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Chapter 4 National & Regional Tourism Market Assessment

Chapter 4 National & Regional Tourism Market Assessment ...... 4-2 4.1 Introduction...... 4-2 4.2 Analysis of South African tourism economy...... 4-3 4.2.1 3. Growth Overseas Arrivals 1994 – 2007 ...... 4-3 4.2.2 Accommodation Usage Foreign Tourists to Bed Nights...... 4-4 4.2.3 Foreign Tourism Accommodation Usage (bed nights) Per Quarter...... 4-4 4.2.4 Foreign Tourism Accommodation Usage (bed nights) Per Quarter...... 4-5 4.2.5 Benchmarks and Trends ...... 4-5 4.2.6 Competitor Analysis:...... 4-6 4.3 Provincial Distribution – Visitors ...... 4-7 4.3.2 Some Strategic Priorities...... 4-23

Figures

Figure 14 International arrivals to the Western Cape by quarter from 2005 to 2008. 4-17

Figure 15 International arrivals to the Western Cape by region of origin in 2007 and 2008...... 4-18

Figure 16 Top ten countries of origin for international arrivals to the Western Cape in 2008...... 4-18

Figure 17 Performance of domestic tourism in the Western Cape in 2008...... 4-19

Figure 18 Country of origin of visitors to the Western Cape in 2007 and 2008...... 4-20

Figure 19 The province of origin of domestic visitors on the Garden Route...... 4-22

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4.1 Introduction The global market for travel and tourism in 2007 continued to show resilience with 903 million international visitors (up 5.6% over 2006) spending US$856 billion (up 5.6% over 2006).

Tourism’s contribution to GDP in South Africa is estimated to have increased from 7.9% (R137.6 billion) in 2006 to 8.1% (R159.6 billion) in 2007. South Africa recorded its highest number of foreign arrivals in 2007 and reached a milestone of just over 9 million foreign arrivals. This is an increase of 8.3% over 2006 and shifted South Africa from 29th to 28th position in the global tourism rankings. 4.2 Analysis of South African tourism economy

2005 2006 2007 2008 Total Foreign Tourist Arrivals 7,368,742 8,395,833 9,090,881 Total Overseas Tourists 1,939,214 2,078,704 2,175,518 Total Foreign Direct Spend R65,4bn R74,2bn R77,7bn Average spend per foreign tourist R8,500 R8,300 R7,000 Average spend per day R1,000 R1,000 R880 Total Domestic Direct Spend R21,2bn R16,5bn - Tourism contribution to GDP R124,0bn R137,6bn R159,6bn Tourism contribution to GDP % 8.2% 7.9% 8.1% Direct employment in tourism 393,650 404,800 413,100 Indirect employment in tourism 478,630 492,100 527,900 Average Length of Stay 8 nights 8 nights 8 nights Total bed nights spent in SA - 66,5m 68,2m Average number of provinces visited 1,41 1,35 1,3 (Source: SA Annual Tourism Reports 2005 – 2007)

Although the growth of foreign tourist arrivals continues to increase a noticeable trend is shorter stays and fewer provinces visited. It would appear that overseas tourists enter one province and exit from another province. First destinations are logically those provinces with an international airport.

4.2.1 3. Growth Overseas Arrivals 1994 – 2007

YEAR ARRIVALS % GROWTH 1994 704 585 13,9% 1995 1 071 660 52,1% *Rugby World Cup 1996 1 172 394 9,4% 1997 1 273 936 8,7% 1998 1 428 401 12,1% 1999 1 491 059 4,4% 2000 1 531 720 2,7% 2001 1 558 498 1,8% 2002 1 803 887 20,1% * World Summit (WSSD) 2003 1 879 110 4,2% * Cricket World Cup 2004 1 884 336 0,3%

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2005 1 939 214 2,9% 2006 2 078 704 7,2% 2007 2 175 518 4,7% (Source: Compiled by Kyle Business Projects from SAT Reports)

The impact of hosting world-class events is clearly indicated in the above table. This signals an early warning alarm and incredible opportunity for tourism growth when South Africa hosts the FIFA World Cup in 2010.

4.2.2 Accommodation Usage Foreign Tourists to South Africa Bed Nights

Establishment 2003 2004 2005 2006 2007 Hotels 14,683,912 13,534,840 13,332,598 14,241,399 13,894,191 Guest Houses 3,903,069 3,919,362 3,872,463 4,362,696 4,892,735 Bed & Breakfasts 3,167,420 3,164,880 3,673,093 3,432,697 3,692,741 Game Lodges 2,905,801 2,804,163 2,562,387 3,196,640 2,767,692 Self-catering units 4,336,750 3,951,303 5,793,860 7,433,421 7,979,865 VFR 26,237,467 28,314,501 Backpacking Hostels 3,321,407 3,007,731 3,194,332 2,482,727 2,794,567 Camping & Caravan 1,237,627 1,183,786 1,015,201 950,244 954,955 Parks Trains/Ships 3,521,699 1,059,860 128,651 125,775 216,007 Hospitals 524,476 Other 3,508,985 TOTAL 66,496,527 68,210,760 (Source: SA Annual Tourism Reports 2003 - 2006)

Commentary:

The table above indicates recent growth in the demand for self-catering units by foreign tourists and it is assumed that these are mainly independent travellers. Group tours usually purchase an inclusive package of which pre-booked hotel accommodation is included in the package. Gaps in the above information indicate that the same data is not captured every year.

