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South African Tourism Review: Report of the Expert Panel, June 2015

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South African Tourism Review: Report of the Expert Panel, June 2015 Review of South African Tourism Report of the Expert Panel to Minister Hanekom, June 2015 SA Tourism Review: Report of the Expert Panel, June 2015 FOREWORD The pace at which the global travel market is evolving is campaign in a tough economic environment against some quite giddying – it’s one of the fastest growing economic formidable competitors. sectors in the world, and as communications’ technology and air travel have compressed the world into an The committee appointed by the Minister of Tourism, Mr. increasingly accessible global village, so has the competition Derek Hanekom, to review the mandate, functioning, for a slice of the travel market heated up. Countries invest institutional and governance arrangements of SA Tourism considerable resources and state-of-the-art technologies in has been mindful of the challenging task that SA Tourism making sure that their destinations are top-of-mind when faces. Our goal has been to ensure that SA Tourism is fit for people make travel choices. purpose, and we trust that our criticisms and recommendations are taken in that spirit. Destination marketing is now a highly specialised business, and is constantly evolving - for example digital made up 25% We have called on a wide range of stakeholders, including of destination marketing budgets last year, but in five years’ the management team and Board of SA Tourism, to time that figure is going to be more like 75%. ‘Connected’ participate in this process, and the views and insights that consumers and ‘automated’ travellers make mobile were shared with us have contributed enormously to our bookings and use on-line services like Trip Advisor to inform findings. We thank you one and all for your time and product choices. interest. Sitting as it does on the southern tip of Africa, South Africa is I would like to thank the members of the committee who a long haul destination for many international visitors have each made such valuable contributions to the work although it is from our region that we draw the most visitors. required in producing this report. The committee members But we are also blessed with an incredibly unique history, a are: melange of vibrant cultures and a bounty of natural assets. Mavuso Msimang Nothing quite compares to the vast openness of the South Tanya Abrahamse (until the announcement of her African landscape, layered with meaning through the appointment as deputy-chair of the SA Tourism passage of time. For the traveller who makes the journey to Board on 30 April 2015) explore South Africa, the experiences on offer stand apart in Nunu Ntshingila-Njeke their uniqueness. And the journey is the destination, as a Kate Rivett-Carnac Kenyan photojournalist, Dan Eldon, once wrote. Jeanine Pires Crispian Olver (deputy Chair) South African Tourism is the agency tasked with marketing Myself as Chair South Africa as a destination, both internationally and to our domestic market. It has a difficult job, not least because We are grateful to the Minister and national Department of many of the obstacles to tourism growth in our country – Tourism for the trust you have bestowed on us, and we hope visa and other immigration regulations, airlift, safety and in some small way to have contributed to the task you have security – are beyond its immediate control. For this reason of leading this vitally important sector of our economy. it needs to do its job in partnership with many actors and agencies – provincial and city tourism authorities, national Regards departments, and most importantly, the tourism industry itself who has to convert destination awareness into real life travellers. Valli Moosa This means that SA Tourism needs a highly competent team Chairperson: SA Tourism Review Committee capable of collaboratively leading a global marketing ii SA Tourism Review: Report of the Expert Panel, June 2015 Contents FOREWORD ................................................................................................................................................. ii List of Acronyms ...........................................................................................................................................v EXECUTIVE SUMMARY ................................................................................................................................ vi 1. Introduction ............................................................................................................................................ 1 1.1 Background ................................................................................................................................................................. 1 1.2 Approach .................................................................................................................................................................... 1 2. Overview of the Tourism Economy ......................................................................................................... 3 2.1 Why Tourism Matters ................................................................................................................... 3 2.2 Global Tourism Performance ....................................................................................................... 3 2.2.1 Global international tourist arrivals ....................................................................................................................... 3 2.2.2 Contribution to the Global Economy...................................................................................................................... 4 2.2.3 Future Outlook ....................................................................................................................................................... 5 2.3 SA Tourism Performance .............................................................................................................. 6 2.3.1 International tourism ............................................................................................................................................. 6 2.3.2 Domestic Tourism .................................................................................................................................................. 9 2.3.3 Contribution to the SA Economy ............................................................................................................................... 10 2.3.4 Industry Performance ............................................................................................................................................... 11 2.4 Summing it up: the opportunity ................................................................................................. 13 3. Key findings ........................................................................................................................................... 14 3.1 The Role and Mandate of South African Tourism ...................................................................... 14 3.2 International Marketing ............................................................................................................. 18 3.3 Domestic Tourism ....................................................................................................................... 23 3.4 Tourism Grading Council of South Africa ................................................................................... 27 3.5 South African National Convention Bureau ............................................................................... 30 iii SA Tourism Review: Report of the Expert Panel, June 2015 3.6 Institutional positioning and partnerships ................................................................................. 34 3.7 Strategy, analytics and market intelligence ............................................................................... 39 3.8 Organisational Structure and Human Resource Development .................................................. 44 3.9 Budget and Finance .................................................................................................................... 49 3.10 Governance ............................................................................................................................. 56 3.11 Performance Management and Monitoring .......................................................................... 59 3.12 National Department .............................................................................................................. 62 5. Conclusion ...................................................................................................................................... 66 Annexure A: Full list of Recommendations, by Area ................................................................................ 67 Annexure B: List of Consulted Stakeholders ............................................................................................. 72 Annexure C: Bibliography .......................................................................................................................... 77 Annexure D: Chinese Tourism case study ................................................................................................. 82 Annexure E: King III Summary and Excerpts ............................................................................................. 91 iv SA Tourism Review: Report of the Expert Panel, June 2015 List of Acronyms ExCo: Executive Committee GDP: Gross Domestic Product CITS: China International Travel Services
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