SADC Air Market - South African Tourism

CAS-COD-Prez-Date-CTL 1 

Confidential 

MARKETING 

SOUTH AFRICA IN 

AFRICA: 

SADC Land and 

Air Markets 

South African Tourism 

Second Edition 

Copyright © 2006 Monitor Company Group, L.P. — Confidential — XXX

The Tourism Growth strategy gives South African Tourism a clear business 

strategy on which we base all our marketing choices 

The Tourism 

Act’s mandate to 

SA Tourism is ... 

. . . through six 

key objective 

. . . by acting in a 

focused way to... 

Marketing SA in Africa: Land Markets second edition 2007 

Sustainable GDP 

Growth 

Increase in tourist 

volume 

Improve geographic 

spread 

Understand the 

market 

Facilitate the 

removal of obstacles 

Sustainable job 

creation 

Increase in tourist 

spend 

Improve seasonality 

patterns 

Choose the attractive 

segments 

Facilitate the product 

platform 

Redistribution and 

transformation 

Increase length of 

stay 

Promote 

transformation 

Market the 

Destination 

Monitor and learn 

from tourist 

experience 

2 Copyright © 2007 SA Tourism: Cannot be used without permission

SA Tourism is the tourism marketing organisation of South Africa 

South African Tourism is the official tourism marketing organisation of South 

Africa. We market across the world focusing on three groups of travellers: 

international leisure travellers, the domestic and regional traveller, and business 

tourists who travel to South Africa for conferences and incentives. A key part of 

our business is to: 

Understand the 

Market 


Choose the 

Attractive Segments 

Market the 

Destination 

This booklet is the result of research South African Tourism has undertaken 

across the African continent in the past five years and is to help market South 

Africa in Africa. In Africa we focus on SADC air and land markets, where most of 

arrivals come from, West and East Africa with the focus is on Nigeria and Kenya 

and have limited activities on the Middle East. Against the research we have 

done, the Africa and Middle East Portfolio has developed activation plans for 

these markets. These plans are available from our office in Johannesburg (see 

address on the back cover). Current information on arrivals from the rest of Africa 

to South Africa are available on our website www.southafrica.net/research and 

www.southafrica.net/trade 


Agenda 

� Context 

� Review of Arrivals from SADC 2002-2005 

� A strategy for growing SADC Arrivals 

– Land Market 

– Air Market 


� Attractiveness of SADC Air to South Africa 

� Importance of SADC Air to South Africa 

� South Africa’s relative position in each market 

� Way Forward in SADC 


Context – Africa is important 

The African tourism market is critical to the success of SA’s overall tourism growth strategy 

Africa delivers 

most arrivals 

Africa is growing 

Africa is 

accessible 

Africa still more 

untapped 

potential 


� Africa is the base-load of international tourism to South Africa, delivering 

around 70% of all arrivals 

� SADC countries dominate the number of arrivals by far 

� Travel and tourism by Africans has, and is predicted, to continue to grow 

faster than other regions 

� The value that Africa brings to the SA economy goes beyond tourism (ie 

hotels and attractions) and has major benefits for the whole economy 

(especially in manufacturing and downstream industries) 

� Africa is SA’s natural hinterland 

� SA is close, and acts as a natural hub, which is accessible to significant 

numbers of travellers, particular those in Southern Africa, and they are 

familiar with the country 

� SA has the potential to further exploit its proximity and its strengths as a 

choice destination in the African market which is still emerging from purposebased 

travel into a true leisure-driven tourism market 

� Outside of SADC, SA is a relatively small player which suggests tremendous 

opportunity for future growth 


Context – Africa is Important 

Continental Africa delivers over 70% of all arrivals into SA 

North America 

� 303,675 arrivals 

� 10.7% up from 2005 

Central & South America 


� 13.8% up from 2005 

Note : Arrivals figures shown above for 2006 

Source: SAT Tourist Arrivals Data, 2005 and 2006 


AFRICA 

� 6,267,576 arrivals 

� 17.0% up from 2005 

Europe 

� 1,381,881 arrivals 

� 5.6% up from 2005 

Middle East 


� 9.5% up from 2005 

Asia 


� 8.1% up from 2005 

Australasia 


� 13.2% up from 2005 

Indian Ocean Islands 


� 2.3% down from 2005 



Continental Africa delivers over 70% of all arrivals into SA 

Predominantly 

Air travel 

� 8% of total arrivals 

from Africa 

� 6% of international 

arrivals to SA 


Western 

Sahara 

Predominantly 

Land travel 

� 92% of total arrivals from Africa 

Morocco 

� 64% of total international arrivals to SA 

Saint Helena 

Algeria 

Tunisia 

Libya 

Cape Verde 

Mauritania Mali 

Niger 

Senegal 

The Gambia 

Guinea-Bissau 

Chad 

Sudan 

Guinea 

Cote 

Nigeria 

Central 

Sierra Leone d'Ivoire 

Liberia 

Benin 

Burkina Togo 

Faso 

Ghana 

Sao Tome and Principe 

African 

Came- 

Republic 

roon 

Congo Democratic 

Gabon 

Republic of 

Kenya 

Equatorial Guinea 

Congo 

Tanzania 

Angola 

Zambia 

Ethiopia 

Eritrea 

Somalia 

Uganda 

Rwanda 

Burundi 

Mauritius 

Zimbabwe 

Mozambique 

Namibia 

Botswana 

Madagascar 

South Africa 

Egypt 

Swaziland 

Lesotho 

Seychelles 

Malawi 

Comoros 

Djibouti 

Reunion 



Travel from Africa has been growing at 6% over the past six years 

Land arrivals into SA from Africa have been growing at a slower rate (CAGR2000-2006= 6%) than 

air arrivals (CAGR2000-2006= 7.5%) over the same period 

Other Africa 

Non-neighbouring 

SADC 

Neighbouring 


Note: 1 CAGR – Compound Annual Growth Rate. The land travellers out of the rest of Africa are insignificant. 

Source: Statistics South Africa 


Arrivals 

Arrivals 

500,000 

400,000 

300,000 

200,000 

100,000 

0 

6,000,000 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

0 

Breakdown of Air travellers to SA (00-06) 

20% 23% 26% 

26% 28% 29% 

54% 49% 45% 

2000 2001 2002 2003 2004 2005 2006 

Breakdown of Land travellers to SA (00-06) 

97% 96% 95% 

27% 

28% 

45% 

29% 

26% 

46% 

96% 96% 

25% 

29% 33% 

46% 

25% 

43% 

96% 96% 

2000 2001 2002 2003 2004 2005 2006 

CAGR 1 (00-06) 

11.9% 

11.3% 

3.4% 

11.6% 

4.7% 


Arrivals to Africa 

(Millions) 


Further growth into Africa is likely to be driven by intra-regional travel 

The World Tourism Organization has predicted that the main driver of growth in 

intraregional arrivals would driven by the increased wealth within many of the African 

nations, resulting in a transformation of tourism in the region 

80 

60 

40 

20 

0 

Long Haul 

Intraregional 

43% 

57% 


International Tourist Arrivals to Africa — Intraregional vs. Long-Haul 

(Actual and Forecasts) 

38% 

62% 

37% 

63% 

35% 

65% 

1995 2000 2010 2020 

Source: World Tourism Organization - Tourism 2020 Vision: Africa Volume 1 

CAGR 

(1995-2020) 

4.7% 

6.0% 



However, there are specific challenges associated with marketing in Africa 

The African tourism market is still developing and requires unique strategies 

The African 

Outbound Market 

is Mostly 

Purpose Driven 

The African 

Leisure Market is 

only still 

Emerging 

The Barriers to 

Travel are 

Significant 


� Travel within and out of Africa is predominantly multi-purpose in nature 

driven by shopping, which is characteristic of source markets with underdeveloped 

trading systems 

� Pure leisure travel is only emerging 

– This suggests that distinct leisure-driven segments are still not 

clearly defined 

� Activation of the market for pure leisure travel is likely to have limited 

potential unless bundled together with other activities, particularly business 

� Travel channels are geographically distinct, and restrict market access 

except where destinations are accessible by road 

� Airlift capacity is limited in some markets 

� Costs of air travel within Africa in general are high 

� Immigration controls and visa requirements are significant, and represent 

a major barrier to further growth 


Overview of the Integrated Strategy for Africa 

In SA Tourism portfolio 2008 – 2010 Africa has a central role 

esponsibility 

Portfolio Manager 

Stakeholder 

Manager 

Country Manager 

Global 

Channel 

Manager 

CORE 

MARKETS 

INVESTMENT 

MARKETS 

TACTICAL 

MARKETS 

WATCH-LIST 

MARKETS 

STRATEGIC 

IMPORTANCE 

STRATEGIC 

LINKS/HUBS 


AFRICA 

And Middle East 

Botswana 

Domestic 

Kenya 

Nigeria 

Angola 

DRC 

Mozambique 

Zimbabwe 

Ghana 

Lesotho 

Swaziland 

Tanzania 

Egypt 

Namibia 

UAE 

Bahrain, Oman, Qatar, 

Saudi Arabia 

Ethiopia, Zambia, 

Senegal 

AMERICAS & the UK ASIA & AUSTRALASIA EUROPE 

USA 

UK 

Australia 

India 

Canada China (incl. Hong Kong) 

Japan 

Brazil Malaysia 

New Zealand 

Rep of Korea 

France 

Germany 

Netherlands 

Italy 

Sweden 

Singapore Belgium 

Ireland 

Switzerland 

Austria 

Denmark 

Norway 

Spain 

Argentina Thailand Greece 



SAT has chosen four regions in Africa and this booklet’s focus is on SADC 

Western 

Sahara 

Morocco 


Algeria 

� Re-position South Africa as a 

tourism destination 

� Leverage, lead and incentivise 

the channels 

� Focus on the hyper-wealthy, 

multi-purpose and ex-pat 

consumer categories 

� Start in Nigeria as the launch-pad 

Tunisia 


Swaziland 

Lesotho 

� “Dial up the volume” 

Reunion 

East Africa 

� Focus on key consumer categories 

� Leverage the channels 

� Use Kenya as the launch-pad - extending 

later to Tanzania and Uganda 

Cape Verde 


Niger 

Senegal 

Eritrea 


Chad 

The Gambia 

Sudan 

� Focus on both land and air 

Guinea-Bissau 

markets 

Guinea Cote Nigeria 

Central 

Ethiopia 

� Defend our current market share 



Came- 

Republic 

� Focus on increasing yields 

Liberia 

Somalia 

Benin roon 

Burkina Togo 

� 

Uganda 

Provincial and Local action are 

Faso 

Congo Democratic Kenya 

Ghana Gabon 

key lever to increase spend and 


Republic of 

Rwanda 

length-of-stay through marketing 


Congo 

Burundi 

at “point of consumption” 

Tanzania 

West Africa 

Saint Helena 

Angola 

Zambia 

Seychelles 

Malawi 

Comoros 

Djibouti 

Domestic 

Mauritius 

Zimbabwe Mozambique 

Namibia 

Madagascar 

Botswana 

� Grow the market in total by 

focusing on emerging travel 

segments 

� Continue to develop a cooperative 

intergovernmental 

programme 

� Focus on changing behaviour 

around seasonality and purpose 

� Develop appropriate products 

and pricing to unlock value 



We market in five regions and this booklet focuses on SADC 

Morocco 

� Re-position South Africa as a 

tourism destination 

� Leverage, lead and incentivise 

the channels 

� Focus on the hyper-wealthy, 

multi-purpose and ex-pat 

consumer categories 

� Start in Nigeria as the launch-pad 


Tunisia 


Middle East 

� Due to relatively low 

arrivals the Middle East is a 

tactical opportunity 

Swaziland 

Lesotho 

� “Dial up the volume” 