4.2.3 Foreign Tourism Accommodation Usage (bed nights) Per Quarter

Establishments Q1 Q2 Q3 Q4 2005 2005 2005 2005 VFR 6,600,062 5,381,807 5,603,726 6,011,909 Hotels 3,474,156 2,843,103 2,999,938 4,015,400 Guest Houses 921,565 806,264 1,003,595 1,141,039 Game Lodges 552,310 528,625 707,884 773,668 Self-catering units 1,084,325 1,386,391 1,533,324 1,789,820 Bed & Breakfasts 929,318 726,113 853,305 1,164,358 Other establishments 911,003 548,750 373,735 828,281 Backpacking hostels 963,641 535,233 851,932 843,626 Camping/caravan parks 224,072 252,970 292,000 246,159 Hospitals 75,934 136,706 86,185 137,397 Version 3 Chapter 4 4 -4

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Trains/ships 28,303 17,289 32,520 60,539 (Source: SA Tourism Quarterly Reports)

Commentary:

The table above indicates the seasonality of accommodation used by foreign tourists visiting South Africa. Generally for most establishments Q1 and Q4 are the quarters when most bed nights are sold i.e. seasonal demand.

4.2.4 Foreign Tourism Accommodation Usage (bed nights) Per Quarter

Establishments Q1 Q2 Q3 Q4 2006 2006 2006 2006 VFR 7,568,648 6,408,553 6,114,404 6,145,862 Hotels 4,255,856 2,751,091 3,144,954 4,089,498 Guest Houses 1,445,585 1,010,753 762,106 1,144,242 Game Lodges 680,503 709,396 836,068 970,673 Self-catering units 1,326,821 1,807,610 1,783,710 2,515,380 Bed & Breakfasts 1,015,983 642,599 760,125 1,013,990 Other establishments 779,627 1,099,573 608,337 1,021,448 Backpacking hostels 569,997 559,979 577,859 774,892 Camping/caravan parks 256,528 252,276 182,991 258,449 Hospitals 172,613 82,985 130,431 138,447 Trains/ships 17,877 25,480 14,285 68,133 (Source: SA Tourism Quarterly Reports)

4.2.5 Benchmarks and Trends

SA TOURISM QUARTERLY REPORTS 2004 - 2007 WESTERN CAPE PROVINCIAL DISTRIBUTION BED NIGHTS SPENT IN PROVINCE Quarters Provincial Provincial Distribution Distribution (Share of Bed Nights) (Number of Bed Nights) Q1 2004 36.0%% 5,638,307 Q2 2004 24.6% 3,046,637 Q3 2004 20.7% 2,826,570 Q4 2004 30.1% 4,702,733 TOTAL 16,214,247

Q1 2005 34.4% 5,418,263 Q2 2005 26.5% 3,500,238 Q3 2005 20.6% 2,948,994 Q4 2005 29.2% 4,939,090 TOTAL 16,806,575

Q1 2006 30.6% 5,535,596 Q2 2006 30.2% 4,613,164 Q3 2006 26.5% 3,952,562

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Q4 2006 32.8% 5,935,627 TOTAL 20,036,949

Q1 2007 33.7% 5,733,357 Q2 2007 27.4% 4,162,059 Q3 2007 26.0% 4,252,117 Q4 2007 30.1% 5,933,686 TOTAL 20,081,219 (Comparative tables compiled by Kyle Business Projects)

Commentary:

According to the above figures, there was an increase of 4% in bed nights spent in the Western Cape when comparing 2005 with 2004

• From the above figures it appears that some 3,230,374 more bed nights were spent in the Western Cape when comparing 2006 with 2005. This is an increase of 19% over the previous year. • On average the Western Cape remains the 2nd most popular destination for foreign tourists in South Africa with Q1 and Q4 remaining the most popular quarters for foreign visitors (November to March) • According to the recently released SA Annual Tourism Report 2007 it appears that some 44,270 more bed nights were spent in the Western Cape when comparing 2007 with 2006. This is a marginal increase of less than 1% over the previous year. • A competitor analysis is included on the next page.

4.2.6 Competitor Analysis:

Rank Province Bed Nights 2006 Bed Nights 2007 Bed Nights 2008 1. Gauteng 19,886,000 (29.9%) 22,347,000 (32.8%) 25,457,097 (33.8%) 2. Western Cape 19,789,000 (29.7%) 20,081,000 (29.4%) 21,077,852 (28.0%) 3. KwaZulu Natal 8,819,000 (13.2%) 7,953,000 (11.7%) 8,426,173 (11.2%) 4. Mpumalanga 4,481,000 (6.7%) 4,456,000 (6.5%) 5,387,477 (7.2%) 5. 4,259,000 (6.4%) 3,951,000 (5.8%) 3,898,523 (5.2%) 6. Free State 3,330,000 (5.0%) 3,686,000 (5.4%) 4,909,934 (6.5%) 7. Limpopo 2,897,000 (4.3%) 2,903,000 (4.3%) 3,429,687 (4.6%) 8. North West 1,813,000 (2.7%) 1,878,000 (2.8%) 2,023,335 (2.7%) 9. Northern Cape 1,223,000 (1.8%) 955,000 (1.4%) 684,474 (0.9%) TOTAL 66,496,000 (100%) 68,210,000 (100%) 75,294,552 (100%) (Comparative tables compiled by Kyle Business Projects from SA Annual Tourism Reports)

Commentary:

• The average spend in SA per foreign visitor decreased from R1 000 in 2006 to R880 in 2007 • The average length of stay in South Africa decreased from 8.2 nights in 2006 to 7.9 nights in 2007

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• The average number of provinces visited by all foreign tourists is 1.3 suggesting that foreign tourists are no longer visiting all provinces in South Africa but are selecting only one or two provinces to visit during their stay. This suggests that provinces are either first or second destinations either • by choice or because they have to enter South Africa via international airports in those provinces. • It would appear that those provinces that have international airports are likely to be first destinations and any other province visited is a second destination. • In this regard it is likely that Mpumalanga gets a spin off from foreign tourists arriving in Gauteng. • However, there is a possibility that the growing number of private game reserves and the expansion of national parks and provincial nature reserves in the Western Cape is starting to impact on the number of visitors travelling up the Garden Route to visit the Eastern Cape game parks and nature reserves. 4.3 Provincial Distribution – Visitors Western Cape

(Indicates the provinces visited and not provinces where nights were spent)

2004 2005 2006 2007 Africa & Middle East 8.4% 9% 7% 5.9% Angola 14.8% 15% 11% 13.5% Botswana 2.0% 2% 4% 1.8% Kenya 16.3% 18% 16% 16.6% Lesotho 5.6% 9% 7% 3.9% Malawi 10.0% 14% 15% 9.3% Mozambique 3.2% 3% 4% 2.9% Namibia 68.7% 60% 44% 49.8% Nigeria 16.5% 20% 20% 16.0% Zambia 10.5% 15% 13% 10.9% Zimbabwe 10.0% 9% 6% 6.6% Other Africa & Middle East 25.7% 26% 27% 28.2% Americas 52.6% 52% 57% 55.3% Brazil 37.8% 27% 42% 52.4% Canada 50.5% 55% 60% 59.4% USA 53.9% 52% 57% 54.6% Other Americas 56.7% 65% 71% 58.1% Asia & Australasia 51.6% 50% 53% 48.2% Australia 55.7% 50% 54% 50.2% China 58.8% 55% 55% 53.1% India 34.4% 26% 33% 33.0% Japan 54.8% 61% 74% 58.5% Other Asia & Australasia 48.7% 52% 51% 47.9% Europe 64.4% 63% 67% 66.3% France 61.1% 60% 63% 65.5% Germany 69.2% 67% 72% 75.6% Italy 67.3% 67% 65% 66.3%

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Netherlands 59.0% 59% 60% 57.9% Sweden 67.4% 68% 67% 72.8% United Kingdom 66.4% 66% 69% 66.3% Other Europe 58.8% 56% 63% 61.1% All Foreign Tourists 22.9% 22% 21% 19.4% (Analysis of SA Tourism Reports by Kyle Business Projects)

Commentary:

The figures in the above table do not represent market share but rather tourism growth from source markets e.g. the UK is the biggest supplier of foreign tourists to South Africa and 66% of the foreign arrivals from the UK visit the Western Cape. Namibia is by far the biggest source market from the African countries for the Western Cape accounting for 56% of the total foreign arrivals from Africa and the Middle East. Germany is the biggest source market for the Western Cape accounting for 76% of the total foreign arrivals from Europe.

4.3.1.1 Foreign Tourist Arrivals to SA 5-Year Cumulative Growth 2003 - 2007

Country of 2003 2004 2005 2006 2007 Growth Residence % United Kingdom 456,468 456,368 469,599 488,032 497,697 9% Germany 257,018 245,452 249,504 258,517 254,934 -1% USA 187,447 208,159 233,417 254,757 276,941 48% Netherlands 120,933 120,838 116,244 124,689 129,022 7% France 127,760 109,276 101,139 106,088 115,074 -10% Nordic 73,405 78,294 84,557 94,514 98,658 34% Countries Australia 71,687 75,675 77,238 89,396 95,571 33% Italy 49,818 50,429 51,464 53,605 54,807 10% Total top - 8 1,337,540 1,345,142 1,375,926 1,469,598 1,522,704 14% South America 40,357 45,296 47,818 54,421 57,473 42% India 41,018 36,172 36,045 44,337 51,823 26% China 42,822 51,080 44,228 41,962 47,378 11% Switzerland 35,640 36,786 39,069 41,376 38,110 7% Belgium 42,735 37,277 38,502 40,052 42,643 0% Middle East 31,814 31,653 33,551 36,724 41,186 29% Japan 21,311 23,091 27,284 31,989 31,855 49% New Zealand 16,387 16,348 17,825 18,305 18,853 15% Total next - 8 279,080 277,052 258,513 309,166 329,321 18% Rest of 262,490 262,142 304,775 299,940 323,493 23% Overseas Total Overseas 1,879,110 1,884,336 1,939,214 2,078,704 2,175,518 16% Africa by Air 285,008 311,019 376,157 247,000 280,831 Africa by Land 4,168,242 4,331,052 4,997,510 6,037,344 6,626,731 Total Africa 4,453,250 4,642,071 5,373,667 6,284,344 6,866,376 54% Unspecified 172,530 151,453 55,861 32,785 48,987 Grand Total 6,504,890 6,677,860 7,368,742 8,395,833 9,090,881 40% (Source: Table compiled by Kyle Business Projects, from SA Tourism Annual Reports)

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Commentary:

• There are reportedly 63-million Chinese overseas travellers. China moved up from 15th place in 2000 to the eighth most important overseas tourism supply market to South Africa in 2004. China dropped to 11th place in 2006 and 2007 mainly as a result of perceptions of South Africa being a dangerous place to visit. • The Nordic Countries collectively comprise Denmark (26,010), Finland (9,281), Norway (20,595) and Sweden (42,772). • The US market has been averaging 10% per annum growth rate. • Italy moved up from 9th place in 2005 to 8th place in 2006 and 2007. • India moved up from 13th place in 2005 to 10th place in 2006 and 2007. • 4% of foreign tourists from Africa arrive by air transport and the rest arrive by road (mainly cross border). After stagnating at a growth rate of about 1.5% per annum compared to the top ten overseas tourism markets, Africa has picked up and is now averaging 11% per annum growth rate. 4.3.1.2 Foreign Tourist Spend per day in SA by Purpose of Visit 2004 - 2006

Year All Foreign Holiday Business VFR Tourists Other Tourists Tourists Tourists Tourists 2004 R1,400 R860 R2,636 R629 R1,038 2005 R1,472 R861 R1,151 R579 R 788 2006 R1,000 R700 R 900 R400 R 400 (Compiled by Kyle Business Projects from SA Tourism Reports)

The methodology and system for calculating foreign tourist expenditure was revised in 2008 and in future will be reported as below.

4.3.1.3 Total Foreign Direct Spend (TFDS) in South Africa by Category 2005 – 2007

2005 2006 2007 Accommodation R 8,700 R 9,600 R 8,800 Local Transport R 5,800 R 6,500 R 5,700 Food R 5,900 R 6,500 R 6,600 Leisure R 3,400 R 3,400 R 4,400 Medical R 1,500 R 1,600 R 1,500 Other R 700 R 1,100 R 1,600 Unaccounted R 2,400 R 1,400 R 300 TOTAL R28,400 R30,100 R28,900 Shopping R31,900 R36,000 R30,900 (Source: Compiled by Kyle Business Projects from SA Annual Tourism Reports)

The figures do not add up to 100% because tourists participate in more than one activity.

4.3.1.4 Provincial Distribution of Foreign Tourists % Share of Visitors

Province 2005 2006 2007 Gauteng 49.4% 47.8% 49.3%

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Western Cape 21.6% 20.7% 19.4% KwaZulu Natal 21.7% 17.1% 15.4% Mpumalanga 14.9% 14.1% 12.8% Free State 8.7% 9.8% 10.4% North West 8.0% 7.1% 6.7% Eastern Cape 7.6% 6.6% 5.7% Limpopo 7.0% 7.8% 8.2% Northern Cape 2.6% 3.5% 2.5% (Compiled by Kyle Business Projects from SA Annual Tourism Reports)

4.3.1.5 Provincial Distribution of Foreign Tourists % Share of Bed Nights

2004 2005 2006 2007 31% 31% 30% 33% 28% 28% 30% 29% 15% 16% 13% 12% 7% 7% 7% 7% 6% 6% 6% 6% 5% 4% 5% 5% 3% 4% 4% 4% 3% 3% 3% 3% 1% 1% 2% 1%

CTIA 2004 2005 2006 2007 Aircraft Landings 46,222 46,274 44,459 45,654 Departing 2,748,000 3,121,000 3,433,000 3,768,000 Passengers (Source: ACSA Annual Report 2007)

4.3.1.6 18. George Airport

• 299 767 departing passengers • 23 556 air traffic movements • Current consolidated capacity 800 000 passengers • Public parking bays – 330

The upgrade of George Airport was successfully completed during the period under review and it now boasts a world-class facility reflecting the unique identity associated with its environment. The upgrade was not limited to the terminal building as both the landside and airside facilities were upgraded with a significant increase in capacity.

