SA Tourism Strategies for Boosting Tourist Numbers in New Markets

Marketing SA in new Markets

Mashoto Zimba(mashoto@southafrica.net)

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Slide no. 2 © South African Tourism 2012

Contents









Mandate and Key Strategic Objectives is the Vision for Tourism

Mandate and Key Strategic Objectives

The mandate
Sustainable GDP Sustainable job Redistribution and
to SA Tourism Growth creation transformation
is ...

Increase in tourist Increase in tourist Increase length of
. . . through volume spend stay
six key
objectives . . .
Improve geographic Improve seasonality Promote
spread patterns transformation

Understand the Choose the attractive Market the
. . . by acting market segments Destination
in a focused
way to . . . Monitor and learn
Facilitate the Facilitate the
from tourist
removal of obstacles product platform
experience

Contents









Where we play

Responsibility AFRICA AMERICAS & the UK ASIA & AUSTRALASIA EUROPE

CORE MARKETS Angola USA Australia France
Botswana UK India Germany
Country Manager

DRC Netherlands
Kenya
Nigeria
Regional Director

South Africa
(Domestic)
INVESTMENT Mozambique Brazil China (including Hong Kong) Belgium
MARKETS Canada Japan Italy
Sweden

TACTICAL Lesotho Ireland New Zealand
MARKETS Swaziland
WATCH-LIST Malawi Argentina Republic of Korea Austria
MARKETS Namibia Denmark
Zambia Portugal
Zimbabwe Switzerland
Stakeholder

Spain
Manager

STRATEGIC Bahrain, Oman, Qatar,
IMPORTANCE Saudi Arabia

STRATEGIC Egypt, Ethiopia, Malaysia Greece
LINKS/HUBS Senegal, UAE, Israel, Singapore
Turkey, Ghana,
Tanzania, Uganda
Mauritius

Contents









Tourist arrivals to South Africa for January to June 2012 grew by 10.5% over 2011 to reach 4,416,373.
All regions showed positive growth , Central & South America showed highest growth and recorded 54.4%.

January to June

Europe
 640,231 arrivals
North America  9.6% up from 2011
 16.6% up from 2011 Middle East
 26,931 arrivals
 19.8% up from 2011

Asia
 40.7% up from 2011
Central & South America
 58,156 arrivals Australasia
 54.4% up from 2011
 63,475 arrivals
 14.6% up from 2011
AFRICA
 3,229,954 arrivals Indian Ocean Islands
GRAND TOTAL  8.3% up from 2011
 9,990 arrivals
 4,416,373 arrivals
 9.3% up from 2011
 10.5% no. 8 from 2011
Slide up © South African Tourism 2012
Note : Tourist Arrivals figures shown above for Jan - June 2012
Source: Table A Tourist Arrivals Jan - June 2012

Air market showed positive growth of 16.0%, this was contributed by positive growth in most air
markets regions.

Tourist arrivals to South Africa from Africa air markets, Jan - June 2012
250,000

200,000

150,000
Tourist Arrivals

100,000

50,000

0
Africa - Air Angola Dem Rep of Congo Kenya Nigeria Other Africa AIR
2011 165,246 18,057 15,926 14,008 27,886 89,369
2012 191,752 24,162 13,677 14,809 34,606 104,498
Difference 26,506 6,105 -2,249 801 6,720 15,129
% 16.0% 33.8% -14.1% 5.7% 24.1% 16.9%

Note: Africa Air Markets are markets where at least 60% arrives to SA use air transport; Africa Land Markets are markets where at least 60% of
arrivals Slide no. 9 road transport. Long-haul markets include all countries outside of Africa
to SA use © South African Tourism 2012


There was a 7.9% growth in tourist arrivals from land market, Zimbabwe was the biggest
contributor in this region with 21.2% growth, 157,884 more tourists than same period in 2011.

Tourist arrivals to South Africa from Africa land markets, Jan - June 2012

3,500,000

3,000,000

2,500,000

2,000,000
Tourist Arrivals

1,500,000

1,000,000

500,000

0
Africa - Land Botswana Lesotho Malawi Mozambique Namibia Swaziland Zambia Zimbabwe
2011 2,848,885 230,349 761,836 59,989 558,214 91,549 325,122 76,210 745,616
2012 3,075,123 197,620 809,182 67,634 551,914 92,753 373,085 79,435 903,500
Difference 226,238 -32,729 47,346 7,645 -6,300 1,204 47,963 3,225 157,884
% 7.9% -14.2% 6.2% 12.7% -1.1% 1.3% 14.8% 4.2% 21.2%

Note: Africa Air Markets are markets where at least 60% arrives to SA use air transport; Africa Land Markets are markets where at
least 60% of arrivals to SA use road transport. Long-haul markets include all countries outside of Africa

There has been incline in tourist arrivals from all markets in the Americas region resulting in an
overall incline of 23.8% compared to the same period in 2011.

