PRESENTATIONby

David Frandsen

Executive Manager: International Marketing &

Cape Town Convention Bureau

2 September 2009

TOURISM MARKETING STRATEGY2009 009 ––

20142014

Grow •

Share •

Sustain

MISSIONOur Mission is to market the Western Cape as a desirable tourism destination to as many potential leisure, business and events visitors as possible

VISIONOur vision is to be recognised as one of the most

dynamic and professionally managed Destination Marketing Organisations in the world.

CORE VALUESOur work is characterised by the following values:

Professionalism ●

Innovation ●

Integrity ●

Passion ●

Confidence ●

Commitment

The current marketing strategy takes into account a series of organisational, global and regional developments:

• CTRU’s budgetary challenges and the process of prioritisation of both strategic focus and target markets

• CTRU’s organisational capacities• The Western Cape and the City of Cape Town’s

approach to destination marketing• Global trends such as climate change, high

fossil fuel prices and the current world economic slow-down

• FIFA 2010 World Cup™ expectations • Challenges facing the South African and African

political-economic climate

Key drivers of CTRU’S marketing strategy

Chairperson: Peter Bacon, Former CEO: Sun International Hotels

Vice-Chairperson: Bryan Slingers, Chairperson of Bester Burke Slingers Group and tbsp///beyond the line

Esa Yacoob, Director & owner of Cape Tourism Investments Stephen de Vries, Councillor: Eden District Municipality & WC

Deputy Chair: SALGA Thembi Kunene, CEO: Tourism Grading Council of South Africa Christelene Brink, Councillor: Cape Winelands Municipality SALGA -

W Cape Vernon Kirsten, Immediate past chair FEDHASADeon Cloete, General Manager ACSA – Cape Town International

AirportAnnemie Liebenberg, Marketing Manager – V&A WaterfrontMangaliso Mdlalo, Deputy President NAFCOC – Western CapeJan Kotze, Deputy Chair COSATU – Western CapePhillip Couvaras, Chair of FEDHASA Cape and General Manager of the Table Bay HotelCalvyn Gilfellan, CEO (ex officio) Labeeqah Schuurman, Chief Director of Tourism: DEDAT (ex officio)

Structure of theCTRU Board

CTRU executive management

Strategic Marketing Goals

The organisation’s focus is on the following strategic goals:

•To market Cape Town and the Western Cape as a premier leisure, events and business tourism destination•To contribute to the distribution of the benefits of a thriving tourism industry to the citizens of the province•To promote an environmentally and sociably responsible tourism industry that will enjoy the benefits of sustained growth

These Strategic goals are underpinned by and are aligned to the Department of Economic Development and Tourism goal:

•To Grow and Share the Economy

2008 / 09 Strategic Objectives

1. To optimise and further enhance the achievements of the Conventions Bureau (meetings, incentives, conventions and exhibitions) in CTRU

2. To capitalise on the Excellent Base provided by our International and Domestic Leisure Tourism Work Stream

3. To deliver cost-effective and efficient marketing of the destination through the use of a world-class e-Business platform

4. To instigate an effective Public Imaging, Relationship Building and Stakeholder Communications strategy

5. To implement a Developmental Tourism Marketing Support Programme aimed at meaningful transformation of the industry

6. To establish a world-class marketing intelligence operation capable of monitoring and measuring organisational and industry performance

7 . To implement a creative Expenditure Substitution model that leverages off the good-will that exists between the private and public sector

8 . To implement an Action Plan to mitigate the effect of climate change on the tourism industry

