FROM THE CHAIRPERSON

The past year has been a struggle for us and especially the tourism industry in . The theme for this year’s AGM, “It Starts With Us,” was based on a simple learning objective: You can create tomorrow with action today. Cape Town Tourism’s core purpose as a member organisation is to support you by starting initiatives and programmes that will have a lasting impact on travel to Cape Town. We have dealt with having to recover after the now infamous “Day Zero”, increased negativity in the media due to safety incidents against tourists and member businesses, and despite our country’s anaemic economy, we have shown remarkable resilience. But these challenges have not prevented our progress.

Overall tourism performance was mixed with arrivals growing slightly while accommodation occupancy and attraction numbers were down year-on-year. Cape Town International Airport welcomed 5.4 million passengers, the third consecutive year that arrivals have exceeded 5 million passengers. This is a 2% increase year-on-year for total arrivals. Domestic arrivals remained unchanged year-on-year, international arrivals increased by 8% while regional arrivals decreased by 4%. Julie-May Ellingson Chairperson We also delivered some amazing campaigns and programmes to ensure that we keep Cape Town top-of-mind for travel-trade and media, but also looking after them when they are here. A few of the most notable moments include our participation and funding of the Nowhere Better Campaign in partnership with the , Wesgro, Provincial Government, and the private sector; our role in the Cape Town Air Access initiative and funding towards the direct flight between Cape Town and New York; the launch of our first #CapeTownWinterSong digital campaign in partnership with Mango and the City of Cape Town and the media launch of our first curated-route in and our SME marketing incubator partnership with University of Technology (CPUT).

All of our achievements would not have been possible without the continued belief and support from the City of Cape Town, our Board of Directors, our Members and Partners, and the tireless dedication of the Cape Town Tourism team. Thank you for the privilege of working with you to build a dynamic organisation. THE CAPE TOWN TOURISM BOARD (ALPHABETICAL) : Alushca Ritchie, Ayanda Mazibuko, Brett Hendricks, Deidre Davids, Grant Newton, Julie-May Ellingson - Chairperson, Leigh Thomas, Wahida Parker

PAGE 1 FROM THE CEO

Cape Town Tourism is addressing tourism challenges on all fronts to ensure that Cape Town continues to build on its reputation to attract visitors all year round. Four initiatives being driven simultaneously are actively generating a positive response from visitors, communities, government and the tourism sector alike.

We ran our innovative and successful Tourism Safety Ambassador Programme for the second consecutive year. Unemployed youth and final year university students from disadvantaged communities in the and Bo-Kaap learn valuable life and tourism skills while assisting to keep our visitors safe. We believe that our efforts go a long way in reducing possible safety risks posed to visitors while trying to ensure that they enjoy every part of our city from eKasi to the CBD.

Water-scarcity is no longer an idea or concept that lives in text-books or National Geographic documentaries, it’s a reality, and being resilient to this and other natural disasters is becoming a necessity rather than a nice-to-have. The Secretary General of the UNWTO singled us out for our efforts in reducing water usage – how we learned to collaborate during a crisis has become a ENVER DUMINY best-practice case study. There have been multiple campaigns and communication CEO, Cape Town Tourism efforts, so collectively, these have ensured that the messaging is brought across to visitors and that water usage is reduced accordingly.

Cape Town has a rich Muslim history and heritage, with the Cape Malay Muslims making up around a quarter of the population. Cape Town Tourism works closely with CrescentRating, the world’s leading authority on Halal Travel, to accredit and train the industry first-hand, and have Muslim employees and trained staff to focus on this segment.

Cape Town Tourism recently embarked on a new mentorship journey. In partnership with the Cape Peninsula University of Technology, a Love Cape Town Marketing Incubator has been created. It’s aimed at SMEs within Cape Town Tourism’s sizeable membership base and provides mentorship and training via a one-day course with some of the top minds in the business.

If we’re to continue our growth trajectory as a destination, we must be bold, agile and achieve ground-breaking results. Our strategies are yielding fruit, and we have some fantastic creative minds working with us to amaze and delight visitors.

PAGE 2 GLOBAL ACCOLADES FOR CAPE TOWN 2018/19

One of World’s World’s Best City Friendliest Cities - 2018 Telegraph Travel Awards survey Top Ten Spot In Global Bucket List of Places To Visit - Big 7 Travel

BEST CITY IN AFRICA & WORLD’s Leading Festival & MIDDLE EAST Events Destination - Travel + Leisure World’s Best Awards - World Travel Awards

Africa’s Leading City Africa’s Leading City Break Destination Destination -World Travel Awards - World Travel Awards

Cape Town’s locals are full of life and warmth and instantly welcome visitors to the city. It’s a safe city for travellers (once you explore with some common sense!) with “ a diverse mix of locals and an exciting energy. Our readers scored it highly on first impressions, putting it firmly as one of the friendliest cities in the world. - Big 7 Travel ” PAGE 3 Key industry indicators (1 July 2018 - 30 June 2019) CAPE TOWN INTERNATIONAL AIRPORT ARRIVALS Cape Town International Airport (CTIA) welcomed 5,4 million passengers, the third consecutive year that arrivals have exceeded 5 million passengers. This is despite the challenges our city has faced. These include political instability, depressed economy, safety and security issues, visa requirements and the drought. As a long haul destination, we continue to strive towards increasing arrivals.

