www.southafrica.net

2003/4 BUSINESS PLAN & BUDGET PRESENTATION

Presentation: Parliament 20 May 2003Presented by CFO, Johan van der Walt

www.southafrica.net

Strives to contribute

to …

Sustainable GDP Sustainable GDP growthgrowth

Sustainable job Sustainable job creationcreation

Redistribution and Redistribution and transformationtransformation

… through delivering

sustained ...

Increases in tourist Increases in tourist volumevolume

Increases in tourist Increases in tourist spendspend

Increased length of Increased length of staystay

Improved geographic Improved geographic spreadspread

Improved seasonality Improved seasonality patternspatterns

… by acting in a

focused way to …

Understand the Understand the marketmarket

Choose the attractive Choose the attractive segmentssegments

Market the Market the DestinationDestination

Facilitate the removal Facilitate the removal of obstaclesof obstacles

Facilitate the product Facilitate the product platformplatform

Monitor and learn Monitor and learn from tourist from tourist experienceexperience

Promote Promote transformationtransformation

www.southafrica.net

Achievements 2002/3

• SA achieved over 6,429 million tourists during 2002 (> 600 000 vs 2001; highest growth internationally)

• Developed and launched Tourism Growth Strategy (focus marketing activities & spend on specific segments where returns for SA will be maximised; seasonality addressed campaigns USA, Africa, UK & India, restructured operations (offices, staff)

• Innovative deals (CNN, Cricket World Cup, IIFA Awards, etc.)• Developed tourism brand for South Africa with IMC• Achieved a clean an unaudited finance report, a first in 5 years

2002/3 Budgeted expenses: R 310,9 million2002/3 Budgeted expenses: R 310,9 million““Getting the basic right”Getting the basic right”

Note:Source:

www.southafrica.net

Objectives 2003/4

• Fast track transformation & empowerment• Get more funding (Government & Private Sector) (Japan & China)• Maintain growth in tourism arrivals• Continue refining & rolling out Tourism Growth Strategy (additional

research, increasing focussing marketing activities & spend on specific segments where returns for SA will be maximised; seasonality addressed campaigns, second-tier succession planning (Country Managers)

• Innovative deals (Thompsons, SAA, Virgin)• Establish tourism brand for South Africa• Balanced Scorecard & ISO 9001

““Fast track transformation”Fast track transformation”

Note:Source:

www.southafrica.net

The 5 key inputs & outputs …

Zero-based Business unit/Country Bus

Plan & Budget

Previous Budget & Bus Plan

Latest market intelligence

ParametersVision & overall strategy

Future Calendar

Applicable marketing activities for Growth & Defend segments in identified markets

Value-for

money & ROI

Linked to Performance Management

system

Flexibility (pro-active

& reactive)Practical (actions, HR & funding)

www.southafrica.net

2003/4 Budget

71% from DEAT (Government) (R 296,4 million)

11% from voluntary TOMSA levies (Private sector) (R 44 million)

5% from Business Trust (R 20 million)

13% generated by SA Tourism (R 56.,5 million) (deal-driven campaigns, exhibition space, brochures, etc.)

Total Revenue: R 416,9 millionTotal Revenue: R 416,9 million

Note:Source:

www.southafrica.net

2003/4 Budget

Represents 61% of total budget

Europe: R 146,2 million

Americas: R 53,9 million

Asia: R 42,9 million

Africa: R 11,6 million

Direct overseas marketing expenses: R 254,6 Direct overseas marketing expenses: R 254,6 millionmillion

Note:Source:

www.southafrica.net

2003/4 Budget

Represents 18% of total budget

Central Marketing: R 45,5 million

Strategic Relations: R 9,3 million

E-Marketing/Business: R 6,1 million

PR & Comms: R 12,9 million

Indirect overseas marketing expenses: R 73,8 Indirect overseas marketing expenses: R 73,8 millionmillion

Note:Source:

www.southafrica.net

2003/4 Budget

Represents 7% of total budget

Segmentation research in France, China and Japan

Departure surveys

Cluster research

Various smaller research projects

Research: R 29,0 millionResearch: R 29,0 million

Note:Source:

www.southafrica.net

2003/4 Budget

Represents 1% of total budget

Facilitation

Support provincial budgets

Domestic Marketing: R 4,75 millionDomestic Marketing: R 4,75 million

Note:Source:

www.southafrica.net

2003/4 Budget

Represents 3% of total budget

Includes recruitment, training, Balanced Scorecard implementation & performance bonuses, etc.

HR & Performance Bonuses: R 12,9 millionHR & Performance Bonuses: R 12,9 million

Note:Source:

www.southafrica.net

2003/4 Budget

Represents 10% of total budget

Includes Grading Council assistance

Finance & admin, CAPEX, Office of CEO: R 42,4 Finance & admin, CAPEX, Office of CEO: R 42,4 millionmillion

Note:Source:

www.southafrica.net

2003/4 Budget

THANK YOU!

QUESTIONS?

Note:Source: