AUSTRALIA: SOUTH AFRICA’S LONGITUDINAL PERFORMANCE · North West Mpumalanga Eastern Cape Limpopo Free State Northern Cape Average nights 2018 8119 7 10 Average ... • Leveraging

Australasia

2019/20

AUSTRALIA:

SOUTH AFRICA’S LONGITUDINAL PERFORMANCE

Slide no. 2 © South African Tourism 2019

Arrivals and Spend


Seasonality

• Arrivals peak in September. Australians have a minimum of 4 weeks holiday each year and the month of March has a cluster of

national and state holidays and September lines up with the end of the third school term


Geographical spread

• 55% of Australians visit more than one province, down from 65% in 2017. Gauteng and Western Cape are the joint top provinces visited

with the highest share arrivals, spend and bednights

GautengWestern

Cape

Kwazulu

NatalNorth West Mpumalanga

Eastern

CapeLimpopo Free State

Northern

Cape

Average

nights2018 8 11 9 11 7 11 8 7 10

Average

Provincial2018 R10 200 R14 900 R9 800 R11 100 R7 600 R13 300 R10 000 R8 100 R10 300


Who we are getting

• Australian arrivals declined driven by Holiday and MICE tourists and saw 18 to 34 year old tourists grow while 35 to 44 year olds saw

declines from 2017


Who we are getting

• Chinese tourists are mostly First time visitors who Travel alone


OVERVIEW


Macro Overview

Election year in Australia – national elections for prime minister and governing party

• This could have some impact on outbound travel – more specifically around the time of the election but may have an indirect affect

beyond that period. Date hasn’t been confirmed but the suggested dates by most outlets is 11 May 2019.

The reality of the housing price bubble sets in

• With the consistent drop in housing prices across Australia (with Sydney and Melbourne seeing the largest decreases), consumers

may change focus by opting to consume less and rather invest in property.

Economic indicators

Exchange rate: In 2018 the Australian dollar tumbled faster than expected and closed at a low of AUD 0.70 against the USD. When

compared to ZAR, the AUS landed slightly weaker than the same period in 2017 (ending at AUD 0.097). The currency fluctuation is likely

to impact flight pricing as crude oil pricing is valued in USD.

GDP growth? Australia's GDP growth slows to 2.8% as weaker spending hits economy.

TRENDS

❑ 2018 saw more readers abandon print for online/digital media which has resulted in the closure of some

publications. The ongoing trend of smaller editorial teams and lack of budget from reduced print advertising

has continued to contribute to this.

❑ Backstory not ads!

❑ With the increased consumption and use of social media in 2018, more brands are capitalising on the reach

and potential pull of influencers and celebrities to convey their key messages to their audiences.

❑ Mainstream Spirituality and Mindfulness.


Considerations

• Need more content that speaks to the Australasian market – imagery, video, written – inclusive of family, group activity, immersive

and mixed crowd, etc.

• Active, fun and energetic campaign needed to drive WOM and peak consumer interest.

• Need to inject a greater sense of urgency (without desperation) on travel to SA as a lot of people push it out for ‘when they’re

older’ which adds to the drop of between likely to visit in future and sought information.

• Doing good/ Building better generations/ Travelling with a purpose/ Collectivism is growing – Need to incorporate into our work.

• Trade training methods need to be revisited as SA specialist isn’t working – most completions are done by one person in an office

(typically a trainee or junior staff member who has the time and has mastered the answers) so not much knowledge is actually

transferred to agents.

• Global to consider big conversion partnerships that really drive conversion (e.g. Expedia, etc.)

• Need to deep dive into service delivery levels as people’s top reasons for visiting SA and the experiences they engaged in during

their stay don’t correlate with their top experiences of the trip.

• Need to incorporate more Tech & Innovation to target consumer and trade. The first touchpoints with South Africa are not

interactive or tech forward so the destination is then perceived as ‘so 2002’.

• Family travel accounts for 40% of Australia’s outbound trips – we need to reconsider approach on families. Of Australia arrivals into

SA only 10% are family travelers.

• Non-traditional partnerships that lend us a big well liked brand are a win to work with (e.g. Sony, Land Rover, etc.)

• Continue to cater to the different buckets and shape Value For Money.

• Not so much going to focus on ‘going off social (trend) but rather look towards real as opposed to fake social experiences and posts.


Barriers

1. Safety and Security Perceptions in SA

• Countless stories of contact crimes committed in SA: farm murders; home robberies, hijackings, etc.

2. Land Expropriation Coverage

• Extensive negative media coverage around land expropriation and white genocide. High-level politicians publicly spoke in support

of white South African farmers and pledged to give them support.

• Protests and public gatherings across ANZ by South African expats to lobby against land ownership/ constitutional review in SA

and to garner support for Australia to expedite SA white farmer visas into Australia.

3. Lack of Wildlife Conservation

• The increase in the lion bone export quota in 2018 worsened the situation and several activists have since taken a strong stance

against SA’s decision.

• Lion breeding in captivity.