Reunion 

East Africa 

� Focus on key consumer categories 

Western 

Algeria 

� The number of airlines 

� Leverage the channels 

Sahara 

from the Gulf region makes it � Use Kenya as the launch-pad - extending 

an important regional hub for later to Tanzania and Uganda 

Cape Verde 


global air traffic 

Niger 

Senegal 

Eritrea 


Chad 

The Gambia 

Sudan 

� Focus on both land and air 

Guinea-Bissau 

markets 

Guinea Cote Nigeria 

Central 

Ethiopia 

� Defend our current market share 



Came- 

Republic 

� Focus on increasing yields 

Liberia 

Somalia 

Benin roon 

Burkina Togo 

� 

Uganda 

Provincial and Local action are 

Faso 

Congo Democratic Kenya 

Ghana Gabon 

key lever to increase spend and 


Republic of 

Rwanda 

length-of-stay through marketing 


Congo 

Burundi 

at “point of consumption” 

Tanzania 

West Africa 

Saint Helena 

Angola 

Zambia 

Seychelles 

Malawi 

Comoros 

Djibouti 

Domestic 

Mauritius 

Zimbabwe Mozambique 

Namibia 

Madagascar 

Botswana 

� Grow the market in total by 

focusing on emerging travel 

segments 

� Continue to develop a cooperative 

intergovernmental 

programme 

� Focus on changing behaviour 

around seasonality and purpose 

� Develop appropriate products 

and pricing to unlock value 



Travel is at the introductory stage of tourism development in Africa 

Market 

Symptoms 

Tourism 

Authority 

Actions 

% of 

population 

traveling for 

leisure 

Consumer 

Product 

Competitor 

Channel 

Marketing 

Overall strategy 



� Uninformed, Price insensitive, 

multi-purpose 

� Very individualized 

� Status oriented 

� few 

introduction growth maturity 

Nigeria 

� One-stop-shops 

� Unsophisticated, isolated, 

experience based 

� Combine with trade initiatives 

� Develop positioning 


Kenya 

Botswana 

Tourism Industry Life Cycle 

China, India 

Australia 

� Seek information & 

opportunity; discover leisure 

� Emergence of packages 

(seeking scale effects) 

� Emerging specialization / 

focus 

� Integrate products; 

information/choice provider 

� “shout”: get as many as you 

can 

� Facilitate scale effects (e.g., 

packages) 

� Very informed, price sensitive, 

focus on leisure 

� Specialized packages 

� High competition 

� Clear focus 

� Specialization; Information 

provider 

� Adapt trade and market to 

select segments 

� Understand segments & 

select 

* The duration of the four phases of the life cycle may vary significantly; their graphical representation with equal distances may thus be misleading. 

Note: Framework based on Michael Porter: Competitive Strategy, 1980, Chapter 8 (Industry Evolution) 

USA 

Italy 

This phase may be very long 

Germany, Netherlands, 

France, UK, Japan 

Time* 


Agenda 

� Context 











Review of arrivals 

SADC arrivals have increased by 6.5% over the past four years 

Ten Thousands 

600 

500 

400 

300 

200 

100 


0 

435.1 434.3 

Source: Combined SAT Departure Survey Data, 2002-2005 

Volume by Year, SADC 2002-2005 

453.1 

525.4 

2002 2003 2004 2005 

02-05 

CAGR 

6.5% 



Lesotho, Swaziland and Botswana have been the largest source markets 

Thousands 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

116 


0 

CAGR 

2002-2005 

Angola 

3,169 

Botswana 

5,571 

Lesotho 

Source: Combined SAT Departure Survey Datasets, 2002-2005 

Total Volume: SADC, 2002-2005 

1,901 

Mozambique 

18,479 

3,341 

Swaziland 

486 

Zambia 

2,498 

Zimbabwe 

140 

Other SADC 

Air 

1,258 


Land/Air 

-3.3% 0.6% 12.7% 4.2% 5.2% 1.3% 8.3% 9.6% 1.5% 



SADC tourists are most likely to be traveling for General Holiday or VFR 

Business shopping and personal shopping are showing the most growth, along with the group 

of SADC tourists who have visited 10+ times 

Percent of arrivals 

50% 

40% 

30% 

20% 

10% 

0% 

02-05 

CAGR 

9% 

Business 


SADC: % of Volume by Purpose 

2002-2005 Combined 

5% 

Business 


23% 

General 

Holiday 

14% 15% 

Business 

Shopping 

Personal 

Shopping 

24% 

5% 5% 

-21.7% 10.9% -6.7% 34.0% 20.5% 17.7% 18.5% -8.7% 

VFR 

Medical 

Other 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

SADC: % of Volume by Times Visited 


7% 

First 

Time 

11% 

12% 

15% 

55% 

2-3 Times 4-5 Times 6-9 Times 10+ 

Times 

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. 

visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, 

exhibition, event or as part of an incentive 



02-05 

CAGR 

18 Copyright © 2007 SA Tourism: Cannot be used without permission 

1% 

Lived in 

SA 

Before 

-10.5% -18.2% -16.5% 11.7% 23.9% -100.0%


SADC tourists typically earn less than R5,000 per month and are aged 25-44 

R5,000 – R9,999 earners and people aged 25 – 34 are showing the most growth; volume of 

tourists over 45 is declining 


75% 

60% 

45% 

30% 

15% 

0% 

03-05 

CAGR 


SADC: % of Volume by Income 


64% 

21% 

< R5 000 R50 00 to 

R9 999 

9% 

R10 000 to 

R19 999 

4% 

R20 000 to 

R39 999 


2% 

> R40 000 

8.2% 25.8% 9.2% -8.7% -30.9% 


50% 

40% 

30% 

20% 

10% 

0% 

02-05 

CAGR 

11% 

SADC: % of Volume by Age 


33% 

31% 

15% 


7% 

4% 

18-24 yrs 25-34 yrs 35-44 yrs 45-54 yrs 55-64 yrs 65+ yrs 

5.3% 18.7% 13.2% -6.6% -20.5% -13.6%


They are also typically married with children under 18 and traveling via land 

Single tourists with no children or no children under 18 and land arrivals are growing 


50% 

40% 

30% 

20% 

10% 

0% 

02-05 

CAGR 

SADC: % of Volume by Marital Status 


30% 

Married 

or living 

together, 

with 

children 

under 18 

10% 

24% 



4% 

9% 

20% 

3% 

Married Married Refused Single, Single, Single, 

or living or living divorced, divorced, divorced, 

together, together, widowed widowed widowed 

with no with no 

with with no with no 

children children children children children 

under 18 under 18 under 18 

NA -6.6% -27.4% -43.4% -0.1% 7.3% 179.6% 


100% 

80% 

60% 

40% 

20% 

0% 

03-05 

CAGR 

02-05 

CAGR 

SADC: % of Volume by Mode of Entry 


8% 

92% 

Air Land 

6.3% 10.2% 

-30.4% 12.1% 



Mozambique and Zimbabwe are the largest contributors to TFDS 

This pattern appears to be continue in 2006 as spend started to fall from most SADC markets 

Rand (Billion) 

45 

40 

35 

30 

25 

20 

15 

10 


5 

0 

CAGR 

2003-2005 

Total Foreign Direct Spend (without Capex) by SADC Market, 2003-2005 

1.0 

Angola 

12.6 12.0 

Botswana 

Lesotho 

Note: TFDS (excl. capex) without Capex 


34.8 

Mozambique 

9.8 

Swaziland 

2.6 

Zambia 

18.4 

Zimbabwe 


1.0 



7.0 



6.7% 25.7% 12.5% 37.6% 22.5% -5.6% 17.7% 34.0% 56.1%


TFDS (without capex) from the SADC region increased over 2003 to 2005 

Rand (100 Million) 

600 

500 

400 

300 

200 

100 


0 

272.7 


TFDS (without Capex), SADC 2003-2005 

304.7 

415.6 

2003 2004 2005 

03-05 

CAGR 

23% 



The primary drivers were increased volume and spend per day 

Rand (100 MM) 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 


0 

273 

Note: TFDS (excl. capex) without capex 


SADC Value Drivers, 2003-2005 

83 

117 

2003 Volume Spend / Day LOS 2005 

57 

416 


Rand 


Within SADC, Mozambique has the highest foreign direct spend per day 

3,500 9,000 

3,000 4,000 

2,500 

2,000 

1,500 

1,000 

500 


0 

CAGR 

2003-2005 

Angola 

TFDS (without Capex) per Day by SADC Market, 2003–2005 

Botswana 

Lesotho 

Source: Combined SAT Departure Survey Datasets, 2003–2005 

Mozambique 

Swaziland 

Zambia 

Zimbabwe 



2003 

2004 

2005 


Land / Air 

16.0% 43.3% 25.2% 3.3% 16.3% -12.0% 5.1% 21.8% 3.9% 



It appears to be correlated with an increase in GNI per Capita in most markets 

This trend has not held true for Zambia and Angola where spend per day has decreased while 

GNI per capita has increased; as a result of steady economic growth, residents of these 

countries may be more able to purchase goods within their own country or are visiting other 

countries (like Brazil in the case of Angola) 

Angola Botswana Lesotho Mozambique Swaziland Zambia Zimbabwe 

2002 1,157 783 

Spend per day (Rand) 

492 1,062 662 1,459 975 

2003 615 1,243 450 4,360 734 1,012 925 

2004 658 1,356 497 8,196 923 1,006 906 

2005 827 2,553 705 6,629 993 783 1,021 

Economic Growth (% yoy) 

2002 14.4% 5.0% 3.5% 8.2% 2.9% 3.3% -4.4% 

2003 3.5% 6.7% 3.1% 7.9% 2.4% 5.1% -10.4% 

2004 11.1% 4.9% 3.2% 7.5% 2.1% 5.4% -4.2% 

2005 14.7% 3.8% 1.2% 7.7% 1.8% 5.1% -7.1% 

Correlation with 

spend per day 

0.70 -0.63 -0.95 -0.99 -0.96 -0.89 0.02 

Annual GNI per Capita (US$) 

2002 610 2,700 540 210 1,180 310 890 

2003 690 3,500 590 230 1,320 350 920 

2004 930 4,380 740 270 1,700 400 620 

2005 1,350 5,180 960 310 2,280 490 340 

Correlation with 

spend per day 

-0.23 0.92 0.91 0.80 0.95 -0.88 -0.54 

Note: GNI per capita (formerly GNP per capita) is the gross national income, converted to U.S. dollars using the World Bank Atlas method, divided by the 

midyear population. 

