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South African Tourism (SAT) 2014/15 Annual Report

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South African Tourism (SAT) 2014/15 Annual Report #MEET SOUTH AFRICA SOUTH AFRICAN TOURISM ANNUAL REPORT 2014 | 2015 CONTENTS 06. List of Definitions and Acronyms 29. Statement of Responsibility for 01 10. Message from the Minister 02 Performance Information 12. Foreword 30. Auditor-General's Report 14. CEO’s Report 32. Situational Analysis 16. The South African Tourism Board 36. South African Tourism Market Portfolio 17. South African Tourism Executive Management 38. Performance Information by Programme 20. Statement of Responsibility and Confirmation 41. Performance Information by Activity of the Accuracy of the Report 51. Tourism Grading Council of South Africa 24. Strategic Overview 52. South Africa National Convention Bureau 25. Organisational Structure 52. Operations Report 55. Finance Report GENERAL INFORMATION PERFORMANCE INFORMATION 60. Governance Introduction 03 82. Report of the Audit and Risk Committee GOVERNANCE 86. Human Resource Management 94. Statement of Financial Position 04 88. Performance Management 05 as at 31 March 2015 95. Statement of Financial Performance 96. Statement of Changes in Net Assets 97. Cash Flow Statement 98. Accounting Policies 113. Notes to the Financial Statements 136. South African Tourism Country Offices HUMAN RESOURCES FINANCIAL INFORMATION01 GENERAL INFROMATION SOUTH AFRICAN TOURISM’S GENERAL INFORMATIONJOHANNESBURG NAME OF PUBLIC ENTITY: SOUTH AFRICAN TOURISMMABONENG DISTRICT Natum sedit, quod facret videes huit foret gravenat, con teata me ad- REGISTERED OFFICE ADDRESS: WEBSITE: hui perem ocum in dius, Patuam iacendio, cludees iam rei sicaverum Bojanala House, 90 Proteaiam Road privast per horibuniumwww.southafrica.net presimum nimus in tercepos esimoer Chislehurston, Johannesburgeniquos, non venaterissa ressupio, Catus coridie natimiurnum diurare 2196 EXTERNAL AUDITORS INFORMATION:viliaecondii silicam. Auditor-General of South Africa, TELEPHONE NUMBER: 300 Middel Street, New Muckleneuk, +27 11 895 3000 Pretoria, 0001 POSTAL ADDRESS: Private Bag X10012, Sandton, COMPANY SECRETARY: 2146, Amritha Mahendranath Gauteng, South Africa 01 GENERAL INFORMATION JOHANNESBURG, GAUTENG MABONENG PRECINCT Come feel the urban energy of South Africa’s biggest city in Maboneng, an area of trendy rejuvenation that’s home to great restaurants (including food you can buy right on the streets), art galleries and boutique stores. LIST OF DEFINITIONS AND ACRONYMS DEFINITIONS Activity – processes or actions that use a range of inputs to produce Performance – the degree to which a development intervention the desired outputs, and, ultimately, outcomes. In essence, activities operates according to specified criteria, standards or guidelines – or that describe “what we do”. achieves results in accordance with stated goals or plans. Performance Information – a generic term for non-financial Annual Performance Plan – an approved plan that sets out what information about government services and activities. In addition, South African Tourism intends doing in the forthcoming financial year “performance indicator” and “performance measure” are sometimes used and during the Medium-Term Expenditure. interchangeably. The report will use the term “performance indicator”. Annual Report – a report that provides information on the Performance Standards – the minimum acceptable level of performance of South African Tourism in the period under review, for performance that is generally expected. the purposes of oversight. Senior Management – managers on Paterson grading levels E5 and F. Audit – an examination of records or financial accounts to check their accuracy and conformity with norms and criteria set out in advance. South African Tourism Board – South African Tourism Board (used An internal audit is an assessment of internal controls undertaken by a interchangebly with Accounting Authority) – statutory body appointed unit reporting to management, while an external audit is conducted by by the Minister in terms of the Tourism Act (Act No. 3 of 2014) that has an independent organisation. the fiduciary responsibility over South African Tourism. Deputy Minister – the Deputy Minister of Tourism. South African Tourism – the destination marketing organisation of South Africa. Framework – to implement its Strategic Plan. Strategic Objective – states clearly what South African Tourism intends to General Staff – employees not part of management. do (or produce) in order to achieve its strategic goals. Impact – positive and negative, primary and secondary, long-term and Strategic Outcome-Orientated Goals – areas of organisational short-term effects produced by a development intervention, or the results performance that are critical to the achievement of South African of achieving specific