George 2005 2006 2007 Aircraft Landings 11,307 13,499 23,556 Departing Passengers 54,000 52,000 55,000 (Source: ACSA Annual Report 2007)

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4.3.1.7 Type of Package Used by Foreign Tourists to SA 2006

• Fully inclusive package is where airfare, accommodation, coach tours and food are all included • Full package is where airfare, accommodation and food is included • Package is where airfare and accommodation is included • Independent travellers book airfare, accommodation, coach tours and food separately

Province Percentage Value of trips Gauteng 19,6% R 3 248m Kwazulu-Natal 19,0% R 3 148m Limpopo 12,9% R 2 137m Eastern Cape 12,8% R 2 121m Western Cape 12,5% R 2 071m North West 7,9% R 1 309m Free State 6,7% R 1 110m Mpumalanga 5,7% R 944m Northern Cape 2,7% R 447m TOTAL 100,0% R16 569m (Source: SA Domestic Tourism Survey 2001)

The above table indicates that the Western Cape is the fifth most popular holiday destination for domestic tourists in South Africa (Although the percentage market share of the Eastern Cape, Western Cape and Limpopo provinces are virtually the same this does not correlate with previous surveys).

The annual summer holiday at the coast is still the most popular attraction for most South Africans. There are only three provinces in South Africa with a coastline and hence it is expected that these would receive the majority of domestic tourists trips in the summer holiday season.

Number Holiday, Business or Trips for Trips for Total trips of trips leisure & professional trips health religious recreation treatment reasons One 2,956,163 418,991 617,487 2,304,810 12,825,311 Two 1,487,840 215,522 147,678 1,177,044 7,869,166 Three 1,188,174 138,639 45,363 402,840 4,328,592 Four 478,024 66,632 308,004 2,336,912 Five 235,385 61,215 541,455 1,523,685 Six 540,012 559,332 4,617,872 TOTAL 6,885,599 1,460,331 810,528 4,734,153 33,501,538 % 21% 4% 2% 14% 100% R Value R9 753m R894m R298m R1 104m R16 569m (Source: Domestic Tourism Survey 2001)

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4.3.1.8 Western Cape Domestic Tourism Regions 2001 The Western Cape was divided into 10 tourism regions for the purpose of the 2001 domestic tourism survey. The 10 regions were:

• West Coast (Dwarskerbos, Paternoster, Langebaan, Vredenburg)

• Winelands (Wellington, , , Franschoek)

• (Worcester, Ceres, Montagu, Tulbagh, Robertson)

• Central (, Murraysburg, Laingsburg, Prince

Albert)

• Garden Route (, , , George, Wilderness)

• Klein Karoo (, Uniondale, , )

• Cape Metropole ( Central, South Peninsula, Blaauberg)

• and Sandveld (Elandsbay, Piketberg, Malmesbury,

Morreesburg)

• Olifants River Valley (Clanwilliam, Lutzville, Citrusdal)

• (Gansbaai, Grabouw, Napier, Swellendam, Struisbaai)

Tourism Region Leisure VFR Business Health Religious West Coast 148,438 111,328 1,662 9,693 5,815 Winelands 55,454 127,495 12,378 14,112 38,125 Breede River 164,869 122,456 8,610 - 22,961 Central Karoo 45,695 36,740 4,708 - 5,169 Garden Route 454,175 185,799 18,580 5,505 24,085 Klein Karoo 50,352 42,275 4,301 839 7,238 Cape Metropole 518,613 1,048,379 143,130 61,341 85,506 Swartland & Sandveld 9,064 41,289 5,035 - 7,490 Olifants River Valley 83,458 109,994 13,482 - 7,062 Overberg 196,108 117,597 3,399 1,699 21,412 TOTAL 1,726,226 1,943,352 215,285 93,189 224,863 (Source: Domestic Tourism Survey 2001)

Commentary:

• The 2001domestic tourism survey provides some useful information with respect to the movement of domestic tourists to the various tourism regions

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within the Western Cape. The Cape Metropole and Garden Route are the most popular tourism regions. • The majority of domestic tourists come from within the Western Cape Province (intra-provincial). Nearly 60% of the domestic tourism trips were intra-provincial in 2001.

Information North KZN Gaut Mpum Free North Limp Types Cape State West Family & Friends 65,3% 60,1% 64,5% 66,1% 63,4% 65,5% 72,4% Radio 23,2% 18,0% 21,7% 19,6% 23,0% 24,5% 18,7% Television 17,3% 18,2% 18,6% 13,1% 15,1% 17,9% 10,2% Magazines 16,1% 11,7% 12,6% 8,5% 9,8% 9,6% 6,9% Newspapers 16,7% 14,6% 16,5% 11,6% 9,6% 12,0% 9,3% Brochures 15,2% 12,5% 9,0% 6,3% 8,8% 5,2% 3,3% TIC’s (Bureaus) 15,1% 7,4% 5,5% 3,2% 5,4% 3,0% 2,0% Colleagues 5,1% 5,6% 5,4% 6,4% 4,2% 4,4% 4,0% Tourist Books 7,8% 4,5% 3,7% 2,9% 4,2% 2,0% 1,5% Internet 5,7% 5,4% 3,9% 3,7% 3,2% 2,7% 1,5%

(Source: Domestic Tourism Survey 2001)

The above table illustrates the importance of the visiting friends and relatives market (VFRs) and also the power of personal recommendation.