Source: SAT Departure Survey, World Bank Statistics Database 




Markets with high GDP are more likely to visit for reasons other than shopping 

Percentage of Arrivals 

100% 

80% 

60% 

40% 

20% 

0% 

11% 

5% 

16% 

2% 

3% 

37% 

9% 

18% 

24% 

14% 

17% 

4% 

11% 

SADC Countries: % of Volume by Purpose of Visit 


5% 6% 

6% 7% 

18% 

34% 

14% 

11% 

17% 

2% 

2% 5% 7% 4% 5% 

3% 

7% 5% 3% 

5% 

20% 

33% 

26% 23% 

5% 3% 6% 

6% 6% 5% 

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. visiting a client, signing deals, negotiating 

a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, exhibition, event or as part of an incentive 

Source: Combined SAT Departure Survey Datasets, 2002-2005, World Bank Statistics Database 



23% 

14% 

19% 

20% 

5% 

8% 

27% 

9% 

21% 

25% 

12% 

3% 

37% 

4% 

24% 

15% 

14% 

23% 

5% 

11% 9% 

Angola Botswana Lesotho Mozambique Swaziland Zambia Zimbabwe All SADC 

2005 GDP (US$) 28.0 9.4 1.5 6.6 2.7 7.3 3.4 NA 

2005 GNI / Capita 

(US$) 

2005 Economic 

Growth Rate 

1,350 5,180 960 310 2,280 490 340 NA 

14.7% 3.8% 1.2% 7.7% 1.8% 5.1% -7.1% NA 

Other 

Health/medical 

VFR 

Personal Shopping 

Business Shopping 

General Holiday 

Business Tourism 

Business

Rand Billion 


In SADC the majority of value is captured by South Africa 

A very high percentage of value has been captured for tourists from Botswana, Lesotho, 

Mozambique, Swaziland and Zimbabwe 

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

1.5 

1.0 

Angola 


Total Value (Prepaid vs. Foreign Direct Spend) by Market (SADC), 2003-2005 

0.5 

13.6 12.8 

1.0 0.8 

12.6 12.0 

Botswana 

Lesotho 

36.4 

1.6 

34.8 

Mozambique 

10.9 

1.1 

9.8 

Swaziland 

3.6 

2.6 

Zambia 

0.9 

20.4 

2.0 

18.4 

Zimbabwe 

1.6 

1.0 



0.5 


9.0 

2.0 

7.0 



66.7% 93.0% 93.6% 95.7% 90.3% 73.6% 90.2% 67.2% 77.9% 


Percentage of 

Total Market 

Value Captured 

(’03-’05) 

Prepaid 

Spend 

Total Foreign 

Direct Spend 

without Capex


Average spend per day was the highest for personal and business shoppers 

Spend (Rand) 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 


0 

Value / Volume 

(03-05) 

Percent of 

Volume (03-05) 

Average TFDS excl. capex per Day by Purpose of Travel, 2003-2005 

1,288 

Business 

1,094 937 

Business 


General 

Holiday 

404 

Visiting friends 

/ relatives 

1,002 

Health / 

medical 

294 

Other 

3,565 

Shopping - 

buying goods, 

personal use 

5,376 

Shopping - 

buying goods, 

business use 

1.02 0.63 0.99 0.41 0.70 0.45 1.41 1.94 

6.25% 5.02% 20.95% 26.13% 5.37% 4.38% 15.99% 15.91% 

Note: TFDS (excl. capex) without capex; Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or 

activities that are related to one’s job e.g. visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose 

of attending a conference, meeting, exhibition, event or as part of an incentive 

Source: Combined SAT Departure Survey Dataset, 2003-2005 



SADC tourists mostly buy clothing and groceries as well as media and jewelry 

Hundred Thousands 

120 

100 

80 

60 

40 

20 

100 


0 

Clothing 

Volume of Tourists Purchasing Items, 2002-2005 (SADC) 

84 

Groceries 

28 

Media 

16 15 13 13 

Jewellery 

Nothing 

Appliances 

Curios/crafts 

10 8 

Motor vehicle 

spares 

Hardware 

4 2 

02-05 CAGR 42% 65% 354% 40% 179% 140% 90% 56% 250% 81% 110% 

03-05 CAGR 21% 9% 47% 14% -2% 29% 54% 29% 37% 53% 3% 



Motor vehicle 

Furniture


Tourists purchase clothing, groceries, media and jewelry 

And Zimbabwean tourists are more likely to purchase appliances, motor vehicle spares and 

hardware while Botswana tourists are more likely to purchase motor vehicles and Mozambicans 

are more likely to purchase furniture 

100% 

80% 

60% 

40% 

20% 

0% 

Clothing 

Groceries 


Media 

Volume Tourists Purchasing Items, 2002-2005 

Nothing 

Jewellery 

Note: Excludes shopping, nightlife, and social activities 


Appliances 

Curios/crafts 

Motor vehicle 

spares 

Hardware 

Motor vehicle 

Furniture 

Medical 

equipment 

/ medicines 


Gifts/toys 

Zimbabwe 

Zambia 

Swaziland 

Mozambique 

Lesotho 

Botswana 

Angola


Beach, cultural attractions, business and trading are top activities 

Hundred Thousands 

30 

25 

20 

15 

10 

26 


5 

0 

Beach 

Volume of Tourists by Activity w/in South Africa, 2002-2005 (SADC) 

25 

Cultural, 

historical 

and heritage 

24 

Business 

22 

Trading 

Note: Excludes shopping, nightlife and social 


22 

Visited a Casino 

19 

Wildlife 

13 12 

Sporting 

Visiting natural 

attractions 

10 

Medical 

9 

Theme parks 

5 5 

Health 


Adventure 

2 

None


Tourists from the landlocked countries are most likely to visit the beach 

Lesotho tourists are likely to visit cultural attractions while many Mozambicans trade while in 


Percentage 

100% 

80% 

60% 

40% 

20% 

0% 

Adventure 

Beach 


Business 

Cultural, 

historical 

Volume Tourists by Activities, 2002-2005 

Health 

Medical 

Note: Excludes shopping, nightlife, and social activities 


Nightlife 

None 

Shopping 

Social 

Sporting 

Theme parks 

Trading 

Visited a Casino 

Visiting natural 

attractions 


Wildlife 

Zimbabwe 

Zambia 

Swaziland 

Mozambique 

Lesotho 

Botswana 

Angola


SADC tourists are much less seasonal than tourists from other markets 

However, the seasonality trends of SADC tourists worsened from 2003 to 2005 

Indexed to average 

arrivals per month 

0.8 

0.6 

0.4 

0.2 

-0.2 

-0.4 

-0.6 


0 

SADC, UK and All Arrivals Monthly Index, 2003-2005 


J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 


Volume 

2003 2004 2005 

SADC UK All South Africa Arrivals 

03 SI 1.0% 10.4% 1.0% 

04 SI 1.8% 12.5% 1.7% 

05 SI 1.6% 8.3% 1.6% 

All 

UK 



Botswana’s seasonality index is highest, while Zimbabwe is the lowest 

Seasonality Index 

10% 

8% 

6% 

4% 

2% 


Seasonality Index, 2003-2005 

Botswana 

Lesotho 

Mozambique 

Swaziland 

Zimbabwe 

0% 

2003 2004 2005 




SADC has a very high percentage of repeat visitors 

10+ time visitors make up the bulk of SADC tourists, this group also showed the highest 

increase in volume over the period under review 

Ten Thousands of arrivals 

700 

600 

500 

400 

300 

200 

100 

0 

9 

% Repeat Visitors 

89% 

128 

45 

58 

58 

36 


97% 96% 

32 

270 

255 

68 

24 

40 

44 

34 

37 

25 

34 

14 16 29 

Total Volume by Year, 2002-2005k 

94% 

308 

2002 2003 2004 2005 

Note: Repeat visitors exclude business travelers 


79 

120% 

100% 

80% 

60% 

40% 

20% 

0% 

Lived in SA 

before 

10+ Times 

6-9 Times 

4-5 Times 

2-3 Times 

First Time 

2500 

2000 

1500 

1000 

500 

0 

1,644 

41 

154 

95 


962 

216 

176 

All years 

02-05 

CAGR 

13.79% 

-100.0% 

34% 

20.4% 

-11.1% 

-13.8% 

-7.3%


With the exception of 6-9 time visitors, SADC repeaters spend more per trip 

Rand 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

6,534 


0 

Total Foreign Direct Spend (2003-2005) per trip (SADC) 

7,212 

7,801 

5,262 

8,229 

First Time 2-3 Times 4-5 Times 6-9 Times 10+ Times 

Note: Repeat visitors exclude business travelers; TFDS (excl. capex) without capex 




Repeat tourists mostly buy clothing, groceries and media 

First time visitors primarily purchase the same items, though they are slightly more likely to 

also purchase jewelry or curios/crafts 

100% 

80% 

60% 

40% 

20% 

0% 

Clothing 

Groceries 


Media 

Jewellery 

Volume Tourists Purchasing Items, 2002-2005 

Curios/crafts 

Appliances 



Nothing 

Motor 

vehicle spares 

Hardware 

Motor vehicle 

Furniture 

Medical 

equipment / 

Gifts / toys 

Sporting / 

camping 


Fuel 

10+ Times 

6-9 Times 

4-5 Times 

2-3 Times 

First Time


First time tourists stay the longest while 6th-9th time visitors stay the shortest 

Nights 

7.73 


9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

6.72 

Average Length of Stay (2002-2005) 

7.08 

First Time 2-3 Times 4-5 Times 6-9 Times 10+ Times All Repeat 

Visitors 



5.29 

6.35 

6.45 



Most SADC arrivals visit Gauteng and the province they are closest to 

Thousands 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 


0 

Angola 

Botswana 

Volume by Province: Market (SADC), 2002-2005 

Lesotho 

Mozambique 


Swaziland 

Zambia 

Zimbabwe 





Free State 

Northern Cape 

North West 

Limpopo 

Mpumalanga 

KwaZulu Natal 

Eastern Cape 

Western Cape 

Gauteng 



Most SADC arrivals (%) visit Gauteng and the province they are closest to 

100% 

80% 

60% 

40% 

20% 

0% 

Angola 


Botswana 

Volume by Province: Market (SADC), 2002-2005 

Lesotho 

Mozambique 


Swaziland 

Zambia 

Zimbabwe 





Free State 

Northern Cape 

North West 

Limpopo 

Mpumalanga 

KwaZulu Natal 

Eastern Cape 

Western Cape 

Gauteng 



Four provinces benefit the most from travel from neighboring countries 

Gauteng and KwaZulu Natal are also popular destinations for SADC tourists despite these 

provinces not necessarily neighboring the SADC country 

Top 2 frequently visited provinces 

by country* (2002-2005) 

� Angola 

� Zambia 

Note: Excludes Gauteng 

Source: SAT Departure Survey 


Northern Cape 

Western Cape 

� Botswana 

Gauteng 

North West 

Free State 

� Lesotho 

Eastern Cape 

Limpopo 

Mpumalanga 

KwaZulu 

Natal 

� Zimbabwe 

� Angola 

Total Volume of 

SADC Tourists (02- 

05) 

Less 1M% 

1MM-2MM% 

2MM-2.5MM% 

2.5MM-5MM 

>5MM 

Source Countries 

� Mozambique 

� Swaziland 

� Botswana 

� Lesotho 

� Mozambique 

� Swaziland 

� Zambia 

� Zimbabwe 



Most nights are in unpaid accommodation, with the exception of Mozambique 

100% 

80% 

60% 

40% 

20% 

0% 


Percentage of Nights Spent in Paid vs. Unpaid Accommodation, 2002-2005 (SADC) 

40% 

10% 

50% 

63% 

8% 

29% 

32% 

6% 

62% 


59% 62% 

10% 

31% 

17% 

21% 

54% 

11% 

34% 

Botswana Lesotho Mozambique Swaziland Zimbabwe All SADC 

None (Friends / 

Family) 

Mid (B&B, 

Backpack, Self- 

Cater, Camping) 

High (Hotel, Game 

Lodge, Guest 

House, Train/Ship) 



The top reason for visiting South Africa is to relax and escape 

Thousands 

1,200 

1,000 

800 

600 

400 

200 

979 

895 


0 

To be able to relax and 

Value for money 

Volume of Tourists by Reasons for Visiting SA, 2002-2005 (SADC) 

879 

874 

Good pricing for 

723 

620 

619 

559 

551 

526 

506 


Availability of a wide 

The scenic beauty 

Experiencing a different 

South Africa's 

Good variety of 

Diversity of attractions 

South Africa's different 

The climate 

462 

453 

Business opportunities 

South Africa after 

278 

Family/friends 

255 

249 

Exploring my heritage 

The wildlife 

231 

221 

Business/investment 

Medical facilities 

198 

Exploring potential 

75 

Nothing specific 

21 

Religious reasons 

14 

13 

10 

9 

Sport 

Study/education 

Employment/job 

Shopping 

7 

6 

5 

4 

4 

2 

2 

1 

1 

0 

0 

Had no choice 

Friendly people 

Stop over 

All the Reasons 

Good food/restaurants 


Good service 

Curiosity 

Recommendation/advice 

Experience from 

Voluntary work 

Collection of visa 

Similar time region/ no


SADC tourists were satisfied with the scenic beauty, hospitality and friendliness 