4 110 738 4 MILLION TOTAL ARRIVALS YOY GHANGE 5 429 721 2%

3 MILLION

2 MILLION 1 213 488

1 MILLION 102 024 0

DOMESTIC INTERNATIONAL REGIONAL ARRIVALS ARRIVALS ARRIVALS YOY GROWTH 0% 8% 4%

Source: Airports Company South Africa (ACSA), July 2018 - June 2019

Top international Source Market arrivals to Cape Town include the United Kingdom, Germany and the U.S.A. The international source markets that saw the greatest YOY growth include India, China and Spain.

120 000 100%

100 000 80%

80 000 60% TOTAL YOY GROWTH

60 000 40%

40 000 20%

20 000 0%

0 -20% ITALY U.S.A INDIA CHINA BRAZIL FRANCE CANADA SWEDEN BELGIUM NAMIBIA GERMANY AUSTRALIA SWITZERLAND NETHERLANDS UNITED KINGDOM

PAGE 4 KEY INDUSTRY INDICATORS (1 July 2018 - 30 June 2019) ACCOMMODATION SECTOR In terms of the accommodation sector’s performance, monthly occupancy rates recorded a decline for all months with the exception of November 2018. Despite the decline, room rates have consistently increased over the period of March – June 2019.

Supply has continued to increase in both the formal and informal sector; most notably more than 17 000 accommodation options are listed for Cape Town.

The best performance for occupancy was recorded in February 2019, which is unsurprising as this is a peak month for international leisure tourism and business tourism to Cape Town. July is again at the lowest point of the trough for low season months.

R2500 100% AVERAGE ROOM RATE 0% R2000 80% REVPAR 4% R1500 60% OCCUPANCY RATE

R1000 40% 8%

R500 20%

R0 0% JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

Source: Horwath HTL Accommodation Performance Survey, July 2018 – June 2019 TOURIST ATTRACTIONS Chapman’s Peak Drive and were the only attractions that reported YOY growth. December was the peak month for attractions, but performance decreased by 5% YOY. In addition to the destination challenges, attractions reported that weather and the changes to the school holidays affected their performance. The decline in the domestic market is largely as a result of the constrained local economy.

100 000 000

10 000 000

1 127 075 915 071 1 074 657 1 149 400 1 000 000 412 535 323 535 492 950 100 000

10 000

1 000

100

10

1 Peak Drive Chapman’s Gardens Kirstenbosch Botanical Robben Island Museum Aerial Cableway Mountain Table V&A Waterfront YOY GROWTH -2% 6% -9% 0% 7% -1% -1% -5%

Source: Cape Town Tourism, Monthly Attraction Data, July 2018 – June 2019 PAGE 5 Note: Since the beginning of 2019, the V&A released their figures to reflect YOY changes only and no longer report on actuals CORPORATE SERVICES HIGHLIGHTS (1 July 2018 - 30 June 2019)

BUDGET: B-BBEE: The total expenditure incurred for the year amounts to We have managed to remain complaint for a R 54,07 million, which is R 2.96 million or 5% lower seventh consecutive year. The list of the BEE levels than the R 57,04 million budgeted. of suppliers, published internally to guide preferred procurement, was stringently followed in order to TRAINING AND DEVELOPMENT: obtain a better score for procurement. During the 2018/19 fiscal 72 training interventions were held for our team members. WORK-BASED LEARNING PROGRAMME: We hosted 8 students from various institutions. LIQUIDITY: We achieved a positive current liquidity ratio of 2.81:1, STAFF ENGAGEMENT: which was slightly lower in comparison to the prior We held a memorable annual Achiever Awards year of 3.10:1. and team year-end function on 7 December 2018. Colleagues were able to enjoy in a festive carnival TALENT MANAGEMENT: setting while celebrating those who excelled in Aligned with several other employee add-on benefits 2018. Special acknowledgement was given to two and initiatives designed to attract top talent in the service employees for service in excess of 20 marketplace and in furthering our efforts to retain our and 25 years, with three team members being own sought-after team members, we identified talent acknowledged for 15 years’ service and two for retention and attraction as a key strategic pillar in our 10 years. HR strategy. Several projects were launched during the 2018/2019 fiscal to support these initiatives namely Applicant Tracking System, Succession Planning and the Culture, Climate and Engagement Survey.

