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CAS-COD-Prez-Date-CTL 1<br />

Confidential<br />

MARKETING<br />

SOUTH AFRICA IN<br />

AFRICA:<br />

<strong>SADC</strong> Land and<br />

<strong>Air</strong> <strong>Market</strong>s<br />

<strong>South</strong> <strong>African</strong> <strong>Tourism</strong><br />

Second Edition<br />

Copyright © 2006 Monitor Company Group, L.P. — Confidential — XXX


The <strong>Tourism</strong> Growth strategy gives <strong>South</strong> <strong>African</strong> <strong>Tourism</strong> a clear business<br />

strategy on which we base all our marketing choices<br />

The <strong>Tourism</strong><br />

Act’s mandate to<br />

SA <strong>Tourism</strong> is ...<br />

. . . through six<br />

key objective<br />

. . . by acting in a<br />

focused way to...<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Sustainable GDP<br />

Growth<br />

Increase in tourist<br />

volume<br />

Improve geographic<br />

spread<br />

Understand the<br />

market<br />

Facilitate the<br />

removal of obstacles<br />

Sustainable job<br />

creation<br />

Increase in tourist<br />

spend<br />

Improve seasonality<br />

patterns<br />

Choose the attractive<br />

segments<br />

Facilitate the product<br />

platform<br />

Redistribution and<br />

transformation<br />

Increase length of<br />

stay<br />

Promote<br />

transformation<br />

<strong>Market</strong> the<br />

Destination<br />

Monitor and learn<br />

from tourist<br />

experience<br />

2 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


SA <strong>Tourism</strong> is the tourism marketing organisation of <strong>South</strong> Africa<br />

<strong>South</strong> <strong>African</strong> <strong>Tourism</strong> is the official tourism marketing organisation of <strong>South</strong><br />

Africa. We market across the world focusing on three groups of travellers:<br />

international leisure travellers, the domestic and regional traveller, and business<br />

tourists who travel to <strong>South</strong> Africa for conferences and incentives. A key part of<br />

our business is to:<br />

Understand the<br />

<strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Choose the<br />

Attractive Segments<br />

<strong>Market</strong> the<br />

Destination<br />

This booklet is the result of research <strong>South</strong> <strong>African</strong> <strong>Tourism</strong> has undertaken<br />

across the <strong>African</strong> continent in the past five years and is to help market <strong>South</strong><br />

Africa in Africa. In Africa we focus on <strong>SADC</strong> air and land markets, where most of<br />

arrivals come from, West and East Africa with the focus is on Nigeria and Kenya<br />

and have limited activities on the Middle East. Against the research we have<br />

done, the Africa and Middle East Portfolio has developed activation plans for<br />

these markets. These plans are available from our office in Johannesburg (see<br />

address on the back cover). Current information on arrivals from the rest of Africa<br />

to <strong>South</strong> Africa are available on our website www.southafrica.net/research and<br />

www.southafrica.net/trade<br />

3 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

4 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Context – Africa is important<br />

The <strong>African</strong> tourism market is critical to the success of SA’s overall tourism growth strategy<br />

Africa delivers<br />

most arrivals<br />

Africa is growing<br />

Africa is<br />

accessible<br />

Africa still more<br />

untapped<br />

potential<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Africa is the base-load of international tourism to <strong>South</strong> Africa, delivering<br />

around 70% of all arrivals<br />

� <strong>SADC</strong> countries dominate the number of arrivals by far<br />

� Travel and tourism by <strong>African</strong>s has, and is predicted, to continue to grow<br />

faster than other regions<br />

� The value that Africa brings to the SA economy goes beyond tourism (ie<br />

hotels and attractions) and has major benefits for the whole economy<br />

(especially in manufacturing and downstream industries)<br />

� Africa is SA’s natural hinterland<br />

� SA is close, and acts as a natural hub, which is accessible to significant<br />

numbers of travellers, particular those in <strong>South</strong>ern Africa, and they are<br />

familiar with the country<br />

� SA has the potential to further exploit its proximity and its strengths as a<br />

choice destination in the <strong>African</strong> market which is still emerging from purposebased<br />

travel into a true leisure-driven tourism market<br />

� Outside of <strong>SADC</strong>, SA is a relatively small player which suggests tremendous<br />

opportunity for future growth<br />

5 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Context – Africa is Important<br />

Continental Africa delivers over 70% of all arrivals into SA<br />

North America<br />

� 303,675 arrivals<br />

� 10.7% up from 2005<br />

Central & <strong>South</strong> America<br />

� 54,421 arrivals<br />

� 13.8% up from 2005<br />

Note : Arrivals figures shown above for 2006<br />

Source: SAT Tourist Arrivals Data, 2005 and 2006<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

AFRICA<br />

� 6,267,576 arrivals<br />

� 17.0% up from 2005<br />

Europe<br />

� 1,381,881 arrivals<br />

� 5.6% up from 2005<br />

Middle East<br />

� 36,724 arrivals<br />

� 9.5% up from 2005<br />

Asia<br />

� 193,578 arrivals<br />

� 8.1% up from 2005<br />

Australasia<br />

� 108,425 arrivals<br />

� 13.2% up from 2005<br />

Indian Ocean Islands<br />

� 16,768 arrivals<br />

� 2.3% down from 2005<br />

6 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Context – Africa is Important<br />

Continental Africa delivers over 70% of all arrivals into SA<br />

Predominantly<br />

<strong>Air</strong> travel<br />

� 8% of total arrivals<br />

from Africa<br />

� 6% of international<br />

arrivals to SA<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Western<br />

Sahara<br />

Predominantly<br />

Land travel<br />

� 92% of total arrivals from Africa<br />

Morocco<br />

� 64% of total international arrivals to SA<br />

Saint Helena<br />

Algeria<br />

Tunisia<br />

Libya<br />

Cape Verde<br />

Mauritania Mali<br />

Niger<br />

Senegal<br />

The Gambia<br />

Guinea-Bissau<br />

Chad<br />

Sudan<br />

Guinea<br />

Cote<br />

Nigeria<br />

Central<br />

Sierra Leone d'Ivoire<br />

Liberia<br />

Benin<br />

Burkina Togo<br />

Faso<br />

Ghana<br />

Sao Tome and Principe<br />

<strong>African</strong><br />

Came-<br />

Republic<br />

roon<br />

Congo Democratic<br />

Gabon<br />

Republic of<br />

Kenya<br />

Equatorial Guinea<br />

Congo<br />

Tanzania<br />

Angola<br />

Zambia<br />

Ethiopia<br />

Eritrea<br />

Somalia<br />

Uganda<br />

Rwanda<br />

Burundi<br />

Mauritius<br />

Zimbabwe<br />

Mozambique<br />

Namibia<br />

Botswana<br />

Madagascar<br />

<strong>South</strong> Africa<br />

Egypt<br />

Swaziland<br />

Lesotho<br />

Seychelles<br />

Malawi<br />

Comoros<br />

Djibouti<br />

Reunion<br />

7 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Context – Africa is Important<br />

Travel from Africa has been growing at 6% over the past six years<br />

Land arrivals into SA from Africa have been growing at a slower rate (CAGR2000-2006= 6%) than<br />

air arrivals (CAGR2000-2006= 7.5%) over the same period<br />

Other Africa<br />

Non-neighbouring<br />

<strong>SADC</strong><br />

Neighbouring<br />

<strong>SADC</strong><br />

Note: 1 CAGR – Compound Annual Growth Rate. The land travellers out of the rest of Africa are insignificant.<br />

Source: Statistics <strong>South</strong> Africa<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Arrivals<br />

Arrivals<br />

500,000<br />

400,000<br />

300,000<br />

200,000<br />

100,000<br />

0<br />

6,000,000<br />

5,000,000<br />

4,000,000<br />

3,000,000<br />

2,000,000<br />

1,000,000<br />

0<br />

Breakdown of <strong>Air</strong> travellers to SA (00-06)<br />

20% 23% 26%<br />

26% 28% 29%<br />

54% 49% 45%<br />

2000 2001 2002 2003 2004 2005 2006<br />

Breakdown of Land travellers to SA (00-06)<br />

97% 96% 95%<br />

27%<br />

28%<br />

45%<br />

29%<br />

26%<br />

46%<br />

96% 96%<br />

25%<br />

29% 33%<br />

46%<br />

25%<br />

43%<br />

96% 96%<br />

2000 2001 2002 2003 2004 2005 2006<br />

CAGR 1 (00-06)<br />

11.9%<br />

11.3%<br />

3.4%<br />

11.6%<br />

4.7%<br />

8 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Arrivals to Africa<br />

(Millions)<br />

Context – Africa is Important<br />

Further growth into Africa is likely to be driven by intra-regional travel<br />

The World <strong>Tourism</strong> Organization has predicted that the main driver of growth in<br />

intraregional arrivals would driven by the increased wealth within many of the <strong>African</strong><br />

nations, resulting in a transformation of tourism in the region<br />

80<br />

60<br />

40<br />

20<br />

0<br />

Long Haul<br />

Intraregional<br />

43%<br />

57%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

International Tourist Arrivals to Africa — Intraregional vs. Long-Haul<br />

(Actual and Forecasts)<br />

38%<br />

62%<br />

37%<br />

63%<br />

35%<br />

65%<br />

1995 2000 2010 2020<br />

Source: World <strong>Tourism</strong> Organization - <strong>Tourism</strong> 2020 Vision: Africa Volume 1<br />

CAGR<br />

(1995-2020)<br />

4.7%<br />

6.0%<br />

9 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Context – Africa is Important<br />

However, there are specific challenges associated with marketing in Africa<br />

The <strong>African</strong> tourism market is still developing and requires unique strategies<br />

The <strong>African</strong><br />

Outbound <strong>Market</strong><br />

is Mostly<br />

Purpose Driven<br />

The <strong>African</strong><br />

Leisure <strong>Market</strong> is<br />

only still<br />

Emerging<br />

The Barriers to<br />

Travel are<br />

Significant<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Travel within and out of Africa is predominantly multi-purpose in nature<br />

driven by shopping, which is characteristic of source markets with underdeveloped<br />

trading systems<br />

� Pure leisure travel is only emerging<br />

– This suggests that distinct leisure-driven segments are still not<br />

clearly defined<br />

� Activation of the market for pure leisure travel is likely to have limited<br />

potential unless bundled together with other activities, particularly business<br />

� Travel channels are geographically distinct, and restrict market access<br />

except where destinations are accessible by road<br />

� <strong>Air</strong>lift capacity is limited in some markets<br />

� Costs of air travel within Africa in general are high<br />

� Immigration controls and visa requirements are significant, and represent<br />

a major barrier to further growth<br />

10 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Overview of the Integrated Strategy for Africa<br />

In SA <strong>Tourism</strong> portfolio 2008 – 2010 Africa has a central role<br />

esponsibility<br />

Portfolio Manager<br />

Stakeholder<br />

Manager<br />

Country Manager<br />

Global<br />

Channel<br />

Manager<br />

CORE<br />

MARKETS<br />

INVESTMENT<br />

MARKETS<br />

TACTICAL<br />

MARKETS<br />

WATCH-LIST<br />

MARKETS<br />

STRATEGIC<br />

IMPORTANCE<br />

STRATEGIC<br />

LINKS/HUBS<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

AFRICA<br />

And Middle East<br />

Botswana<br />

Domestic<br />

Kenya<br />

Nigeria<br />

Angola<br />

DRC<br />

Mozambique<br />

Zimbabwe<br />

Ghana<br />

Lesotho<br />

Swaziland<br />

Tanzania<br />

Egypt<br />

Namibia<br />

UAE<br />

Bahrain, Oman, Qatar,<br />

Saudi Arabia<br />

Ethiopia, Zambia,<br />

Senegal<br />

AMERICAS & the UK ASIA & AUSTRALASIA EUROPE<br />

USA<br />

UK<br />

Australia<br />

India<br />

Canada China (incl. Hong Kong)<br />

Japan<br />

Brazil Malaysia<br />

New Zealand<br />

Rep of Korea<br />

France<br />

Germany<br />

Netherlands<br />

Italy<br />

Sweden<br />

Singapore Belgium<br />

Ireland<br />

Switzerland<br />

Austria<br />

Denmark<br />

Norway<br />

Spain<br />

Argentina Thailand Greece<br />

11 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Overview of the Integrated Strategy for Africa<br />

SAT has chosen four regions in Africa and this booklet’s focus is on <strong>SADC</strong><br />

Western<br />

Sahara<br />

Morocco<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Algeria<br />

� Re-position <strong>South</strong> Africa as a<br />

tourism destination<br />

� Leverage, lead and incentivise<br />

the channels<br />

� Focus on the hyper-wealthy,<br />

multi-purpose and ex-pat<br />

consumer categories<br />

� Start in Nigeria as the launch-pad<br />

Tunisia<br />

<strong>South</strong> Africa<br />

Swaziland<br />

Lesotho<br />

� “Dial up the volume”<br />

Reunion<br />

East Africa<br />

� Focus on key consumer categories<br />

� Leverage the channels<br />

� Use Kenya as the launch-pad - extending<br />

later to Tanzania and Uganda<br />

Cape Verde<br />

Mauritania Mali<br />

Niger<br />

Senegal<br />

Eritrea<br />

<strong>SADC</strong><br />

Chad<br />

The Gambia<br />

Sudan<br />

� Focus on both land and air<br />

Guinea-Bissau<br />

markets<br />

Guinea Cote Nigeria<br />

Central<br />

Ethiopia<br />

� Defend our current market share<br />

Sierra Leone d'Ivoire<br />

<strong>African</strong><br />

Came-<br />

Republic<br />

� Focus on increasing yields<br />

Liberia<br />

Somalia<br />

Benin roon<br />

Burkina Togo<br />

�<br />

Uganda<br />

Provincial and Local action are<br />

Faso<br />

Congo Democratic Kenya<br />

Ghana Gabon<br />

key lever to increase spend and<br />

Sao Tome and Principe<br />

Republic of<br />

Rwanda<br />

length-of-stay through marketing<br />

Equatorial Guinea<br />

Congo<br />

Burundi<br />

at “point of consumption”<br />

Tanzania<br />

West Africa<br />

Saint Helena<br />

Angola<br />

Zambia<br />

Seychelles<br />

Malawi<br />

Comoros<br />

Djibouti<br />

Domestic<br />

Mauritius<br />

Zimbabwe Mozambique<br />

Namibia<br />

Madagascar<br />

Botswana<br />

� Grow the market in total by<br />

focusing on emerging travel<br />

segments<br />

� Continue to develop a cooperative<br />

intergovernmental<br />

programme<br />

� Focus on changing behaviour<br />

around seasonality and purpose<br />

� Develop appropriate products<br />

and pricing to unlock value<br />

12 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Overview of the Integrated Strategy for Africa<br />

We market in five regions and this booklet focuses on <strong>SADC</strong><br />

Morocco<br />

� Re-position <strong>South</strong> Africa as a<br />

tourism destination<br />

� Leverage, lead and incentivise<br />

the channels<br />

� Focus on the hyper-wealthy,<br />

multi-purpose and ex-pat<br />

consumer categories<br />

� Start in Nigeria as the launch-pad<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Tunisia<br />

<strong>South</strong> Africa<br />

Middle East<br />

� Due to relatively low<br />

arrivals the Middle East is a<br />

tactical opportunity<br />

Swaziland<br />

Lesotho<br />

� “Dial up the volume”<br />

Reunion<br />

East Africa<br />

� Focus on key consumer categories<br />

Western<br />

Algeria<br />

� The number of airlines<br />

� Leverage the channels<br />

Sahara<br />

from the Gulf region makes it � Use Kenya as the launch-pad - extending<br />

an important regional hub for later to Tanzania and Uganda<br />

Cape Verde<br />

Mauritania Mali<br />

global air traffic<br />

Niger<br />

Senegal<br />

Eritrea<br />

<strong>SADC</strong><br />

Chad<br />

The Gambia<br />

Sudan<br />

� Focus on both land and air<br />

Guinea-Bissau<br />

markets<br />

Guinea Cote Nigeria<br />

Central<br />

Ethiopia<br />

� Defend our current market share<br />

Sierra Leone d'Ivoire<br />

<strong>African</strong><br />

Came-<br />

Republic<br />

� Focus on increasing yields<br />

Liberia<br />

Somalia<br />

Benin roon<br />

Burkina Togo<br />

�<br />

Uganda<br />

Provincial and Local action are<br />

Faso<br />

Congo Democratic Kenya<br />

Ghana Gabon<br />

key lever to increase spend and<br />

Sao Tome and Principe<br />

Republic of<br />

Rwanda<br />

length-of-stay through marketing<br />

Equatorial Guinea<br />

Congo<br />

Burundi<br />

at “point of consumption”<br />

Tanzania<br />

West Africa<br />

Saint Helena<br />

Angola<br />

Zambia<br />

Seychelles<br />

Malawi<br />

Comoros<br />

Djibouti<br />

Domestic<br />

Mauritius<br />

Zimbabwe Mozambique<br />

Namibia<br />

Madagascar<br />

Botswana<br />

� Grow the market in total by<br />

focusing on emerging travel<br />

segments<br />

� Continue to develop a cooperative<br />

intergovernmental<br />

programme<br />

� Focus on changing behaviour<br />

around seasonality and purpose<br />

� Develop appropriate products<br />

and pricing to unlock value<br />

13 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Context – Africa is Important<br />

Travel is at the introductory stage of tourism development in Africa<br />

<strong>Market</strong><br />

Symptoms<br />

<strong>Tourism</strong><br />

Authority<br />

Actions<br />

% of<br />

population<br />

traveling for<br />

leisure<br />

Consumer<br />

Product<br />

Competitor<br />

Channel<br />

<strong>Market</strong>ing<br />

Overall strategy<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong><br />

� Uninformed, Price insensitive,<br />

multi-purpose<br />

� Very individualized<br />

� Status oriented<br />

� few<br />

introduction growth maturity<br />

Nigeria<br />

� One-stop-shops<br />

� Unsophisticated, isolated,<br />

experience based<br />

� Combine with trade initiatives<br />

� Develop positioning<br />

<strong>South</strong> Africa<br />

Kenya<br />

Botswana<br />

<strong>Tourism</strong> Industry Life Cycle<br />

China, India<br />

Australia<br />

� Seek information &<br />

opportunity; discover leisure<br />

� Emergence of packages<br />

(seeking scale effects)<br />

� Emerging specialization /<br />

focus<br />

� Integrate products;<br />

information/choice provider<br />

� “shout”: get as many as you<br />

can<br />

� Facilitate scale effects (e.g.,<br />

packages)<br />

� Very informed, price sensitive,<br />

focus on leisure<br />

� Specialized packages<br />

� High competition<br />

� Clear focus<br />

� Specialization; Information<br />

provider<br />

� Adapt trade and market to<br />

select segments<br />

� Understand segments &<br />

select<br />

* The duration of the four phases of the life cycle may vary significantly; their graphical representation with equal distances may thus be misleading.<br />

Note: Framework based on Michael Porter: Competitive Strategy, 1980, Chapter 8 (Industry Evolution)<br />

USA<br />

Italy<br />

This phase may be very long<br />

Germany, Netherlands,<br />

France, UK, Japan<br />

Time*<br />

14 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

15 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

<strong>SADC</strong> arrivals have increased by 6.5% over the past four years<br />

Ten Thousands<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

435.1 434.3<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

Volume by Year, <strong>SADC</strong> 2002-2005<br />

453.1<br />

525.4<br />

2002 2003 2004 2005<br />

02-05<br />

CAGR<br />

6.5%<br />

16 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Lesotho, Swaziland and Botswana have been the largest source markets<br />

Thousands<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

116<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

CAGR<br />

2002-2005<br />

Angola<br />

3,169<br />

Botswana<br />

5,571<br />

Lesotho<br />

Source: Combined SAT Departure Survey Datasets, 2002-2005<br />

Total Volume: <strong>SADC</strong>, 2002-2005<br />

1,901<br />

Mozambique<br />

18,479<br />

3,341<br />

Swaziland<br />

486<br />

Zambia<br />

2,498<br />

Zimbabwe<br />

140<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

1,258<br />

Other <strong>SADC</strong><br />

Land/<strong>Air</strong><br />

-3.3% 0.6% 12.7% 4.2% 5.2% 1.3% 8.3% 9.6% 1.5%<br />

17 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

<strong>SADC</strong> tourists are most likely to be traveling for General Holiday or VFR<br />

Business shopping and personal shopping are showing the most growth, along with the group<br />

of <strong>SADC</strong> tourists who have visited 10+ times<br />

Percent of arrivals<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

02-05<br />

CAGR<br />

9%<br />

Business<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong>: % of Volume by Purpose<br />

2002-2005 Combined<br />

5%<br />

Business<br />

<strong>Tourism</strong><br />

23%<br />

General<br />

Holiday<br />

14% 15%<br />

Business<br />

Shopping<br />

Personal<br />

Shopping<br />

24%<br />

5% 5%<br />

-21.7% 10.9% -6.7% 34.0% 20.5% 17.7% 18.5% -8.7%<br />

VFR<br />

Medical<br />

Other<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

<strong>SADC</strong>: % of Volume by Times Visited<br />

2002-2005 Combined<br />

7%<br />

First<br />

Time<br />

11%<br />

12%<br />

15%<br />

55%<br />

2-3 Times 4-5 Times 6-9 Times 10+<br />

Times<br />

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g.<br />

visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting,<br />

exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

Percent of arrivals<br />

02-05<br />

CAGR<br />

18 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

1%<br />

Lived in<br />

SA<br />

Before<br />

-10.5% -18.2% -16.5% 11.7% 23.9% -100.0%


Review of arrivals<br />

<strong>SADC</strong> tourists typically earn less than R5,000 per month and are aged 25-44<br />

