GTA ANNUAL REPORT 13/14 1 GTA ANNUAL REPORT 13/14 2 GTA ANNUAL REPORT 13/14 3 Executive Summary 09 Tourism Gauteng Vision and Mission 31 01 Message from MEC for Economic 03 Vision, Mission, Values and Development 10 Strategic Goals 33 GTA Board Chairperson’s Foreword 13 GTA Core Functions 33 GTA Board Members 17 Senior Management 18 Reports on the Performance CEO’s Overview 19 against Approved Plans 35 04 Finance 37 The Tourism Gauteng 23 Corporate Services 37 GTA Mandate 25 Destination Management 42 02 Constitutional, National and Destination & Corporate Provincial Legislative Mandates 28 Communication 43 Cooperative Governance 29 Regional Tourism 52 Responsible Tourism 54 Research & Strategy 56 Tourism Infrastructure 60 Gauteng Convention Bureau 64

GTA ANNUAL REPORT 13/14 4 Destination Performance Report 70 Financials 94 07 Report of the Auditor-General 95 05 Administrative Information 97 Statement of Responsibility by the Members of the Board 98 Report of the Board 99 Report of the Audit Committee 104 Statement of Financial Position 105 GTA Performance Report 83 Statement of Financial Performance 106 Executive Summary of the GTA 06 Statement of Changes in Net Assets 107 Annual performance Report for the Cash Flow Statement 108 2013/2014 financial year 84 Notes to the Annual Financial Statement 109 Materiality Framework 145 Detailed Statement of Financial Performance 147 Acronyms in the report 154

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GTA ANNUAL REPORT 13/14 7 GTA ANNUAL REPORT 13/14 8 Executive Summary SECTION 01

GTA ANNUAL REPORT 13/14 9 Tourism in Gauteng employs in excess of 200 000 people,contributing approximately R30 billion per annum to the Provincial economy.

5.8 percent of the world’s exports and MEMBER OF THE 4.5 percent of the world’s investment. EXECUTIVE COUNCIL The World Travel & Tourism Council FOREWORD (WTTC) estimates that 3.8 million jobs (including 2.4 million indirect jobs) could be created by the tourism industry in he Travel & Tourism (T&T) industry Sub- Saharan Africa (SSA) over the next has remained resilient throughout the T 10 years. The work we have done in the uncertain global economic outlook thus period under review is strongly guided by influencing our performance year on year. the above perspective hence our strong The weaker rand makes South Africa a desire to build a competitive global more attractive tourism destination. Our destination. largest source market remains Africa followed by the traditional source markets The South African tourism industry of United Kingdom, United States of continues to record double-digit growth, America and Germany with strong growth growing three times faster than the global in China and India. Lebogang average. Tourism is recognised in the Maile New Growth Path as one of the 6 pillars We are particularly pleased that our for economic growth and development. MEC: Department of tourism agency is starting to prioritize the The sector’s 4% contribution to the total Economic Development African market and working together with provincial workforce and its estimated group sister agencies we can have a much 4% contribution to the Gross Domestic more impactful showing as the destination. Product by Region highlight its importance to the economy of Gauteng. Tourism Tourism is a powerful vehicle for economic in Gauteng employs in excess of 200 growth and job creation. Globally, the 000 people, contributing approximately tourism sector is responsible for 258 R30 billion per annum to the Provincial million jobs; 9.1% of the world’s GDP; economy.

GTA ANNUAL REPORT 13/14 10 the seat of government with world-class Tourism is the world’s third largest Our partnership and contract with all the infrastructure we are in pole position to economic sector. It is an industry that role players in the Meetings, Incentives, leverage over 250,000 business travelers matters and with the decline in mining, Conferencing and Events Industry has that visits South Africa per year. certain commentators have called tourism enabled us to remain a leading business Gauteng’s “new gold”. destination of choice in the continent. We continue to be the home of the In 2013, Gauteng ranked third on the SANSUI Summer Cup, the Standard Gauteng is the gateway into South Africa continent behind Cape Town and Nairobi. Bank Joy of Jazz, the Moretele Tribute recording 44% of all international visitor Concert, 94.7 cycle challenge, Discovery arrivals in 2012/13. Our challenge is to 702 Walk and once of the biggest soccer continually enhance the visitor experience derby in Africa, the Soweto Derby. The in order to remain a destination of choice. Let’s continue Gauteng Convention and Events Bureau in the period under review completed the Our strategies are focussed on the working together Provincial Events and Bidding Strategy to Domestic, African and international guide our onslaught in leveraging these markets. There is a common and use tourism events and increase the province’s high misperception that visitors travel through development and yield of business tourism and events Gauteng rather than into it. This is market. incorrect as Gauteng accounts for the growth to move largest share of total bed-nights spent in South Africa and All these events are helping us to sell our South Africa. destination as the home of champions, Gauteng forward. create a need to travel and experience and Our Tourism Agency in the period under provide our SMME’s and other business review managed to stage in association enterprises with the much needed with the Tourism Business Council of business opportunities. South Africa (TBCSA) the inaugural South African Travel & Tourism Summit bringing With a strong tertiary sector, Guided by the strides recorded in the together the public, private sector and cosmopolitan population, large period under review and the overwhelming civil society under one roof to discuss the concentration of meetings and events support and edge to collaborate from all implementation of the National Tourism venues, presence of world renowned the role players, we intend to create a Sector Strategy and the required Action academic research institutions and competitive advantage through offering Plans. strong research industry and being exceptional visitor experiences. We are

GTA ANNUAL REPORT 13/14 11 working to increase industry awareness its people and history. Gauteng offers this that the provision of excellent visitor and much more. experiences positively impacts on the bottom line of the business. We have indeed an exciting story to tell as detailed in this annual report, mesmerizing This will not only be directed at big experiences on offer to share and amazing organised and established products but people to complement you stay in our focus will also be on our SMME’s with the destination. creation of experiences being a major starting point. Our sincere thanks and appreciation to the GTA Board of Directors, the Systems have been implemented in the management team and the entire staff for year under review to assist businesses, their continued hard work and dedication regions and destinations gather especially in this trying period of the meaningful data to measure current merger process. levels of visitor satisfaction and establish benchmarks. This included the packaging Let us continue working together and use of information to create a tool kit to enable tourism development and growth to move businesses better understand visitor South Africa and Gauteng Forward. needs and expectations.

Tourism excellence is also the cornerstone of our Gauteng Experience Development Strategy which is a planning and marketing Lebogang Maile tool we have developed to facilitate focused destination development and MEC: Department of Economic marketing. Today’s global travelers, are Development no longer satisfied to be mere spectators: they want to ‘get off the bus’ and immerse themselves in the experience, soaking up all a destination has to offer, from its food and culture, through its art and music, to

GTA ANNUAL REPORT 13/14 12 We are pleased that, in the year under review, we have made tremendous progress towards the realization of the National Tourism Sector Strategy’s vision and goals.

CHAIRPERSON’S This was confirmed by the recent Tourism Summit, which was held in association FOREWORD with the Tourism Business Council of South Africa (TBCSA). he Gauteng Tourism Authority broadly Tcarries a dual mandate of being a As we take stock of our performance, Destination Marketing Organization and work, advances and challenges in the a destination management organization past year, let me restate what the National (DMO). This places a huge responsibility Tourism Sector Strategy demands of us. on our staff, management and the Board, This strategy, which has now become our as it requires a systematic method hymn sheet, requires us to achieve: of ensuring that each of these key • Arrivals – 15 million foreign arrivals by competencies receives equal attention 2020. in terms of focus, resources and action • Domestic tourists to grow from 14.6m plans. in 2009 to 18 million by 2020 and Khehla total domestic trips to grow from 30 Mthembu We are pleased that, in the year under million to 54 million, with holiday trips review, we have made tremendous increasing from 4 million to 9 million. Board: Chairperson progress towards the realization of the • GDP – Increase tourism’s contribution National Tourism Sector Strategy’s vision to the GDP from an estimated R189.4 and goals. We have also made great billion in 2009 to R499 billion by 2020. strides in implementing theGauteng • Contribution of domestic tourism to Tourism Sector Strategy. GDP to grow from 52% in 2009 to 60% by 2020.

GTA ANNUAL REPORT 13/14 13 • Job creation – the tourism sector is As we continue on the journey towards Destination Development Committee, committed to consolidating its efforts to prosperity and heightened tourism the Audit Committee and the Destination create jobs and aims to create 225 000 awareness in our country and Gauteng Marketing Committee. jobs by 2020 – 177 000 in the tourism province in particular, it is important sector and 48 000 through direct to always remind ourselves of the key These are all board sub-committees that government investment. national imperatives. Gauteng is required help in processing the work in between to play a leading role in the realization of the Board meetings and liaise with the The tourism sector’s potential to bring the above, noting its strong economic and relevant management structures to about economic growth and employment financial capabilities. ensure better coordination. creation is supported by tourism’s positioning as one of the six core We are proud to confirm that this pillars of growth in the country’s New institutional alignment has assisted us Growth Path framework, which also greatly in the execution of our fiduciary recognises tourism’s capacity to be a responsibilities. major contributor to South Africa’s global Unlike many competitiveness. other consumer We congratulate our staff and management team for the successful Tourism is also one of the key sectors purchases, tourism hosting of the inaugural Gauteng Lilizela identified in our own Gauteng Economic consumers buy Tourism Awards. During these Awards Growth and Development Strategy we honoured those who continue to (GEGDS), which is designed to ensure a destination shine and provide quality services and convergence between the economic visitor experience in our province. and social strategies of government and “experience”... promote a developmental state. As the Board, we take the issues of quality assurance very seriously and This strategy combines a series of welcome the industry and government economic, social and environmental efforts of rewarding quality and excellent factors to ensure cohesion between service in the sector. sustainable economic development, To ensure that our organization Tourism is a fiercely competitive poverty alleviation and social protection, achieves this vision, we have set-up business. thus ensuring synergy and promoting a our operations in the form of various developmental state through cooperative board sub-committees, namely, the We are not only competing with other governance.

GTA ANNUAL REPORT 13/14 14 businesses, cities, regions and provinces, World Tourism Organization (UNWTO) Department of Economic Development, but with all the other demands for held in Victoria Falls, Zambia/Zimbabwe, we have instituted measures to expedite consumers’ discretionary spend. The that GTA was officially accepted by the this process as efficiently, economically tourism environment is changing, and in global tourism body as one of its newest and painlessly as possible. order to grow and prosper, the tourism affiliate members. For us to be accepted industry must not only be more flexible as an affiliate member of this prestigious We have continued to engage with and responsive to challenges, but also body, is undoubtedly great news for the Organised Labour, Treasury and all needs to raise the bar in the delivery of Gauteng City Region. the other role players to ensure that service and standards. This is imperative this continues to be a stake-holder led if Gauteng wants to keep ahead of its We believe that we will benefit immensely process. On our overall organizational competitors. from connecting with this global alliance performance against our set target, we of non-governmental organizations in are pleased that the agency has once Unlike many other consumer purchases, world tourism through various network again recorded positive strides in the tourism consumers buy a destination opportunities and platforms through execution of its work. “experience” comprised of places to visit, which tourism knowledge, innovation and places to stay and things to do. If we are expertise The main highlights of the year under to defend our market share of visitors and are exchanged. review were: increase visitors’ length of stay and spend, • The successful hosting of Meetings there must be a collective effort to ensure The global trade association for official Africa and its related post tour that all tourism establishments maintain destination marketing organizations programmes; the highest standards. (DMOs) protects and advances the • the continued growth of our business success of destination marketing tourism sector and the support This will guarantee guest satisfaction, worldwide and supports our membership provided by our new Gauteng from the initial contact of booking, until of the Destination Marketing Association Convention and Events Bureau. the point that tourists arrive in our country. International (DMAI) and our efforts to • the successful hosting of the Nothing sells a country more than a big, build a Gauteng DMO of the future. inaugural provincial and national warm welcome, matched with service Lilizela Tourism Awards; excellence and quality experiences at We remain concerned that the Merger • the execution and management of every stage of a visit. Process between the GTA on the one the growth of both the Joy of Jazz hand and the Cradle of Humankind World and the SANSUI Summer Cup mega We received with excitement news from the Heritage Site and Dinokeng Project events; 20th General Assembly of United Nations on the other. In conjunction with the • the successful execution of the Tourism Summit project in

GTA ANNUAL REPORT 13/14 15 partnership with TBCSA; from it. We have recorded all these strides Our 2013/14 financial year performance, • the continued growth of our through your dedication and hard work. in terms of both organization E-marketing initiatives with special You remain our most valuable asset performance targets and destination focus on our increased social media and we are grateful for your support. performance targets, reaffirms our bold presence; Lastly, I would like to take this conviction that we have achieved good • the promotion of Gauteng travel opportunity on behalf of our Board, tourism growth indeed and that we have experiences on various media channels management and staff to once more a successful development story to tell. through our focused Global Media express our heartfelt condolences to Relations Program the Kolisile family for the tragic loss of our former MEC, principal and servant I would like to thank and salute my fellow of the people of Gauteng and South Board members for their continued Africa broadly. MEC Nkosiphendule dedication and support of the work of Kolisile passed on as we began the the Agency. Their total commitment year under review, and his sudden and Khehla Mthembu and expert inputs to the work and life of tragic departure placed a huge burden this organisation are unmatched. It is a on those charged with growing tourism Board Chairperson delight and a joy to be entrusted with the and effecting economic growth and Gauteng Tourism Authority responsibility of leading this collective development. group. Inspired by his work ethics and Special thanks go to the Chief Executive determination, we re-grouped, gathered Officer, Dawn Robertson, the management strength and put our shoulders to the collective and staff of the Agency for their wheel in a manner that would have invaluable support and dedication through made him proud. In honour of his vision this difficult time of the merger and the our resolve to serve our communities uncertainties which inevitably precipitate and create a better life for all has been strengthened and galvanized.

GTA ANNUAL REPORT 13/14 16 TOURISM Nomaxabiso Moipone GAUTENG Majokweni Molotsi AUTHORITY BOARD MEMBERS

Khehla Mthembu

Leonard Makgamathe David Moshapalo

GTA ANNUAL REPORT 13/14 17 TOURISM GAUTENG AUTHORITY SENIOR MANAGERS

Dawn Robertson Nonnie Kubeka Khumbu Sithole Chief Executive Officer Conventions Bureau Research & Strategy

Barba Gaoganediwe Mbuyiselo Kona Yaseen Asmal Sarah Moeketsi Mpho Moeti Destination & Corporate Responsible Tourism Chief Financial Officer Corporate Services Destination Management Communications

GTA ANNUAL REPORT 13/14 18 We are pleased that, in the year under review, we have made tremendous progress towards the realization of the National Tourism Sector Strategy’s vision and goals. Dawn Robertson

Chief Executive Gauteng is South Africa’s leading a third of the country’s tourism jobs. Officer: Gauteng globally competitive city region. We In 2012, 4.5% of the province’s GDP Tourism Authority have strong urban tourism, undisputed was derived from this industry and over historical and heritage sites, excellent R30bn was attributed to foreign direct infrastructure for sports and mega spend. About 25 million bed-nights events and the technological expertise were booked - over 60% of these by to develop as a globally competitive African land arrivals. With over 4.1m CEO’S FOREWORD destination. tourists, Gauteng enjoyed almost 45% of South Africa’s international tourist s the economic engine room of the The numbers speak for themselves. arrivals, an increase of 6% compared A region, Gauteng generates over one Over 10% of international and 30% to 2011. third of South Africa’s GDP. The province is of domestic travel to Gauteng is home to corporate South Africa and a host business-related. This is no surprise, It is abundantly clear that Gauteng of major multinational companies, and we considering the number of multi- and South Africa’s tourism industry will value the role that an industry like tourism national organisations that have continue to be a significant driver of plays in Gauteng’s success. located their headquarters in the our economic growth and employment province and enjoy its favourable in the future. We are encouraged Tourism has evolved to the extent that business environment. by the growth anticipated in the it has become our new ‘gold’, arguably tourism sector. Internationally, the surpassing the contribution that the mining As the economic centre of the region travel and tourism industry continues and automotive industries make to our and the gateway to the rest of Africa, to outperform the global economy. country. The sector promises even greater there is an exceptional opportunity for Tourism has grown its contribution to potential to contribute to higher levels the province to grow this segment’s GDP in 2012 to 3%. of economic growth, job creation and contribution to the provincial economy sustainable poverty reduction. even further. Gauteng now holds over

GTA ANNUAL REPORT 13/14 19 The performance of the sector should be job performance in this sector mirrors Africa can increase its global market share viewed within the context of the stable the national picture. Tourism sustains an by improving its competitiveness. and growing tourism sector in the African equivalent of 4.5% of total employment. region, where growth is expected to triple This represents some 30% of all tourism The Traveller theme was further extended by 2030. This entrenches tourism as employment in the country: more than 150 to ‘see South Africa through the eyes of the economic sector of the future, and 000 jobs. the traveller’ with a heavy emphasis on makes it worthy of significant investment ‘visitability’, a concept coined in Melbourne for further sustainable growth and Over the past year Gauteng Tourism has to make the region more attractive to development. realised that our visitors’ most basic travellers by focusing on their needs, need is to have ‘control’ over their travel which are often consistent with the needs experience. The next is their demand for of our own citizens. It was emphasised a consistent level of ‘service’ throughout throughout the Summit that a visitor- their visit. The third need is to experience friendly city region first has to be a ‘livable’ the ‘pleasure’ of travel. The choice of city for its own citizens before it can focus destination is hugely affected by the extent on visitability. ‘Liveability’ is the foundation to which potential tourists feel they will be for visitability, but visitability needs able to fulfil these needs. This is where we additional effort to create a welcoming and Tourism has grown its need to focus our energy to ensure growth. enabling environment. contribution to GDP We cannot do this alone. We need to forge There are a number of key attributes in 2012 to 3%. partnerships with our citizens and industry and values that are critically important partners. Gauteng Tourism sought to do to improve the visitability or visitor this through the inaugural 2013 Summit, experience in Gauteng. Of paramount held in collaboration with the TBCSA. importance is the issue of safety and The Summit focused on identifying perceptions of safety, which we need the need for active interventions and to address continuously. We have agreeing on action plans to achieve these implemented the Gauteng Tourism Visitor objectives. The Summit was developed Support Programme and are finalising following a series of stakeholder our partnership with the Tourism Business engagements and was intended as Council Tourism Safety Initiative, which will an ‘industry-led’programme. address these concerns. For the first time, one in 11 of all jobs in Another key attribute of visitability is visitor the world is either within, or related to, The theme - “The Value of the Traveller” - access and transport. the travel and tourism industry. We desire acknowledged the contribution of Tourism the same success for Gauteng’s job to the national economy and committed We are working with our Department of creation efforts. Interestingly, Gauteng’s the sector to explore ways in which South Transport to develop an integrated public

GTA ANNUAL REPORT 13/14 20 transport system that includes the needs plan their visit and, as a post-arrival the world, virtually. This is coupled with of the visitor. This is a vital foundation and service, promotes specific local events, “Homogeneity of time” - it can happen we need industry organisations to work attractions and other services. The 24 hours a day, 365 days a year. The with the government to make sure that key underlying objective is to achieve the consumer is always on. But not all of it markets can get here, and then get around optimum expenditure by visitors in the is of equal quality. The challenge for a Gauteng effortlessly. During the year under local economy. The implementation of our prospective visitor has moved from how review we have made great strides in the Visitor Information Services Strategy is to find information about a destination area of supportive tourism infrastructure in progressing well with the finalisation of the to how to recognise good and accurate the province. architectural aesthetic manual for visitor information among all that is now centres and the completion of the available. The highest levels of anxiety are O.R Tambo international arrivals associated with travel to and from the information desk in partnership with The establishment of visitor information destination. The provision of robust and the NDT. centres and our E-Marketing Strategy have reliable information is crucial to help a unique role to play in the future of tourist tourists maintain a feeling of control and information. The dissemination of good security over their travel arrangements. We impartial information provides the quality have prioritised the provision of integrated assurance to help the visitor make the visitor information. right decisions. The underlying As competition in tourism increases Social media and word of mouth have year on year, the quality of the visitor’s objective is to also become critical communication tools. experience becomes of increasing achieve the optimum Peer recommendations dominate as a importance. Developments in technology source of information. Social media can and the decline of the travel agent have expenditure by be harnessed as a tool for destination led to a climate where previous experience marketing. We have positioned our website and word of mouth recommendation can visitors in the www.Gauteng.net and our social media become key features of the decision to local economy. platforms as a source of readily available visit. Satisfaction with a holiday or short information on the destination and the break can depend on a variety of factors, product. but we need to take control of those things that can be influenced or managed to Our soon to be released “Official Visitors maximise the visitor’s satisfaction. Guide to Gauteng”, 10 new route maps The rapid growth of the Internet has made and Signature Collection Guide are also Tourist Information helps the potential abundant pre-travel information available. integral to a good visitor experience. visitor make the decision to visit a Any product anywhere in the world can particular destination, helps them to be promoted and sold anywhere else in

GTA ANNUAL REPORT 13/14 21 The last key attribute we need to foster I would like to take this opportunity to in terms of our quest for “visitability” thank MEC Xiyaya and our Board for is a “sense of community”. No matter their ongoing guidance and support, and where you are from, Gauteng needs to my entire team for their dedication and make people feel welcome. CN Traveller commitment over the last year to ensure magazine has ranked cities worldwide in we grow from strength to strength. terms of their friendliness. We have had a tough year, marked by the anxieties of change as we embarked They have placed Johannesburg at the on a merger. But we have emerged as TOP of the Unfriendliest list! The CNT a stronger organisation with greater article admits that Johannesburg is “one capabilities - evidenced this year by our of the most beautiful cities in the world” clean audit. but quotes one of their readers as saying “it is not safe to travel in Johannesburg independently”. Other readers described Jozi as “dangerous” and “a city of crime and contrasts”. Dawn Robertson Our GeePee Program is designed to get Chief Executive Officer: locals on the road and explore their own Gauteng Tourism Authority backyard. It calls for Gauteng citizens to feel a strong sense of loyalty and pride in the city region. We have lots of work to accomplish in this area, but we succeeded at this during the 2010 World Cup, and there is no reason for us not to achieve this again.

GTA ANNUAL REPORT 13/14 22 GTA ANNUAL REPORT 13/14 23 GTA ANNUAL REPORT 13/14 24 THE GAUTENG TOURISM SECTION 02

GTA ANNUAL REPORT 13/14 25 Inherent in the GTA’s mandate is the role of positioning not only destination Gauteng but also Brand Gauteng as a globally desirable and competitive destination for investment and other purposes...

Gauteng Tourism Authority Mandate

he Gauteng Tourism Authority (GTA) was by the establishment of the National Tourism Act (now Department of Economic Development) Tfounded by the Gauteng Tourism Act no.10 (No.72 of 1993). Since the advent of this Act, a – established the Gauteng Tourism Authority of 2001, which prescribes the function of the few more tourism developments occurred both in 1998 as a specialist agency responsible for GTA as follows: at national level and across the country; spurred tourism promotion. by the dawn of a new political democratic To provide for the promotion and sustainable dispensation in 1994 which began in earnest to The Authority was founded on the Gauteng development of tourism in Gauteng; to establish open South Africa to the world as the country Tourism Act, No. 18 of 1998 whose chief the GTA; to confer powers and functions and was being reintegrated back into the global purpose was: impose duties upon the Authority; to establish society. the Tourism Advisory Committee; to establish To provide for sustainable development and a tourism development fund; to provide for As tourism growth and development in the improvement of tourism in Gauteng; registration of tourist guides, tour operators, country gained momentum, the notion of to establish the Gauteng Tourism Authority; couriers, accredited training providers in the the sustainability of the industry took centre to confer powers and functions and impose tourism industry, hotels, conference centres, stage ultimately giving birth to the responsible duties upon the Authority; to establish a restaurants, designated tourism amenities tourism-oriented National White Paper on the tourism development fund; to establish specific and other accommodation establishments Development and Promotion of Tourism in mechanism in order to provide sustainable and possible future functions relating to these South Africa (1996) which proclaimed, inter alia, tourism revenue for tourism development categories; and to provide for matters incidental that tourism should be Government-led, private and promotion; to provide for the registration, thereto. sector-driven and community-based. grading and classification of hotels; to provide for the registration of restaurants, other About Gauteng Tourism Authority In its quest to leverage on national tourism accommodation establishments, conference growth and development and to drive economic centre and tourism amenities; to provide for The early to mid-1990s witnessed the stepping growth in the province, the Gauteng Provincial the licensing of tour operators, tour guides up of South Africa’s deliberate effort to formalise Government (GPG) – through the erstwhile and couriers; to provide for the certification tourism as an industry, underscored in the main Department of Finance and Economic Affairs and accreditation of training providers in the

GTA ANNUAL REPORT 13/14 26 tourism industry; to provide for the imposition The Gauteng Tourism Authority broadly carries (GGDA), the Gauteng Film Commission (GFC) and collection of levies in respect of hotels a dual mandate: on the one hand to position and the Cradle of Humankind World Heritage and other accommodation establishments; Gauteng as a globally desired destination Site (COH WHS) and Dinokeng Projects. restaurants and designated tourist amenities; through its marketing and promotion efforts and and to provide for matters incidental thereto. on the other, to manage Gauteng as a globally The Authority also works in close collaboration The 1998 Act was subsequently repealed by competitive destination through ensuring with regional and local government structures the Gauteng Tourism Act, No. 10 of 2001 which that it is a value – for – money destination to advance the notion of positioning Gauteng somewhat scaled down the mandate of the and ensuring that it develops products that as a Global City Region (GCR) whilst seeking Authority whilst it maintained the central role of responds to the tourist demands. to achieve a joined-up government approach the agency as follows: to harmonising tourism promotion and The progressively growing stature of tourism management in the province. It also maintains To provide for the promotion and sustainable nationally and provincially as an agent for strong ties with SA Tourism which leads the development of tourism in Gauteng; to establish economic growth and development has international marketing drive and generally the Gauteng Tourism Authority; to confer resulted in the role of the Gauteng Tourism aligns itself without deviation to the national powers and functions and impose duties upon Authority growing exponentially in a bid to tourism agenda, through among other means, the Authority; to establish the Tourism Advisory create sustainable job and entrepreneurial active participation in all national structures that Committee; to confer powers and functions and opportunities. This in turn has seen the effort to seek to advance the sector agenda. impose duties upon the Committee; to establish formalise tourism as an economic sector with its a tourism development fund; to provide for specific accounting of economic contribution. One of the GTA’s foremost challenges is to registration of tourist guides, tour operators, sustain the province’s status as a leading couriers, accredited training providers in the To this end, tourism is chief among the key provincial destination for international tourists tourism industry, hotels, conference centres; industries and economic sectors identified and a primary tourism revenue generator whilst restaurants, designated tourist amenities and to drive economic growth and the creation of cooperating with other provinces; particularly other accommodation establishments and decent work through the Gauteng Employment the ones with which it shares common borders; possible future functions relating to these Growth and Development Strategy (GEGDS) consistent with the GEGDS which recognises categories; and to provide for matters incidental and the National Growth Path (NGP), both of Gauteng’s role – as the country’s economic thereto. which have job creation as their centrepiece. powerhouse – to assist with economic viability of other provinces to reduce the degree of The 2007 amendment of the 2001 Act Inherent in the GTA’s mandate is the role of in-migration to Gauteng. was premised on the recognition of the positioning not only destination Gauteng but non-executive Board of Directors which hitherto also Brand Gauteng as a globally desirable was only temporary having been established and competitive destination for investment earlier to replace the Tourism Advisory and other purposes; a role that adds value to Committee and act as an Accounting Authority. the functions of its sister agencies such as the Gauteng Growth and Development Agency

GTA ANNUAL REPORT 13/14 27 CONSTITUTIONAL, NATIONAL AND PROVINCIAL LEGISLATIVE MADATES

LIST OF ACTS

Access to Information Act 2 of 2000 Basic Conditions of Employment Act No. 75 of 1997 and Regulations Employment Equity Act 55 of 1998 Gauteng Tourism Amendment Act No. 3 of 2006 Labour Regulations Act No.66 of 1995 National Records and Archives Services Act, 1996 National Tourism Act. No. 72 of 1993 Occupational Health and Safety Act 85 of 93 Promotion of Access to Information Act, 2000 Promotion of Administrative Justice Act, 2000 Public Finance Management Act No.1 of 1999 and regulations Public Service Act, 1994, as amended Public Service Regulations, 2001, as amended Skills Development Act 9 of 1999 Skills Development Levies Act 9 of 1999 South African Qualifications Authority Act 58 of 1995 The Income Tax Act 58 of 1962 Unemployment Insurance Act 30 of 1966 Value added Tax Act 89 of 1991

GTA ANNUAL REPORT 13/14 28 STRENGHTENING ACCOUNTABILITY TO STAKEHOLDERS 2.4.1 Cooperative Governance: National Departments

Department Scope of engagement National Department of Tourism (NDT) Alignment of plans and budget for marketing, skills development, service excellence in the province

2.4.2 Cooperative Governance: National Government Agencies Government Agency Scope of engagement South African Tourism (SAT) Alignment of plans and budget for marketing the province Support for international and domestic tourism destination marketing Research and planning cooperation Tourism Grading Council of South Africa (TGCSA) Promotion of tourism grading and support for accreditation of assessors The Tourism Enterprise Partnership (TEP) Alignment of skills and entrepreneurship development programmes

2.4.3 Cooperative Governance: Provincial Departments Agencies Government department / agency Scope of engagement Department of Economic Development (DED) Development and implementation of Service Level Agreement (SLA) Alignment of plans and budget within DED agencies Department of Local Government Alignment of plans and execution Gauteng Growth and Development Agency Sharing common marketing platforms Gauteng Economic Propeller (GEP) Alignment of plans on SMME development support

2.4.4 Cooperative Governance: National Departments Province Scope of engagement North West Alignment of plans and budget for tourism marketing, Alignment of plans and execution, Transfer of the Ga-Rankuwa Hotel School by Gauteng Province that will enhance skills capacitating.