• Poaching – even though there has been positive development and initiatives in this regard, the syndicates need to be shut down

for people to fully restore faith in the South African systems that are meant to protect wildlife.

4. Lengthy and Inconsistent Visa Process – New Zealand

• NZ Wholesalers removed SA from their Africa tours due to the time required and the lengthy process to obtain SA visa.


Goals for the market 2018/19Consumer Insights:

• I want a fun, easy and engaging holiday that has authentic experiences that offer the opportunity to engage and interact with locals.

• Australians want to blend in but with a safety net. Hence their strong desire for safety and security, VFM and easy to get around destinations.

• When they travel, Aussies seek scenic beauty, unique activities, culture and history. They also share several commonalities in their travel

needs with New Zealanders – such as exploring culture, need for a sense of adventure, to relax and recharge as well as to get a break from

routine.

Big Things to be done:

1. Inspire Australians to consider SA as a desirable destination by showcasing a variety of authentic local experiences that make us relatable, demonstrates VFM and features adventure, wildlife and heritage against a backdrop scenic beauty.

2. Amplify positivity by leveraging the positive narrative through advocacy of key opinion leaders, media, South African locals and peers to dispel negative perceptions of safety and security

3. Partner with and educate the wholesale, retail and MICE trade to package and sell a variety of relevant, authentic, VFM experiences.

Projects:

• Major TV Content Integration

• Partnering With Trade

• Leveraging Influencer and Ambassadors to Drive Positivity

Targets:

• Arrivals

• Spend

• Campaign metrics


THE DATA


Performance 2018

Australia 2017 2018 % movement Target% achieved against

Target

ARRIVALS 116,257 115,846 0.4% down 128,217 90%

SPEND (MILL.) R2,109 R2,006 4.8% down 2,346 86%

New Zealand 2017 2018 % movement Target% achieved against

Target

ARRIVALS 17,094 15,213 11.0% down 17,904 85%

SPEND (MILL.) R299 R301 0.6% up 299 101%

Performance of Arrivals and TFDS in 2018?

Australasia 2017 2018 % movement TargetPerformance vs

Target

AWARENESS 78% 80% Up 78% Target Achieved

POSITIVITY 28% 26% Down 27% Target Not Achieved

CLOSURE RATIO 1 in 2.82 1 in 2.94 Worsened 1 in 2.82 Target Not Achieved

Brand performance in 2018?

Even though target was achieved, this can’t

be assumed to be entirely positive as the

quality of awareness isn’t measured. Given

the decline in positivity, it appears this

awareness leans more to the negative side.


1%3%5%

25%

29%76%

4%5%14%5%10%

20%27%

81%

75%

50%

25%

0%

100%

10% 14%

Total

AwarenessPositivity

Long-term

ConsiderationPlan to Seek Info

Short-term

ConsiderationSought Info Recently

Have Visited

Recently

Recommen-

dation

2005 76% 29% 25% 10% 5% 14% 3% 1%

2006 82% 30% 26% 12% 6% 14% 3% 2%

2007 80% 29% 26% 10% 7% 14% 3% 2%

2008 79% 27% 24% 10% 6% 13% 4% 2%

2009 81% 31% 26% 10% 7% 14% 5% 3%

2010 83% 27% 25% 9% 5% 12% 4% 3%

2011 82% 27% 23% 10% 6% 13% 5% 3%

2012 83% 29% 24% 9% 5% 11% 4% 2%

2013 83% 27% 23% 9% 6% 12% 4% 3%

2014 80% 26% 21% 9% 5% 11% 4% 3%

2015 78% 25% 17% 8% 4% 10% 4% 3%

2016 77% 26% 19% 10% 6% 12% 6% 5%

2017 78% 28% 21% 12% 7% 13% 5% 3%

2018 80% 26% 21% 11% 6% 13% 4% 3%

2019 81% 27% 20% 10% 5% 14% 5% 4%

2005-19 5% -2% -5% 0% 0% 0% 2% 3%

Brand Journey | Longitudinal Analysis of Conversion Curve in Australia

• Acceptance Ratio: Ratio of % of travellers who plan to visit the destination in next 18 months to % of travellers who are aware of the destination

• Closure Ratio: Ratio of % of travellers who have visited the destination in last 18 months to % of travellers who have sought information about the destination in last 18 months

• Note: Feb’19 data has been used for the year 2019, results for 2016 to 2018 are based on Feb, Jun and Nov waves. Data from Feb and Nov waves has been merged for the year 2005, 2007 to

2015, while results for 2006 are based on Nov wave; Recommendation is calculated based on the respondents who have recently visited South Africa; Source: SAT Brand Tracker Data, 2005–

19

Closure Ratio

(2005: 1 in 5.21)

Acceptance Ratio

(2005: 1 in 15.5)

(2019: 1 in 17.05) (2019: 1 in 3.00)

• South Africa’s ‘Awareness’, ‘Recommendation’ and ‘Recent Visitation’ have improved during 2005-19;

while ‘Consideration’ and ‘Positivity’ have declined

20192005

• South Africa's Conversion Curve: Australia, 2005-19


Brand Knowledge | Key Emotional and Functional Attributes: Australia

• Note: Feb’19 data has been used for the year 2019, results for 2016 to 2018 are based on Feb, Jun and Nov waves. Data from Feb and Nov waves has been merged for the year 2005, 2007 to