Tourist arrivals to South Africa from the Americas, Jan - June 2012
300,000

250,000

200,000
Tourist Arrivals

150,000

100,000

50,000

0
Americas Brazil Canada USA Other
2011 198,584 22,087 27,134 133,781 15,582
2012 245,859 37,179 32,181 155,522 20,977
Difference 47,275 15,092 5,047 21,741 5,395
% Change 23.8% 68.3% 18.6% 16.3% 34.6%



Asia & Australasia saw 33.0% increase in tourist arrivals with growth in all major markets for
this region for this period compared to 2011.

Tourist arrivals to South Africa from Asia & Australasia, Jan - June 2012
300,000

250,000

200,000
Tourist Arrivals

150,000

100,000

50,000

0
China (including Hong Other Asia &
Asia & Australasia Australia India Japan
Kong) Australasia
2011 188,308 47,132 35,796 43,979 10,771 50,630
2012 250,456 54,114 60,272 53,291 14,197 68,582
Difference 62,148 6,982 24,476 9,312 3,426 17,952
% Change 33.0% 14.8% 68.4% 21.2% 31.8% 35.5%



There was 9.6% incline in tourist arrivals from Europe in this period with an increase in all
markets, Germany was the main contributor with 12,880 more tourists.

Tourist arrivals to South Africa from Europe, Jan - June 2012
700,000

600,000

500,000
Tourist Arrivals

400,000

300,000

200,000

100,000

0
Europe Belgium France Germany Italy Netherlands Sweden UK Other Europe
2011 583,991 16,984 48,191 105,896 20,503 45,284 19,789 205,170 122,174
2012 640,231 18,549 54,802 118,776 23,834 48,524 19,820 215,524 140,402
Difference 56,240 1,565 6,611 12,880 3,331 3,240 31 10,354 18,228
% Change 9.6% 9.2% 13.7% 12.2% 16.2% 7.2% 0.2% 5.0% 14.9%



Contents









Total Market Size

Based on the screening criteria, the segmentation frame represents 8.6 Mn Brazilians or 4.5% of the population

192.4 Mn
Total Brazilian
Population Filters Explanation
(100% of total)
 Household Income > R$ 40,000  Household income of
43.2 Mn per annum R$ 40,000 was the initial
Can Afford Long threshold for Brazilians
Haul Travel travelling long-haul for leisure
(22.4% of total)

11.5 Mn South Africa Tourism is
Reside in the  Household income > R$ 40,000 
prioritising 9 cities within
Prioritised Cities  Live in prioritised1 cities
(6.0% of total) Brazil

8.6 Mn  Household Income > R$ 40,000  Adults are the key participants
Are over 18  Live in prioritised1 cities in the travel buying process
Years of Age Adults (older than 18 years)
(4.5% of total) 

The segmentation frame represents 8.6 million Brazilian, all over the age of 18, living
in one of the 9 prioritised cities, with a household income greater than R$ 40,000


Note: 1São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Salvador, Recife, Fortaleza, Brasília or Curitiba
Source: Monitor and Grail Research and Analysis; IBGE Census, 2010; IBGE Population Estimate, 2011

Summary of Segments (1/2)
A E
Building up their lives Mature Couples
 Younger single people without children,  Over 30, wealthy, married and single people
from medium income households, who without children who are experienced
prefer to travel with friends and are more international travellers, who are looking for
likely to stay in B&Bs or 3-4 star hotels cultural and natural experiences and are
when on holiday eager to try new things
 Volume = 7.9% of total market  Volume = 13.6% of total market
 Value = R$ 12,200 per trip  Value = R$ 14,000 per trip

B F
Home-loving couples Experienced travellers
 Older couples without children and medium  People (single and married) from all ages
income who don’t travel a lot and when and incomes and without children who
they do are more likely to VFR travel frequently to explore new places and
 Volume = 5.3% of total market are more likely to book their trips online
 Value = R$ 11,200 per trip  Volume = 8.4% of total market
 Value = R$ 11,400 per trip
C Independent travellers G
Beginning to enjoy life
 Single or divorced people without children,
 Over 40 year-old couples with no children or
earning medium income who have taken 2-3 independent children, from wealthy
trips in the last 2 years, the majority of households who, although they don’t travel
whom prefer to travel alone and meet new often, say price is not a concern. They
people prefer less crowded and peaceful travel
 Volume = 3.6% of total market
experiences while exploring new cultures
 Value = R$ 12,300 per trip
D Young professionals  Value = R$ 17,700 per trip

 Single younger travellers without children,
from wealthy households, who are keen to
have fun, explore new places and are more
likely to use online sources
 Value = R$10,700 per trip