PAGE 6 TOURISM MARKETING HIGHLIGHTS (1 July 2018 - 30 June 2019) Neighbourhood Routes Development We successfully piloted our Neighbourhood Routes development model in Khayelitsha. This programme promotes transformational tourism in disadvantaged areas. We support and guide developing tourism products with the aim to get them to a stage of market-readiness. The model includes the identification of local curators and themed routes.

Once the routes were finalised, we hosted a media and trade day in Khayelitsha with fantastic public awareness results featuring prominently in 11 editions of the Sunday Times, who ran the exclusive story leading up to the launch.

Coverage also included radio interviews on Cape Talk, Smile FM and Heart FM. In partnership with MapMyWay, these routes inspired both online and offline maps to be published. CPUT Partnership We signed a training agreement with CPUT Tourism and Events Management department which aims to empower and uplift the tourism industry by cross-pollinating skills development between SMMEs and students. Annually we host our Love Cape Town Marketing Incubator, which both educates students and SMMEs with fresh material whilst using real-life businesses to practically apply their skills. This was picked up by the media and was featured in Entrepreneur Magazine as a forward-thinking joining of forces.

New York & CTT Twinning Campaign We are in the second year of the partnership with NYC & Company (NYCM), with the aim of growing tourism between the two destinations. Our second campaign ran in June 2019, and the ‘Nowhere Better’ creative was used on bus shelters and Link kiosks around New York culminating in 29 million impressions. We also partnered with United Airlines who will be launching their first direct flight from NYC-CPT in December 2019 and contributed a further $750k in exposure by running another campaign in Chicago in June and July promoting the new route.

PAGE 7 TOURISM MARKETING HIGHLIGHTS (1 July 2018 - 30 June 2019) Domestic Campaign

This year we took a very different approach, shifting from pretty location pictures, to insightful and entertaining storytelling in-line with global trends. We ran a social media driven campaign (with a comedic viral video at its core) that tackles the perceptions of Cape Town head- on in a self-effacing manner that is authentic, honest and endearing that all South Africans can laugh at together.

The #CPTWinterSong launched on 4 June 2019, in partnership with Mango Airlines. The response has been overwhelmingly positive from both a consumer and media perspective. The video received over 1,2 million views in the first month of the three-month campaign. Muslim-Friendly Tourism

The continued roll-out and development of our Muslim-Friendly Programme generated a massive amount of coverage both locally and internationally. This campaign is a great example of tangible work being done in growing the tourism sector, and in transforming industry perceptions via thought leadership. We secured a number of speaking opportunities at various travel shows around the world including Arabian Travel Market, WTM London, ITB Asia and the SAT Middle East Roadshow.

Our Muslim-friendly industry training programme continued this year with Crescent Rating providing Sector Immersion Training to our accommodation, restaurant, tour operator and attraction partners.

PAGE 8 TOURISM SERVICES FACTS AND FIGURES (1 July 2018 - 30 June 2019) INDUSTRY SERVICES 182 NEW 32 1 434 1 497 MEMBERS MEMBERS TOTAL CTT INDUSTRY ATTENDING EVENTS EVENTS

INCREASE IN VISITOR INTERACTION: MEMBER NETWORKING EVENTS: The Visitor Services team interacted with 364 085 CTT arranged and hosted 32 Member networking visitors through our network of VIC’s, Mobile and events. These events were attended by 1434 members. Travel-Wise Ambassadors, which is 4 085 more visitors Our Partners Union Pay, Tsogo Sun, , than they interacted with during the previous year. Vodacom, Old Mutual and Aquila presented their products and relevant offerings at 16 of these sessions. TOURISM AMBASSADOR PROGRAMME: The very successful Tourism Ambassador Programme SMALL BUSINESS MEMBERS: was expanded from the CBD into the BoKaap. The 49 Different small business members were provided programme receives recognition and support from with a platform to introduce their products and SAPS, HAWKS and Business Against Crime. The experiences to 748 members and other stakeholders. Tourism Ambassadors interacted with 51 993 visitors over the 8 months since they have been appointed. CAPE TOWN INTERNATIONAL AIRPORT: Activations at Cape Town International Airport were VISITORS LOVE THANDO: successfully negotiated for 21 members for a period of Activation of the latest mobile VIC, Thando 3 four months during Cape Town’s high season. allowed us to increase our activities, reach and support for events, members and visitor interactions. Going forward, the city will drive increased Thando 3 was launched by Alderman James Vos at the Cape Town Cycle Tour. The Mobile team interactions international, domestic and regional tourism increased by 10.2% year on year to 85 995. The team “ growth, especially via the air routes. also took part in 414 events, which was 98 more than - Alderman James Vos, Mayoral Committee Member the previous year. for Economic Opportunities and Asset Management” SERVICE EXCELLENCE: Our new Mystery Shopper Programme was launched in January 2019 with our front line team continuing to provide excellent service. The average score for all VICs increased from 52% in January to 78% by the end of June, with the total average for six months being 74%.

PAGE 9 STRATEGIC PARTNERS

EXECUTIVE PARTNERS

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