or service potential expected from the use of the asset.

The gain or loss arising on the disposal or retirement of an

item of property, plant and equipment is determined as the

difference between the proceeds and the carrying value, and

is recognised in the statement of financial performance.

1 .10 INTANGIBLE ASSETS

Initial recognition and measurement Intangible assets

comprising computer software purchased are identifiable non

monetary assets without physical substance and are initially

recognised at cost in the statement of financial position only

when it is probable that the expected future economic benefits

that are attributable to the asset will flow to the GTA, and the

cost of the asset can be measured reliably.

Expenditure on research is recognised as an expense

when incurred.

1 .10.1 AMORTISATION

Amortisation commences when the asset is available for use

and 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

1.10.2 SUBSEQUENT MEASUREMENT

Subsequent to initial recognition, intangible assets are

measured at cost less accumulated amortisation and

impairment losses. All intangible assets are reassessed annually

to determine their useful life.

1.10.3 IMPAIRMENTS

The GTA tests for impairment where there is an indication that

an asset may be impaired. An assessment of whether there is

an indication of possible impairment is done at each reporting

date. Where the carrying amount of an item of of an intangible

asset is greater than the estimated recoverable amount (or

recoverable service amount), it is written down immediately

to its recoverable amount (or recoverable service amount)

and an impairment loss is charged to the statement of


1.10.4 DERECOGNITION

Intangible assets are derecognised when the asset is disposed

of or when there are no further economic benefits or service

potential expected from the use of the asset. The gain or loss

arising on the disposal or retirement of an item of an intangible

asset is determined as the difference between the proceeds

and the carrying value, and is recognised in the statement of


1.11 EMPLOYEE BENEFITS

1.11. l SHORT-TERM EMPLOYEE BENEFITS

Short-term employee benefits encompasses all those benefits

that become payable in the short term, i.e. within a financial

year or within 12 months after the financial year. Therefore, short

term employee benefits include remuneration and bonuses.

Short-term employee benefits are recognised in the statement

of financial performance as services rendered, except for non

accumulating benefits, which are recognised when the specific

event occurs. These short-term employee benefits are measured

at their undiscounted costs in the period the employee renders

the related service, or the specific event occurs.

1 .11.2 DEFINED CONTRIBUTION PLANS

The GTA operates a defined contribution provident fund for

all its permanent employees, the assets of which are held in

a separate, trustee-administered fund, which is subject to the

Pension Fund Act, No. 24 of 1956, as amended.

Contributions made towards the fund are recognised as an

expense in the statement of financial performance in the

period that such contributions become payable. This

contribution expense is measured at the undiscounted amount


ACCOUNTING POLICIES


of the contribution paid. or payable to the fund. A liability is

recognised to the extent that any of the contributions have not

yet been paid.

1.12 LEASING

Operating leases

1.12.1 RECOGNITION

Assets subject to operating leases. i.e. those leases where

substantially all of the risks and rewards of ownership are not

transferred to the lessee through the lease, are not recognised in

the statement of financial position. The operating lease expense

is recognised over the course of the lease arrangement.

Lease payments by the GTA as the lessee under an operating

lease are recognised as expenses in the statement of financial

performance on a straight-line basis over the lease period.

1.12.2 MEASUREMENT

The lease expense recognised for operating leases is charged

to the statement of financial performance on a straight-line

basis over the term of the relevant lease. To the extent that

the straight-lined lease payments differ from the actual lease

payments the difference is recognised in the statement

of financial position as either lease payments in advance

(operating lease asset) or lease payments payable

(operating lease liability). as the case may be. This resulting

asset and/or liability is measured as the undiscounted

difference between the straight-line lease payments and the

contractual lease payments.

1.13 REVENUE

1 .13.1 REVENUE FROM EXCHANGE TRANSACTIONS

Revenue from exchange transactions refers to revenue that

accrues to the entity directly in return for services rendered.

the value of which approximates the consideration received or

receivable. excluding indirect taxes. rebates and discounts.

1 .13.2 RECOGNITION AND MEASUREMENT

Revenue from exchange transactions is only recognised once

all of the following criteria have been satisfied:

a) The entity retains neither continuing managerial

involvement to the degree usually associated with

ownership nor effective control over the goods sold

b) The amount of revenue can be measured reliably

c) It is probable that the economic benefits or service

potential associated with the transaction will flow to the

GTA. and the costs incurred or to be incurred in respect

of the transaction can be measured reliably

Revenue arising out of situations where the GTA acts as an

agent on behalf of another entity (the principal) is limited to

the amount of any fee or commission payable to the entity as

compensation forexecuting the agreed services.

Revenue from exchange transactions is measured at the actual

amount of the consideration received or receivable.

1 .13.3 REVENUE FROM NON-EXCHANGE

TRANSACTIONS

Revenue from non-exchange transactions arises when the

GTA either receives value from another entity without directly

giving approximately equal value in exchange. or gives value

to another entity without directly receiving approximately equal

value in exchange.

1.13.4 RECOGNITION AND MEASUREMENT

Revenue from non-exchange transactions is generally

recognised to the extent that the related receipt or

receivable qualifies for recognition as an asset and there is no

liability to repay the amount.

Revenue from non-exchange transactions is measured at the

discounted value of the consideration received or receivable.

Revenue is derived from government grants and donated

assets (non-exchange transactions). as well as other

income (exchange transactions) and interest earned

(external investment).

Government grants are recognised on a systematic basis.

either on the date of receipt or receivable as confirmed by

the Gauteng Department of Economic Development. Other

exchange revenue and interest earned refer to revenue and

interest that accrues to the GTA for services rendered and

interest on external investment. and are recognised when

they can be measured reliably. As the GTA satisfies a present

obligation recognised as a liability in respect of an inflow of

resources from a non-exchange transaction recognised as an

asset. it reduces the carrying amount of the liability recognised

and recognises an amount of revenue equal to that reduction.