Summary of Segments (2/2)
H L
First time parents Local family travellers
 Medium income, young couples with  Middle-aged and wealthy couples with
children who are price sensitive but keen to children who are family-oriented and
have fun and relax with family when consider travel important for their lives.
travelling They enjoy relaxing holidays and are
 Volume = 2.8% of total market travelling closer to home
 Value = R$ 11,600 spent per trip  Volume = 7.5% of total market
I  Value = R$ 12,700 spent per trip
Focused on other priorities
 Young wealthy couples with children who
M
don’t think travel is a priority: they prefer Conservatives families
to save money, build up their home and  Older, wealthier couples with children who
they spend less on travelling than they do consider many options before travelling on
on other forms of entertainment holiday or to VFR. They are less likely to
 Volume = 4.7% of total market gather information online but expect to
 Value = R$ 10,000 spent per trip travel internationally more in the future
J  Volume = 6.7% of total market
Traditional Brazilian families
 Value = R$ 13,100 spent per trip
 Older couples with children from medium
income households, who want to spend time
N
with family when on holiday and prefer to Sophisticated families
travel during their children’s holidays  Over 30, wealthy and highly educated
 Volume =75.3% of total market couples with children who travel frequently
 Value = R$ 14,000 spent per trip with their partner. They consider travel a
K necessity and are spending more on travel
Family explorers and travelling further abroad
 Couples with children from all ages and  Volume = 11.2% of total market
incomes who travel a lot, to destinations  Value = R$ 13,100 spent per trip
which provide natural wildlife, relaxation,
cultural and family-friendly experiences
during a more cost-effective time of year
 Value = R$ 9,000 spent per trip

Prioritised Segments
Young Professionals Mature Couples Experienced Travellers Sophisticated Families

Young, single They are middle-aged They are specialists Business people in upper
professionals who are married business men without children who management with a
Demographics well educated and earn and women who don’t family who are earning
have been to college and
well for their age have children travel extensively very well

They work hard in the
They live with their Lifestyle is important to Balancing their career
week and relax on
parents, work hard and them and they enjoy and family lives is
Lifestyle weekends seeking
have an active social life interacting with other important to them
balance in their lives
in Sao Paulo people

They travel to relax and They are passionate They travel often to
They travel to have fun escape, taking walks in about travel looking for spend time together,
and create memories beautiful places &
Travel Mindset new, different and enjoying a mix of
with their friends enjoying culture and authentic experiences activities
shopping

They use online sources They use online sources They use online sources They use online sources
for information and use for information and use for information and use for information and use
Buying Process
both online and agents to both online and agents to both online and agents both online and agents
book their trips book their trips to book their trips to book their trips


Product Structure

Therefore, in order to offer a more attractive package to Brazilians SAT should provide a cost-effective base
package which addresses the general travel requirements and a menu of options for customisation by segment

Aspects covered by the Base Package
Product Structure

 Length of Stay
– All priority segments travel for two weeks at a destinations on
average
Base Package  Spend per trip
– Priority segments usually spend between R$ 10,000 and
R$ 15,000 per trip
 Accommodation
– Options should be budget driven with sufficient options to
illustrate both the affordability and quality of options
– Within each budget level, offerings which would appeal to
each segment should be represented
 Local Transport
D E F N
– Transfers, car-hire and taxicab offerings should be available
– Where relevant, transportation should be linked to activities


Young Professionals Activities

There are a wide-range of activities which would interest Young Professionals from Shopping at the Rosebank
market and visiting a Soweto shebeen to partying on Long Street or zip-lining in Hazyview
Experience new places, cultures and people Fun adventures with friends
 Young Professionals are still discovering the world.  Spending time with friends
They enjoy experiencing different ways of life while and creating fun memories is
having fun with their friends. For example, they’d important to them. They
enjoy: would enjoy:
– Spending time in Sandton – Partying on Long-street in
and Soweto seeing how Cape Town and Rosebank in
different people live in South Johannesburg
Africa – Zip-lining in Hazyview
– Going to a local shebeen and with a group of four
drinking with local South friends
Africans – Attending a South African
– Shopping at markets and stand-up comedy or poetry
shops in Sandton City, session in Braamfontein
Rosebank Market and the – Bungee jumping at the
V&A Waterfront Bloukrans Bridge
– Attending a local football – River-rafting down the
match at Soccer-city Sabie river with friends
– Understanding an African – Learning to dive at
culture at the Lesedi Village Sodwana in KZN


Source: Monitor and Grail Research and Analysis

Mature Couples Activities

Mature couples can relax and enjoy a comfortable experience by spending time walking in Durbanville Hills,
visiting Robben Island and enjoying sundowners in Camps Bay and some excitement shark-diving in Cape Town

Experience new places, cultures and people Fun adventures together
 Mature Couples need to relax when they travel and  They are also quite
enjoy spending time together doing activities which adventurous and
change their views on the world. For example: alternative and would
– Relaxing at a comfortable enjoy:
lodge in the Pilansberg – Relaxing sundowners on
– Walking through Durbanville Camps Bay beach
wine farm in the Cape – Ballooning over the
– Visiting Robben Island to see Magaliesberg
how prisoners lived – Microlighting over the
– Shopping in Sandton City for Cape Peninsular
fashion and luxury items – Enjoying a concert over
– Speaking with a Zulu warrior lunch in Constantia
at the Lesedi village – Shark-cage diving to
– Having a relaxing lunch in add some excitement to
Hout Bay the trip
– Enjoying a sunset over – Visit the penguin colony
Johannesburg at Boulder Beach