R5,000 – R9,999 earners and people aged 25 – 34 are showing the most growth; volume of<br />

tourists over 45 is declining<br />

Percent of arrivals<br />

75%<br />

60%<br />

45%<br />

30%<br />

15%<br />

0%<br />

03-05<br />

CAGR<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong>: % of Volume by Income<br />

2003-2005 Combined<br />

64%<br />

21%<br />

< R5 000 R50 00 to<br />

R9 999<br />

9%<br />

R10 000 to<br />

R19 999<br />

4%<br />

R20 000 to<br />

R39 999<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

2%<br />

> R40 000<br />

8.2% 25.8% 9.2% -8.7% -30.9%<br />

Percent of arrivals<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

02-05<br />

CAGR<br />

11%<br />

<strong>SADC</strong>: % of Volume by Age<br />

2002-2005 Combined<br />

33%<br />

31%<br />

15%<br />

19 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

7%<br />

4%<br />

18-24 yrs 25-34 yrs 35-44 yrs 45-54 yrs 55-64 yrs 65+ yrs<br />

5.3% 18.7% 13.2% -6.6% -20.5% -13.6%


Review of arrivals<br />

They are also typically married with children under 18 and traveling via land<br />

Single tourists with no children or no children under 18 and land arrivals are growing<br />

Percent of arrivals<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

02-05<br />

CAGR<br />

<strong>SADC</strong>: % of Volume by Marital Status<br />

2002-2005 Combined<br />

30%<br />

Married<br />

or living<br />

together,<br />

with<br />

children<br />

under 18<br />

10%<br />

24%<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

4%<br />

9%<br />

20%<br />

3%<br />

Married Married Refused Single, Single, Single,<br />

or living or living divorced, divorced, divorced,<br />

together, together, widowed widowed widowed<br />

with no with no<br />

with with no with no<br />

children children children children children<br />

under 18 under 18 under 18<br />

NA -6.6% -27.4% -43.4% -0.1% 7.3% 179.6%<br />

Percent of arrivals<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

03-05<br />

CAGR<br />

02-05<br />

CAGR<br />

<strong>SADC</strong>: % of Volume by Mode of Entry<br />

2002-2005 Combined<br />

8%<br />

92%<br />

<strong>Air</strong> Land<br />

6.3% 10.2%<br />

-30.4% 12.1%<br />

20 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Mozambique and Zimbabwe are the largest contributors to TFDS<br />

This pattern appears to be continue in 2006 as spend started to fall from most <strong>SADC</strong> markets<br />

Rand (Billion)<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

5<br />

0<br />

CAGR<br />

2003-2005<br />

Total Foreign Direct Spend (without Capex) by <strong>SADC</strong> <strong>Market</strong>, 2003-2005<br />

1.0<br />

Angola<br />

12.6 12.0<br />

Botswana<br />

Lesotho<br />

Note: TFDS (excl. capex) without Capex<br />

Source: Combined SAT Departure Survey Datasets, 2003-2005<br />

34.8<br />

Mozambique<br />

9.8<br />

Swaziland<br />

2.6<br />

Zambia<br />

18.4<br />

Zimbabwe<br />

21 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

1.0<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

7.0<br />

Other <strong>SADC</strong><br />

Land/<strong>Air</strong><br />

6.7% 25.7% 12.5% 37.6% 22.5% -5.6% 17.7% 34.0% 56.1%


Review of arrivals<br />

TFDS (without capex) from the <strong>SADC</strong> region increased over 2003 to 2005<br />

Rand (100 Million)<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

272.7<br />

Source: Combined SAT Departure Survey Data, 2003-2005<br />

TFDS (without Capex), <strong>SADC</strong> 2003-2005<br />

304.7<br />

415.6<br />

2003 2004 2005<br />

03-05<br />

CAGR<br />

23%<br />

22 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

The primary drivers were increased volume and spend per day<br />

Rand (100 MM)<br />

500<br />

450<br />

400<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

273<br />

Note: TFDS (excl. capex) without capex<br />

Source: Combined SAT Departure Survey Data, 2003-2005<br />

<strong>SADC</strong> Value Drivers, 2003-2005<br />

83<br />

117<br />

2003 Volume Spend / Day LOS 2005<br />

57<br />

416<br />

23 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Rand<br />

Review of arrivals<br />

Within <strong>SADC</strong>, Mozambique has the highest foreign direct spend per day<br />

3,500 9,000<br />

3,000 4,000<br />

2,500<br />

2,000<br />

1,500<br />

1,000<br />

500<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

CAGR<br />

2003-2005<br />

Angola<br />

TFDS (without Capex) per Day by <strong>SADC</strong> <strong>Market</strong>, 2003–2005<br />

Botswana<br />

Lesotho<br />

Source: Combined SAT Departure Survey Datasets, 2003–2005<br />

Mozambique<br />

Swaziland<br />

Zambia<br />

Zimbabwe<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

2003<br />

2004<br />

2005<br />

Other <strong>SADC</strong><br />

Land / <strong>Air</strong><br />

16.0% 43.3% 25.2% 3.3% 16.3% -12.0% 5.1% 21.8% 3.9%<br />

24 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

It appears to be correlated with an increase in GNI per Capita in most markets<br />

This trend has not held true for Zambia and Angola where spend per day has decreased while<br />

GNI per capita has increased; as a result of steady economic growth, residents of these<br />

countries may be more able to purchase goods within their own country or are visiting other<br />

countries (like Brazil in the case of Angola)<br />

Angola Botswana Lesotho Mozambique Swaziland Zambia Zimbabwe<br />

2002 1,157 783<br />

Spend per day (Rand)<br />

492 1,062 662 1,459 975<br />

2003 615 1,243 450 4,360 734 1,012 925<br />

2004 658 1,356 497 8,196 923 1,006 906<br />

2005 827 2,553 705 6,629 993 783 1,021<br />

Economic Growth (% yoy)<br />

2002 14.4% 5.0% 3.5% 8.2% 2.9% 3.3% -4.4%<br />

2003 3.5% 6.7% 3.1% 7.9% 2.4% 5.1% -10.4%<br />

2004 11.1% 4.9% 3.2% 7.5% 2.1% 5.4% -4.2%<br />

2005 14.7% 3.8% 1.2% 7.7% 1.8% 5.1% -7.1%<br />

Correlation with<br />

spend per day<br />

0.70 -0.63 -0.95 -0.99 -0.96 -0.89 0.02<br />

Annual GNI per Capita (US$)<br />

2002 610 2,700 540 210 1,180 310 890<br />

2003 690 3,500 590 230 1,320 350 920<br />

2004 930 4,380 740 270 1,700 400 620<br />

2005 1,350 5,180 960 310 2,280 490 340<br />

Correlation with<br />

spend per day<br />

-0.23 0.92 0.91 0.80 0.95 -0.88 -0.54<br />

Note: GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the<br />

midyear population.<br />

Source: SAT Departure Survey, World Bank Statistics Database<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

25 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

<strong>Market</strong>s with high GDP are more likely to visit for reasons other than shopping<br />

Percentage of Arrivals<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

11%<br />

5%<br />

16%<br />

2%<br />

3%<br />

37%<br />

9%<br />

18%<br />

24%<br />

14%<br />

17%<br />

4%<br />

11%<br />

<strong>SADC</strong> Countries: % of Volume by Purpose of Visit<br />

2002-2005 Combined<br />

5% 6%<br />

6% 7%<br />

18%<br />

34%<br />

14%<br />

11%<br />

17%<br />

2%<br />

2% 5% 7% 4% 5%<br />

3%<br />

7% 5% 3%<br />

5%<br />

20%<br />

33%<br />

26% 23%<br />

5% 3% 6%<br />

6% 6% 5%<br />

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. visiting a client, signing deals, negotiating<br />

a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Datasets, 2002-2005, World Bank Statistics Database<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

26 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

23%<br />

14%<br />

19%<br />

20%<br />

5%<br />

8%<br />

27%<br />

9%<br />

21%<br />

25%<br />

12%<br />

3%<br />

37%<br />

4%<br />

24%<br />

15%<br />

14%<br />

23%<br />

5%<br />

11% 9%<br />

Angola Botswana Lesotho Mozambique Swaziland Zambia Zimbabwe All <strong>SADC</strong><br />

2005 GDP (US$) 28.0 9.4 1.5 6.6 2.7 7.3 3.4 NA<br />

2005 GNI / Capita<br />

(US$)<br />

2005 Economic<br />

Growth Rate<br />

1,350 5,180 960 310 2,280 490 340 NA<br />

14.7% 3.8% 1.2% 7.7% 1.8% 5.1% -7.1% NA<br />

Other<br />

Health/medical<br />

VFR<br />

Personal Shopping<br />

Business Shopping<br />

General Holiday<br />

Business <strong>Tourism</strong><br />

Business


Rand Billion<br />

Review of arrivals<br />

In <strong>SADC</strong> the majority of value is captured by <strong>South</strong> Africa<br />

A very high percentage of value has been captured for tourists from Botswana, Lesotho,<br />

Mozambique, Swaziland and Zimbabwe<br />

50<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

1.5<br />

1.0<br />

Angola<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Total Value (Prepaid vs. Foreign Direct Spend) by <strong>Market</strong> (<strong>SADC</strong>), 2003-2005<br />

0.5<br />

13.6 12.8<br />

1.0 0.8<br />

12.6 12.0<br />

Botswana<br />

Lesotho<br />

36.4<br />

1.6<br />

34.8<br />

Mozambique<br />

10.9<br />

1.1<br />

9.8<br />

Swaziland<br />

3.6<br />

2.6<br />

Zambia<br />

0.9<br />

20.4<br />

2.0<br />

18.4<br />

Zimbabwe<br />

1.6<br />

1.0<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

0.5<br />

27 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

9.0<br />

2.0<br />

7.0<br />

Other <strong>SADC</strong><br />

Land/<strong>Air</strong><br />

66.7% 93.0% 93.6% 95.7% 90.3% 73.6% 90.2% 67.2% 77.9%<br />

Source: Combined SAT Departure Survey Datasets, 2003-2005<br />

Percentage of<br />

Total <strong>Market</strong><br />

Value Captured<br />

(’03-’05)<br />

Prepaid<br />

Spend<br />

Total Foreign<br />

Direct Spend<br />

without Capex


Review of arrivals<br />

Average spend per day was the highest for personal and business shoppers<br />

Spend (Rand)<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Value / Volume<br />

(03-05)<br />

Percent of<br />

Volume (03-05)<br />

Average TFDS excl. capex per Day by Purpose of Travel, 2003-2005<br />

1,288<br />

Business<br />

1,094 937<br />

Business<br />

<strong>Tourism</strong><br />

General<br />

Holiday<br />

404<br />

Visiting friends<br />

/ relatives<br />

1,002<br />

Health /<br />

medical<br />

294<br />

Other<br />

3,565<br />

Shopping -<br />

buying goods,<br />

personal use<br />

5,376<br />

Shopping -<br />

buying goods,<br />

business use<br />

1.02 0.63 0.99 0.41 0.70 0.45 1.41 1.94<br />

6.25% 5.02% 20.95% 26.13% 5.37% 4.38% 15.99% 15.91%<br />

Note: TFDS (excl. capex) without capex; Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or<br />

activities that are related to one’s job e.g. visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose<br />

of attending a conference, meeting, exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Dataset, 2003-2005<br />

28 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

<strong>SADC</strong> tourists mostly buy clothing and groceries as well as media and jewelry<br />

Hundred Thousands<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

100<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Clothing<br />

Volume of Tourists Purchasing Items, 2002-2005 (<strong>SADC</strong>)<br />

84<br />

Groceries<br />

28<br />

Media<br />

16 15 13 13<br />

Jewellery<br />

Nothing<br />

Appliances<br />

Curios/crafts<br />

10 8<br />

Motor vehicle<br />

spares<br />

Hardware<br />

4 2<br />

02-05 CAGR 42% 65% 354% 40% 179% 140% 90% 56% 250% 81% 110%<br />

03-05 CAGR 21% 9% 47% 14% -2% 29% 54% 29% 37% 53% 3%<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

29 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Motor vehicle<br />

Furniture


Review of arrivals<br />

Tourists purchase clothing, groceries, media and jewelry<br />

And Zimbabwean tourists are more likely to purchase appliances, motor vehicle spares and<br />

hardware while Botswana tourists are more likely to purchase motor vehicles and Mozambicans<br />

are more likely to purchase furniture<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Clothing<br />

Groceries<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Media<br />

Volume Tourists Purchasing Items, 2002-2005<br />

Nothing<br />

Jewellery<br />

Note: Excludes shopping, nightlife, and social activities<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

Appliances<br />

Curios/crafts<br />

Motor vehicle<br />

spares<br />

Hardware<br />

Motor vehicle<br />

Furniture<br />

Medical<br />

equipment<br />

/ medicines<br />

30 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Gifts/toys<br />

Zimbabwe<br />

Zambia<br />

Swaziland<br />

Mozambique<br />

Lesotho<br />

Botswana<br />

Angola


Review of arrivals<br />

Beach, cultural attractions, business and trading are top activities<br />

Hundred Thousands<br />

30<br />

25<br />

20<br />

15<br />

10<br />

26<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

5<br />

0<br />

Beach<br />

Volume of Tourists by Activity w/in <strong>South</strong> Africa, 2002-2005 (<strong>SADC</strong>)<br />

25<br />

Cultural,<br />

historical<br />

and heritage<br />

24<br />

Business<br />

22<br />

Trading<br />

Note: Excludes shopping, nightlife and social<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

22<br />

Visited a Casino<br />

19<br />

Wildlife<br />

13 12<br />

Sporting<br />

Visiting natural<br />

attractions<br />

10<br />

Medical<br />

9<br />

Theme parks<br />

5 5<br />

Health<br />

31 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Adventure<br />

2<br />

None


Review of arrivals<br />

Tourists from the landlocked countries are most likely to visit the beach<br />

Lesotho tourists are likely to visit cultural attractions while many Mozambicans trade while in<br />

<strong>South</strong> Africa<br />

Percentage<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Adventure<br />

Beach<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Business<br />

Cultural,<br />

historical<br />

Volume Tourists by Activities, 2002-2005<br />

Health<br />

Medical<br />

Note: Excludes shopping, nightlife, and social activities<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

Nightlife<br />

None<br />

Shopping<br />

Social<br />

Sporting<br />

Theme parks<br />

Trading<br />

Visited a Casino<br />

Visiting natural<br />

attractions<br />

32 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Wildlife<br />

Zimbabwe<br />

Zambia<br />

Swaziland<br />

Mozambique<br />

Lesotho<br />

Botswana<br />

Angola


Review of arrivals<br />

<strong>SADC</strong> tourists are much less seasonal than tourists from other markets<br />

However, the seasonality trends of <strong>SADC</strong> tourists worsened from 2003 to 2005<br />

Indexed to average<br />

arrivals per month<br />

0.8<br />

0.6<br />

0.4<br />

0.2<br />

-0.2<br />

-0.4<br />

-0.6<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

<strong>SADC</strong>, UK and All Arrivals Monthly Index, 2003-2005<br />

<strong>SADC</strong><br />

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

Volume<br />

2003 2004 2005<br />

<strong>SADC</strong> UK All <strong>South</strong> Africa Arrivals<br />

03 SI 1.0% 10.4% 1.0%<br />

04 SI 1.8% 12.5% 1.7%<br />

05 SI 1.6% 8.3% 1.6%<br />

All<br />

UK<br />

33 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Botswana’s seasonality index is highest, while Zimbabwe is the lowest<br />

Seasonality Index<br />

10%<br />

8%<br />

6%<br />

4%<br />

2%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Seasonality Index, 2003-2005<br />

Botswana<br />

Lesotho<br />

Mozambique<br />

Swaziland<br />

Zimbabwe<br />

0%<br />

2003 2004 2005<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

34 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

<strong>SADC</strong> has a very high percentage of repeat visitors<br />

10+ time visitors make up the bulk of <strong>SADC</strong> tourists, this group also showed the highest<br />

increase in volume over the period under review<br />

Ten Thousands of arrivals<br />

700<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

9<br />

% Repeat Visitors<br />

89%<br />

128<br />

45<br />

58<br />

58<br />

36<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

97% 96%<br />

32<br />

270<br />

255<br />

68<br />

24<br />

40<br />

44<br />

34<br />

37<br />

25<br />

34<br />

14 16 29<br />

Total Volume by Year, 2002-2005k<br />

94%<br />

308<br />

2002 2003 2004 2005<br />

Note: Repeat visitors exclude business travelers<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

79<br />

120%<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Lived in SA<br />

before<br />

10+ Times<br />

6-9 Times<br />

4-5 Times<br />

2-3 Times<br />

First Time<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

1,644<br />

41<br />

154<br />

95<br />

35 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

962<br />

216<br />

176<br />

All years<br />

02-05<br />

CAGR<br />

13.79%<br />

-100.0%<br />

34%<br />

20.4%<br />

-11.1%<br />

-13.8%<br />

-7.3%


Review of arrivals<br />

With the exception of 6-9 time visitors, <strong>SADC</strong> repeaters spend more per trip<br />

Rand<br />

9,000<br />

8,000<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

6,534<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Total Foreign Direct Spend (2003-2005) per trip (<strong>SADC</strong>)<br />

7,212<br />

7,801<br />

5,262<br />

8,229<br />

First Time 2-3 Times 4-5 Times 6-9 Times 10+ Times<br />

Note: Repeat visitors exclude business travelers; TFDS (excl. capex) without capex<br />

Source: Combined SAT Departure Survey Dataset, 2003-2005<br />

36 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Repeat tourists mostly buy clothing, groceries and media<br />

First time visitors primarily purchase the same items, though they are slightly more likely to<br />

also purchase jewelry or curios/crafts<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Clothing<br />

Groceries<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Media<br />

Jewellery<br />

Volume Tourists Purchasing Items, 2002-2005<br />

Curios/crafts<br />

Appliances<br />

Note: Repeat visitors exclude business travelers<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

Nothing<br />

Motor<br />

vehicle spares<br />

Hardware<br />

Motor vehicle<br />

Furniture<br />

Medical<br />

equipment /<br />

Gifts / toys<br />

Sporting /<br />

camping<br />

37 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Fuel<br />

10+ Times<br />

6-9 Times<br />

4-5 Times<br />

2-3 Times<br />

First Time


Review of arrivals<br />

First time tourists stay the longest while 6th-9th time visitors stay the shortest<br />

Nights<br />

7.73<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

9<br />

8<br />

7<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

6.72<br />

Average Length of Stay (2002-2005)<br />

7.08<br />

First Time 2-3 Times 4-5 Times 6-9 Times 10+ Times All Repeat<br />

Visitors<br />

Note: Repeat visitors exclude business travelers<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

5.29<br />

6.35<br />

6.45<br />

38 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Most <strong>SADC</strong> arrivals visit Gauteng and the province they are closest to<br />

Thousands<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Angola<br />

Botswana<br />

Volume by Province: <strong>Market</strong> (<strong>SADC</strong>), 2002-2005<br />

Lesotho<br />

Mozambique<br />

Source: Combined SAT Departure Survey Datasets, 2002-2005<br />

Swaziland<br />

Zambia<br />

Zimbabwe<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

Other <strong>SADC</strong><br />

Land/<strong>Air</strong><br />

Free State<br />

Northern Cape<br />

North West<br />

Limpopo<br />

Mpumalanga<br />

KwaZulu Natal<br />

Eastern Cape<br />

Western Cape<br />

Gauteng<br />

39 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Most <strong>SADC</strong> arrivals (%) visit Gauteng and the province they are closest to<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Angola<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Botswana<br />

Volume by Province: <strong>Market</strong> (<strong>SADC</strong>), 2002-2005<br />

Lesotho<br />

Mozambique<br />

Source: Combined SAT Departure Survey Datasets, 2002-2005<br />

Swaziland<br />

Zambia<br />

Zimbabwe<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

Other <strong>SADC</strong><br />

Land/<strong>Air</strong><br />

Free State<br />

Northern Cape<br />

North West<br />

Limpopo<br />

Mpumalanga<br />

KwaZulu Natal<br />

Eastern Cape<br />

Western Cape<br />

Gauteng<br />

40 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Four provinces benefit the most from travel from neighboring countries<br />

Gauteng and KwaZulu Natal are also popular destinations for <strong>SADC</strong> tourists despite these<br />

provinces not necessarily neighboring the <strong>SADC</strong> country<br />

Top 2 frequently visited provinces<br />

by country* (2002-2005)<br />

� Angola<br />

� Zambia<br />

Note: Excludes Gauteng<br />

Source: SAT Departure Survey<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Northern Cape<br />

Western Cape<br />

� Botswana<br />

Gauteng<br />

North West<br />

Free State<br />

� Lesotho<br />

Eastern Cape<br />

Limpopo<br />

Mpumalanga<br />

KwaZulu<br />

Natal<br />

� Zimbabwe<br />

� Angola<br />

Total Volume of<br />

<strong>SADC</strong> Tourists (02-<br />

05)<br />

Less 1M%<br />

1MM-2MM%<br />

2MM-2.5MM%<br />

2.5MM-5MM<br />

>5MM<br />

Source Countries<br />

� Mozambique<br />

� Swaziland<br />

� Botswana<br />

� Lesotho<br />

� Mozambique<br />

� Swaziland<br />

� Zambia<br />

� Zimbabwe<br />

41 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Most nights are in unpaid accommodation, with the exception of Mozambique<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Percentage of Nights Spent in Paid vs. Unpaid Accommodation, 2002-2005 (<strong>SADC</strong>)<br />