GTA ANNUAL REPORT 13/14 29 GTA ANNUAL REPORT 13/14 30 GTA ANNUAL REPORT 13/14 31 TOURISM GAUTENG VISION AND MISSION SECTION 03

GTA ANNUAL REPORT 13/14 32 3.1 Vision

To position Gauteng as a globally competitive destination of choice.

Mission

To develop, promote, co-ordinate and facilitate responsible and sustainable tourism in the Gauteng global city region. To create a world-class destination that attracts business visitors and all other tourists to the province, benefits our people and contributes to job creation and economic growth.

Values

• Commitment to the principles of Batho Pele; • Integrity and Passion; • Professionalism and Excellence; • Strong focus on sustainable and responsible tourism; and • Commitment to progressive corporate governance.

Strategic Goals

• Create and promote a world class tourism destination; • Contribute towards tourism sector industry development; • Facilitate industry co-ordination and cooperative governance; • Foster a responsible and sustainable tourism industry; • Implement progressive corporate governance practices.

3.2 GTA Core Functions

The GTA’s core function is to develop, promote, co-ordinate and facilitate responsible and sustainable tourism in the Gauteng global city region; to create a world-class destination that attracts business visitors and all other tourists to the province; and benefits our people and contributes to job creation and economic growth.

GTA ANNUAL REPORT 13/14 33 33

GTA ANNUAL REPORT 13/14 34 GTA ANNUAL REPORT 13/14 35 REPORT ON PERFORMANCE AGAINST APPROVED PLANS SECTION 04

GTA ANNUAL REPORT 13/14 36 4.1 FINANCE Flows (also quarterly), Statement of Net Assets, information communications technology support across the value chain. The purpose of the programme is to provide an Notes to these statements and Age Analysis as effective financial management function, ensure well as the Budget Deviation Report and Bank 4.2.2 Achievement objectives the implementation of risk management and Reconciliations. provide a strategic support function. • Implementation of a more robust and 4.1.2 Payroll Administration resilient technology platform to ensure The expenditure for the Finance Business a system that is always available and Unit was R4, 595,525 from a total budget of Payroll Administration for the Authority is a easy to use; R5, 618,930 which was 18% under budget. competency and responsibility of the Finance • Capacitation and development of the The reason for the under spend was the staff Business Unit. Payroll and salary structuring workforce; vacancy budget allocated to Finance. The is treated as highly confidential with the Payroll • Recruitment and selection of talent savings were as a result of the merger which Accountant, responsible for processing management and qualified workforce is envisaged to be completed in the 2014/15 of information while being monitored and and to manage access control into the financial year. All targets set for the year were checked by the Finance and Payroll Manager facility; met. and the Chief Financial Officer. The total • Development and implementation of actual expenditure on salaries for the Authority compliant filing and archiving systems. 4.1.1 Financial Reporting amounted to R33, 613,501 from a total budgeted amount of R35, 259, 500 indicating 4.2.3 Strategic Goal and Objectives Internal financial controls, policies and an under spend of 5%. procedures are revised on an ongoing basis, The unit’s strategic goal is to apply a as and when the need is identified. This is fully 4.2 CORPORATE SERVICES progressive corporate governance practices, compliant with all applicable legislation and high strategic standards and operational implemented after the necessary approval. The purpose of this programme is to provide support for the GTA. effective leadership, strategic management Financial reporting is performed on a and support in accordance with the legislation, 4.2.4 Strategic Objectives monthly and quarterly basis with a full set of regulations and policies to ensure appropriate financial statements, ready for disbursement human resources, administration and The unit’s objective is to enhance organisational to management and DED, and quarterly to information communication technology support performance through the provision of effective Gauteng Provincial Treasury, within the first services to all other programmes. human resources management, information week of the following month. communications technology and administrative 4.2.1 Role of the unit in the overall support. The monthly and quarterly financial organizational mix management statements consist of the Statement of Financial Performance, Statement The role of the unit is to provide human of Financial Position and Statement of Cash resources, administration or facilities and

GTA ANNUAL REPORT 13/14 37 4.2.5 Key Milestone and activities - Human GTA’s Study Assistance scheme is ongoing 4.2.5.7 Key Milestone and activities Resources and seven (7) staff members were assisted Information Communications through this scheme during the year under Technology 4.2.5.1 Labour Relations review. Twenty two (22) employees also attended a five day Stakeholder Engagement The ICT unit did not experience any major GTA entered into arbitration with CCMA once Course and three (3) attended other relevant incidents during the year under review. The again, due to a deadlock on annual inflationary short courses. Employees’ wellness issues result of 98.8% total system uptime was salary increase. Both parties resolved the were also addressed. achieved by applying sound management matter out of CCMA processes and settled on and focused monitoring. This ensured a a 7.5% increase across the board. 4.2.5.5 Internship Programme stable server environment for constant system availability. Hardware was replaced at the 4.2.5.2 Performance Management The GTA Tertiary and School Internship desktop level in accordance with the lifecycle Programmes continued to develop the youth of assets. The ICT survey conducted during the All employees signed the Performance in promoting quality education and skills period indicated a content and well serviced contracts which were implemented. development as aligned to the strategic user base and no ICT Policy breaches were Performance reviews are always conducted by objectives. During the period under review nine experienced. the beginning of each financial year. (9) interns were supported. 4.2.5.8 Key Milestones and activities: 4.2.5.3 Policy Development and 4.2.5.6 Employment Equity Administration Implementation The GTA Employment Equity Plan is in place • Trained: The following Human Resources Policies were to support all recruitment undertaken. The plan - fire fighting for first responders reviewed and approved by the Board: is reviewed constantly and remains relevant - first aid level one course (Cl 185) • Cellphone Policy for five years. The employment equity report - basic evacuation wardens training • Subsistence and Travel policy was submitted to the Department of Labour as • Leased a second pool vehicle for the • Retirement Policy legislated and quarterly reports were submitted three entities day-to-day operations to • Medical Aid Policy to Statistics South Africa (Stats SA) as required. ease the burden of only one vehicle; • Long Services Policy • Acquired petrol cards to monitor petrol The table on the next page outlines the GTA usage and to avoid petty cash requests; 4.2.5.4 Skills Development and Training workforce profile for the year under review • Procured and appointed Travel Agency in terms of the occupational levels and/or services for a two year period; Employees update their individual personal categories. • Reviewed Business Continuity Plan. development plans annually and are taken into consideration when training programmes are developed and implemented. Application of

GTA ANNUAL REPORT 13/14 3838 Workforce Profile

The total number of employees (including employees with disabilities) in each of thefollowing occupational levels: Note: A=Africans, C=Coloureds, I=Indians and W=Whites

Male Female Foreign Total Occupational Levels Nationals

A C I W A C I W Male Female

Top management 0000010000 1

Senior management 4010200000 7 Professionally qualified and experienced 3001721200 16 specialists and mid-management Skilled technical and academically qualified 80001623000 30 workers, junior management, supervisors, foremen, and superintendents Semi-skilled and discretionary decision making 1000300000 4

Unskilled and defined decision making 3000100000 4

TOTAL PERMANENT 19 0112854200 61

Temporary employees 2000700000 9

GRAND TOTAL 21 0113554200 71

GTAGTA ANNUAL ANNUAL REPORT REPORT 13/14 13/14 39 39 The total number of employees with disabilities only in each of the following occupational levels: Note: A=Africans, C=Coloureds, I=Indians and W=Whites

Male Female Foreign Total Occupational Levels Nationals

A C I W A C I W Male Female

Top management 0000000000 0

Senior management 0000000000 0 Professionally qualified and experienced specialists 0000100000 1 and mid-management Skilled technical and academically qualified workers, 0000000000 0 junior management, supervisors, foremen, and superintendents Semi-skilled and discretionary decision making 0000000000 0

Unskilled and defined decision making 0000000000 0

TOTAL PERMANENT 0000100000 1

Temporary employees 0000000000 0

GRAND TOTAL 0000100000 1

4.2.6 Stakeholder Engagements 4.2.6.1 Key stakeholders 4.2.6.2 Best practices Corpo rate Services • Department of Economic Industry standards and Best Practices are With the support of business units, all Development (DED); researched and implemented as required performance contracts were signed and • Users; as well as the compliance of Occupational submitted to Human Resources as well as • Senior Management. Health and Safety (OHS) and the all the training plans of units. Microsoft Employment Equity. Licenses were supplied by the DED and this enabled the upgrading of the server environment.

GTAGTA ANNUAL ANNUAL REPORT REPORT 13/14 13/14 40 40 4.2.6.3 Way forward 4.2.8 Challenges and Opportunities Administration Decommissioning and re-deploying of old server platform as a training platform. • Inadequate capacity on record manage ment due to vacant position since 2009 4.2.6.4 Challenges and Opportunities - due to the merger of the three entities. Human Resources. The position will be filled after the merger completion. The merger of GTA, the COHWHS and Dinokeng remains a huge challenge. • The documentation management system to archive old agency records 4.2.7 Challenges and Opportunities was implemented. Old records were Information Communications removed from office storage to an Technology (ICT) open space.

The Information and Communications • Budget allocation to support all the three Technology unit performed well achieving all entities posed a challenge. measured targets. All information systems were supported and maintained on a total budget of • Appointment of Travel Agency service R 1 400 000. The greater portion of funding was providers to ease travelling procurement geared towards the day to day maintenance in processes was successful. support of the 120 users. • Parking spaces continued to pose a The system uptime target was achieved with huge challenge at the 124 Main Street all Backend systems being available 99% offices. Procurement processes are of the time. The sub-unit was capacitated underway to source additional parking with two qualified ICT contract workers due space for staff. to the increased user requirements and their satisfactory level of performance. Support was • Additional driver/ messenger will be provided in all training needs. needed to meet the demands of the three entities.

GTA ANNUAL REPORT 13/14 41 4.3 DESTINATION MANAGEMENT Tourist Guides; • Facilitation of learnerships; • Participates in service excellence • Assistance with grading of The purpose of the programme is to ensure that and sustainable tourism initiatives. emerging establishments ; visitors to the Province receive the highest level • Facilitation of market access for of service excellence at every stage of their jour- 4.3.2 Unit Strategic Goal and enterprises; ney, and that all new entrants have the neces- Objectives • Management and implementation sary skills to deliver quality experiences. This is of agreed partnership, e.g. achieved through the facilitation of skills devel- The strategic goal of the unit is: CATHSSETA. opment initiatives and training programmes for tourism enterprises and stakeholders; registra- • Registration and promoting 4.3.5 Integration with the overall tion of tourist guides as per the Tourism second qualified Tourist Guides; work plan amendment act regulations and provision of • Offering assistance to tourism tourism enterprise support (including SMMEs) enterprises; The objectives of the unit cut across different through financial and non-financial support. • Offering demand driven skills units within the organization, and ensure that development programmes; the supply side for the sector is attended to in These initiatives and support programmes are • Facilitating market access to ensuring a quality experience for the tourist and geared towards ensuring service excellence tourism enterprises; visitor to the Province. and quality products and service in the Prov- • Assisting with grading of emerging ince. In a nutshell, the unit is entrusted with accommodation establishments; 4.3.6 Key Milestones and Activities ensuring that Gauteng remains a world class • Entering into productive destination, renowned for its responsible and partnerships; A number of projects were successfully sustainable tourism experiences. • Facilitating learnership placements. implemented during the year under review:

4.3.1 Role of the unit or department 4.3.3 Key strategic objectives • Just over 800 tourism stakeholders, in the overall organization mix youth, SMMEs, tourismemployees, • Registration of tourist guides; new entrants received training around The unit • Skills development and training; tourism related initiatives; • Enterprise and SMME support; • Over 200 tourism enterprises were • Tourism enterprise support • Grading of emerging accommodation supported with grading, market programmes; establishments. access, training and business • Demand driven skills development linkages; and training programmes; 4.3.4 Key functional work areas • Star grading support for emerging • Assists with the grading of accommodation establishments is emerging accommodation • Registration and promotion of still in effect; establishments; qualified tourist guides; • The unit registered and promoted • Registers and promotes qualified • Skills development and training; Tourist Guides;

GTA ANNUAL REPORT 13/14 42 • Entered into productive implemented; and services to key role players and partners partnerships which impacted • The working relationship with and a valuable resource for both internal and on service delivery around Tourism Enterprise Partnership external clients. In the period under review, we enterprise support, service (TEP) was formalized through an reorganized our work to cover the following excellence, skills development and MOU signed by both parties; three themes which underpinned our 2013/14 training. • The partnership with CATHSSETA also marketing focus namely: • Due to popular demand, the “How resulted in a signed MOU between the to booklets” aimed at assisting with two parties. The MOU revolved around • Leadership through partnership information provision for start ups, skills development, training, learnerships, coordination and advocacy were reproduced and distributed. etc. This partnership now leads to the final • New Approach to Marketing isation of a demand driven sector skills Destination Gauteng The booklets focused on: plan for the Province. • Sharing and relating of visitors experiences through various multi- • Starting a Tourism business, Guest 4.3.8 Challenges and Opportunities media channels house/B&B, Travel agency, Arts and Crafts business as well as a Restaurant/ Key challenges for the year under review were 4.4.1 Planned targets and achievements eating house; that of resources not aligned to the full im- • Market access for emerging tourism plementation of the strategic objectives. The In the period under review we have set our- enterprises through platforms such as challenge presented an opportunity to leverage selves increased organizational targets focus- the Annual Tourism Indaba. Financial on the strategic partnerships and maximize ing on telling Gauteng’s tourism story through and non-financial support was offered to the use of resources for service delivery. The domestic and international editorial coverage by these enterprises; second challenge centred around the effective relevant targeted media outlets, commentators • Hosted a Tourist Guides workshop for integrated implementation of projects the merg- and influencers. registered tourist guides; ing entities. The integration of effort and project • Entered into successful partnerships with implementation is underway, and remains work We recognize the fact that media promotions different tourism stakeholders. in progress. are an excellent way to increase awareness of, and interest in, Gauteng and help to acquire 4.3.7 Stakeholder engagements 4.4 DESTINATION AND CORPORATE significant print, web, social media and tele- COMMUNICATION vision exposure that we would not be able to Engagements with various stakeholders result- purchase though our diminishing advertising ed in effective implementation of some projects The unit’s main purpose is to provide integrated budgets. and signing of Memorandum of Understanding communications services that aid the agen- (MOUs). cy’s drive to position the province as a leading We set ourselves a clear goal of crafting and • The MOU with Tourism Grading leisure and business tourism destination in Af- implementing our Global Media Relations Strat- Council of South Africa (TGCSA) rica and beyond. We serves as a reliable point egy which integrates media relations activities was revised, signed and of contact and disseminator of GTA information within consumer, MICE and trade platforms and

GTA ANNUAL REPORT 13/14 43 will include an ever greater focus influencer for We also focused on our direct consumer market our bi-monthly internal newsletter and quarterly both online and social media outlets. in our messaging with numerous PR initiatives achievements celebration platforms. In that regard, we have seen an enhanced at various leisure shows, provided community communications with media that resulted in media with space to share and broadcast from 4.4.2 Unit Strategic Goal and increased unpaid media coverage from online, these shows and continued our heightened on- Objectives traditional print and electronic media. line sales presence. Our strategic goal is to generate editorial cov- Our Global Media Relations Activities focused We set out to achieve heightened awareness erage that inspires travel to Gauteng in high-cir- on the following: and improvements in the consumption and us- culation South African and International media age of domestic tourism products in the prov- outlets. • general Media Outreach ince through the use of evidence based market- and Engagement; ing and PR strategies. Similarly, we used local 4.4.3 Strategic objectives • visiting journalists program; events to leverage the media and PR opportu- • regional media events; nities associated with these events and expand • Sustain and grow the province’s • hosting of media familiarization the destination marketing and communications profile as a vibrant, urban destination expedition; capabilities. through placement of stories in media • media Monitoring Services; that influence travelers; • media Resource and Support. This was achieved through the use of digital technology to engage, attract and retain unique • Build relationships with targeted Consistent with our approach, we continued do- visitors through the implementation of various media to generate press visits ing work that raises the profile of tourism in the digital campaigns and search engine optimiza- to the province so they can province amongst local residents and further tion work. experience the destination first- implements the strategy of inculcating the need hand; for respect towards visitors to Gauteng. Equally important in this area of work and very much a focus area in the period under review • In addition to mainstream Our public relations (PR) messaging focused has been our corporate communications initia- consumer publications, on encouraging locals to be tourists in their own tives aimed at improving internal communica- target special interest backyard and encouraging international and re- tions in the organization, minimizing the spread outlets such as, in-flight gional visitors to step out and stay another day of miscommunication and empower our staff magazines, gay and lesbian in Gauteng. It also aimed at enticing our trade members to be chief ambassadors and com- publications, meetings publications, partners to take advantage of our ever increas- municators. trade publications and culinary ing arsenal of leisure and business tourism magazines; attractions and help in packaging our offerings We produced and implemented the Merger • Grow the province’s presence accordingly. Change Communications Strategy and under- and profile within popular culture took numerous initiatives to build a focused and online, through targeted influencers and empowered staff with the production of who command a large online and social

GTA ANNUAL REPORT 13/14 44 media following; 4.4.4.2 Internal & Corporate and the number of operational targets were in- • Continue to improve our dialogue Communications creased from 3 to 20. with key local stakeholders, including the local media, The sub-unit is responsible for the development This meant a concerted drive and determination and identifying and providing and management of all internal communication was needed to enhance all channels and plat- consistent messages to all these tools, programs and the implementation of the forms, considering the increased importance of stakeholders; internal communications strategies and plans. the digital environment in the world of influenc- The key tools in unit producing and managing ing travel destination decisions. • Proactively pitch Gauteng story the organizational Annual Report, internal news- ideas to South African travel letters, suggestion boxes, notice boards and Key focus areas included the www.gauteng.net media on annual in- the implementation of our Merger Communica- website, the 11 social media profiles, the new market media missions; tion Plan. Gauteng Travel Guide mobile app, campaigns and initiatives to drive online activity growth as • Minimizing the spread of 4.4.4.3 E-Marketing advised by the UNWTO Recession Recovery miscommunication and encourage Roadmap, content, event coverage, functional- internal communications. The E-marketing unit is tasked with promoting ity enhancements, tracking of and reporting on Gauteng as a destination on the organisation’s multiple indicators and conducting several au- 4.4.4 Key functional work areas of focus multiple owned digital channels and platforms, dits in anticipation of delivering an e-marketing as well as on paid third party sites and chan- strategy. In executing the above work and strategic nels.Its aims are met through the generation, objectives, we divided our work into the maintenance and placement of multiple types Performance highlights included exceeding our following functional work areas for of content on the various sites and social media number of unique users to the website target for focused implementation and execution: channels, engaging with users and followers, the year by nearly 200,000. In 2012/3 the target running digital campaigns, maintenance and was set for 180,000 but we achieved 344,066 4.4.4.1 Media Relations enhancement of the digital channels, users. In 2013/4 the target was set at 400,000 as well as supporting all units within and we achieved 597,602. The unit’s work and operations became the the organisation through online promotion of main focus of our 2013/14 activities. We re-de- their projects. With more than half of the traveller’s population ployed two of our staff to work in this area main- relying on social media for inspiration when ly responsible for media campaigns and famil- 4.4.5 Key Milestones and Activities in planning a holiday and 92% of consumers iarization, media engagements and relations the period under review trusting recommendations from friends and and media strategies and public relations. The family above any form of advertising, Gauteng’s sub unit is also responsible for media buying In building the destination marketing capabili- social media presence has grown from strength and advertising which forms a key part of our ties using technology and social media, a steep to strength and ensures that Gauteng remains media relations strategy. change was sought, and in setting the targets, on trend, influencing prospects where they look all 2013/4 targets were increased by 100-200% for inspiration.