4.3.1.9 Analysis of Activities Undertaken by Domestic Tourists in 2005

Activity Q2 Q3 Q4 Social 49.9% 50.6% 63.2% Shopping 13.3% 15.9% 20.7% None 13.2% 9.5% - Beach 4.2% 3.8% 7.1% Nightlife 6.0% 6.6% 8.3% Casino 1.6% 1.4% 1.7% Business 4.0% 2.6% 3.6% Natural - 1.6% 3.4% Wildlife - - 2.7% Sporting 1.4% - 0.8% (Source: Compiled by Kyle Business Projects from SA Tourism Quarterly Reports)

4.3.1.10 Analysis of Provincial Distribution Domestic Tourism 2005

Province Q2 Q3 Q4 KwaZulu Natal 12.1% 30.7% 29.3% Gauteng 7.8% 19.6% 18.9% Eastern Cape 3.6% 5.6% 9.8% Western Cape 3.1% 7.3% 7.4% Limpopo 1.2% 10.3% 9.5% Mpumalanga 0.8% 3.1% 5.0% North West 3.4% 11.0% 11.8% Free State O.9% 7.8% 7.0% Northern Cape 0.7% 3.6% 1.2%

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(Source: SA Tourism Provincial Quarterly Reports 2005)

Commentary:

The tables on the previous page clearly indicate the seasonality of domestic tourism and the impact of long-haul and short-haul domestic tourism. The methodology and system for measuring domestic tourism has changed in 2006 and will probably change again when the results of the 2007 Domestic Tourism Survey is released.

KwaZulu Natal is South Africa’s leading domestic tourism destination mainly because of its proximity to the main Gauteng domestic tourism supply market and its warmer all year round climate. KZN has been very successful with its off- season marketing campaigns.

It is generally accepted based on an analysis of previous domestic tourism surveys that the Western Cape is the fourth most popular domestic tourism destination in South Africa. This is influenced by the number of long-haul domestic tourists from Gauteng who select provinces mainly for beach tourism in the summer holiday season. Both KZN and the Eastern Cape have the advantage of warmer waters and a more moderate climate.

4.3.1.11 Summary of Domestic Tourism Performance South Africa 2005 – 2007

Province Inter-Provincial Intra-Provincial Intra-Provincial 2006 2006 2005 KZN 1.8% 9.7% 10.2% Gauteng 6.5% 3.1% 2.4% North West 2.0% 1.7% 1.8% Limpopo 1.2% 1.9% 1.9% Eastern Cape 0.6% 2.1% 2.2% Western Cape 0.2% 2.0% 2.3% Free State 0.9% 1.1% 1.3% Mpumalanga 0.7% 0.8% 0.7% Northern Cape 0.4% 0.1% 0.2% (Source: SAT Domestic Survey 2005 and 2006)

KZN is the leading province with respect to intra-provincial trips. On average about 10% of the population travel within their own province mainly to visit friends and relatives which represents 70% of total domestic tourism travel while 2% travel to other provinces.

(Source: SA Annual Tourism Report 2005)

Province Religious Business Medical KZN 13.80% 4.36% 2.05% Gauteng 8.64% 9.61% 3.19% North West 12.18% 9.02% 3.91%

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Limpopo 17.34% 5.94% 1.01% Eastern Cape 6.14% 4.51% 0.79% Western Cape 2.62% 9.29% 2.39% Free State 7.06% 7.60% 0.89% Mpumalanga 8.31% 6.51% 0.78% Northern Cape 7.02% 12.61% 0.36% (Source: SA Domestic Tourism Survey 2005)

The above table indicates that KZN is the premier domestic tourism destination in South Africa influenced by a high level of intra-provincial travel undertaken by local residents.

Purpose Average Spend per Day by Purpose Average Spend per Day by Purpose 2005 2006 VFR R 79 R 94 Holiday R258 R143 Religious R197 R125 Business R263 R190 Medical R359 R 95 (SAT Domestic Surveys for 2005 and 2006)

• The average Spend per day for all trips was R134 in 2005 and R107 in 2006 • The average Spend per trip for all trips was R583 in 2005 and R444 in 2006

4.3.1.12 Summary statistics of tourism in the Western Cape

Number of international arrivals to the Western Cape in 2007 1 763 631

Number of international arrivals to the Western Cape in 2008 1 630 611

2007 / 2008 growth in international arrivals to the Western Cape - 7.5%

Western Cape’s share of international arrivals in 2008 17%

Total spend from international visitors to the Western Cape in 2007 R 17,9 billion

