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South African Tourism Annual Report 2018 | 2019

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South African Tourism Annual Report 2018 | 2019 ANNUAL REPORT 2018 | 2019 GENERAL INFORMATIONSouth1 African Tourism Annual Report 2018 | 2019 CELEBRATING 25 YEARS OF TOURISM 2 ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION TABLE OF CONTENTS PART A: GENERAL INFORMATION 5 Message from the Minister of Tourism 15 Foreword by the Chairperson 18 Chief Executive Officer’s Overview 20 Statement of Responsibility for Performance Information for the Year Ended 31 March 2019 22 Strategic Overview: About South African Tourism 23 Legislative and Other Mandates 25 Organisational Structure 26 PART B: PERFORMANCE INFORMATION 29 International Operating Context 30 South Africa’s Tourism Performance 34 Organisational Environment 48 Key Policy Developments and Legislative Changes 49 Strategic Outcome-Oriented Goals 50 Performance Information by Programme 51 Strategy to Overcome Areas of Underperformance 75 PART C: GOVERNANCE 79 The Board’s Role and the Board Charter 80 Board Meetings 86 Board Committees 90 Audit and Risk Committee Report 107 PART D: HUMAN RESOURCES MANAGEMENT 111 PART E: FINANCIAL INFORMATION 121 Statement of Responsibility 122 Report of Auditor-General 124 Annual Financial Statements 131 CELEBRATING 25 YEARS OF TOURISM ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION 3 CELEBRATING 25 YEARS OF TOURISM 4 ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION CELEBRATING 25 YEARS OF TOURISM ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION 5 CELEBRATING 25 YEARS OF TOURISM 6 ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION SOUTH AFRICAN TOURISM’S GENERAL INFORMATION Name of Public Entity: South African Tourism Registered Office Address: Bojanala House 90 Protea Road Chislehurston Johannesburg 2196 Gauteng South Africa Postal Address: Private Bag X10012 Sandton 2146 Gauteng South Africa T: +27 11 895 3000 W: www.southafrica.net External Auditor’s Information: Auditor-General of South Africa 300 Middel Street, New Muckleneuk Pretoria 0001 Gauteng South Africa Company Secretary Takalani Ndou (acting since November 2017 - March 2019) CELEBRATING 25 YEARS OF TOURISM ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION 7 SOUTH AFRICAN TOURISM COUNTRY OFFICES 1 2 3 The Netherlands Australia United Kingdom and Ireland South African Tourism South African Tourism South African Tourism Jozef Israëlskade 48A Suite 302, Level 3, 117 York Street 2nd Floor, 1 and 2 Castle Lane Amsterdam 1072 SB Sydney NSW 2000 London SW1E6DR T: (+31) 20 471 3181 T: (+61) 2 926 15000 T: (+44) 20 897 19350 F: (+31) 20 662 9761 F: (+61) 2 926 12000 F: (+44) 20 894 46705 E: [email protected] E: [email protected] E: [email protected] W: www.southafrica.net W: www.southafrica.net W: www.southafrica.net 4 5 6 Brazil United States Nigeria South African Tourism South African Tourism South African Tourism Av. Paulista, 1159, conj. 413 Suite 2200, 500 Fifth Avenue 8th Floor Church Gate Towers 2, São Paulo New York 10110 Plot PC 31, Church Gate Street, T: (+55) 11 250 66884 Telephone: (+1) 212 471 2929 Victoria Island, Lagos F: (+55) 11 250 66884 F: (+1) 212 764 1980 T: (+234) 01 270 0219 20 E: [email protected] E: [email protected] E: [email protected] W: www.southafrica.net W: www.southafrica.net W: www.southafrica.net 7 8 9 China Japan India South African Tourism South African Tourism South African Tourism Suite 2606, Zhongyu Plaza, 6 Gong Akasaka Lions Building 2F 1-1-2 Unit 3, Ground Floor TCG Financial Ti North Road, Chaoyang Moto Akasaka Minato ku, Tokyo Centre, C-53 “G” Block Beijing 100027 107-0051 Bandra-Kurla Complex, Bandra (E) T: (+86) 10 852 36881 T: (+81) 3 347 87601 Mumbai 400 051, Maharashtra F: (+86) 10 852 36897 F: (+81) 3 347 87605 T: (+91) 22 615 85100 E: [email protected] E: [email protected] F: (+91) 22 615 86101 W: www.southafrica.net W: www.southafrica.net E: [email protected] W: www.southafrica.net 10 11 Germany France South African Tourism South African Tourism moved out of its Paris office space due to the high cost of Friedensstr. 6-10 rent. The team has been housed in virtual offices in Paris while suitable offices Frankfurt 60311 are being sought. T: (+49) 800 118 9118 E: [email protected] W: www.southafrica.net CELEBRATING 25 YEARS OF TOURISM 8 ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION CELEBRATING 25 YEARS OF TOURISM ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION 9 SOUTH AFRICAN TOURISM’S BANKERS’ INFORMATION OFFICE INSTITUTION Absa Standard Bank Head office Investec Nedbank Business Pretoria Nedbank Tourism Grading Council Nedbank The Bank of America New York 51 West 51st Street, New York, NY 10019, United States Nedbank London London Millennium Bridge House, 2 Lambeth Hill, London EC4V 4GG, United Kingdom MUFG Bank, Limited Tokyo Toranomon branch, 1-4-2 Toranomon, Minato-ku, Tokyo 105-0001, Japan First Rand Bank Limited Mumbai TCG Financial Centre, Plot No. c 53, G Block, Bandra Kurla Complex, Mumbai 400051, India Volksbank e.G. Frankfurt Boersenstr. 