2015, while results for 2006 are based on Nov wave

• Source: SAT Brand Tracker Data, 2005–19

• South Africa’s Scores on Emotional and Functional Attributes: Australia, 2005-19

5.426.26

4.17

5.555.105.535.885.64 5.50

6.30

4.605.535.305.555.865.70

2005 2019

Memorable Adventurous Breathtaking Enriching Variety Welcoming Wildlife Authentic

2005 5.64 5.88 5.53 5.10 5.55 4.17 6.26 5.42

2006 5.75 5.92 5.56 5.22 5.58 4.20 6.38 5.58

2007 5.68 5.84 5.61 5.24 5.65 4.36 6.31 5.56

2008 5.63 5.71 5.52 5.18 5.53 4.26 6.21 5.47

2009 5.68 5.80 5.51 5.22 5.56 4.24 6.28 5.49

2010 5.65 5.80 5.41 5.14 5.44 4.27 6.27 5.53

2011 5.67 5.86 5.56 5.26 5.48 4.31 6.31 5.56

2012 5.69 5.86 5.52 5.25 5.56 4.27 6.29 5.58

2013 5.66 5.84 5.50 5.24 5.52 4.26 6.29 5.52

2014 5.62 5.73 5.50 5.26 5.52 4.39 6.15 5.53

2015 5.78 5.86 5.65 5.41 5.62 4.53 6.40 5.70

2016 5.63 5.78 5.48 5.28 5.46 4.68 6.22 5.55

2017 5.73 5.84 5.55 5.33 5.59 4.66 6.32 5.57

2018 5.72 5.83 5.55 5.38 5.52 4.65 6.30 5.61

2019 5.70 5.86 5.55 5.30 5.53 4.60 6.30 5.50

2005-19 0.06 -0.02 0.02 0.20 -0.02 0.43 0.04 0.08

• South Africa’s perception on most of the emotional and functional attributes have improved during 2005-

19, with the exception of ‘Adventurous’ and ‘Variety’ which have marginally declined


South Africa Rank Versus All Destinations | Across Competitors

• Based on a random selection of total aware of each country as an international destination for leisure purposes• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Performance Ratings (Q22): How well do each of the following attributes describe this country? Use a scale of 1–7 where 1 is “Does Not Describe at All” and 7 is “Describes Extremely

Well".

• Personality Ratings (Q23): How well do each of the following attributes describe this country? Use a scale of 1–7 where 1 is “Does Not Describe at All” and 7 is “Describes Extremely Well".

• South Africa Ranks Versus All Destinations – .Feb-19

South Africa Brazil China India Indonesia Italy Kenya Thailand UK USA

(n=296) (n=147) (n=139) (n=147) (n=151) (n=149) (n=145) (n=131) (n=146) (n=139)

Memorable 4 8 5 6 10 1 2 9 3 7

Adventurous 2 3 9 5 8 7 1 4 10 6

Offers a Wildlife Experience 1 7 8 4 5 10 2 3 9 6

Welcoming People You Can Interact

With9 6 10 7 5 2 8 1 3 4

Offers a Wide Variety of Experiences 6 8 7 5 9 2 10 4 3 1

Breath-taking 2 6 8 9 10 1 3 4 7 5

Enriching 7 8 4 5 10 1 3 6 2 9

A Very Authentic Travel Experience 5 7 3 2 10 1 4 6 8 9

Offers Excellent Value for the Money 9 7 4 3 2 5 10 1 8 6

Is a Safe & Secure Environment 10 8 4 7 6 2 9 5 1 3

Highest Rank

Lowest Rank

Significantly Above Average (at 95% confidence level)

Significantly Below Average (at 95% confidence level)

Top Desirable Performance and Personality Associations


Nov-17 Feb-18 Jun-18 Nov-18 Feb-19

(n=289) (n=288) (n=149) (n=295) (n=296)

Memorable 3 4 4 3 4

Adventurous 1 2 2 1 2

Offers a Wildlife Experience 1 2 1 1 1

Welcoming People You Can Interact With 7 8 8 8 9

Offers a Wide Variety of Experiences 4 3 4 4 6

Breath-taking 2 1 2 2 2

Enriching 5 4 5 2 7

A Very Authentic Travel Experience 4 3 4 3 5

Offers Excellent Value for the Money 8 8 9 9 9

Is a Safe & Secure Environment 8 8 10 10 10

2

South Africa Rank Versus All Destinations | Longitudinal

• Based on a random selection of total aware of each country as an international destination for leisure purposes• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Performance Ratings (Q22): How well do each of the following attributes describe this country? Use a scale of 1–7 where 1 is “Does Not Describe at All” and 7 is “Describes Extremely

Well".

• Personality Ratings (Q23): How well do each of the following attributes describe this country? Use a scale of 1–7 where 1 is “Does Not Describe at All” and 7 is “Describes Extremely Well".

