11 November 2016 Travel Trade Research TABLE OF

Transcript:11 November 2016 Travel Trade Research TABLE OF:
11 November 2016 Travel Trade Research TABLE OF CONTENTS: Formulating the Trade Strategy Project Objective and Status Update Global Travellers’ Purchase Process Tourism Value Chain: Products and Services Providers Products/services providers in South Africa comprises accommodation providers, airlines, transportation providers (including car rental services) and activity operators and excursion/activities South Africa Ground Handlers Landscape: Summary Source: Grail Research analysis South Africa’s accommodation industry includes hotels for all income segments, ranging from budget hotels (2-star, 3-star) to luxury hotels (4-star and 5-star) as well as other accommodations including service apartments, hostels and Bread and Breakfast. 4-star hotels are leading the segment, accounting for 36% of the total hotel room revenues in 2015 South Africa’s airline industry offers both scheduled flight carriers and low-cost carriers. Car rental sales in South Africa increased at a rate of 7% in 2014, primarily driven by business car rentals that represented ~51% of the total market. South Africa offers a lot of excursion/activities, including game viewing and safaris, shopping, beach and adventure sports activities Key drivers for selling South Africa as a tourist destination include affordable destination, wide variety of offerings and favourable weather, while the key inhibitors include perception among the tourists as a less-safe destination, high cost of flights and lack of adequate skilled labour in South Africa Ground handlers expectations from SA Tourism include: 1) access to information, 2) clarity on role of SA Tourism, 3) process to alter agreements/partnerships in view of the operating environment, 4) simplify the existing processes such as JMAs and 5) extending support in facilitating dialogue for smooth transactions, such as for visa and air connectivity South Africa’s accommodation industry is recovering from the oversupply of rooms after the FIFA World Cup in 2010 Available Rooms by Category, 2015 Source: 'Travel in South Africa', Euromonitor International, Sep 2015; Hotels Outlook: 2016–2020, PWC, Jul 2016 Overview The accommodation industry in South Africa can be categorised in four key segments – 3-star hotels, 4-star hotels, 5-star hotels and others, which include campsites, hostels, and self-catering apartments In 2015, 3-star hotels accounted for 36% of the total rooms and 32% of the total hotel room revenue in South Africa Room revenue of 3-star hotels is expected to rise from ZAR 4.6 Bn in 2015 to ZAR 6.6 Bn in 2020 In 2015, 4-star hotels accounted for 36%, highest among all categories, of the total hotel room revenues in South Africa In