ACCOUNTING POLICIES


1.14 BORROWING COSTS/FINANCE COSTS

In terms of the Public Finance Management Act, No. l of 1999,

the GTA is prohibited from borrowing.

1 .15 Foreign currency transaction

Transactions in foreign currencies are initially accounted for

at the rate of exchange ruling on the date of the transaction.

Exchange differences arising on the settlement of creditors or

on reporting of creditors at rates different from those at which

they were initially recorded, are expensed.

Transactions in foreign currency are accounted for at the spot

rate of the exchange ruling on the date of the transaction.

1.16 SURPLUS OR DEFICIT

Gains and losses

Gains and losses arising from the disposal of assets, are

presented separately from other revenue in the statement of


expenditure is based on legislated procedures, and is

recognised when the recovery thereof from the responsible

officials is probable. The recovery of unauthorised irregular,

fruitless and wasteful expenditure is treated as other income.

1.20 POST-REPORTING DATE EVENTS

Events after the reporting date are those events, both

favourable and unfavourable, that occur between the

reporting date and the date when the financial statements are

authorised for issue. Two types of events can be identified:

a) those that provide evidence of conditions that existed at the

reporting date (adjusting events after the reporting date), and

b) those that is indicative of conditions that arose after the

reporting date (non-adjusting events after the reporting date)

Any known or anticipated event that may occur after the

reporting period is declared in the notes to financial statements.

The GTA will adjust the amounts recognised in the financial

statements to reflect adjusting events after the reporting date,

Income, expenditure, gains and losses are recognised in surplus once the event has occurred.

or deficit except for the exceptional cases where recognition

directly in net assets is specifically allowed or required by a

Standard of GRAP.

The GTA will disclose the nature of the event and an estimate

its financial effect or a statement that such estimate cannot

be made in respect of all material non-adjusting events, where

1.17 IRREGULAR EXPENDITURE non-disclosure could influence the economic decisions of users

Irregular expenditure is expenditure that is contrary to the taken on the basis of the financial statements.

Public Finance Management Act, or is in contravention of

the entity's supply chain management policies. Irregular 1.21 RELATED PARTY TRANSACTION

expenditure excludes unauthorised expenditure. Irregular The GTA operates within the auspices of its parent organisation,

expenditure is accounted for as expenditure in the statement of the Gauteng Department of Economic Development, which

financial performance and where recovered, it is subsequently is primarily responsible for funding and is therefore regarded

accounted for as revenue in the statement of financial as its related party. Other related parties are the Cradle of

performance. Humankind, Dinokeng, GEDA, the Gauteng Gambling Board,

the Gauteng Film Commission, GGDA, the Gauteng Liquor

1.18 FRUITLESS AND WASTEFUL EXPENDITURE Board, Key Management and the GTA Board.

Fruitless and wasteful expenditure is expenditure that was made

in vain, and would have been avoided had reasonable care

been exercised. Fruitless and wasteful expenditure is accounted

for as expenditure in the statement of financial performance

and where recovered, it is subsequently accounted for as

revenue in the statement of financial performance.

l .19 RECOVERY OF UNAUTHORISED, IRREGULAR,

FRUITLESS AND WASTEFUL EXPENDITURE

The recovery of unauthorised, irregular, fruitless and wasteful

All related parties except the GTA Board are within the same

sphere of government, and/or under common control of the

Gauteng Department of Economic Development.

The GTA has internal controls in place to aid in the identification

of related parties. All prospective service providers must also

complete a declaration of interest form prior to appointment.


ACCOUNTING POLICIES


1.22 ACCOUNTING POLICIES - ADDITIONAL

1.22. l CONTINGENCIES/COMMITMENTS/

OTHER LIABILITIES (PROVISIONS/ ACCRUALS) I

OTHER ASSETS

Any known or anticipated contingent liability and asset that

may occur is declared in the notes to the annual financial

statements. Commitments at year-end are listed in the

Commitment Register and declared in the notes to the annual

financial statements. Items are classified as commitments

when an entity has committed itself to future transactions

that will normally result in the outflow of cash. Disclosures are

required in respect of unrecognised contractual commitments.

Provisions are recognised when the GTA 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. 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 trade and other

payables in the statement of financial position. The GTA does

not recognise a contingent asset and contingent liability

but discloses details of any contingencies in the notes to the

annual financial statements.

1 .22.2 BUDGET INFORMATION IN

FINANCIAL STATEMENTS

As per GRAP l .12. a comparison of the budget and actual

amounts for the reporting period is included in the financial

statements. The GTA's financial statements and budget are

on the same basis of accounting which is a pre-requisite for

this inclusion. GRAP 24, effective from l April 2012, stipulates

that entities may elect to make available its approved budget

subject to disclosing the reasons for material differences

between the budget and actual amounts. The GTA 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.

1.22.3 PRE-PAYMENTS

The GTA recognises pre-payments made in respect of

exchange transactions for the next financial year in the

statement of financial position. Pre-payments are reviewed at

each statement of financial position date. and adjusted

if necessary.

l .22.4 DEPOSITS

The GTA recognises deposits made in respect of exchange

transactions in the statement of financial position as

current assets.

1.22.5 STAFF ADVANCES/LOANS

The GTA recognises staff advances in the statement of

financial position as current assets and any interest if

applicable in the statement of financial performance. These

advances are granted in terms of the GTA's HR policy on staff

loans and/or advances.