40%<br />

10%<br />

50%<br />

63%<br />

8%<br />

29%<br />

32%<br />

6%<br />

62%<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

59% 62%<br />

10%<br />

31%<br />

17%<br />

21%<br />

54%<br />

11%<br />

34%<br />

Botswana Lesotho Mozambique Swaziland Zimbabwe All <strong>SADC</strong><br />

None (Friends /<br />

Family)<br />

Mid (B&B,<br />

Backpack, Self-<br />

Cater, Camping)<br />

High (Hotel, Game<br />

Lodge, Guest<br />

House, Train/Ship)<br />

42 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

The top reason for visiting <strong>South</strong> Africa is to relax and escape<br />

Thousands<br />

1,200<br />

1,000<br />

800<br />

600<br />

400<br />

200<br />

979<br />

895<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

To be able to relax and<br />

Value for money<br />

Volume of Tourists by Reasons for Visiting SA, 2002-2005 (<strong>SADC</strong>)<br />

879<br />

874<br />

Good pricing for<br />

723<br />

620<br />

619<br />

559<br />

551<br />

526<br />

506<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

Availability of a wide<br />

The scenic beauty<br />

Experiencing a different<br />

<strong>South</strong> Africa's<br />

Good variety of<br />

Diversity of attractions<br />

<strong>South</strong> Africa's different<br />

The climate<br />

462<br />

453<br />

Business opportunities<br />

<strong>South</strong> Africa after<br />

278<br />

Family/friends<br />

255<br />

249<br />

Exploring my heritage<br />

The wildlife<br />

231<br />

221<br />

Business/investment<br />

Medical facilities<br />

198<br />

Exploring potential<br />

75<br />

Nothing specific<br />

21<br />

Religious reasons<br />

14<br />

13<br />

10<br />

9<br />

Sport<br />

Study/education<br />

Employment/job<br />

Shopping<br />

7<br />

6<br />

5<br />

4<br />

4<br />

2<br />

2<br />

1<br />

1<br />

0<br />

0<br />

Had no choice<br />

Friendly people<br />

Stop over<br />

All the Reasons<br />

Good food/restaurants<br />

43 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Good service<br />

Curiosity<br />

Recommendation/advice<br />

Experience from<br />

Voluntary work<br />

Collection of visa<br />

Similar time region/ no


Review of arrivals<br />

<strong>SADC</strong> tourists were satisfied with the scenic beauty, hospitality and friendliness<br />

I had no outstanding experience<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Volume of Tourists by Satisfaction with SA, 2002-2005 (<strong>SADC</strong>)<br />

The scenic beauty<br />

Hospitality and friendly people<br />

Good infrastructure<br />

Visiting family/friends<br />

Good serivce<br />

Value for money<br />

The wildlife/game parks/safari<br />

Shopping<br />

The diverse experience<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

257<br />

426<br />

509<br />

754<br />

858<br />

997<br />

1,056<br />

1,235<br />

1,333<br />

1,684<br />

Top Ten Reasons<br />

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800<br />

Thousands<br />

44 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

First time visitors are most satisfied with the scenic beauty and wildlife<br />

Repeat visitors are more likely to have no outstanding experience, however, all visitors still list<br />

the scenic beauty as one of the top reasons for satisfaction<br />

Thousands<br />

1200<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Volume of Tourists by Satisfaction with SA and Times Visited, 2002-2005 (<strong>SADC</strong>)<br />

84 82 74<br />

The scenic beauty<br />

The wildlife/game parks/safari<br />

Hospitality and friendly people<br />

117 96 95<br />

Note: Repeat visitors exclude business travelers; TFDS (excl. capex) without capex<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

The scenic beauty<br />

Hospitality and friendly people<br />

I had no outstanding experience<br />

140 133 122<br />

The scenic beauty<br />

I had no outstanding experience<br />

Hospitality and friendly people<br />

336<br />

I had no outstanding experience<br />

192 174<br />

Hospitality and friendly people<br />

The scenic beauty<br />

45 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

945<br />

I had no outstanding experience<br />

746 714<br />

First Time 2-3 Time 4-5 Time 6-9 Time 10+ Time<br />

The scenic beauty<br />

Visiting family/friends


Review of arrivals<br />

General Holiday visitors are most satisfied with scenic beauty and wildlife<br />

Whilst many people stated that they had no outstanding experience; shoppers were satisfied<br />

with the good value for money<br />

Thousands<br />

1200<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

Volume of Tourists by Satisfaction with SA and Purpose of Visit, 2002-2005 (<strong>SADC</strong>)<br />

124 91 85 99 75 67<br />

I had no outstanding experience<br />

Good infrastructure<br />

Hospitality and friendly people<br />

Business<br />

I had no outstanding experience<br />

The scenic beauty<br />

Business<br />

Business<br />

<strong>Tourism</strong><br />

470<br />

The scenic beauty<br />

286 249<br />

The wildlife/game parks/safari<br />

Hospitality and friendly people<br />

General<br />

Holiday<br />

625<br />

Visiting family/friends<br />

434 387<br />

109 102 100<br />

296 268 245<br />

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. visiting a client, signing deals,<br />

negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

46 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

I had no outstanding experience<br />

VFR<br />

The scenic beauty<br />

I had no outstanding experience<br />

Good medical facilities<br />

Health /<br />

Medical<br />

Good serivce<br />

I had no outstanding experience<br />

Good infrastructure<br />

Value for money<br />

Personal<br />

Shopping<br />

405<br />

I had no outstanding experience<br />

207 172<br />

Value for money<br />

Business<br />

Shopping<br />

Good serivce


Review of arrivals<br />

VFR tourists contributed the most to volume while shoppers to revenue<br />

Total Volume (02-05)<br />

(% of Total Volume)<br />

Total Volume (03-05)<br />

(% of Total Volume)<br />

TFDS excl. Capex (03-05)<br />

(% of TFDS excl. Capex)<br />

Average Spend / Day<br />

(03-05)<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Business Business<br />

<strong>Tourism</strong><br />

1.56MN<br />

(8%)<br />

0.88MN<br />

(6.3%)<br />

R6.34BN<br />

(6.4%)<br />

.90MN<br />

(5%)<br />

0.71MN<br />

(5.0%)<br />

R3.16BN<br />

(3.2%)<br />

General<br />

Holiday<br />

4.26MN<br />

(23%)<br />

2.96MN<br />

(20.9%)<br />

R20.5BN<br />

(20.6%)<br />

VFR<br />

4.49MN<br />

(24%)<br />

3.69MN<br />

(26.1%)<br />

R10.5BN<br />

(10.6%)<br />

Health /<br />

Medical<br />

.91MN<br />

(5%)<br />

.76MN<br />

(5.4%)<br />

R3.75BN<br />

(3.8%)<br />

Other<br />

.93MN<br />

(5%)<br />

.62MN<br />

(4.4%)<br />

R1.98BN<br />

(2%)<br />

Shopping<br />

– Buying<br />

goods for<br />

personal<br />

use<br />

2.81MN<br />

(15%)<br />

2.26MN<br />

(16.0%)<br />

R22.5BN<br />

(22.6%)<br />

Shopping<br />

– Buying<br />

goods for<br />

business<br />

use<br />

2.60MN<br />

(14%)<br />

2.25MN<br />

(15.9%)<br />

R30.6BN<br />

(30.8%)<br />

R1,288 R1,094 R937 R404 R1,002 R294 R3,565 R5,376<br />

Note: Spend without Capex; Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are<br />

related to one’s job e.g. visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a<br />

conference, meeting, exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005; Spend analysed over the 2003-2005 period<br />

47 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Review of arrivals<br />

Overall <strong>SADC</strong> arrivals contributed almost R100billion to SA from 2003 - 2005<br />

Total Volume (02-05)<br />

(Percent of <strong>SADC</strong> Volume)<br />

Total Volume (03-05)<br />

(Percent of <strong>SADC</strong> Volume)<br />

TFDS excl. Capex (03-05)<br />

(Percent of <strong>SADC</strong> TFDS<br />

excl. Capex)<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Botswana Lesotho Mozambique Swaziland Zimbabwe All <strong>SADC</strong><br />

3.2M<br />

(17.3%)<br />

2.4M<br />

(16.9%)<br />

R12.6BN<br />

(12.7%)<br />

5.6M<br />

(30.3%)<br />

4.4M<br />

(31.2%)<br />

R12.0BN<br />

(12.1%)<br />

1.9M<br />

(10.3%)<br />

1.4M<br />

(9.7%)<br />

R34.8BN<br />

(35%)<br />

3.3M<br />

(17.8%)<br />

2.6M<br />

(18.1%)<br />

R9.8BN<br />

(9.9%)<br />

2.5M<br />

(13.5%)<br />

1.9M<br />

(13.4%)<br />

R18.4BN<br />

(18.5%)<br />

All longhaul<br />

<strong>Market</strong>s<br />

18.5M 8.5M<br />

14.1M 6.4M<br />

R99.3BN R56.1BN<br />

Average Spend / Day (03-05) R1,664 542 R6,240 R889 R958 R1,269 R592<br />

Total Prepaid Spend<br />

(03-05)<br />

TFDS excl. Capex to Prepaid<br />

Spend (03-05)<br />

R0.95BN R0.81BN R1.58BN R1.05BN R1.99BN R10.4BN R80.7BN<br />

13.3 14.7 22.1 9.4 9.2 9.6 0.70<br />

2005 Average length of stay 4.34 6.14 4.21 5.08 9.97 6.25 16.48<br />

Avg number of provinces<br />

visited (2005)<br />

1.1 1.0 1.3 1.1 1.4 1.2<br />

Note: Spend without Capex<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005; Spend analysed over 2003-2005 period<br />

48 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

49 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> General Holiday tourists are the most attractive group for SAT’s overall<br />

goals, although personal and business shoppers are also attractive<br />

Individual<br />

Rankings<br />

against<br />

Objectives<br />

(1 = Worst,<br />

5 = Best)<br />

High<br />

Ease of<br />

Influence<br />

Low<br />

5.0<br />

4.0<br />

3.0<br />

2.0<br />

1.0<br />

0.0<br />

0.0 2.0 4.0<br />

(6.3)<br />

6.0 8.0 10.0<br />

Low Contribution to SAT’s Goals<br />

High<br />

Business<br />

Business<br />

<strong>Tourism</strong><br />

General<br />

Holiday<br />

Visiting<br />

friends/rela<br />

tives<br />

Health/medical<br />

Shopping -<br />

personal use<br />

Shopping -<br />

business use<br />

Total Volume 2 1 4 5 2 3 3 1<br />

TFDS (ex. capex) / Day 3 3 2 1 2 4 5 1<br />

LOS 3 2 4 3 2 1 1 5<br />

Geographic Spread 4 3 5 3 1 2 1 2<br />

Seasonality Index ( 5 =<br />

Worst, 1 = Best)<br />

Attractiveness Matrix (<strong>SADC</strong>)<br />

Shopping - buying<br />

goods for personal use<br />

Health/medical<br />

(3.8)<br />

(22.5)<br />

Other<br />

(2.0)<br />

Business <strong>Tourism</strong><br />

(3.2)<br />

Business<br />

General Holiday<br />

Size represents<br />

TFDS (10 BN<br />

Rands)<br />

Color represents<br />

change in TFDS<br />

from 03-05 (red:<br />

negative, green:<br />

positive)<br />

3 4 1 2 2 5 1 3<br />

Highest<br />

Ranking<br />

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. visiting a client, signing deals, negotiating<br />

a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Data, 2003-2005<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

50 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

(20.5)<br />

Shopping - buying goods<br />

for business use<br />

(30.6)<br />

Visiting friends/relatives<br />

(10.5)<br />

Other


Most <strong>SADC</strong> countries make significant contributions to both air and land<br />

arrivals in <strong>South</strong> Africa<br />

Predominantly<br />

Land <strong>Market</strong>s<br />

Land and <strong>Air</strong><br />

<strong>Market</strong>s<br />

Predominantly<br />

<strong>Air</strong> <strong>Market</strong>s<br />

Source: SAT Arrivals Statistics, Monitor Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong> Contributors to <strong>Air</strong> and Land Arrivals in <strong>South</strong> Africa, 2006<br />

Country<br />

<strong>Air</strong> Arrivals<br />

2006<br />

Land Arrivals<br />

2006<br />

% Contribution<br />

to <strong>SADC</strong> <strong>Air</strong><br />

Arrivals<br />

% Contribution<br />

to <strong>SADC</strong> Land<br />

Arrivals<br />

Lesotho 6,920 1,726,365 2.2% 31.2%<br />

Swaziland 7,443 845,193 2.3% 15.3%<br />

Botswana 28,719 736,070 9.1% 13.3%<br />

Malawi 18,718 105,952 5.9% 1.9%<br />

Mozambique 24,372 901,480 7.7% 16.3%<br />

Namibia 44,387 179,777 14.0% 3.2%<br />

Zambia 53,849 106,792 17.0% 1.9%<br />

Zimbabwe 67,728 918,710 21.4% 16.6%<br />

Angola 27,351 1,597 8.6% 0. %<br />

DRC 14,735 6,661 4.7% 0.1%<br />

Mauritius 12,758 1,384 4.0% 0%<br />

Tanzania 9,766 3,373 3.1% 0.1%<br />

51 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong><br />

Summary<br />

Land travel is<br />

dominated by key<br />

markets<br />

Land travellers are<br />

important for many<br />

Provinces<br />

“Purpose”<br />

exceeds pure<br />

leisure as a driver<br />

of travel<br />

An emerging<br />

traveller<br />

segmentation has<br />

been developed<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Neighbouring <strong>SADC</strong> markets in particular are the key land markets for<br />

<strong>South</strong> Africa<br />

� Only three provinces rely mostly on air arrivals, whilst the remainder rely on<br />

land arrivals from neighbouring <strong>SADC</strong><br />

� Typically 50% of a province’s tourism income is driven by land arrivals<br />

� Nearly 50% of all land arrivals cite either VFR or business as their primary<br />

purpose of travel<br />

� Land travellers mostly seek an urban experience<br />

� Six “segments” have been identified within the <strong>SADC</strong> land market<br />

� Growth opportunities have been identified within these segments<br />

� However, certain key barriers need to be addressed for growth<br />

52 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

53 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong> – Source <strong>Market</strong>s<br />

The neighbouring <strong>SADC</strong> countries are the key land markets for SA<br />

Percentage of travellers<br />

High<br />

Medium<br />

Low<br />

Very Low<br />

Distribution of travellers in the Land Border Posts<br />

GHANA<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

NIGERIA<br />

KENYA<br />

DEMOCRATIC<br />

REPUBLIC<br />

OF THE CONGO<br />

TANZANIA<br />

ANGOLA<br />

NAMIBIA<br />

ZIMBABWE<br />

BOTSWANA MOZAMBIQUE<br />

SOUTH<br />

AFRICA<br />

EGYPT<br />

ZAMBIA<br />

LESOTHO<br />

ETHIOPIA<br />

MALAWI<br />

SWAZILAND<br />

SEYCHELLES<br />

MAURITIUS<br />

Key <strong>Market</strong>s<br />

� The land market is dominated by<br />

the <strong>SADC</strong> markets<br />

� Neighbouring <strong>SADC</strong> markets in<br />

particular are the key land markets<br />

for <strong>South</strong> Africa<br />

� All <strong>SADC</strong> markets where more than<br />

60% of arrivals are by land are<br />

considered to be land markets (ie<br />

medium to high)<br />

54 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>s<br />

<strong>SADC</strong> land arrivals are important for many Provinces<br />

The importance of land travellers to many provinces should not be underestimated<br />

% Calculated Attributable<br />

Revenue to the Provinces<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Gauteng<br />

% Tourist Spend Per Province Broken Down By Mode (2000/2001)<br />

Western Cape<br />

Kwazulu Natal<br />

Mpumalanga<br />

Eastern Cape<br />

Northern<br />

Province<br />

North West<br />

Northern Cape<br />

55 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Free State<br />

Land arrivals<br />

<strong>Air</strong> Arrivals<br />

Note: Spend has been attributed to land and air arrivals, the long-haul arrivals may however be people who have arrived by air, crossed the border and are<br />

now re-entering <strong>South</strong> Africa. Alternatively they may be expatriates.<br />

Source: Monitor Analysis; Foreign Visitor Departure Survey, 2000 & 2001, Statistics <strong>South</strong> Africa, World <strong>Tourism</strong> Organization


<strong>SADC</strong> Land <strong>Market</strong><br />

Purpose- driven travel is the dominant driver of arrivals<br />

Whilst shopping is an important driver of travel, it tends to be more significant as<br />

a secondary purpose of travel<br />

Arrivals to <strong>South</strong> Africa<br />

(% of Total)<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

VFR<br />

Note: Non-<strong>African</strong> land travellers are travellers who have indicated a residence in a country outside of Africa<br />

Source: Land Border Post Survey 2001, Plus 94 Harris Analysis, Monitor Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Primary Purpose of Travel to <strong>South</strong> Africa of <strong>African</strong> Land Travellers, 2001<br />

Business<br />

General Holiday<br />

Shopping<br />

Seeking Employment<br />

Medical Treatment<br />

Others<br />

Convention/Conference<br />

Informal Trading<br />

56 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Educational<br />

Funeral/Wedding<br />

Special Int. Holiday


<strong>SADC</strong> Land <strong>Market</strong><br />

Land travellers seek an urban experience<br />

Revenues from shopping represents a major opportunity for provinces to capitalise on<br />

existing infrastructure which may currently be under utilised<br />

Activities in <strong>South</strong> Africa<br />

(% of Total)<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Mall Shopping<br />

Restaurant<br />

Casino<br />

Source: Land Border Post Survey 2001, Plus 94 Harris Analysis, Monitor Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Overall Activities in <strong>South</strong> Africa of <strong>African</strong> and Non-<strong>African</strong> Land Border Travellers, 2001<br />

Nightclub<br />

Trade-Suppliers<br />

Township<br />

Craft <strong>Market</strong><br />

Attended Sports Event<br />

Medical<br />

Trade-Customers<br />

Conference<br />

Live Show<br />

Nature Reserve<br />

Beach<br />

Sports Activities<br />

Aquarium<br />

Museum<br />

Game Viewing<br />

Cultural Village<br />

Botanical Garden<br />

Art Gallery<br />

57 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

Adventure Activity<br />

Rail Trip<br />

Study Tour<br />

Wine Farm<br />

Health Hydro<br />

Fishing


<strong>SADC</strong> Land <strong>Market</strong><br />

Portfolio choices in a changing <strong>SADC</strong> market<br />

In the face of what seems to be an inexorable decline in numbers of traders over time, <strong>South</strong><br />

Africa is faced with the challenge of shuffling its portfolio to maximum benefit<br />

HIGH<br />

Number of<br />

arrivals per<br />

year<br />

LOW<br />

= total value contribution of the broad typology<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

VFR market<br />

LOW<br />

Spend per trip<br />

Trader market<br />

Leisure market<br />

HIGH<br />

58 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>: Leisure<br />

Three leisure groups identified: 960,000 people, 1.92mn trips and R15,1bn<br />

spend<br />

General<br />

Holiday<br />

VFR<br />

Shopping —<br />

Personal Use<br />

Religion<br />

Study<br />

Medical<br />

Age 18–24 25–34 35–44 45–54<br />

Income Low Med Low Med High Low Med High Med High<br />

Private Car<br />

Mini Bus /<br />

Taxi<br />

Commercial<br />

Bus<br />

Private Car<br />

Mini Bus /<br />

Taxi<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

5&10<br />

Trips: 339,657<br />

Private Car<br />

Individuals: 383,000<br />

Spend: 10,226<br />

Value: R1,784mn<br />

Mini Bus /<br />

Taxi<br />

2&8 3&9<br />

Trips: 1,043,624<br />

Individuals: 310,000<br />

Spend: 14,141<br />

Value: R7,122mn<br />

Trips: 539,617<br />

Individuals: 267,000<br />

Spend: 29,717<br />

Value: R6,167mn<br />

Note: Black cells represent no travellers, There are no typologies 13 and 15 as they were group with typology 5<br />

55–64 65+<br />

59 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>: Leisure<br />

Demographics of identified traveller groups<br />

Traveller Group Well-to-do Leisurers Shopping Brigade<br />

Country of<br />

Residence*<br />

Gender<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Botswana (30%), Mozambique<br />