Experienced Travellers Activities

There are many authentic activities which will appeal to Experienced Travellers such as the Maropeng World
Heritage site, township experiences in Alexandra and tracking animals on foot in the Kruger National Park

Experience new places, cultures and people Fun adventures
 Experienced travellers look for new and different  More adventurous
experiences but also like to get the local perspective experiences can make their
to make sure it is authentic, such as: trip more impactful:
– Visiting Maropeng in the – Tracking animals on
Cradle of Humankind, one foot in the Kruger Park
of the Worlds heritage sites – Visiting the Cango Caves
– Take a self-drive trip through for a different
the Kruger National Park experience
– Authentic township – Hiking in the
experience in Alexandra Drakensberg to see the
– Make use of local Lesotho border
transportation including – Wine-tasting at Klein
Gautrain and Minibus Taxi’s Constantia
– Visiting District 6 to – Road-trip from Cape
understand the effect of Town to Port Elizabeth
apartheid – Enjoy traditional
– Visiting Hermanus to see the Babooti at a Cape Malay
whales restaurant



Sophisticated Families Activities

There are many family orientated activities which Sophisticated Families will enjoy such as interacting with
lion cubs at the lion park, visiting Sun City, riding ponies in the bush and watching dolphin shows at Ushaka

Experience new places, cultures and people Fun adventures with the family
 As sophisticated parents, this segment want to show  Fun activities are create
their children the world and create opportunities to for Sophisticated Families as
make memories together. In SA they can: everyone can relax and
enjoy the time together.
– Spend time on the beach with
Some examples are:
their children in Ballito
– Walking through the
– Interact with Lion cubs at the
Cape Town aquarium
Lion park near Johannesburg
– Visiting the Spier wine
– Visit Sun-City to enjoy activities
estate with children
for the whole family
activities
– Enjoy activities at resorts for
– Pony-riding through the
children giving parents a break
bush
– Do family safari’s where rangers
– Riding rollercoaster's at
show children interesting
Gold Reef City
wildlife
– Watching shows at
– Go to the zoo and see animals
Monte Casino
close up
– Watching a Dolphin show
at Ushaka Marine World



Channels: Travel Agents

Besides the growth of online bookings through supplier websites, travel agents (including both personal visits
and online interactions) are still the main channel for Brazilians

Brazil Travel Market Bookings (in USD Bn)2,
2008–2012E TOP TOUR OPERATORS & TRAVEL AGENCIES

24
22
15%
20 14%
8%
12% 6%
16
5%
11%
3%

79% 77%
83%
86%

TOP TRAVEL WEBSITES

2009 2010 2011E 2012E

Supplier Website Traditional Bookings
OnlineTravel Agents

Source: Monitor and Grail Analysis

Channels: Internet

Although Brazil ranked 5th for the number of people who can access the Internet, with 37% of the population
using the internet. Facebook is the most accessed website.

Internet users by economic class
89% Most Accessed General Websites
83%
76%
59% 79% 79%
41%
27%
16% 59%
7%
42% 40%
A1 A2 B1 B2 C1 C2 D E 38%

Internet users by age
72%
58% 62%
44%
34% Facebook Google You Orkut UOL Twitte
23% Tube r
9%

10-14 15-19 20-29 30-39 40-49 50-64 65+



Contents









Prioritisation of Consumer Segments
Total Size of the Frame
The segmentation frame represents 2.3 million Indians; i.e., people aged 18 or above, residing in the thirteen
focus cities and with a household income greater than INR 1,600,000

1,206.9 mn
Total Population
(100% of total)

7.2 mn  Household income of INR 1,600,000 million
Capable of Long
was found to be the threshold for Indians who
Haul Travel (0.6% of total) regularly participate in long-haul leisure
travel

Population in 3.6 mn  The greatest opportunity lies in the largest
Prioritised1 cities, as well as those cities which display
Cities (0.3% of total) strong socio-economic factors

2.3 mn
Adults  Adults (aged 18 or above) are the key
(0.2% of total) participants in the travel buying process

The segmentation frame represents 2.3 million Indians, all over the age of 18, living in one of
the prioritised cities, with a household income greater than INR 1,600,000

Note: 1The prioritised cities are: Ahmedabad, Amritsar, Bagalore, Chandigarh, Chennai, Delhi, Hyderabad, Kolkata, Ludhiana, Mumbai, Pune, Surat, Vadodara
Source: Monitor and Grail Research and Analysis; IMF; Indian Census, 2011, 2001; Oanda.com; EIU; United Nations, Department of Economic and Social Affairs
‘The Great Indian Middle Class’, National Council of Applied Economic Research, 2004

High Level Segment Overview
A E
Younger, Traditional, Couples Younger to Middle-Aged, Exotic and Worldly
 Couples, with young children, the majority Couples
of whom live in other metros and prefer to  Couples with no children who travel
stay with friends and family or in infrequently but enjoy exploring new
guesthouses and B&Bs when on holiday cultures and destinations while on holiday
 Value = INR 0.87 mn per person p.a.  Value = INR 0.53 mn per person p.a.

