Annual Performance Plan Financial Year 2022/23

STRATEGIC OVERVIEW OF SA TOURISM MISSION The SA Tourism Board is a Schedule 3A public entity established in terms of Section 9 of the Tourism Act, Act 3 of 2014. LEGISLATIVE MANDATE Marketing South Africa both internationally and domestically to increase the volume of tourists and the value they add to the economy by:

Implementing an integrated tourism marketing strategy for South Africa
Promoting South Africa as a world-class business events destination
Facilitating the delivery of service-oriented, quality-assured tourism experiences
Positioning SA Tourism as an industry thought leader
Championing a digital outlook for the industry
Enhancing stakeholder participation and collaboration To position South Africa as an exceptional tourism and business events destination that offers a value-for-money, quality tourist experience that is diverse and unique. VISION<br>

STRATEGIC OVERVIEW OF SA TOURISM IMPACT ON POLICY MANDATES POLICY MANDATES The Economic Reconstruction and Recovery Plan (ERRP) was published in late 2020 as the country’s plan for the overall recovery of the economy following the impact of the COVID-19 pandemic. Support for tourism recovery and growth is one of the eight priority interventions, emphasising reigniting demand, rejuvenating supply and building enabling capability.

Following the ERRP, the Tourism Sector Recovery Plan (TSRP) was adopted by Cabinet in April 2021. The role for SA Tourism as per the TSRP is to stimulate domestic demand through targeted initiatives and campaigns and to execute a global marketing programme to reignite international demand.<br>

CONTENTS 1 STRATEGIC OVERVIEW OF SA TOURISM 2 MARKETING PRIORITISATION & INVESTMENT FRAMEWORK 3 Environmental Analysis 4 SA TOURISM’s STRATEGY 5 PROGRAMMES, TARGETS & BUDGET ALLOCATION<br>

MARKETING PRIORITISATION & INVESTMENT FRAMEWORK In 2016/17, in partnership with the tourism industry, South African Tourism developed a Marketing Prioritisation and Investment Framework (MPIF) that focused on:

Identifying markets,
Optimising marketing investments across the identified target markets, and
Distributing resources to help meet the set objectives.

In early 2020, SA Tourism reviewed the MPIF, using 2019 as the base year. The framework is based on 33 variables related to performance, outlook, South Africa’s ability to win in the market, return on past investments, and other criteria. The 2020 review did not only refresh the data, but included new indicators, such as the health index, cost of travel, and country stringency index in the model, in order to ensure a robust view of the current travel environment. The MPIF priority markets were overlayed with pertinent information related to countries’ rebound rates, and marketing investments were prioritised accordingly. The revised MPIF aims to: 24 markets were prioritised and segmented into 16 “growth” and 8 “defend” markets, with an additional set of markets earmarked as “watchlist”. The 24 prioritised markets accounted for 92% of all international trips in 2019.<br>

PRIORITY SOURCE MARKETS IDENTIFIED TO GROW TOURISM INTO SOUTH AFRICA, 2020-2025 Watchlist markets are key to monitor, as SA Tourism needs to protect its previous marketing investments. This seeks to build demand in second-tier markets that provide a pipeline for future growth, and that may diversify the portfolio of source countries to mitigate the risk of depending on only 24 markets to drive tourism recovery.<br>

SOUTH AFRICAN TOURISM’S PRE-COVID TARGET COMPARED TO POST-COVID TARGET The unprecedented COVID-19 pandemic and its effects have decimated the ability of many of the MPIF source markets to travel to South Africa. Source market travel restrictions, international government regulations, and slashed airline routes continue to impact the ability of international travel to South Africa.

Thus, the relative priority of the 24 markets must be considered, in conjunction with dynamic and current information on variables that will affect the likelihood of travel from each market. These include the COVID-19 pandemic severity and outlook, Government Stringency Index, Accessibility (land, air, and sea), and vaccination rollout. These variables significantly impact confidence levels for travel.<br>

CONTENTS 1 STRATEGIC OVERVIEW OF SA TOURISM 2 MARKETING PRIORITISATION & INVESTMENT FRAMEWORK 3 Environmental Analysis 4 SA TOURISM’s STRATEGY 5 PROGRAMMES, TARGETS & BUDGET ALLOCATION<br>