(21%), Swaziland (17%),<br />

Zimbabwe (13%), Lesotho<br />

(11%), Namibia (6%), Zambia<br />

(1%), Malawi (1%)<br />

70% Male<br />

30% Female<br />

Botswana (36%), Swaziland<br />

(22%), Lesotho (18%),<br />

Mozambique (12%), Zimbabwe<br />

(8%), Namibia (4%), Zambia<br />

(1%), Malawi (1%)<br />

60% Male<br />

40% Female<br />

Young Up and Coming<br />

travellers<br />

Lesotho (49%), Swaziland<br />

(29%), Botswana (16%),<br />

Zimbabwe (1%), Mozambique<br />

(1%), Namibia (1%), Zambia<br />

(1%), Malawi (1%)<br />

45% Male<br />

55% Female<br />

Age 35-44 25-44 25-34<br />

Income R10,000+ R1,000 – R10,000 R1,000 – R5,000<br />

Life Stage 80% Married with kids 60% Married with kids<br />

* Malawi and Zambia make up about 1% of all three traveller groups<br />

Source: LBPS, 2003<br />

40% Married with kids<br />

50% single<br />

60 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>: Leisure<br />

Their behaviour when travelling to <strong>South</strong> Africa<br />

Traveller Group Well-to-do Leisurers Shopping Brigade<br />

Purpose of Travel<br />

Mode of Transport to<br />

<strong>South</strong> Africa<br />

Travelling<br />

Group<br />

Provinces<br />

Visited<br />

Average<br />

Number of<br />

Provinces<br />

Source: LBPS, 2003<br />

GH / VFR<br />

Shopping<br />

GH / VFR<br />

Shopping<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

76% General holiday<br />

17% Shopping<br />

7% VFR<br />

42% Shopping<br />

30% General holiday<br />

27% VFR<br />

Young Up and Coming<br />

travellers<br />

67% VFR<br />

25% Shopping<br />

8% General holiday<br />

Private Car Private Car Taxi<br />

47% with partner<br />

30% with family<br />

42% with partner<br />

30% alone<br />

32% Gauteng<br />

23% Western Cape<br />

46% Gauteng<br />

13% North West<br />

39% with partner<br />

23% alone<br />

39% with partner<br />

34% alone<br />

36% Gauteng<br />

22% Western Cape<br />

41% Gauteng<br />

24% North West<br />

71% alone<br />

77% Alone<br />

40% Free State<br />

33% Gauteng<br />

59% Gauteng<br />

GH / VFR 1 1 1<br />

Shopping 1 1 1<br />

61 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>: Leisure<br />

Their behaviour when travelling to <strong>South</strong> Africa<br />

Traveller Group Well-to-do Leisurers Shopping Brigade<br />

Lead Time<br />

Before<br />

Booking<br />

Length of<br />

Stay<br />

Accommodation<br />

Spend per<br />

Trip<br />

Items<br />

Bought<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Young Up and Coming<br />

travellers<br />

GH / VFR 5.6 Weeks 4.3 Weeks 2.6 Weeks<br />

Shopping 4.3 Weeks 3.1 Weeks 3.3 Weeks<br />

GH / VFR 4 Days 2 Days 2 Days<br />

Shopping 4 Days 2 Days 3 Days<br />

GH / VFR<br />

Shopping<br />

49% Hotel<br />

31% FR<br />

44% FR<br />

37% Hotel<br />

68% FR<br />

20% Hotel<br />

43% FR<br />

34% Hotel<br />

89% FR<br />

57% FR<br />

29% Hotel<br />

GH / VFR R11,800 R7,300 R1,600<br />

Shopping R22,000 R10,000 R5,700<br />

GH / VFR<br />

Shopping<br />

Source: LBPS, 2003; *FR: Friends and Relatives<br />

31% Clothing<br />

30% Groceries<br />

33% Groceries<br />

19% Clothing<br />

69% Groceries<br />

62% Clothing<br />

68% Clothing<br />

63% Groceries<br />

38% Clothing<br />

35% Groceries<br />

54% Clothing<br />

34% Groceries<br />

62 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Well-to-do Leisurers: Leisure Travellers<br />

Segment Overview<br />

Well-to-do<br />

Leisurers<br />

Knowledge of SA<br />

No knowledge 2%<br />

Little knowledge 33%<br />

Well informed 47%<br />

Very well informed 18%<br />

Future Travel (Top 5)<br />

SA 32%<br />

Mauritius 8%<br />

Swaziland 6%<br />

Namibia 6%<br />

Portugal 5%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 35-44 64%<br />

� Married, kids 20 24%<br />

Mode of Transport<br />

� By Plane 34%<br />

� By Road 66%<br />

Travel Partner<br />

(General Holiday/ VFR*)<br />

� Spouse/ Partner 47%<br />

� Family 30%<br />

Travel Partner (Shopping)<br />

� Spouse/ Partner 42%<br />

� Alone 30%<br />

Accommodation<br />

(General Holiday/ VFR*)<br />

� Hotel 49%<br />

� Friends/ Family 31%<br />

� Country/ Guesthouse 7%<br />

Accommodation (Shopping)<br />

� Friends / Relatives 44%<br />

� Hotel 37%<br />

� Country / Guesthouse 11%<br />

Positivity to SA Main Activities in SA<br />

Feelings Towards SA<br />

� Negative 20%<br />

� Positive 80%<br />

Visit SA again<br />

� Yes, definitely 96%<br />

� Yes, probably 4%<br />

Advise friends to visit<br />

� Yes, definitely 93%<br />

� Yes, probably 6%<br />

� Possibly 1%<br />

Activities in SA<br />

when on holiday/ VFR*<br />

� Shopping 88%<br />

� Nightlife 48%<br />

� Social 34%<br />

� Visit a casino 30%<br />

Activities in SA<br />

when travelling for Shopping<br />

� Shopping 95%<br />

� Nightlife 41%<br />

� Social 36%<br />

� Visit a casino 17%<br />

Items bought in SA<br />

(General holiday/ VFR*)<br />

� Clothing 31%<br />

� Groceries in bulk 30%<br />

� Media 9%<br />

� Jewellery 9%<br />

Average Spend per Trip:<br />

R11,766<br />

Items bought in SA (Shopping)<br />

� Groceries in bulk 33%<br />

� Clothing 19%<br />

� Media 11%<br />

� Motor vehicle spares 9%<br />

Average Spend per Trip:<br />

R22, 049<br />

Information Sources<br />

General Holiday/ VFR* (Top 4)<br />

� Friends/ Relatives in SA 43%<br />

� Friends/ Relatives at home 33%<br />

� Internet 29%<br />

� Travel books 25%<br />

Shopping (Top 4)<br />

� Friends/ Relatives in SA 33%<br />

� Travel magazines 33%<br />

� Travel books 17%<br />

� SA <strong>Tourism</strong> 17%<br />

Perception of SA<br />

Attraction to SA<br />

(Holiday/ VFR)*<br />

� Scenic Beauty 47%<br />

� VFR* 45%<br />

� Value for money 41%<br />

� Climate 33%<br />

� Bus / Investment interests 18%<br />

Attraction to SA (Shopping)<br />

� Value for money 67%<br />

� VFR* 36%<br />

� Business opportunities 20%<br />

� Bus / Investment interests 18%<br />

� Scenic Beauty 17%<br />

Trip Reasons<br />

Reasons for visiting destinations<br />

(General)<br />

� Scenic Beauty 35%<br />

� Curiosity 15%<br />

� VFR* 15%<br />

� Holiday 8%<br />

� Familiar with destination 8%<br />

There are two main reasons that <strong>SADC</strong> Travellers visit SA: to have a general holiday/ visit friends and relatives or to shop. Information in green pertains to travellers who come to SA for a General Holiday/ VFR*;<br />

Information in red pertains to travellers who come to SA to shop; and the information in black refers to general characteristics of this segment. *VFR stands for Visit Friends/ Relatives<br />

63 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Well-to-do Leisurers<br />

Jerry Modiba is a 40-year old manager at<br />

a major department store in Gaborone.<br />

He likes to take his young family of four<br />

away for a holiday at least once a year –<br />

preferably during the December holidays<br />

when the schools have closed, most often<br />

to Sun City or Johannesburg.<br />

Since he can afford it, he likes to treat<br />

himself to some time away relaxing in<br />

relative luxury – but also, a person of his<br />

standing needs to keep up with the trends.<br />

This year, he would like to take his family to Cape Town – he enjoyed the variety of activities, scenic beauty,<br />

and entertainment when he went to attend a conference two months ago. He liked it because it was<br />

refreshingly different from his own usual surroundings – the beaches, the vibrant city life and the luxurious<br />

hotels.<br />

While he’s travelled overseas and to other neighbouring countries like Namibia and Zimbabwe, <strong>South</strong> Africa<br />

remains a firm favourite for the family – it’s close, easy to drive to and offers a world of experiences for him<br />

and his family.<br />

Jerry usually plans for the holiday travel budget many months in advance, and will book the trip at least a<br />

month in advance. He does not use a travel agent unless he’s going to a new destination – he’s familiar<br />

enough with <strong>South</strong> Africa and he’s also got connections in Jo’burg. His wife has been talking about going to<br />

the next Joy of Jazz festival in Jo’burg, so perhaps they’ll drive there during the Easter break and do some<br />

shopping for the clothes he promised the kids and wife and groceries on the way back. Then again, they may<br />

just try out the beaches south of Mombasa, which he has seen on the internet –they’ve not been there<br />

before…<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

64 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Well-to-do Leisurers<br />

Customer Portrait ®<br />

Purchase<br />

and Usage<br />

Environment<br />

Demographics<br />

• 70% Male, 30% Female<br />

• 64% are between 35-44 years old<br />

• 57% have children aged below 18<br />

• 40% professional, 23% clerical/sales,<br />

15% self-employed<br />

• High Income earners R10,000+ (60%)<br />

Environmental Factors<br />

• 30% Botswana, 21% Mozambique, 17%<br />

Swaziland, 13% Zimbabwe, 11% Lesotho<br />

• Urban dwellers, majority in the capital<br />

cities of <strong>SADC</strong> countries<br />

• Lots of access to information via TV,<br />

newspapers, word of mouth and internet<br />

• Comfortable at conversing in English<br />

• Travel to have a break, rest, shop, be<br />

entertained and have fun<br />

Level of Knowledge/Awareness<br />

• Experienced international travellers -<br />

traveled long-haul on business and<br />

holiday<br />

• Have traveled to other <strong>South</strong>ern Africa<br />

countries<br />

• Well informed on <strong>South</strong> Africa, have<br />

friends and relatives in SA<br />

Social/ Organizational Context/ Influencers<br />

• Friends and relatives have a large<br />

influence on where they travel<br />

• Some travellers are influenced by<br />

children<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Desired<br />

Experience<br />

Travel Desires<br />

• Take holidays to relax and rest<br />

• Look for destinations which offer a variety of experiences –<br />

scenic beauty, unique experiences, fun and entertainment<br />

• Also travel to socialize, visit friends and relatives<br />

• When traveling with kids they look for destinations that offer<br />

activities for kids<br />

• Do spend money on travel, but look for value<br />

Travel to <strong>South</strong> Africa<br />

• Frequently travel to SA on holiday/VFR<br />

• Enjoy shopping in SA, like the beach and sea, nightlife and<br />

socializing with friends and relatives<br />

• Concerned about crime, but know which areas to avoid<br />

• Travel to SA by car as it is more cost effective and flexible<br />

• Desire good 3-4 star accommodation<br />

Purchase and Usage<br />

Holiday/VFR<br />

Purchase/ Usage Behaviour<br />

• Travel by car with partner (47%) and family (30%)<br />

• Accommodation booked from home, mainly directly with establishment<br />

• Lead time before booking 5.6 weeks<br />

• Spend per trip: R7,000 Length of Stay: 4 days<br />

• Visit 1 province, Gauteng (32%), Western Cape (23%)<br />

• Stay in hotels (49%), FR (31%)<br />

Shopping<br />

• Travel by car with partner (42%) or alone (30%)<br />

• Lead time before booking 4.3 weeks<br />

• Spend per trip: R9,118, Length of Stay: 4 days<br />

• Visit 1province, Gauteng (46%), North West (13%)<br />

• Stay in with FR (47%) , hotels (37%)<br />

(Note: Spend is reflected as the average spend, and length<br />

of stay have been reported as most common length of stay)<br />

Beliefs and<br />

Associations<br />

Channel<br />

• Use the channel when traveling to new destinations<br />

• Use the internet and travel books for information,<br />

but rely more on word of mouth from friends and<br />

relatives at home and in SA<br />

• Believe that travel agents are more expensive, but<br />

are convenient – especially used in countries where<br />

visas are required (just to get the visa)<br />

• Know SA well, so book things directly<br />

<strong>South</strong> Africa<br />

• <strong>South</strong> Africa is a first world country in Africa that<br />

offers all a wide range of experiences<br />

• <strong>South</strong> Africa has a high crime rate and is unsafe,<br />

people are generally xenophobic, but its still a great<br />

place with great people<br />

• In terms of shopping <strong>South</strong> Africa offers a great<br />

variety and better quality than at home. It is also<br />

cheaper to shop in <strong>South</strong> Africa<br />

• <strong>South</strong> Africa is easily accessible by car<br />

Competitors<br />

• Don’t believe that there is another country<br />

regionally that competes fully with SA<br />

• But if looking for a specific experience will travel to<br />

another country e.g. Botswana for wildlife or<br />

Mozambicans to Swaziland for shopping<br />

• travellers do go to other <strong>South</strong>ern <strong>African</strong> countries<br />

but on a less frequent basis<br />

• In countries where there are <strong>South</strong> <strong>African</strong> shops<br />

they still prefer SA because the feel they get better<br />

prices and a better range<br />

65 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Shopping Brigade: Leisure Travellers<br />

Segment Overview<br />

Shopping<br />

Brigade<br />

Knowledge of SA<br />

No knowledge 2%<br />

Little knowledge 40%<br />

Well informed 42%<br />

Very well informed 16%<br />

Future Travel (Top 5)<br />

SA 51%<br />

Botswana 6%<br />

Mauritius 6%<br />

Australia 4%<br />

France 4%<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 25-34 46%<br />

� Married, kids 10 8%<br />

Mode of Transport<br />

� By Plane 27%<br />

� By Road 73%<br />

Travel Partner<br />

(General Holiday/ VFR*)<br />

� Spouse/ Partner 39%<br />

� Family 25%<br />

Travel Partner (Shopping)<br />

� Spouse/ Partner 39%<br />

� Alone 34%<br />

Accommodation<br />

(General Holiday/ VFR*)<br />

� Friends/ Family 68%<br />

� Hotel 20%<br />

� Self catering unit 4%<br />

Accommodation (Shopping)<br />

� Friends/ Relatives 43%<br />

� Hotel 34%<br />

� Country/ Guesthouse 10%<br />

Positivity to SA Main Activities in SA<br />

Feelings Towards SA<br />

� Negative 10%<br />

� Positive 90%<br />

Visit SA again<br />

� Yes, definitely 96%<br />

� Yes, probably 4%<br />

Advise friends to visit<br />

� Yes, definitely 91%<br />

� Yes, probably 7%<br />

� Possibly 2%<br />

Activities in SA<br />

when on holiday/ VFR*<br />

� Shopping 85%<br />

� Social 54%<br />

� Nightlife 48%<br />

� Beach 19%<br />

Activities in SA<br />

when travelling for Shopping<br />

� Shopping 92%<br />

� Nightlife 28%<br />

� Social 28%<br />

� Trading 19%<br />

Items bought in SA<br />

(General holiday/ VFR*)<br />

� Groceries in bulk 69%<br />

� Clothing 62%<br />

� Media 14%<br />

� Jewellery 14%<br />

Average Spend per Trip:<br />

R7,259<br />

Items bought in SA (Shopping)<br />

� Groceries in bulk 68%<br />

� Clothing 63%<br />

� Appliances 13%<br />

� Jewellery 9%<br />

Average Spend per Trip:<br />

R10, 024<br />

Information Sources<br />

General Holiday/ VFR* (Top 4)<br />

� Friends/ Relatives in SA 51%<br />

� Friends/ Relatives at home 30%<br />

� Internet 19%<br />

� Travel magazines 17%<br />

Shopping (Top 4)<br />

� Friends / Relatives in SA 46%<br />

� Friends / Relatives at home 28%<br />

� Travel magazines 26%<br />

� Internet 10%<br />

Perception of SA<br />

Attraction to SA<br />

(Holiday/ VFR)*<br />

� VFR* 65%<br />

� Scenic Beauty 38%<br />

� Value for money 32%<br />

� Bus / Investment interests 29%<br />

� Climate 27%<br />

Attraction to SA (Shopping)<br />

� Value for money 74%<br />

� Bus / Investment interests 31%<br />

� VFR* 29%<br />

� Business opportunities 22%<br />

� Scenic Beauty 21%<br />

Trip Reasons<br />

Reasons for visiting destinations<br />

(General)<br />

� Scenic Beauty 35%<br />

� Curiosity 15%<br />

� VFR* 15%<br />

� Holiday 8%<br />

� Familiar with destination 8%<br />

There are two main reasons that <strong>SADC</strong> Travellers visit SA: to have a general holiday/ visit friends and relatives or to shop. Information in green pertains to travellers who come to SA for a General Holiday/ VFR*;<br />

Information in red pertains to travellers who come to SA to shop; and the information in black refers to general characteristics of this segment. *VFR stands for Visit Friends/ Relatives<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

66 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Shopping Brigade<br />

Davina Sibanyoni owns a small supermarket in Manzini,<br />

for which she must regularly buy stock from a wholesaler<br />

in Nelspruit. She will usually travel with her husband, and<br />

then these visits extend to seeing family and friends as<br />

well. Their savings on accommodation allow for them to<br />

‘stock’ up on a variety of goods available in stores.<br />

Sometimes when money and time allow, she likes to<br />

take her husband on a short holiday on a weekend for a<br />

break away from routine – to rejuvenate the spirit, as the<br />

magazines usually read.<br />

Besides <strong>South</strong> Africa, Davina has little travel experience<br />

except when she went to Mozambique two years ago –<br />

and that was with friends. She has access to <strong>South</strong><br />

<strong>African</strong> broadcasting services through which she keeps<br />

informed of the general goings-on within <strong>South</strong> Africa.<br />

The major determinant of travel is the amount of money<br />

she has available - this plays a role in the distance she<br />

travels and how long she’ll spend there.<br />

She travels with her own car – it’s handy for carrying their goods, enables her to get around easily and so<br />

save on transport costs while in <strong>South</strong> Africa. Previous work-related visits and friends who’ve traveled<br />

inform her of the ‘hot-spots’ that she can go to for a good time.<br />

The Sibanyonis buy mementoes when they travel to remind them of the place they have been to – but really<br />

to show family and friends the places that they visited and what lovely times they had.<br />

Davina would like to go on a real holiday in the near future – the kind that you fly to, see the beaches and<br />

do not have to work. But that’ll take some saving up for, so in the mean time Joburg does just fine…<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

67 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Shopping Brigade<br />

Customer Portrait ®<br />

Purchase<br />

and Usage<br />

Environment<br />

Demographics<br />

• 61% Male, 39% Female<br />

• 46% are between 25-34 years old; and<br />

35% between 35-44 years old<br />

• 43% have children aged below 18<br />

• 39% professional, 20% self-employed,<br />

12% executive/management<br />

• 89% earn R1,000-R10,000 per month<br />

Environmental Factors<br />

• 36% Botswana, 22% Swaziland, 18%<br />

Lesotho, 12% Mozambique, 8%<br />

Zimbabwe<br />

• Urban dwellers, majority in the capital<br />

cities of <strong>SADC</strong> countries<br />

• Access to travel information via TV,<br />

newspapers and word of mouth. Some<br />

use the internet<br />

• Travel to relax, visit friends and relatives,<br />

shop and to have fun<br />

Level of Knowledge/Awareness<br />

• Experienced regional travellers - few<br />

have traveled long-haul, but not as<br />

extensive as Well-to-do Leisurers<br />

• Well informed on <strong>South</strong> Africa, have<br />

friends and relatives in SA<br />

Social/ Organizational Context/ Influencers<br />

• Will use business travel to scout for<br />

possible holiday destinations<br />

� Money is the main determinant of<br />

destination choice, length of holiday.<br />

� Distance further narrows destination<br />

choice, followed by time available<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Travel Desires<br />

Desired<br />

Experience<br />

• The primary motivation for travel is to shop for personal or<br />

trading goods<br />

• For leisure, it is to see different things and have new<br />

experiences, have a break from work – although it is mixed with<br />

visiting with friends and relatives<br />

• Look for destinations that offer scenic beauty, unique<br />

experiences, shopping, fun and entertainment<br />

• Look for affordable, value for money destinations that are safe<br />

� Mementos of the holiday are important to “prove” to peers<br />

they’ve traveled, and also to remember because they may not<br />

get to visit that place again or soon<br />

Travel to <strong>South</strong> Africa<br />

• Frequently travel to SA to shop or to VFR<br />

• Enjoy shopping in SA, nightlife and socializing with FR<br />

• Travel to SA by car as it is more cost effective and flexible<br />

• Desire descent budget to mid range accommodation, although<br />

most stay with friends and family<br />

Purchase and Usage<br />

Holiday/VFR<br />

• Travel by car with partner (39%) and family (25%)<br />

• Lead time before booking 4.3 weeks<br />

• Spend per trip: R7,300, Length of Stay: 2 days<br />

• Visit 1 province, Gauteng (36%), Western Cape (22%)<br />

• Stay with FR (68%), hotels (20%),<br />

Shopping<br />

• Travel by car with partner (39%) or alone (34%)<br />

• Lead time before booking 3.1 weeks<br />

• Spend per trip: R10,000, Length of Stay: 2 days<br />

• Visit 1.2 provinces, Gauteng (41%), North West (24%)<br />

• Stay in with FR (43%) , hotels (34%)<br />

Purchase/ Usage Behaviour<br />

(Note: Spend is reflected as the average spend, and length<br />

of stay have been reported as most common length of stay)<br />

Beliefs and<br />

Associations<br />

Channel<br />

• Get information primarily through word of mouth<br />

from friends and relatives at home and in SA<br />

• Traveling is expensive and so shop around for<br />

cheapest prices<br />

• Sometimes use travel agents, but usually only prebook<br />

accommodation directly with establishments<br />

• Know SA well, so book things once there<br />

• Need to pay a deposit for accommodation<br />

� Travel agents are seen mostly to be concerned with<br />

making sales/profit, rather than delivering good<br />

service (e.g. reliable info)<br />

<strong>South</strong> Africa<br />

• <strong>South</strong> Africa has great scenery, infrastructure and<br />

events<br />

� SA has more choice and variety than own countries<br />

� SA is favored because of proximity and dramatic<br />

difference to their own country, coupled with<br />

“endless choice of things on offer”<br />

� In terms of shopping <strong>South</strong> Africa offers a great<br />

variety at cheap prices<br />

• Traveling to SA by car gives you much more<br />

options once you are there<br />

Competitors<br />

� Very few could name a competitor destination<br />

� Regionally, some <strong>South</strong>ern <strong>African</strong> countries were<br />

mentioned<br />

• Generally people compared places within <strong>South</strong><br />

Africa, e.g. Durban being cheaper than Cape Town<br />

68 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Young Up and Coming Travellers: Leisure Travellers<br />