B Younger, Exotic and Worldly, Couples F Younger, Worldly, Singles and Couples
 Couples, with young children, who mainly  Singles and couples with no children, who
live in super metros, travel fairly frequently travel very frequently and seek adventure
and typically seek a romantic holiday or romantic holidays

C Younger, Worldly, Very High Income Families G
Middle-Aged, Traditional, Couples
 Couples, with dependent children, who
 Couples, with grownup children that have
travel very frequently and stay in B&Bs and left home, who typically travel to visit
guesthouses friends and family
 Value = INR 2.39 mn per person p.a.

Younger, Traditional, Singles and Couples Older, Traditional and Exotic, High-Very
D H
 Singles and couples with no children who High Income Couples
travel fairly regularly and look to have  Couples with no children who predominantly
romantic holidays when they travel live in super metros and travel fairly
 Volume = 13.8% of total market frequently
 Value = INR 0.48 mn per person p.a.  Volume = 5.0% of total market



I M
Middle-Aged, Worldly, Very High Income Middle-Aged to Older, Traditional and Exotic,
Couples Very High Income Couples
 Couples, some with children, who travel very  Couples, with dependent children, who
frequently and stay in five star hotels fairly predominantly reside in super metros and
regularly travel infrequently

J N
Middle-Aged, Traditional and Exotic, High Older, Traditional, High Income Couples
Income Couples  Couples, with dependent children, who
 Couples, with dependent children, the mainly stay in other metros and travel
majority of whom reside in other metros and infrequently, visiting friends and family
travel infrequently during holidays
O
K Older, Exotic and Worldly, High Income
Middle-Aged, Worldly, High Income Couples Families
 Couples, with dependent children, who live  Couples, with dependent children, who
mainly in super and other metros, travel very travel frequently, usually going on family
frequently holidays

L
Middle-Aged to Older, Traditional, Very High
Income
 Couples, with dependent children, who
travel fairly frequently and tend to visit
friends and family during holidays


Prioritised Segments

Segment I: Seasoned Status Segment C: Young Family
Segment F: Social Explorers
Seekers Adventurers

Seasoned Status Seekers are
Social Explorers are young singles and Young Family Adventurers are
predominantly middle-aged couples
Characteristics

couples without kids who have high to young, very high income, married
with kids, residing in the super
very high annual household incomes; couples with kids, who typically
metros; they have very high
Key

they are very well-educated and tend to reside in the larger metros; they
incomes, are well-educated and
work as specialists or professionals are well-educated and occupy
occupy mostly senior management
senior positions in the workplace
positions in the workplace

Seasoned Status Seekers are Social Explorers enjoy the thrill of With the increased responsibility
experienced travellers and thus seeing new places and meeting new of a young family, Young Family
look to derive the most out of their people. This segment is comprised of a Adventurers are interested in
trips to new destinations. They diverse range of travellers — at one end broadening their horizons and
prefer having a full itinerary of the spectrum are couples looking to exploring new cultures and
Behaviour
Travel

consisting of a wide range of go on a romantic holiday, at the other traditions, whilst having fun and
activities that allow them to end are singles travelling with friends spending some quality time with
explore new places while still looking to have fun, enjoy the nightlife their family. Finally, travelling
enjoying some family time away and take part in adventure sports. The relaxes and rejuvenates them,
from their usual busy lives. common theme across this segment is providing new impetus when they
that everyone is looking for fun, return to work.
freedom and a relaxing time.


Centre of Gravity
Products and Activities
These travellers are looking for partial packages with a trip length of between seven and twelve days, a spend of ~INR
175,000 per person and three to five star hotels. Safety and cuisine are priorities for the family segments
Seasoned Status Seekers Social Explorers Young Family Adventurers

 Look to stay for ten to twelve  Look to stay for seven to ten days  Look to stay for seven to ten days
days  Spend of ~INR 175,000  Spend of ~INR 175,000
 Spend of ~INR 200,000 (~USD 3,500) per person (~USD 3,500)
(~USD 4,000) per person  Seek comfortable and clean three  Seek three star hotels,
 Seek well-located, four to five to four star hotels guesthouses and BnBs
Products

star hotels  Prefer partial packages  Prefer partial packages with
 Prefer partial packages including  Typically travel to Cape Town, special rates for young kids
tour guides Johannesburg and Durban  Concerns over safety and security,
 Concerns over safety and security, and availability of Indian and
and availability of Indian and vegetarian food
vegetarian food  Typically travel to Cape Town,
 Typically travel to Cape Town, Durban, Sun City and Jo’burg
Johannesburg and Durban

 Enjoy having a full itinerary  Look for fun, thrilling activities  Seek a wide variety of fun,
filled with a wide variety of that give the sense of being free family-orientated activities
activities suitable for the and unrestricted  Key activities include:
whole family
Activities