• South Africa Ranks Across Waves

Highest Rank

Lowest Rank

Significantly Above Average (at 95% confidence level)

Significantly Below Average (at 95% confidence level)

Top Desirable Performance and Personality Associations


South Africa Rank Versus All Destinations | Longitudinal

• Based on all respondents:

• South Africa Ranks Across Waves

Total Awareness 7 7 7 7 7

Unaided Awareness 7 8 9 7 7

Positivity 5 8 6 8 6

Likely to Visit in Future 7 7 7 7 7

Likely to Seek Info 7 7 7 8 7

Uniqueness 1 1 1 2 1

Stature 6 6 6 6 5

Sought Info 7 7 7 7 7

Familiarity 7 8 7 7 8

Suitability 7 7 6 7 6

Likely to Visit in Next 18 Months 7 7 7 7 7

Closure Ratio 8 9 8 10 9

Feb-19Nov-17 Feb-18 Jun-18 Nov-18

Nov-17: (n=800); Feb-18: (n=800); Jun-18: (n=400); Nov-18: (n=800); Feb-19: (n=800)

Highest Rank Lowest Rank Significantly Above Average (at 95% confidence level) Significantly Below Average (at 95% confidence level)


South Africa Rank Versus All Destinations | Across Competitors

• Based on all respondents:

• South Africa Ranks Versus All Destinations – .

South Africa Brazil China India Indonesia Italy Kenya Thailand UK USA

Total Awareness 7 8 6 9 5 3 10 2 4 1

Unaided Awareness 7 9 5 8 6 3 10 4 2 1

Positivity 6 8 7 10 5 1 9 4 2 3

Likely to Visit in Future 7 8 5 9 6 3 10 4 2 1

Likely to Seek Info 7 8 6 9 5 3 10 4 2 1

Uniqueness 1 5 3 4 10 2 6 7 9 8

Stature 5 8 7 9 6 1 10 4 3 2

Sought Info 7 9 6 8 5 3 10 4 2 1

Familiarity 8 9 6 7 5 3 10 4 2 1

Suitability 6 8 7 9 5 3 10 4 2 1

Likely to Visit in Next 18 Months 7 8 6 9 5 3 10 4 2 1

Closure Ratio 9 8 5 7 2 6 10 3 4 1

Feb-19: (n=800)

Feb-19

Highest Rank Lowest Rank Significantly Above Average (at 95% confidence level) Significantly Below Average (at 95% confidence level)


South Africa Longitudinal Conversion Curve | Total

• Closure Ratio: Ratio of % of people who have visited the destination in last 18 months to % of people who have gathered the information about the destination in last 18 months

• Customer Conversion (Based on Q9, Q29, Q14, Q17, Q15, Q16a, Q16b and Q32): Based on those that have travelled internationally in the last 5 years; Respondents to likeability limited to

quota; Likeability/Positivity, Plan to Gather Information in Next 18 Months, and Plan to Visit in Next 18 Months based on ratings of 6 or 7 on a 7-point scale.

• Note: For all questions, the percentages are based on total respondents not the awareness base for the destination; Recommendation is calculated based on the respondents who have

recently visited South Africa

• South Africa Conversion Curve Across Waves — Total

0%

25%

50%

75%

100%

Plan to Visit in

Next 18 Months

Total Awareness Likeability/ Positivity Consideration Plan to Gather

Information in

Next 18 Months

Have Gathered

Information in

Last 18 Months

Have Visited in

Last 18 Months

Recommendation

Feb-18

Nov-17

Nov-18

Jun-18

Feb-19

Closure Ratio

(1 in 2.52)

(1 in 3.26)

(1 in 2.13)

(1 in 3.24)

(1 in 3.00)

Nov-17 (n=800) 79% 30% 23% 11% 8%

Feb-18 (n=800) 81% 25% 21% 11% 5%

Jun-18 (n=400) 79% 31% 24% 14% 8%

Nov-18 (n=800) 80% 25% 20% 11% 5%

Feb-19 (n=800) 81% 27% 20% 10% 5%

2% -3% -3% -1% -3%Nov-17 to Feb-19

14% 6% 4%

13% 4% 2%

13% 6% 5%

14% 4% 3%

14% 5% 4%

0% -1% 0%


South Africa Competitive Conversion Curve | Total

• Based on all respondents:• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Closure Ratio: Ratio of % of people who have visited the destination in last 18 months to % of people who have gathered the information about the destination in last 18 months

• Customer Conversion (Based on Q9, Q29, Q14, Q17, Q15, Q16a, Q16b and Q32): Based on those that have travelled internationally in the last 5 years; Respondents to likeability limited to

quota; Likeability/Positivity, Plan to Gather Information in Next 18 Months, and Plan to Visit in Next 18 Months based on ratings of 6 or 7 on a 7-point scale.

• Note: For all questions, the percentages are based on total respondents not the awareness base for the destination; Recommendation is calculated based on the respondents who have

recently visited the destination

• South Africa Competitive Conversion Curve — Total, .