9. To comply with best practice in regard to corporate governance and stakeholder accountability

ALL TARGET MARKETS – CAPE TOWN & WESTERN CAPE

2010 Markets Africa & Middle East

Americas Asia & Australasia

Europe

Established Markets including 2010

NamibiaSouth Africa USA

United KingdomGermanyNetherlands France

Emerging StrategicMarkets including 2010

KenyaNigeriaGulf States

BrazilCanada

IndiaAustraliaChinaJapan

ScandinaviaItalyBelgiumSwitzerlandIreland

Watch list markets

Mozambiqu

eAngola

Argentina New ZealandKorea

Eastern EuropeSpain Portugal

Country/Year 2008 2007 2006 2005

Arrivals Rank Arrivals Rank Arrivals Rank Arrivals Rank

UK 313 902 1 329 966 1 336 742 1 309 935 1

Germany 174 917 2 192 730 2 186 132 2 167 166 2

USA 155 791 3 151 209 3 145 211 3 121 377 5

Namibia 139 191 4 109 826 4 98 616 5 131 582 4

Netherlands 86 978 5 74 704 6 74 813 6 68 584 7

France 83 555 6 75 373 5 66 835 7 60 683 8

Mozambique 74 846 7 31 440 10 36 692 10 17 894 10

Australia 49 466 8 47 977 8 48 274 9 38 619 9

Zimbabwe 41 718 9 63 626 7 58 843 8 69 659 6

Italy 37 160 10 36 337 9 n/a n/a n/a n/a

The Destination’s Performance in International Markets

Destination performance since CTRU’s establishment (statistics courtesy of South African Tourism)

Year 2005 2006 2007 2008

International arrivals

1,591,648 1,737,937 1,763,631 1,630,611

Domestic trips

3.0 million 3.2 million 4.5 million 4-1 million

Bed nights spent in province

16.8 million 19.8 million 20 million 21 million

Foreign direct spend in province

R16.9 billion

R19.8 billion R17.9 billion R20.8 billion

Destination Performance – Western Cape

Destination Marketing Highlights

2008 / 09 Marketing highlightsCape Town Convention Bureau

In November 2008 the Cape Town Convention Bureau achieved certification through a stringent audit process conducted by Lloyds Registry to be accredited a full member of the BestCities Global Alliance of Convention Bureaus. The other Convention Bureau members include Vancouver, San Juan, Edinburgh, Copenhagen, Dubai, Singapore and Melbourne. The bureau is the only fully constituted convention bureau in South Africa.

Cape Town’s global ranking improved from position 37 to 35 in 2008 as a meetings destination in terms of the global ICCA rankings

STRATEGIC ALLIANCES

2010 SITE Conference

SECURING THE BUSINESS THROUGH PARTNERSHIPS

2008/2009 BID SUBMISSIONS

• In conjunction with industry partners the CVB submitted 29 FormalBids and 14 Proposals

• Estimated economic value of submissions: R650 million

• 16 of the Secured Conferences will take place at the CTICC

THE B

IDDIN

G SCENE

BUSINESS TOURISMTRADE FAIRS

TRADE FAIRS ATTENDED

MEETINGS AFRICA 2009

EIBTM 2008Hot Leads currently working on:

HOT LEADS

2008 / 09 Marketing highlightsEvents

CTRU ‘s Events Bureau provided sponsorship to 7 City-based events and 9 regional events. 1 New event was sponsored and 11 of the events are aimed at addressing seasonality. Approximately 400 000 people were exposed to the brand at and during these events.

ABSA Cape Epic6th

year of support

•Most televised mountain bike race on earth•2000 hours of global television coverage•TV coverage in 175 countries and 17 languages•Event clip broadcast in 155 subway and train stations in Germany•1 200 participants•Estimated media ROI is R1-billion

Vodacom Funny Festival

•Approximately 14 600 attendees•Hosted comedians in the Cape Overberg•Daily competition – destination content•Estimated media ROI – R4-million

Cape Town International Jazz Festival

•Approximately 33 500 attendees•Free community concerts•Estimated economic impact for the Western Cape R430-million•Estimated economic impact for South Africa R680-million

J&B MET

•Official host destination status•TV broadcast presenting partner, including LIVE TV Broadcast•Media Breakfast Host

– international coverage