Segment Overview<br />

Young Up and<br />

Coming<br />

Travellers<br />

Knowledge of SA<br />

No knowledge 4%<br />

Little knowledge 37%<br />

Well informed 52%<br />

Very well informed 7%<br />

Future Travel<br />

SA 42%<br />

UK 5%<br />

USA 5%<br />

Mauritius 4%<br />

Botswana 2%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 25-34 53%<br />

� Married, kids


Young Up and Coming Travellers<br />

Thobani Motseke is a single 27-year old<br />

sales assistant who lives in Maseru. She<br />

enjoys visiting her cousins that stay just<br />

across the border in Bloemfontein. Since it is<br />

not far, she normally goes there at least once<br />

a month by taxi.<br />

Thobani does not have to plan for transport<br />

when she gets there because her cousin<br />

picks her up from the taxi rank. She likes it<br />

because it is easy to get there and it is not<br />

expensive. Going out with her cousins and<br />

friends to nightclubs is what she looks forward<br />

to because she always meets new people. If<br />

money allows, she will shop for clothes or<br />

small groceries whilst visiting her relatives.<br />

Thobani believes these trips outside of her<br />

small town broaden her horizons about life –<br />

she believes education comes not only in the<br />

classroom form, but through experiences like<br />

traveling.<br />

Thobani has been to Joburg a few times but has never been to any of the other provinces except her visits<br />

to the Free State. She has seen advertisements in the newspapers and on TV about Durban and some<br />

people at her workplace who have been there make it sound like her heaven - the vibrant nightlife, the<br />

beaches. She would love to go there just to experience the beach and other scenery but it would probably<br />

not be in the near future as she will need to save up long in advance. She would also book directly herself if<br />

she goes – there’s not much sense wasting all that money on a travel agent when she could pick up the<br />

phone herself.<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

70 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Young Up and Coming Travellers<br />

Customer Portrait ®<br />

Purchase<br />

and Usage<br />

Environment<br />

Demographics<br />

• 44% Male, 56% Female<br />

• 53% are between 25-34 years old<br />

• 32% married with kids under 18, 30%<br />

single no kids<br />

• 33% professional, 22% clerical/sales,<br />

12% self-employed<br />

• 72% earn R1,000-R4,999 per month<br />

Environmental Factors<br />

• 49% Lesotho, 30% Swaziland, 17%<br />

Botswana<br />

• Urban dwellers, majority in the capital<br />

cities<br />

• Access to information via TV,<br />

newspapers and word of mouth<br />

• Language is sometimes a barrier<br />

• Travel to relax, shop, be entertained and<br />

have fun<br />

Level of Knowledge/Awareness<br />

• Travel mainly for VFR reasons<br />

• Limited travel experience - have traveled<br />

to (immediate) neighboring <strong>South</strong>ern<br />

Africa countries but not as extensively as<br />

the Shopping Brigade<br />

• Well informed on <strong>South</strong> Africa, have<br />

friends and relatives in SA<br />

Social/ Organizational Context/ Influencers<br />

� Money is the main influencer for travel,<br />

need to save up<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Desired<br />

Experience<br />

Travel Desires<br />

• Travel to be in a different environment – break from usual<br />

schedule; want something different to what their country offers,<br />

want to have fun<br />

• Want to meet new people, learn about other cultures; also travel<br />

to socialize, visit friends and relatives<br />

• These needs are similar to the other 2 groups, but are acted<br />

upon differently – i.e. fulfilled by going where they have VFR<br />

links, as money is a major constraint<br />

• Would like to go to their dream destinations, but travel is<br />

expensive and need to save money<br />

• Travel alone and meet friends at destination to reduce costs<br />

Travel to <strong>South</strong> Africa<br />

• Frequently travel to SA for VFR – generally for a specific<br />

purpose<br />

• Enjoy shopping in SA (although not a primary activity), nightlife<br />

and socializing with FR<br />

• Mostly stay with friends and relatives<br />

Purchase/ Usage Behaviour<br />

Purchase and Usage (Note: Spend is reflected as the average spend, and length<br />

Holiday/VFR<br />

of stay have been reported as most common length of stay)<br />

• Travel by taxi, alone (71%)<br />

• Lead time before booking 2.6 weeks<br />

• Spend per trip: R1,600, Length of Stay: 2 days<br />

• Visit 1 provinces, Free State (40%) ,Gauteng (33%),<br />

• Stay with FR (89%)<br />

Shopping<br />

• Travel by taxi, alone (77%)<br />

• Lead time before booking 3.3 weeks<br />

• Spend per trip: R5,700, Length of Stay: 3 days<br />

• Visit 1 provinces, Gauteng (59%), North West (16%)<br />

• Stay in with FR (57%) , hotels (29%)<br />

Beliefs and<br />

Associations<br />

Channel<br />

• Use taxi to get to <strong>South</strong> Africa, once there friends/<br />

relatives, can help<br />

� Prefer direct booking if not staying with FR<br />

� Feel travel agents are too expensive and don’t<br />

always give correct information. Use them only<br />

when traveling to a far or unknown destination.<br />

� Package tours are too restricting<br />

<strong>South</strong> Africa<br />

� SA is unsafe<br />

� SA is very developed<br />

� In terms of shopping you can get anything you want<br />

in SA<br />

• You can get things cheaper in <strong>South</strong> Africa<br />

• <strong>South</strong> Africa is easily accessible<br />

• When they think of travel SA is the first destination<br />

that comes to mind<br />

Competitors<br />

• People believe that European countries and the<br />

USA are similar to <strong>South</strong> Africa<br />

• Generally they compare destinations within SA as<br />

competing with one another<br />

71 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>: Business<br />

Seven land business travel groups: 1,31mn trips and R16,5bn spend<br />

Shopping —<br />

Business<br />

Use<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Age 18–24 25–34 35–44 45–54 55–64 65+<br />

Private Car<br />

Truck<br />

Mini Bus /<br />

Taxi<br />

Business — Professional<br />

MICE<br />

1<br />

3<br />

6<br />

Segment 6:<br />

Trips: 69,849<br />

Spend: 2435<br />

Value: R170mn<br />

Private Traders:<br />

Trips: 542,356<br />

Spend: 11921<br />

Value: R6,465mn<br />

Taxi Traders:<br />

Trips: 205,438<br />

Spend: 4714<br />

Value: R969mn<br />

Source: LPBS 2003<br />

Note: Black cells represent no travellers, There is no typology 2 as it was collapsed with typology 1<br />

5<br />

4<br />

Business Professionals:<br />

Trips: 345,136<br />

Spend: 8051<br />

Value: R2,779mn<br />

Trading Truckers:<br />

Trips: 116,415<br />

Spend: 51197<br />

Value: R5,960mn<br />

7<br />

Segment 7:<br />

Trips: 35,609<br />

Spend: 4414<br />

Value: R157mn<br />

72 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong>: Business<br />

Top four groups account for about 98% of total business travel value<br />

The total value of business travel is R16.1 billion<br />

Rands,<br />

Millions<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

6,399<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Percent of Total Value<br />

5,677<br />

5,500<br />

5,233<br />

Business Travel Typology Groups by Value<br />

2,937<br />

2,440<br />

921<br />

850<br />

Value (based on total trip cost)<br />

Value (based on total spend in SA)<br />

189 149 167 138<br />

Segment 1 Segment 4 Segment 5 Segment 3 Segment 6 Segment 7<br />

Total Spend 40% 34% 18% 6% 1% 1%<br />

Spend in SA 39% 36% 17% 6% 1% 1%<br />

Source: LBPS 2003<br />

73 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Summary of Private Traders<br />

Lead time<br />

before booking<br />

= 2.6 weeks<br />

What attracted me to SA?<br />

Business opportunities (73%)<br />

Value for money (61%)<br />

Business - Investment Interests<br />

(19%)<br />

Source: LBPS, 2003<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Type of information sought?<br />

Accommodation (59%)<br />

Business Opportunities (52%)<br />

Transport (33%)<br />

Would I come again?<br />

Yes, definitely (96%)<br />

Would I advise others to visit SA?<br />

Yes, definitely (91%)<br />

% who sought<br />

info: 20%<br />

Shopping – Business Use<br />

Travel to SA by Car<br />

Sources for information?<br />

Friends and Family (33%)<br />

Travel Magazines (22%)<br />

My Company (19%)<br />

Where did I stay?<br />

Hotel (39%)<br />

Country/ Guesthouse (21%)<br />

Friends / Family (20%)<br />

What did I do?<br />

Shopping (86%)<br />

Trading (42%)<br />

Nightlife (15%)<br />

How did I come to SA?<br />

With spouse/partner (36%)<br />

Spend per trip: R13,436<br />

Length of stay: 2.9 days<br />

No. of Provinces: 1.2<br />

Where did I go?<br />

Gauteng (54%)<br />

Mpumalanga (25%)<br />

North West (8%)<br />

What did I buy?<br />

Groceries in bulk (69%)<br />

Clothing (46%)<br />

Jewellery (9%)<br />

74 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Segment 1 Private Traders: Purpose Travellers<br />

Segment Overview<br />

Segment 1:<br />

Private Traders<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 18-24 3%<br />

– 25-34 34%<br />

– 35-44 41%<br />

– 45-54 18%<br />

– 55-64 4%<br />

� Married, kids


Summary of Trading Truckers<br />

Lead time<br />

before booking<br />

= 3.1 weeks<br />

What attracted me to SA?<br />

Business opportunities (75%)<br />

Value for money (74%)<br />

Business - Investment Interests<br />

(14%)<br />

Source: LBPS, 2003<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Type of information sought?<br />

Accommodation (73%)<br />

Business Opportunities (45%)<br />

Main Attractions (9%)<br />

Would I come again?<br />

Yes, definitely (99%)<br />

Would I advise others to visit SA?<br />

Yes, definitely (86%)<br />

% who sought<br />

info: 13%<br />

Shopping – Business Use<br />

Travel to SA by Truck<br />

Sources for information?<br />

My Company (82%)<br />

FR in SA (18%)<br />

FR at home (9%)<br />

Where did I stay?<br />

Hotel (70%)<br />

Country/ Guesthouse (19%)<br />

Friends / Family (4%)<br />

What did I do?<br />

Shopping (87%)<br />

Trading (75%)<br />

Business (14%)<br />

How did I come to SA?<br />

Alone (40%)<br />

Spend per trip: R53,800<br />

Length of stay: 3.0 days<br />

No. of Provinces: 1.2<br />

Where did I go?<br />

Gauteng (57%)<br />

Mpumalanga (28%)<br />

North West (6%)<br />

What did I buy?<br />

Groceries in bulk (76%)<br />

Hardware (46%<br />

Clothing (35%)<br />

76 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Segment 4 Trading Truckers: Purpose Travellers<br />

Segment Overview<br />

Segment 4:<br />

Trading Truckers<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 35-44 60%<br />

– 45-54 40%<br />

� Married, kids 5 66%<br />

Visit SA again<br />

Mode of Transport<br />

� Truck/ Lorry 100%<br />

Travel Partner (Top 3)<br />

� Alone 40%<br />

� Spouse/ Partner 26%<br />

� Friends 18%<br />

Provinces Visited (Top 3)<br />

� Gauteng 57%<br />

� Mpumalanga 28%<br />

� North west 6%<br />

Accommodation<br />

� Hotel 70%<br />

� Country/ Guesthouse 19%<br />

� Friends/ Relatives 4%<br />

� Truck 3%<br />

Items bought in SA<br />

Positivity to SA Main Activities in SA<br />

� Yes, definitely 99%<br />

� Yes, probably 1%<br />

� Possibly 0%<br />

Advise friends to visit<br />

� Yes, definitely 86%<br />

� Yes, probably 13%<br />

� Possibly 1%<br />

Main Activities while in SA<br />

� Groceries in bulk 76%<br />

� Hardware 46%<br />

� Clothing 35%<br />

� Appliances 18%<br />

Distribution of spend in SA<br />

� Retail-shopping mall 94%<br />

� Factory 64%<br />

� Whole sale 41%<br />

� Flea <strong>Market</strong> 9%<br />

Average Spend per Trip:<br />

� Shopping 87%<br />

� Trading 75%<br />

� Business 14%<br />

� Nightlife 8%<br />

� Social 4%<br />

R53, 800<br />

Top 4 Sources<br />

Perception of SA<br />

Attraction to SA Top 6<br />

� Business opportunities 75%<br />

� Value for money 74%<br />

� Bus-Investment interests 14%<br />

� Visit friends/ relatives 6%<br />

� Scenic beauty 6%<br />

� Culture/ heritage & history 6%<br />

Information Sources<br />

� Company 82%<br />

� Friends / Relatives in SA 18%<br />

� Friends / Relatives at home 9%<br />

� SA <strong>Tourism</strong> 9%<br />

77 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Summary of Business Professionals<br />

Lead time<br />

before booking<br />

= 3.3 weeks<br />

What attracted me to SA?<br />

Business opportunities (79%)<br />

Value for money (39%)<br />

Business - Investment Interests<br />

(25%)<br />

Source: LBPS, 2003<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Type of information sought?<br />

Accommodation (63%)<br />

Business Opportunities (62%)<br />

Transportation (25%)<br />

Would I come again?<br />

Yes, definitely (94%)<br />

Would I advise others to visit SA?<br />

Yes, definitely (93%)<br />

% who sought<br />

info: 27%<br />

Business - Professional<br />

Travel to SA by Car (78%)<br />

Sources for information?<br />

My Company (46%)<br />

FR in SA (28%)<br />

Internet (24%)<br />

Where did I stay?<br />

Friends / Family (41%)<br />

Hotel (36%)<br />

Country/ Guesthouse (13%)<br />

What did I do?<br />

Shopping (79%)<br />

Business (63%)<br />

Nightlife (40%)<br />

How did I come to SA?<br />

Alone (48%)<br />

Spend per trip: R9,700<br />

Length of stay: 6.3 days<br />

No. of Provinces: 1.3<br />

Where did I go?<br />

Gauteng (50%)<br />

KZN (14%)<br />

Free State (9%)<br />

What did I buy?<br />

Groceries in bulk (61%)<br />

Clothing (33%)<br />

Media (23)<br />

78 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Segment 5 Business Professionals: Purpose Travellers<br />

Segment Overview<br />

Segment 5:<br />

Business<br />

Professionals<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 25-34 25%<br />

– 35-44 57%<br />

– 45-54 16%<br />

– 55-64 2%<br />

� Married, kids


Summary of Taxi Traders<br />

Lead time<br />

before booking<br />

= 3.5 weeks<br />

What attracted me to SA?<br />

Value for money (64%)<br />

Business opportunities (52%)<br />

VFR (29%)<br />

Investment interests (29%)<br />

Source: LBPS, 2003<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Type of information sought?<br />

Business Opportunities (50%)<br />

Accommodation (41%)<br />

Transportation (35%)<br />

Would I come again?<br />

Yes, definitely (91%)<br />

Would I advise others to visit SA?<br />

Yes, definitely (83%)<br />

% who sought<br />

info: 23%<br />

Shopping – Business Use<br />

Travel to SA by Taxi<br />

Sources for information?<br />

FR in SA (59%)<br />

FR at home (41%)<br />

Travel agent (12%)<br />

Where did I stay?<br />

Friends / Family (39%)<br />

Hotel (28%)<br />

B&B (16%)<br />

What did I do?<br />

Shopping (89%)<br />

Trading (37%)<br />

VFR (28%)<br />

How did I come to SA?<br />

Alone (65%)<br />

Spend per trip: R5,100<br />

Length of stay: 2.8 days<br />

No. of Provinces: 1.1<br />

Where did I go?<br />

Gauteng (70%)<br />

KZN (9%)<br />

Mpumalanga (9%)<br />

What did I buy?<br />

Clothing (81%)<br />

Groceries in bulk (33%)<br />

Curios (9%)<br />

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Segment 3 Taxi Traders: Purpose Travellers<br />

Segment Overview<br />

Segment 3: Taxi<br />

Traders<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Demographics Trip Behaviour Purchasing Behaviour<br />

General Characteristics<br />

� Age<br />

– 18-2 45%<br />

– 25-34 37%<br />

– 35-44 47%<br />

– 45-54 11%<br />

� Married, kids


Business Travel groups: Conclusion<br />

Growth for SA is<br />

likely to come from<br />

existing travellers<br />

Understanding the<br />

current traveller is<br />

key<br />

There are 4 key land<br />

business typologies<br />

that SAT may engage<br />

around<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

The real opportunity for <strong>South</strong> Africa does not lie in increasing volume<br />

from the land business travellers, but from extracting additional value.<br />

Opportunities for increased value and length of stay can be realized if the<br />

travellers desires and behaviours are understood.<br />

High level profiles have been developed around 4 typologies that are<br />

currently key to SA. There exists the potential for <strong>South</strong> Africa to up-sell<br />

and cross-sell products to these typology groups.<br />

82 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong><br />

Existing insights suggests steps to grow yield from these segments<br />

Core Challenge<br />

<strong>African</strong> land traveller segments are predominantly purpose travellers (i.e. will come anyway) and low<br />

users of traditional channels (often make bookings direct or purchase at point-of-consumption).<br />

Growth will come from increasing yields through influencing purchase behaviour in <strong>South</strong> Africa<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Role of SAT Role of the Provinces Role of Other Players<br />

� Provide ongoing marketing<br />

intelligence on trends and<br />

segments to Provinces, Local<br />

Authorities and the trade<br />

� Facilitate appropriate choices<br />

around focus, marketing and<br />

product development by<br />

government (national,<br />

provincial and local) as well<br />

as by product owners and the<br />

broader cluster<br />

� Facilitate integration between<br />

trade and tourism promotion<br />

strategies<br />

� Primary marketing role with<br />

a focus on promotion of<br />

leisure and purpose-related<br />

activities at targeted points<br />

of entry and consumption<br />

� Facilitation of segmentspecific<br />

products and services<br />

by the trade<br />

� Facilitation of segment<br />

specific initiatives jointly with<br />

provincial, local and private<br />

sector trade institutions<br />

� Segment-specific product and<br />

service development<br />

– Loyalty programmes<br />

– Secure storage<br />

– Integrated offerings<br />

(accommodation, local<br />

transport, entertainment,<br />

shopping)<br />

� Direct marketing<br />

� Increased flexibility to support<br />

point-of-consumption<br />

promotional efforts<br />

83 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> Land <strong>Market</strong><br />

Approach from historic and projected arrivals from <strong>SADC</strong><br />

Projections are shown in the context of arrivals being the most critical measure of<br />

importance to <strong>South</strong> <strong>African</strong> <strong>Tourism</strong> – other measures are derivative of arrivals<br />

1,800,000<br />

1,600,000<br />

1,400,000<br />

1,200,000<br />

1,000,000<br />

800,000<br />

600,000<br />

400,000<br />

200,000<br />

0<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Defend<br />

Land arrivals from <strong>SADC</strong> countries, 1998 - 2008<br />

Lesotho Swaziland Botswana Zimbabwe Mozambique Namibia Zambia Malawi<br />

Note: 2004 – 2008 arrivals are straight-line projections based on 1998 – 2003 arrivals<br />

Apparent<br />

growth<br />

opportunity<br />

1998<br />

1999<br />

2000<br />

2001<br />

2002<br />

2003<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

Lower base but<br />

important in overall<br />

portfolio context<br />

84 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Executive Summary of key <strong>SADC</strong> land markets<br />

Botswana<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Botswana is an attractive market for <strong>South</strong> Africa<br />

– Botswana’s GDP is the third highest in the <strong>SADC</strong> region, behind <strong>South</strong> Africa and<br />

Angola<br />

– Motswana are more interested in activities other than shopping, unlike many other<br />

<strong>SADC</strong> markets<br />

– Motswana appear to contribute more to the ‘true’ tourism economy than other<br />

<strong>SADC</strong> countries, with most visitors spending nights in paid accommodation<br />

� <strong>South</strong> Africa has performed well in this market<br />

– <strong>South</strong> Africa had a 50% market share of all Botswana outbound travel in 2005<br />

– It is the third largest source of arrivals and fourth largest source of TFDS for <strong>South</strong><br />

Africa<br />

– Volume, TFDS (excl. capex) and seasonality have all shown improvements over the<br />

past four years<br />

� TFDS (excl. capex) increased driven by a growth in volume and TFDS per day<br />

� TFDS (excl. capex.) per day significantly increased from 2004 to 2005 and<br />

much of this spend went on shopping<br />

� There are some reasons for concern<br />

– General holiday and business travel has declined significantly<br />

– The average length of stay decreased and geographic spread worsened over the<br />

four year period<br />

– It is a slowly growing market with volume and TFDS (excl. capex) driven by 10+ times<br />

visitors<br />

– Over 90% of total tourists are repeat visitors and the only category that experienced<br />

growth in volume and TFDS (excl. capex) were visitors who have been to SA 10+ times<br />

– The impact of AIDS and the consequent fundamental shifts in population still loom<br />

on the horizon<br />

85 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Executive Summary of key <strong>SADC</strong> land markets<br />