Closure Ratio

0%

25%

50%

75%

100%

2%

1%

14%

Have Visited in

Last 18 Months

4%

38%

5%8%

Plan to Visit in

Next 18 Months

31%

Have Gathered

Information in

Last 18 Months

2%

41%

26%

14%

9%

21%

79%

96%

81%

Total Awareness

92%

Recommendation

57%

22%

57%

18%

Likeability/ Positivity

36%

25%

10%

40%

27%

20%

4%

29%37%

19%

10%16%

5%

66%

Consideration

3%

Plan to Gather

Information in

Next 18 Months

7%4%

9%

Kenya

Thailand

South Africa

USA

Brazil

(n=800)

Feb-19

(1 in 2.28)

(1 in 1.22)

(1 in 4.50)

(1 in 2.50)

(1 in 1.08)

3.00


Media Channels

Preferred

Channels 1

among NOT

AWARE

Saw Marketing

Communication for SA

among AWARE

Visited Not Visited

Online news, articles, web pages, blogs, travel booking

/ review websites, etc.33% 17% 17%

Travel brochures/ posters from travel agents, tour

operators, tourist information centre, etc.30% 11% 20%

Newspapers, Magazines, Travel magazines and

booklets26% 34% 24%

TV channels 24% 15% 19%

Social networking websites (Facebook, Instagram,

Snapchat, Twitter, etc.)22% 9% 10%

Mobile applications, News alerts via mobile feeds

(using phone, tablet, mobile devices, etc.)19% 4% 2%

Video streaming websites (YouTube, Vimeo, etc.) 18% 2% 2%

Cinema 11% 2% 1%

Radio channels 11% 4% 1%

Leakage at Stages of the Brand Journey | Media Channels

• Based on all respondents: Feb-19: (n=800)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Customer Conversion (Based on Q9, Q29, Q14, Q17, Q15, Q16a and Q16b): Based on those that have travelled internationally in the last 5 years; Respondents to likeability limited to quota; Likeability/Positivity,

Plan to Gather Information in Next 18 Months, and Plan to Visit in Next 18 Months based on ratings of 6 or 7 on a 7-point scale

• Leakage is calculated by subtracting each subsequent metric from the previous metric. For example, Total Awareness percent minus Likeability/Positivity percent equals Leakage between Awareness and

Likeability

• Media Channels (Based on Q43a and Q10b): Impact of preferred media channels and saw marketing communication

• Note: 1Preferred channels for viewing travel and tourism related promotional material, and it is a rating question. All rating question have been analyzed using top 2 box approach.

• The million pax at different stages are calculated based on those who are aware of SA

• Leakage and Media Channels(based on all respondents)

A W A R E N E S S

P O S I T I V I T Y

C O N S I D E R A T I O N

S O U G H T I N F O

S H O R T - T E R M


7 0 %

6 0 %

2 2 %

Market Size (million pax)

2.20

2 1 %

4 1 %

0.42mn

1.10mn

0.11mn

0.15mn

0.13mn

N E V E R V I S I T E D

0.22million pax

0.37million pax

1.58million pax

2.00million pax

0.09million pax

0.48million pax

Points with Maximum Leakage Key Media Channels Most Viewed

(n=152) (n=47) (n=278)

Leakage

Warning some bases below 75


Barriers

Concerns For My Personal Safety 19% 14% 16% 20%

Uncertain About Political Climate 15% 12% 11% 16%

Concern about AIDS 10% 9% 6% -

Too Expensive to Get There 10% 17% 19% 16%

Too expensive once there 5% 7% 11% 8%

Another Destination Was More Appealing 18% 19% 21% 20%

Not a relaxing destination 6% 3% 1% 2%

No particular reason 5% 7% 7% 12%

Don’t know anyone there 5% 5% 2% 2%

Too much time to get there 4% 5% 4% 4%

Nothing interesting to do there 3% 1% 1% -

Bad Climate 1% - 1% -

Difficult to get a VISA 1% 2% - 2%

Leakage at Stages of the Brand Journey | Barriers

• Based on all respondents: Feb-19: (n=800)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Customer Conversion (Based on Q9, Q29, Q14, Q17, Q15, Q16a and Q16b): Based on those that have travelled internationally in the last 5 years; Respondents to likeability limited to quota; Likeability/Positivity,

Plan to Gather Information in Next 18 Months, and Plan to Visit in Next 18 Months based on ratings of 6 or 7 on a 7-point scale

• Leakage is calculated by subtracting each subsequent metric from the previous metric. For example, Total Awareness percent minus Likeability/Positivity percent equals Leakage between Awareness and

Likeability

• Barriers (Based on Q34) Reasons for Not Visiting South Africa: Why haven’t you visited South Africa for leisure purposes in the past 5 years? (Select all that apply)

• Note: All market sizes are for the 'Never Visited' category in market; All calculations have been done using absolute values, and not the rounded off values. The million pax at different stages are

calculated based on those who are aware of SA, and the barriers are based on the leakages at different stages

• Leakage and Barriers(based on all respondents)