GTA ANNUAL REPORT 13/14 45 Profiles on two new trending channels were projected to overtake fixed Internet access by Press’s editors’ picks (chosen from an average launched including Pinterest 2014, the Gauteng mobile app, which reached of 1,386,667 of new blog posts per day hosted (http://www.pinterest.com/ilovegauteng/) and SA’s most popular free travel app spot on iStore on WordPress, the most popular online publish- Instagram (http://instagram.com/visitgauteng) in 2013, needs to continue improving to build ing platform, currently powering more than 20% Leading online reputation management soft- on its strength and the platform’s popularity. of the web), quite an achievement for the blog- ware was implemented to assist in monitoring ger, the campaign, Soweto and Lebo’s Cycling and managing of Gauteng’s 11 social media During the fiscal, the mobile app has seen Tours. profiles. increased functionality to improve user experi- ence, improved marketing capabilities includ- We overshot our campaign target of our first This fiscal saw Gauteng have its first presence ing social sharing and the addition of multiple bought media campaign, which was run on on the world’s largest travel and lifestyle so- Points of Interest, as part of the highly success- Facebook and Google by 165%. We led the cially engaged community, WAYN.com (Where ful #GeePeeShotLeft campaign, which in turn way globally in adopting brand-new functional- Are You Now?), which has more than 20 million also drove mobile app downloads as part of an ity available on Facebook that allowed users to members worldwide. industry-leading Facebook campaign. download an app straight from a Facebook Ad. This method of advertising gave us very high Travellers use the site to discover new destina- As a result, the mobile app downloads of the CTR’s from 3.0-3.9%. It also brought our cost/ tions and activities, meet like-minded people Gauteng Travel Guide grew from 5,341 to download down by more than 200%, compared and share relevant experiences with others. 16,873, exceeding the target of 10,000. In terms to a previous mobile app campaign we ran. They are professionals who travel between 2-5 of campaigns, the #GeePeeShotLeft was the times per year. resounding highlight of 2013/4. The predomi- Our second bought media campaign was run nantly digital campaign was seeded on social on Facebook and Twitter and resulted in a A 12-month microsite with several creative media through the use of influential bloggers 3.68% CTR. Hundreds of events were promoted campaign elements was launched, which gen- and Igers (Instagrammers), who went on Insta- on our various digital channels throughout the erated 7,803,955 impressions, with total clicks meets and roadshows to capture and share year, with signature events supported not only of 38,167. Some creative elements reached a their experiences. with content, but also with digital coverage and staggering 2.86% CTR (click-through rate), well production of videos, such as Sansui Summer above average. Another worthwhile outcome of Over 990 images were taken and tagged as Cup, The Summit (for which the official event the campaign has been the interest seen from part of the campaign; over 380 mentions were website www.sasummit.net was developed and markets not on Gauteng’s main marketing made on Twitter; 495 Facebook likes were marketing was done), Joy of Jazz, Joburg City radar. inspired and 9675 mobile app downloads Festival, Lilizela Awards, Mandela Tribute, were made. INDABA, SAT CEO Roadshow and Meetings This will be explored further in 2014/5. No or- Africa. ganisation can ignore the rapid rise of mobile One of the bloggers, Heather Mason, wrote a marketing, and with mobile penetration set to blog post “Cycling through Soweto on Man- Another feather in our virtual cap was the trend- reach 96% globally by end 2013 and mobile dela’s Weekend” that was featured on Word- ing of the #sasummit13 hashtag. This was an

GTA ANNUAL REPORT 13/14 46 inaugural event for the industry, and on Day 1, creased, to meet the needs of the organisation on general editorial coverage for our events, we were solidly in the #1 spot on Twitter, South and the unit. activations and campaigns, but we provided Africa. With around 400 delegates it overtook communications support to projects like the the Oprah Conference with its 6,000 delegates; To keep our fingers on the pulse of digital, Lilizela Tourism Awards, the Regional Tourism on Day 2 it trended in #2 spot, behind Eminem two conferences were attended including the Awards, Red Bus launch and the Tourism Sum- releasing his brand new music video, Rap God. E-Tourism Africa Summit and the IMC Confer- mit project. ence. Apart from maintaining our year-on-year Audits that were done included a social media performance growth on all our digital channels We continue to play a catalytic role in main- audit for Cradle of Humankind and Dinokeng; and platforms, major opportunities and areas streaming top of mind communication, in rela- Search Visibility; SEO site audit; Website As- of focus for 2014/5 included the e-marketing tion to all our projects from infrastructure to des- sessment and a Consolidated Audit. These, strategy, enhanced presence and influence on tination management and merger challenges. including monthly monitoring of the digital global channels . channels, workshops and multiple stakeholder In the first quarter of the financial year, our main engagement sessions, assisted us in laying the TripAdvisor and WAYN.com enhanced social focus was our participation at public and trade ground work for the e-marketing strategy, which media community building, including launch of exhibitions such as the annual Gauteng Rand will set the course for 2014/5 going forward. Google+ profile, restructuring of the website, Easter Show, ITB Berlin and Tourism Indaba in including implementation of audit recommenda- Durban. We concentrated on sharpening our Challenges faced in the unit included, lack of tions and business tourism site enhancement, operational strategies by commissioning work human resources and development training launching of the digital Themed Tourist Maps, for the development of the integrated commu- for a unit that supports all units within Gaut- putting out a bid and contracting for the digital nications operational strategic framework and eng Tourism, the Cradle of Humankind and agency 2015/7 that will be able to take Gauteng content plan. Dinokeng, World Heritage Site and Dinokeng into the digital future. Projects. We started producing quarterly media monitor- Strategic Communications support is an inte- ing reports and fine tuned our media database This set against a highly competitive global en- gral part of any project or program we envisage to reflect our diverse media outlets with specific vironment where technology and touch points as an organization. Not only do we focus on niche focus. are ever-changing, where Gauteng is not nec- guiding the messaging of the event but we pro- essarily a recognized brand and where the new vide tactical support in relation to the entire nar- We strengthened working relationships with the consumer is demanding, using diverse sources rative. We help in shaping the program content, Department of Economic Development Com- of information and influence, and where tactical focus and how this will enhance our reputation munications and Media Relation Unit, South opportunities do not wait for procurement. It is and advance our stakeholder engagement initi- African Tourism Global Communications Unit recommended that relevant training be provid- atives. and established contacts with our respective ed to the unit’s resources, that tools and equip- Metro’s Communications machinery and forged ment be upgraded, and that resources are in- In the period under review, not only did we work strategic relations with a number of new media

GTA ANNUAL REPORT 13/14 47 houses, including Gauteng’s new commercial hannesburg Inner City Tourism Association on Summit projects, with high media attendance. talk Radio Station, Power FM. the occasion of the successful launch of their Our Spring-to-Summer experience, #GeePee- inaugural inner city festival. We hosted over 23 ShotLeft campaign, gained a lot of media One of the defining features of our Global Media media from across the country in Jo’burg for coverage and interest. Relations Strategy in the period under review the launch of this unique festival which supports was a dedicated focus on media advocates our neighborhood tourism promotion.Urban We received editorial coverage on Morning Live, and influencers, to aid our work in influencing Vibe, Inner City regeneration and Neighborhood SABC News new 24hours channel, Jozi FM, travel patterns in favour of our destination. We Tourism, in the form of space, people and place Soweto TV, SAFM and KAYA FM. Our Tourism also hosted local and international media, using promotion, formed a strong part of our domes- Summit project received editorial coverage and our major events as a draw card. tic tourism showcase narrative. review on eNCA, Mail & Guardian Online, SABC Radio News, CNBC Africa, ANN7, KAYA FM, We hosted a domestic media familiarisation trip We have in the year under review hosted the BizzComm media, Now Media and a host of that coincided with the evening of the Gauteng SAT CEO, Chief Marketing Officer and the do- online tourism related media platforms. Lilizela Tourism Awards and further hosted col- mestic tourism team, together with a selected laboration with South African Tourism Global number of media advocates and bloggers on During the period under review, the SANSUI Communication Unit regional media during the the Joburg GeePeeShotLeft experience. Without Summer Cup has proudly hosted once again by Standard Bank Joy of Jazz Festival. The link- a doubt, we managed to showcase the best of Gauteng, amplifying our leisure offerings in the ages and timing was perfect as these media the inner city and helped SAT to understand destination. We started early in the promotion had access to both the attractions and the jazz Jo’burg better and be able to package of this premiere fashion and horse racing event, event at the same time. and sell our destination effectively, through with a media and promotion road show called their channels. the Road to SANSUI Summer Cup. On the trade promotion front, we hosted over 60 German media during the Thomas Cook cata- Our Media Relations machinery continues This program took us to Sedibeng Region with logue launch, in Johannesburg. This was by far, to ensure that we have a sound and positive a fashion and media showcase onboard the the biggest international media group we have media relations that yielded positive media Vaal boat. We went to Tshwane’s Freedom Park ever hosted in Gauteng. coverage. We continued to generate new and Soweto’s Vilakazi Street, all showcasing content for our media and own media and promoting the event. This proved to be a hit Germany remains our key travel source market channels, convene media conferences to with our fashion, lifestyle and sporting media, as and the significance of Thomas Cook launch in announce our major projects or showcase it provided fresh content and unique angels. Joburg, the first ever done outside Europe, can- major initiatives. not be over emphasized. This followed shortly Our visiting journalists program was in full swing after our successful launch of Sedibe donation We hosted a successful Cradle of Humankind in the year under review. We hosted journalists program, in Berlin and consistent participation Presidential and Nobel Laureates’ footprint in the travel and tourism space, business, eco- at ITB Berlin. project, which featured Archbishop Desmond nomic development and culture and heritag Tutu. We lunched successfully via the media, sector across the province. We hosted them We take pride in our efforts of assisting the Jo- our Lilizela Tourism Awards and the Tourism at our only World Heritage Site, the Cradle of

GTA ANNUAL REPORT 13/14 4848 Humankind, explored our big 5 game reserve, These included where Gauteng Eats, We managed to secure the internationally ac- Dinokeng, toured Soweto, Inner city Jo’burg, Gauteng Plays, Gauteng Learns and be In- claimed Travel Channel coverage of Gauteng, the Vaal in Sedibeng Region and showcased spired to where GeePee sleep, unwind and be during their recording of the legendary World’s our Signature Collection products like Lilliesleaf entertained. The first edition of this fresh tabloid Greatest Motorcycle Rides episodes. This was Farm, Constitutional Hill and Apartheid style editorial is due in the first quarter of the a major highlight and huge endorsement of our Museum. 2014/15 financial year. destination communications work, by one of the best production houses. We explored our hidden gems, showcased our We also provided a solid media relations sup- dining and cuisine offerings and adventure port to the work of our Convention and Events We supported our Domestic and Leisure Tour- experience, through bicycle and quad biking Bureau team. We assisted in drafting media ism promotion unit with media relations work, experiences, in Soweto. We have in the past pitches and media briefing content that seeks during the staging of the main domestic tour- year managed to re-align our media monitoring to promote this specific area of our work. This ism and leisure shows in Gauteng. We partic- services capacity and generated media included the overall communication of busi- ipated in the shaping of our domestic tourism coverage and analysis reports of all activities. ness and events tourism messaging, staging campaign, supported products showcasing at of press conferences and scheduling of media Outdoor Adventure, Soweto Wine Festival and We have revamped our portal, to provide a cut- interviews related to key activations such as Rand Easter Show. ting edge media support service with fresh fact Meetings Africa, Airports Cities Conference, sheets, images and media briefing information. Jo’burg International Motor Show and The table below is a summary of how we exe- We also started our own production of a lifestyle DISCORP Africa. cuted our respective key milestones and deliv- publication, aimed at showcasing our destina- erables in relation to the targets set and what tion’s cool spots. we managed to achieve.

KEY WORK AREA ACTIVITIES TARGET ACTUAL Media Hosting Media Fams Visiting Journalists No. of Media hosted (100) 238 Media hosted Programme Media Content No. of new articles produced and shared with media 100 138 new articles produced or on our own media

Media Engagement No. of media interviews conducted sharing or 8 42 media interviews conducted promoting travel experience in the destination

GTA ANNUAL REPORT 13/14 49 KEY WORK AREA ACTIVITIES TARGET ACTUAL

Media Relations No. of press conference/media launches conducted 8 8 Media Hosting No. of media FAMS 9 media FAMS Hosted 11 media FAMS organized

Media Content Developed integrated media database 1 media database divided 1 media database divided into 3 into 3 media segments media segments

4.4.6 Stakeholder Engagements

We have always emphasized that tourism is industry led and government supported. Consistent with this philosophy, we have in the period under review engaged various stakeholders in execution of our plans. The following table represents some of the activities and engagements with our key stakeholders:

In executing these programmes, we managed to secure a long term relationship and understanding of each other’s programs. This has benefit- ed Tourism Gauteng marketing efforts as we managed to tap into other role-players resources for the advancement of Gauteng’s standing as a business, leisure, trade and investment destination. We managed to utilize platforms like the Joy of Jazz and SANSUI Summer Cup to leverage media coverage for Tourism Gauteng, with the road to SANSUI Summer Cup becoming a major media hit. We opened avenues in the sports and events space, and through these collaborations and the value and contribution of Tourism Gauteng, these events were appreciated. Moving forward, it is important to prioritize this area of work and allocate the necessary resources, including budget and personnel.

GTA ANNUAL REPORT 13/14 5050 Name of Stakeholder Report on interaction/ collaboration Media stakeholders SABC Television and Radio SABC Radio and Television reaches all corners of the country like nobody else. We continued to have a strong relation with radio news covering all our major announcements, activations and events. They form part of our me- dia FAMS and conduct interviews with a variety of our product owners. SABC launched a new 24-hours television news channel and in it, came a new travel show, called, Kaleidoscope, in which African travel is the main theme. We continued to feature on this show and our various content of travel experience in Gauteng was disseminated.

DStv (Multichoice) We forged a very good partnership in which the television channel gets invited to our various activations and they provide editorial coverage of our main activities, encouraging the rest of the continent to visit Gauteng. The station Good Morning Africa has 700million viewers across Africa, with strong presence in Nigeria, Ghana, Zambia, Cameroon, Burkina Faso etc. With this partnership, we covered their travelling and accommodation costs and in return, we get editorial coverage. Times Media Group Collaboration on distributing our Lifestyle Guide Magazine, coverage of our Tourism Summit and general promo- tion of the travelling experience in GeePee, when there is space for editorial. Jozi FM They continued to work as an anchor of our community media initiatives. They provided a link to nine (9) other community radio stations across Gauteng and do a combined broadcast, thus exposing our content and pro- grams to increased numbers. KAYA FM We continued with our tactical and strategic partnership with KAYA FM. We are part of the KAYA Mandela day relay challenge and our Tourism Summit partnership with KAYA FM worked very well in terms of conducting inter- views and allowing key speakers to also share their experience on air. Events Owners and Partners Joy of Jazz Coordinated media coverage and media hospitality and hosting with SAT. SANSUI Summer Cup Participated in weekly planning meetings and ensuring proper leverage of the provincial government investment, coordination of media partnerships and coverage, showcasing tourism spin offs. Government Bodies and Departments Office of the Premier Worked together on brand Gauteng promotion platforms, like the AFCON launch, events, Metro FM Awards, Gee- Communications Pee and Brand Gauteng promotion, AFCON Gauteng promotions and securing space on government communi- cation mediums like, Gauteng News. SAT Media & Alignment of activities and programs Communications Co-hosting of media FAMS Content sharing and collaboration with Shot’ Left campaign.

GTA ANNUAL REPORT 13/14 51 4.4.7 Challenges and Opportunities mental relations protocols and institutional framework. partnerships to ensure Industry cohesion and The biggest challenge faced by the unit in the leveraging resource mobilisation. period under review, apart from the severe Community media remained one of the most budget shortage and limited staff personnel, effective ways of communicating with the 4.5.1 Strategic Role has been the move to have the team with little public. We will strive in the new financial year or no training in media relations, executing this to support this medium and empower them with To build strong relations with municipalities, plan frequently beyond set targets. information to disseminate to our communities. support and enhance their capacity to The need for our communities to understand promote and develop tourism in the Regions. We reorganized our operations and the and appreciate the value of tourism cannot be The unit is also responsible for promoting, adopted channel marketing effort by the bigger over-emphasized and will continue to form the coordinating and integrating plans through marketing team. This allowed us to be more main narrative of our communication efforts. Municipal Integrated Development Plans (IDP) focused and delivered on our targets. We owed and industry partnerships for mutual benefit, all the advances made in our work in the Corporate Communications, with special focus community beneficiation and tourism growth in period under review, to our ability to mobilize on staff programs and merger communica- the Province. other forms of partnerships, support from our tions, will be another key priority work area in product owners, hotel groups and tour the new financial year. We hope to mobilize the 4.5.2 Key Strategic Objectives operators, who supported our media necessary resources to execute the plan and relations program, amidst limited budgets. remain on target with the vision to turn our staff • Promotion of return visits by members into our true brand ambassadors and tourists through service excellence; We hope to continue nourishing the relationship complete the merger process with fewer • Promotion of joint government with SAT Global Communications, Gauteng casualties. DED Communications, Media Unit and other approach through the IDPs and Private Sector partnerships on leading DMO’s and chain products, like Tsogo 4.5 REGIONAL TOURISM Sun. There are huge opportunities are galore in Tourism Development and Marketing; the online media space with bloggers, The purpose of the programme is to act as a • Promotion of community instagrammers and other social media catalyst in supporting and facilitating Regional beneficiation, inclusiveness and platforms proving to be the best way of Tourism Development and Marketing within local government Support on tourism selling our destination offerings. the context of the Gauteng Global City Region. development and marketing. We also work to align and partner with National Constant communication and liaison with our Government, Municipalities, Private Sector 4.5.3 Strategic Goals parliamentary committees and coordination with and Communities by providing leadership, Metros and regional tourism bodies will be participation in Intergovernmental Relations as The goal of the unit is to ensure that the another focus area guided by our intergovern- well as

GTA ANNUAL REPORT 13/14 52 province is promoted as a preferred world tourism towards GDP and sustainable job class destination renowned for its quality creation. The successful hosting of the Gauteng Also brand visibility would be enhanced through tourism experiences, and that the provincial Lilizela Awards by GTA and participation of the inclusion of our logos in N3 Gateway’s Government, the Tourism Sector and the product owners in the competition at Provincial domestic exhibitions and events. regions, also work together for mutual benefit and National levels is highly commended. and growth of responsible and sustainable 4.5.5.4 Joint Roadshows with the tourism in the Province. 4.5.5.2 Regional Tourism Awards Premier’s Office

4.5.4 Key Functional Work Areas Sedibeng and West Rand District Municipalities Stakeholder Engagement and Community successfully hosted their Regional Awards Awareness, was key in ensuring Tourism The unit is a strategic organisational pillar that for 2013/2014. The increased participation of Opportunities on Career Development, Skills focuses on supporting internal business units product owners from previously disadvantaged Development and SMME support are realised in the implementation of GTA programmes individuals (PDI’s), is a reflection of the in Gauteng through the roadshows and and projects on Tourism Development increasing pace of transformation and the access to information. The unit participated by and Marketing. It drives and reviews the extent to which tourism is reaching out to showcasing tourism opportunities at Economic implementation of the Institutional Framework marginalised communities in the economically Opportunities Roadshows in Wattville, and Stakeholder Management at regional level. deprived regions of Gauteng and this promotes Boipatong, Bramfisherville, Evaton, Ratanda, It also uses the Intergovernmental Relation the Regional Destinations of Gauteng. More Randfontein, etc. More roadshows are planned Forum as a platform to advocate for tourism products were encouraged to participate and throughout the Province. projects. Through the alignment of the IDP with compete in the Provincial and National Lilizela municipalities, public private sector partnership Awards in 2014. 4.5.5.5 Support to internal and roadshows, the unit creates an enabling Business Units environment for community beneficiation. 4.5.5.3 Cross Border Collaboration • The Unit’s support cuts across all business 4.5.5 Key Milestones and Activities in the GTA provided leadership role with the purpose units and working closely with the CEO’s period under review of using the N12 route to market destination office in the coordination of the Round Table Gauteng and its products in particular, the discussions in all the regions culminated 4.5.5.1 Gauteng Lilizela Awards 2013 Cradle of Humankind World Heritage Site. in the hosting of a well-structured two-day GTA became an affiliated member of the N3 Summit in Sandton. The unit facilitated and coordinated the hosting Gateway Association and is marketing the of these South Africa’s premier travel and province outside its borders. This membership • The ability in the coordination, liaison and tourism awards. They are aimed at recognising, assisted in the profiling of GTA through support to especially the Infrastructure Unit awarding and celebrating tourism business their Digital Media promotion and Toll Plaza with regards to aligning with Municipalities for tourism excellence’s contribution to South distribution of our promotional collateral. IPD’s; presentations to Sedibeng and West Africa’s global competitiveness, and for growing Rand District Municipalities and Section 80

GTA ANNUAL REPORT 13/14 53 Committees on Economic Development and on policies around BBBEE, Institutional Continued guidance was given to the RTO’s Tourism, resulted in the municipalities pre- Framework, IDC Tourism Funding priorities to work with the Local Tourism Organisations feasibility and feasibility studies on tourism and Municipal Tourism plans. These capacity (LTOs) and Local Tourism Associations (LTAs). projects. building workshops provided knowledge, skills, tools, a forum for discussion and reflection 4.5.5.10 Intergovernmental Relations • Joint preparatory work was also done to to product owners about tourism planning drive the implementation of the Visitor and development that will ensure destination The DED’s Political and Technical Information Service Strategy (VISS). sustainability. Intergovernmental quarterly meetings created Support was also provided to the unit in the a platform for the unit to promote tourism establishment of Visitor Information Centres The collaboration with Tsogo Sun in hosting development and market projects and events. (VIC’s) and this resulted in the testing of of Lilizela Awards in 2013 enabled mutual three pilot projects in West Rand, Tshwane benefits of brand placement and marketing The unit also used the regional bilateral in and Sedibeng opportunities to both Tsogo Sun and GTA Sedibeng and West Rand District Municipalities and the achievement obtained will be used to unblock and resolve impediments on tourism 4.5.5.6 Institutional Framework as a model to attract more private sector projects and share tourism plans. partnerships for future events. The Institutional Framework which guides the 4.5.5.11 Impact of achievements interaction with stakeholders was reviewed. 4.5.5.9 Establishment of Regional Tourism on the overall organizational Key stakeholders in all the regions have Structures Performance been given time to input on the review of this document. Tshwane Metropolitan Municipality set up its • The Gauteng Tourism Infrastructure Plan Regional Tourism Organisation (RTO) which is was developed through the integration of 4.5.5.7 Stakeholder Engagement Plan a model encapsulating mutual Public Private GTA projects and Municipal Tourism IDP Sector interest. Projects. The Stakeholder Engagement Plan was • Regional bilateral were held to unblock developed in line with the Institutional The Sedibeng District Municipality established Tourism projects within the municipalities. Framework and once finalised would be an Interim Committee for its RTO. The Westrand • Cross Border co-operations were formalized driven from the CEO’s office. District Municipality revised its RTO model for through the N3 Gateway and N12 Treasure implementation; The Johannesburg RTO is Route to expand marketing Gauteng outside 4.5.5.8 Strategic Partnerships currently being restructured. its boundaries. • Integrated Plans have now been co- Regional Tourism, Municipalities and National The unit managed to strengthen relations ordinated by the unit to ensure GTA’s Department of Tourism (NDT), facilitated and established good co-operation with increased impact in the Regions. Information and Awareness workshops in all all RTO’s in the regions to implement the • Review of the Institutional Framework the five regions, to educate product owners Visitors Information Services Strategy (VISS).

GTA ANNUAL REPORT 13/14 54 • Strengthening of the Regional Tourism • promote energy efficiency imperatives, 150 tourism establishments were trained Organisations (RTOs) • promote Green Tourism objectives, on the importance of Responsible Tourism • Support for Local Tourism Organisations • encourage and enhance Community Business principles, the importance of (LTOs) Beneficiation, National Minimum Standards compliance • Stakeholder engagement strategy • promote tourism best practice standards, and tourism best practices. development • promote Responsible Tourism awareness. • Skills development for Tourism to support • Ensure tourism Safety and Support • Tourism Safety Support programme was the Tourism Transformation Agenda developed and implemented. The unit in 4.6.2 Key strategic objectives collaboration with key tourism stakeholders 4.5.6 Opportunities assisted on matters relating to Hop-On- The unit promotes sustainable and responsible Hop-Off Red Bus incidents, management • Promotion of Domestic Tourism to previously tourism practices within the destination by of the Muldersdrift support activities and the disadvantaged individuals the industry role-players and stakeholders. Carlton Centre in the CBD area. • More Private Sector Partnerships The focus area is both the tourism business • Service Excellence Awards practices and practitioners to portray a caring • Through the Safety and Support provincial • Provincial tourism forum to support the and responsible destination. cluster, the SA Police Service (SAPS), and Gauteng Global City Region the Department of Social Justice, dedicated • Strong intergovernmental relations The unit enforces direct integration of the attention to matters involving tourists, various work elements through the key thereby contributing to a positive profiling 4.6 RESPONSIBLE TOURISM performance areas. Responsible Tourism and perception management for destination practices are championed mainly by enhancing Gauteng was achieved. As a result, most The purpose of this programme is to drive and sustainable and responsible awareness through stakeholders are currently using GTA as the champion promotion and integration of Inclusive tourism business and destination awareness point of contact for tourist support related Responsible Tourism programmes within the practices. The methodology of application matters and enquiries. broader pillars of economic empowerment, was done through the regional stakeholder environmental sustainability and social programmes and led to change in behavioural 4.6.4 Stakeholder engagements empowerment, in a manner that encourages patterns by industry players inclusive economic growth. • Heightened awareness was achieved 4.6.3 Key Milestones and Activities through partnerships with regional tourism 4.6.1 Unit Strategic Goal and stakeholders and the successful hosting Objectives • The Responsible Tourism Strategy and of regional workshops. The objective was action plan was developed through a to foster enhancement of responsible • promote sustainable tourism business participatory approach. Five regional tourism sustainable changes through desired practices, stakeholder workshops were held, where acceptable behavioural patterns.