Lesotho<br />

Source: SAT Departure Survey, 2002-2006<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Lesotho is not as attractive a market for SAT as some of the other <strong>SADC</strong> markets<br />

– Although Lesotho has been the largest source of arrivals, arrivals are<br />

largely coming for VFR, from low income groups, spend amongst the<br />

lowest per day of any <strong>SADC</strong> market and mostly stay for short periods of<br />

time in unpaid accommodation in neighbouring provinces<br />

� Lesotho is something of a captive market for <strong>South</strong> Africa<br />

– 99.8% of all outbound travel is to <strong>South</strong> Africa<br />

– The majority of Lesothans are repeat visitors<br />

� That said, the fundamentals of the market are improving<br />

– There has been volume growth and people do appear to be coming for<br />

general holiday<br />

� Going to the beach is one of the most common activities<br />

– Increasing income per capita is driving growth in spend<br />

– Lesotho does not seem to be suffering as badly from the AIDS epidemic as<br />

many of the other <strong>SADC</strong> markets<br />

86 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Executive Summary of key <strong>SADC</strong> land markets<br />

Mozambique<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Mozambique is an important market for <strong>South</strong> Africa<br />

– Mozambique contributed positively to three of the five measurable objectives,<br />

namely Spend, Volume and Geographic spread<br />

– It has the highest spend per day and TFDS (excl. capex) of all markets – primarily<br />

driven by Business Shoppers (2003-2005)<br />

– Mozambicans are most likely to be visiting for Business Shopping and General<br />

Holiday<br />

� SA has performed well in this market<br />

– This market has a relatively low travel propensity however, over 80% of travel from<br />

Mozambique is to SA<br />

– Overall, volume increased for Mozambican arrivals, which was mainly driven by<br />

increases in the number of shoppers<br />

– TFDS (excl. capex) increased primarily driven by a substantial increase in TFDS<br />

(exc. Capex) per day and to a lesser extent by volume (2003-2005)<br />

� Most Mozambicans stay in paid accommodation, which contributes to the<br />

tourism economy<br />

– The average number of provinces visited by Mozambique tourists has increased<br />

� However there are some sources of concern<br />

– The average length of stay for Mozambican tourists has decreased by 34% from<br />

2002 to 2005<br />

– Seasonality trends for Mozambican tourists has worsened<br />

– Health threat to market: The decrease in volume of arrivals in the age group 45+<br />

could possibly be due to the high prevalence of HIV (12.2% infection rate) and the<br />

declining life expectancy (currently 40 years)<br />

– Mozambique is largely a repeater market<br />

� However it is important to note that these repeat visitors spend considerably more<br />

per trip and per day than first time visitors<br />

87 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Executive Summary of key <strong>SADC</strong> land markets<br />

Swaziland<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Swaziland is an important market for <strong>South</strong> Africa<br />

– It is the second largest source of arrivals to <strong>South</strong> Africa<br />

– The travel intensity rate (annual departures / population) is relatively low at 20%<br />

however, over 96% of Swazi travel is to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa has performed well in this market<br />

– Compound average annual growth rate of arrivals (5.2%) is above the overall average<br />

(3.9%)<br />

– TFDS (excl. capex) increased driven by a growth in volume and TFDS per day<br />

(2003-2005)<br />

� However, compared to many other <strong>SADC</strong> markets, the TFDS (excl. capex) and<br />

spend per day is low (2003-2005)<br />

� However there are sources of concern<br />

– First time arrivals have declined, however, SA may be near the saturation point in<br />

this market<br />

– The volume of tourists over 45 has declined, which may be a result of the high<br />

HIV/AIDS prevalence rate<br />

– The largest purposes of travel are for VFR and General Holiday and there has been<br />

a decrease in the volume of general holiday travellers<br />

– Over 95% of arrivals are repeaters<br />

� However low repeat visitors (2-5 times) are an attractive market in Swaziland<br />

� Visitors who have been 2-3 times spend the most per day and are more likely to<br />

stay in paid accommodation<br />

� Visitors who have been to <strong>South</strong> Africa 2-5 times are more likely to visit more than<br />

one province<br />

� The overall challenge in Swaziland is encouraging purpose driven visitors (business<br />

travel, business shopping) to do more holiday activities while in <strong>South</strong> Africa<br />

Source: SAT Departure Survey, 2002-2005; Spend analysed over period 2003-2005<br />

88 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Executive Summary of key <strong>SADC</strong> land markets<br />

Zimbabwe<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Zimbabwe is an important market for <strong>South</strong> Africa<br />

– Tourists from Zimbabwe contributed positively to all of the measurable<br />

objectives over the period<br />

� SA has performed well in this market, however much of the value which has<br />

been captured has been as a result of the economic decline of Zimbabwe<br />

– Over 55% of Zimbabwean travel is to SA<br />

– Both arrivals to <strong>South</strong> Africa and TFDS (excl. Capex) from Zimbabwe reached a<br />

low point in 2004 but recovered in 2005<br />

– TFDS (excl. capex) increased primarily driven by an increase in volume<br />

– Most of the travel is purpose-driven with shopping being the major objective<br />

regardless of the stated purpose of travel<br />

� This has been driven by the inability to buy many basic goods in Zimbabwe<br />

– Compared to other <strong>SADC</strong> markets, Zimbabwean arrivals are less likely to come<br />

for Business Shopping<br />

– Zimbabwe is a very high repeater market; with over 75% of total arrivals being<br />

tourists who have been 10+ times to SA<br />

� Zimbabwe repeat visitors typically spend more per trip and per day than first<br />

time visitors 3<br />

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Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

90 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Key Countries<br />

Countries that are important <strong>Air</strong> <strong>Market</strong>s in <strong>SADC</strong><br />

Predominantly<br />

Land <strong>Market</strong>s<br />

Land and <strong>Air</strong><br />

<strong>Market</strong>s<br />

Predominantly<br />

<strong>Air</strong> <strong>Market</strong>s<br />

Source: SAT Arrivals Statistics, Monitor Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong> Contributors to <strong>Air</strong> and Land Arrivals in <strong>South</strong> Africa, 2006<br />

Country<br />

<strong>Air</strong> Arrivals<br />

2006<br />

Land Arrivals<br />

2006<br />

% Contribution<br />

to <strong>SADC</strong> <strong>Air</strong><br />

Arrivals<br />

% Contribution<br />

to <strong>SADC</strong> Land<br />

Arrivals<br />

Lesotho 6,920 1,726,365 2.2% 31.2%<br />

Swaziland 7,443 845,193 2.3% 15.3%<br />

Botswana 28,719 736,070 9.1% 13.3%<br />

Malawi 18,718 105,952 5.9% 1.9%<br />

Mozambique 24,372 901,480 7.7% 16.3%<br />

Namibia 44,387 179,777 14.0% 3.2%<br />

Zambia 53,849 106,792 17.0% 1.9%<br />

Zimbabwe 67,728 918,710 21.4% 16.6%<br />

Angola 27,351 1,597 8.6% 0. %<br />

DRC 14,735 6,661 4.7% 0.1%<br />

Mauritius 12,758 1,384 4.0% 0%<br />

Tanzania 9,766 3,373 3.1% 0.1%<br />

91 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Key Countries<br />

Six countries are primary <strong>Air</strong> <strong>Market</strong>s, where additional research was done<br />

Country<br />

Population<br />

(000s)<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

GDP (PPP)<br />

GDP/capita<br />

(PPP)<br />

<strong>Air</strong> Arrivals in<br />

SA (2002)<br />

<strong>Air</strong> Arrivals in<br />

SA (2004)<br />

Departures<br />

(2002)<br />

Zimbabwe 12,747 $23.98 billion $1,900 51,741 58,084 1,499,464<br />

Namibia 2,031 $15.78 billion $7,800 35,274 39,250 267,579<br />

Zambia 11,262 $10.28 billion $900 30,422 29,240 980,100<br />

Angola 11,191 $27.66 billion $2,500 28,695 26,411 291,069<br />

Botswana 1,640 $16.64 billion $10,100 23,948 25,311 821,221<br />

Mozambique 19,407 $25.59 billion $1,300 20,968 20,356 762,658<br />

Malawi 12,159 $7.629 billion $600 17,826 18,064 343,163<br />

Mauritius 1,231 $16.36 billion $13,300 14,052 12,483 124,493<br />

DRC 60,086 $46.27 billion $800 3,685 8,796 41,960<br />

Tanzania 36,766 $26.62 billion $700 7,686 8,216 217,237<br />

Swaziland 1,174 $6.239 billion $5,300 6,626 7,443 824,255<br />

Lesotho 1,867 $6.123 billion $3,300 6,144 5,620 1,195,870<br />

For the six countries highlighted above:<br />

% contribution to all air arrivals = 76%<br />

% contribution to outbound departures = 63%<br />

Note: All of the statistics are from 2005 unless otherwise stated<br />

Source: CIA World Factbook, SAT Arrivals Statstool, WTO Outbound Data<br />

Countries<br />

identified as<br />

Primary<br />

<strong>SADC</strong> <strong>Air</strong><br />

<strong>Market</strong>s<br />

92 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Key Countries<br />

Primary and Secondary <strong>SADC</strong> <strong>Air</strong> <strong>Market</strong>s<br />

Primary <strong>SADC</strong> <strong>Air</strong> <strong>Market</strong>s<br />

Secondary <strong>SADC</strong> <strong>Air</strong> <strong>Market</strong>s<br />

Other <strong>SADC</strong> countries<br />

Source: Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Democratic<br />

Republic of<br />

Congo<br />

Angola<br />

Zambia<br />

Tanzania<br />

Mozambique<br />

Zimbabwe<br />

Namibia<br />

Botswana<br />

Swaziland<br />

Lesotho<br />

Malawi<br />

Seychelles<br />

Mauritius<br />

93 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

94 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

Relative Wealth<br />

Residents in the primary <strong>SADC</strong> air markets are relatively poor compared to <strong>South</strong> Africa and<br />

the rest of the world; these countries also have relatively high Gini Indices…<br />

United States<br />

China<br />

Japan<br />

India<br />

Germany<br />

United Kingdom<br />

France<br />

Italy<br />

Brazil<br />

Russia<br />

<strong>South</strong> Africa<br />

Angola<br />

Mozambique<br />

Zimbabwe<br />

Namibia<br />

Botswana<br />

Zambia<br />

535<br />

46<br />

26<br />

25<br />

17<br />

16<br />

10<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

2,454<br />

1,869<br />

1,822<br />

1,651<br />

1,568<br />

1,539<br />

Ranking of Nations According to GDP, 2005<br />

3,914<br />

3,699<br />

8,182<br />

12,410<br />

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000<br />

US$ (Billions)<br />

Note: The Gini Indices are the latest statistics reported by the World Bank. Some of the years may differ. No Gini Index available for Angola.<br />

Source: World Development Indicators, World Bank; CIA Factbook 2005, Monitor Analysis<br />

Gini Index<br />

40.8<br />

44.7<br />

24.9<br />

32.5<br />

28.3<br />

36<br />

32.7<br />

36<br />

59.3<br />

31<br />

57.8<br />

-<br />

39.6<br />

56.8<br />

70.7<br />

63<br />

52.6<br />

95 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

Very few people can afford to travel to <strong>South</strong> Africa by air<br />

Poverty is a major factor in the region; although tourism expenditure per capita increases<br />

when people living below the poverty line are excluded, expenditure is still relatively low<br />

Angola<br />

Botswana<br />

Mozambique<br />

Namibia<br />

Zambia<br />

Zimbabwe<br />

Note: No tourism expenditure data was available for Angola and Zimbabwe.<br />

Source: 2005 CIA World Factbook; World Development Indicators , World Bank; WTO, Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Population Below Poverty line (%),<br />

2005<br />

47<br />

50<br />

70<br />

70<br />

70<br />

<strong>South</strong><br />

Africa<br />

0 20 40 60 80 100<br />

Percentage of Population<br />

86<br />

Angola NA<br />

Botswana<br />

Mozambique<br />

Namibia<br />

Zambia<br />

Zimbabwe<br />

Outbound <strong>Tourism</strong> Expenditure Per<br />

Capita For People Living Above<br />

Poverty Line, 2003<br />

NA<br />

25<br />

56<br />

53<br />

96 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

194<br />

0 50 100 150 200 250<br />

US$<br />

<strong>South</strong> Africa =<br />

124


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

International departures<br />

<strong>SADC</strong> contributes only 1% of the world’s total outbound departures. Zimbabwe has the highest<br />

number of departures in <strong>SADC</strong><br />

Outbound Departures, 2002<br />

Rest of the<br />

world<br />

99%<br />

Total = 630 million<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong><br />

1%<br />

Percentage<br />

120%<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

20%<br />

Breakdown of <strong>SADC</strong> Outbound Departures, 2002<br />

16%<br />

Total = 7,4 million<br />

13%<br />

11%<br />

11%<br />

97 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

9%<br />

4%<br />

4%<br />

Land + <strong>Air</strong><br />

10%<br />

Zimbabwe Zambia Botswana Angola Other <strong>SADC</strong><br />

Lesotho Swaziland Mozambique Namibia<br />

100%<br />

Travel intensity* 11.7% 66.4% 8.8% 79.8% 46.4% 4.1% 2.0% 13.7% NA 4.5%<br />

Population (millions) 12.8 1.8 11.1 1.0 1.0 18.7 14.6 2.0 NA 165<br />

*Travel intensity = total departures / total population<br />

Source: WTO Outbound data, UN statistics, Monitor Group Analysis


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

Where are they traveling to . . .<br />

Almost all of the departures from <strong>SADC</strong> go to short haul destinations; <strong>South</strong> Africa is the<br />

most popular destination for travellers from the <strong>SADC</strong> region<br />

100%<br />

Botswana<br />

80%<br />

Mozambique<br />

60%<br />

40%<br />

20%<br />

0%<br />

Other<br />

Tanzania<br />

Malawi<br />

Keny<br />

Zambia<br />

Namibia<br />

a<br />

Zimbabwe<br />

<strong>South</strong> Africa<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

61%<br />

Top Long and Short Haul Destinations from <strong>SADC</strong>, 2002<br />

7,132,522<br />

1%<br />

2%<br />

2%<br />

2%<br />

2%<br />

4%<br />

7%<br />

7%<br />

Long Haul<br />

7,369,069<br />

3%<br />

Other<br />

Canada<br />

Brazil<br />

Malaysia<br />

Thailand<br />

Belgium<br />

236,547<br />

11%<br />

2%<br />

3%<br />

3%<br />

3%<br />

4%<br />

Australia<br />

5%<br />

13%<br />

Singapore<br />

5%<br />

China<br />

5%<br />

Short Haul<br />

97%<br />

Hong Kong<br />

Nigeria<br />

Top Short Haul Destinations SH vs. LH Split Top Long Haul Destinations<br />

Note: Long haul is defined as more than 5 hours flying time.<br />

Source: WTO Outbound <strong>Tourism</strong> Country Report, Monitor Group Analysis<br />

USA<br />

India<br />

UK<br />

12%<br />

98 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

8%<br />

9%<br />

11%<br />

19%<br />

Land + <strong>Air</strong>


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

Comparison of trends in arrivals<br />

source markets<br />

60%<br />

40%<br />

20%<br />

0%<br />

-20%<br />

-40%<br />

-60%<br />

-4%<br />

6%*<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

9%*<br />

Growth in Arrivals to SA vs. Growth in Outbound Departures, 2002-2004<br />

3%<br />

8%<br />

8%<br />

-2%<br />

-6%<br />

% CAGR Overall, arrivals to <strong>South</strong> Africa seem to be steady relative to the decline in most of the<br />

-5%<br />

5%<br />

-3%<br />

-3%<br />

-2%<br />

-5%<br />

99 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

-5%<br />

6%<br />

-25% -24%<br />

Inbound CAGR to SA<br />

SH Outbound CAGR<br />

Total Outbound CAGR<br />

Angola Botswana Mozambique Namibia Zambia Zimbabwe<br />

<strong>Air</strong> Arrivals<br />

2004<br />

26,411 25,311 20,356 39,250 29,240 58,084<br />

*Calculated using figures from bottom up analysis of departures from Angola. Departures to Namibia used as a proxy for SH market for Angola.<br />

Source: SAT Arrivals Statstool; WTO Outbound <strong>Tourism</strong> Country Reports, Monitor Group Analysis


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

<strong>Air</strong> access to <strong>South</strong> Africa<br />

In evaluating air access to <strong>South</strong> Africa we considered the following:<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>Air</strong> Access<br />

Existence of <strong>Air</strong><br />

Links<br />

Capacity<br />

Price of <strong>Air</strong> Ticket<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

<strong>Air</strong> access to <strong>South</strong> Africa – <strong>Air</strong> links<br />

The region has good air links to <strong>South</strong> Africa<br />

Country Direct Services SA Carrier Foreign Carrier<br />

Angola � � �<br />

Botswana � � �<br />

Mozambique � � �<br />

Namibia � � �<br />

Zambia x � �<br />

Zimbabwe � � �<br />

Source: Rennies Travel Agent<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

<strong>Air</strong> access to <strong>South</strong> Africa – <strong>Air</strong> links<br />

Source: Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Luanda<br />

Democratic Republic<br />

of Congo<br />

Angola<br />

Zambia<br />

Lusaka<br />

Harare<br />

Zimbabwe<br />

Namibia Botswana<br />

Windhoek Gaborone<br />

Cape Town<br />

Johannesburg<br />

Durban<br />

Tanzania<br />

Mozambique<br />

Maputo<br />

Swaziland<br />

Lesotho<br />

Malawi<br />

Mauritius<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

<strong>Air</strong> access to <strong>South</strong> Africa – <strong>Air</strong> links: Flight time and schedules<br />

<strong>Air</strong> Botswana<br />

(Direct)<br />

SAA <strong>Air</strong>ways<br />

(Direct)<br />

Insufficient<br />

frequency could be<br />

an issue<br />

<strong>Air</strong> Namibia<br />

(Non-Direct)<br />

SAA <strong>Air</strong>ways<br />

(Direct)<br />

TAAG Angola <strong>Air</strong><br />

(Direct)<br />

<strong>Air</strong> Zimbabwe<br />

(Non-Direct)<br />

British <strong>Air</strong>ways<br />

Comair<br />

(Direct)<br />

Nation Wide<br />

(Direct)<br />

SAA <strong>Air</strong>ways<br />

(Direct)<br />

* Return flight day may vary form the departure day.<br />

Source: Rennies Travel Agent, OAG, 2006<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

JHB-Gaborone (Botswana)<br />

Flight Time To/Return* Flight<br />

Frequency<br />

1/1<br />

Daily<br />

1/1<br />

Daily<br />

Flight Time To/Return*<br />

Flight Frequency<br />

4/5<br />

T.T.F.<br />

3/3<br />

T.T.S.<br />

3/3<br />

M.W.F.<br />

JHB- Luanda (Angola)<br />

Zambia<br />

JHB-Livingston JHB-Lusaka<br />

Flight Time<br />

To/Return* Flight<br />

Frequency<br />

2/1<br />

M.W.T.F.S.<br />

2/1<br />

Daily<br />

2/1<br />

M.T.S.<br />

Flight Time<br />

To/Return* Flight<br />

Frequency<br />

3/3<br />

Daily<br />

2/2<br />

Daily<br />

Stop City<br />

Non-stop<br />

Non-stop<br />

Stop City<br />

Stopover Period<br />

via Windhoek<br />

2 hr<br />

Non-stop<br />

Non-stop<br />

Stop City<br />

Stopover Period<br />

via Harare<br />

45 mins<br />

Non-Stop<br />

Non-Stop<br />

Non-Stop<br />

<strong>Air</strong> Namibia<br />

(Direct)<br />

British <strong>Air</strong>ways Comair<br />

(Direct)<br />

SAA <strong>Air</strong>ways<br />

(Direct)<br />

Kenya <strong>Air</strong>ways<br />

(Non-Direct)<br />

LAM <strong>Air</strong>lines<br />

(Direct)<br />

SAA <strong>Air</strong>ways<br />

(Direct)<br />

<strong>Air</strong> Botswana<br />

(Non-Direct)<br />

<strong>Air</strong> Zimbabwe<br />

(Direct)<br />

British <strong>Air</strong>ways Comair<br />

(Direct)<br />

SAA <strong>Air</strong>ways<br />

(Direct)<br />

Flight Time To/Return*<br />

Flight Frequency<br />

2/2<br />

Daily<br />

2/2<br />

Daily<br />

2/2<br />

Daily<br />

JHB- Windhoek (Namibia)<br />

JHB- Maputo (Mozambique)<br />

Flight Time To/Return*<br />

Flight Frequency<br />

8/9<br />

Daily<br />

1/1<br />

Daily<br />

1/1<br />

Daily<br />

Flight Time<br />

To/Return*<br />

Flight Frequency<br />

3/3<br />

M.W.S.<br />

2/2<br />

Daily<br />

2/2<br />

Daily<br />

2/2<br />

Daily<br />

JHB- Harare (Zimbabwe)<br />

Stop City<br />

Non-stop<br />

Non-stop<br />

Non-stop<br />

Stop City<br />

Stopover Period<br />

via Nairobi<br />

2 hr<br />

Non-stop<br />

Non-stop<br />

Stop City<br />

Stopover Period<br />

via Gaborone<br />

2 hr<br />

Non-stop<br />

Non-stop<br />

Non-stop<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

<strong>Air</strong> access to <strong>South</strong> Africa – Flight capacity<br />