1.22.6 FINANCIAL RISK MANAGEMENT

The GTA's activities expose it to the following risks:

Credit

Liquidity

Market

The Board has overall responsibility for the establishment and

oversight of the risk management framework of the GTA. The Board

has established the audit and risk committee. which is responsible

for developing and monitoring the GTA's risk management

policies. The committee reports regularly to the members of the

Board on its activities. The GTA's risk management policies and

systems are established to identify and analyse the risks it faces.

to set appropriate risk limits and controls, and to monitor risks

and adherence to limits. The GTA reports on its risks on a monthly

basis in terms of the Board-approved risk register. These reports are

consolidated into quarterly reports and presented to the audit

and risk committee as a standing item on its agenda.

l .23 FOREIGN EXCHANGE GAIN/LOSS Foreign exchange gains/losses arising from international

payments are recognised in the GTA's statement of financial

performance in the period in which they occur. Exchange

differences arise when the rates at settlement of creditors are

different from those initially recorded and expensed.Transactions

in foreign currency are accounted for at the spot rate of the

exchange ruling on the date of the transaction.


NOTES TO THE ANNUAL FINANCIAL STATEMENTS


! COMPUTER ' EQUIPMENT FURNITURE &

I

MOTOR I LEASEHOLD I TOTAL EQUIPMENT FITIINGS VEHICLES IMPROVEMENTS '

R R R R: R' R I

'

2. PROPERTY, PLANT AND EQUIPMENT

Opening net carrying amount 515,626 6.475 147,149 669,253

Gross carrying amount 1,256.881 154,666 1,157,104 2,568,651

Accumulaled depreciation (741,255) (148,191) (1.009, 955) (1,899.400)

Additions 533,926 15.544 116,731 666,201

Disposals (3,144) (213) (3,357)

Cost 11,317 53.552 64,869

Depreciation charge - disposals (8,173) (53,339) (61,512)

Depreciation charge (186,204) (6,062) (53,103) (245,369)

Closing net carrying amount 860,205 15,956 210,566 1,086.726

Gross carrying amount 1,779,490 170,210 1,220.284 3,169,983

Accumulaled deprecialion (919,285) (154,254) (1,009,718) (2,083.257)

Vear ended 31 Morch 2014

Opening net carrying amount 197,999 14,785 194,417 407,201

Gross carrying amount 851,895 214.431 1,178,606 2,244,932

Accumulated depreciation (653,896) (199,646) (984,189) (1.837.731)

Additions 420.225 420,225

Donations

Disposals (3,898) (995) (300) (5,193)

Cost 15,239 59,765 21.502 96,506

Depreciation charge - disposals (11,341) (58,770) (21,202) (91,313)

Depreciation charge (98.700) (7,315) (46,968) (152,983)

Closing carrying amount 515,626 14,785 147,149 669,253

Gross carrying amount 1,256,881 154.666 1,157.104 2,568,651

Accumulated depreciation (741,255) (148,191) (1,009,955) (1,899,400)



Annual financial statements for the year ended 3 1 March 2015

3. INTANGIBLE ASSETS

Computer software

Opening net carrying amount

Gross carrying amount

Accumulated amortisation

Amortisation

Disposals

Amortisation - disposals

Closing net carrying amount 31 Morch

Gross carrying amount

Accumulated amortisation

4. TRADE AND OTHER RECEIVABLES

4.1 Trade receivables from exchange transactions

Trade and other receivables - deposits

Trade and other receivables - debtors

4.1. l Deposits

Deposit: water bottles from exchange transactions

Rental premises from exchange transactions

4.1.2 Ageing of trade & other receivables from exchange transactions (These assets are past due but not impaired)

Current (0-30 days)

31-60 days

61-90 days

91-120 days

l 21-365 days

Total

I

2014/15 : 2013/14 R I R

211,998

(211,998)

211.998

(211,998) I

211,998

(211,998)

6,010.577 442,951

366,548 303.720

303.720 303,720

62,828

303,720 303.720

1,620 1,620

302,100 302,100

335,670 303.720

335,670 303,720

No provision far doubtful debts was made due to the fact that R302 720 relates to a contract that expired in April 2015 and R3 l 950 to GHS student certification to be completed in July 2015. If not paid. the students will not receive their certificates.




4.2. Pre-payments

SAACI

National circulation

Media circulation

ICCA

Citizen

Independent Newspapers

VIP Licence

Pastel

SABC

Nimrod

Provantage

Encirca

Tabble Dabble

Survey Monkey

UNWTO

Destination Marketing Association

HIS regional data

I 201411s 2013114 R R

5,644,029 139,231

7,688

1.785

1.120 10.094

29,917 33,984

1,021

250

23,332 21,604

2,872

397 265

20.619

5,500,000

4,585

31.699

1.876

24.325

16.285

49,543




5. CUllllENT LIABILITIES (Initially carried at cost end subsequently at amortised cost)

5.1 Trade and other payables from exchange transactions

5.1.1 Trade and other payables - creditors

Trade and other payables - other creditors

Accrual for thir teenth cheque

Accrual for statutory costs

Accrual for Board remuneration

Allowed accumulated vacation leave

Staff savings

Staff claims

NDT - payment in advance

Ga-Rankuwa HS student fees 124 Main Street rental

Surplus surrender to Treasury

5.2 Trade and other payables from non-exchange transactions

5.2.1 Trade and other payables - conditional grants

Reconciliation of conditional grants

Opening balance

Receipts

Dept Arts and Culture Shopping Festival

Township - research and planning

Township - skills development

Township - product development

Township - SMME development

Transferred to revenue/expenditure

Closing balance

5.3 Reconciliation of accruals

Accrual for leave pay - balance as at 1 April

Additional accrual

Balance as at 31 March

Accrual for thirteenth cheque - balance as at 1 April

Additional accrual

Balance as at 31 March

6. llEVENUE

Revenue comprises revenue received in respect of:

Non-exchange transactions - DED government grants

Non-exchange transactions - DED additional grants

Non-exchange transactions - DAC Maropeng Virtual Lab

Other income - exchange transactions

Income from investments

NOTES

I

2014/15 2013/14 ll ll

6.1

6.2

r

19,551.387

11,545.994

4,020.794

7,525,200

409.575 -

1,386

1,402.649

15,000

-

1,807,590

3,889,000

8,005,393

4,500,000

500,000

150,000

2,500,000

6,850,000

(6,494,607)