GTA ANNUAL REPORT 13/14 55 • Sustainable responsible tourism best 4.6.5 Challenges and Opportunities qualified and accredited South African practices continued to be achieved through National Accredited Standards (SANAS) the industry created platforms with key • Tourism sector within the regional partners bodies within the tourism sector. players, including, the NDT, private sector does not get the deserved primary attention players and associations, public sector role- and this directly affects Responsible 4.6.6 Forth coming Activities players, the broader tourism businesses, Tourism uptake. More work on advocacy tourism practitioners and industry and lobbying leading to the prioritization of • The development and implementation of specialists. sustainable responsible practices, would be the 24/7 information provisioning system done in the next financial year. to enhance stronger co-ordination of the • Initiatives leading to partnership possibilities tourism support activities. with key partners, i.e. tourism businesses / • Some product owners still treat responsible • Lobbying and advocacy to improve industry products and resource providers for energy, tourism as an expensive exercise - that stakeholders. were identified. The aim was to encourage which should be met halfway by government tourism businesses to conserve energy agencies and departments. Therefore, 4.7 RESEARCH & STRATEGY by installing and effecting energy efficient for the benefit of having progressive and measures. responsive tourism destination, there would The purpose of the programme is to provide be a need to enhance responsible tourism comprehensive planning services across the • One focus area was the development of an uptake. entire organisation which seeks to ensure incentivised operational framework to use optimal delivery of tourism’s part of the national as a tool to lobby and solicit participation • This objective would be fulfilled if and provincial outcomes. Furthermore, the and partnerships in leveraging on resources government agencies, departments business unit has a responsibility of ensuring with financial institutions. This will assist in and bodies pay enough attention to the highest possible levels of accountability in the speedy uptake of responsible tourism sustainable and responsible tourism the use of allocated public funds through robust principles. practices. The platform is already laid for monitoring and evaluation processes. innovative economic development, through • Partnership with key industry stakeholders stakeholder mobilization and leveraging, The mandate of this unit is executed through for the establishment of the 24/7 tourism green economy imperatives and inclusive the following four sub-units: support toll number mechanism, which will participatory economic development. redress problems of tourists in distress and 4.7.1 Planning & Reporting will also contribute to direct job creation • The low uptake of Responsible Tourism initiatives. service standards programmes normally This sub-unit facilitates organisation-wide facilitated by organizations like, SAT’s Fair strategic planning and the development of Trade and through the Grading system via Strategic Plans and Annual Performance Plans. the national platform. A direct obstacle of It also facilitates the broader sector strategy speedy delivery is that there are not many development and participates in the formulation

GTA ANNUAL REPORT 13/14 56 of tactical plans that are championed by various 4.7.4 Equity Assurance 4.7.5 Unit Strategic Goal and business units in support of the overarching Objectives sector strategy. This sub unit served as the focal point for issues related to sector transformation, and also The unit contributes to the attainment of the In addition to the planning role, this sub-unit participates in the national tourism activities following organisational Strategic Goals: also seeks to ensure effective adherence to that coordinate the advancement of the compliance reporting as one of the foremost transformation agenda. It functions as a liaison Goal 1: Gauteng is a world class means of ensuring accountability not only with relevant internal and external interested destination renowned for its in the use of public funds but also in the parties on matters of transformation and also quality tourism experiences. delivery of provincial and national outcomes of reports on GEYODI (Gender, Youth and People Goal 2: Gauteng is recognised as a government. with Disabilities) matters and SMME Payment global tourism competitor for Barometers. leisure and business travel. 4.7.2 Research Goal 3: Tourism is a major It also coordinates the rollout of the Gauteng contributor to job creation The sub-unit coordinates and executes Tourism Sector Strategy (GTSS), which is and economic growth in organisational initiatives and efforts related to the anchor strategy on which all other plans Gauteng. providing sector insights in order to foster the are based. This sub unit deals with plethora Goal 4: Government, the tourism culture of evidence-based planning to enable of strategic and operational organisational sector and communities work the organisation and other external stakeholders support. together for mutual benefit to deploy limited resources most prudently in and to ensure the growth of pursuit of their business objectives. Another key area of focus for this unit is the responsible tourism in collaboration with DED in matters relating to Gauteng. 4.7.3 Monitoring & Evaluation (M&E) stakeholder engagements, namely, advocating Goal 5: Sound corporate governance and and Legal Services B-BBEE issues, amongst others, the amended enhanced strategic B-BBEE Codes of Good Practice. and operational Working in tandem with the reporting team, this support within the organisation. sub-unit analyses compliance reporting This unit ensures that Gauteng Tourism is an active participant in the National Planning and 4.7.6 Key strategic objectives and evaluates the impact of the organisation’s Coordinating Forum and the Provincial B-BBEE interventions. It inter alia, shoulders the Forum. Quarterly reports in respect of B-BBEE • Sector intelligence is used to ensure that the responsibility to flag critical performance issues compliance are submitted to the National needs of visitors drive new, innovative and of concern through the regular analytical reports Tourism Planning and Coordinating Committee. sustainable tourism practices; that are designed to assist the organisational • The sector is committed to monitoring visitor leadership to keep the finger firmly on the pulse satisfaction and perceptions of quality of organisational performance. experiences;

GTA ANNUAL REPORT 13/14 57 • A reliable and up-to-date database of all entities continues to obtain largely as a result of developed. In addition, a series of performance tourism products in Gauteng; an outstanding legal conclusion of this process. reviews for all three entities were undertaken • Attract visitors by implementing evidence As a result, there is an ongoing burden to which included the validation of portfolios of based marketing strategies; plan and account separately for each of these evidence in one-on-one sessions, presided over • Identifying opportunities to attract and entities as an audit requirement, which can by the CEO. Also, three quarterly reviews were increase new investment and infrastructure stretch limited human resources. held to review the work of all three entities. in the tourism sector; • Ensure a 100% alignment of strategic plans Despite the challenges, the unit managed Other key highlights were as follows: and budgets; to continue executing against the policies, • A provincial Demand and Supply survey was • Ensure a 100% reporting and accountability processes and procedures developed during commissioned to Grant Thornton with the compliance. the 2012/13 financial year. As a recap, these aim of testing demand from strategic and included the development and approval lucrative markets as informed by imperial Against the backdrop, the key functional of a framework for Managing Performance evidence and general tourism intelligence. areas are concentrated on producing a series Information, a Framework for the Collation The survey focused on: of research reports which are disseminated of Portfolios of Evidence for Programme internally and through sector intelligence Performance Information and a Strategic • The determination of brand recognition of sessions are also shared with the broader Planning Budgeting and Reporting Framework destination Gauteng in the province and the Gauteng tourism stakeholder community. for all the three entities. testing of the “brand promise’ as set out by the GTA; The unit is responsible for ensuring that the Based on the above frameworks, reporting and organisation and its stakeholders have a firm planning templates, schedules and review tools • The establishment of key differentiators and grasp of wide range of tourism businesses in were also developed and communicated to all tourism selling offerings in all five regions of the Province through a well-maintained product staff for the 2013/14 cycle. Gauteng was also an important aspect of database. The unit also coordinates and drives the survey; transversal planning support and ensures This included monthly and quarterly requisite accountability and liaises with the performance reporting workbooks, quarterly • Segmenting both domestic and international Audit Committee, the Board and ultimately the reviews and two strategic reviews to develop source markets and provide comprehensive Auditor-General. the 2014/15 Annual Performance Plans for profiles of key markets; the 2014 – 2017 Medium-Term Expenditure 4.7.7 Key Milestones and Activities in Framework (MTEF) as well as the Strategic Plan • Testing the performance of attractions the period under review for the 2014 – 2019 Medium-Term Strategic located in Gauteng in comparison to other Framework (MTSF). attractions located elsewhere in the country The situation of the operational challenges and other developing and developed reported in the 2012/13 Annual Report By the end of the financial year, 12 monthly and countries; emanating from the merger process of the three four quarterly reports submitted by all units was • The establishment of global economic

GTA ANNUAL REPORT 13/14 58 trends and other factors affecting travel for performance targets for the 2014– 19 purposes of forecasting to 2020 and five Strategic Plan. • A contract register implemented to manage years afterwards. the contractual issues of the organization. • A research partnership agreement was The process of vetting and drafting of • A user needs analysis study undertaken signed with Vaal University of Technology contracts were successfully implemented. to understand requirements from both in addition to other existing partnership internal and external stakeholders. The agreements with other tertiary institutions, • Provided legal support to all business units study will not only be used to update the namely, Tshwane University of Technology including contractual and administrative/ Strategic Research Plan but would provide (TUT) and University of Johannesburg (UJ). regulatory law, legislative interpretation, institutional memory on the status of tourism general legal interpretation, perusal and research within the province. • 30 Visitor Satisfaction Survey Smartbox input to project approval reports. Legal devices were placed in all the five regions. support also extended to Maropeng Africa • Sector intelligence information sharing The key objective for this work was to Leisure (MAL), GTA Board, BAC and the sessions held with 173 stakeholders monitor and determine satisfaction levels Merger Task Team. throughout the Province. Research data and in the Gauteng tourism, hospitality and intelligence also shared in these forums. accommodation sector. This involved • All litigation and pre-litigation matters were Industry stakeholders provided feedback of verification and analysis of customer satisfactorily managed within the parameters the engagements by rating the content of satisfaction with tourism products of the applicable judicial mechanisms. Due the sessions at 70% for its relevance and consumed by international and domestic to the judicious exercising of Legal Risk good quality. tourists while in the province. The outcomes Management, timely and appropriate legal were designed to guide the strategic advice rendered, only one litigation matter • Three event research studies for the interventions of the agency in ensuring was instituted against the organization Standard Bank Joy of Jazz (SBJOJ), better service quality. during the period under review. Moretele Tribute Concert (MTC) and Sansui Summer Cup (SSC). Two of these • The team participated in the National • Worked with the DED on stakeholder research studies (SJOJ and MTC) were Tourism and Knowledge Management engagement on advocating transformation conducted in house and in partnership forum’s indicator committee.The committee issues such as, B-BBEE. Participated at with Tshwane University of Technology and established and standardised indicators Gauteng Provincial and National B-BBEE Sansui Summer Cup was also initiated and for measuring performance throughout the Forums where compliance and challenges completed in house. nine provinces and was crucial in enabling including the seven elements of the IT Portal provinces to conducting their own studies for the province, were addressed. GTA • Compiled Gauteng destination performance using standardised,processes for data reports periodically to the National B-BBEE report which was presented and engaged comparability and more regular reporting at Forum. with during the strategic planning session provincial level by reducing over- reliance • According to the Monthly Payment and guided the development of the on SA Tourism’s processes. Barometers, the three entities collectively

GTA ANNUAL REPORT 13/14 59 achieved 90% compliance in terms of into Action Plans for specific sector stakeholder The challenge in the research area of poor paying SMME businesses. engagement. application of sector intelligence in some areas of our operations reported last year continued • The bulk of the work produced by this The development of the Stakeholder to persist during the period under review. unit was done internally with only an Engagement Plan championed through the Stakeholder relations and education on the extremely limited use of consultants. The CEO’s Office was greatly anticipated to impact importance of feeding data into our research development of Strategic Plans and Annual positively on the future plans to enhance processes in order to provide vital intelligence, Performance Plans (APPs) were done by partnerships through well-coordinated and would enhance the value of research work. the team. Consultants were limited to sustainable engagement plan takes onboard facilitation of strategic planning sessions. the interests of all parties concerned for the We have begun in earnest with the bottom- The development and ongoing review of the greater good of destination Gauteng. up gathering of research intelligence and the M&E Framework and most legal services engagement of sector value chain partners were also provided internally. 4.7.9 Challenges and Opportunities to foster the culture of using evidence-based planning. • We believe these achievements Whilst there have been significant strides made enhanced the effectiveness of the in the adoption of new reporting requirements, 4.7.10 Resource allocation organisation’s efficiency. entrenching new practices continues to pose a challenge. New ways were continually being The unit was allocated an operational budget 4.7.8 Stakeholder engagements explored to continuously improve the situation of R4 542 000 of which an amount of R4 362 in this regard. 210 was utilised during the financial year. The The effective engagement with stakeholders variance for the financial period is 4% under- particularly in the area of research w iz@ The inclusion of reporting obligations in all spend. rockstar4000.com as a critical component in performance contracts for the period under achieving our goal. These included both the review contributed greatly towards improving 4.8 TOURISM INFRASTRUCTURE private sector and other state organs involved the situation. in tourism. Maximizing the use of existing The purpose of this programme is responsible platforms instead of creating parallel structures The resignation of the Planning & Reporting for all strategies, policies, infrastructure yielded better results in the unit during the Manager early during the financial year under programme analysis and planning related period under review. review as well as the delays in the recruitment to Tourism Infrastructure in Gauteng. This processes to fill the vacant position exerted programme’s objectives are to narrow the The second installment of the Provincial Tourism immense pressure on human resources, given gap between supply and demand, enrich the Summit – hosted in partnership with the Tourism the demands of servicing the merging three visitor experience through the development of Business Council of South Africa (TBCSA) – entities. products and experiences, secure funding for produced resolutions which would be converted all infrastructure related projects; and undertake

GTA ANNUAL REPORT 13/14 60 work related to actual project implementation Strategy (NTSS). Objective 3 delivery of Tourism Infrastructure, including community beneficiation elements. Goal 1: Gauteng is a world class Acting responsibly for the benefit of the destination renowned for its economy, environment, employees, 4.8.1 Role of the unit quality tourism experiences. communities and society as a whole. Goal 2: Gauteng is recognised as a Overall, the programme establishes long- global tourism competitor for term tourism infrastructure strategic planning leisure and business travel. 4.8.4 Key functional work areas processes to guide the sustainable, Goal 3: Tourism is major contributor development, marketing and management of to job creation and economic The planning for tourism infrastructure projects Destination Gauteng. growth in Gauteng. informs destination promotion and destination Goal 4: Government, the tourism management; the latter two areas of work being 4.8.2 Achievement of Objectives sector and communities work core to the mandate of the organisation. together for mutual benefit • Undertake a process to deliver on the and ensure the growth The tourism infrastructure area of work also various elements of the Maropeng of responsible tourism in integrates with the overall work plan as follows: Infrastructure upgrades; Gauteng. • Complete the transfer and repositioning • Advocacy for a strong level of support from strategy for the Garankuwa Hotel School; Objective 1 key stakeholders; • Retrofit and operationalise the National • Improvement of access for visitors by Tourism Information Gateway and Domestic Providing world-class infrastructure that planning and developing effective transport Desk at the OR Tambo International Airport; supports the tourism industry as well as infrastructure and systems; • Complete two feasibility studies; framework to guide investment and operations • Planning and developing a range • Facilitate partnerships with local and in the sector. of appropriate visitor products and international partners; experiences; • Initiate the process to implement the Visitor Objective 2 • Investment facilitation through effective Information Services Strategy (VISS); identification of opportunities and • Finalise themed maps and initiate the Providing a wide-range of world-class customer- conducting feasibility studies to package process to develop routes. focused and vibrant visitor experiences located bankable projects; throughout the province, which appeals to • Planning and developing appropriate 4.8.3 Strategic Goal and Objectives the diverse needs of increasing numbers infrastructure and support facilities for of overseas, African and domestic visitors tourism; and The team derives its mandate directly from and local residents with specific reference to • Planning and developing for the preservation the Gauteng Tourism Sector Strategy (GTSS), increasing public sector, private sector and of natural, built and socio-cultural as informed by the National Tourism Sector foreign direct investment. environments.

GTA ANNUAL REPORT 13/14 61 4.8.5 Key Milestones and Activities and Domestic Desk at the OR Tambo • Stimulate local development and International Airport. contribute to poverty alleviation – business In the provincial space, as informed by development and job opportunities for the Tourism Infrastructure Project Portfolio • Completed the business plan for the locals through tourist/visitor spend. developed in 2012/13, which identified all Struggle Route, as informed by the Themed tourism infrastructure projects, the team is Maps project developed in 2012/13, as well • Set-up processes to deliver on the currently finalising feasibility studies with as the research and coordination support Maropeng Infrastructure upgrades. the view to incrementally implement tourism from Struggle Veterans. This route’s main infrastructure projects. purpose is to: • Coordinated and chaired the Transport Roundtable and Dialogue at the 2013 • The Repositioning Strategy for the • Develop and promote the destination - Tourism Summit that was co-hosted with the Garankuwa Hotel School, as the basis upon highlight attractions both along and off the Tourism Business Council of South Africa which the school will be governed in the routes; bring lesser-known products into (TBCSA). medium to long term was completed. the main stream business and enhance the appeal of a destination; • Chairs and coordinates activities of the • The implementation of the Visitor Information Destination Management Committee for the Services Strategy that was developed in • Enhance visitor experience - provide GTA Board’s consideration. the 2012/13 financial year delivered the the traveller with a reason to explore the following: destination’s routes and experiences; • Assisted to elevate the importance of the • The Framework for the three pilot regions is Tourism infrastructure area of work as the Tshwane, West Rand and Sedibeng. • Assist in trip planning and increase length basis upon which the Destination Planning - VIC Framework of stay – support itinerary development for and Development Unit was formulated. - Membership System Framework a driving tourist - which route to take; which - E-Toolkit Framework attractions and activities to experience; • Formally requested the inclusion of which accommodation to use along the trip, tourism infrastructure into the Presidential • Completed the Architectural Aesthetics etc.; Infrastructure Coordinating Committee Manual with 3D animations, with a view (PICC) through the Development Working to improve and align visitor services in • Encourage geographic spread of tourism - Group. Gauteng, in order to achieve uniformity encourage dispersal of visitors and tourism (standardization) and functionality, which will income within the Gauteng regions; and • Elevate the importance of the visitor services in turn, reflect what Gauteng has to offer as area of work on the Newco structure. a destination. • Foster alliances and partnerships - required in further destination development and • Submission made on Tourism Infrastructure • Retrofitting and operationalisation of the marketing efforts. Strategy and Plan and the Visitor Information National Tourism Information Gateway Services Strategy, to the Provincial Executive

GTA ANNUAL REPORT 13/14 62 Committee/Cabinet for approval, with a 4.8.7 Stakeholder engagements 4.8.8 Key Stakeholders Involved view to coordinate the provincial delivery of tourism infrastructure and visitor services. • Stakeholder engagement and partnerships • Private sector; underpin the core of delivering on the • National Department of Tourism (NDT); 4.8.6 Impact of achievements on the tourism infrastructure work. Thus, the • Tourism Business Council of South Africa overall organizational current and future relationships with (TBCSA) and all of its associate members; performance various stakeholders across all spheres • Passenger Rail Agency of South Africa of government and the public sector in (PRASA); • At provincial level, Tourism Infrastructure general, as well as the private sector, • Municipalities of Gauteng Region – (informed by the Tourism Infrastructure ensured the broader achievement of the Johannesburg, Sedibeng, Ekurhuleni; Strategy and Plan), was incorporated into tourism yield (economic growth and jobs). Tshwane and West Rand; the Gauteng Integrated Infrastructure Master • Tourism Associations, LTAs and RTOs; Plan as a stand-alone category. • Continue with project feasibilities, with • Gauteng Department of Roads and a view to create a pipeline of tourism Transport (GDRT); • Tourism infrastructure was also incorporated infrastructure projects overtime; deploying • Gauteng Department of Economic into the Gauteng 2055 Plan. the recent tourism demand and supply, with Development (DED); a view to develop the product development • Gauteng Department of Agriculture and • Improved alignment of tourism infrastructure strategy; finalizing the investment facilitation Rural Development (GDARD); at the national, provincial and local level guide, and embarking on a process to • Gauteng Department of Infrastructure to ensure that stakeholder engagement coordinate development approvals. Development (DID); and partnership processes become less • Construction Industry Development Board complicated to facilitate. • Formalize the partnership agreement (CIDB) manual and the family of NEC with GGDA on investment facilitation and contracts for construction works and built • The frameworks, strategies, and plans promotion programme. environment projects, as they relate to developed by the unit, guided the effective infrastructure; implementation of tourism projects. • Meeting with PRASA on the development of • Civil Society Groups – Struggle Veterans the Cross Border Shopping Precinct at Park Associations. • The developed plans also assisted Station and/or Germiston. promotional teams to target their 4.8.9 Challenges and Opportunities programmes towards relevant stakeholders. • Extensive consultation with business, municipalities and civil society on the • Insufficient capacity in the team with respect development and implementation of to the numbers and skills. Gauteng Routes, including the Struggle and Democracy Route.

GTA ANNUAL REPORT 13/14 63 • Budgetary constraints – the current growth and jobs needs and to play a framework; budget does not adequately cover capital key role in the Newco. All activities and • Refine the experience development toolkit; investment costs of current and future processes related to this work should be • Formulate the product development infrastructure developments, and in most based on the achievement of this national strategy; cases, does not address operational imperative. • Harmonise development approval needs. processes; • Gauteng tourism has been recognized to • Deliver on the Africa Exhibition in Shanghai • Constant addition of tourism infrastructure lead the debate on the critical nature of (through an international cooperation projects, such as Garankuwa Hotel School, tourism infrastructure in the country. This agreement between Gauteng, University of Suikerbosrand, Conhill, etc into the project platform presents an opportunity for the Witwatersrand and China); implementation sub-unit stretches the organisation to set the national agenda in • Two additional routes to be developed. capacity to manage these projects going this area of work. forward. As a result, administrative or 4.9 GAUTENG CONVENTION AND operational efficiency in running these • The organization should continue to elevate EVENTS BUREAU projects is not achieved. the tourism infrastructure area of work in the merged entity and to provide strategic The purpose of this programme is to be • Inability to deliver on the operational plan leadership to the tourism sector as a whole. the neutral partner with the goal to promote thereby impacting on the APP and POA. A Gauteng as Africa’s leading business key example was the non-delivery of picnic 4.8.10 Forthcoming activities destination. The unit offers services free sites and amphitheatre in Maropeng. of charge to any national or international • Continue to deliver on the Maropeng organizer of meetings, conventions, incentives • The current organizational structure caters infrastructure upgrades in the Cradle of exhibitions and events. for the team’s functional areas. Alternative Humankind World Heritage Site (COH models of investment would be employed WHS); 4.9.1 Gauteng Convention and to source funds beyond the fiscus’ coffers. • Develop the flagship Joburg VIC, as part of Events Bureau (GCEB) the network of Visitor Information Centres • Apply lessons and recommendations from (VICs) in Gauteng, which forms an integral The unit was established in 2013 as a business the Australian and New Zealand trip on component of the tourism industry and unit of Gauteng Tourism. The Gauteng tourism infrastructure planning, project acts as a valuable distribution network for Convention and Events Bureau is member of development and investment facilitation a range of experiences that are on offer a number of national and international Meeting and promotion. throughout the province; Industry associations. • Continue with project appraisal and • Tourism infrastructure, as a subset of development processes; Under its leadership, four conferences and infrastructure investment to drive economic • Finalise the investment facilitation events specialists work to acquire convention,

GTAGTA ANNUALANNUAL REPREPORTORT 13/1413/14 6464 meeting, exhibition and events business incentive trip, calls for professional organization 4.9.1.3 Detailed services provided from around the globe and play a key role and thorough planning. Gauteng Convention in maintaining Gauteng’s international and and Events Bureau offer you knowledgeable 4.9.1.3.1 Communication Support national reputation as a recognized destination. and prompt support during this process, free of charge. • Acting as a liaison between local contacts Conferences, corporate conventions, and meeting planners; exhibitions and events are an important element 4.9.1.2 Generic Services of the • Assist in the selection of suitable convention of Gauteng’s tourism,accounting for 12.4 % of Gauteng Convention and facilities, accommodations and other overnight stays by visitors to the Gauteng, in the Events Bureau convention suppliers; year 2013. • Advises on the planning of pre- & post- • The unit helps in choosing the perfect tours and social programs; The province’s excellent congress location for events in Gauteng; • Actively promoting upcoming meetings infrastructure, the high standard of conference • Assists to reserve the required hotel room in Korea to attract as many delegates as support services and the cultural attractions of allocations for events; possible. the province all help to make Gauteng one of • Puts in contact with the local service the top destinations for international and providers; 4.9.1.3.2 Site Inspection Support national conferences worldwide. • Ensures that Gauteng is successful in its bid to host your event, we design bid books • The unit provides complementary site 4.9.1.1 Services and PowerPoint presentations; inspection tours to key decision makers. • Arranges site inspections according to your • complimentary hotel rooms (subject to The GCEB is a non-profit company that requirements; availability); markets Gauteng as a premier Business Events • Under certain conditions, offers financial • arrangement of appointments with between destination, identifies and bids for Business support for international association venue and hotels; Events, and provides free assistance to meetings held in Gauteng; • complimentary tour service; associations to bid for national and international • Provides the planner and delegates with • provision of translator and local guides. Business Events. free of charge promotional material such as brochures, videos, digital pictures and city 4.9.1.3.3 Monetary Support Gauteng has a long history in staging maps; successful major events and conferences. • Publicizes events free of charge in the online Actual amount of financial support depends on The Province is constantly adding to its Gauteng Convention and Events calendar; event size or scope. Appointment arrangement infrastructure and has an established reputation • Has the ability to fundraise both in kind and with venues and hotels. Types of support as one of the world’s leading Business Events financially for the event; include: destinations. • Has the ability to recruit volunteers to • support cost associated in the bidding Holding an event such as a congress, provide support prior and during the event. process; conference, corporate meeting, exhibition or • cultural entertainment subsidy;

GTAGTA ANNUAL ANNUAL REPORT REPORT 13/14 13/14 6655 • media tours; 35,000 delegates were developed to bid stage. enhance its appeal as a recognized global • Customized souvenirs. competitor for leisure and business travel, the GCEB continued to benefit from its partnership promotional plan for the year under review 4.9.1.3.4 Marketing Support with the South African Tourism National has been aligned mainly to the South African Convention Bureau Alliance through the hosting Tourism co-funded events and trade shows Marketing support to include all costs of Meetings Africa 2014 in February. where provinces were invited to participate. associated pre- and post- bidding process including: The trade exhibition hosted 169 international These events were mainly made up of qualified hosted buyer delegates (15 percent international trade shows and South African • Local and International Public Relations more than in 2013), 31 African Association Tourism in-country road shows. activities; hosted buyer delegates, 238 local corporate • Online and Offline communications buyer delegates (up 140 percent on last year), activities; 839 visitor delegates (up 16 percent on last Activities in the period under review include: • Bid Presentation activities; year), and 262 exhibitors (up 11 percent on • development of a Trade Growth Strategy • Support with promotional booth setup; last year)162 journalists (up 19 percent on last addressing the role of trade in positioning • Support and provide all promotional year). From this event, leads representing 3 destination Gauteng as a global tourism materials: videos & CDs, tourist guidebooks, 295 delegates (up 15 percent on last year) and competitor maps, and convention brochures. R50 million in estimated economic impact are • provision of suggested two-and-three day being pursued. itineraries to travel trade, covering all regions 4.9.1.3.5 Generating business and experiences opportunities 4.9.2 Trade Marketing • strengthening of Gauteng’s profile through In the last financial year a new business events The purpose of the trade marketing department new and existing relationships with key trade unit was established within the Integrated is to increase leisure visitor volume, length of channel partners both in-market and in Marketing and Communication team to stay, visitor spending and economic impact for South Africa identify conferences and exhibitions aligned destination Gauteng through the promotion and with GCEB’s priority sectors of financial, distribution of the destination’s travel products • Gauteng Tourism participated in the manufacturing, technology and engineering, to the travel trade. following trade exhibitions: transport logistics, sports and education. -INDABA (May 2013) The main expected outcome from the period -ITB Asia (October 2013) New leads representing 120 000 delegates under review was the development of a trade -WTM (November 2013) were identified and researched for their marketing strategy in order to be able to -ITB Berlin (March 2013) future potential for Gauteng and from these, engage optimally on the travel trade platform. • Participation in travel road shows to international leads representing 85,000 introduce Gauteng product to international delegates and national leads representing In order to develop awareness of Gauteng and travel agents, wholesalers and media:

GTA ANNUAL REPORT 13/14 66 - SA Tourism China road show (June biggest tour operators in Germany. The articles highlighted that South Africa is 2013) becoming a more affordable destination. - SA Tourism The Netherlands road show The opportunity was presented to GTA Reports on the three-day visit to Johannesburg (October 2013) who worked with SAT as well as the event highlight the regeneration and recent - SA Tourism India road show (January organizers in influencing the three-day itinerary developments and changes in the city and even 2014) in Johannesburg, and hosting a gala dinner for refer to it as the Berlin of Africa. • Delivery of trade familiarization trips resulting the group. in increased awareness, promotion and 4.9.3 Challenges and Opportunities inclusion of the destination The Trade portfolio arranged a range of activities in partnership with key products for Major challenges experienced in the year 4.9.2.1 Key milestone in the period under the journalists during their stay, exposing them under review is the fact that there is not review to the attractions such as the urban precincts, enough interaction with trade and that more Soweto, Constitution Hill and Johannesburg partnerships should be developed in order The partnership that GTA entered into with inner city. to educate the travel trade more about the SAT Germany country office and hosting of destinations travel trade products. The portfolio the Thomas Cook’s annual Press Conference The event was attended by 65 German is looking forward to the growth in this division and Catalogue Presentation, November 2013. journalists as well as Thomas Cook’s executive in the next fiscal when the Trade Growth South Africa, and in particular became the management team and the biggest media Strategy will be implemented. first long-haul destination to host the event, familiarization trip hosted by South African traditionally only hosted and rotating in Europe. Tourism Germany. The group attended post- tours in Kwa-Zulu Natal and the Western Cape. South Africa, and in particular the city of A total number of 564 articles, using various Johannesburg was chosen to host the event, media channels, were produced by journalists which demonstrated an incredible vote of about the event and visit to South Africa with a confidence in the destination by one of the total advertising value of 2,575,408 Euro.