Total spend from international visitors to the Western Cape in 2008 R 20,8 billion

2007 / 2008 growth in spend from international visitors to the Western 16,2% Cape

Western Cape’s share of spend from international visitors in 2008 28%

Bednights spent in the Western Cape by international visitors in 2007 20 081 219

Bednights spent in the Western Cape by international visitors in 2008 21 077 852

Growth in bednights in the Western Cape by international visitors 5%

Western Cape’s share of bednights from international visitors in 2008 28%

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Western Cape’s share of domestic trips in 2008 12%

Receipts from domestic trips in 2008 (National) R 25,8 billion

Receipts from domestic trips to the Western Cape in 2008 R 3.9 billion

4.3.1.13 A Tourism Profile of the Western Cape Province The foreign and domestic tourism profile of the Western Cape Province is based on the analysis of SA Domestic Tourism Surveys dating back to 2001 and SA Annual Tourism Reports dating back to 2004. The compilation of the profile should only be used as a guideline because accuracy cannot be guaranteed due to the errors in the SAT domestic tourism surveys. However, the trends highlighted below tend to line up with practical observations.

• On average 30% of the total bed nights spent in SA by foreign tourists are spent in the Western Cape. • Q4 and Q1 are the most popular quarters for foreign tourists accounting for 60% of the total bed nights spent in the Western Cape. • Europe remains the most important source market for the Western Cape with Germany remaining the leading supply market from this source. The Western Cape is visited by 76% of the German foreign arrivals to South Africa. • The Western Cape only receives 6% of foreign arrivals from Africa & Middle East with Namibia remaining the main supply market from this source. The Western Cape is visited by 50% of the Namibian foreign arrivals to South Africa. • The Western Cape receives on average just over 20% of the foreign visitors to SA but 30% of the bed nights spent in SA. • Cape Town International Airport (CTIA) is recording an average annual growth of 10%. Some 20,000 passengers per day travel through the airport. The current consolidated capacity is 8.5 million passengers per annum. • George Airport has received a major upgrade and currently some 55,000 passengers per annum depart from the airport. The current consolidated capacity is 800,000 passengers per annum. • The 2001 domestic tourism survey ranked the Western Cape 5th as a holiday destination for domestic tourists accounting for 12.5% of the total domestic tourism trips. The value of these trips was calculated at R2 071 million. • According to the 2001 domestic tourism survey the Cape Metro tourism region accounted for 44% of the domestic tourism trips in the Western Cape followed by the Garden Route tourism region which accounted for 16% of the trips. • Q1 (Jan to March) remains the most popular quarter for domestic tourists visiting the Western Cape. • According to the 2005 domestic tourism survey 64% of the domestic tourism trips in the Western Cape were for the purpose of visiting friends and

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relatives mainly within the province (intra-provincial). A positive trend is that 23% if the inter-provincial domestic tourism trips were for holiday purposes. • According to the 2005 domestic tourism survey the Western Cape was ranked 6th as a holiday destination for domestic tourists accounting for 7.3% of the total domestic tourism trips. The value of these trips was calculated at R2 800 million. 4.3.1.14 Total Foreign Direct Spend (excluding capital expenditure) per Province 2003 - 2007

Province 2005 2006 2007 Gauteng R18,9bn R19,9bn R19,7bn Western Cape R16,9bn R19,8bn R17,7bn KZN R 9,5bn R 8,8bn R 7,0bn Mpumalanga R 4,1bn R 4,5bn R 3,8bn Eastern Cape R 3,8bn R 4,3bn R 3,5bn Free State R 2,5bn R 3,3bn R 3,2bn Limpopo R 2,4bn R 2,9bn R 2,6bn North West R 1,7bn R 1,8bn R 1,7bn Northern Cape R 0,9bn R 1,2bn R 0,8bn TOTAL R60,7bn R66,5bn R60,0bn (Source: Compiled by KBP from SA Annual Tourism Reports 2003 – 2007)

Figure 1 International arrivals to the Western Cape by quarter from 2005 to 2008.

(Source: Cape Town Routes Unlimited)

The Western Cape experienced an overall decline in international arrivals, except the first quarter that had a growth of 0.35%. The first quarter of 2008 is the busiest of all the quarters, yet the highest year-on-year decline (-14.2%)

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amongst the quarters compared to 2007.

Figure 2 International arrivals to the Western Cape by region of origin in 2007 and 2008.

(Source: Cape Town Routes Unlimited)

Europe is the largest region of origin for international visitors to the Western Cape in 2008 with a decline of -1.7% from 2007. International arrivals from the Asia and Australasia region had 7.5% decline in 2008 from 2007 and arrivals from the Americas had 4.6% year-on-year growth rate.

Figure 3 Top ten countries of origin for international arrivals to the Western Cape in 2008.

(Source: Cape Town Routes Unlimited)

UK was the number one source of international arrivals to the Western Cape Province in 2008, followed by Germany and the USA.