7-11, Frankfurt D-60313, Germany Credit du Nord Paris 40 Avenue Niel 75017, Paris, France ABN-AMRO Bank Amsterdam Postal address: Box 75580, 1070 AN, Amsterdam, The Netherlands Bank of China Beijing 6 Gong Ti North Road, Chaoyang, Beijing 100027, China Westpac Bank Sydney Cnr Market & Clarence streets, Sydney, Australia Stanbic IBTC Bank Nigeria Churchgate Towers: PC 30, Afribank Street, Victoria Island, Lagos CELEBRATING 25 YEARS OF TOURISM 10 ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION LIST OF DEFINITIONS ABBREVIATIONS & ACRONYMS DEFINITIONS 5-in-5 Strategy – South African Tourism’s Enhanced long-term and short-term effects produced by a Strategy for Growth, which aims to increase the number development intervention, or the results of achieving of international arrivals and domestic holiday trips by 5 specific outcomes such as reducing poverty and creating million within five years, by the end of 2021. The strategy jobs. was approved in 2017/18 and covers the five-year period 2017/18 to 2021/22. Key Performance Indicator – a measurable value that is used to evaluate change or compare results with planned Activity – a process or action that uses a range of inputs to targets. produce the desired outputs and, ultimately, outcomes. In essence, activities describe “what we do”. King IV – the King IV Report on Corporate Governance. Annual Performance Plan – an approved plan that Minister – the Minister of Tourism (Executive Authority). sets out what South African Tourism intends to do in the forthcoming financial year and during the Medium-Term Outcome – the medium-term results for specific Expenditure Framework to implement its strategic plan. beneficiaries that are the consequence of achieving specific outputs. Outcomes should relate clearly to an institution’s Annual Report – a report that provides information on strategic goals and objectives. Outcomes are “what we wish South African Tourism’s performance in the period under to achieve”. review, for the purposes of oversight. Performance – the degree to which a development Audit – an examination of records or financial accounts intervention operates according to specified criteria, to check their accuracy and conformity with norms standards or guidelines, or achieves results in accordance and criteria set out in advance. An internal audit is an with stated goals or plans. assessment of internal controls undertaken by a unit reporting to management, while an external audit is Performance Information – a generic term for non- conducted by an independent organisation. financial information about government services and activities. “Performance indicator” and “performance Average Length of Stay – the number of nights spent in measure” are sometimes used interchangeably. This report South Africa divided by the number of tourists. uses the term “performance indicator”. Bednights – the total number of nights spent in South Performance Standards – the minimum acceptable level Africa of performance that is expected. Board (used interchangeably with Accounting Project iGnite – South African Tourism’s internal Authority and Board) – a statutory body appointed by restructuring exercise aimed at transforming the the Minister in terms of the Tourism Act (2014) that has the organisation into one that is optimally positioned and fiduciary responsibility over South African Tourism. resourced to achieve its 5-in-5 strategy. Brexit – the United Kingdom’s planned withdrawal from Sho’t left – a South African colloquialism, originally derived the European Union. from the taxi industry, which in the travel sector refers to a short trip or getaway to explore your own country. Deputy Minister – the Deputy Minister of Tourism. South African National Convention Bureau – a business Geographic Spread – number of trips. unit of South African Tourism that supports bids for business events. Impact – positive and negative, primary and secondary, CELEBRATING 25 YEARS OF TOURISM ANNUAL REPORT 2018 | 2019 GENERAL INFORMATION 11 South African Tourism – the destination marketing achievement of South African Tourism’s strategic organisation of the South African Tourism Board. objectives. STAFF CATEGORIES Strategic Plan – a plan that sets out South African Tourism’s priorities, programmes and project plans for • Top Management/ Executives (F) – an employee a five-year period, as approved by the Board and the who controls the functional integration of the Minister of Tourism, and within the scope of available business. Determines the overall strategy and resources. objectives of the business. Directs the entity into the future. The nature of the work and focus is Target – an expected level of performance
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