 Key activities include: – Visiting major attractions
 Key activities include: – Visiting major attractions – Natural attractions including
– Natural attractions including – Adventure activities wildlife
wildlife – Nightlife – Relaxing
– Cultural attractions – Relaxing – Shopping
– Theme parks – Shopping – Adventure activities
– Adventure activities



Partial packages would appeal to travellers from all segments as it leaves some time for travellers to explore
on their own or simply relax; trips to South Africa should comprise visits to the major cities and locations
Type of Package Destinations

 Partial packages (flights, accommodation, airport  Packages to South Africa should several of the major
transfers and limited activities) are preferred as they cities and locations, ensuring that Indian travellers fully
allow travellers the chance to explore a destination at appreciate the diverse range of activities and
their own pace experiences on offer
– For example, a ten day package could consist of six – Major cities such as Cape Town, Durban and
days of pre-arranged activities and four days for Johannesburg provide Indian travellers with the
travellers to explore by themselves or simply relax chance to explore urban life in South Africa, visit
 Indian travellers would look to stay between seven and major tourist attractions, relax on beaches where
twelve days in South Africa and spend between INR possible and engage in a wide variety of activities
150,000 and INR 225,000 (USD 3,000–4,500) – Kruger National Park offers Indian travellers the
 These consumers seek accommodation that is clean, opportunity to view South Africa’s amazing wildlife
comfortable and well-located; there are, however, and natural scenic beauty
subtle differences in what each segment looks for – Sun City and the “Valley of the Waves” provides a
– Seasoned Status Seekers prefer luxury while Social family experience and is regarded as a status symbol
Explorers and Young Family Adventurers seek a due to its previous hosting of the IIFA1
decent standard of accommodation – For example, a ten day trip to South Africa could
 Special rates for children would appeal to the family include four nights in Cape Town, two nights in
segments and should be incorporated into packages for Durban, two nights at the Kruger National Park and
these segments one night apiece at Sun City and in Johannesburg
– E.g., entry fees for visits to theme parks could
possibly be incorporated into packages for Young
Family Adventures or Seasoned Status Seekers

Note:1 InternationalIndian Film Awards


Activities involving adventure, exploring and sightseeing are popular across all segment although some subtle differences exist
between segments; Indian and vegetarian food is a significant consideration for Indian travellers

Activities Cuisine

 Each of the priority segments seek holidays where they  Indian travellers have specific food requirements with
can explore the destination and participate in a wide- the availability of Indian or vegetarian cuisine at a
range of activities, where the activities offer destination influencing their choice of destination
something different from what they can experience  While some Indian travellers do like to explore the
back in India local cuisine at a new destination, having the option to
 Typical activities include exploring the natural scenic have either Indian food or pure vegetarian food is
beauty and culture, visiting the major tourist extremely important across all segments
attractions, nightlife, shopping and adventure – Most Indian travellers prefer to have Indian food
– In terms of nightlife, Social Explorers are looking to during their trip although they would be willing to
visit popular bars and clubs whereas Seasoned have local cuisines on some nights
Status Seekers are looking to dine-out and explore  SAT is currently producing a guide to the Top
the local culture at night 100 Indian restaurants in South Africa
– Each segment’s definition of adventure activities – Many Indian travellers are vegetarian. Although they
differs slightly can bring along ready-to-mix packets, destinations
 Seasoned Status Seekers and Young Family which cater for them are preferred
Adventurers look for “safe adventure”, e.g.,  The vegetarian options need not necessarily be
snorkelling or water-skiing Indian in style
 Social Explorers seek out more thrilling  SAT is currently producing a guide to the
activities that provide them with the adrenaline vegetarian restaurants in South Africa’s major
rush and feeling of escape cities. This guide should be made available on the
 Both Seasoned Status Seekers and Young Family SAT website and shared with the major tour
Adventurers look for family-orientated activities that operators to emphasise that South Africa does
appeal to both young children as well as adults (e.g., cater for vegetarians
theme parks, water parks, shopping or shows)


Centre of Gravity
Primary Sources of Travel-Related Information
Although word of mouth is the most popular source for travel-related information for Social Explorers and
Young Family Adventurers, Seasoned Status Seekers rely on online media for most of their travel-related
information
Primary Sources of Travel-Related Information, 2012
Seasoned Status Seekers
26% Social Explorers
Young Family Adventurers
Average
21% 21%

18% 18%
16% 16%
Percentage

15%
14%

12%

10% 10% 10% 10%
9% 9% 9%
8% 8% 8% 8%
7%

5% 5% 5%

3% 3%

1%

Word of Mouth Online Media Travel Magazines Travel Agents Travel Booking Television Social Networking
and Booklets / Tour Website Websites
Operators

Source: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012

Centre of Gravity
Topics on Which Information is Gathered
The information that each segment looks for regarding a destination can provide insights into the
characteristics of each segment; in this case we see Social Explorers are less interested in tourist attractions
than other segments

Topics on Which Information is Gathered, 2012
Social Explorers
76%
Young Family Adventurers
73% 73%
71% Average
70% 70% 69%