(8,005,393)

2015

1.333,526

69,124

1.402.650

402.114

7,462

409.575

96,741,964

75,430,000

14,094,607

4,800,000

478,759

1.938,598

7,934,162

3.434,162

1.623,020

1,811.142

402.114 1,871

5,613

1.333,526 9,000

3.519

7,500

48,000

-

4,500,000

1,500,000

3,000,000

-

4,500,000

2014

1,239.0381

94,488

1,333.526

384.5751

17,538

402.114

63,039,104

62,016,000

400,116

622,988




I NOTES I 2014/1� 2013/1:

6.1 Other income - exchange transactions

6.1.1 Comprises of main income budget votes

Registration fees

GHS - tuition. accommodation and venue fees

6.1.2 Other: insurance claims and shored services

6.2 Income from investments

Interest from Corporation for Public Deposits

Interest from ABSA and FNB

7. EXPENDITURE

7 .1 Employee-related costs

Wages and salaries

Basic salaries

Performance awards

Periodic payments

Other non-pensionable allowance

Temporary staff

Resignation leave

Overtime pay

CEO and senior managers· emoluments

Defined pension fund contribution plan expense

Medical

Unemployment Insurance Fund

Other salary-related costs ( accrual for leave pay)

Fees for non-executive Board members

7.2 Depreciation

Plant. machinery and equipment

Computer equipment and peripherals

Office furniture and fittings

7 .3 Amortisation

7 .4 Repairs and maintenance

Repairs. maintenance and running costs

Plant. machinery and equipment

Computer equipment and peripherals

Other maintenance

I

8

9

I

478.759

478,759

133,989

344,770

1,938,598

1,811.040

127.558

88,621,639

41,352,978

13.311.025

1,820.626

1.471.636

2,841,147

78.090

77.470

56.792

9,247.039

2,817,670

2.103.720

230,356

6,845.789

451,619

245,369

6,062

186.204

53.103

1,689,955

276.169

1.275.109

138,677

402,599

99,943

99.943

302.6561

622.988

501.289

121,699

59,819,892

33,613,501

11.623,856

1.866.147

1.363.097

3,013,919

203.029

64.778

42.085

8.531.229

2,824,551

2.397.841

219.021

1,236,003

227,946

152,983

7.315

98,700

46.968

822,018

118.836

658.828

44.354




I NOTES I 2014/15 I 2013/14

: R I R

7 .5 General expenses

Advertising including GTA marketing

Admin fees

Audit fees - statutory

Audit fees - internal

Bank charges

Conference and delegations

Entertainment

Electricity

Insurance

Legal fees

Parking official

Postage

Printing and stationery

Rental of buildings

Cleaning seNices

Rental of equipment

Rental of vehicles

Security costs

Subscriptions and publications

Telephone costs

Training and development

Other

7.6 Other gains/losses

(Gain)/loss on disposal of assets (property, plant and equipment)

See notes to the annual financial statements No 2.2.

8. RELATED PARTIES

Joint ventures N/A

Members of key management Yes

45,333,336

19,006.285

23.105

462,825

619.482

30,976

633,343

120,968

1.081.637

215,344

68.192-

59,999

833

180,047

7,232,365

380,976

49.615

172.156

542,045

54.020

854,994

999,586

12,544.943

�

Associates

Close family member of key management

N/A

N/A

25,233,873

3,304,609

24,341

360,250

526,201

28.700

663.737

93,914

1,844.024

204,859

49,999

2,826

100,135

4.232.859

340,991

83,802

147,856

351,946

114.720

108,470

2,657,272

9,992,363

�

The GTA's main related party is the Gauteng Department of Economic Development. which is primarily responsible for funding. Other related parties during the period under

review were the Cradle of Humankind and Dinokeng, as well as members of key management and the GTA Board.

All related parties except the GTA Board are within the same sphere of government and/or under common control of the Gauteng Department of Economic Development.




8.1 Related party transactions

Deportment of Economic Development

Cradle of Humankind

Dinokeng

Stoff debtor - leave in advance

GGDA

Executive management remuneration

GTA Boord emoluments note 8.1.2

Receivables (payables) balances

The only outstanding balance at statement of

financial position dote was the staff debtor.

j 2015 2015 , 2014 2014 I I I

IR'OOO 1

R'OOO I R'OOO R'OOO

Transaction

97,530

3,840

907

31

9,247

452

112,007

Receivable (Payable)

31

31

Transaction

62,016

44

8,531

228

70,819

Receivable (Payable)

EXECUTIVE STAFF MEMBERS SALARIES I BONUSES AND PERFORM I CELL/MED AID I

t

2014 1 Total

I PAYMENTS I CONTRIB

R R[ R[ R R

8.1.1 CEO and senior manager emoluments

D Robertson: CEO 1.001.592 231,849 1.233.441

M Moeti: Destination Management 894.768 136,700 67.108 40,800 1.139,376

MN Kubeko: Destination Marketing 894.768 178.124 67.108 40,800 1.180.800

KN Googonediwe: Corporate Comm 1,095,480 116.225 1.211.705

S Moekets1: Corp Services 894.768 178.124 67,108 40.800 1.180.800

Y Asmol: chief financial officer 812.706 188.126- 1,000,832

KS Sithole: Research and Strategy 894,768 178.124 67.108 1.140.000

M Kono: Regional Tourism 894.768 157.412 67.108 40,800 1.160,088

Year ended 31/03/2015 7,383,618 1,364,683 335,538 163,200 9,247.039

D Robertson: CEO 927 396 258 808 1 186 204

M Moeti: Destination Management 828 480 146 108 62 136 36 900 1 073 624

MN Kubeko: Destination Marketing 828 480 165 375 62 136 36 900 1 092 891

KN Googonediwe: Corporate Comm 1 014 324 87 097 1 101 421

S Moeketsi: Corp Services 828 480 165 375 62 136 36 900 l 092 891

Y Asmol: chief financial officer 752 502 102 083 854 585

KS Sithole: Research and Strategy 828 480 165 375 62 136 1 055 991

M Kono: Regional Tourism 828 480 146 108 62 136 36 900 1 073 624

Year ended 31/03/2014 6.836.622 1,236.327 310,680 147,600 8.531,229

NOTE: 50% of the CEO and CFO remuneration was reimbursed by CoH and Dinokeng. The amounts ore Rl 001 592 and R812 706 respectively for 2015. and R927 396 and R752 502 for 2014