There is access on most routes however these links need to be strengthened to facilitate<br />

regional tourism especially given the high economic development<br />

Primary <strong>SADC</strong> <strong>Air</strong><br />

<strong>Market</strong>s<br />

Namibia<br />

Capacity:<br />

397,691<br />

Note: Load factor calculated using data for regular scheduled flights between any airport in the highlighted countries and any <strong>South</strong> <strong>African</strong> airport<br />

Source: ACSA, Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Annual Flight Capacity and Load Factor for Key <strong>SADC</strong> <strong>Market</strong>s, 2005<br />

Angola<br />

Capacity:<br />

103,552<br />

Botswana<br />

Capacity: 232,620<br />

Zimbabwe<br />

Zambia<br />

Capacity:<br />

255,727<br />

Capacity: 324,494<br />

Mozambique<br />

Capacity:<br />

202,860<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

<strong>Air</strong> access to <strong>South</strong> Africa – Prices<br />

<strong>Air</strong> ticket prices to <strong>South</strong> Africa are relatively high for all the countries, especially on a<br />

US$/km basis<br />

Comparable Flights: Prices and Distances<br />

Route<br />

Angola (Luanda) -JHB<br />

SA <strong>Air</strong>ways<br />

Botswana (Gaborone) -<br />

JHB<br />

SA <strong>Air</strong>ways<br />

Mozambique (Maputo) -<br />

JHB<br />

LAM Aereas<br />

Namibia (Windhoek) -<br />

JHB<br />

<strong>Air</strong> Namibia<br />

Zambia (Lusaka) -JHB<br />

SA <strong>Air</strong>ways<br />

Zimbabwe (Harare)-JHB<br />

SA <strong>Air</strong>ways<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Lowest Published<br />

Fare Available (US$)<br />

Flight Time<br />

(incl. stopover)<br />

Departure/ Return<br />

Distance<br />

(km)<br />

US$/km<br />

$417 3/3 2,488 0.16<br />

$248 1/1 680 0.36<br />

$295 1/1 451 0.65<br />

$431 2/2 1,185 0.36<br />

$373 2/2 1,200 0.31<br />

$345 2/2 960 0.35<br />

Note: Lowest listed roundtrip fares from consolidator, including of tax. Assuming travel in April 2006<br />

Source: TQ3 Direct Travel Solutions, www.geobytes.com (Destination Tool)<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

Visa Requirements vary across <strong>SADC</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Country Visa required?<br />

Angola<br />

Yes (3 – 5 working days to<br />

process visa application)*<br />

Botswana No<br />

Mozambique No<br />

Namibia<br />

No<br />

Zambia No<br />

Zimbabwe<br />

* Refer to Angola deck for more detail information<br />

Source: Department of Foreign Affairs<br />

Yes (7 working days to process<br />

the visa application)<br />

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<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Attractiveness to <strong>South</strong> Africa<br />

Summary<br />

–<br />

<strong>SADC</strong> <strong>Air</strong> is relatively attractive to <strong>South</strong> Africa mainly due to its geographic proximity<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Value Travelling Population Access to SA<br />

� Very few people in <strong>SADC</strong> can<br />

afford to travel to <strong>South</strong><br />

Africa by air<br />

– All the selected countries<br />

have lower GDP per<br />

capita than <strong>South</strong> Africa<br />

– <strong>SADC</strong> has relatively low<br />

tourism expenditure per<br />

capita<br />

– Most of the selected<br />

<strong>SADC</strong> countries have<br />

more than 50% of their<br />

population living below the<br />

poverty line<br />

� <strong>SADC</strong>’s contribution to<br />

international tourism<br />

departures is negligible (1%)<br />

– There are about 7 million<br />

outbound departures<br />

– Most of the countries<br />

have low travel intensity<br />

� + But the majority (97%) of<br />

outbound travel is regional<br />

(i.e. short haul)<br />

– <strong>South</strong> Africa is the top<br />

destination for travellers<br />

from the region<br />

� Short haul outbound<br />

departures are declining in<br />

all markets except Botswana<br />

and Angola<br />

* Except for the small population countries i.e. Lesotho, Swaziland and Botswana<br />

–<br />

–<br />

+ � The region has relatively<br />

good air links to <strong>South</strong> Africa<br />

– Direct airlink exists to all<br />

selected countries<br />

– However, there may be<br />

insufficient frequency on<br />

the Luanda –<br />

Johannesburg route<br />

+ � There is sufficient capacity<br />

on most routes<br />

– However capacity<br />

between Angola and<br />

<strong>South</strong> Africa is<br />

constrained<br />

–<br />

� <strong>Air</strong> ticket prices to <strong>South</strong><br />

Africa are relatively high for<br />

all the countries<br />

–<br />

� There are visa requirements<br />

for Angola and Zimbabwe<br />

107 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

108 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Arrivals (000’s)<br />

<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Arrivals to <strong>South</strong> Africa from <strong>SADC</strong> – Land and <strong>Air</strong><br />

The majority of arrivals to <strong>South</strong> Africa from <strong>SADC</strong> are land arrivals; however arrivals by air<br />

are increasing faster than land arrivals<br />

6,000<br />

4,000<br />

2,000<br />

0<br />

1.2<br />

1.1<br />

1.0<br />

Land <strong>Air</strong><br />

4,237<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong> Arrivals to <strong>South</strong> Africa by Mode, 2000-2004<br />

4,121<br />

4,425<br />

4,425<br />

4,608<br />

2000 2001 2002 2003 2004<br />

<strong>Air</strong><br />

5%<br />

95%<br />

Land<br />

Total<br />

5%<br />

95%<br />

Indexed Comparison of <strong>SADC</strong> Arrivals to <strong>South</strong> Africa by<br />

Mode, 2000-2004<br />

0.9<br />

2000 2001 2002 2003 2004<br />

Source: SAT Arrivals Statstool, Monitor Group Analysis<br />

6%<br />

94%<br />

6%<br />

94%<br />

6%<br />

94%<br />

CAGR 00 – 04<br />

Land + <strong>Air</strong><br />

CAGR 02 –04<br />

Total 2.1% 2.0%<br />

Land 2.0% 2.0%<br />

<strong>Air</strong> 3.6% 2.4%<br />

109 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Arrivals to <strong>South</strong> Africa per country – Land and <strong>Air</strong><br />

Land arrivals are the key driver of total arrivals in all the countries except Angola<br />

1.2<br />

1.0<br />

0.8<br />

0.6<br />

2000 2001 2002 2003 2004<br />

1.2<br />

1.1<br />

1.0<br />

Source: SAT Arrivals Statstool, Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Angola CAGR 02-04<br />

2.2%<br />

1.6<br />

Botswana CAGR 02-04 1.2<br />

Mozambique<br />

-3.5%<br />

-4.1% 1.4<br />

1.5%<br />

1.6%<br />

1.0<br />

0.9<br />

2000 2001 2002 2003 2004<br />

1.2<br />

1.0<br />

2000 2001 2002 2003 2004<br />

1.6<br />

1.4<br />

1.2<br />

1.0<br />

2000 2001 2002 2003 2004<br />

0.8<br />

-17%<br />

2000 2001 2002 2003 2004<br />

Namibia Zambia Zimbabwe<br />

1.8<br />

1.4<br />

2.8%<br />

Total Arrivals Land Arrivals <strong>Air</strong> Arrivals<br />

1.3<br />

1.2<br />

1.1<br />

1.0<br />

0.9<br />

0.8<br />

2000 2001 2002 2003 2004<br />

CAGR 02-04<br />

CAGR 02-04 CAGR 02-04 CAGR 02-04<br />

2.2%(total)<br />

1.5%(land)<br />

5.5%<br />

0.3%<br />

-0.2%<br />

-2.0%<br />

Land + <strong>Air</strong><br />

Indexed Comparison of Arrivals to <strong>South</strong> Africa from Selected <strong>SADC</strong> Countries by Mode, 2000-2004<br />

-1.5%<br />

-16.4%<br />

-4.5%<br />

-5.6%<br />

6.0%<br />

110 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Arrivals (Millions)<br />

8<br />

6<br />

4<br />

2<br />

0<br />

<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Arrivals to <strong>South</strong> Africa<br />

<strong>SADC</strong> made up about 75% of <strong>African</strong> air arrivals in 2004 and 77% of these air arrivals were<br />

from the six primary <strong>SADC</strong> <strong>Air</strong> <strong>Market</strong>s<br />

Total arrivals in SA, 2004<br />

6.68<br />

4.65<br />

70%<br />

Source: SAT Statstool; Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

2.03<br />

30%<br />

Total Land <strong>Air</strong><br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

% Breakdown of <strong>Air</strong><br />

Arrivals by Region,<br />

2004<br />

1.5%<br />

12.8%<br />

13.3%<br />

17.2%<br />

55.1%<br />

Total<br />

Middle<br />

East<br />

Asia &<br />

Australasia<br />

Americas<br />

Africa<br />

Europe<br />

Arrivals,<br />

(Thousands)<br />

400<br />

300<br />

200<br />

100<br />

Breakdown of <strong>Air</strong> Arrivals from Africa into<br />

<strong>South</strong> Africa, 2004<br />

58<br />

<strong>Air</strong> only<br />

39<br />

22%<br />

29 11%<br />

15%<br />

26 10%<br />

111 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

25<br />

61<br />

20 8%<br />

10%<br />

23%<br />

259<br />

83<br />

343<br />

0<br />

Zimbabw e Zambia Botsw ana Other <strong>SADC</strong> Non-<strong>SADC</strong><br />

Namibia Angola Mozambique Total <strong>SADC</strong> Africa


10%<br />

<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Arrivals in <strong>South</strong> Africa – Growth rates<br />

Both air and land arrivals from <strong>SADC</strong> have increased. However, there was a decline in air<br />

arrivals from three of the selected countries between 2002 and 2004<br />

5%<br />

% CAGR<br />

0%<br />

-5%<br />

Growth Rates of Arrivals to <strong>South</strong> Africa, 2002-2004<br />

1.9%<br />

3.7%<br />

2.6%<br />

Source: SAT Arrivals Statstool, Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Regional split<br />

3.3%<br />

5.1%<br />

7.7%<br />

2.0% 2.4%<br />

Total <strong>Air</strong> Arrivals Europe Africa Asia & Americas <strong>SADC</strong> <strong>SADC</strong> <strong>Air</strong><br />

arrivals<br />

Australasia Land<br />

% CAGR<br />

10%<br />

5%<br />

0%<br />

-5%<br />

-10%<br />

-15%<br />

-20%<br />

Growth Rates of <strong>Air</strong> Arrivals to <strong>South</strong><br />

Africa from Selected <strong>SADC</strong> Countries,<br />

2002-2004<br />

-4.1%<br />

<strong>Air</strong> arrivals<br />

Land arrivals<br />

2.2%<br />

2.8%<br />

1.5%<br />

-1.5%<br />

-17.0%<br />

5.5%<br />

1.5%<br />

-2.0%<br />

0.3%<br />

6.0%<br />

-5.6%<br />

Angola Mozambique Zambia<br />

Botswana Namibia Zimbabwe<br />

112 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Arrivals in <strong>South</strong> Africa – by nationality<br />

Approximately 80% of the arrivals from the region are nationals (i.e. not expatriates living in<br />

those countries)<br />

Arrivals (Thousands)<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

Expatriate<br />

National<br />

51<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

8<br />

13%<br />

87%<br />

6<br />

33<br />

15%<br />

85%<br />

Breakdown of <strong>Air</strong> Arrivals by Nationality, 2004<br />

8<br />

22<br />

6<br />

20<br />

Zimbabwe Namibia Zambia Angola Botswana Mozambique Other <strong>SADC</strong> Total <strong>SADC</strong><br />

Notes: Nationality calculated using percentages from breakdown of country of nationality from departure survey.<br />

Source: SAT Departure Survey 2004, SAT Arrivals Statstool, Monitor Group Analysis<br />

26%<br />

74%<br />

22%<br />

78%<br />

7<br />

19<br />

27%<br />

73%<br />

6<br />

14<br />

29%<br />

71%<br />

113 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

13<br />

48<br />

22%<br />

78%<br />

79%<br />

<strong>Air</strong> only<br />

56<br />

204<br />

21%


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Arrivals to <strong>South</strong> Africa – by purpose<br />

Business is the most common primary purpose of travel amongst arrivals from the selected<br />

countries<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

18%<br />

14%<br />

37%<br />

31%<br />

Breakdown of <strong>Air</strong> Arrivals by Primary Purpose of Visit, 2004<br />

13%<br />

11%<br />

11%<br />

65%<br />

15%<br />

16%<br />

17%<br />

52%<br />

24%<br />

8%<br />

26%<br />

42%<br />

12%<br />

15%<br />

20%<br />

21%<br />

11%<br />

16%<br />

53% 53%<br />

Angola Botswana Namibia Mozambique Zimbabwe Zambia<br />

Arrivals 2004 26,411 25,311 20,356 39,250 58,084 29,240<br />

Note: Purpose of visit calculated using breakdown of primary purpose of visit as reported by respondents to the departure survey<br />

Source: SAT Departure Survey 2004; SAT Arrivals Statstool, Monitor Group Analysis<br />

<strong>Air</strong> only<br />

Other<br />

VFR<br />

Holiday<br />

Business<br />

114 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Percentage<br />

<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Comparison of leisure arrivals to SA<br />

The proportion of leisure travellers is very small compared to <strong>South</strong> Africa’s other key source<br />

markets<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Leisure Arrivals as a % of Total Arrivals in SA –<br />

Primary Purpose of Visit<br />

61%<br />

70%<br />

77%<br />

Source: SAT Departure Survey 2002-2005 Q2, Monitor Group Analysis<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

40%<br />

17%<br />

26%<br />

23%<br />

19%<br />

25%<br />

Percentage<br />

100%<br />

Leisure Arrivals as a % of Total Arrivals in SA –<br />

Primary and Secondary Purpose of Visit<br />

USA UK Germany Botswana Namibia Zimbabwe<br />

USA UK Germany Botswana Namibia Zimbabwe<br />

Angola Mozambique Zambia<br />

Angola Mozambique Zambia<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

81%<br />

89% 89%<br />

56%<br />

25%<br />

33% 32% 30%<br />

38%<br />

115 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Rands (Billions)<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

CAGR<br />

02-04<br />

<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Spend in <strong>South</strong> Africa<br />

Although air arrivals from <strong>SADC</strong> contribute a small amount to total spend, there has been a<br />

decline in spend by several of the primary <strong>SADC</strong> air markets<br />

47.8<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Foreign Direct Spend in SA, 2004<br />

SAT Annual Report*<br />

13.2<br />

2.6<br />

Total Europe Asia &<br />

Australas ia<br />

2.5<br />

Rest of Africa and<br />

Middle East<br />

<strong>SADC</strong> <strong>Air</strong><br />

27.2<br />

2.3<br />

Americas Africa &<br />

Middle Eas t<br />

-1% -12% -14% -22% 13%<br />

* Except for <strong>SADC</strong> <strong>Air</strong> value<br />

Note: Foreign direct spend for <strong>SADC</strong> air market calculated by multiplying average foreign direct spend for a given year by number of arrivals for that year for each<br />

country.<br />

Source: SAT Annual Report 2002 and 2004; SAT Departure Survey 2002-2004, SAT Arrivals Data Stats tool, Monitor Group Analysis<br />

Rands (Millions)<br />

2,500<br />

2,000<br />

1,500<br />

1,000<br />

500<br />

0<br />

CAGR<br />

02-04<br />

Breakdown of Spend by <strong>Air</strong> Arrivals from <strong>SADC</strong><br />

Countries, 2004<br />

SAT Departure Survey Analysis<br />

507<br />

Namibia<br />

<strong>Air</strong> only<br />

340<br />

Zimbabwe<br />

294<br />

Angola<br />

116 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

285<br />

Zambia<br />

197<br />

Mozambique<br />

172<br />

Botswana<br />

508<br />

Other <strong>SADC</strong><br />

2,302<br />

47% -32% -18% -34% 3% -2% -8% -12%<br />

Total


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Comparison of current spend trends<br />

Leisure travellers by air from Angola and Zimbabwe make the most significant contribution<br />

both in terms of length of stay (LOS) and foreign direct spend<br />

Average<br />

Length of<br />

Stay<br />

(LOS-<br />

Nights)<br />

14<br />

12<br />

10<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

8<br />

Contribution to <strong>Tourism</strong> in <strong>South</strong> Africa by Leisure travellers, 2002-2005 Q2<br />

Namibia<br />

R247 million<br />

Zimbabwe<br />

R566 million<br />

Angola<br />

R549 million<br />

Botswana<br />

Zambia<br />

R390 million<br />

<strong>Air</strong> Leisure only<br />

Warning: Despite the high<br />

average LOS, the mode<br />

was 3 nights<br />

6<br />

R159 million<br />

Mozambique<br />

R326 million<br />

0<br />

= R250 million Total<br />

Foreign Direct Spend<br />

500 1000<br />

Average Spend Per Day (Rands)<br />

1500 2000<br />

Note: Foreign direct spend calculated by multiplying average spend per day by number of arrivals assumed to be leisure travellers based on percentage of leisure<br />

travellers in departure survey sample. Sample size: Angola = 244, Botswana = 103, Mozambique = 150, Namibia = 190, Zambia = 144, Zimbabwe = 346.<br />

Source: SAT Departure Survey 2002-2005 Q2, SAT Arrivals Statstool, Monitor Group Analysis<br />

117 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – Importance to <strong>South</strong> Africa<br />

Summary<br />

–<br />

The <strong>SADC</strong> air markets are important source markets for <strong>South</strong> Africa<br />

but it is important to note that many arrivals come for business purposes<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Arrivals in SA Purpose of Visit Spend in SA<br />

� 94% of the arrivals to SA<br />

from <strong>SADC</strong> are land<br />

arrivals<br />

+ � <strong>SADC</strong> air arrivals make<br />

up about 75% of <strong>African</strong><br />

air arrivals to <strong>South</strong><br />

Africa<br />

– 77% of <strong>SADC</strong> air<br />

arrivals are from the<br />

six selected countries<br />

+ � <strong>Air</strong> arrivals have<br />

increased (2.4%) between<br />

2002 – 2004<br />

– However there was a<br />

decline in arrivals from<br />

three of the selected<br />

countries<br />

* Based on primary or secondary purpose of travel<br />

–<br />

� Most arrivals come to<br />

<strong>South</strong> Africa for business<br />

purposes*<br />

– The percentage of<br />

leisure travellers is<br />

very low compared to<br />

<strong>South</strong> Africa’s top<br />

three source markets<br />

–<br />

� <strong>SADC</strong> air’s contribution<br />

to spend in <strong>South</strong> Africa<br />

is small (R2.3 Billion)<br />

– Most of the spend is<br />

from <strong>SADC</strong> land<br />

arrivals<br />

–<br />

� Spend in <strong>South</strong> Africa is<br />

declining (-12%)<br />

– Of the selected<br />

countries, only spend<br />

by Namibia and<br />

Mozambique<br />

increased<br />

118 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

119 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – SA’s Relative Position<br />

Outbound departures per country<br />

Travel within the region is predominantly short haul<br />

Outbound<br />

Departures<br />

(000s)<br />

SH CAGR 02-04<br />

LH CAGR 02-04<br />

1,000<br />

Total CAGR 02-04<br />

800<br />

600<br />

400<br />

200<br />

398<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Long Haul<br />

Short Haul<br />

95%<br />

5%<br />

Breakdown of Outbound Departures LH vs. SH, 2004<br />

953<br />

99%<br />

1%<br />

1%<br />

790<br />

98%<br />

2%<br />

2% Zambia and<br />

Zimbabwe data<br />

not very<br />

verifiable<br />

Angola* Botswana Mozambique Namibia Zambia Zimbabwe<br />

253<br />

98%<br />

* Based on bottom up analysis. ** Calculated using departures to Namibia which is the largest SH market as a proxy. Long haul is defined as more than 5 hours<br />

flying time<br />

Source: WTO Outbound Country <strong>Tourism</strong> Reports, Namibian <strong>Tourism</strong> Report, Monitor Group Analysis<br />

2%<br />

98%<br />

434<br />

98%<br />

873<br />

98%<br />

6%** 7.7% -5.6% -3% -5.3% -25.1%<br />

15%* 11.4% 11.7% 12.1% 6.8% -5.4%<br />

9%* 7.8% -5.4% -2.7% -5.1% -24.4<br />

2%<br />

5%<br />

2<br />

5%<br />

Land + <strong>Air</strong><br />

Breakdown of <strong>SADC</strong> Region<br />

Departures, 2002<br />

8<br />

7.3<br />

3%<br />

3%<br />

3%<br />

Outbound Departures (millions)<br />

95%<br />

97%<br />

97%<br />

95% 0 95%<br />

120 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

6<br />

4<br />

97%<br />

<strong>SADC</strong> Region


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – SA’s Relative Position<br />

Outbound departures to <strong>South</strong> Africa<br />

<strong>South</strong> Africa has a significant share of a large short haul market<br />

100%<br />

Other<br />

Tanzania<br />

Malawi<br />

Keny<br />

Zambia<br />

a<br />

Namibia<br />

Botswana<br />

80%<br />

Mozambique<br />

60%<br />

40%<br />

20%<br />

0%<br />

Zimbabwe<br />

<strong>South</strong> Africa<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