Sa

fety

Co

st

Oth

er

(n=400) (n=92) (n=87) (n=25)

Points with Maximum Leakage Key Barriers

2 543


A W A R E N E S S

P O S I T I V I T Y


S O U G H T I N F O

S H O R T - T E R M


0.22million pax

0.37million pax

1.58million pax

2.00million pax

7 0 %

0.09million pax

6 0 %

2 2 %

0.48million pax

Market Size (million pax)

2.20

2 1 %

4 1 %

0.42mn

Leakage

1.10mn

0.11mn

0.15mn

0.13mn

N E V E R V I S I T E D


Information Sources | South Africa

• Based on respondents who have sought leisure travel information on South Africa in the past 18 months of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Information Sources (Q16d/c): Which of the following sources of information have you used/ came across to obtain leisure travel information about each of these countries in the last 18

months? (Select all that apply). Which of the following was the most useful source of information that you used/ came across to seek leisure travel information about these countries?

(Single Select)

• Sources of Travel Information

(based on those who have sought leisure travel information on South Africa in the past 18 months)

40%0% 60%20%

7%

3%

2%

From an advertisement on TV

6%

2%

Was visiting a friend/family member who stays in that country

Saw an advertisement at the cinema

Airline advertised the location

7%

Other 6%

60%21%Used a search engine

9%

11% 36%

35%

Recommended by a friend/colleague/family member

3%

Searched for information about an event taking place in a country 8%3%

Informed by travel agent or the location was part of a travel package 15%5%

Visited the country’s website

Read about or saw photos of the country on community sites 16%

16%6%

18%

Saw locations of the country in a movie/ TV show

Read an article on a website describing the country

24%4%

6%

5%

18%4%

Read a magazine/ newspaper article describing the country 4%

Searched for information about a recreation activity 23%5%

23%

From an advertisement in a magazine/ newspaper

10%Read about the location in a travel book/ travel magazine 32%

Read about the country in a travel brochure

Total Mentions

Most Useful Source


57% 69% 67% 60%

42% 27% 20% 40%

36% 45% 41% 27%

39% 41% 35% 35%

21% 30% 27% 19%

23% 27% 22% 33%

29% 27% 24% 20%

23% 33% 20% 25%

26% 17% 20% 18%

23% 27% 22% 25%

16% 32% 4% 24%

14% 12% 24% 16%

14% 11% 10% 14%

7% 17% 10% 8%

12% 7% 16% 15%

15% 14% 10% 7%

5% 6% 0% 5%

12% 3% 12% 5%

(n=111) (n=101) (n=51) (n=110)

(n=114; 14%



Reasons for Visiting South Africa for Leisure

• Based on those who have visited South Africa for leisure in the past 5 years of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Reasons for Visiting South Africa (Q35a): Why did you choose to visit South Africa as a destination for leisure purposes? (Select all that apply)

• Reasons for Visiting South Africa

(based on those who have visited South Africa for leisure in the past 5 years)

51%

36%

29%

19%

19%

18%

15%

14%

12%

12%

11%

11%

10%

10%

10%

10%

5%

4%

8%

0% 20% 40% 60%

Go on safari

Combined with a business trip

Other

Visit friends/relatives

Fulfill a dream

Beautiful scenery

Experience a different culture

Engage in a variety of activities

See the change since Apartheid/see historic sites

My friends/family recommended it

Good value for money

To attend any specific event

Went as part of a tour group

For the food and wine

Warm climate

Someone else chose the destination

Saw a special offer

My travel agent recommended it

Friendly people



56% 52% 53% 52%

39% 35% 53% 34%

25% 35% 39% 34%

21% 13% 27% 24%

19% 17% 18% 24%

25% 22% 29% 28%

14% 17% 12% 24%

14% 15% 16% 27%

28% 20% 22% 31%

8% 10% 8% 10%

14% 13% 14% 22%

8% 8% 4% 6%

31% 12% 22% 18%

14% 8% 18% 18%

10% 7% 12% 18%

6% 0% 6% 6%

4% 7% 6% 6%

14% 5% 16% 13%

4% 7% 4% 4%

(n=72) (n=60) (n=49) (n=67)

(n=73;9%


80% 69% 69% 74%

63% 67% 75% 61%

49% 57% 61% 47%

29% 24% 24% 25%

7% 10% 0% 7%

37% 27% 31% 27%

18% 18% 15% 20%

21% 21% 19% 17%

6% 10% 3% 11%

2% 2% 3% 2%

3% 1% 1% 0%

20% 16% 15% 14%

11% 15% 19% 12%

1% 6% 4% 5%

3% 1% 0% 3%

9% 13% 9% 8%

1% 4% 1% 5%

(n=152) (n=147) (n=75) (n=132)

Reasons for Interest in South Africa

• Based on those who have not visited South Africa in the past 5 years, but intend to in the future for leisure of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Interest in South Africa (Q42): Why are you interested in visiting South Africa for leisure purposes in the future? (Select all that apply)

• Note: The sequence of the attributes is consistent with the reasons for visiting (previous slide), to allows better comparison across attributes

• Reasons for Interest in Leisure Visit to South Africa in the Future (based on those who have not visited South Africa in the past 5 years, but intend to in the future for leisure)

0% 20% 60%40% 80%

Fulfill a dream

Experience a different culture

Visit friends/relatives

Friendly people

30%

Go on safari

To see the scenery/beauty

16%

Engage in a variety of activities

See the change since Apartheid/see historic sites

My friends/family recommended it

49%

Good value for money

Other

To attend any scheduled event (e.g., wedding, concert, sports etc.)