64% 64% 64%
61%
59%
Percentage

56%
54% 55% 52% 55%
53% 53%
52% 52% 52%
50%
48%
44% 44%
41%
40%

Major Accommo- Weather Transport Costs of Various Things / Local People
Tourist dation Facilities Activities Activities To and Culture
Attractions Do


Centre of Gravity
Websites

Google and Facebook are the two most popular websites across all segments

Websites Consumed in Leisure Time, 2012
91%
89% 89% Social Explorers
86%
82% 82% 82% Young Family Adventurers
79% Average1
73%
71% 70% 70% 70%
65%
62% 61%
Percentage

53% 53%
47% 47%
42% 41% 43% 42%
40% 39%
36% 36%

Google Facebook Yahoo Youtube Wikipedia Redif Orkut
f
Note: 1 Average
shown is across all segments and is not limited to the prioritised segments only

Centre of Gravity
Booking Channel

Although online channels are popular for booking both accommodation and airfare, consumers rely heavily on
personally visiting travel agents

Booking Channel Used to Book Accommodation, 2012 Booking Channel Used to Book Airfare, 2012
20% 25%
Personal
Online - 21% 26%
18% Visit -
Airline/Hotel 31%
23% Travel Agent 27%
19% 24%
Online - 21% Online - 27%
Travel Agent 8% Airline/Hotel 21%
17% 23%
Personal 17% 14%
12% Online - 13%
Visit -
6% Travel Agent 10%
Travel Agent 15% 14%
18% 10%
Personal
Telephone - 14% 7%
23% Visit -
Travel Agent 13%
14% Airline/Hotel 12%
10% 8%
Telephone - 8% Travel 7%
Airline/Hotel 19% Website 2%
11% 8%
Personal 7% 7%
11% Telephone - 5%
Visit -
15% Travel Agent 8%
Airline/Hotel 9% 5% Seasoned Status Seekers
6% 7% Social Explorers
Travel 7% Telephone - 5%
6% Young Family Adventurers
Website Airline/Hotel 8%
6% 5% Average
Slide no. 37
Percentage Percentage © South African Tourism 2010

Source: Monitor and Grail Analysis; ‘Quantitative Research Survey – India’, SAT, Jan 2012

Trade
Tour Operators and Travel Agents

 “The three biggest
outbound tour
operators in India are
Cox & Kings (which
claims to be the oldest
in the world –
established in 1758),
1
Thomas Cook and
SOTC/Kuoni”
- Market Insights: India,
European Travel Commission,
Mar 2010

Major Online Travel Websites, 2010-2011

3.9 April 2010
Monthly unique visitors1

3.5 April 2011
(million)

2.4
2.1
1.9 1.8
1.6
1.2
0.7
0.5

% Share of
Make My Trip3 Yatra3 Cleartrip3 Expedia3 Holiday IQ
Unique
Notes: 1Detailed profile of company in back-up
Slide no. 38
Visitors2 20.9% 19.0% 11.6% 9.9% © South African Tourism 2010
3.9%
Source: Monitor and Grail Analysis; “Market Insights: India”, European Travel Commission, Mar 2010; India Outbound 2011- MICE travel, Today’s Traveller
Newswire, 2011;

Contents









Possible Market

The study looked at South African adults earning more than R3,000 per month. Leaving a possible market of
~8.2 Mn people to target

Total South African 50 Mn1
population
(100% of total)

30.3 Mn
Adult population over
the age of 18 years
(60.6% of total)

8.2Mn2
Adults earning more than
R3,000 per month (personal
income) (16.4% of total)
 A previous SAT study has shown that...

The target market represents 8.2Mn South Africans, all over the age of 18 and earning a personal
monthly income of R3,000 or more
Note:1 2010figures; As per UNISA, 2~22 Mn people in SA earned less than ZAR 3,000-3,500 pm in 2010
Source: Monitor/ Grail Analysis; SAT Domestic Surveys


Low Income Older Singles & Couples Business Travellers
 Low-income Whites, Coloureds and Indians of  High-income Blacks, Coloureds and Indians,
all ages, with no kids aged 18-45, travelling for business

Low Income Families Well-to-Do Mzansi Families
 Low-income Whites, Coloureds and Indians of
 High-income Blacks, Coloureds and Indians
all ages, with kids with dependent kids, mostly middle-aged

Black Single-Parent Families
 Low-income Blacks travelling for VFR, Spontaneous Budget Explorers
including all ages and family situations  Middle- to high-income 18-24 years olds of all
races and all family situations
Low Income Black Singles
 Low-income Blacks travelling for holiday and Seasoned Leisure Seekers
special/ religious/ business events, including  White, middle and high-income, 25-45 year
all ages and family situations old people without children
Up & Coming Young Black Singles
 Middle-income, 25-35 year old Blacks, Established Holiday Families
Coloureds and Indians with or without kids  White, middle and high-income, 18-45 year
old people with children