61%<br />

Top Long and Short Haul Destinations from <strong>SADC</strong>, 2002<br />

7,132,522<br />

1%<br />

2%<br />

2%<br />

2%<br />

2%<br />

4%<br />

7%<br />

7%<br />

Long Haul<br />

7,369,069<br />

3%<br />

Other<br />

Canada<br />

Brazil<br />

Malaysia<br />

Thailand<br />

Belgium<br />

236,547<br />

11%<br />

2%<br />

3%<br />

3%<br />

3%<br />

4%<br />

Australia<br />

5%<br />

13%<br />

Singapore<br />

5%<br />

China<br />

5%<br />

Short Haul<br />

97%<br />

Hong Kong<br />

Nigeria<br />

Top Short Haul Destinations SH vs. LH Split Top Long Haul Destinations<br />

Note: Long haul is defined as more than 5 hours flying time.<br />

Source: WTO Outbound <strong>Tourism</strong> Country Report, Monitor Group Analysis<br />

USA<br />

India<br />

UK<br />

12%<br />

121 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

8%<br />

9%<br />

11%<br />

19%<br />

Land + <strong>Air</strong>


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – SA’s Relative Position<br />

Outbound departures to <strong>South</strong> Africa<br />

For the primary <strong>SADC</strong> air markets, <strong>South</strong> Africa has a significant share of SH outbound<br />

departures<br />

Country<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Total Short Haul<br />

Outbound<br />

Departures (2004)<br />

Share of Short<br />

Haul Outbound<br />

Departures<br />

Growth in SH Outbound<br />

Departures to SA: CAGR<br />

(2002 – 2004)<br />

Angola 53,386 53% -4%<br />

Botswana 941,827 85% 19%<br />

Mozambique 777,082 46% -18%<br />

Namibia 249,175 91% 2%<br />

Zambia 424,845 29% 27%<br />

Zimbabwe 941,827 66% 8%<br />

Source: WTO Outbound <strong>Tourism</strong> Country Report, Monitor Group Analysis<br />

122 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – SA’s Relative Position<br />

Comparison of trends in arrivals<br />

source markets<br />

60%<br />

40%<br />

20%<br />

0%<br />

-20%<br />

-40%<br />

-60%<br />

-4%<br />

6%*<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

9%*<br />

Growth in Arrivals to SA vs. Growth in Outbound Departures, 2002-2004<br />

3%<br />

8%<br />

8%<br />

-2%<br />

-6%<br />

% CAGR Overall, arrivals to <strong>South</strong> Africa seem to be steady relative to the decline in most of the<br />

-5%<br />

5%<br />

-3%<br />

-3%<br />

-2%<br />

-5%<br />

123 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

-5%<br />

6%<br />

-25% -24%<br />

Inbound CAGR to SA<br />

SH Outbound CAGR<br />

Total Outbound CAGR<br />

Angola Botswana Mozambique Namibia Zambia Zimbabwe<br />

<strong>Air</strong> Arrivals<br />

2004<br />

26,411 25,311 20,356 39,250 29,240 58,084<br />

*Calculated using figures from bottom up analysis of departures from Angola. Departures to Namibia used as a proxy for SH market for Angola.<br />

Source: SAT Arrivals Statstool; WTO Outbound <strong>Tourism</strong> Country Reports, Monitor Group Analysis


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – SA’s Relative Position<br />

Comparison of spend trends<br />

Although there appears to be a significant increase in spend by Namibians, “corrected<br />

spend*” show a general decrease in spend across all countries except Mozambique<br />

% CAGR<br />

60%<br />

40%<br />

20%<br />

0%<br />

-20%<br />

CAGR Spend by<br />

All <strong>Air</strong> Arrivals<br />

in SA = -13%<br />

-40%<br />

Spend 2004<br />

(millions)<br />

<strong>Air</strong> Arrivals 2004<br />

-4.1%<br />

-18.4%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Inbound Arrivals CAGR to SA<br />

CAGR Spend in SA<br />

CAGR Spend in SA Excluding<br />

Outliers<br />

Growth in Spend in SA vs. Growth in <strong>Air</strong> Arrivals to SA, 2002- 2004<br />

2.8%<br />

2.6% 2.6%<br />

5.5%<br />

47.4%<br />

6.0%<br />

-2.3% -2.3% -1.5%<br />

-2.0%<br />

-5.0% -4.7%<br />

-4.8%<br />

-34.1%<br />

-16.5%<br />

-32.5%<br />

Angola Botswana Mozambique Namibia Zambia Zimbabwe<br />

294 172 197 507* 285 340<br />

26,411 25,311 20,356 39,250 29,240 58,084<br />

*Outliers have not been excluded in the calculation of this amount. Sample size for spend analysis: Angola = 427; Botswana = 373; Mozambique = 387; Namibia =<br />

501; Zambia = 423; Zimbabwe = 849 All air arrivals = 37000. Spend figures are weighted up to number of arrivals for this analysis<br />

Source: SAT Arrivals Data; SAT Departure Survey 2002-2004, Monitor Group Analysis<br />

124 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


–<br />

<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong> – SA’s Relative Position<br />

Summary<br />

Angola Botswana Mozambique Namibia Zambia Zimbabwe<br />

� SH outbound<br />

departures<br />

are declining<br />

(-11%)<br />

+ � SA’s share of + � SA’s share of<br />

SH outbound SH outbound<br />

departures departures<br />

– 53%<br />

– 85%<br />

– Growing – Growing<br />

(8%)<br />

(19%)<br />

–<br />

� Decrease in<br />

arrivals to<br />

SA (-4%)<br />

–<br />

� Decrease in<br />

spend<br />

(-5%)<br />

<strong>South</strong> Africa’s relative position in the air market is strong but under threat<br />

in the six primary air markets<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

+ � SH outbound<br />

departures<br />

are growing<br />

(8%)<br />

+ � Increase in<br />

arrivals to SA<br />

(3%)<br />

–<br />

Note: Spend CAGR excludes outliers<br />

� Decrease in<br />

spend(-2%)<br />

–<br />

� SH outbound<br />

departures<br />

are declining<br />

(-6%)<br />

+ � SA’s share of<br />

SH outbound<br />

departures<br />

– 46%<br />

– Declining<br />

(-18%)<br />

–<br />

� Decrease in<br />

arrivals to SA<br />

(-2%)<br />

� + Increase in<br />

spend (3%)<br />

–<br />

� SH outbound<br />

departures<br />

are declining<br />

(-3%)<br />

+ � SA’s share of<br />

SH outbound<br />

departures<br />

– 91%<br />

– Steady<br />

(2%)<br />

+ � Increase in � Decrease in + � Increase in<br />

arrivals to<br />

arrivals to SA<br />

arrivals to<br />

SA (5%)<br />

(-2%)<br />

SA (6%)<br />

� Decrease in<br />

spend<br />

(-5%)<br />

–<br />

� SH outbound<br />

departures<br />

are declining<br />

(-5%)<br />

+ � SA’s share of<br />

SH outbound<br />

departures<br />

– 29%<br />

– Growing<br />

(27%)<br />

–<br />

– – –<br />

� Sharp<br />

decrease in<br />

spend (-17%)<br />

� SH outbound<br />

departures<br />

are declining<br />

(-25%)<br />

+ � SA’s share of<br />

SH outbound<br />

departures<br />

– 66%<br />

– Growing<br />

(8%)<br />

� Decrease in<br />

spend<br />

(-5%)<br />

125 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />


<strong>SADC</strong> <strong>Air</strong> <strong>Market</strong><br />

Summary of <strong>SADC</strong> Primary <strong>Air</strong> <strong>Market</strong>s<br />

Although most people in<br />

<strong>SADC</strong> are generally<br />

poor, the <strong>SADC</strong> air<br />

market is still relatively<br />

attractive to <strong>South</strong><br />

Africa<br />

<strong>SADC</strong> air markets are<br />

important to <strong>South</strong><br />

Africa but most arrivals<br />

come for business<br />

purposes<br />

<strong>South</strong> Africa’s relative<br />

position in the region is<br />

strong but under threat<br />

in key markets<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Very few people in <strong>SADC</strong> can afford to travel to <strong>South</strong> Africa by air<br />

� <strong>SADC</strong>’s contribution to international tourism departures is negligible (1%)<br />

� The majority (97%) of outbound travel is regional (i.e. short haul)<br />

� But short-haul outbound departures (land and air) are declining in all<br />

markets except Botswana<br />

� The region has relatively good air links to <strong>South</strong> Africa<br />

� There is sufficient capacity on most routes (except for Angola)<br />

� <strong>SADC</strong> air arrivals make-up 75% of <strong>African</strong> air arrivals in <strong>South</strong> Africa<br />

� There has been steady growth (2.4%) in air arrivals from <strong>SADC</strong><br />

� However, most of the travel is for business purposes (the primary<br />

activity is shopping)<br />

� <strong>SADC</strong> air’s contribution to spend in <strong>South</strong> Africa is small (R2.3 Billion)<br />

and declining (-12%)<br />

� <strong>South</strong> Africa has 61% share of <strong>SADC</strong>’s short haul departures (land & air)<br />

� <strong>South</strong> Africa has an increasing share of air arrivals in three of the six<br />

selected countries<br />

� Decreasing spend in <strong>South</strong> Africa by all the air markets (except<br />

Mozambique)<br />

It is clear that a one size fits all approach doesn’t work. Going forward SAT<br />

plans to develop specific interventions for each of these markets.<br />

126 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Agenda<br />

� Context<br />

� Review of Arrivals from <strong>SADC</strong> 2002-2005<br />

� A strategy for growing <strong>SADC</strong> Arrivals<br />

– Land <strong>Market</strong><br />

– <strong>Air</strong> <strong>Market</strong><br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Attractiveness of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� Importance of <strong>SADC</strong> <strong>Air</strong> to <strong>South</strong> Africa<br />

� <strong>South</strong> Africa’s relative position in each market<br />

� Way Forward in <strong>SADC</strong><br />

127 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

The volume of general holiday tourists and first time visitors is declining<br />

Percent of arrivals<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

02-05<br />

CAGR<br />

9%<br />

Business<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>SADC</strong>: % of Volume by Purpose<br />

2002-2005 Combined<br />

5%<br />

Business<br />

<strong>Tourism</strong><br />

23%<br />

General<br />

Holiday<br />

14% 15%<br />

Business<br />

Shopping<br />

Personal<br />

Shopping<br />

24%<br />

VFR<br />

5% 5%<br />

Medical<br />

Other<br />

-21.7% 10.9% -6.7% 34.0% 20.5% 17.7% 18.5% -8.7%<br />

<strong>SADC</strong>: % of Volume by Times Visited<br />

2002-2005 Combined<br />

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g.<br />

visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting,<br />

exhibition, event or as part of an incentive<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

Percent of arrivals<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

02-05<br />

CAGR<br />

7%<br />

Potentially the result of<br />

reaching the saturation<br />

point in many <strong>SADC</strong><br />

markets<br />

11%<br />

12%<br />

15%<br />

55%<br />

First Time 2-3 Times 4-5 Times 6-9 Times 10+<br />

Times<br />

128 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

1%<br />

Lived in<br />

SA<br />

Before<br />

-10.5% -18.2% -16.5% 11.7% 23.9% -100.0%


Way Forward in <strong>SADC</strong><br />

Furthermore, the average length of stay for the <strong>SADC</strong> region has declined<br />

Number of nights<br />

10<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

8<br />

6<br />

4<br />

2<br />

0<br />

8.1<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

Length of Stay, <strong>SADC</strong> 2002-2005<br />

6.3<br />

2002 2003 2004 2005<br />

5.5<br />

5.2<br />

02-05<br />

CAGR<br />

-13.6%<br />

129 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

The decline in the length of stay was seen in the big <strong>SADC</strong> land markets<br />

Number of Nights (Mean)<br />

25<br />

20<br />

15<br />

10<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

5<br />

0<br />

CAGR<br />

2002-2005<br />

Angola<br />

Length of Stay: Mean by <strong>SADC</strong> <strong>Market</strong>, 2002 & 2005<br />

Botswana<br />

Lesotho<br />

Source: Combined SAT Departure Survey Datasets, 2002-2005<br />

Mozambique<br />

Swaziland<br />

Zambia<br />

Zimbabwe<br />

Other <strong>SADC</strong><br />

<strong>Air</strong><br />

2002<br />

2005<br />

Other <strong>SADC</strong><br />

Land/<strong>Air</strong><br />

15.5% -29.3% -21.8% -13.0% -15.8% 2.8% 1.1% -2.0% -6.1%<br />

130 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

The average number of provinces visited is generally very low<br />

Number of Provinces Visited<br />

1.6<br />

1.2<br />

0.8<br />

0.4<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

Source: Combined SAT Departure Survey Dataset, 2002-2005<br />

Average Number of Provinces Visited (<strong>SADC</strong>), 2002-2005<br />

0.1%<br />

-1.8% 1.1%<br />

1.20 1.20 1.18 1.19<br />

2002 2003 2004 2005<br />

02-05<br />

CAGR<br />

-0.21%<br />

03-05<br />

CAGR<br />

-0.35%<br />

131 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

Local economic growth may lead them to develop their own retail sectors<br />

� Currently, there are 129 Shoprite supermarkets in 16 <strong>African</strong> countries<br />

outside of <strong>South</strong> Africa<br />

– Countries include Angola, Botswana, Lesotho, Mozambique,<br />

Namibia, Swaziland, Tanzania, Zambia, Zimbabwe and others<br />

� During this year, Shoprite plans to build two more shopping centres in<br />

Angola and one in Namibia, as well as two supermarkets in<br />

Mozambique<br />

� The U save discount chain currently consists of 92 outlets in seven<br />

countries.<br />

– There are plans for up to 200 across Africa<br />

� If we use Botswana’s GNI per capita in 2003 as a barometer for when a market is developed<br />

enough to support its own retail infrastructure, at current growth rates, <strong>SADC</strong> countries will<br />

have major presence of <strong>South</strong> <strong>African</strong> retailers by around:<br />

� Within 10 years, the market for regional shoppers may begin to diminish<br />

� SAT needs to ensure that these travellers still come for leisure purposes<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

� Edcon – with ten retail brands including Edgars, CNA, and Jet– has<br />

over 900 stores in <strong>South</strong> Africa, Botswana, Namibia, Swaziland and<br />

Lesotho<br />

– Approximately 10% of stores are outside of <strong>South</strong> Africa<br />

� Jet, a popular discount clothing store, has over 220 stores in <strong>South</strong><br />

Africa, Botswana, Namibia, Lesotho and Swaziland<br />

– <strong>African</strong> expansion will likely come from Jet<br />

� Edcon recently announced plans to open 100 more outlets in the next<br />

year, including 70 new Jet and Legit stores<br />

Angola Lesotho Mozambique Swaziland Zambia<br />

2010 2013 2026 2008 2020<br />

Source: www.shoprite.co.za, www.edcon.co.za, World Bank, Monitor analysis,<br />

132 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

The HIV rates in most of the major <strong>SADC</strong> markets are relatively high<br />

Percentage<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

Botswana<br />

Lesotho<br />

Mozambique<br />

Swaziland<br />

1<br />

Zimbabwe<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Prevalence of HIV, Total (% of Population Ages 15-49)<br />

24% 24% 24% 23%<br />

Predicted Loss in Life Expectancy due to HIV/ Aids in Children Born in 2000<br />

16%<br />

Botswana Lesotho Mozambique Swaziland Zimbabwe<br />

30<br />

39<br />

38<br />

38<br />

56<br />

0 10 20 30 40 50 60 70 80<br />

1 For children born in 1999<br />

Source: U.S. Census Bureau, 2000; Department of Statistics and Demography, University of Lesotho; World Bank Economic Indicators<br />

24<br />

12<br />

16%<br />

50<br />

Life Expectancy at Birth (Years)<br />

32<br />

32<br />

54<br />

6<br />

62<br />

32%<br />

33%<br />

70<br />

71<br />

22%<br />

20%<br />

Predicted Life<br />

Expectancy<br />

2003<br />

2005<br />

Loss in Life Expectancy<br />

due to HIV/AIDS<br />

133 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

This may explain some of the decline in volume from tourists aged over 45<br />

Percent of arrivals<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

11%<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

33%<br />

<strong>SADC</strong>: % of Volume by Age<br />

2002-2005 Combined<br />

31%<br />

18-24 yrs 25-34 yrs 35-44 yrs 45-54 yrs 55-64 yrs 65+ yrs<br />

02-05 CAGR 5.3% 18.7% 13.2% -6.6% -20.5% -13.6%<br />

15%<br />

7%<br />

134 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission<br />

4%


Way Forward in <strong>SADC</strong><br />

However, there is room for improvement in some of the <strong>SADC</strong> markets<br />

Compared to the other <strong>SADC</strong> markets, <strong>South</strong> Africa has relatively low market shares in<br />

Botswana and Zimbabwe<br />

Percent of Residents<br />

120%<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

50%<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

<strong>Market</strong> Share – 2005 (<strong>SADC</strong>)<br />

100%<br />

80%<br />

96%<br />

56%<br />

Botswana Lesotho Mozambique Swaziland Zimbabwe<br />

Source: Combined SAT Departure Survey Data, 2002-2005, World development Indicators World Bank, US Census Bureau<br />

135 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

General Holiday is still an important segment in many <strong>SADC</strong> markets<br />

Although General Holiday from Zambia and Zimbabwe are the only countries where this<br />

segment is growing<br />

Ten Thousands<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

4.3<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

% Volume of<br />

General Holiday<br />

CAGR<br />

2002-2005<br />

Volume of General Holiday Tourists, 2002-2005 (<strong>SADC</strong>)<br />

53.3<br />

93.7<br />

49.4<br />

Angola Botswana Lesotho Mozambique Swaziland Zambia Zimbabwe<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

37% 17% 17% 26% 23% 27% 37%<br />

-10.9 -15.2 -2.8 -5.3 -21.2 4.9 5.7<br />

76.6<br />

13.3<br />

93.4<br />

136 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Way Forward in <strong>SADC</strong><br />

The top reason for visiting is to relax and escape, and not related to shopping<br />

<strong>SADC</strong> tourists also visit <strong>South</strong> Africa because of the value for money and the wide variety of<br />

available merchandise<br />

Thousands<br />

1,200<br />

1,000<br />

800<br />

600<br />

400<br />

200<br />

979<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

0<br />

To be able to<br />

relax and<br />

escape<br />

Volume of Tourists by Reasons for Visiting SA, 2002-2005 (<strong>SADC</strong>)<br />

895 879 874<br />

Value for<br />

money<br />

Good pricing<br />

for<br />

merchandise<br />

Source: Combined SAT Departure Survey Data, 2002-2005<br />

Availability of a<br />

wide variety of<br />

merchandise<br />

723<br />

The scenic<br />

beauty<br />

620 619<br />

Experiencing a<br />

different<br />

country<br />

<strong>South</strong> Africa's<br />

uniqueness<br />

Top Ten Reasons<br />

559 551 526<br />

Good variety of<br />

merchandise<br />

Diversity of<br />

attractions<br />

<strong>South</strong> Africa's<br />

different<br />

cultures<br />

137 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Note on Data Constraints: There are significant challenges associated with<br />

tourism strategy development in Africa<br />

� The strategy for Africa represents an emerging, living strategy that will change with time as knowledge and<br />

experience of the <strong>African</strong> market develops and deepens. At this stage we have not been able to do a full<br />

segmentation study but have developed our knowledge through extensive qualitative research and<br />

inbound segmentation of existing consumers<br />

� As we build strategy systematically, there will be choices to focus on those parts of the market which are<br />

more important, have high potential, and which can deliver results from limited resources in the short and<br />

medium term<br />

<strong>Market</strong>ing SA in Africa: Land <strong>Market</strong>s second edition 2007<br />

Research in Africa is Complex and Costly<br />

� General economic statistics are often not available or unreliable<br />

– The countries, like many developing nations, are very heterogeneous with wide<br />

disparities in incomes making market estimates difficult<br />

� <strong>Tourism</strong> related statistics are also often either not available or highly unreliable<br />

� Very difficult and costly to undertake primary research<br />

– While SAT has undertaken some quantitative primary research in selected areas,<br />

the data that is available for Africa is less detailed and verifiable than in other<br />

markets<br />

Therefore the Africa Strategy is Emerging<br />

138 Copyright © 2007 SA <strong>Tourism</strong>: Cannot be used without permission


Other SA <strong>Tourism</strong> publications:<br />

1. The <strong>Tourism</strong> Growth Strategy 2008-2010<br />

2. The Global Competitiveness Project Report and Master Plan 2005-2010<br />

3. <strong>Market</strong>ing SA in Africa<br />

East and West Africa (with focus on Kenya and Nigeria), and Middle East<br />

<strong>SADC</strong> land and air markets<br />

1. <strong>Market</strong>ing SA in the United States<br />

2. Asia:<br />

<strong>Market</strong>ing SA in Australia<br />

<strong>Market</strong>ing SA in China<br />

<strong>Market</strong>ing SA in India<br />

<strong>Market</strong>ing SA in Japan<br />

6. Europe<br />

<strong>Market</strong>ing SA in France<br />

<strong>Market</strong>ing SA in Germany<br />

<strong>Market</strong>ing SA in Netherlands<br />

<strong>Market</strong>ing SA in the UK<br />

7. Annual and Quarterly reports on Foreign <strong>Tourism</strong> Arrivals to SA


CAS-COD-Prez-Date-CTL 140<br />

For more information contact our Head Office:<br />

Confidential<br />

<strong>South</strong> <strong>African</strong> <strong>Tourism</strong><br />

Bojanala House<br />

90 Protea Road<br />

Chislehurston<br />

Sandton, 2196<br />

Private Bag X10012<br />

Sandton 2146<br />

Call centre: +27 83 123 6789<br />

Email<br />

address: info@southafrica.net<br />

Copyright © 2006 Monitor Company Group, L.P. — Confidential — XXX

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