BOARD MEMBERS I 2014/15 i 2013/14

8.1.2 GTA Board members· costs

Board member emoluments

Mr S Mthembu (chairperson)

Ms N Majokweni (deputy chairperson) (until October 2014)

Ms M Molotsi (until October 2014)

Mr D Moshapalo (until October 2014)

Dr Z Zitha

Ms CGM Chiloane

Mr Sil Monakedi

Ms NM Mufamadi

Mr H Ntshingila

Ms ME Ravele

Ms KLN Sangoni

Mr MEZwane

ll ll

451,619 227.945

193,691 109,866

30.267 28.829

24.612- 42.680

52,740 46,570

34,281

17,580

17,580

24.612

10,548

14,064

17.580

14.064

9. CONTINGENCIES/OTHER LIABILITIES (PROVISIONS/ ACCRUALS)/OTHER ASSETS

From 1 April 2009, when GRAP 19 became effective, provisions for accrued leave and thirteenth cheque were reclassified retrospectively

as accruals under Trade and other payables. as to ensure compliance with GRAP 19. 17. Refer to accounting policies 1.22.

Accruals were made in the following manner:

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

Thirteenth cheque is made for January to March and is calculated on the actual December payout of the current financial year.

divided by four

No contingent and/or other assets existed or were reported on in the period under review.




10. NOTES TO THE CASH FLOW STATEMENT

10. 1 Reconciliation of net (deficit)/surplus before taxation to cash (utilised)/generated from operations

Net (deficit)/surplus for the year (from trial balance)

Adjusted for:

Depreciation

Amortisation

(Gain)/loss on disposal

Investment income

Operating (deficit)/surplus before working capital changes

Surplus surrender to Treasury

Working capital changes

Decrease/(increase) in accounts receivable

(Decrease)/increase in accounts payable

Cash utilised in operations

10.2 Adjustments to property, plant and equipment

Additions to property. plant and equipment

Computer equipment

Equipment

Furniture and fittings

10.3 Adjustment to intangible assets

Additions to computer software

10.4 Cash and cash equivalents at beginning at the year

Current bank account

CPD Reserve Bank account

Petty cash

10.5 Cash and cash equivalents at end of the year

Current bank account

Corporation for Public Deposits account (restricted use)

Petty cash

2014/15 ' 2013/14 R'OOO R'OOO

8,120

245

(8)

(1,939)

6,419

(3,889)

(5,568)

11,617

8,580

666

534

117

16

16,275

5,921

10,347

6

26,138

3,968

22,158

12

3,219

153

(2)

(623)

2,747

(68)

4,484

7,162

420

420

8,903

... I 4,046

6

16,275

5,921

10,347

6




11. NOTES TO THE STATEMENT OF CHANGES IN

NET ASSETS

11 .1 RESERVES

The accumulated surplus reflects net assets and includes

retained income for future use amounting to Rl 3 684 024.

12. RETIREMENT BENEFIT OBLIGATIONS

The GTA has made provision for a Liberty Life Group

Provident Fund for GTA personnel. The GTA contributes l 00% 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.

13. OPERATING LEASE ARRANGEMENTS/NON-CAPITAL COMMITMENTS/COMMITMENTS

- AUTHORISED EXPENDITURE

13.1 OPERATING LEASE ARRANGEMENTS/NON-CAPITAL COMMITMENTS

At the statement of financial position date the GTA had outstanding commitments under non-cancellable operating leases. which

fall due as follows:

Not later than 1 year

Loter than 1 year but not

later than 5 years

Loter than 5 years

I

I '

I 201411 s 2013114 , R' OOO R' OOO ' I

7.988

422

90

85

24

37.277

19

98

46.010

571

82

73

434

56

157

80

1,460

The GTA is in a lease agreement with the Gauteng Department

of Economic Development until November 2020.

The total value of the agreement of R53 253 495 was straight

lined and is listed in the lease note.

The GTA also entered into a three-year Internet Solutions telco

service agreement at a fixed monthly cost of R47 602.48

excluding variables. and is terminable after 12 months with the

notice period set at 90 days prior to termination. The GTA does

not have the option to acquire the equipment.

The GTA rents two vehicles from ASSA from 15 March 201 2 at

R6 830.05 and from l April 2013 at R6 121 .30 per month. fixed for

Office rental lease

Internet telco services

Motor vehicle (1)

Motor vehicle (2)

MTN. Vodocom Autopoge agreements

Office rental lease

Internet telco services

MTN

Motor vehicle (1)

Motor vehicle (2)

five and three years respectively with buy-back option

after the term.The lease agreements bear no contingent

lease payments.

The GTA contracted with MTN and Vodacom for official

cellphones for the CEO and senior managers. The expiry date

for the current contract is May 2015 for senior managers and

CEO. With the CFO set at November 2014. The Autopage

contracts for the GTA drivers were cancelled. with new

contracts to be entered into. All MTN contracts will be renewed

for a further 12-month term. with cost implications available on

renewal. The lease agreements do not impose any restrictions.