I had no outstanding experience 


Volume of Tourists by Satisfaction with SA, 2002-2005 (SADC) 


Hospitality and friendly people 

Good infrastructure 

Visiting family/friends 

Good serivce 


The wildlife/game parks/safari 

Shopping 

The diverse experience 


257 

426 

509 

754 

858 

997 

1,056 

1,235 

1,333 

1,684 

Top Ten Reasons 

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 

Thousands 



First time visitors are most satisfied with the scenic beauty and wildlife 

Repeat visitors are more likely to have no outstanding experience, however, all visitors still list 

the scenic beauty as one of the top reasons for satisfaction 

Thousands 

1200 

1000 

800 

600 

400 

200 

0 


Volume of Tourists by Satisfaction with SA and Times Visited, 2002-2005 (SADC) 

84 82 74 




117 96 95 

Note: Repeat visitors exclude business travelers; TFDS (excl. capex) without capex 





140 133 122 




336 


192 174 




945 


746 714 

First Time 2-3 Time 4-5 Time 6-9 Time 10+ Time 


Visiting family/friends


General Holiday visitors are most satisfied with scenic beauty and wildlife 

Whilst many people stated that they had no outstanding experience; shoppers were satisfied 

with the good value for money 

Thousands 

1200 

1000 

800 

600 

400 

200 

0 

Volume of Tourists by Satisfaction with SA and Purpose of Visit, 2002-2005 (SADC) 

124 91 85 99 75 67 




Business 



Business 

Business 


470 


286 249 



General 

Holiday 

625 

Visiting family/friends 

434 387 

109 102 100 

296 268 245 

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. visiting a client, signing deals, 

negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, exhibition, event or as part of an incentive 





VFR 



Good medical facilities 

Health / 

Medical 

Good serivce 




Personal 

Shopping 

405 


207 172 


Business 

Shopping 

Good serivce


VFR tourists contributed the most to volume while shoppers to revenue 

Total Volume (02-05) 

(% of Total Volume) 


(% of Total Volume) 

TFDS excl. Capex (03-05) 

(% of TFDS excl. Capex) 

Average Spend / Day 

(03-05) 


Business Business 


1.56MN 

(8%) 

0.88MN 

(6.3%) 

R6.34BN 

(6.4%) 

.90MN 

(5%) 

0.71MN 

(5.0%) 

R3.16BN 

(3.2%) 

General 

Holiday 

4.26MN 

(23%) 

2.96MN 

(20.9%) 

R20.5BN 

(20.6%) 

VFR 

4.49MN 

(24%) 

3.69MN 

(26.1%) 

R10.5BN 

(10.6%) 

Health / 

Medical 

.91MN 

(5%) 

.76MN 

(5.4%) 

R3.75BN 

(3.8%) 

Other 

.93MN 

(5%) 

.62MN 

(4.4%) 

R1.98BN 

(2%) 

Shopping 

– Buying 

goods for 

personal 

use 

2.81MN 

(15%) 

2.26MN 

(16.0%) 

R22.5BN 

(22.6%) 

Shopping 

– Buying 

goods for 

business 

use 

2.60MN 

(14%) 

2.25MN 

(15.9%) 

R30.6BN 

(30.8%) 

R1,288 R1,094 R937 R404 R1,002 R294 R3,565 R5,376 

Note: Spend without Capex; Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are 

related to one’s job e.g. visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a 

conference, meeting, exhibition, event or as part of an incentive 

Source: Combined SAT Departure Survey Dataset, 2002-2005; Spend analysed over the 2003-2005 period 



Overall SADC arrivals contributed almost R100billion to SA from 2003 - 2005 


(Percent of SADC Volume) 


(Percent of SADC Volume) 

TFDS excl. Capex (03-05) 

(Percent of SADC TFDS 

excl. Capex) 


Botswana Lesotho Mozambique Swaziland Zimbabwe All SADC 

3.2M 

(17.3%) 

2.4M 

(16.9%) 

R12.6BN 

(12.7%) 

5.6M 

(30.3%) 

4.4M 

(31.2%) 

R12.0BN 

(12.1%) 

1.9M 

(10.3%) 

1.4M 

(9.7%) 

R34.8BN 

(35%) 

3.3M 

(17.8%) 

2.6M 

(18.1%) 

R9.8BN 

(9.9%) 

2.5M 

(13.5%) 

1.9M 

(13.4%) 

R18.4BN 

(18.5%) 

All longhaul 

Markets 

18.5M 8.5M 

14.1M 6.4M 

R99.3BN R56.1BN 

Average Spend / Day (03-05) R1,664 542 R6,240 R889 R958 R1,269 R592 

Total Prepaid Spend 

(03-05) 

TFDS excl. Capex to Prepaid 

Spend (03-05) 

R0.95BN R0.81BN R1.58BN R1.05BN R1.99BN R10.4BN R80.7BN 

13.3 14.7 22.1 9.4 9.2 9.6 0.70 

2005 Average length of stay 4.34 6.14 4.21 5.08 9.97 6.25 16.48 

Avg number of provinces 

visited (2005) 

1.1 1.0 1.3 1.1 1.4 1.2 

Note: Spend without Capex 

Source: Combined SAT Departure Survey Dataset, 2002-2005; Spend analysed over 2003-2005 period 


Agenda 

� Context 










SADC General Holiday tourists are the most attractive group for SAT’s overall 

goals, although personal and business shoppers are also attractive 

Individual 

Rankings 

against 

Objectives 

(1 = Worst, 

5 = Best) 

High 

Ease of 

Influence 

Low 

5.0 

4.0 

3.0 

2.0 

1.0 

0.0 

0.0 2.0 4.0 

(6.3) 

6.0 8.0 10.0 

Low Contribution to SAT’s Goals 

High 

Business 

Business 


General 

Holiday 

Visiting 

friends/rela 

tives 


Shopping - 

personal use 

Shopping - 

business use 

Total Volume 2 1 4 5 2 3 3 1 

TFDS (ex. capex) / Day 3 3 2 1 2 4 5 1 

LOS 3 2 4 3 2 1 1 5 

Geographic Spread 4 3 5 3 1 2 1 2 

Seasonality Index ( 5 = 

Worst, 1 = Best) 

Attractiveness Matrix (SADC) 

Shopping - buying 

goods for personal use 


(3.8) 

(22.5) 

Other 

(2.0) 

Business Tourism 

(3.2) 

Business 


Size represents 

TFDS (10 BN 

Rands) 

Color represents 

change in TFDS 

from 03-05 (red: 

negative, green: 

positive) 

3 4 1 2 2 5 1 3 

Highest 

Ranking 

Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. visiting a client, signing deals, negotiating 

a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, exhibition, event or as part of an incentive 




(20.5) 

Shopping - buying goods 

for business use 

(30.6) 

Visiting friends/relatives 

(10.5) 

Other

Most SADC countries make significant contributions to both air and land 

arrivals in South Africa 

Predominantly 

Land Markets 

Land and Air 


Predominantly 


Source: SAT Arrivals Statistics, Monitor Analysis 


SADC Contributors to Air and Land Arrivals in South Africa, 2006 

Country 

Air Arrivals 

2006 

Land Arrivals 

2006 

% Contribution 

to SADC Air 

Arrivals 


to SADC Land 

Arrivals 

Lesotho 6,920 1,726,365 2.2% 31.2% 

Swaziland 7,443 845,193 2.3% 15.3% 

Botswana 28,719 736,070 9.1% 13.3% 

Malawi 18,718 105,952 5.9% 1.9% 

Mozambique 24,372 901,480 7.7% 16.3% 

Namibia 44,387 179,777 14.0% 3.2% 

Zambia 53,849 106,792 17.0% 1.9% 

Zimbabwe 67,728 918,710 21.4% 16.6% 

Angola 27,351 1,597 8.6% 0. % 

DRC 14,735 6,661 4.7% 0.1% 

Mauritius 12,758 1,384 4.0% 0% 

Tanzania 9,766 3,373 3.1% 0.1% 


SADC Land Market 

Summary 

Land travel is 

dominated by key 

markets 

Land travellers are 

important for many 

Provinces 

“Purpose” 

exceeds pure 

leisure as a driver 

of travel 

An emerging 

traveller 

segmentation has 

been developed 


� Neighbouring SADC markets in particular are the key land markets for 


� Only three provinces rely mostly on air arrivals, whilst the remainder rely on 

land arrivals from neighbouring SADC 

� Typically 50% of a province’s tourism income is driven by land arrivals 

� Nearly 50% of all land arrivals cite either VFR or business as their primary 

purpose of travel 

� Land travellers mostly seek an urban experience 

� Six “segments” have been identified within the SADC land market 

� Growth opportunities have been identified within these segments 

� However, certain key barriers need to be addressed for growth 


Agenda 

� Context 











SADC Land Market – Source Markets 

The neighbouring SADC countries are the key land markets for SA 

Percentage of travellers 

High 

Medium 

Low 

Very Low 

Distribution of travellers in the Land Border Posts 

GHANA 


NIGERIA 

KENYA 

DEMOCRATIC 

REPUBLIC 

OF THE CONGO 

TANZANIA 

ANGOLA 

NAMIBIA 

ZIMBABWE 

BOTSWANA MOZAMBIQUE 

SOUTH 

AFRICA 

EGYPT 

ZAMBIA 

LESOTHO 

ETHIOPIA 

MALAWI 

SWAZILAND 

SEYCHELLES 

MAURITIUS 

Key Markets 

� The land market is dominated by 

the SADC markets 

� Neighbouring SADC markets in 

particular are the key land markets 

for South Africa 

� All SADC markets where more than 

60% of arrivals are by land are 

considered to be land markets (ie 

medium to high) 


SADC Land Markets 

SADC land arrivals are important for many Provinces 

The importance of land travellers to many provinces should not be underestimated 

% Calculated Attributable 

Revenue to the Provinces 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 


Gauteng 

% Tourist Spend Per Province Broken Down By Mode (2000/2001) 

Western Cape 

Kwazulu Natal 

Mpumalanga 

Eastern Cape 

Northern 

Province 

North West 

Northern Cape 


Free State 

Land arrivals 


Note: Spend has been attributed to land and air arrivals, the long-haul arrivals may however be people who have arrived by air, crossed the border and are 

now re-entering South Africa. Alternatively they may be expatriates. 