Combined with a business trip

For the food and wine

Warm climate

Saw a special offer

My travel agent recommended it

76%

13%

63%

26%

9%

21%

24%

7%

1%

1%

3%

1%

10%

2%

(n=136; 17%



Reasons for Not Visiting South Africa for Leisure in Past 5 Years

• Based on those who have not visited South Africa in the past 5 years for either business or pleasure of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Reasons for Not Visiting South Africa (Q34): Why haven’t you visited South Africa for leisure purposes in the past 5 years? (Select all that apply)

• Reasons for Not Visiting South Africa (based on those who have not visited South Africa in the past 5 years for either business or pleasure)

45%

44%

34%

29%

22%

15%

13%

11%

10%

10%

5%

2%

1%

6%

0% 20% 40% 60%

Too expensive to get there

Uncertain about political climate/civil unrest

Bad climate/weather

Another destination was more appealing

Concerns for my personal safety

Concern about health risks

Too expensive once there

No particular reason

Not a relaxing destination

Don’t know anyone there

Too much time to get there

Nothing interesting to do there

Difficult to get a visa

Other

43% 40% 42% 37%

42% 44% 48% 44%

34% 35% 38% 35%

29% 28% 32% 26%

16% 21% 24% 19%

16% 12% 15% 16%

11% 12% 9% 12%

9% 9% 8% 10%

10% 11% 11% 10%

11% 10% 9% 9%

6% 5% 3% 5%

3% 2% 2% 2%

2% 1% 2% 2%

7% 8% 4% 7%

(n=563) (n=585) (n=265) (n=575)Feb-19Nov-17 Feb-18 Jun-18 Nov-18

(n=575; 72%


Reasons for Not Recommending

• Based on those who have visited South Africa in the past 5 years for either business or pleasure, but do not recommend it to family and friends of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Reasons for Not Recommending (Q33): Why wouldn’t you recommend South Africa as a destination for leisure purposes to your family and friends? (Select all that apply)

• Reasons for Not Recommending South Africa (based on those who have visited South Africa in the past 5 years for either business or pleasure but do not recommend it)

92%

38%

38%

31%

31%

23%

15%

8%

8%

8%

8%

8%

8%

15%

0% 20% 40% 60% 80% 100%





Uncertain about political climate/civil unrest


Concern about health risks


Too “touristy”

Not an authentic African experience


Bad climate/weather

Difficult to get the visa for South Africa

Other


55% 75% 56% 75%

27% 55% 33% 40%

18% 10% 22% 25%

9% 20% 22% 25%

27% 5% 33% 25%

18% 5% 11% 25%

9% 5% 11% 20%

9% 0% 11% 5%

9% 10% 22% 5%

18% 10% 11% 5%

0% 5% 0% 10%

0% 0% 0% 10%

0% 5% 11% 5%

9% 15% 22% 5%

(n=11) (n=20) (n=9) (n=20)

(n=13; 2%



(n=75) (n=93) (n=26) (n=86)

Rejecting a Leisure Destination

• Based on respondents who have visited South Africa for leisure in past 5 years or have sought info but have no intent to visit in the future of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Reasons for Rejection (Q16e): After seeking information about this country, why are you no longer planning to visit this country for leisure travel? (Select all that apply)

• Reasons for Rejecting a Destination After Researching It (based on those who have visited South Africa for leisure in past 5 years or have sought information on South Africa but have no intent to visit in the future)

39%

28%

23%

14%

13%

11%

10%

5%

1%

1%

18%

0% 20% 40%








General issues of safety

Bad climate / weather

Difficulty in getting a visa

Other


40% 42% 54% 50%

21% 20% 38% 17%

12% 16% 15% 6%

15% 12% 12% 16%

17% 11% 15% 12%

15% 5% 4% 8%

35% 30% 27% 35%

3% 6% 0% 3%

4% 1% 8% 5%

3% 4% 0% 3%

23% 24% 27% 14%

(n=79;10%



37% 47% 44% 39%

35% 38% 35% 32%

23% 27% 33% 25%

13% 15% 18% 12%

11% 12% 13% 10%

6% 5% 5% 6%

8% 7% 5% 6%

8% 9% 8% 7%

26% 21% 23% 27%

(n=449) (n=480) (n=219) (n=486)

Encourages Future Visitation

• Based on those who have not visited South Africa in the past 5 years and do not intend to in the future of all respondents)• –––––––––––––––––––––––––––––––––––––––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– –––––––– ––––

• Encourage Visitation (Q40): What, if anything, would encourage you to visit South Africa for leisure purposes in the future? (Select all that apply)