13.2 COMMITMENTS - AUTHORISED EXPENDITURE

Already contracted for but not provided for 2015

Operating expenditure

14. PRESENTATION CURRENCY

The financial statement figures have been stated in rand terms,

as this is the GTA's functional currency. All amounts have been

rounded to the nearest one thousand rand (Rl OOO) in the

statements and in notes 8.1, l 0-13 and 19 in the notes to the

annual financial statements. The detailed statement of financial

performance (annexure l) is stated in rand terms.

15. EVENTS AFTER REPORTING DATE

The MEC for the Gauteng Department of Economic

Development issued an instruction that the GTA the Cradle of

Humankind World Heritage Site trading entity (COHWHS) and

the Dinokeng trading entity must integrate at a functional and

operational level to enable the optimal achievement of the

provincial tourism mandate, from l April 2012. This instruction

was in line with the broader DED agency reconfiguration

17. FINANCIAL INSTRUMENTS

2014

process that could have impacted on the current status

and form of the GTA. The merger process was subsequently

withdrawn, and this process was finalised on 31 March 2015.

Apart from this. the GTA also acts as the DED's managing agent

over the Ga-Rankuwa Hotel School from l April 2014.

16. SENSITIVITY ANALYSIS

The GTA, 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 GTA also

manages its risks through a risk management plan.

The GTA's financial instruments at amortised cost are summarised as follows:

Assets trade and other receivables

Trade receivables/staff debtors

Pre-payments

Cash and bank

Total

Total

Total

2015

R

366,548

5,644,030

26. 138.107

32.148.685

2014

Assets trade and other receivables R

Trade receivables 303. 720

Pre-payments

Cash and bank

Total

139.232

16 274 658

16.717.610

Trade payables - creditors

Conditional grants

Staff leave accrual

Thirteenth cheque accrual

Other creditors

Trade payables

Payment received in advance

Staff leave accrual

Thirteenth cheque accrual

Conditional grants

Other creditors

Total

2015

Liabilities trade and other payables

4,020,794

8,005,393

1,402,649

409,575

5.712.976

19.551.387

2014

R

Liabilities trade

and other liabilities

1.623.020

55,500

1,333,526

402.114

4,500,000

20.003

7.934.162




RISK MANAGEMENT

Risks associated with the financial instruments of the public

entities included in this consolidation are managed on an

individual entity level. in line with the requirements of the

Public Finance Management Act, No. 1 of 1999. In this note we

describe the general high-level practices employed by entities

in managing the risks that they are exposed to as a result of

their financial instrument holdings.

MAXIMUM CREDIT RISK EXPOSURE

The public entities included in this consolidation are exposed to

credit risk mainly as a result of holding cash equivalents,

long-term receivables, finance lease receivables and trade

receivables. To manage the credit risk that the entities are

exposed as a result of holding these classes of financial assets,

the following steps are generally taken. The entity only

deposits cash with major banks with high-quality credit

standing, and limits exposure to any one counter-party.

CASH AND CASH EQUIVALENTS

Public entities bank with major banks with high credit standing.

Furthermore, the cash holdings with banks are spread among a

variety of banks to reduce the concentration of their credit risk

exposure. The minimum counter-party credit rating for placing

deposits and investing in government bonds is "A" by Standard

& Poor's or its Moody's or Fitch rating equivalents, while the

minimum rating for investments in corporate bonds is "AA-·.

The rating of certain investment securities were below ·p.; at

year-end due to downgrading of instruments or institutions by

the ratings agencies and due to the tightening of investment

guidelines by the bank, which resulted in passive breaches on

some of the financial assets in the bank's portfolios.

TRADE RECEIVABLES

Trade receivables comprise a widespread customer base.

Management evaluates credit risk relating to customers on an

ongoing basis. If customers are independently rated, these

ratings are used. Otherwise, if there is no independent rating,

risk control assesses the credit quality of the customer, taking

into account its financial position, past experience and other

factors. Individual risk limits are set based on internal or external

ratings in accordance with limits set by the individual boards

of directors of each of the public entities. The utilisation of

creditlimits is regularly monitored. Credit guarantee insurance is

purchased when deemed appropriate.

FINANCIAL ASSETS CARRIED AT AMORTISED COST 2014/15 2013/14

The financial assets carried at amortised cost expose the enlily to credit risk.

The value of the maximum exposure to credit risk are as follows for each of

classes of financial assets at amortised cost:

Cash and cash equivalents

Trade and other receivables from exchange transactions

Other current financial assets

LIQUIDITY RISK

R R

26.138.107

335,670

5,674.907

16,274,658

303,720

139.232

The GTA's risk to liquidity is a result of the funds available to cover future commitments. It manages liquidity risk through an ongoing

review of future commitments and credit facilities. Cash flow forecasts are prepared and adequate utilised borrowing facilities are

monitored.The table below analyses the GTA's financial liabilities into relevant maturity groupings based on the remaining period

at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual

undiscounted cash flows.




2015 R R R R

Not later than one month Later than one month and not Later than three months and Later than one year and not later than three months not later than one year later than five years

Gross finance lease obligotlons Trade and other payable 4,020.794 Other 3,136,013 7,633,006 4,761,573

2014 R R R R

Not later than one month Later than one month and not Later than three months and Later than one year and not later than three months not later than one year later than five years

Gross finance lease obligations Trade and other payables 1,623.020 Other 576,804

l 7 .1 FINANCIAL RISK MANAGEMENT

The GTA's exposure to credit, liquidity and market risks is dealt

with in terms of its risk management policies and systems in

place, as stipulated in accounting policy l .22.6. During the

period under review, no impairment, write-offs and/or credit

losses were identified.

1,563,911 4,170.428

18. GOING CONCERN

The GTA 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

GTA's annual financial statements.

19. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS

("+" amounts in last column= under budget/spend)

I �'"°"'" ,,oon

IADJUSTMENTS I FINAL BUDGET I ACTUAL AMOUNTS ON I DIFFERENCE

I COMPARABLE BASIS BETWEEN FINAL

I ! I BUDGET ANO ' R'OOO R'OOO I R'OOO R'OOO , ACTUAL R'OOO

Receipts

Rendering of services 19,277 19.277 19,373 (96)

Investment revenue 2,050 2.050 1,939 111

Grant revenue 75.427 75,427 75.430 (3)

Total receipts 96.754 96,754 96,742 12

Payments

Employee costs 41,647 41,647 41,353 294

Operating expenses 51.310 51,310 47,269 4,041

Other expenditure -Total payments 96,754 92,958 88,622 4,336

Net receipts/(payments) 8,120

Capex 3.796 3,796 666 3,130

Net receipts/(payments) alter capex 7.454

Explanation of material difference between the final budget and actual

The variation between revenue budget and actual (inclusive

of interest income) of Rl 2 143 is 0.0001 % under budget. The

surplus less the acquisition of assets amounted to R7 454 125.

The variation between staff costs budget and actual of

R293 528 is 0.8% under budget. A contributing factor is the

GTA merger process restricting appointments.

Thi=> 11nrintinn hi=>lwAAn nnArntinn AxnAn�A� hi 1rlnet and actual

of R4 041 784 is 7. 9% under budget. The reason for the variance

is savings in the CEO and Board (Rl-million). as well as savings

in Corporate Services (R900 OOO) and Destination Management

(Rl-million).

The reason for the variation in the capex budget and

expenditure is the Ga-Rankuwa Hotel School acquisition of

assets of R2 634 OOO committed in the 2014/15 financial year.

but to be concluded in the 2015/16 financial vear.


MATERIALITY FRAMEWORK


Unaudited supplementary schedule

The GTA materiality framework is as follows:

LEGISLATIVE REFERENCE I QUANTITY LEVEL

PFMA sec 50(1 )(C) All figures that might influence the decision by lhe

(1) "The Accounting Authority for a public enlity must - executive authority. Monlhly reports to the OED will

(c) on requesl. disclose lo the executive authority include explanatory notes if the actual expenditure/

responsible for that public entity or the legislature lo revenue per business unit devioles more than 5%

which the public entity is accountable. all material from budget

facts. including those reasonably discoverable, which

in any way may influence the decisions or actions of

the executive authority or thol legisloture·

PFMA sec 54 (2) All transactions as required

PFMA sec 55(2)(b)(i) Any loss through criminal conduct identified.

(2) "The annual report and financial stolements Any loss through irregular /fruitless/wasteful

referred to in subsection (1 )(d) must - expenditure and if the combined total exceeds

(b) any material losses through criminal conduct and the planning materiality figure used by the external

any irregular expendilure and fruitless and wosleful auditors for the year under review

expenditure that occurred during the financial year"

I QUALITY LEVEL

Any item or event for which specific disclosure is

required by low.

All facts discovered of which its omission or

misstatement. in the Board's opinion, could influence

the decision by the executive oulhority

All figures as applicable

Any loss identified through criminal conduct

GAUTENG TOURISM AUTHORITY ANNEXURE 1

DETAILED STATEMENT OF PERFORMANCE



BUDGET I ACTUAL BUDGET I ACTUAL 2014/15 2014/15 ' 2013/14 2013/14

R R ll R

INCOME 96,754,107 96.741.964 63,049.000 63,041.566

DED subsidy -GTA 65.427.000 65.430.000 62.016.000 62.016.000

DED subsidy - GHS 10,000,000 10.000.000

Co-exhibitor fees 15,000 15.000

Registration Fees 160,000 124.080 127.000 96,000

GTA-other 140,000 173

GHS-other 205.500 344.770

Registration other 2.000 2.102 1,000 3,943

COH/D shored services 300,000 300,000

Conditional grants 18,894,607 18,894.607

Interest received 2,050.000 1,938.598 450,000 622.988

Profit on disposal of assets 2.484 2,484

EXPENDIJUllE

FINANCE 5,577,900 5.455.239 5,616,930 4,595.525

Fin -provision for leave 40.452 38.246 100.000 94.488

Fin - provision for thirteenth cheque 8,000 7,462 20.000 17.538

Fin - accounting fees 29,448 23.105 28,000 24,341

Fin - audit internal 620.000 619,482 527.000 526,201

Fin -audit external 470.000 462.825 378,000 360,250

Fin -bank charges 34,500 30.578 33,000 28.700

Fin -financial planning 50,500 50.322 5.000 2.694

Fin - insurance 241,000 215.344 205,000 204.859

Fin - staff total 3.770.000 3.762.506 3.188.000 3.183.471

Fin -staff unallocated 935,000

Fin -loss on disposal of assets 5,000 20,000

Fin -amortisation 12.000

Fin - depreciation 309.000 245.369 167.000 152.983

OFFICE OFTHE CEO

Board and forum matters 2,470,400 1,396,525 1,933.000 1,621.052

Boord secretariat 55.500 55.463 24,000 23,975

Annual report 259.500 122.482

Attend conf & forums local 140.000 10.816 69,000 68,327

Attend conf & forums intern 200.000 77,987 300.000 285.717

Attend conf & forums Boord loc 220.400 132.249 220,000 194,307

Attend conf & forums Boord int 200.000 115.018 50,000 15.492

Tourism summit 875,000 391,899 955,000 954,985

Boord payments and allowances 460,000 451.619 246.000 227.946

CEO enlertoinment 60.000 40.993 69.000 50.304

GAUTENG TOURISM AUTHORITY ANNEXURE l




CORPORATE SERVICES

Human resources

CS - employee wellness

CS - staff dev & training

CS - labour relations

CS - organisational development

CS - recruitment

CS - study assistance

Administrative services

CS - conference and meetings

CS - courier and postage

CS - entertainment

CS - legal fees

CS - librory research

CS - motor vehicle expenses

CS - office main! & recep

CS - office electricity

CS - office rent

CS - cleaning

CS - parking official

CS - motor vehicle lease

CS - printing & stationery

CS - refreshments

CS - security & safety

CS - subscriptions & library

CS - telephones

CS - cellphones and data cords

Information technology services

CS ICT - dev/mainl of IT. tel. aud.