Source: Monitor Analysis; Foreign Visitor Departure Survey, 2000 & 2001, Statistics South Africa, World Tourism Organization


Purpose- driven travel is the dominant driver of arrivals 

Whilst shopping is an important driver of travel, it tends to be more significant as 

a secondary purpose of travel 

Arrivals to South Africa 

(% of Total) 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

VFR 

Note: Non-African land travellers are travellers who have indicated a residence in a country outside of Africa 

Source: Land Border Post Survey 2001, Plus 94 Harris Analysis, Monitor Analysis 


Primary Purpose of Travel to South Africa of African Land Travellers, 2001 

Business 


Shopping 

Seeking Employment 

Medical Treatment 

Others 

Convention/Conference 

Informal Trading 


Educational 

Funeral/Wedding 

Special Int. Holiday


Land travellers seek an urban experience 

Revenues from shopping represents a major opportunity for provinces to capitalise on 

existing infrastructure which may currently be under utilised 

Activities in South Africa 

(% of Total) 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

Mall Shopping 

Restaurant 

Casino 

Source: Land Border Post Survey 2001, Plus 94 Harris Analysis, Monitor Analysis 


Overall Activities in South Africa of African and Non-African Land Border Travellers, 2001 

Nightclub 

Trade-Suppliers 

Township 

Craft Market 

Attended Sports Event 

Medical 

Trade-Customers 

Conference 

Live Show 

Nature Reserve 

Beach 

Sports Activities 

Aquarium 

Museum 

Game Viewing 

Cultural Village 

Botanical Garden 

Art Gallery 


Adventure Activity 

Rail Trip 

Study Tour 

Wine Farm 

Health Hydro 

Fishing


Portfolio choices in a changing SADC market 

In the face of what seems to be an inexorable decline in numbers of traders over time, South 

Africa is faced with the challenge of shuffling its portfolio to maximum benefit 

HIGH 

Number of 

arrivals per 

year 

LOW 

= total value contribution of the broad typology 


VFR market 

LOW 

Spend per trip 

Trader market 

Leisure market 

HIGH 


SADC Land Market: Leisure 

Three leisure groups identified: 960,000 people, 1.92mn trips and R15,1bn 

spend 

General 

Holiday 

VFR 

Shopping — 

Personal Use 

Religion 

Study 

Medical 

Age 18–24 25–34 35–44 45–54 

Income Low Med Low Med High Low Med High Med High 

Private Car 

Mini Bus / 

Taxi 

Commercial 

Bus 

Private Car 

Mini Bus / 

Taxi 


5&10 

Trips: 339,657 

Private Car 

Individuals: 383,000 

Spend: 10,226 

Value: R1,784mn 

Mini Bus / 

Taxi 

2&8 3&9 

Trips: 1,043,624 


Spend: 14,141 


Trips: 539,617 


Spend: 29,717 


Note: Black cells represent no travellers, There are no typologies 13 and 15 as they were group with typology 5 

55–64 65+ 



Demographics of identified traveller groups 

Traveller Group Well-to-do Leisurers Shopping Brigade 

Country of 

Residence* 

Gender 


Botswana (30%), Mozambique 

(21%), Swaziland (17%), 

Zimbabwe (13%), Lesotho 

(11%), Namibia (6%), Zambia 

(1%), Malawi (1%) 

70% Male 

30% Female 

Botswana (36%), Swaziland 

(22%), Lesotho (18%), 

Mozambique (12%), Zimbabwe 


(1%), Malawi (1%) 

60% Male 

40% Female 

Young Up and Coming 

travellers 

Lesotho (49%), Swaziland 

(29%), Botswana (16%), 

Zimbabwe (1%), Mozambique 


(1%), Malawi (1%) 

45% Male 

55% Female 

Age 35-44 25-44 25-34 

Income R10,000+ R1,000 – R10,000 R1,000 – R5,000 

Life Stage 80% Married with kids 60% Married with kids 

* Malawi and Zambia make up about 1% of all three traveller groups 

Source: LBPS, 2003 

40% Married with kids 

50% single 



Their behaviour when travelling to South Africa 


Purpose of Travel 

Mode of Transport to 


Travelling 

Group 

Provinces 

Visited 

Average 

Number of 

Provinces 


GH / VFR 

Shopping 

GH / VFR 

Shopping 


76% General holiday 

17% Shopping 

7% VFR 

42% Shopping 


27% VFR 


travellers 

67% VFR 

25% Shopping 


Private Car Private Car Taxi 

47% with partner 

30% with family 


30% alone 

32% Gauteng 

23% Western Cape 

46% Gauteng 

13% North West 


23% alone 


34% alone 

36% Gauteng 

22% Western Cape 

41% Gauteng 

24% North West 

71% alone 

77% Alone 

40% Free State 

33% Gauteng 

59% Gauteng 

GH / VFR 1 1 1 

Shopping 1 1 1 



Their behaviour when travelling to South Africa 


Lead Time 

Before 

Booking 

Length of 

Stay 

Accommodation 

Spend per 

Trip 

Items 

Bought 



travellers 

GH / VFR 5.6 Weeks 4.3 Weeks 2.6 Weeks 

Shopping 4.3 Weeks 3.1 Weeks 3.3 Weeks 

GH / VFR 4 Days 2 Days 2 Days 

Shopping 4 Days 2 Days 3 Days 

GH / VFR 

Shopping 

49% Hotel 

31% FR 

44% FR 

37% Hotel 

68% FR 

20% Hotel 

43% FR 

34% Hotel 

89% FR 

57% FR 

29% Hotel 

GH / VFR R11,800 R7,300 R1,600 

Shopping R22,000 R10,000 R5,700 

GH / VFR 

Shopping 

Source: LBPS, 2003; *FR: Friends and Relatives 

31% Clothing 

30% Groceries 

33% Groceries 

19% Clothing 

69% Groceries 

62% Clothing 

68% Clothing 

63% Groceries 

38% Clothing 

35% Groceries 

54% Clothing 

34% Groceries 


Well-to-do Leisurers: Leisure Travellers 

Segment Overview 

Well-to-do 

Leisurers 

Knowledge of SA 

No knowledge 2% 

Little knowledge 33% 

Well informed 47% 

Very well informed 18% 

Future Travel (Top 5) 

SA 32% 

Mauritius 8% 

Swaziland 6% 

Namibia 6% 

Portugal 5% 


Demographics Trip Behaviour Purchasing Behaviour 

General Characteristics 

� Age 

– 35-44 64% 

� Married, kids 20 24% 

Mode of Transport 

� By Plane 34% 

� By Road 66% 

Travel Partner 

(General Holiday/ VFR*) 

� Spouse/ Partner 47% 

� Family 30% 

Travel Partner (Shopping) 


� Alone 30% 

Accommodation 


� Hotel 49% 

� Friends/ Family 31% 

� Country/ Guesthouse 7% 

Accommodation (Shopping) 

� Friends / Relatives 44% 

� Hotel 37% 

� Country / Guesthouse 11% 

Positivity to SA Main Activities in SA 

Feelings Towards SA 

� Negative 20% 

� Positive 80% 

Visit SA again 

� Yes, definitely 96% 

� Yes, probably 4% 

Advise friends to visit 



� Possibly 1% 

Activities in SA 

when on holiday/ VFR* 

� Shopping 88% 

� Nightlife 48% 

� Social 34% 

� Visit a casino 30% 


when travelling for Shopping 




� Visit a casino 17% 

Items bought in SA 

(General holiday/ VFR*) 

� Clothing 31% 

� Groceries in bulk 30% 

� Media 9% 

� Jewellery 9% 

Average Spend per Trip: 

R11,766 

Items bought in SA (Shopping) 



� Media 11% 

� Motor vehicle spares 9% 


R22, 049 

Information Sources 

General Holiday/ VFR* (Top 4) 

� Friends/ Relatives in SA 43% 

� Friends/ Relatives at home 33% 

� Internet 29% 

� Travel books 25% 

Shopping (Top 4) 


� Travel magazines 33% 

� Travel books 17% 

� SA Tourism 17% 

Perception of SA 

Attraction to SA 

(Holiday/ VFR)* 

� Scenic Beauty 47% 

� VFR* 45% 

� Value for money 41% 

� Climate 33% 

� Bus / Investment interests 18% 

Attraction to SA (Shopping) 


� VFR* 36% 

� Business opportunities 20% 



Trip Reasons 

Reasons for visiting destinations 

(General) 


� Curiosity 15% 

� VFR* 15% 

� Holiday 8% 

� Familiar with destination 8% 

There are two main reasons that SADC Travellers visit SA: to have a general holiday/ visit friends and relatives or to shop. Information in green pertains to travellers who come to SA for a General Holiday/ VFR*; 

Information in red pertains to travellers who come to SA to shop; and the information in black refers to general characteristics of this segment. *VFR stands for Visit Friends/ Relatives 


Well-to-do Leisurers 

Jerry Modiba is a 40-year old manager at 

a major department store in Gaborone. 

He likes to take his young family of four 

away for a holiday at least once a year – 

preferably during the December holidays 

when the schools have closed, most often 

to Sun City or Johannesburg. 

Since he can afford it, he likes to treat 

himself to some time away relaxing in 

relative luxury – but also, a person of his 

standing needs to keep up with the trends. 

This year, he would like to take his family to Cape Town – he enjoyed the variety of activities, scenic beauty, 

and entertainment when he went to attend a conference two months ago. He liked it because it was 

refreshingly different from his own usual surroundings – the beaches, the vibrant city life and the luxurious 

hotels. 

While he’s travelled overseas and to other neighbouring countries like Namibia and Zimbabwe, South Africa 

remains a firm favourite for the family – it’s close, easy to drive to and offers a world of experiences for him 

and his family. 

Jerry usually plans for the holiday travel budget many months in advance, and will book the trip at least a 

month in advance. He does not use a travel agent unless he’s going to a new destination – he’s familiar 

enough with South Africa and he’s also got connections in Jo’burg. His wife has been talking about going to 

the next Joy of Jazz festival in Jo’burg, so perhaps they’ll drive there during the Easter break and do some 

shopping for the clothes he promised the kids and wife and groceries on the way back. Then again, they may 

just try out the beaches south of Mombasa, which he has seen on the internet –they’ve not been there 

before… 



Well-to-do Leisurers 

Customer Portrait ® 

Purchase 

and Usage 

Environment 

Demographics 

• 70% Male, 30% Female 

• 64% are between 35-44 years old 

• 57% have children aged below 18 

• 40% professional, 23% clerical/sales, 

15% self-employed 

• High Income earners R10,000+ (60%) 

Environmental Factors 

• 30% Botswana, 21% Mozambique, 17% 

Swaziland, 13% Zimbabwe, 11% Lesotho 

• Urban dwellers, majority in the capital 

cities of SADC countries 

• Lots of access to information via TV, 

newspapers, word of mouth and internet 

• Comfortable at conversing in English 

• Travel to have a break, rest, shop, be 

entertained and have fun 

Level of Knowledge/Awareness 

• Experienced international travellers - 

traveled long-haul on business and 

holiday 

• Have traveled to other Southern Africa 

countries 

• Well informed on South Africa, have 

friends and relatives in SA 

Social/ Organizational Context/ Influencers 

• Friends and relatives have a large 

influence on where they travel 

• Some travellers are influenced by 

children 


Desired 

Experience 

Travel Desires 

• Take holidays to relax and rest 

• Look for destinations which offer a variety of experiences – 

scenic beauty, unique experiences, fun and entertainment 

• Also travel to socialize, visit friends and relatives 

• When traveling with kids they look for destinations that offer 

activities for kids 

• Do spend money on travel, but look for value 

Travel to South Africa 

• Frequently travel to SA on holiday/VFR 

• Enjoy shopping in SA, like the beach and sea, nightlife and 

socializing with friends and relatives 

• Concerned about crime, but know which areas to avoid 

• Travel to SA by car as it is more cost effective and flexible 

• Desire good 3-4 star accommodation 

Purchase and Usage 

Holiday/VFR 

Purchase/ Usage Behaviour 

• Travel by car with partner (47%) and family (30%) 

• Accommodation booked from home, mainly directly with establishment 

• Lead time before booking 5.6 weeks 

• Spend per trip: R7,000 Length of Stay: 4 days 

• Visit 1 province, Gauteng (32%), Western Cape (23%) 

• Stay in hotels (49%), FR (31%) 

Shopping 

• Travel by car with partner (42%) or alone (30%) 


• Spend per trip: R9,118, Length of Stay: 4 days 

• Visit 1province, Gauteng (46%), North West (13%) 

• Stay in with FR (47%) , hotels (37%) 

(Note: Spend is reflected as the average spend, and length 

of stay have been reported as most common length of stay) 

Beliefs and 

Associations 

Channel 

• Use the channel when traveling to new destinations 

• Use the internet and travel books for information, 

but rely more on word of mouth from friends and 

relatives at home and in SA 

• Believe that travel agents are more expensive, but 

are convenient – especially used in countries where 

visas are required (just to get the visa) 