• * Have not been in the last five years

• Encourage Visitation to South Africa (based on those who have not visited South Africa for leisure in the past 5 years and do not intend to in the future)

0% 20% 40%

Special offer on flights

13%

35%

Chance to explore "off the beaten path"

4%

Special offer on safari

Special offer on hotels

Use South Africa as a base to visit surrounding countries

See friends/family

If South Africa hosts any specific event

Other

Nothing would make me want to return 28%

39%

24%

7%

13%

7%

(n=489; 61%


Slide no. 31

Attracting NSSAs and WLs – inclusive of niche groupings and families - by showcasing authentic local experiences that make SA relatable,

good VFM and easy to do – leading with adventure (varying forms from soft to hard adventure), wildlife, heritage, city lifestyle but still

incorporating other relevant parts across the six pillars. Consumer projects and campaigns will be multi-faceted and 360°. Content must be at the heart of consumer activity, inclusive of content

integration to showcase experiences. Working with partners who can lend us big brand reputation, provide consumer reach but are also

viewed as trusted providers of authentic content. Leveraging relevant engaged influencers and ambassadors to drive positivity with aims to

undo negative S&S perceptions - also directly targeted at expat community.

Trade activities are aligned with consumer campaigns. Working with trade partners who can package, promote and sell itineraries and

product that showcase VFM SA experiences – catering mostly to FIT followed by group travel.

Educate trade on SA USP as well as give them the confidence to sell SA and reassure tourists on travel to SA (with regards to S&S)

Sales peaks: September & October and February & March .

Education in market: June –March

Marketing Summary by Market: Australia

Creating Demand Fulfilling Demand

Where to

Play?

How to

Win?

Meet South Africa

Ac

hie

ve

th

e a

rriv

als

go

als

fo

r th

e R

eg

ion

Segments:

◼ Wanderlusters and NSSAs

◼ Incl. of Niche groups: LGBTQ; Solo women; Boys trip; Sporting groups (i.e. Cyclists, runners, etc.);

◼ Families

◼ MICE

Which cities should we focus on?

Australia – country-wide but concerted efforts in main cities: Sydney, Melbourne, Perth, Brisbane, Adelaide

NZ – mostly Auckland

Largely first time visitors; continue to provide varied offering to attract repeat visitors

◆ With which channel players should we collaborate?

◼ Wholesalers, tour operators (traditional + online), travel agencies, online travel agencies, airlines, SA operators, SA product

◼ Criteria: penetration, mix distribution channels, most consumer engaging


So what?

Recapping challenges and barriers for SA from a consumer perspective…

× Perceptions of poor personal and political safety and security – fueled by media and WOM (incl. expats)

× Too costly to travel to SA

× Other destinations are more appealing

We must aim to showcase SA in a more positive and appealing light through…

✓ Overriding the negative talk and undoing negative perceptions

▪ reaching Australasian consumers in a manner they best relate to – i.e. “Backstories - No ads!”

▪ showcasing ease of travel within SA – this indirectly suggests that SA is safer than initially perceived

✓ Working on perceptions and reality of cost to get to SA

▪ working closely with OTAs and airlines to drive more competitive price

▪ Showcase the VFM in SA to indirectly ‘offset’ the expense of travelling to SA

✓ Continuously showcasing variety across the six pillars and SA USPs to improve destination appeal and increase

urgency to travel sooner than later

✓ Threading in key themes for Australasian travelers, i.e. sustainability; etc.

* Consumer centric – work with trade to fulfil consumer demand *


Australasia Market: Big things

BIG THINGS (#BT) 1. Get the different types of travelers (families, solo female, gen Y, gen Z, male, older affluent, interest groups) to

book South Africa by customizing our message & offering to them in a way that drives them to feel that "South Africa is

a destination for me'.

2. Get MICE travellers/corporates/agents to actively choose South Africa for their next business meeting/incentive by

promoting cost effective offerings with experiences that are only possible in SA and that encourage them to bring

somebody along (plus 1)

3. Get South African expats to positively promote South Africa and influence positive change in Australian perception

of South Africa by tapping into their (South African) passion points and providing them with sharable content and

platforms

4. Get the NZ traveller (holiday and MICE) to book their trip to South Africa getting them excited about the ease to get

to SA.

PROJECTS • Increasing interest in SA and driving conversion - #BT1 & #BT2 & #BT3 & #BT4

• Ignite MICE: Australia and New Zealand - #BT1 & #BT2

• Expat 360° - #BT1 & #BT3

• New Zealand: Welcome back - kick start campaign - #BT1 & #BT4


Contact people

• Regional General Manager: Hanneli Slabber on [email protected]

• Hub Head: Mosilo Sofonia on [email protected]

• Traffic: Nardia Roselli on [email protected]

mailto:[email protected]

mailto:[email protected]

Documents

AUSTRALIA: SOUTH AFRICA’S LONGITUDINAL PERFORMANCE · North West Mpumalanga Eastern Cape Limpopo Free State Northern Cape Average nights 2018 8119 7 10 Average ... • Leveraging