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Annual Report 2016201 SAMOA TOURISM AUTHORITY “2017 International Year of Sustainable Tourism for Development” ANNUAL REPORT 2016 -2017 22 November 2017 The Honourable Speaker of the House Afioga Leaupepe Toleafoa Faafisi Legislative Assembly MULINUU SAMOA TOURISM AUTHORITY ANNUAL REPORT 2016 - 2017 In accordance with Section 23 of the Public Bodies (Performance and Accountability) Act 2001, I have the privilege to submit before Parliament the Annual Report of the Samoa Tourism Authority for the financial year, July 2016 to June 2017. Faafetai, Sala Fata Pinati MINISTER OF TOURISM TABLE OF CONTENTS 1.0 MESSAGE FROM THE MINISTER.………………………………………………………2 2.0 MESSAGE FROM THE CHIEF EXECUTIVE OFFICER………………………………….3 3.0 EXECUTIVE SUMMARY..………………………………………………………………..5 4.0 SALES AND MARKETING…..................................................................................12 5.0 PLANNING & DEVELOPMENT………………………………………………………..25 7.0 RESEARCH AND STATISTICS.………………………………………………….…….37 8.0 POLICY AND SECTOR COORDINATION…………………………………………...46 9.0 FINANCE AND CORPORATE SERVICES…………………………………………...56 10.0 AUDITED ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2017…..…………...….62 1 MESSAGE FROM THE MINISTER It is my duty as the Minister of Tourism to present the Annual Report for the Financial Year July 2016 to June 2017 on behalf of the Samoa Tourism Authority Board of Directors. The Government of Samoa continues to support tourism as a priority sector that has proven its potential in delivering major economic development opportunities, as well as sustain national cultural heritage and Samoa’s natural environment. The Samoa Tourism Authority is the lead government agency mandated to coordinate the development of Tourism and also promote quality Sustainable Tourism that is beneficial to Samoa and satisfactory to tourists seeking a premier Samoan Experience. 2017 is the UN acclaimed Year for Sustainable Tourism that attested to the Honourable Prime Minister of Samoa being selected as the Chair for this Special Committee. The Budget for this Financial Year of $9,050,279 decreased by 1.9% when compared to the previous financial year with a total grant of $9,225,441 of which the Authority had allocated to and employed constructively for its Key Outputs Annual planned activities. The Tourism Sector however continues to be assisted by the Government of New Zealand through the Samoa Tourism Support Programme which changed its name to Samoa Tourism Growth Partnership during the year to reflect the new funding arrangement. This agreement was ratified by the New Zealand Government and the Samoa Government in early March 2017. The Samoa Tourism Authority staff continued to work diligently during the year to achieve its annual work programme targets and especially to maintain the delivery of its commitment in order for Samoa to be a preferred Tourist Destination supported by the Tourism Private Sector and Development Partners and for this I thank all. Ia Manuia! Sala Fata Pinati MINISTER OF TOURISM 2 FROM THE CHIEF EXECUTIVE OFFICER The STA Board of Directors, Management and Staff are appreciative of our partners who continue to render support in the coordination and development of the Sector. We thank the Minister of Tourism the Honourable Sala Fata Pinati for progressing the vision in action for Samoa tourism on our shores. The Board of Directors continues to be instrumental in policy matters led by our Chairlady Adele Kruse and assisted by 6 appointed Board of Directors prominent figures from the Tourism Industry. The Authority’s financial performance and position for the year as reported through its audited financial accounts is of very good standard when compared to the previous year as a result of the Authority’s creative initiatives and investments made in the previous year for their potential beneficial outcomes for Samoa’s Tourism Industry. Visitor Arrivals and Earnings achieved minimal annual growth at 0.2% and 0.4% respectively through the 146,437 visitors who contributed SAT$392.2million into the economy. A minimal increase compared to the previous year when Samoa hosted the Manu Samoa vs All Blacks Match and the Youth Commonwealth Games. The Cruise Ships that berthed at the Matautu Port increased also from 9 to 13 during the year. During the Samoa Tourism Forum 2017 (STF 2017) themed 'Growing Sustainable Tourism', STA announced the NZ Samoa Tourism Growth Partnership (STGP), and launched the STA Corporate Website and the Horticultural Project with SROS (Orchids). STA during the year hosted the Agri-Tourism Conference in close partnership with the Ministry of Agriculture and Fisheries, EU-ACP Technical Centre for Agricultural and Rural Cooperation (CTA), and the Pacific Islands Private Sector Organisation (PIPSO). The Agritourism Park Project is