• Know SA well, so book things directly 


• South Africa is a first world country in Africa that 

offers all a wide range of experiences 

• South Africa has a high crime rate and is unsafe, 

people are generally xenophobic, but its still a great 

place with great people 

• In terms of shopping South Africa offers a great 

variety and better quality than at home. It is also 

cheaper to shop in South Africa 

• South Africa is easily accessible by car 

Competitors 

• Don’t believe that there is another country 

regionally that competes fully with SA 

• But if looking for a specific experience will travel to 

another country e.g. Botswana for wildlife or 

Mozambicans to Swaziland for shopping 

• travellers do go to other Southern African countries 

but on a less frequent basis 

• In countries where there are South African shops 

they still prefer SA because the feel they get better 

prices and a better range 


Shopping Brigade: Leisure Travellers 


Shopping 

Brigade 






Future Travel (Top 5) 

SA 51% 

Botswana 6% 

Mauritius 6% 

Australia 4% 

France 4% 



� Age 

– 25-34 46% 



� By Plane 27% 

� By Road 73% 

Travel Partner 



� Family 25% 

Travel Partner (Shopping) 


� Alone 34% 

Accommodation 


� Friends/ Family 68% 

� Hotel 20% 

� Self catering unit 4% 

Accommodation (Shopping) 

� Friends/ Relatives 43% 

� Hotel 34% 



Feelings Towards SA 

� Negative 10% 

� Positive 90% 









when on holiday/ VFR* 




� Beach 19% 


when travelling for Shopping 




� Trading 19% 


(General holiday/ VFR*) 



� Media 14% 



R7,259 

Items bought in SA (Shopping) 



� Appliances 13% 



R10, 024 


General Holiday/ VFR* (Top 4) 


� Friends/ Relatives at home 30% 



Shopping (Top 4) 

� Friends / Relatives in SA 46% 

� Friends / Relatives at home 28% 




Attraction to SA 

(Holiday/ VFR)* 

� VFR* 65% 




� Climate 27% 

Attraction to SA (Shopping) 



� VFR* 29% 



Trip Reasons 

Reasons for visiting destinations 

(General) 


� Curiosity 15% 

� VFR* 15% 

� Holiday 8% 

� Familiar with destination 8% 

There are two main reasons that SADC Travellers visit SA: to have a general holiday/ visit friends and relatives or to shop. Information in green pertains to travellers who come to SA for a General Holiday/ VFR*; 

Information in red pertains to travellers who come to SA to shop; and the information in black refers to general characteristics of this segment. *VFR stands for Visit Friends/ Relatives 



Shopping Brigade 

Davina Sibanyoni owns a small supermarket in Manzini, 

for which she must regularly buy stock from a wholesaler 

in Nelspruit. She will usually travel with her husband, and 

then these visits extend to seeing family and friends as 

well. Their savings on accommodation allow for them to 

‘stock’ up on a variety of goods available in stores. 

Sometimes when money and time allow, she likes to 

take her husband on a short holiday on a weekend for a 

break away from routine – to rejuvenate the spirit, as the 

magazines usually read. 

Besides South Africa, Davina has little travel experience 

except when she went to Mozambique two years ago – 

and that was with friends. She has access to South 

African broadcasting services through which she keeps 

informed of the general goings-on within South Africa. 

The major determinant of travel is the amount of money 

she has available - this plays a role in the distance she 

travels and how long she’ll spend there. 

She travels with her own car – it’s handy for carrying their goods, enables her to get around easily and so 

save on transport costs while in South Africa. Previous work-related visits and friends who’ve traveled 

inform her of the ‘hot-spots’ that she can go to for a good time. 

The Sibanyonis buy mementoes when they travel to remind them of the place they have been to – but really 

to show family and friends the places that they visited and what lovely times they had. 

Davina would like to go on a real holiday in the near future – the kind that you fly to, see the beaches and 

do not have to work. But that’ll take some saving up for, so in the mean time Joburg does just fine… 



Shopping Brigade 


Purchase 

and Usage 

Environment 

Demographics 


• 46% are between 25-34 years old; and 

35% between 35-44 years old 

• 43% have children aged below 18 

• 39% professional, 20% self-employed, 

12% executive/management 

• 89% earn R1,000-R10,000 per month 


• 36% Botswana, 22% Swaziland, 18% 

Lesotho, 12% Mozambique, 8% 

Zimbabwe 


cities of SADC countries 

• Access to travel information via TV, 

newspapers and word of mouth. Some 

use the internet 

• Travel to relax, visit friends and relatives, 

shop and to have fun 


• Experienced regional travellers - few 

have traveled long-haul, but not as 

extensive as Well-to-do Leisurers 




• Will use business travel to scout for 

possible holiday destinations 

� Money is the main determinant of 

destination choice, length of holiday. 

� Distance further narrows destination 

choice, followed by time available 



Desired 

Experience 

• The primary motivation for travel is to shop for personal or 

trading goods 

• For leisure, it is to see different things and have new 

experiences, have a break from work – although it is mixed with 

visiting with friends and relatives 

• Look for destinations that offer scenic beauty, unique 

experiences, shopping, fun and entertainment 

• Look for affordable, value for money destinations that are safe 

� Mementos of the holiday are important to “prove” to peers 

they’ve traveled, and also to remember because they may not 

get to visit that place again or soon 


• Frequently travel to SA to shop or to VFR 

• Enjoy shopping in SA, nightlife and socializing with FR 

• Travel to SA by car as it is more cost effective and flexible 

• Desire descent budget to mid range accommodation, although 

most stay with friends and family 

Purchase and Usage 

Holiday/VFR 

• Travel by car with partner (39%) and family (25%) 



• Visit 1 province, Gauteng (36%), Western Cape (22%) 

• Stay with FR (68%), hotels (20%), 

Shopping 

• Travel by car with partner (39%) or alone (34%) 



• Visit 1.2 provinces, Gauteng (41%), North West (24%) 



(Note: Spend is reflected as the average spend, and length 


Beliefs and 

Associations 

Channel 

• Get information primarily through word of mouth 

from friends and relatives at home and in SA 

• Traveling is expensive and so shop around for 

cheapest prices 

• Sometimes use travel agents, but usually only prebook 

accommodation directly with establishments 

• Know SA well, so book things once there 

• Need to pay a deposit for accommodation 

� Travel agents are seen mostly to be concerned with 

making sales/profit, rather than delivering good 

service (e.g. reliable info) 


• South Africa has great scenery, infrastructure and 

events 

� SA has more choice and variety than own countries 

� SA is favored because of proximity and dramatic 

difference to their own country, coupled with 

“endless choice of things on offer” 

� In terms of shopping South Africa offers a great 

variety at cheap prices 

• Traveling to SA by car gives you much more 

options once you are there 

Competitors 

� Very few could name a competitor destination 

� Regionally, some Southern African countries were 

mentioned 

• Generally people compared places within South 

Africa, e.g. Durban being cheaper than Cape Town 


Young Up and Coming Travellers: Leisure Travellers 


Young Up and 

Coming 

Travellers 






Future Travel 

SA 42% 

UK 5% 

USA 5% 

Mauritius 4% 

Botswana 2% 




� Age 

– 25-34 53% 

� Married, kids

Young Up and Coming Travellers 

Thobani Motseke is a single 27-year old 

sales assistant who lives in Maseru. She 

enjoys visiting her cousins that stay just 

across the border in Bloemfontein. Since it is 

not far, she normally goes there at least once 

a month by taxi. 

Thobani does not have to plan for transport 

when she gets there because her cousin 

picks her up from the taxi rank. She likes it 

because it is easy to get there and it is not 

expensive. Going out with her cousins and 

friends to nightclubs is what she looks forward 

to because she always meets new people. If 

money allows, she will shop for clothes or 

small groceries whilst visiting her relatives. 

Thobani believes these trips outside of her 

small town broaden her horizons about life – 

she believes education comes not only in the 

classroom form, but through experiences like 

traveling. 

Thobani has been to Joburg a few times but has never been to any of the other provinces except her visits 

to the Free State. She has seen advertisements in the newspapers and on TV about Durban and some 

people at her workplace who have been there make it sound like her heaven - the vibrant nightlife, the 

beaches. She would love to go there just to experience the beach and other scenery but it would probably 

not be in the near future as she will need to save up long in advance. She would also book directly herself if 

she goes – there’s not much sense wasting all that money on a travel agent when she could pick up the 

phone herself. 



Young Up and Coming Travellers 


Purchase 

and Usage 

Environment 

Demographics 


• 53% are between 25-34 years old 

• 32% married with kids under 18, 30% 

single no kids 

• 33% professional, 22% clerical/sales, 

12% self-employed 

• 72% earn R1,000-R4,999 per month 


• 49% Lesotho, 30% Swaziland, 17% 

Botswana 


cities 

• Access to information via TV, 

newspapers and word of mouth 

• Language is sometimes a barrier 

• Travel to relax, shop, be entertained and 

have fun 


• Travel mainly for VFR reasons 

• Limited travel experience - have traveled 

to (immediate) neighboring Southern 

Africa countries but not as extensively as 

the Shopping Brigade 




� Money is the main influencer for travel, 

need to save up 


Desired 

Experience 


• Travel to be in a different environment – break from usual 

schedule; want something different to what their country offers, 

want to have fun 

• Want to meet new people, learn about other cultures; also travel 

to socialize, visit friends and relatives 

• These needs are similar to the other 2 groups, but are acted 

upon differently – i.e. fulfilled by going where they have VFR 

links, as money is a major constraint 

• Would like to go to their dream destinations, but travel is 

expensive and need to save money 

• Travel alone and meet friends at destination to reduce costs 


• Frequently travel to SA for VFR – generally for a specific 

purpose 

• Enjoy shopping in SA (although not a primary activity), nightlife 

and socializing with FR 

• Mostly stay with friends and relatives 


Purchase and Usage (Note: Spend is reflected as the average spend, and length 

Holiday/VFR 


• Travel by taxi, alone (71%) 



• Visit 1 provinces, Free State (40%) ,Gauteng (33%), 

• Stay with FR (89%) 

Shopping 

• Travel by taxi, alone (77%) 



• Visit 1 provinces, Gauteng (59%), North West (16%) 


Beliefs and 

Associations 

Channel 

• Use taxi to get to South Africa, once there friends/ 

relatives, can help 

� Prefer direct booking if not staying with FR 

� Feel travel agents are too expensive and don’t 

always give correct information. Use them only 

when traveling to a far or unknown destination. 

� Package tours are too restricting 


� SA is unsafe 

� SA is very developed 

� In terms of shopping you can get anything you want 

in SA 

• You can get things cheaper in South Africa 

• South Africa is easily accessible 

• When they think of travel SA is the first destination 

that comes to mind 

Competitors 

• People believe that European countries and the 

USA are similar to South Africa 

• Generally they compare destinations within SA as 

competing with one another 


SADC Land Market: Business 

Seven land business travel groups: 1,31mn trips and R16,5bn spend 

Shopping — 

Business 

Use 


Age 18–24 25–34 35–44 45–54 55–64 65+ 

Private Car 

Truck 

Mini Bus / 

Taxi 

Business — Professional 

MICE 

1 

3 

6 

Segment 6: 

Trips: 69,849 

Spend: 2435 

Value: R170mn 

Private Traders: 

Trips: 542,356 

Spend: 11921 


Taxi Traders: 

Trips: 205,438 

Spend: 4714 

Value: R969mn 

Source: LPBS 2003 

Note: Black cells represent no travellers, There is no typology 2 as it was collapsed with typology 1 

5 

4 

Business Professionals: 

Trips: 345,136 

Spend: 8051 


Trading Truckers: 

Trips: 116,415 

Spend: 51197 


7 

Segment 7: 

Trips: 35,609 

Spend: 4414 

Value: R157mn 


SADC Land Market: Business 

Top four groups account for about 98% of total business travel value 

The total value of business travel is R16.1 billion 

Rands, 

Millions 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

6,399 


0 

Percent of Total Value 

5,677 

5,500 

5,233 

Business Travel Typology Groups by Value 

2,937 

2,440 

921 

850 

Value (based on total trip cost) 

Value (based on total spend in SA) 

189 149 167 138 

Segment 1 Segment 4 Segment 5 Segment 3 Segment 6 Segment 7 

Total Spend 40% 34% 18% 6% 1% 1% 

Spend in SA 39% 36% 17% 6% 1% 1% 

Source: LBPS 2003 


Summary of Private Traders 

Lead time 

before booking 

= 2.6 weeks 

What attracted me to SA? 