GTA ANNUAL REPORT 13/14 67 GTA ANNUAL REPORT 13/14 68 GTA ANNUAL REPORT 13/14 69 DESTINATION PERFORMANCE REPORT SECTION 05

GTA ANNUAL REPORT 13/14 70 DESTINATION GAUTENG TOURISM PERFORMANCE 2013 Overview Report

At the time of compiling this report, the SA 5.1.Methodology A total of n = 600 foreign visitors departing from Tourism’s Annual Tourism Report – traditionally South Africa via O.R. Tambo International Airport used to report on tourism performance for the 5.1.1. Domestic Visitor Survey were interviewed. Province – had not yet been released. A total of 1 850 households across the various The sample comprised 500 foreign respondents The research results contained in the report provinces in South Africa took part in the survey that had visited Gauteng before and 100 that are derived from the Gauteng Provincial (see Annexure A). When taking into account the had either not visited the Province before or had Tourism Demand and Supply Report, based on n = 1 519 respondents that were interviewed, not visited in the past 5 years. departure surveys undertaken during the period but had not travelled to Gauteng during the June–September 2013. stipulated 12-month period, the total sample The sample quota was based and the split size amounted to n = 3 369. between overseas and African visitors as well Due to seasonal differences in travel, motivation as visitors/non-visitors are shown in the table and patterns cannot be used to accurately The 2010 population estimates at Enumerator below. depict the total population of visitors during the Area (“EA”) level were used as the sampling course of a full year. frame as the 2011 Population Census, There are limitations to consider when using published by Statistics South Africa (“StatssA”), the survey such as the sample size being too The survey cannot be used to accurately was not yet available at the time of sampling. small to drill down into more specific data quantify visitor numbers by segments, purpose Since only formal urban areas are covered for on destinations. The survey only represents of travel or destination visited but can only the purpose of this study, the LSM profile of the departures during a particular period (July) provide indicative visitor characteristics, sample reflects this reality (i.e. LSM 5 to 10). in the year and therefore due to seasonal awareness and travel patterns. differences in travel motivation and patterns Ten (10) qualifying households within the cannot be used to accurately depict the total As a consequence of these different selected EAs were selected using a systematic population of foreign visitors in a year. approaches employed in conducting this random sampling approach. The respondent survey, the results will not be totally comparable from the selected household was selected As the survey was conducted during July to the SA Tourism results. Other methodological by listing members of the household aged 18 only, it cannot be used to accurately quantify issues are explained in the relevant sections years or older and selecting one individual at international visitor numbers by segments, below. random using a Kish Grid. purpose of travel or destination visited. It 5.1.2. Foreign visitor Survey can only be used to provide indicative visitor characteristics, awareness and travel patterns.

GTA ANNUAL REPORT 13/14 71 FOREIGN VISITOR SAMPLE FRAMEWORK

GTA ANNUAL REPORT 13/14 72 UK and Europe

North America

East Asia

Africa

South America

Table 1.1 Foreign Visitor Sample Framework

Source market Non Visitors to Gauteng Non Visitors to Gauteng

Africa 190 40 UK and Europe 160 30 East (Asia) 50 10 Northern America 50 10 South America 50 10

GTA ANNUAL REPORT 13/14 73 GTA ANNUAL REPORT 13/14 74 5.1 Domestic Tourism holiday destination within Gauteng. 2013 hierarchy of domestic demand concentration is foreign tourists to Gauteng projected based on similar to the hierarchy of supply; except West 5.1.1 Number of Trips the 2013 SAT numbers by source country. An Rand outpaces Sedibeng in terms of supply but estimated 4,27 million foreign tourist visits were not in terms of domestic demand. When comparing our total number of trips made to Gauteng in 2013. with SA Tourism and StatsSA, there is a vast Noticeable gaps in demand e.g. no medical difference between the total number of trips. 5.1.2 Purpose of Visit outside Johannesburg and Tshwane, no sports As shown in Table 1.1, a total of 10, 3 million spectators in Tshwane, no trading shopping in trips were made to Gauteng over the 12 month Each of the surveys shows that ‘Visiting Friends Ekurhuleni or in the West Rand. The West Rand period according to the survey, whereas, SA and Relatives’ (VFR) is the most common mainly attracts Business, holiday and VFR, with Tourism 4, 2 million trips to Gauteng in 2012. reason for visiting Gauteng. However, this limited religious travel and not much else. research shows a lower VFR incidence at 51,1% These numbers decreased over the past few (NB: This is still the highest share). We can years, and Gauteng received 6, 4 possibly attribute differences to geographical million domestic trips in 2010. On the other coverage (i.e. urban formal areas only) as the hand, StatsSA recorded 1,8 million trips to inclusion of non-urban areas / non-metropolitan Gauteng in 2011 and 1,9 in 2010. areas in the other 2 surveys could affect the incidence of travel. This indicates a vast difference between the StatsSA and the SAT data as well. The main Each of the surveys shows that ‘Visiting areas of difference are in the levels of business Friends and Relatives’ (VFR) is the most and holiday travel which are significantly higher common reason for visiting Gauteng. However, in the GTA survey. this research shows a lower VFR incidence at 51,1% (NB: This is still the highest share). The majority of visitors to Gauteng go to the City We can possibly attribute differences to of Johannesburg accounting for 6 241 257 (60, geographical coverage (i.e. urban formal areas 4%) of the total trips to the province. Followed only) as the inclusion of non-urban areas / non- by City of Tshwane (18, 3%), Ekurhuleni (14,0%), metropolitan areas in the other 2 surveys could Sedibeng (4,5%) and West Rand (2,8%). affect the incidence of travel.

VFR tends to be the most prominent reason for Johannesburg attracts by far the greater portion travel to each of the regions with West Rand of all types of visitors to the Province with the receiving almost on par VFR and holiday visitors exception of shopping for resale/trade where indicating the West Rand as a more important Tshwane attracts an equal number. Overall the

GTA ANNUAL REPORT 13/14 75 Table 1.1 Percentage of visitors by purpose of visit

Business Visiting Friends Professionals Holiday and Relatives Business Convention Education Religious Medical 3.20%

4.20% 51.1% 4% 10.4% 0.60% 15% 1.1% 1.40% 4.20% 0.90% 3.20%

Entertainment Sports Sports Shopping Event Participation Spectattor for resale

GTA ANNUAL REPORT 13/14 76 5.1.3 Bednights and Length of Stay Table 1.2 Bednights by region Johannesburg accommodates almost 60% of domestic bednights demand in the Province. 83% of the bed nights were spent by the Visiting Friends and Relatives segment. Of the domestic bed nights, only 19,7% are spent in paid accommodation i.e. 6,9million bed nights in paid accommodation from the Domestic 59% market. 17% 16% 5.1% As shown in the above pie chart, the majority of 1.9% bednights are spent in the City of Johannesburg at 20 912 002. This is followed by City of Tshwane (5 978 468), Ekurhuleni (5 579 229), City of Sedibeng Ekhurhuleni City of West Rand Sedibeng (1 763 724) and the West Rand Tshwane Johannesburg (672 135).

5.2 Revenue Purpose of visit Average spend Holiday R3 143 The average spend per person per trip is R2 125. The chart below shows the average Visiting Friends and Relatives R1 710 spends across people who spent in each Business Professionals R2 255 category of expenditure. The highest average Business Convention R4 059 spend per trip by purpose of visit is R4 952 by Education R3 259 sport participants and the lowest is Religious Entertainment Event R2 308 and VFR with R1 699 and R1 710, respectively. Sport Participant R4 952 The actual spends are higher than those from Sport Spectator R1 460 other surveys mainly because SAT surveys Shopping for Personal use R3 736 excludes pre-paid expenditure. Pre-paid Shopping for resale / trading R1 968 expenditure for an entire trip to SA ranges from Medical R4 804 R30 000 – R45 000 for overseas tourists and is around R17 500 for African air tourist. Total Religious R1 699 Foreign Direct Spend (TFDS) amounts to R 35.9 Other R3 321 million.

GTA ANNUAL REPORT 13/14 77 5.2.1 Foreign Tourism Demand Foreign Domestic Total Overseas markets spent roughly half of their time in Gauteng while in South Africa Region whereas the African markets spent nearly Rm % Rm % Rm % all of their time in Gauteng while in the Johannesburg 29 817 82.9% 13 336 60.8% 43 153 74 5% country. Out of a total of 1 421 trips to Tshwane 4 241 11.8% 3 535 16.1% 7 775 13.4% South Africa, 986ww included a trip to Gauteng. Ekurhuleni 692 1.9% 3 596 16.4% 4 289 7.4% Sedibeng 741 2.1% 906 4.1% 1 6472.8% This means that 69,4% of all trips to South West Rand 494 1.4% 570 2.6% 1 064 1.8% Africa included a trip to Gauteng. More Total 35 986 21 943 57 928 than two thirds of respondents indicated that they did not visit another African country over the specified 12 month period Foreign Air Trips (Figure 2.2); showing that South Africa is Destination Number of trips Share 2013 the primary and sole African destination for Johannesburg 1 083 146 79.0% the majority of respondents. Tshwane 232 30316.9% 5.2.2 Estimated Foreign Air departure Ekurhuleni 41 9823.1% number trips Sedibeng 5 5980.4% West Rand 8 396 0.6% In order to estimate total foreign tourists Total 1 371 425 100.0% visits by region, Grant Thornton projected the 2013 numbers of foreign tourists to Gauteng based on the 2013 SAT numbers African Border Trips by source country; then applied the regional distribution as per the GTA survey Destination Number of trips Share 2013 samples. In total, an estimated 4, 4 million Johannesburg 2 159 397 74.4% foreign tourist visits were made to Gauteng Tshwane 386 98913.3% in 2012. Ekurhuleni 147 0565.1% Sedibeng 100 6173.5% By far the most respondents (79, 0%) West Rand 108 357 3.7% indicated that the City of Johannesburg was their main destination in Gauteng Total 2 902 416 100.0% (Figure 2.13).

GTA ANNUAL REPORT 13/14 78 This is followed by the City of Tshwane with assessments result in an indicative estimate a week or less while about 1 in eight visitors 16, 9% of respondents while Ekurhuleni, that overall bed occupancy achieved in the stayed for 20 days or more, and a small peak West Rand and Sedibeng account for a province is around 39%. Bed occupancy levels of about 1 in twenty staying 14 nights.Overseas cumulative 4,1% of all respondents’ main are markets generally stayed for longer periods of destinations in Gauteng. always lower than room occupancy levels due time in South Africa compared to the African to single room occupancy. markets. 5.3 Foreign Air departure Bed-nights & Length of Stay Most of the accommodation survey The UK / Europe and Northern America spent respondents indicated average room around 2 weeks in South Africa compared to Of the Foreign Air, 51,9% of bed-nights are in occupancies ranging from 20% to 60%, with the African markets spending just over a week paid accommodation, or 5,1 million, and finally the average calculation indicating 56% room in the country. Respondents visiting South only 22,7% of Africa Border bed-nights are occupancy for non-self-catering establishments. Africa to Visit Friends, Family and Relatives spend in paid accommodation, or 2,35 million. Overall these two results look plausible and (“VFR”) spent around 2 weeks in South Africa This gives a total of 14, 3 million bed-nights make sense juxtaposition with each other. compared to holidaymakers with a 10,8 night spent in the province in paid accommodation. average stay, business professionals with 8,5 The average number of nights spent in South nights and business convention, conference or The 99 500 beds provide some 36 million bed Africa across all respondents is 10,99 nights. exhibition goers with 5,5 nights. nights, and therefore the supply and demand Most respondents stayed in South Africa for

Air Departures Length Total Bednights City of City of Tshwane Ekurhuleni Sedibeng West of stay Johannesburg Total Trips 7.1 9 805 126 7 578 101 1 836 776 285 574 40 863 63 813 Holiday 4.9 2 070 851 1 782 852 219 428 68 571 0 0 Visiting Friends and 9.6 2 821 216 1 880 811 832 931 53 737 26 869 26 869 Relatives Business Professionals 6.6 2 826 254 2 327 504 350 973 110 834 0 36 945 Business Conv/Conf/Exhib 5 587 753 433 818 125 947 13 994 13 994 0 Other 13.7 1 499 051 1 153 116 307 498 38 437 0 0 Percentage of Total 100% 77.3% 18.7% 2.9% 0.4% 0.7% Bednights

GTA ANNUAL REPORT 13/14 79 5.4 Tourist Spend African Border survey tourist spend

The actual spends are higher than those from African Border Trips Spends other surveys. Relevant trips spent in Gauteng Destination Number of trips Share 2013 Average Spend Total Spend Rm whether it was pre-paid or not. The SAT surveys R reports spend excluding pre-paid expenditure. Pre-paid expenditure for an entire trip to SA Johannesburg 2 159 397 74.4% 7 462 16 114 ranges from R30 000 – R45 000 for overseas Tshwane 386 989 13.3% 4 110 1 591 tourists and is around R17 500 for African air Ekurhuleni 147 056 5.1% 1 382 203 tourists. Sedibeng 100 617 3.5% 6 794 684 West Rand 108 357 3.7% 3 738 405 Johannesburg attracts 75% of the tourist spend in the Province. However, this is based on Total 2 902 416 100.0% 18 997 where tourists stay and may over-represent the concentration of tourist spend in the city.

Foreign Air survey tourist spend

Foreign Air Trips Spends Destination Number of trips Share 2013 Average Spend R Total Spend Rm Johannesburg 1 083 146 79.0% 12 647 13 699 Tshwane 232 303 16.9% 11 434 2 656 Ekurhuleni 41 982 3.1% 11 506 483 Sedibeng 5 598 0.4% 10 500 59 West Rand 8 396 0.6% 10 867 91 Total 1 371 425 100.0% 16 988

GTA ANNUAL REPORT 13/14 80 GTA ANNUAL REPORT 13/14 81 GTA ANNUAL REPORT 13/14 82 GTA PERFORMANCE REPORT SECTION 06

GTA ANNUAL REPORT 13/14 83 EXECUTIVE SUMMARY OF THE GAUTENG TOURISM AUTHORITY Annual Performance Report for the 2013/14 Financial Year

It must be noted that since the operational borders that changed the provincial location The two feasibility studies on the Suikerbosrand merger of the Gauteng Tourism Authority, of the school) this output was finally achieved Nature Reserve as well as the Maropeng Cradle of Humankind World Heritage Site during September 2013 when the Acting HOD Repositioning Strategy were successfully and Dinokeng Projects during the 2011/12 of the Department of Economic Development undertaken as planned as part of the output financial year, planning processes have been signed the Transfer Protocol. Some of the to articulate and package opportunities in integrated. Accordingly, there is one integrated relevant GHS staff are now based at 124 Main provincial tourism strategic infrastructure Annual Performance Report. However, purely Street, where the agency is located. projects. These two attractions are critical for for audit purposes, 3 separate individual the enhancement of the Province’s tourism Annual Performance Plans are still being The development of the Operating Model infrastructure facilities which further contributes maintained pending the conclusion of the for the repositioning of the Ga-Rankuwa towards the destination’s sustainable global legal merger of these entities into one single Hotel School was duly completed with the competitiveness. tourism agency for Gauteng. Consequently, this cooperation of relevant sector stakeholders Annual Performance Report is based only on and was subsequently approved by the Board. The domestic and international terminal Visitor the outputs in the Gauteng Tourism Authority’s This Model is crucial for creating a sustainable Information Centres (VICs) continue to operate Annual Performance Plan. platform to develop cutting-edge sector skills as per the plan due to a sustained sound to curb the challenge of a mismatch between partnership with the Airports Company of South For a full picture on the performance of sector growth areas that create employment Africa (ACSA); which goes back many years. these 3 entities, it is advisable to read all 3 opportunities and skills availability. These VICs are crucial in enhancing visitor Annual Performance Reports in conjunction economy as they provide a hugely important with each other. This Executive Summary The target of 600 beneficiaries of our sector information distribution interface between covers only some of the outputs but not all of skills training programme was surpassed and the destination and its visitors. They serve them individually, as contained in the Annual 703 beneficiaries were trained due to a high as a channel to drive visitors to consume the Performance Report Table that follows. The industry demand, facilitated through sound experiences the destination has to offer during agency scored the overall performance public and private sector partnerships. This their stay in the Province. percentage of 93.3%; having achieved 28 of the programme, alongside initiative such as the 30 indicators. Ga-Rankuwa Hotel School, is crucial for the The target of an average of 60% satisfaction Province’s sustainable global competitiveness level of visitors utilising the VICs was exceeded After numerous delays in the transfer of the by ensuring that our visitors do return and/or to reach an annualised average of 77.5% as an Ga-Rankuwa Hotel School (GHS) from North have a higher propensity to recommend the indication that patrons using this service are West to Gauteng (following the demarcation of destination. generally satisfied with the quality of service

GTA ANNUAL REPORT 13/14 84 and the relevance of information they access Gauteng’s global competitiveness in this Only 2 of the total of 30 indicators were at these VICs. The rating provides insights on regard, the target of 10 signature events was not achieved, only registering an 80% some of the areas of continuous improvement attained through the hosting of annual events completion. There was a decision among the that seeks to ensure that visitors to the Province and exhibitions such as the Cradle Festival, key stakeholders to postpone the Gauteng enjoy every stage of their journey, which is one Mzansi Cycling, Coffee & Chocolate, Soweto Shopping Festival so that it coincides with the of our strategic objectives. Wine Festival, Lilizela Awards, Vaal Carnival, most appropriate season in the retail industry. Joy of Jazz, Moretele Tribute Concert, Sansui This output will definitely be achieved during Consistent with the objective of ensuring that Summer Cup and Future Champions. the 2014/15 financial year as all contractual visitors enjoy every stage of their journey, the obligations have now been concluded among agency has now introduced its own mechanism A target of Five platforms used to attract events key project partners. to measure overall visitor experience in the to Gauteng was exceeded by one when the Province to both reduce reliance on 3rd party Gauteng Convention Bureau participated The other unachieved output was the number data sources but also to increase its frequency in the following six initiatives: SACCI, China of bed nights spent in Gauteng by international of reporting on service quality issues. To this Roadshow, IMEX, EIBTM, ICCA and Meetings visitors, with only 20 million against the target end, two bi-annual surveys were undertaken Africa. of 29.4 million having been achieved. This according to the planned outputs for the period performance however, has a lot to do with the under review. In regard to destination performance outputs, period during which the study was conducted. 97% (4.27 million) was achieved in specific The Provincial Events Calendar was developed reference to the 4.4 million international visitors as part of the broader Provincial Events that were targeted to visit Gauteng during Strategy facilitated through cooperation by the period under review. Consistent with sector partners as well as the Department of performance of the previous years, the Province Sport, Arts, Culture and Recreation (SACR) to generate R35.5 billion in tourism revenue seek to ensure that the Province harnesses its against the set target of R33.4 billion. competitiveness in the growth area of eventing. While on the issue of events and optimising

GTAGTA ANNUALANNUAL REPREPORTORT 13/1413/14 8855 Destination Marketing Performance Indicator 2013/1Annual Actual Validated Output Variance / Deviation from Reason for Variance / Target against Planned Target Planned Output & Actual Comment on Deviation Output Number of initiatives to attract 6 (SACCI, China Roadshow, Target exceeded by 1 Effective cooperation with association meetings and exhibitions IMEX, EIBTM, ICCA & SA Tourism who coordinates 5 to be hosted in Gauteng by March Meetings Africa) international marketing projects 2014 and initiatives Number of signature Annual Events 10 (Cradle Festival, Mzansi Target achieved as per None supported by March 2014 Cycling, Coffee & Chocolate, planned outputs Soweto Wine Festival, Lilizela 10 Awards, Vaal Carnival, Joy of Jazz, Moretele Tribute Concert, Sansui Summer Cup & Future Champions) Percentage implementation of the 70% (service provider Target missed by 30% As per the agreement among inaugural Gauteng-wide Shopping 100% - Impact appointed and negotiations project partners, the timing of the Festival by March 2014 Assessment with participating partners Festival was changed to a new Finalised concluded) date that would coincide with a low retail season Number of campaigns and initiatives 8 (HOHO Facebook, GeePee Target achieved as per None implemented to drive online activity Facebook, WAYN microsite, planned outputs growth as advised by the UNWTO 8 Joy of Jazz, Joburg City Recession Recovery Roadmap by Festival, Pinterest Campaign, March 2014 Instagram & Shot Left ) No of international visitor arrivals to 4.27 Target 97% achieved with a * There is a combination of Gauteng [million] per annum 3% variance. Please refer to factors that include change in page 35 of the ‘GTA Supply & calculating methodology and 4.4 Demand Reseach Synthesis drastically market conditions, Report’ more specifically in terms of the African source markets

GTA ANNUAL REPORT 13/14 86 Destination Marketing Performance Indicator 2013/1Annual Actual Validated Output Variance / Deviation from Reason for Variance / Target against Planned Target Planned Output & Actual Comment on Deviation Output Rand value of revenue generated Target was exceeded by * The destination has benefitted, from international tourists in Gauteng R2.08 billion. Please see Page inter alia, from the declining per annum [R Billion] 38 - 39 of the 'GTA Supply & Rand value during 2013. A 33.42 35.5 Demand Research Synthesis similar phenomenon was Report' observed during the global recession in 2008 Rand value of revenue generated Target exceeded by a * The study applied a from domestic tourists per annum [R significant R16.9 billion. methodology similar to the GHS billion] 5 21.9 Please see Page 39 of the survey that Stats SA employs; 'GTA Supply & Demand which counts for all members of Research Synthesis Report' households that have travelled Number of domestic trips to Gauteng Target was exceeded by 4.5 and also includes 15 year-olds. per annum [million] million trips. Please see Page This methodology is different 5.8 10.3 36 of the 'Gauteng Tourism to the SA Tourism methodology Supply & Demand Research which surveys one adult in the Synthesis Report' household Number of bed nights spent per Target was missed by 9.4 * Based on the period that the annum by international visitors million bednights. Page 11 of survey was conducted in June [million] the 'Gauteng Tourism Supply & which is a low season, tourists 29.4 20 Demand Research Synthesis normally stay for a shorter period Report' which affects number of nights and therefore bednights Number of days spent in the Target achieved as per None Province by international tourists per 6 6 days (average) planned outputs annum Number of operational VICs in 2 (International and Domestic Target achieved as per None Gauteng per annum 2 Terminals at OR Tambo planned outputs International Airport)

GTA ANNUAL REPORT 13/14 87 Destination Management Performance Indicator 2013/1Annual Actual Validated Output Variance / Deviation Reason for Variance / Target against Planned Target from Planned Output & Comment on Deviation Actual Output Number of people trained for the 703 beneficiaries trained Target exceed by 103 High sector demand for targeted 600 beneficiaries hospitality sector/service excellence by skills training met through sound trained March 2014 sector partnerships Number of funding programmes for 1 (Through formal partnership Target achieved as per None 1st time grading of tourism products 1 with the Tourism Grading planned outputs implemented by March 2014 Council of S Africa) Number of skills development 3 programmes implemented Target achieved as per None programmes (including service planned outputs 3 excellence training) implemented by March 2014 Number of tourism learnership 3 (NDT Learnerships, Target exceeded by 2 Facilitated through effective programmes facilitated by March 2014 1 Professional Cookery and sector partnerships Accommodation Services) Number of tourism SMME support 3 (Indaba, E-marketing & Target achieved as per None programmes implemented by March 3 Business Skills) planned outputs 2014 Percentage transfer of Ga-Rankuwa 100% (Finalise the 100% of transfer of the Target achieved as per None Hotel school from North West to Transfer of the school Ga-Rankuwa Hotel School planned outputs Gauteng by March 2014 to Gauteng) achieved during Quarter 2 Percentage completion of development 100% (completion of 100% development of Target achieved as per None of the Operating Model for the Hotel development of the the Operating Model/ planned outputs School by March 2014 Operating model for Repositioning Strategy the Hotel School) completed Destination Management Performance Indicator 2013/1Annual Actual Validated Output Variance / Deviation from Reason for Variance / Comment on Target against Planned Target Planned Output & Actual Deviation Output Number of Provincial Tourism 1 Annual Awards Ceremony Target achieved as per None annual awards implemented 1 hosted during Quarter 2 planned outputs by March 2014 Number of operational VICs in 2 (International and Domestic Target achieved as per None Gauteng per annum 2 Terminals at OR Tambo planned outputs International Airport)

Regional Tourism Performance Indicator 2013/1Annual Actual Validated Output Variance / Deviation from Reason for Variance / Comment on Target against Planned Target Planned Output & Actual Deviation Output Number of Provincial Tourism 1 Annual Awards Ceremony Target achieved as per None annual awards implemented 1 hosted during Quarter 2 planned outputs by March 2014 Number of Gauteng Programme implemented Target achieved as per None Visitor Safety and Visitor Safety and Support through partnership with planned outputs Support Programme Programmes implemented by SAPS and other provincial Implemented March 2014 stakeholders

GTA ANNUAL REPORT 13/14 89 Research & Strategy Performance Indicator 2013/1Annual Actual Validated Output Variance / Deviation from Reason for Variance / Comment on Target against Planned Target Planned Output & Actual Deviation Output Number of annual Tourism 1 Baseline Tourism 1 Report produced Target achieved as per None Demand & Supply Research Demand & Supply planned outputs Reports by March 2014 Report Number of Gauteng events 2 (Standard Bank Joy of Jazz Target achieved as per None impact assessment reports by 2 and Moretele Tribute Concert) planned outputs March 2014 Number of Integrated 1 Integrated Database Target achieved as per None Databases for products and planned outputs 1 services in the province by March 2014 Percentage rating of customer Annualised average of 77.5% Target exceeded by 17.5% The high average scores during the satisfaction at Visitor course of the year bear testimony to Average of 60% Information Centres by March dedicated quality service provided by 2014 VIC service team Number of completed Target achieved as per None feasibility studies to articulate 2 (Maropeng Repositioning planned outputs 2 feasibility studies provincial tourism strategic Strategy & Suikerbosrand completed infrastructure projects per Feasibility Study) annum Number of Annual Provincial 1 Report produced during 2nd Target achieved as per None Tourism Performance Reports Quarter planned outputs covering key domestic and 1 international variables by March 2014 Number of Clean Audits in 1 Unqualified Audit 1 Unqualified Audit Report Target achieved as per None terms of the Auditor-General's Report planned outputs report per annum

GTA ANNUAL REPORT 13/14 90 Number of studies monitoring Target achieved as per None visitor satisfaction and planned outputs perceptions of quality 22 experiences in Gauteng by March 2014 Number of Annual Provincial 1 Report produced during 2nd Target achieved as per None Tourism Performance Reports Quarter planned outputs covering key domestic and 1 international variables by March 2014 Number of Clean Audits in 1 Unqualified Audit 1 Unqualified Audit Report Target achieved as per None terms of the Auditor-General's Report planned outputs report per annum NB *Due to a delayed release of the SA Tourism’s Annual Performance Report, a Provincial study was used to account for Gauteng destination performance. There will be a variation between the SA Tourism figures and the Gauteng Tourism Supply & Demand Research Synthesis Report figures due to methodological differences. Please further notice that the targets for annual performance was based on performance trends in SA Tourism reports.