CS ICT - lease of equipment

CS - staff total

IBUDGET

IACTUAL

IBUDGET i ACTUAL

2014/15 2014/15 2013/14 ' 2013/14 R R R I R

21,534,200 20,60B,063 16,926,070 16,341,313

20.000 2.800 20.000 16,600

160,000 84,521 322,000 321,027

1.000 500

1.150.000 1,121,104 1.418,000 981.467

151,000 150,902 15.000 10.408

180,000 68,223 116,000 115.002

12.000

1.100 833 10.000 2,826

49,500 17,776 60,000 43,610

120,000 68.192

40.000

140,100 138.677 55,000 44,354

56,000 47,905 119,000 118.836

845,100 845,055 1,845,000 1,844,024

7,267.900 7,232,365 4,232.860 4,232.859

377.000 376,243 341,000 340,991

60,000 59,999 60.000 49.999

172.500 172.156 150.000 147,856

150.000 146.290 101.000 100.135

BO.OOO 62,199 10,000 6.043

410,000 387,396 353,140 351.946

121.900 40,686 115,000 110,445

659,500 306.824 115.000 108.470

509.600 491,731 106,000 92.357

1,332.000 1.248.149 660,000 658,828

21,000 20.950 90,000 83,802

7.500,000 7,517,089 6,559,070 6,558,929

GAUTENG TOURISM AUTHORITY ANNEXURE l




DESTINATION MANAGEMENT

Training programme

Youth programme

Skills programmes (DF)

Tour guiding

Registration of tourist guides

Monitoring tourist guides ( 40% DF)

International Tourist Guide Doy (80% DF)

Enterprise development

Tourism enterprise dev (DF)

Grading of amenities (80% DF)

Staff

Regional tourism

Local auth. community tour projects

Stakeholder engagement programme

Strategic partnerships

Responsible tourism

Tourism awareness prog (DF)

Information services (30% DF)

Regional tourism marketing

Cross-border initiatives

Staff

I BUDGET

I

ACTUAL I BUDGET I ACTUAL 2014/1� '

2014/1: 2013/1: 2013/1:

22,918,000 21.868,376 17,061,400 16,725.390

12,670.000 11,911,637 7,849,000 7,702,687

307.000 306.700 1.500.000 1.489.463

700,000 608,365 895.000 846.782

93.000 82.425 175,000 89,132

300.000 165,314

6,500.000 6,276,256 905,000 300,000

300.000 300.000 300.000

4,470.000 4.472.578 4,074.000 4,073.122

I 10,248,000 9,956.739 9,212.400 9,022,703

120.000 98.084 20.000 750

100.000 100.000

120,000 28,644 120.000 85.650

1.000.000 975.191 427.000 378.715

220.000 185.234 75,400 75, ll 2

120.000 71.535 100.000 91.713

220.000 210.903 185.000 181.245

18.000

8.330.000 8.287.149 8,285.000 8.209.519

GAUTENG TOURISM AUTHORITY ANNEXURE 1




DESTINATION MARKETING

MICE bid support

Signature events

Trade partnerships and activations

Joint marketing initiatives

Roads hows

Staff

CORPORATE COMMUNICATIONS

Gee Pee

Destination magazine

Airport TV

Media relations

E-marketing travel

Communications travel

Township development

CC- staff

GA-RANKUWA HOTEL SCHOOL

Books and periodicals

Cleaning materials

Consumables

Beverages. gas, food

Electricity and water

Maintenance - buildings

Maintenance - equipment

Maintenance - grounds

Printing and slationery

Rental of equipment

Security services

Telephones

Travelling cost

Staff

Total expenditure

Net surplus for the year

I BUDGET I

ACTUAL I BUDGET I ACTUAL 2014/15 2014/15

I 2013/14 2013/14

R R I R I R

18.837.000 18.436,220 7,538.600 7,506.234

1,740,000 1.644,362 1.400,600 13,374,909

12,300,000 12.253,023 414,500 414,019

550,250 550,250 1,511.000 1.507.680

100,000 96,503 8,000 8,000

346,750 172,977

3,800,000 3,719,105 4,204,500 4,201,626

9,111.107 8,703,922 8.829.000 8.470,649

1,551,000 1,545.455

1,159,000 1.158,273 1,913,000 1,903,214

3,521,000 3. 130,898 1.529,000 1,290,502

1.326,000 1,255,671

2,000

64.500 59,039

1.994,607 1,994,607

2.370.000 2,361,105 2,510,000 2.475.807

7,408,000 7.202,648

70,000 50.499

74.000 4.733

33.000 12,604

932,000 902.430

251,000 236.582

64,000 40,407

32,000 26,961

195,000 187,857

40,000 33,757

32,000 28,664

157,000 154,649

59,000 56.439

11.000 10,013

5,458,000 5.457,053

92,957,607 88,621.638 62,449,000 59,822.375

3,796,500 8,120,326 600,000 3,219,213




GENERAL EXPENDITURE AS PER NOTE 7 .5

Finance

Corporate Services

Destination Management

Destination Marketing

Corporate Communications

Research and Strategy

Board and CEO

Ga-Rankuwa Hotel School

(Rl 687.98 forex loss included in total)

: ! BUDGET I ACTUAL I 2013/14 2013/14

R R

1,445.448 1,401.656

11.005.100 10.313.216

10,118.000 9.108,649

15.037.000 14.717,115

6,741.107 6.342,817

1,161.000 1.012.607

2,010.400 946,907

1,950,000 1,490,370

49.468,055 45,333,336

TOURISM - Provincial Government · 2016-03-15 · Annual Performance Report Broad-based black...

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