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(Source: Cape Town Routes Unlimited)

The UK, Germany and the USA ranked the top three positions in 2008 as well as in 2007 and 2006, in the total number of international arrivals to the Western Cape.

Figure 4 Performance of domestic tourism in the Western Cape in 2008.

(Source: Cape Town Routes Unlimited)

The Western Cape received 4.1 million domestic trips in 2008. Of the 3.4 million domestic trips from the Western Cape, 1.4 million visited other provinces and 1.6 million remained within the province. Version 3 Chapter 4 4- 19

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Figure 5 Country of origin of visitors to the Western Cape in 2007 and 2008.

(Source: Cape Town Routes Unlimited)

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4.3.1.15 Garden Route Visitor Survey Regional trends for the Garden Route were derived from visitor information centre (VIC) questionnaires survey completed by visitors to VICs during the first quarter of 2007. Cape Town Routes Unlimited undertook the survey and the results of this survey are desribed below. A total of 398 responses were received from the Garden Route region in the first quarter of 2007 from the Knysna (52%), Uniondale (18.8%) and De Rust (27.1%) offices. The responses were collected in the following months:

• January (43.7%)

• February (33.7%)

• March (22.6 %)

Origin of visitors The majority (55.5%) of the visitors were from overseas, 43.7% were domestic and 0.8% from Africa (excluding domestic). The top overseas source markets of the international visitors were: the UK (28.5%), the Netherlands (6.2%), Germany (5.3%) and Sweden (2.5%). South Africa was the largest single source accounting for 43.3% of the visitors.

Of the domestic visitors most (37.6%) were from within the Western Cape, 29.3% from Gauteng, 8.9% from the Eastern Cape, 7.6% from Kwa- Zulu Natal and 6.4% from Free State (Figure 6).

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Figure 6 The province of origin of domestic visitors on the Garden Route.

Knysna received the majority (78.7%) of all overseas visitors among the participating towns. De Rust had 17.6% and Uniondale 3.7% of the overseas visitors. However, De Rust had most (40.6%) of the domestic visitors, of which 14.7% were from the Western Cape, 9% from Gauteng and the rest from other provinces.

Group Size and Length of Stay

The average travel group size was three people, but the most common travel group size as two people. 59.8% of the visitors travelled in twos, 16.9% in fours, 10% in threes and 7.3% alone. 2.5% travelled in groups of 7 and greater, (Figure 2). The average group size of 3 didn’t vary with origin region of the visitor.

Only 1.7% of the visitors were day visitors, and almost all (98.3%) were staying for one night or longer. The overall Q1 average length of stay was 12 nights, 7 nights for domestics and 15 nights for overseas visitors. There were not enough responses from the African visitors to make significant conclusions. Length of stay varied with location, Knysna had the highest (15 nights) length of stay, Uniondale (10 nights) and De Rust 3 nights. Visitors spent the most time in Knysna among these participating towns. Length of stay in De Rust was the shortest probably due to the high proportion of domestic visitors in the town compared to the other towns. Domestic visitors normally visit for shorter periods, but more frequently than overseas visitors. Domestic visitors’ trips are usually the quick and short weekend get-aways. Knysna on the other hand, enjoyed very long length of stay (15 nights), also, probably because of the very high proportion (79%) of the overseas tourists visiting the town. Overseas visitors, due to the long haul nature of their trips, tend to stay longer, but visit less frequently than domestic visitors.

Mode of transport and Purpose of visit Cars (98.1%) were predominantly the most popular mode of transport in the destination for all visitors, both domestic and overseas. The remaining small proportion 1.9% used other modes of transport including rail and bus. All the visitors who used rail were from overseas. For both overseas and domestic visitors, the majority (97.9%) were on holiday and only 1.3% were in the destination on business. The remaining minute proportion (1%) were in the Garden Route for other purposes including honeymoon and religion.

General comments

Visitors were given the opportunity to give their opinions regarding their experience in the Garden Route. All the comments were positive

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regardless of origin of visitor and location. All the visitors, from overseas and domestic alike rated the destination as great and that there were very helpful and friendly people in the destination. There was not a single negative comment about the Garden Route from the visitors in Quarter 1 2007.

4.3.2 Some Strategic Priorities Based on the information collected from the various SA Tourism foreign and domestic tourism surveys it is suggested that the following strategic priorities could contribute significantly to tourism growth in the Western Cape:

• The development of private game reserves and the proposed development of the Garden Route Mega Park in the Western Cape could make a major contribution to the growth of domestic tourism in the province. These should encourage more intra-provincial tourists to explore their own province. • The Western Cape should capitalise on its competitive advantage and use the CTIA more effectively to develop competitive packages especially to grow the overseas tourism markets and the air markets from Africa. • Competitive package tours could be designed and priced to compensate for the increase in pre-paid expenses as a direct result of the global fuel crisis. This could mean offering discounts during the shoulder periods e.g. special accommodation and car hire rates for inclusive tours in Q2 and Q3.

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