2013/14 GTA Annual Performance Report Performance Dashboard

Total No. of Indicators Indicators Achieved Indicators Not Achieved % Achievement 30 27 3 90%

GTA ANNUAL REPORT 13/14 91 GTA ANNUAL REPORT 13/14 92 GTA ANNUAL REPORT 13/14 93 FINANCIALS SECTION 07

GTA ANNUAL REPORT 13/14 94 REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON GAUTENG TOURISM AUTHORITY

REPORT ON THE FINANCIAL preparation of financial statements that are audit procedures that are appropriate in the STATEMENTS free from material misstatement, whether due circumstances, but not for the purpose of to fraud or error. expressing an opinion on the effectiveness Introduction of the entity’s internal control. An audit also Auditor-General’s responsibility includes evaluating the appropriateness 1. I have audited the financial statements of accounting policies used and the of the Gauteng Tourism Authority set out on 3. My responsibility is to express an opinion reasonableness of accounting estimates pages to 105 to 144 which comprise the on these financial statements based on my made by management, as well as evaluating statement of financial position as at 31 March audit. I conducted my audit in accordance the overall presentation of the financial 2014, the statement of financial performance, with the Public Audit Act of South Africa, 2004 statements. statement of changes in net assets and the (Act No. 25 of 2004) (PAA), the general notice cash flow statement for the year then ended, issued in terms thereof and International 5. I believe that the audit evidence I have as well as the Standards on Auditing. Those standards obtained is sufficient and appropriate to require that I comply with ethical requirements provide a basis for my audit opinion. notes, comprising a summary of significant and plan and perform the audit to obtain accounting policies and other explanatory reasonable assurance about whether the Opinion information. financial statements are free from material misstatement. 6. In my opinion, the financial statements Accounting Authority’s responsibility for present fairly, in all material respects, the the financial statements 4. An audit involves performing procedures to financial position of the Gauteng Tourism obtain audit evidence about the amounts and Authority as at 31 March 2014, and its 2. The board of directors which constitutes disclosures in the financial statements. The financial performance and cash flows for the accounting authority is responsible for procedures selected depend on the auditor’s the year then ended in accordance with the the preparation and fair presentation of these judgement, including the assessment of the SA Standards of GRAP prescribed by the financial statements in accordance with the risks of material misstatement of the financial National Treasury and the requirements of the Generally Recognised Accounting Practice statements, whether due to fraud or error. PFMA. (GRAP) and the requirements of the Public Finance Management Act of South Africa, In making those risk assessments, the auditor Additional Matter 1999 (Act No. 1 of 1999) (PFMA) and for such considers internal control relevant to the internal control as the accounting authority entity’s preparation and fair presentation of 7. Attention to the matter below. My opinion is determines is necessary to enable the the financial statements in order to design not modified in respect of this matter.

GTA ANNUAL REPORT 13/14 95 Unaudited supplementary schedules usefulness and reliability on pages 86 to 91 for information on the achievement of the planned targets for the 8. The supplementary information set out 12. I evaluated the usefulness of the year. on pages 145 to 152 do not form part of the reported performance information to financial statements and is presented as determine whether it was presented in Compliance with laws and regulations additional information. I have not audited accordance with the National Treasury’s these schedules and, accordingly, I do not annual reporting principles and whether the 17. I performed procedures to obtain express an opinion thereon. reported performance was consistent with evidence that the entity has complied with the planned objectives. I further performed applicable laws and regulations regarding REPORT ON OTHER LEGAL AND tests to determine whether indicators and financial matters, financial management and REGULATORY REQUIREMENTS targets were well defined, verifiable, specific, other related matters. measurable, time bound and relevant, 9. In accordance with the PAA and the as required by the National Treasury’s 18. I did not identify any instances of material General Notice issued in terms thereof, Framework for managing programme non-compliance with specific matters in key I report the following findings relevant performance information (FMPPI). legislation, as set out in the general notice to performance against predetermined issued in terms of the PAA. objectives, compliance with laws and 13. I assessed the reliability of the reported regulations and internal control, but not for performance information to determine Internal control the purpose of expressing an opinion. whether it was valid, accurate and complete. 19. I considered internal control relevant to Predetermined objectives 14. I did not raise any material findings on my audit of the financial statements, annual the usefulness and reliability of the reported performance report and compliance with 10. I performed procedures to obtain performance information for the selected legislation. evidence about the usefulness and objectives. reliability of the reported performance 20. I did not identify any significant information for the selected programmes Additional matter deficiencies in internal control. presented in the annual performance report of the entity for the year ended 31 March 15. Although I raised no material findings on 2014 the usefulness and reliability of the reported • Destination Marketing 86 - 87 performance information for the selected • Destination Management 88 - 89 objectives, I draw attention to the following Johannesburg • Regional Tourism 89 matter: 31 July 2014 • Research and Strategy 90 -91 Achievement of planned targets 11. I evaluated the reported performance information against the overall criteria of 16. Refer to the annual performance report

GTA ANNUAL REPORT 13/14 96 GAUTENG TOURISM AUTHORITY

ADMINISTRATIVE INFORMATION

31 March 2014 AUDITORS Auditor-General South Africa 61 Central Street Houghton Board Members 2198

Meetings Meetings INTERNAL AUDITOR Messrs Phandahanu Forensics (Pty) Ltd. PO Box 11666 S Mthembu – Chairperson 7 Vorna Valley D Moshapalo 5 1686 L Makgamathe 5 CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Mesdames Dawn Robertson Yaseen Asmal N Majokweni – Deputy 5 Chairperson POSTAL ADDRESS REGISTERED OFFICE PO Box 155 124 Main Street M Molotsi 5 Newtown Johannesburg Johannesburg 2113 2001 Audit Committee Meetings Meetings TELEPHONE BANKERS Messrs +27 11 085-2500 ABSA Bank S Mthembu 6 First National Bank Mesdames M Molotsi (Chairperson) 6 E-MAIL WEBSITE B Mbolekwa 3 [email protected] www.visitgauteng.net

GTA ANNUAL REPORT 13/14 97 GAUTENG TOURISM AUTHORITY STATEMENT OF RESPONSIBILITY BY THE MEMBERS OF THE BOARD

31 MARCH 2014 The Board Members are responsible for monitoring The Board is satisfied that the system of internal accounting policies as set out in the notes to the preparation and the integrity of the financial control is adequate so that the financial records these financial statements and are consistently statements and related information included in the and system may be relied upon for preparing the applied and supported by reasonable and prudent annual report. financial statements and maintaining accountability judgements and estimates within the requirements of assets and liabilities.The Board applies a system of the Public Finance Management Act, 1999 (Act INTERNAL AND ACCOUNTING CONTROLS of declaration of interest. No. 1 of 1999), as amended.

In order for the Board to discharge its AUDIT COMMITTEE The financial statements have been prepared on the responsibilities, management has developed and going concern basis of accrual as the Board continues to maintain an effective and efficient The Audit Committee of the Board consists of three system of internal control through its policies as per non-executive Board members and meets at least Members have every reason to believe that the Item 3.1of the Report of the Board. two times a year. The committee ensures effective Board has adequate resources in place to continue communication between the Board, Internal Audit in operation for the year ahead.The Board believes The system of internal controls is designed to and the Auditor-General. The Auditor-General and that the annual financial statements fairly present, provide reasonable assurance as to the integrity the Internal Auditor have free access to the Audit in all material respects, the financial position of the and reliability of the financial records of the Authority Committee. Board as at 31 March 2014 and the results of its and to safeguard and maintain accountability of the operations and cash flows for the year then ended. Authority’s assets. The Audit Committee operates within the framework of formal terms of reference approved by the Board The Audit Committee and the Board regularly review and has discharged its responsibilities for the year, the Risk Management Policy and system of internal in compliance with its terms of reference approved control and these are revised as legislative and by the Board. The Chairperson is Ms M Molotsi. operational conditions change. Mr S Mthembu ANNUAL FINANCIAL STATEMENT CHAIRPERSON OF THE BOARD The system of internal control includes a Signed: July 2014 comprehensive budgeting system operating within The annual financial statements are prepared in strict deadlines and monitored by Management, the accordance with the applicable Statements of Board, the Audit Committee and the Internal Auditor. Generally Recognised Accounting Practice as As part of the system of internal control, the Board’s approved directives from the Accountant internal audit function conducts the internal audit in General and incorporate responsible disclosure in accordance with the standards set by the Institute of line with the accounting philosophy of the Authority. Internal Auditors and the Auditor-General. The financial statements are based on appropriate

GTA ANNUAL REPORT 13/14 98 GAUTENG TOURISM AUTHORITY REPORT OF THE BOARD for the year ended 31 March 2014

1. INTRODUCTION

The Gauteng Tourism Authority (GTA) was established as an Authority on 1 April 2000 in terms of the Gauteng Tourism Act of 1999 and succeeded the Gauteng Tourism Agency, a Section 21 Company, as a going concern. The Authority received tax clearance from SARS and confirmation of deregistration from the Registrar of Companies during the 2001/2 financial year. The Authority was deregistered for VAT on 1 October 2005 due to the fact that National Treasury and SARS considered section 3(c) entities as VAT exempt.

The Gauteng Tourism Act No 10 of 2001 was promulgated on 5 February 2002 with the Chief Executive Officer as the Accounting Authority in terms of section 49 2(b) of the Public Finance Management Act No 1 of 1999.

On 7 June 2006, Act No.3 of 2006 came into effect, resulting in the establishment of a Board which became operational as from 1 February 2007. The Board then became the Accounting Authority of GTA.

The Department of Economic Development MEC issued an instruction that the Gauteng Tourism Authority (GTA), The Cradle of Humankind (COHWHS) and The Dinokeng Trading Entity must integrate at a functional and operating level to enable the optimal achievement of the provincial tourism mandate as from 1 April 2012. This instruction is in line with the broader DED Agency reconfiguration process that may have an impact on the current status and form of the combined entity.

2. GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS

The financial statements reflect the financial position of the Authority as at 31 March 2014 and the results of its operations for the year then ended are summarised as follows:

GTA ANNUAL REPORT 13/14 99 GAUTENG TOURISM AUTHORITY Actual Budget Deviation REPORT OF THE BOARD R’000 R’000 % for the year ended 31 March 2014 - continued

Income: Provincial Grant 62,016 62,016 0.0%

Registration Fees 100 128 -21.9%

Interest received 623 450 38.4%

Other 2 155 -94.9%

Cradle of Humankind Contribution 300 300 0.0%

Total revenue 63,041 63,049 0.0%

Expenditure: Destination Management 7,703 7,849 -1.9%

Destination Marketing 7,506 7,539 -0.4%

Corporate Communications 8,471 8,829 -4.1%

Corporate Services incl CEO 18,162 18,859 -3.7%

Finance 4,596 5,619 -18.2%

Research and Strategy 4,362 4,542 -4.0%

Regional Tourism 9,023 9,212 -2.1%

Sub Total: Operational cost 59,823 62,449 -4.2%

Capital expenditure 420 600 -30.0%

Total expenditure 60,243 63,049 -4.5%

Surplus/(Deficit) for the year including Capital Expenditure 2,799 Net Surplus/(Deficit) for the year excluding Capital Expenditure 3,219

GTA ANNUAL REPORT 13/14 100 GAUTENG TOURISM ATHOURITY REPORT OF THE BOARD • Supply-Chain Management Policy • Risk Management Policy for the year ended 31 March 2014 • Investment Policy; • Receivables Policy; The total expenditure of R59,822,375 is R2,626,625 less than budgeted • Fraud Prevention Plan; and indicates an underspend of 4%. The Authority hereby indicates that • Asset Management Policy; and it has the capacity to spend the allocation from the Provincial Department • Materiality Framework Policy. of Economic Development, amounting to R62,016,000. The net surplus for the year, excluding Capital Expenditure of R420, 225 is R3,219,212.93. 3.2 Governance and Management The Authority will in terms of the approved Annual Performance Plan and Budget and in accordance with Treasury Regulations Section 53(3) of the Until 5 February 2002, the Authority was governed by a Board, appointed PFMA, request approval to retain the surplus for the 2013/14 financial by the MEC for Finance and Economic Development. On 5 February year as this will ensure that all the commitments as at Statement of 2002 the CEO became the Accounting Authority with the MEC, being the Financial Position date can be dealt with. Executive Authority advised by an Advisory Committee. The Authority also has an Audit Committee and a Procurement Committee. Staff was 3. Business Activities appointed according to the organogram.

3.1. Legislation As from 1 February 2007, the responsibilities of the Accounting Authority were transferred to the new Board who became fully functional in the The Gauteng Tourism Authority was established in terms of the Gauteng 2007/08 financial year. At the first Board Meeting held on 22 May 2007, a Tourism Act No 10 of 2001 as from 5 February 2002. Prior to this, the resolution was passed that each Board Member must sign a declaration Gauteng Tourism Act of 1999 was applicable. The result of this process of interest at every future board meeting. is that policies, procedures and the delegation of powers were revised in order to provide for the transfer of the Accounting Authority from the Board to the Chief Executive Officer (CEO).

Subsequently, the Gauteng Tourism Act No 3 of 2006 came into effect on 7 June 2006 stipulating that a Board of Directors take over from the CEO the responsibilities of the Accounting Authority. The Board was appointed on 1 February 2007. The GTA is a Schedule 3(c) Provincial Public Entity in terms of the PFMA.

The Public Finance Management Act No 1 of 1999 is implemented resulting in the maintaining of and complying to the following required documents:

101 GAUTENG TOURISM AUTHORITY Plan and Annual Performance Plan accordingly. in conjunction with the Internal Auditor and the REPORT OF THE BOARD The Gauteng Tourism Development Strategy Audit Committee. was approved by the Gauteng Executive for the year ended 31 March 2014 Council during November 2007 and has been The internal controls include a risk-based affected in the 2008/09 financial year. system of internal accounting and The Board: administrative controls designed to provide • Retains full control over the entity, its plans These documents guide the Authority reasonable assurance that assets are and strategy; and throughout the decision making process in safeguarded and that transactions are executed • Acknowledges its responsibilities as to order to meet the Authority’s Vision and Mission and recorded in accordance with generally strategy, compliance with internal policies, namely: accepted business practices and the Authority’s external laws and regulations, effective policies and procedures. risk management and performance Vision: To be the strategic leader of tourism in measurement, transparency and effective Gauteng. These controls are implemented by trained, communication both internally and externally skilled personnel with an appropriate by the entity. Mission: To develop, promote, co-ordinate and segregation of duties and monitored by facilitate responsible and sustainable tourism management and include a comprehensive Compliance to the policies, procedures and in Gauteng, to create a world class destination budgeting and reporting system operating applicable legislation, are strictly monitored. In that attracts business visitors and all other within strict deadlines and an appropriate order to improve on internal controls, various tourists to the Province, benefits our people and control framework. other policies and procedures were also put in contributes to economic growth. place. An Audit Committee is functional. The The financial statements are prepared in Audit Committee evaluated the effectiveness of 3.4 CEO’s Responsibility accordance with applicable accounting the internal audit function provided by the firm standards as approved and incorporate Phandahanu Forensics (Pty) Ltd on an ongoing The CEO is responsible for monitoring the responsible disclosure in line with the basis with recommendations reflected in the preparation and the integrity of the financial accounting philosophy of the Authority. The minutes of the Audit Committee meetings. statements and related information included in financial statements are based on appropriate this report. accounting policies consistently applied 3.3 Planning and Mandate and supported by reasonable and prudent Management has developed and continues judgements and estimates. The Authority follows a strategic approach to maintain a sound accounting system and resulting in a Strategic Plan, three year Business internal controls. During the 2009/10 financial Plan and MTEF Budget and is in compliance year, internal controls, policies and procedures with the requirements of the PFMA. This is were adjusted to incorporate the Board in terms done in accordance with the Annual Planning of the new Delegation of Authority as approved Programme. The Strategic Plan is revised on an by the Board. The Board and CEO reviews the annual basis, resulting in revising the Business operations of the Authority on a regular basis

GTA ANNUAL REPORT 13/14 102 GAUTENG TOURISM AUTHORITY REPORT OF THE BOARD for the year ended 31 March 2014

The financial statements are prepared in accordance with applicable accounting standards as approved and incorporate responsible disclosure in line with the accounting philosophy of the Authority. The financial statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

During this financial year the Authority’s Strategic Plan, Business Plan and Annual Performance Plan were revised and subsequently implemented. An effective system of monitoring and evaluation was introduced to ensure ongoing progress towards reaching the targets set out in the above-mentioned plans.

4. Tourism Development Fund

The total amount spent on projects of a developmental nature was R21,554,829 which was 35% of the DED grant of R62,016,000 received.

The development fund expenditure per business unit was as follows: R Destination Management 7,259,722 Corporate Communications 2,519,315 Destination Marketing 3,313,400 Research and ICT 1,743,592 Regional Tourism 3,650,293 Corporate Services incl CEO 1,687,962 Finance 1,380,545

TOTAL R21,554,829

5. Approval of Financial Statements

The financial statements for the Gauteng Tourism Authority for the financial year ended 31 March 2014 are hereby approved.

Mr S Mthembu Chairman of the Board Signed: July 2014 GAUTENG TOURISM AUTHORITY REPORT OF THE AUDIT COMMITTEE for the year ended 31 March 2014 Internal Audit

We are pleased to present our report for the financial year ended 31 March The internal audit function is outsourced Phandahanu Forensics (Pty) Ltd. 2014. Audits were performed in accordance with an approved Risk Management Plan and Three Year Rolling Audit Plan. All the reports issued were discussed Audit Committee Members and Attendance between the firm and the relevant business unit before finalisation. It is the CEO’s responsibility to ensure that recommendations are implemented. The Audit Committee consists of the members listed hereunder and met six times during the The Quality of Management and Monthly / Quarterly Reports Submitted year under review. in Terms of the Act

NAME OF MEMBER NUMBER OF MEETINGS The Committee discusses the content and quality of monthly and quarterly ATTENDED reports prepared and issued by the CEO.

Ms M Molotsi - Chairperson 6 The Chief Financial Officer Mr S Mthembu 6 Ms B Mbolekwa 3 Mr Yaseen Asmal was appointed as the Authority’s Chief Financial Officer as from 1 September 2012. Audit Committee Responsibility Evaluation of Financial Statements The Audit Committee’s responsibilities arise from section 51(1)(a) if the Public Finance Management Act (“the Act”) and Treasury Regulations 27.1.8 and The Audit Committee has reviewed and discussed the audited annual financial 27.1.10. The Audit Committee also adopted formal terms of reference as its statements, the Auditor-General’s management letter, management responses audit committee charter and regulates its affairs in compliance with this charter. and the Auditor-General’s final report for the 2013/14 financial year.

The Effectiveness of Internal Control

The system of internal control is effective according to the various reports of the Internal Auditors, the Audit Report on the Annual Financial Statements and management letter of the Auditor-General. All reports of Auditors are discussed Ms M Molotsi at the committee meetings and applicable resolutions are taken. Chairperson of the Audit Committee Date: July 2014 GAUTENG TOURISM AUTHORITY

GTA ANNUAL REPORT 13/14 104 GAUTENG TOURISM AUTHORITY Notes 2013/14 2012/13 STATEMENT OF FINANCIAL POSITION Actual Actual R'000 R'000 as at 31 March 2014 ASSETS Current assets 16,718 9,277

Cash and cash equivalents 11.5 16,275 8,902 Trade and other receivables from exchange transactions Deposits 3 304 304 Prepayments 4 139 71

Non-current assets 669 407 Property, plant and equipment 2.1 669 407 Intangible assets 2.2 - -

TOTAL ASSETS 17,387 9,684

LIABILITIES

Current liabilities 5 7,934 3,450

Trade and other payables from exchange transactions 3,434 3,450

Conditional Grants 4,500 -

Non-current liabilities - -

TOTAL LIABILITIES 7,934 3,450

Capital and Reserves Retained Income 9,452 6,233 Retained Income/(Accumulated Loss) 6,233 6,233 Net profit/(Loss) for the period 3,219 -

TOTAL NET ASSETS AND LIABILITIES 17,387 9,684

105 GAUTENG TOURISM AUTHORITY STATEMENT OF FINANCIAL PERFORMANCE for the year ending 31 March 2014 2013/14 2013/14 2013/14 2012/13 2012/13 2012/13 Notes Budget Actual Variance Budget Actual Variance R’000 R’000 R’000 R’000 R’000 R’000 REVENUE Non-exchange transactions Government grant and subsidies 6 62,016 62,016 - 52,045 52,045 -

Exchange transactions

Interest earned – external investment 6.2 450 623 173 700 432 (268) Other income 6.1 583 400 (183) 1,098 1,093 (5) TOTAL REVENUE 63,049 63,039 (10) 53,843 53,570 (273)

EXPENDITURE Employee related costs (incl. Remuneration of Executive Committee) 7.1 35,260 33,614 (1,646) 31,620 30,173 (1,447) Depreciation 7.2 167 153 (14) 454 425 (29) Amoritisation 7.3 12 - (12) 46 8 (38) Repairs and maintenance 7.4 834 822 (12) 1,407 1,408 1 General expenses 7.5 26,157 25,234 (923) 19,769 18,395 (1,373) TOTAL EXPENSES 62,429 59,822 (2,607) 53,295 50,409 (2,886)

OTHER GAINS / LOSSES (Gains)/Loss on disposal of assets 7.6 20 (2) (18) 348 349 1

SURPLUS/(DEFICIT) FROM OPERATIONS TB 600 3,219 2,619 200 2,811 2,611 Surplus/(Deficit) for the period 600 3,219 2,619 200 2,811 2,611

GTA ANNUAL REPORT 13/14 106 GAUTENG TOURISM AUTHORITY STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2014

Notes (Accumulated) Total Surplus/(Deficit R’000 R’000

Balance at 01 April 2012 3,422 - 3,422

Balance brought forward 3,422 - 3,422 Surplus/(Deficit) for the year 2,811 - 2,811

Balance at 31 March 2013 TB 6,233 - 6,233

Balance at 01 April 2013 6,233 - 6,233

Balance brought forward 6,233 - 6,233 Surplus/(Deficit) for the year TB 3,219 - 3,218

Balance at 31 March 2014 9,452 - 9,452

GTA ANNUAL REPORT 13/14 107 GAUTENG TOURISM AUTHORITY STATEMENT OF CASH FLOWS for the year ended 31 March 2014 Notes 2013/14 2012/13 R’000 R’000

NET CASH FLOW FROM OPERATING ACTIVITIES 7,785 (561) Cash receipts from customers 66,916 57,334 Cash paid to suppliers and employees (59,754) (58,326) Cash generated/utilised from operations 11.1 7,162 (992) Interest received 6.2 623 432

CASH FLOW FROM INVESTING ACTIVITIES (412) (197) Addition to property, plant and equipment 11.2 (420) (197) Proceeds from disposal of assets 8-

CASH FLOW FROM FINANCING ACTIVITIES --

Increase/(Decrease) in general reserve fund --

Net cash flow from financing activities --

Net Increase/(Decrease) in cash and cash equivalents 7,373 (757)

Cash and cash equivalents at beginning of year 11.4 8,902 9,659

Cash and cash equivalents at end of year 11.5 16,275 8,902

GTA ANNUAL REPORT 13/14 108 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

1. ACCOUNTING POLICIES

1.1 Basis of Preparation

The annual financial statements have been prepared on the accrual basis in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP) including any interpretations and directivesof such statements issued by the Accounting Standards Board and in accordance with Section 91(1) of the Public Finance Management Act, (Act No 1 of 1999)

1.2 Presentation Currency

The financial statements are presented in South African Rand which is the Authority’s functional currency. See Notes to the Financial Statements 15.

1.3 Going Concern

These financial statements were prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

1.4 Comparative Information 1.4.1 Current year Comparatives (Budget)

Budget information in accordance with GRAP 1 and 24, has been provided in a separate disclosure note to these annual financial statements. Where necessary comparative figures are adjusted to conform to changes in presentation in the current year.

1.4.2 Prior year Comparatives

When the presentation or classification of items in the financial statements is amended, prior year comparative amounts are also reclassified and restated, unless such comparative reclassification and / or restatement is not required by a Standard of GRAP. The nature and reason for such reclassifications and restatements are also disclosed.

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1. ACCOUNTING POLICIES - continued

Where material accounting errors, which relate to prior periods, have been identified in the current year, the correction is made retrospectively as far as is practicable and the prior period comparatives are restated accordingly. Where there has been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable and the prior period comparatives are restated accordingly. The presentation and classification of items in the current year is consistent with prior periods.

1.5 Standards, Amendments to Standards and Interpretations issued but not yet effective.

The following Standards of GRAP and / or amendments thereto have been issued by the Accounting Standards Board, but will only become effective in future periods or have not been given an effective date by the Minister of Finance. The entity has not early-adopted any of these new Standards or amendments thereto, but has referred to them for guidance in the development of accounting policies in accordance with GRAP 3 as read with Directive 5

Standard Effective Date Applicable GRAP 18 – Segment Reporting No effective date N/A GRAP 20 – Related Party Disclosures No effective date Yes GRAP 25 – Employee Benefits No effective date Yes GRAP 105 – Transfers of Functions between Entities under Common Control No effective date Yes GRAP 106 – Transfer of Functions between Entities not under Common Control No effective date No GRAP 107 – Mergers No effective date Yes

1.6 Significant Judgements and Estimates

The use of judgment, estimates and assumptions is inherent to the process of preparing financialstatements. These judgements, estimates and assumptions affect the amounts presented in the financial statements. Uncertainties about these estimates and assumptions could result in outcomes that require a material adjustment to the carrying amount of the relevant asset or liability in future periods.

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1. ACCOUNTING POLICIES - continued

1.6.1 Judgements

In the process of applying these accounting policies, management makes judgements that may have a significant effect on the amounts recognised in the financial statements. When this occurs, disclosure is made in the Notes to the Financial Statements.