Business opportunities (73%) 

Value for money (61%) 

Business - Investment Interests 

(19%) 



Type of information sought? 

Accommodation (59%) 

Business Opportunities (52%) 

Transport (33%) 

Would I come again? 

Yes, definitely (96%) 

Would I advise others to visit SA? 


% who sought 

info: 20% 

Shopping – Business Use 

Travel to SA by Car 

Sources for information? 

Friends and Family (33%) 

Travel Magazines (22%) 

My Company (19%) 

Where did I stay? 

Hotel (39%) 

Country/ Guesthouse (21%) 

Friends / Family (20%) 

What did I do? 

Shopping (86%) 

Trading (42%) 

Nightlife (15%) 

How did I come to SA? 

With spouse/partner (36%) 

Spend per trip: R13,436 

Length of stay: 2.9 days 

No. of Provinces: 1.2 

Where did I go? 

Gauteng (54%) 

Mpumalanga (25%) 

North West (8%) 

What did I buy? 

Groceries in bulk (69%) 

Clothing (46%) 

Jewellery (9%) 


Segment 1 Private Traders: Purpose Travellers 


Segment 1: 

Private Traders 




� Age 

– 18-24 3% 

– 25-34 34% 

– 35-44 41% 

– 45-54 18% 

– 55-64 4% 

� Married, kids

Summary of Trading Truckers 

Lead time 


= 3.1 weeks 





(14%) 






Main Attractions (9%) 





% who sought 

info: 13% 


Travel to SA by Truck 



FR in SA (18%) 

FR at home (9%) 


Hotel (70%) 





Trading (75%) 

Business (14%) 


Alone (40%) 





Gauteng (57%) 


North West (6%) 



Hardware (46% 



Segment 4 Trading Truckers: Purpose Travellers 


Segment 4: 

Trading Truckers 




� Age 

– 35-44 60% 

– 45-54 40% 




� Truck/ Lorry 100% 

Travel Partner (Top 3) 

� Alone 40% 


� Friends 18% 

Provinces Visited (Top 3) 

� Gauteng 57% 

� Mpumalanga 28% 

� North west 6% 

Accommodation 

� Hotel 70% 


� Friends/ Relatives 4% 

� Truck 3% 










Main Activities while in SA 


� Hardware 46% 


� Appliances 18% 

Distribution of spend in SA 

� Retail-shopping mall 94% 

� Factory 64% 

� Whole sale 41% 

� Flea Market 9% 



� Trading 75% 

� Business 14% 


� Social 4% 

R53, 800 

Top 4 Sources 


Attraction to SA Top 6 



� Bus-Investment interests 14% 

� Visit friends/ relatives 6% 

� Scenic beauty 6% 

� Culture/ heritage & history 6% 


� Company 82% 

� Friends / Relatives in SA 18% 

� Friends / Relatives at home 9% 

� SA Tourism 9% 


Summary of Business Professionals 

Lead time 


= 3.3 weeks 





(25%) 






Transportation (25%) 





% who sought 

info: 27% 

Business - Professional 

Travel to SA by Car (78%) 




Internet (24%) 



Hotel (36%) 




Business (63%) 

Nightlife (40%) 


Alone (48%) 





Gauteng (50%) 

KZN (14%) 

Free State (9%) 




Media (23) 


Segment 5 Business Professionals: Purpose Travellers 


Segment 5: 

Business 

Professionals 




� Age 

– 25-34 25% 

– 35-44 57% 

– 45-54 16% 

– 55-64 2% 

� Married, kids

Summary of Taxi Traders 

Lead time 


= 3.5 weeks 




VFR (29%) 

Investment interests (29%) 






Transportation (35%) 





% who sought 

info: 23% 


Travel to SA by Taxi 



FR at home (41%) 

Travel agent (12%) 



Hotel (28%) 

B&B (16%) 



Trading (37%) 

VFR (28%) 


Alone (65%) 





Gauteng (70%) 

KZN (9%) 





Curios (9%) 


Segment 3 Taxi Traders: Purpose Travellers 


Segment 3: Taxi 

Traders 




� Age 

– 18-2 45% 

– 25-34 37% 

– 35-44 47% 

– 45-54 11% 

� Married, kids

Business Travel groups: Conclusion 

Growth for SA is 

likely to come from 

existing travellers 

Understanding the 

current traveller is 

key 

There are 4 key land 

business typologies 

that SAT may engage 

around 


The real opportunity for South Africa does not lie in increasing volume 

from the land business travellers, but from extracting additional value. 

Opportunities for increased value and length of stay can be realized if the 

travellers desires and behaviours are understood. 

High level profiles have been developed around 4 typologies that are 

currently key to SA. There exists the potential for South Africa to up-sell 

and cross-sell products to these typology groups. 



Existing insights suggests steps to grow yield from these segments 

Core Challenge 

African land traveller segments are predominantly purpose travellers (i.e. will come anyway) and low 

users of traditional channels (often make bookings direct or purchase at point-of-consumption). 

Growth will come from increasing yields through influencing purchase behaviour in South Africa 


Role of SAT Role of the Provinces Role of Other Players 

� Provide ongoing marketing 

intelligence on trends and 

segments to Provinces, Local 

Authorities and the trade 

� Facilitate appropriate choices 

around focus, marketing and 

product development by 

government (national, 

provincial and local) as well 

as by product owners and the 

broader cluster 

� Facilitate integration between 

trade and tourism promotion 

strategies 

� Primary marketing role with 

a focus on promotion of 

leisure and purpose-related 

activities at targeted points 

of entry and consumption 

� Facilitation of segmentspecific 

products and services 

by the trade 

� Facilitation of segment 

specific initiatives jointly with 

provincial, local and private 

sector trade institutions 

� Segment-specific product and 

service development 

– Loyalty programmes 

– Secure storage 

– Integrated offerings 

(accommodation, local 

transport, entertainment, 

shopping) 

� Direct marketing 

� Increased flexibility to support 

point-of-consumption 

promotional efforts 



Approach from historic and projected arrivals from SADC 

Projections are shown in the context of arrivals being the most critical measure of 

importance to South African Tourism – other measures are derivative of arrivals 

1,800,000 

1,600,000 

1,400,000 

1,200,000 

1,000,000 

800,000 

600,000 

400,000 

200,000 

0 


Defend 

Land arrivals from SADC countries, 1998 - 2008 

Lesotho Swaziland Botswana Zimbabwe Mozambique Namibia Zambia Malawi 

Note: 2004 – 2008 arrivals are straight-line projections based on 1998 – 2003 arrivals 

Apparent 

growth 

opportunity 

1998 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

Lower base but 

important in overall 

portfolio context 


Executive Summary of key SADC land markets 

Botswana 


� Botswana is an attractive market for South Africa 

– Botswana’s GDP is the third highest in the SADC region, behind South Africa and 

Angola 

– Motswana are more interested in activities other than shopping, unlike many other 

SADC markets 

– Motswana appear to contribute more to the ‘true’ tourism economy than other 

SADC countries, with most visitors spending nights in paid accommodation 

� South Africa has performed well in this market 

– South Africa had a 50% market share of all Botswana outbound travel in 2005 

– It is the third largest source of arrivals and fourth largest source of TFDS for South 

Africa 

– Volume, TFDS (excl. capex) and seasonality have all shown improvements over the 

past four years 

� TFDS (excl. capex) increased driven by a growth in volume and TFDS per day 

� TFDS (excl. capex.) per day significantly increased from 2004 to 2005 and 

much of this spend went on shopping 

� There are some reasons for concern 

– General holiday and business travel has declined significantly 

– The average length of stay decreased and geographic spread worsened over the 

four year period 

– It is a slowly growing market with volume and TFDS (excl. capex) driven by 10+ times 

visitors 

– Over 90% of total tourists are repeat visitors and the only category that experienced 

growth in volume and TFDS (excl. capex) were visitors who have been to SA 10+ times 

– The impact of AIDS and the consequent fundamental shifts in population still loom 

on the horizon 



Lesotho 

Source: SAT Departure Survey, 2002-2006 


� Lesotho is not as attractive a market for SAT as some of the other SADC markets 

– Although Lesotho has been the largest source of arrivals, arrivals are 

largely coming for VFR, from low income groups, spend amongst the 

lowest per day of any SADC market and mostly stay for short periods of 

time in unpaid accommodation in neighbouring provinces 

� Lesotho is something of a captive market for South Africa 

– 99.8% of all outbound travel is to South Africa 

– The majority of Lesothans are repeat visitors 

� That said, the fundamentals of the market are improving 

– There has been volume growth and people do appear to be coming for 

general holiday 

� Going to the beach is one of the most common activities 

– Increasing income per capita is driving growth in spend 

– Lesotho does not seem to be suffering as badly from the AIDS epidemic as 

many of the other SADC markets 



Mozambique 


� Mozambique is an important market for South Africa 

– Mozambique contributed positively to three of the five measurable objectives, 

namely Spend, Volume and Geographic spread 

– It has the highest spend per day and TFDS (excl. capex) of all markets – primarily 

driven by Business Shoppers (2003-2005) 

– Mozambicans are most likely to be visiting for Business Shopping and General 

Holiday 

� SA has performed well in this market 

– This market has a relatively low travel propensity however, over 80% of travel from 

Mozambique is to SA 

– Overall, volume increased for Mozambican arrivals, which was mainly driven by 

increases in the number of shoppers 

– TFDS (excl. capex) increased primarily driven by a substantial increase in TFDS 

(exc. Capex) per day and to a lesser extent by volume (2003-2005) 

� Most Mozambicans stay in paid accommodation, which contributes to the 

tourism economy 

– The average number of provinces visited by Mozambique tourists has increased 

� However there are some sources of concern 

– The average length of stay for Mozambican tourists has decreased by 34% from 

2002 to 2005 

– Seasonality trends for Mozambican tourists has worsened 

– Health threat to market: The decrease in volume of arrivals in the age group 45+ 

could possibly be due to the high prevalence of HIV (12.2% infection rate) and the 

declining life expectancy (currently 40 years) 

– Mozambique is largely a repeater market 

� However it is important to note that these repeat visitors spend considerably more 

per trip and per day than first time visitors 



Swaziland 


� Swaziland is an important market for South Africa 

– It is the second largest source of arrivals to South Africa 

– The travel intensity rate (annual departures / population) is relatively low at 20% 

however, over 96% of Swazi travel is to South Africa 

� South Africa has performed well in this market 

– Compound average annual growth rate of arrivals (5.2%) is above the overall average 

(3.9%) 

– TFDS (excl. capex) increased driven by a growth in volume and TFDS per day 

(2003-2005) 

� However, compared to many other SADC markets, the TFDS (excl. capex) and 

spend per day is low (2003-2005) 