External Environmental Analysis<br>

The South African Tourism Road to Recovery RECOVERY OF INTERNATIONAL TOURIST ARRIVALS INTO SOUTH AFRICA RELATIVE TO THE SAME MONTH IN 2020 The current and medium-term outlook for international travel remains volatile and continues to be in constant flux as the virus evolves, pandemic trajectories fluctuate and, as vaccine development and dissemination advances. This means it is impossible to predict travel patterns. It is thus crucial for SA Tourism’s marketing efforts to be dynamic and adaptive to differing pandemic phases in relevant markets to achieve the longer-term desired growth. There is also the need for a consistent presence in the MPIF markets to ensure that destination South Africa remains a top-of-mind destination.<br>

The South African Tourism Road to Recovery RELATIVE CONTRIBUTION TO SOUTH AFRICA’S TOURISM SPEND (ZAR BILLIONS) OF PRIORITY SOURCE MARKETS BY REGION, 2019 TO 2022 Domestic followed by regional tourism in supporting tourism recovery in the medium term is critical. Predictions are that domestic and regional markets will contribute 86% of South African tourism spend in 2021 and 82% in 2022. A further indicator of the importance of domestic and regional tourism in on the ground recovery is evident in the patterns of accommodation occupancies across 2020.

This calls for a drastic re-imagination of tourism in South Africa focusing on servicing and growing domestic and regional tourism to drive recovery of the tourism sector in the near to medium term. PERCENTAGE CHANGE IN OCCUPANCY IN 2020 RELATIVE TO THE SAME MONTH in 2019<br>

Internal Environmental Analysis<br>

CONTENTS 1 STRATEGIC OVERVIEW OF SA TOURISM 2 MARKETING PRIORITISATION & INVESTMENT FRAMEWORK 3 Environmental Analysis 4 SA TOURISM’s STRATEGY 5 PROGRAMMES, TARGETS & BUDGET ALLOCATION<br>

16 Create Demand
(Content to capture interest and attention) Convert Demand
(In-market lead generation and conversion, and delegate boosting) Travel Journey
(Addressing barriers – ease of travel) Quality Product and Experiences
Sector Transformation Business Enablement, Governance and Management Diagnostic Analysis and Insights The SA Tourism Value Chain THE SA TOURISM 5 YEAR STRATEGIC PLAN 2020-2025: VALUE CHAIN TO ACHIEVE SA Tourism IMPACT & OUTCOMES CUSTOMER:
B2C:
- Domestic
Regional
Select Overseas
B2B:
Targeted Sectors<br>

SOUTH AFRICAN TOURISM STRATEGIC DOMAINS AND OBJECTIVES DOMAINS OBJECTIVES Amplify the creation and conversion of visitor demand. Ensure that there is adequate supply of relevant, quality products that deliver a superior visitor experience. Improve governance and compliance. Enhance operational efficiencies.
Effectively leverage data and technology to enhance operational and marketing efficiencies. Optimise the tourism portfolio through partnerships and collaboration, focusing on the tourism value chain. Across the four domains, SA Tourism has a twofold intent in terms of its strategy. Firstly, to lead the recovery of the tourism sector and reassert South Africa as a preferred leisure and business events destination to relevant markets; and secondly, to orient for the future of tourism in an environment of rapid change.<br>

CONTENTS 1 STRATEGIC OVERVIEW OF SA TOURISM 2 MARKETING PRIORITISATION & INVESTMENT FRAMEWORK 3 Environmental Analysis 4 SA TOURISM’s STRATEGY 5 PROGRAMMES, TARGETS & BUDGET ALLOCATION<br>

SA TOURISM BUDGET PROGRAMMES SA Tourism is constituted by the following budget programmes, which inform the FY22/23 APP:<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 1: CORPORATE SUPPORT<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 1: CORPORATE SUPPORT<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 2: BUSINESS ENABLEMENT<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 3: LEISURE TOURISM MARKETING<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 3: LEISURE TOURISM MARKETING<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 4: BUSINESS EVENTS<br>

ANNUAL & QUARTERLY TARGETS FOR PROGRAMME 5: TOURIST EXPERIENCE<br>

PROJECTED REVENUE FOR 2022/23 MTEF<br>

PROJECTED EXPENDITURE FOR 2022/23 MTEF<br>

Thank You.<br>