1.6.2 Estimates

Estimates are informed by historical experience, information currently available to management, assumptions, and other factors that are believed to be reasonable under the circumstances. These estimates are reviewed on a regular basis. Changes in estimates that are not due to errors are processed in the period of the review and applied prospectively. In the process of applying the entity’s accounting policies the following estimates, were made:

1.6.3 Depreciation and amortisation

Depreciation recognised on property, plant and equipment are determined with reference to the useful lives and residual values of the underlying items. The useful lives and residual values of assets are based on management’s estimation of the asset’s condition, expected condition at the end of the period of use, its curren t use, expected future use and the entity’s expectations about the availability of finance to replace the asset at the end of its useful life.

In evaluating the how the condition and use of the asset informs the useful life and residual value management considers the impact of technology and minimum service requirements of the assets.

1.7 Financial Instruments

Initial Recognistion, Intitial and Subsequent Measurement and Derecognition Financial assets and financial liabilities are initially recognised in the Authority’s Statement of Financial Position when the Authority becomes a party to the contractual provisions of the instrument.

Upon initial recognition the Authority classifies financial instruments as financial liabilities, financial assets or residual interests in conformity with the substance of the contractual arrangement and to the extent that an instrument satisfies the definitions of a financial liability, a financial asset or a

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1. ACCOUNTING POLICIES - continued residual interest. The Authority’s financial instruments consist of cash and bank balances, trade and other receivables and trade and other payables and are measured at cost at initial recognition. Refer to Note 19 of the Notes to the Financial Statements.

1.7.1 Derecognition

A financial asset is derecognised at trade date, when: The cash flows from the asset expire, are settled or waived; a) Significant risks and rewards are transferred to another party; or b) Despite having retained significant risks and rewards, the entity has transferred control of the asset to another entity. A financial liability is derecognised when the obligation is extinguished. Where the terms of an existing financial liability are modified, it is also treated as the extinguishment of an existing liability and the recognition of a new liability.

1.7.2 Gains and losses

For financial assets and liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or liability is derecognised or impaired.

1.7.3 Offsetting

The GTA does not offset financial assets or liabilities, except where offsetting is either required or permitted by a Standard of GRAP.

1.7.4 Impairments

All financial assets measured at amortised cost, or cost, are subject to an impairment review. The entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

1.8 Specific Financial Instruments 1.8.1 Investments at amortised cost

Investments which include short-term deposits invested with the Reserve Bank and the Authority’s appointed bankers are categorised as financial

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1. ACCOUNTING POLICIES - continued instruments at amortised cost and are subsequently measured at amortised cost.

1.8.2 Cash and cash equivalent

Cash and cash equivalents for purposes of the Cash Flow Statement and Statement of Financial Position comprise cash at banks and cash on hand. Cash equivalents are held with the Reserve Bank and the Authority’s appointed banker. Cash and cash equivalents are subsequently measured at amortised cost.

1.8.3 Trade and other receivables

Trade and other receivables are initially recognised at cost and subsequently measured at amortised cost. All trade and other receivables are assessed at least annually for possible impairment.

1.8.4 Trade and other payables

Trade and other payables are initially measured at cost and subsequently measured at amortised cost.

1.9 Property, Plant and Equipment

1.9.1 Initial recognition and measurement

Property, plant and equipment are tangible non-current assets that are expected to be used during more than one year. These items are initially recognised at cost in the Statement of Financial Position when it is probable that future economic benefits or service potential associated with the item will flow to the Authority and the cost of the asset can be measured reliably. The Authority does not componentise any asset.

1.9.2 Depreciation

Depreciation commences when the item is available for use and is calculated on the straight line method to write off the cost of each asset over its estimated useful life as follows: Furniture and Fittings - 7.5% - 15% - Per Annum Computer equipment - 16.5 - 33% - Per Annum Equipment - 12.5% -

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1. ACCOUNTING POLICIES - continued

20% - Per Annum Leasehold improvements 10% - Per Annum

1.9.3 Subsequent measurement

Subsequent to initial recognition, items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. All assets are reassessed annually to determine its useful life. Assets received as donation are carried at cost as per the donator invoice less accumulated depreciation.

1.9.4 Subsequent expenditure

Subsequent cost on capitalised tangible assets is capitalised only when it increases the future economic benefit in the specific asset. All other expenditure is recognised in the Statement of Financial Performance as an expense when incurred. The effect on the current year is to decrease the carrying amount of property, plant and equipment by the annual depreciation charge .

Depreciation methods, useful lives and residual values are reassessed annually before 31 March based on physical inspection of each asset by the IT and Office Manager. De-recognition on disposal is executed in terms of the Authority’s Asset Management Policy whereby profits or losses on disposal of property, plant and equipment are determined by comparing the proceeds from disposal with its carrying amount and are accounted for as such in the Statement of Financial Performance.

1.9.5 Impairments

The Authority tests for impairment where there is an indication that an asset may be impaired. Anassessment of whether there is an indication of possible impairment is done at each reporting date. Wherethe carrying amount of an item of property, plant and equipment is greater than the estimated recoverable amount (or recoverable service amount), it is written down immediately to its recoverable amount (or recoverable service amount) and an impairment loss is charged to the Statement of Financial Performance.

1.9.6 Derecognition

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service

GTA ANNUAL REPORT 13/14 114 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

1. ACCOUNTING POLICIES - continued potential expected from the use of the asset. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the proceeds and the carrying value and is recognised in the Statement of Financial Performance.

1.10 Intangible Assets

Initial recognition and measurement

Intangible assets comprising of computer software purchased are identifiable non-monetary assets without physical substance and are initially recognised at cost in the Statement of Financial Position only when it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably. Expenditure on research is recognised as an expense when incurred.

1.10.1 Amortisation

Amortisation commences when the asset is available for use and is calculated on the straight line method to write off the cost of each asset over its estimated useful life as follows: Computer Software 50% Per Annum

1.10.2 Subsequent measurement

Subsequent to initial recognition, intangible assets are measured at cost less accumulated amortisation and impairment losses. All intangible assets are reassessed annually to determine its useful life.

1.10.3 Impairments

The Authority tests for impairment where there is an indication that an asset may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. Where the carrying amount of an item of of an intangible asset is greater than the estimated recoverable amount (or recoverable service amount), it is written down immediately to its recoverable amount (or recoverable service amount) and an impairment loss is charged to the Statement of Financial Performance.

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1. ACCOUNTING POLICIES - continued

1.10.4 Derecognition

Intangible assets are derecognised when the asset is disposed of or when there are no further economic benefits or service potential exected from the use of the asset. The gain or loss arising on the disposal or retirement of an item of an intangible asset is determined as the difference between the proceeds and the carrying value and is recognised in the Statement of Financial Performance.

1.11 Employee benefits

1.11.1 Short term employee benefits

Short term employee benefits encompasses all those benefits that become payable in the short term, i.e. within a financial year or within 12 months after the financial year. Therefore, short term employee benefits include remuneration and bonuses.

Short term employee benefits are recognised in the Statement of Financial Performance as services are rendered, except for non-accumulating benefits, which are recognised when the specific event occurs. These short term employee benefits are measured at their undiscounted costs in the period the employee renders the related service or the specific event occurs.

1.11.2 Defined contribution plans

The Authority operates a defined contribution provident fund for all its permanent employees, the assets of which are held in a separate trustee administered fund, which is subject to the Pension Fund Act, 1956 as amended.

Contributions made towards the fund are recognised as an expense in the Statement of Financial Performance in the period that such contributions become payable. This contribution expense is measured at the undiscounted amount of the contribution paid or payable to the fund. A liability is recognised to the extent that any of the contributions have not yet been paid.

1.12 Leasing

Operating leases

GTA ANNUAL REPORT 13/14 116 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

1. ACCOUNTING POLICIES - continued

1.12.1 Recognition

Assets subject to operating leases, i.e. those leases where substantially all of the risks and rewards of ownership are not transferred to the lessee through the lease, are not recognised in the Statement of Financial Position. The operating lease expense is recognised over the course of the lease arrangement.

Lease payments by the Authority as the lessee under an operating lease are recognised as expenses in the Statement of Financial Performance on a straight line basis over the lease period.

1.12.2 Measurement

The lease expense recognised for operating leases is charged to the Statement of Financial Performance on a straight-line basis over the term of the relevant lease. To the extent that the straight-lined lease payments differ from the actual lease payments the difference is recognised in the Statement of Financial Position as either lease payments in advance (operating lease asset) or lease payments payable (operating lease liability) as the case may be.

This resulting asset and / or liability is measured as the undiscounted difference between the straight-line lease payments and the contractual lease payments.

1.13 Revenue

1.13.1 Revenue from Exchange Transactions

Revenue from exchange transactions refers to revenue that accrues to the entity directly in return for services rendered, the value of which approximates the consideration received or receivable, excluding indirect taxes, rebates and discounts.

GTA ANNUAL REPORT 13/14 117 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

1. ACCOUNTING POLICIES - continued

1.13.2 Recognition and Measurement

Revenue from exchange transactions is only recognised once all of the following criteria have been satisfied: a)The entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; b) The amount of revenue can be measured reliably; and c) It is probable that the economic benefits or service potential associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue arising out of situations where the entity acts as an agent on behalf of another entity (the principal) is limited to the amount of any fee or commission payable to the entity as compensation for executing the agreed services.

Revenue from exchange transactions is measured at the actual amount of the consideration received or receivable.

1.13.3 Revenue from Non-Exchange Transactions

Revenue from non-exchange transaction arises when the entity either receives value from another entity without directly giving approximately equal value in exchange or gives value to another entity without directly receiving approximately equal value in exchange.

1.13.4 Recognition and Measurement

Revenue from non-exchange transactions is generally recognised to the extent that the related receipt or receivable qualifies for recognition as an asset and there is no liability to repay the amount.

Revenue from non-exchange transactions is measured at the discounted value of the consideration received or receivable. Revenue is derived from Government grants, donated assets (non-exchange transactions) as well as other income (exchange transactions) and interest earned (external investment).

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1. ACCOUNTING POLICIES - continued

Government grants are recognised on a systematic basis, either on the date of receipt or receivable as confirmed by the Department of Economic Development. Other exchange revenue and interest earned refer to revenue and interest that accrues to the entity for services rendered and interest on external investment and are recognised when it can be measured reliably.

1.14 Borrowing Costs / Finance Costs

In terms of the PFMA, the Authority is prohibited from borrowing.

1.15 Foreign Currency Transaction

Transactions in foreign currencies are initially accounted for at the rate of exchange ruling on the date of the transaction. Exchange differences arising on the settlement of creditors or on reporting of creditors at rates different from those at which they were initially recorded are expensed.

Transactions in foreign currency are accounted for at the spot rate of the exchange ruling on the date of the transaction. Gains and losses arising on the translation are dealt with in the Statement of Financial Performance in the period in which they occur.

1.16 Surplus or Deficit

Gains and Losses

Gains and losses arising from the disposal of assets, are presented separately from other revenue in the Statement of Financial Performance. Income, expenditure, gains and losses are recognised in surplus or deficit except for the exceptional cases where recognition directly in net assets is specifically allowed or required by a Standard of GRAP.

GTA ANNUAL REPORT 13/14 119 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

1. ACCOUNTING POLICIES - continued

1.17 Irregular Expenditure

Irregular expenditure is expenditure that is contrary to the Public Finance Management Act (PFMA) or is in contravention of the entity’s supply chain management policies. Irregular expenditure excludes unauthorised expenditure.

Irregular expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.

1.18 Fruitless and wasteful Expenditure

Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.

1.19 Recovery of Unauthorised, Irregular, Fruitless and Wasteful Expenditure

The recovery of unauthorised, irregular, fruitless and wasteful expenditure is based on legislated procedures, and is recognised when the recovery thereof from the responsible officials is probable. The recovery of unauthorised irregular, fruitless and wasteful expenditure is treated as other income.

1.20 Post-reporting date Events

Events after the reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: a) those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date) and b) those that is indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

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1. ACCOUNTING POLICIES - continued

Any known or anticipated event that may occur after the reporting period is declared in the notes to financial statements. The Authority will adjust the amounts recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.

The Authority will disclose the nature of the event and an estimate its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

1.21 Related Party Transaction

The Authority operates within the auspices of its parent organisation, the Department of Economic Development who is primarily responsible for funding and is therefore regarded as its related party. Other related parties are Cradle of Humankind, Dinokeng, GEDA, Gauteng Gambling Board, Gauteng Film Commission, GGDA, Gauteng Liquor Board, Key Management and the GTA Board.

All related parties except the GTA Board are within the same sphere of government and/or under common control of the Department.The Authority has internal controls in place to aid in the identification of related parties. All prospective service providers must also complete a declaration of interest form prior to appointment.

1.22 Accounting Policies - Additional

1.22.1 Contingencies / Other Liabilities (Provisions / Accruals) / Other Assets

Any known or anticipated contingent liability and asset that may occur is declared in the notes to thefinancial statements.

Provisions are recognised when the Authority has a present obligation as a result of a past event and it is probable that this will result in an outflow of economic benefits that can be estimated reliably. Accruals are liabilities to pay for goods or services that have been received or supplied but have not been paid, including amounts due to employees for accrued vacation pay. Accruals are reported as part of trade and other payables in the Statement of Financial Position. The Authority does not recognise a contingent asset and contingent liability but discloses details of any contingencies in the notes to the financial statements.

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1. ACCOUNTING POLICIES - continued

1.22.2 Budget Information in Financial Statements,

1.12 As per GRAP, a comparison of the budget and actual amounts for the reporting period is included in the financial statements.

The Authority’s financial statements and budget are on the same basis of accounting which is a pre-requisite for this inclusion.

GRAP 24 effective as from 1 April 2012 stipulates that entities may elect to make available its approved budget subject to disclosing the reasons for material differences between the budget and actual amounts. The Authority is of the opinion that disclosure of budget amounts compared to the actual amounts arising from execution of the budget may enhance the user of the financial statements’ understanding and may also be used as a performance measure indicator.

1.22.3 Prepayments

The Authority recognises prepayments made in respect of exchange transactions for the next financial year in the Statement of Financial Position. Prepayments are reviewed at each Statement of Financial Position date and adjusted if necessary.

1.22.4 Deposits

The Authority recognises deposits made in respect of exchange transactions in the Statement of Financial Position as current assets.

1.22.5 Staff Advances / Loans

The Authority recognises staff advances in the Statement of Financial Position as current assets and any interest if applicable in the Statement of Financial Performance. These advances are granted in terms of the Authority’s HR Policy on Staff Loans and/or Advances.

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1.22.6 Financial Risk Management

The Authority’s activities expose it to the following risks: - Credit; Liquidity; and Market. Credit Risk; Liquidity Risk and Market Risk. The Board has overall responsibility for the establishment and oversight of the Risk Management Framework of the Authority. The Board has established the Audit Committee, which is responsible for developing and monitoring the Authority’s risk management policies. The Committee reports regularly tothe Members of the Board on its activities.

The Authority’s risk management policies and systems areestablished to identify and analyse the risks the Authority faces, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. The Authority reports on its risks on a monthly basis in terms of the Board approved Risk Register. These reports are consolidated into quarterly reports and presented to the Audit Committee as a standing item on the Audit Committee Agenda.

1.23 Foreign Exchange Gain/Loss

Foreign exchange gains/losses arising from international payments are recognised in the Authority’s Statement of Financial Performance in the period in which they occur. Exchange differences arise when the rates at settlement of creditors are different from those initially recorded and expensed. Transactions in foreign currency are accounted for at the spot rate of the exchange ruling on the date of the transaction.

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2.1 PROPERTY, PLANT AND EQUIPMENT Computer Equipment Furniture & Motor Household Total Year ended 31 March 2014 Equipment Fittings Vehicles Improvements

Opening net carrying amount 197,999 14,785 194,417 - - 407,201 Gross carrying amount 851,895 214,431 1,178,606 - - 2,244,932 Accumulated depreciation (653,896) (199,646) (984,189) - - (1,837,731) Additions 420,225 - - - - 420,225 Disposals (3,898) (995) (300) - - (5,193) Cost 15,239 59,765 21,502 - - 96,506 Depreciation charge - disposals (11,341) (58,770) (21,202) - - (91,313) Depreciation charge (98,700) (7,315) (46,968) - - (152,983) Closing net carrying amount 515,627 6,474 147,152 - 669,253 Gross carrying amount 1,256,881 154,666 1,157,104 - - 2,568,651 Accumulated depreciation (741,254) (148,192) (1,009,954) - - (1,899,400)

Year ended 31 March 2013 Opening net carrying amount 333,831 44,923 109,120 - 497,631 985,505 Gross carrying amount 1,816,816 765,117 1,802,409 - 1,696,030 6,080,372 Accumulated depreciation (1,482,985) (720,194) (1,693,289) - (1,198,399) (5,094,867) Additions 36,190 - 160,357 - - 196,547 Disposals (9,066) (8,481) (3,902) - (328,028) (349,477) Cost 1,001,113 550,686 784,158 - 1,696,030 4,031,987 Depreciation charge – disposals (992,047) (542,205) (780,256) - (1,368,002) (3,682,510) Depreciation charge (162,958) (21,657) (71,156) - (169,603) (425,378) Closing carrying amount 197,999 14,785 194,419 - - 407,201 Gross carrying amount 851,895 214,431 1,178,608 - - 2,244,932 Accumulated depreciation (653,896) (199,646) (984,189) - - (1,837,731) GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

2.2 Intangible assets Computer software Opening net carrying amount - 8,391 Gross carrying amount 211,998 211,998 Accumulated amortisation (211,998) (203,607) Amortisation - (8,391) Closing net carrying amount 31 March -- Gross carrying amount 211,998 211,998 Accumulated amortisation (211,998) (211,998)

3. TRADE AND OTHER RECEIVABLES 303,720 303,720

3.1 Trade receivables 303,720 303,720 Trade and other receivables from exchange 303,720 303,720 transactions incl. water and other deposits 3.1.1

GTA ANNUAL REPORT 13/14 125 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

3.1.1 Deposits 303,720303,720 303,720 Deposit: Water bottles from exchange transactions 1,6201,620 1,620 Deposit: Rental premises from exchange transactions 302,100302,100 302,100

4. PREPAYMENTS 139,231139,231 71,133 SAACI - 950 National Circulation 10,09410,094 6,966 ICCA (33,099) and SAMRO (885.16) 33,98433,984 - Independent Newspapers 250250 235 VIP Licence 21,60421,604 14,782 Pastel 2,8722,872 643 SABC 265265 375 Nimrod 20,61920,619 - HIS Regional Data 49,54349,543 47,182

5. CURRENT LIABILITIES (Initially carried at cost and 7,934,1627,934,162 3,450,309 subsequently at amortised cost) 5.1 Trade and other payables from exchange transactions Trade and other payables - Creditors 1,623,0201,623,020 1,396,791 Accrual for Thirteenth Cheque 402,114402,114 384,575 Accrual for Statutory Costs 1,8711,871 16,143 Accrual for Board Remuneration 5,6135,613 48,430

GTA ANNUAL REPORT 13/14 126 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

Allowed accumulated vacation leave 1,333,5261,333,526 1,239,038 Staff savings 9,0009,000 14,000 Staff claims 3,5193,519 51,333 NDT - payment in advance 7,5007,500 300,000 Garankuwa HS Student Fees – payment in advance 4848 - Dept Arts and Culture – payment in advance 1,500,0001,500,000 - Shopping Festival – payment in advance 3,000,0003,000,000 -

5.1.1 Reconciliation of Accruals 20142014 3013 Accrual for Leave Pay – Balance as at 1 April 1,239,0381,239,038 1,256,683 Additional Accrual/(Unused amounts reversed) 94,48894,488 (17,645) Balance as at 31 March 1,333,5261,333,526 1,239,038

Accrual for 13th Cheque – Balance as at 1 April TB 384,575384,575 351,529 Additional accrual 17,53817,538 33,046 Balance as at 31 March 402,114402,114 384,575

6. REVENUE Revenue comprises revenue received in respect of: 63,039,10463,039,104 53,570,3165 Non-exchange transactions - Government Grants 62,016,00062,016,000 52,045,000 Other Income – exchange transactions 6.1 400,116400,116 1,093,434 Income from Investments 6.2 622,988622,988 431,882

GTA ANNUAL REPORT 13/14 127 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

6.1 Other Income – exchange transactions 400,116400,116 1,093,434 6.1.1 Comprises of main income budget votes 99,94399,943 179,039 Registration Fees 96,00096,000 131,834 Registration Other 3,9433,943 3,473 Study Assistance Refund - 13,178 Telephone Staff Refund - 30,554

6.1.2 Other Insurance claims and Shared services 300,173300,173 914,395

6.2 Income from Investments 622,988622,988 431,882 Interest from Corporation for Public Deposits 501,289501,289 259,483 Interest from ABSA and FNB 121,699121,699 172,400

7. EXPENDITURE 59,822,376 50,758,818

7.1 Staff costs (incl. Wellness, Labour, Recruitment, OD & Study) Wages and salaries 33,613,50133,613,501 30,172,754 Basic salaries 11,623,85611,623,856 11,111,354 Performance awards 1,866,1471,866,147 1,478,875 Periodic payments 1,363,0971,363,097 1,305,983 Other non-pensionable allowance 3,013,9193,013,919 2,713,208 Temporary Staff 203,029203,029 143,756

GTA ANNUAL REPORT 13/14 128 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

Leave payments - 14,638

Resignation Leave 64,77864,778 98,513 Overtime pay 42,08542,085 222,277 CEO and Senior Manager’s Emoluments 8 8,531,2298,531,229 7,630,167 Defined pension fund contribution plan expense 2,824,5512,824,551 2,612,111 Social contributions (Employer’s contribution) Medical 2,397,8412,397,841 2,146,422 Unemployment Insurance Fund 219,021219,021 196,307 Insurance (Group Life) (incl in Defined pension fund) - - Other salary related costs (Accrual for Leave pay/ 1,236,0031,236,003 231,071 Period payments as well as Empl Wellness, Labour,

Recruitment and Study Assistance)

Fees for Non-executive Board Members 9 227,946227,946 269,313

7.2 Depreciation 152,983152,983 425,373 Plant, machinery and equipment 7,3157,315 21,657 Computer equipment and peripherals 98,70098,700 162,957 Office furniture and fittings 46,96846,968 71,156 Lease Furniture and Fittings - 169,603

7.3 Amortisation - 8,391

GTA ANNUAL REPORT 13/14 129 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

7.4 Repairs and maintenance

Repairs, maintenance and running costs 822,018822,018 1,407,719 Plant, machinery and equipment 118,836118,836 195,659 Computer equipment and peripherals 658,828658,828 1,134,838 Other maintenance 44,35444,354 77,222

7.5 General expenses 25,233,87325,233,873 18,395,103 Advertising including GTA Marketing 3,304,6093,304,609 4,390,924 Admin fees 24,34124,341 29,667

Audit fees – Statutory 360,250360,250 588,804 Audit fees - Internal 526,201526,201 355,437 Bank Charges 28,70028,700 28,505 Conference and delegations 663,737663,737 1,681,267 Entertainment 93,91493,914 140,942 Electricity 1,844,0241,844,024 898,254 Insurance 204,859204,859 136,892 Legal fees - 115,714 Parking Official 49,99949,999 401,213 Postage 2,8262,826 8,909 Printing and stationery 100,135100,135 240,473 Rental of buildings 4,232,8594,232,859 1,389,952

GTA ANNUAL REPORT 13/14 130 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Notes 2013/14 2012/13 R R

Cleaning services 340,991340,991 366,915 Rental of equipment 83,80283,802 83,802 Rental of vehicles 147,856147,856 122,271 Security costs 351,946351,946 388,788 Subscriptions and publications 114,720114,720 244,140 Telephone costs 108,470108,470 221,334 Training and Development 2,336,2452,336,245 1,261,436

Other 10,313,39010,313,390 5,299,463 (Including R12,035 Foreign Exchange loss for current year)

7.6 Other gains / losses (Gains)/Loss on disposal of assets (Property, plant and (2,484)(2,484) 349,477 equipment)

GTA ANNUAL REPORT 13/14 131 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

8. CEO AND SENIOR MANAGER’S EMOLUMENTS (Already included in Staff costs 7.1)

Bonuses and perform Prov Fund Cell/Med Aid Executive Staff Members Salaries Payments contrib contrib Total

RRRR

D Robertson: CEO 927,396 258,808- - - 1,186,204 M Moeti: Destination Management 828,480 146,108 62,136 36,900 1,073,624 MN Kubeka: Destination Marketing 828,480 165,375 62,136 36,900 1,092,891 KN Gaoganediwe: Corporate Comm 1,014,324 87,097 - - 1,101,421 S Moeketsi: Corp Services 828,480 165,375 62,136 36,900 1,092,891 Y Asmal: Chief Financial Officer 752,502 102,083- - - 854,585 KS Sithole: Research and Strategy 828,480 165,375 62,136 - 1,055,991 M Kona: Regional Tourism 828,480 146,108 62,136 36,900 1,073,624 6,836,622 1,236,327 310,680 147,600 8,531,229 Year ended 31/03/2014 6,168,656 1,033,529 289,004 138,978 7,630,167 Year ended 31/03/2013

Note: 50% of the CEO and CFO remuneration was reimbursed by CoH and Dinokeng.

The amounts were R927,396 and R752,502 respectively.

GTA ANNUAL REPORT 13/14 132 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

9. GTA BOARD MEMBERS COSTS (Already included in 7.1) 2013/14 2012/13 RR Board Member Emoluments 227,945 269,313 Mr K Mthembu (Chairperson) 109,866 84,375 Ms N Majokweni (Deputy Chairperson) 28,829 37,168 M H Moolla (Chairperson Audit Comm) (Until December 2012) - 58,940 Ms M Molotsi (Chairperson Audit Comm) 42,680 42,630 Mr D Moshapalo 46,570 46,200

10. CONTINGENCIES / OTHER LIABILITIES (PROVISIONS / ACCRUALS) / OTHER ASSETS

The entity is being sued by Munghana, the appointed Travel Agent until 2011, who claims that services were rendered but not paid for. This matter has been disputed and handed over to the entity’s appointed legal firm. The matter may only be resolved in the 2014/15 financial year. The amount claimed is R279,469.27.

As from 1 April 2009 when GRAP 19 became effective, provisions for accrued leave and thirteenth cheque were reclassified retrospectively as accruals under Trade and other payables as to ensure compliance with GRAP 19.17. Refer to Accounting Policies 1.22.