New Horizon Families
 Middle-income Blacks, Coloureds and Indians Older Middle Income Whites
over 35 years old . Most are married with kids  Middle-income Whites of all family situations,
all over 46 years old

High-Life Enthusiasts Older High Income
 High-income Blacks, Coloureds and Indians,  Older, high income people of all races. Most
aged 25-45, without kids and mostly single are married and about half have dependent
kids

Focus Segments

Spontaneous Budget New Horizon High-Life Seasoned Leisure Well-to-Do Mzansi
Explorers Families Enthusiasts Seekers Families

 18-24  35+  25-45  25-45  18-45
 All races  Black, Coloured  Black, Coloured  White  Black, Coloured
and Indian and Indian and Indian
 R5,001+  R5,001+
 R5,001- R10,000  R10,001+  R10,001+

 Avg. length of  Avg. length of  Avg. length of  Avg. length of  Avg. length of
stay: 5.4 nights stay: 5.2 nights stay: 4.5 nights stay: 7.7 nights stay: 5.6 nights
 Trips/ year: 3  Trips/ year: 3.1  Trips/ year: 3.1  Trips/ year: 4.4  Trips/year: 3.2
 Avg. spend:  Avg. spend:  Avg. spend:  Avg. spend:  Avg. spend:
R1,252.00 R1,160.50 R1,265.54 R1,853.40 R1,687.80

Travel is a way to Travel is a way to Travel is a way of Travel is all about
Travel is a way to boost one’s social escaping the city,
educate their life and something
discover new status, and to and being able to
children, and to of a necessity.
people, places and experience the finer spend time with
provide them with Having grown up
adventures. things in life in new friends and family in
the opportunity to going on regular
Consumers in this and different new and different
broaden their holidays, this group
segment travel to settings locations. To a
perspectives. It is of consumers
get away from the certain extent,
also seen as quality understands the
monotony of daily travel is also about
time for the family value of travel
life; to add to their exposing the children
to spend together, experiences and
life experiences and to alternative ways
and a reward for memories over
fond memories of life and activities
hard work commodities

Spontaneous Budget Explorers
Products: What the Spontaneous Budget Explorers Look For
Spontaneous Budget Explorers are looking for trips that will allow them to take part in lots of activities in
new surroundings with their friends; these packages must, however, not be too prescriptive

WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK WHAT IS THE DESIRED OUTCOME OF PRODUCT
FOR? DEVELOPMENT FOR THIS SEGMENT?

 Spontaneous Budget Explorers are looking to stay at  Products aimed at this segment should:
2- to 3-star BnB or self-catering accommodation – Be affordable
 Typically, they drive to the destination – Be activity-filled without being too prescriptive
– For further destinations, they may take a bus or about when the activities must be done
fly on a low-cost carrier – Take into account that the journey must be as
 They will typically pay ~R1,500 for a weekend trip enjoyable as the destination

 They take ~3 weekend trips during the year, – Allow them to have a space in which to socialise
especially over long weekends with their friends (e.g., a communal outdoor
area)
 They are likely to take a week-long trip in
December, either with: – Take into account their propensity for spontaneity
and adventure
– Family, in which case they are not paying for, or
planning, the trip
79 % of Spontaneous Budget Explorers prefer a weekend
– A significant other or friends holiday filled with activities compared to a quiet weekend
getaway


Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Spontaneous Budget Explorers
Products: Some Illustrative Examples
Ideal packages for Spontaneous Budget Explorers should sell fun with friends. Examples of these packages
include driving trip promotions, road trip packages and even activity-driven day trips
DRIVING TRIP PROMOTIONS ROAD TRIP-DRIVEN PACKAGES
 Many Spontaneous Budget Explorers use their
cars for local getaways  A tour of South Africa on a bus for 2 weeks with
– Promotions related to savings that can be other young South Africans provides
made on the road are one way to encourage Spontaneous Budget Explorers with the
consumers to travel more opportunity to visit multiple destinations
 These promotions could include: without too much organisational hassle, while
– A frequent traveller card that allows for enabling them to pay most of the costs
discounts on the toll roads in low season upfront
months – e.g. A road tour of the coastal regions
– Loyalty cards at garages, e.g. Fill up at only starting in Durban and ending in Cape Town
Engen filling stations and earn points to get a – e.g. Overland safari covering the provinces
free 6-pack of Coke in the interior

ACTIVITY- DRIVEN DAY TRIPS
Save on road
Spontaneous Budget Explorers are keen to try
trips within 
new things and experience different
South Africa environments, but may not be able to afford
overnight trips
 Encouraging day-trips can drive the culture
of spend on tourism activities
 Packages could include activities and a meal
55% of Spontaneous Budget Explorers said that at a discounted rate
special offers on flights would make them travel – e.g. Bungee jump from the Soweto towers
more, while 41% felt that affordable and customised and have lunch at a restaurant in Orlando
package deals would encourage them to travel

Source: Monitor/ Grail Analysis

SA Tourism Strategies for Boosting Tourist Numbers in New Markets

SA Tourism Strategies for Boosting Tourist Numbers in New Markets

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