well underway with the establishment of its approved location at Atele. In January, 2017 Samoa Tourism Authority hosted the Inaugural Tourism Excellence Award with the main purpose of acknowledging and recognizing our Tourism Industry 3 and Partners and at the same time encourage the improvement of products and services. The Awards was a resounding success. The content of this Report, features in detail the programmes implemented by the sector and guided by the Samoa Development Strategy and the Samoa Tourism Sector Plan 2014 – 2019 with the Vision that ‘By 2019 Samoa will have a growing tourism sector, which engages our tourists and people and is recognised as the leading Pacific destination for sustainable tourism’. Ma le fa’aaloalo tele lava Papalii Matatamalii Sonja Hunter CHIEF EXECUTIVE OFFICER 4 3.0 EXECUTIVE SUMMARY This Annual Report covers the Financial Year July 2016 - June 2017 and informs on the Government’s commitment to the development of the tourism sector. The Authority received a grant of $9,050,279 for the implementation of Planning & Development, Policy & Sector Coordination, Tourism Research and Training, and of course the Sales & Marketing. The report outlines the functions of the Authority as stipulated by the Tourism Development Act 2012, as well as the main functions of each division. This year saw to the changing by the Board of Directors of the names of two Divisions to properly reflect their responsibilities and therefore became the Policy and Sector Coordination Division and Sales and Marketing Division. This year also saw to the changing of the name and extension of the period of the STSP 2014 – 2019 to STGP 2017-2021 that was launched in April 2017. There were four (4) Samoa Tourism Industries Council (STIC) Meetings, three (3) Samoa Tourism Industries Alliance (STIA) meetings held during the year and the Samoa Tourism Forum (STF) that transpired in April 2017. The Apia Waterfront Project launched last year by the Hon Prime Minister, Tuilaepa Fatialofa Lupesoliai Dr. Sailele Malielegaoi will be receiving funding from the NZ Aid Programme to reconfigure the area in-front of the Government Building into an events space. Huizhou Municipality from China is also developing a concept design for the Samoa-China Friendship Park behind the Government Building in accordance with the Waterfront Plan. The Agri-Tourism project Phase 2 (Concept and Preliminary Plan) is completed and progressing into Phase 3. Ongoing communications and dialogues have been maintained at the sector level, ministries level, development partner level and within the Authority to ensure that information is shared and understood widely and adequately by all concerned stakeholders and agencies. STA Corporate Plan 2014 – 2017 completed its life period in this fiscal year with the successful implementation of all Strategies and a few activities that rolled over to 5 the next Plan. A new Corporate Plan 2017-2020 had been developed and widely consulted with our Key Stakeholders and Organisations and had been approved and endorsed by Cabinet for implementation. Total visitor arrival numbers of 146,437 increased by 0.23% when compared to the previous financial year or an overall minimal increase of 333 visitors. Holiday and Business for purpose of travel both grew over the period and VFR continues to remain in second place. Tourism earnings for the period recorded an increase of 0.4% or SAT$1.4 million with VFR being the highest contributor and New Zealand and Australia continue to be our main source markets with a 72% total share of visitor arrivals or individually at 0.48 and 0.24 respectively. The Samoa Tourism Authority Mission is ‘to promote quality Sustainable Tourism that is beneficial to Samoa and satisfactory to tourists seeking a premier Samoan Experience”. Our Core Values and Principles are: Respect Faaaloalo Honesty Faamaoni Impartiality Le Faaituau Effective & Efficient Lelei na Fuafua ma Vave Faataunuu Accountability Mafai ona Tali atu & Faatino Transparency Pulega Manino 3.1 Functions of the Authority The core functions of the Authority as set out in its main Legislation – Tourism Development Act 2012 Part V Section 16(1), (a) – (m) are stipulated below: 1) The Authority shall be responsible for the administration, promotion and regulation of tourism industry in Samoa in accordance with this Act, and other relevant laws. a) hosting or participating in any forum or meeting in relation to any purpose provided for under this Act, and ensuring that the resolutions of any forum 6 convened to promote engagement between relevant stakeholders are actioned and addressed for the benefit of tourism in Samoa; b) formulating proposals for incentive schemes to develop tourism, and performing any function and exercising any power in relation
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