Accruals were made in the following manner:

- Leave Pay is set at 100% of all outstanding allowed accumulated leave at Statement of Financial Position date; - Thirteenth Cheque is made for January to March and is calculated on the actual December payout of the current financial year divided by four.

No Contingent and/or Other Assets existed or were reported on in the period under review.

GTA ANNUAL REPORT 13/14 133 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued 2013/14 2012/13 R’000 R’000 11. NOTES TO THE CASH FLOW STATEMENT 11.1 Reconciliation of net (deficit)/surplus before taxation to cash (utilised)/ generated from operations Net (deficit)/surplus for the year (From Trial Balance) 3,219 2,811 Adjusted for: Depreciation 153 425 Amortisation -8 (Gain)/loss on disposal (2) 349 Investment income (623) (432)

Operating (deficit)/surplus before working capital changes 2,747 3,163

Working capital changes Decrease/(Increase) in accounts receivable (68) (4,195) (Decrease)/Increase in accounts payable 4,484 (8,351)

Cash (utilised by)/generated from operations 7,162 (992)

GTA ANNUAL REPORT 13/14 134 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued 2013/14 2012/13 R’000 R’000 11.2 Adjustments to property, plant and equipment Additions to property, plant and equipment 420 197 Computer equipment 420 36 Equipment - 160 Furniture and Fittings --

11.3 Adjustment to intangible assets Additions to computer software --

11.4 Cash and cash equivalents at beginning of the year 8,902 9,659 Current bank account 4,850 7,866 Corporation for Public Deposits Account (restricted use) 4,046 1,786 Petty cash 66

11.5 Cash and cash equivalents at end of the year 16,275 8,902 Current bank account 5,921 4,850 Corporation for Public Deposits Account (restricted use) 10,347 4,046 Petty cash 66

GTA ANNUAL REPORT 13/14 135 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

12. NOTES TO THE STATEMENT OF CHANGES IN NET ASSETS 12.1 Reserves

The Accumulated Surplus reflects net assets and includes retained income for future use amounting to R9,452,698.34. 13. RETIREMENT BENEFIT OBLIGATIONS

The Authority has made provision for a Liberty Life Group Provident Fund for GTA personnel. The Authority contributes 100% of the amount payable for provident fund for staff who join the scheme at7.5% and 50% of the amount payable for staff who join at 15%. The Liberty Life Provident Fund is governed by the Pension Fund (Act No. 24 of 1956) and incorporated in the GTA Staff Policies.

GTA ANNUAL REPORT 13/14 136 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

14. OPERATING LEASE ARRANGEMENTS/NON-CAPITAL COMMITMENTS/COMMITMENTS AUTHORISED EXPENDITURE 14.1 Operating lease arrangements / Non-capital Commitments At the Statement of Financial Position date the GTA had outstanding commitments under non-cancellable operating leas es, which fall due as follows

2013/2014 2012/13 R’000 R’000 Not later than 1 year - - Office Rental Lease - - Equipment Lease 571 580 Internet Telco Services 82 82 Motor Vehicle (1) 73 - Motor Vehicle (2) 7 110 MTN, Vodacom Autopage Agreements - 144 Smart Boxes Later than 1 year but not - - Office Rental Lease later than 5 years 434 872 Internet Telco Services 157 239 Motor Vehicle (1) 80 - Motor Vehicle (2) 56 7 MTN, Vodacom, Autopage Agreements

Later than 5 years -- 1,460 2,034

GTA ANNUAL REPORT 13/14 137 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

The Authority also entered into a three year Internet Solutions Telco Service agreement at a fixed monthly cost of R47,602.48 excluding variables and is terminable after twelve months with the notice period set at ninety days prior to termination. The Authority does not have the option to acquire the equipment. The Authority rents two vehicles from ABSA from 15 March 2012 at R6,830.05 and from 1 April 2013 at R6,121.30 per month fixed for five and three years respectively with buyback option after the term. The lease agreements bear no contingent lease payments. The Authority contracted with MTN and Vodacom for official cell phones for the CEO and Senior Managers. The expiry date for the current contract is March 2014 for Senior Managers and CEO with the CFO set at Nov 2014 . The Autopage contracts for the GTA Drivers will expire in May 2014. All contracts will be renewed for a further 24 month term with cost implications available on renewal. The Authority also entered into an agreement with Amandla Omaya Holdings for the supply and servicing of 30 Smart Boxes whereby visitor numbers are monitored. The agreement expires in February 2014 with the option to extend for a further year. The lease agreements do not impose any restrictions. 14.2 Commitments - Authorised Expenditure 2014 2013 Already contracted for but not provided for R R

- Operating expenditure 4,451,6504, 45 1,650 - 4,451,6504,451,650 - 15. PRESENTATION CURRENCY

The financial statement figures have been stated in Rand terms as this is the Authority’s functional currency. All amounts have been rounded to the nearest one thousand Rand (R1,000) in the statements and from Note 8 to 16 and 22 in the Notes to the Financial Statements. The detailed State- ment of Financial Performance (Annexure 1) is stated in Rand terms. 16. RELATED PARTY TRANSACTIONS

Joint Ventures N/A Associates N/A Members of key management Yes Close family of key management N/A

GTA ANNUAL REPORT 13/14 138 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

The Authority’s main related party is the Department of Economic Development who is primarily responsible for funding. Other related parties during the period under review were Cradle of Humankind, Dinokeng and GGDA as well as members of Key Management and the GTA Board. Please refer to Notes 8 and 9. All related parties except the GTA Board are within the same sphere of government and/or under common control of the Department. 16.1 Related Party Transactions 2014 2014 2013 2013 Transactions Transactions Receivable/ Transactions Receivable/ (Payable) (Payable)

Department of Economic Development - - 52,045 - Cradle of Humankind - - 2,454 - Dinokeng - - 2,239 - GGDA 44 - 1 -

Executive Management (Note 8) - - - - GTA Board (Note 9) - - - -

Receivables/(Payables)Balances - - - -

There were no outstanding balances at Statement of Financial Position date.

17. EVENTS AFTER REPORTING DATE

The Department of Economic Development is currently in a process of realignment which may have an impact on the existence of the Authority in its current form. The Authority, Cradle of Humankind and Dinokeng is in the process of integration with completion set for the 2015/16 financial year. The Department also took over the Ga-Rankuwa Hotel School as from April 2014 with the Authority as the Management Agency.

GTA ANNUAL REPORT 13/14 139 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

18. SENSITIVITY ANALYSIS

The Authority fulfilling its mandate under the auspices of the Provincial Government, is reliant on Government as its major source of revenue. It therefore does not anticipate any interest rate risk caused by fluctuating interest rates as it does not operate a system of debtors of signifi cant value.The Authority also manages its risks through a Risk Management Plan. 19. FINANCIAL INSTRUMENTS

The Authority’s financial instruments at amortised cost are summarised as follows: 2014 Assets Trade and other receivables R

Trade receivables 303,720 Prepayments 139,232 Cash and bank 16,274,658 Total 16,717,610 Liabilities Trade and other liabilities Trade payables 1,623,020 Payment received in advance 55,500 Conditional Grants 4,500,000 Staff leave accrual 1,333,526 Thirteenth cheque accrual 402,114 Other creditors 20,003 Total 7,934,162

GTA ANNUAL REPORT 13/14 140 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

2013 R Assets Trade and other receivables Trade receivables 303,720 Prepayments 71,133 Cash and bank 8,901,741 Total 9,276,593 Liabilities Trade and other liabilities

Trade payables 1,512,696 Payment received in advance 300,000 Staff leave accrual 1,239,038 Thirteenth cheque accrual 384,575 Other creditors 14,000 Total 3,450,309

19.1 Financial Risk Management

The Authority’s exposure to credit, liquidity and market risks is dealt with in terms of its risk management policies and systems in place as stipulated in accounting policy 1.22.6. During the period under review, no impairment, write offs and/or credit losses were identified.

GTA ANNUAL REPORT 13/14 141 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

20. IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE

2014

R

Opening balance - Irregular expenditure 2014 - Balance -

2013 R

Opening balance 1,544,985 Irregular expenditure 2012 and Board ratification 2013 -1,544,985 Balance -

The expenditure breakdown is as follows: Analysis of irregular expenditure and corrective measures

A service provider was appointed in terms of Treasury Regulation 16A6.6 of the SCM PFMA Regulations and approved by the Board to develop and maintain the GTA Website for R2,317,984.

GTA ANNUAL REPORT 13/14 142 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

21. GOING CONCERN

The Authority will be a going concern in the year ahead. For this reason the going concern basis of an accrual system and historical cost principle have been adopted in preparing the Authority’s annual financial statements.

22. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS

(‘+’ amounts in last column = under budget/spend)

Actual amounts on Difference between Approved Budget Adjustments Final budget comparable basis final budget and actual

R’000 R’000 R’000 R’000 R’000 Receipts

Rendering of services 283 300 583 400 183 Investment revenue 450 - 450 623 (173) Grant revenue 62,016 - 62,016 62,016 -

Total Receipts 62,749 300 63,049 62,039 10 Payments Employee costs 35,260 - 35,260 33,614 1,646 Operating expenses 27,170 - 27,170 26,209 961

Finance charges

Materials and bulk purchases 300 300 600 600 Other expenditure 20 - 20 (2) 22 Total Payments 62,749 300 63,049 59,820 3,219 Net Receipts/ (payments) - - 3,219

GTA ANNUAL REPORT 13/14 143 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued

Explanation of material difference between the final budget and actual reconciliation

The variation between Revenue Budget and Actual (inclusive of Interest income) of R7,412 is 0% under budget. The surplus less the acquisition of assets amounted to R3,219,212.93.

The variation between Staff Costs Budget and Actual of R1,645,999 is 5% under budget. A contributing factor is the Agency merger process restrict- ing appointments

The variation between Operating Expenses Budget and Actual of R960,626 is 4% under budget. A factor that played a role is the Cradle of Human- kind and Dinokeng contribution for shared services and Indaba 2013. This amounted to R1,647,441 of which R1,347,441 was treated as refunds for expenditure incurred by the GTA.

GTA ANNUAL REPORT 13/14 144 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued MATERIALITY FRAMEWORK (Unaudited supplementary schedule)

The Authority’s Materiality Framework is as follows:

Legislative reference Quantity level Quality level PFMA sec 50(1)(C) All figures that might Any item or event of which specific (1) ‘The Accounting Authority for a public entity must – influence the decision by the disclosure is required by law. (c) on request, disclose to the executive authority responsible for that public entity or the executive authority. Monthly All facts discovered of which its legislature to which the public entity is accountable, all material facts, including those reports to the DED will omission or misstatement, in the reasonably discoverable, which in any way may influence the decisions or actions of the include explanatory notes Board’s opinion, could influence the executive authority or that legislature; and if the actual expenditure/ decision by the executive authority. revenue per Business Unit deviates more than 5% from Budget. PFMA sec 54(2) All transactions as required All figures as applicable

PFMA sec 55(2)(b)(i) Any loss through criminal Any loss identified through conduct identified. criminal conduct (2) ‘The annual report and financial statements referred to in subsection (1)(d) must- Any loss through irregular/fruitless/wasteful (b) any material losses through criminal conduct and any irregular expenditure and fruitless expenditure and if the and wasteful expenditure that occurred during the financial year; combined total exceeds the planning materiality figure used by the external auditors for the year under review.

GTA ANNUAL REPORT 13/14 145 GAUTENG TOURISM AUTHORITY NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014 - continued (Unaudited supplementary schedule)

Budget Actual Budget Actual 2013/14 2013/14 2012/13 2012/13 R R R R INCOME 63,049,00063,049,000 63,041,58863,041,588 53,843,000 53,570,316 DED Subsidy 62,016,00062,016,000 62,016,00062,016,000 52,045,000 52,045,000 Grant Dept of Sport ------Co Exhibitor Fees 15,00015,000 - 14,000 - Registration Fees 127,000127,000 96,00096,000 120,000 131,834 Other 140,000140,000 173173 20,000 11,830 Registration Other 1,0001,000 3,9433,943 1,000 3,473 Study Assistance Refund - - 1,000 13,178 Telephone Staff Refund - - 50,000 30,554 Grant DED Sansui ------CoH/D Shared Services 300,000300,000 300,000300,000 892,000 892,000 Interest Received 450,000450,000 622,988622,988 700,000 431,882 Profit on Disposal of Assets - 2,4842,484 - 10,565 EXPENDITURE FINANCE 5,618,9305,618,930 4,595,5254,595,525 4,657,500 3,804,629 Fin - Provision for Leave 100,000100,000 94,48894,488 43,500 - Fin - Provision for 13th Cheque 20,00020,000 17,53817,538 100,000 33,046 Fin - Conference & Meetings - - 1,000 51 Fin - Accounting fees 28,00028,000 24,34224,342 30,000 29,667 Fin- Audit Internal 527,000527,000 526,201526,201 443,000 355,437 Fin - Audit External 378,000378,000 360,250360,250 645,000 588,804

GTA ANNUAL REPORT 13/14 146 GAUTENG TOURISM AUTHORITY DETAILED STATEMENT OF PERFORMANCE for the year ended 31 March 2014

BudgetBudget Ac Actualtual Budget Actual 2013/142013/14 2013/142013/14 2012/13 2012/13 R R R R

Fin - Bank Charges 33,00033,000 28,70028,700 33,000 28,505 Fin – Contingency Costs - - 25,000 - Fin – Financial Planning 5,0005,000 2,6942,694 12,000 11,614 Fin - Insurance 205,000205,000 204,859204,859 211,000 136,892 Fin - Staff Total 3,188,0003,188,000 3,183,4713,183,471 2,266,000 1,837,372 Fin - Staff Total Unallocated 935,930935,930 - - - Fin – Loss on Disposal of Assets 20,00020,000 - 348,000 349,477 Fin – Amortisation 12,00012,000 - 46,000 8,391 Fin - Depreciation 167,000167,000 152,983152,983 454,000 425,373

OFFICE OF THE CEO Board and Forum Matters 1,933,0001,933,000 1,821,0521,821,052 1,286,000 1,193,373 Organisational Planning & Integr - - - - Board Secretariat 24,00024,000 23,97523,975 60,000 45,770 Attendance and Conf & Forums - - - - Attend Conf & Forums Local 69,00069,000 68,32768,327 120,000 106,655 Attend Conf & Forums Intern 300,000300,000 285,717285,717 300,000 365,464 Attend Conf & Forums Board Loc 220,000220,000 194,307194,307 220,000 208,157 Attend Conf & Forums Board Int 50,00050,000 15,49215,492 298,000 297,550 Tourism Summit 955,000955,000 954,985954,985 - - Board Payments and Allowances 246,000246,000 227,946227,946 246,000 269,313 CEO Entertainment 69,00069,000 50,30450,304 80,000 52,963

GTA ANNUAL REPORT 13/14 147 GAUTENG TOURISM AUTHORITY DETAILED STATEMENT OF PERFORMANCE

for the year ended 31 March 2014

BudgetBudget ActualActual Budget Actual 2013/142013/14 2013/142013/14 2012/13 2012/13 R R R R

CORPORATE SERVICES Human Resources 16,926,07016,926,070 16,341,31316,341,313 14,097,000 12,941,414 CS - Employee Wellness 20,00020,000 16,60016,600 20,000 7,799 CS - Staff Dev & Training 322,000322,000 321,027321,027 200,000 28,187 CS - Labour Relations 1,0001,000 500500 20,000 1,344 CS - Organisational Development 1,418,0001,418,000 981,467981,467 70,000 3,075 CS - Recruitment 15,00015,000 10,40810,408 60,000 55,593 CS - Study Assistance 116,000116,000 115,002115,002 260,000 130,213

Administrative Services CS - Conference and Meetings 12,00012,000 - 20,000 8,398 CS - Courier and Postage 10,00010,000 2,8262,826 10,000 8,909 CS - Entertainment 60,00060,000 43,61043,610 100,000 87,980 CS - Legal Fees - - 213,000 115,714 CS - Library Research 40,00040,000 - 5,000 - CS - Motor Vehicle Expenses 55,00055,000 44,35444,354 85,000 77,222 CS - Office Maint & Recep 119,000119,000 118,836118,836 208,000 195,659 CS - Office Electricity 1,845,0001,845,000 1,844,0241,844,024 898,000 898,254 CS - Office Rent 4,232,8604,232,860 4,232,8594,232,859 1,003,000 1,389,952 CS – Cleaning 341,000341,000 340,991340,991 367,000 366,915 CS - Parking Official 60,00060,000 49,99949,999 43,000 401,213 CS - Motor Vehicle Lease 150,000150,000 147,856147,856 147,000 122,271 CS - Printing & Stationery 101,000101,000 100,135100,135 356,000 240,473 CS - Refreshments 10,00010,000 6,0436,043 90,000 86,454 CS – Relocation Costs - - 14,000 13,959 GAUTENG TOURISM AUTHORITY DETAILED STATEMENT OF PERFORMANCE for the year ended 31 March 2014

BudgetBudget ActualActual Budget Actual 2013/142013/14 2013/142013/14 2012/13 2012/13 R R R R

CS - Security & Safety 353,140353,140 351,946351,946 399,000 388,788 CS - Subscriptions & Library 115,000115,000 110,445110,445 65,000 54,242 CS - Telephones 115,000115,000 108,470108,470 420,000 221,334 CS - Cell phones and Data cards 106,000106,000 92,35792,357 - - CS - Dev/Maint of ICT 660,660, 000000 658,828658,828 1,114,000 1,134,838 CS - Lease of Equipment 90,00090,000 83,80283,802 210, 000 83,802 CS - Staff Total 6,559,0706,559,070 6,558,9296,558,929 7,346,000 6,818,825

DESTINATION MANAGEMENT 17,061,40017,061,400 16,725,39016,725,390 16,479,000 15,910,910

Training Programme 7,849,0007,849,000 7,702,6877,702,687 7,149,000 6,888,590 Sector Skills Audit (DF) - - 440,000 440,000 Foreign Languages (DF) - - 200,000 179,908 Lecture Series (DF) - - 460,000 400,000 How to Booklets (90%DF) - - 200,000 189,499 Service Excellence - - 150,000 100,000 Youth Programme 1,500,0001,500,000 1,489,4631,489,463 - - Skills Programmes (DF) 895,000895,000 846,782846,782 242,000 241,528 Tour Guiding Registration of Tourist Guides - - 20,000 7,600 Monitoring Tourist Guides (40%DF) 175,000175,000 89,13289,132 30,000 23,419 Tourist Guides Workshops - - 30,000 -

GTA ANNUAL REPORT 13/14 149 GAUTENG TOURISM AUTHORITY DETAILED STATEMENT OF PERFORMANCE for the year ended 31 March 2014

BudgetBudget ActualActual Budget Actual 2013/142013/14 2013/142013/14 2012/13 2012/13 R R R R

International Tourist Guide Day (80%DF) - - 60,000 8,132 Tourism Awards - - 30,000 30,000 Enterprise Development Tourism Enterprise Dev (DF) 905,000905,000 904,187904,187 523,000 519,660 Grading of Amenities (80%DF) 300,000300,000 300,000300,000 300,000 300,000 SMME Business Development (DF) - - 360,000 358,908 Tourism Signage (DF) - - 7,000 18 Conference and Workshops (60%DF) - - 410,000 403,363 Staff 4,074,0004,074,000 4,073,1224,073,122 3,687,000 3,686,556

Regional Tourism 9,212,4009,212,400 9,022,7039,022,703 9,330,000 9,022,320 Local Auth, Community Tour Projects 20,00020,000 750750 40,000 23,592 Stakeholder Engagement Programme - - - - Strategic Partnerships 120,000120,000 85,65085,650 81,000 80,831 Instit F/W for Responsible Tourism - - 99,000 23 050 Responsible Tourism 427,000427,000 378,715378,715 450,000 352,582 Tourism Awareness Prog (DF) 75,40075,400 75,11275,112 90,000 66 580 Information Services (30%DF) 100,000100,000 91,71391,713 391,000 390,140 Regional Tourism Marketing 185,000185,000 181,245-181,245- - - Regional Temps - - 154,000 143,756 Staff 8,285,0008,285,000 8,209,5198,209,519 8,025,000 7,941,788

GTA ANNUAL REPORT 13/14 150 GAUTENG TOURISM AUTHORITY DETAILED STATEMENT OF PERFORMANCE

for the year ended 31 March 2014

BudgetBudget ActualActual Budget Actual 2013/142013/14 2013/142013/14 2012/13 2012/13 R R R R

DESTINATION MARKETING 7,538,6007,538,600 7,506,2347,506,234 8,284,500 8,239,119 Mark - Bus Tourism - MICE Exhib - - 1,074,000 1,130,698 Mark – Bid Support 900,600900,600 874,909874,909 - - Mark – Signature Event– Joy of Jazz 500,000500,000 500,000500,000 - - Mark - Marketing and Promotions - - 170,500 170,241 Mark – Trade Partnerships and Act 1,511,0001,511,000 1,507,6801,507,680 1,691,000 1,589,986 Mark – Joint Marketing Initiatives 8,0008,000 8,0008,000 - - Mark – Special Projects/Signature Events Support 414,500414,500 414,019414,019 1,500,000 1,500,000 Mark - Staff 4,204,5004,204,500 4,201,6264,201,626 3,849,000 3,848,194

CORPORATE COMMUNICATIONS 8,829,0008,829,000 8,470,6498,470,649 4,431,000 4,417,140 CC – GeePee 1,551,0001,551,000 1,545,4551,545,455 CC – Campaign & Events 1,913,0001,913,000 1,903,2141,903,214 1,529,000 1,528.235 CC – Signature Experiences 1,529,0001,529,000 1,290,5021,290,502 - - CC – Website and Booking Engine - - 380,000 379,005 CC – Digital Support - - 349,000 336,848 CC – Media Relations 1,326,0001,326,000 1,255,6711,255,671 - - CC – Staff 2,510,0002,510,000 2,475,8072,475,807 2,173,000 2,173,053

GTA ANNUAL REPORT 13/14 151 GAUTENG TOURISM AUTHORITY DETAILED STATEMENT OF PERFORMANCE

for the year ended 31 March 2014

Budget Actual Budget Actual 2013/14 2013/14 2012/13 2012/13 R R R R

RESEARCH AND STRATEGY 4,542,000 4,362,211 4,408,000 4,252,233

RS – Tourism Economic Account - - 59,000 58,233 RS – Strategic Research Plan 505,000 499,530 479,000 483,675 RS – Strategic Planning 350,000 311,433 105,000 48,404 RS – Tourism Intellegence Reports - - - - RS - Staff 3,567,000 3,447,078 3,300,000 3,222,827 RS - Professional Memberships - - 5,000 2,350 RS - Conference & Seminars 100,000 435,995 450,000 435,995 RS – Prov Research Forum (DF) - - 5,000 349 RS – Subscriptions 20,000 4,275 5,000 399

Total Expenditure 62,449,000 59,822,375 53,643,000 50,758,818

Net Surplus/(Deficit) for the Year 600,000 3,219,213 200,000 2,811,498

GTA ANNUAL REPORT 13/14 152 GTA ANNUAL REPORT 13/14 153 LIST OF ACRONYM USED IN THE ANNUAL REPORT

Acronym Description EXSA Exhibition Association of IDP Integrated Development Plan Southern Africa IGR Inter-governmental Review AFCON Africa Cup of Nations FAM Familiarisation IMEX Incentive, Meetings, AG Auditor General FEDHASA Federated Hospitality Association Events and Exhibition APP Annual Performance Plan of South Africa ITB International Tourism Bourse APP Application GATOA Gauteng Tour Operators IT Information Technology BBBEE Broad Based Black Association JTC Johannesburg Tourism Company Economic GCB Gauteng Convention Bureau MAL Maropeng Africa Leisure Empowerment GCR Global City Region M&E Monitoring and Evaluation BRICS Brazil, Russia, India, China & GDP Gross Domestic Product MEC Member of Executive Council South Africa GDPR Gross Domestic Product by Region MINMEC Ministers and Members of the CATHSSETA Cultural, Arts, Tourism, Hospitality GEDA Gauteng Economic Executive Council and Sports Sector Education and Development Agency MOU Memorandum of Understanding Training Authority GFC Gauteng Film Commission MTEF Medium Term Expenditure CCMA Commission for Conciliation, GEGDS Gauteng Employment Growth and Framework Mediation and Arbitration Development Strategy NDT National Department of Tourism CEO Chief Executive Officer GEGDA Gauteng Economic Growth and NGP National Growth Path CFO Chief Financial Officer Development Agency NTSS National Tourism Sector Strategy COH Cradle of Humankind GEP Gauteng Enterprise Propeller OHS Organisational Health and Safety COHWHS Cradle of Humankind World GEYODI Gender, Youth and Disability POE Portfolio of Evidence Heritage Site GPF Gauteng Partnership Fund POI Point of Interest DAC Department of Arts and Culture GRAP Generally Recognised PFMA Performance Finance DED Department of Economic Affairs Accounting Practice Management Act EMITT Eastern Mediterranean GTA Gauteng Tourism Authority RASA Restaurant Association of International Tourism and Travel GTSS Gauteng Tourism Sector Strategy South Africa EIBTM European Incentive and Business ICCA International Congress and SABC South African Broadcasting Travel and Meetings Convention Association Corporation ETEYA Emerging Tourism Enterprise ICT Information SADC Southern Africa Development of the Year Communications Technology Community

GTA ANNUAL REPORT 13/14 154 SAT South African Tourism SATSA Southern African Tourism Services Association SMME Small, Medium and Micro Enterprise StatsSA Statistics South Africa TFDS Total Foreign Direct Spend TEP Tourism Enterprise Partnership TGCSA Tourism Grading Council of South Africa TSA Tourism Satellite Account TUT Tshwane University of Technology UNWTO United Nation World Tourism Organisation VFR Visiting Friends and Relatives WTM World Travel Market

GTA ANNUAL REPORT 13/14 155 GTA ANNUAL REPORT 13/14 156 Notes

GTA ANNUAL REPORT 13/14 157 Notes

GTA ANNUAL REPORT 13/14 158 Notes

GTA ANNUAL REPORT 13/14 159 GTA ANNUAL REPORT 13/14 160 PR105/2014 124 Main Street ISBN: 978-0-621-42639-7 [email protected] Title of Publications: Gauteng Tourism Authority (GTA) www.gauteng.net Annual Report 2013/2014 #GeePeeShotLeft

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