outcomes such as reducing poverty and creating jobs. Tourism’s strategic objectives. Junior Management – managers on Paterson grading levels D1 and D2. Strategic Plan – a plan that sets out South African Tourism’s priorities, programmes and projects for a five-year period, as approved by the Key Performance Indicator – a variable that allows the verification of Board and the Minister of Tourism, and within the scope of available changes or shows results relative to what was planned. resources. Middle Management – managers on Paterson grading levels D3-E. Target – an expected level of performance or improvement required in the future. Minister – the Minister of Tourism (Executive Authority). Trended Revenue – the amount spent directly in South Africa by all Outcome – the medium-term results for specific beneficiaries that are foreign visitors and domestic travellers excluding amounts spent on the consequence of achieving specific outputs. Outcomes should relate capital goods. clearly to an institution’s strategic goals and objectives, which are set out in its plans. Outcomes are “what we wish to achieve”. Tourism Act – the Tourism Act (Act No. 3 of 2014). 6 ANNUAL REPORT 2014 | 2015 GENERAL INFORMATION MPUMALANGA BOURKE’S LUCK POTHOLES One of Mpumalanga’s top attractions, the Bourke’s Luck Potholes at the confluence of the Treur and Blyde rivers mark the beginning of the spectacular Blyde River Canyon. ACRONYMS MTSF – Medium-Term Strategic Framework AGSA – Auditor-General of South Africa NDP – National Development Plan APP – Annual Performance Plan NDT – National Department of Tourism BRICS – Brazil, Russia, India, China and South Africa NT – National Treasury CCBO – Chief Convention Bureau Officer NTSS – National Tourism Sector Strategy CEO – Chief Executive Officer PFMA – Public Finance Management Act, Act No. 1 of 1999 CFO – Chief Financial Officer PTA – Provincial Tourism Agencies COO – Chief Operating Officer ROI – Return on Investment CPIX – Consumer Price Index SADC – Southern African Development Community CQAO – Chief Quality Assurance Officer DG – Director-General of the NDT SANCB – South Africa National Convention Bureau DIRCO – Department of International Relations and Co-operation SMME – Small, Medium and Micro-Enterprises DMC – Destination Management Companies TBCSA – Tourism Business Council of South Africa DPME – Department of Performance, Monitoring and Evaluation TGCSA – Tourism Grading Council of South Africa DTGS – Domestic Tourism Growth Strategy TOMSA – Tourism Marketing South Africa EXCO – Executive Management Committee of South African Tourism UK – United Kingdom GDP – Gross Domestic Product UNWTO – United Nations World Travel Organisation JMA – Joint Marketing Agreement USA – United States of America MICE – Meetings, Incentives, Conventions and Events VFM – Value for Money MTEF – Medium-Term Expenditure Framework VFR – Visiting Friends and Relatives KALAHARI, NORTHERN CAPE WILDLIFE It’s not only the big game that will enthrall in South Africa – animals like meerkats can be found in the Kalahari in the Northern Cape and the Karoo in the Eastern Cape. 8 ANNUAL REPORT 2014 | 2015 GENERAL INFORMATION 01 GENERAL INFROMATION JOHANNESBURG MABONENG DISTRICT Natum sedit, quod facret videes huit foret gravenat, con teata me ad- hui perem ocum in dius, Patuam iacendio, cludees iam rei sicaverum iam privast per horibunium presimum nimus in tercepos esimoer eniquos, non venaterissa ressupio, Catus coridie natimiurnum diurare viliaecondii silicam. KAROO, EASTERN CAPE NIEU-BETHESDA DISTRICT Farm stays are becoming ever more popular with travellers to and in South Africa who want to experience authentic rural life. MESSAGE FROM THE MINISTER OF TOURISM MINISTER OF TOURISM: DEREK HANEKOM The South Africa National Convention Bureau (SANCB) continues to enhance our capacity to deliver professional business events, which allows us to link offerings in leisure tourism with business events. The SANCB has secured 177 international conferences over the next five years, which are expected to bring an estimated R3.5-billion into the economy. The Tourism Grading Council of South Africa (TGCSA) plays an important role in quality assurance and in informing tourists about exactly what levels of accommodation and service they can expect when they arrive at graded establishments. By grading establishments, the TGCSA adds a compelling value proposition in the globally competitive tourism space. The opening of South African Tourism’s West Africa hub in Nigeria underscores our commitment to developing tourism on the continent, while the new South African Tourism office in Brazil will service this emerging market. In addition to the marketing function, South African Tourism performs the critical task of undertaking research that guides and informs the domestic, regional and international marketing
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