� However there are sources of concern 

– First time arrivals have declined, however, SA may be near the saturation point in 

this market 

– The volume of tourists over 45 has declined, which may be a result of the high 

HIV/AIDS prevalence rate 

– The largest purposes of travel are for VFR and General Holiday and there has been 

a decrease in the volume of general holiday travellers 

– Over 95% of arrivals are repeaters 

� However low repeat visitors (2-5 times) are an attractive market in Swaziland 

� Visitors who have been 2-3 times spend the most per day and are more likely to 

stay in paid accommodation 

� Visitors who have been to South Africa 2-5 times are more likely to visit more than 

one province 

� The overall challenge in Swaziland is encouraging purpose driven visitors (business 

travel, business shopping) to do more holiday activities while in South Africa 

Source: SAT Departure Survey, 2002-2005; Spend analysed over period 2003-2005 



Zimbabwe 


� Zimbabwe is an important market for South Africa 

– Tourists from Zimbabwe contributed positively to all of the measurable 

objectives over the period 

� SA has performed well in this market, however much of the value which has 

been captured has been as a result of the economic decline of Zimbabwe 

– Over 55% of Zimbabwean travel is to SA 

– Both arrivals to South Africa and TFDS (excl. Capex) from Zimbabwe reached a 

low point in 2004 but recovered in 2005 

– TFDS (excl. capex) increased primarily driven by an increase in volume 

– Most of the travel is purpose-driven with shopping being the major objective 

regardless of the stated purpose of travel 

� This has been driven by the inability to buy many basic goods in Zimbabwe 

– Compared to other SADC markets, Zimbabwean arrivals are less likely to come 

for Business Shopping 

– Zimbabwe is a very high repeater market; with over 75% of total arrivals being 

tourists who have been 10+ times to SA 

� Zimbabwe repeat visitors typically spend more per trip and per day than first 

time visitors 3 


Agenda 

� Context 











SADC Air Market – Key Countries 

Countries that are important Air Markets in SADC 

Predominantly 

Land Markets 

Land and Air 


Predominantly 


Source: SAT Arrivals Statistics, Monitor Analysis 


SADC Contributors to Air and Land Arrivals in South Africa, 2006 

Country 


2006 

Land Arrivals 

2006 


to SADC Air 

Arrivals 


to SADC Land 

Arrivals 

Lesotho 6,920 1,726,365 2.2% 31.2% 

Swaziland 7,443 845,193 2.3% 15.3% 

Botswana 28,719 736,070 9.1% 13.3% 

Malawi 18,718 105,952 5.9% 1.9% 

Mozambique 24,372 901,480 7.7% 16.3% 

Namibia 44,387 179,777 14.0% 3.2% 

Zambia 53,849 106,792 17.0% 1.9% 

Zimbabwe 67,728 918,710 21.4% 16.6% 

Angola 27,351 1,597 8.6% 0. % 

DRC 14,735 6,661 4.7% 0.1% 

Mauritius 12,758 1,384 4.0% 0% 

Tanzania 9,766 3,373 3.1% 0.1% 



Six countries are primary Air Markets, where additional research was done 

Country 

Population 

(000s) 


GDP (PPP) 

GDP/capita 

(PPP) 

Air Arrivals in 

SA (2002) 

Air Arrivals in 

SA (2004) 

Departures 

(2002) 

Zimbabwe 12,747 $23.98 billion $1,900 51,741 58,084 1,499,464 

Namibia 2,031 $15.78 billion $7,800 35,274 39,250 267,579 

Zambia 11,262 $10.28 billion $900 30,422 29,240 980,100 

Angola 11,191 $27.66 billion $2,500 28,695 26,411 291,069 

Botswana 1,640 $16.64 billion $10,100 23,948 25,311 821,221 

Mozambique 19,407 $25.59 billion $1,300 20,968 20,356 762,658 

Malawi 12,159 $7.629 billion $600 17,826 18,064 343,163 

Mauritius 1,231 $16.36 billion $13,300 14,052 12,483 124,493 

DRC 60,086 $46.27 billion $800 3,685 8,796 41,960 

Tanzania 36,766 $26.62 billion $700 7,686 8,216 217,237 

Swaziland 1,174 $6.239 billion $5,300 6,626 7,443 824,255 

Lesotho 1,867 $6.123 billion $3,300 6,144 5,620 1,195,870 

For the six countries highlighted above: 

% contribution to all air arrivals = 76% 

% contribution to outbound departures = 63% 

Note: All of the statistics are from 2005 unless otherwise stated 

Source: CIA World Factbook, SAT Arrivals Statstool, WTO Outbound Data 

Countries 

identified as 

Primary 

SADC Air 




Primary and Secondary SADC Air Markets 

Primary SADC Air Markets 

Secondary SADC Air Markets 

Other SADC countries 

Source: Monitor Group Analysis 


Democratic 

Republic of 

Congo 

Angola 

Zambia 

Tanzania 

Mozambique 

Zimbabwe 

Namibia 

Botswana 

Swaziland 

Lesotho 

Malawi 

Seychelles 

Mauritius 


Agenda 

� Context 











SADC Air Market – Attractiveness to South Africa 

Relative Wealth 

Residents in the primary SADC air markets are relatively poor compared to South Africa and 

the rest of the world; these countries also have relatively high Gini Indices… 

United States 

China 

Japan 

India 

Germany 

United Kingdom 

France 

Italy 

Brazil 

Russia 


Angola 

Mozambique 

Zimbabwe 

Namibia 

Botswana 

Zambia 

535 

46 

26 

25 

17 

16 

10 


2,454 

1,869 

1,822 

1,651 

1,568 

1,539 

Ranking of Nations According to GDP, 2005 

3,914 

3,699 

8,182 

12,410 

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 

US$ (Billions) 

Note: The Gini Indices are the latest statistics reported by the World Bank. Some of the years may differ. No Gini Index available for Angola. 

Source: World Development Indicators, World Bank; CIA Factbook 2005, Monitor Analysis 

Gini Index 

40.8 

44.7 

24.9 

32.5 

28.3 

36 

32.7 

36 

59.3 

31 

57.8 

- 

39.6 

56.8 

70.7 

63 

52.6 



Very few people can afford to travel to South Africa by air 

Poverty is a major factor in the region; although tourism expenditure per capita increases 

when people living below the poverty line are excluded, expenditure is still relatively low 

Angola 

Botswana 

Mozambique 

Namibia 

Zambia 

Zimbabwe 

Note: No tourism expenditure data was available for Angola and Zimbabwe. 

Source: 2005 CIA World Factbook; World Development Indicators , World Bank; WTO, Monitor Group Analysis 


Population Below Poverty line (%), 

2005 

47 

50 

70 

70 

70 

South 

Africa 

0 20 40 60 80 100 

Percentage of Population 

86 

Angola NA 

Botswana 

Mozambique 

Namibia 

Zambia 

Zimbabwe 

Outbound Tourism Expenditure Per 

Capita For People Living Above 

Poverty Line, 2003 

NA 

25 

56 

53 


194 

0 50 100 150 200 250 

US$ 

South Africa = 

124


International departures 

SADC contributes only 1% of the world’s total outbound departures. Zimbabwe has the highest 

number of departures in SADC 

Outbound Departures, 2002 

Rest of the 

world 

99% 

Total = 630 million 



1% 

Percentage 

120% 

100% 

80% 

60% 

40% 

20% 

0% 

20% 

Breakdown of SADC Outbound Departures, 2002 

16% 

Total = 7,4 million 

13% 

11% 

11% 


9% 

4% 

4% 

Land + Air 

10% 

Zimbabwe Zambia Botswana Angola Other SADC 

Lesotho Swaziland Mozambique Namibia 

100% 

Travel intensity* 11.7% 66.4% 8.8% 79.8% 46.4% 4.1% 2.0% 13.7% NA 4.5% 

Population (millions) 12.8 1.8 11.1 1.0 1.0 18.7 14.6 2.0 NA 165 

*Travel intensity = total departures / total population 

Source: WTO Outbound data, UN statistics, Monitor Group Analysis


Where are they traveling to . . . 

Almost all of the departures from SADC go to short haul destinations; South Africa is the 

most popular destination for travellers from the SADC region 

100% 

Botswana 

80% 

Mozambique 

60% 

40% 

20% 

0% 

Other 

Tanzania 

Malawi 

Keny 

Zambia 

Namibia 

a 

Zimbabwe 



61% 

Top Long and Short Haul Destinations from SADC, 2002 

7,132,522 

1% 

2% 

2% 

2% 

2% 

4% 

7% 

7% 

Long Haul 

7,369,069 

3% 

Other 

Canada 

Brazil 

Malaysia 

Thailand 

Belgium 

236,547 

11% 

2% 

3% 

3% 

3% 

4% 

Australia 

5% 

13% 

Singapore 

5% 

China 

5% 

Short Haul 

97% 

Hong Kong 

Nigeria 

Top Short Haul Destinations SH vs. LH Split Top Long Haul Destinations 

Note: Long haul is defined as more than 5 hours flying time. 

Source: WTO Outbound Tourism Country Report, Monitor Group Analysis 

USA 

India 

UK 

12% 


8% 

9% 

11% 

19% 

Land + Air


Comparison of trends in arrivals 

source markets 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

-4% 

6%* 


9%* 

Growth in Arrivals to SA vs. Growth in Outbound Departures, 2002-2004 

3% 

8% 

8% 

-2% 

-6% 

% CAGR Overall, arrivals to South Africa seem to be steady relative to the decline in most of the 

-5% 

5% 

-3% 

-3% 

-2% 

-5% 


-5% 

6% 

-25% -24% 

Inbound CAGR to SA 

SH Outbound CAGR 

Total Outbound CAGR 

Angola Botswana Mozambique Namibia Zambia Zimbabwe 


2004 

26,411 25,311 20,356 39,250 29,240 58,084 

*Calculated using figures from bottom up analysis of departures from Angola. Departures to Namibia used as a proxy for SH market for Angola. 

Source: SAT Arrivals Statstool; WTO Outbound Tourism Country Reports, Monitor Group Analysis


Air access to South Africa 

In evaluating air access to South Africa we considered the following: 


Air Access 

Existence of Air 

Links 

Capacity 

Price of Air Ticket 



Air access to South Africa – Air links 

The region has good air links to South Africa 

Country Direct Services SA Carrier Foreign Carrier 

Angola � � � 

Botswana � � � 

Mozambique � � � 

Namibia � � � 

Zambia x � � 

Zimbabwe � � � 

Source: Rennies Travel Agent 




Air access to South Africa – Air links 

Source: Monitor Group Analysis 


Luanda 

Democratic Republic 

of Congo 

Angola 

Zambia 

Lusaka 

Harare 

Zimbabwe 

Namibia Botswana 

Windhoek Gaborone 

Cape Town 

Johannesburg 

Durban 

Tanzania 

Mozambique 

Maputo 

Swaziland 

Lesotho 

Malawi 

Mauritius 



Air access to South Africa – Air links: Flight time and schedules 

Air Botswana 

(Direct) 

SAA Airways 

(Direct) 

Insufficient 

frequency could be 

an issue 

Air Namibia 

(Non-Direct) 


(Direct) 

TAAG Angola Air 

(Direct) 

Air Zimbabwe 

(Non-Direct) 

British Airways 

Comair 

(Direct) 

Nation Wide 

(Direct) 


(Direct) 

* Return flight day may vary form the departure day. 

Source: Rennies Travel Agent, OAG, 2006 


JHB-Gaborone (Botswana) 

Flight Time To/Return* Flight 

Frequency 

1/1 

Daily 

1/1 

Daily 

Flight Time To/Return* 

Flight Frequency 

4/5 

T.T.F. 

3/3 

T.T.S. 

3/3 

M.W.F. 

JHB- Luanda (Angola) 

Zambia 

JHB-Livingston JHB-Lusaka 

Flight Time 

To/Return* Flight 

Frequency 

2/1 

M.W.T.F.S. 

2/1 

Daily 

2/1 

M.T.S. 

Flight Time 

To/Return* Flight 

Frequency 

3/3 

Daily 

2/2 

Daily 

Stop City 

Non-stop 

Non-stop 

Stop City 

Stopover Period 

via Windhoek 

2 hr 

Non-stop 

Non-stop 

Stop City 


via Harare 

45 mins 

Non-Stop 

Non-Stop 

Non-Stop 


(Direct) 

British Airways Comair 

(Direct) 


(Direct) 

Kenya Airways 

(Non-Direct) 

LAM Airlines 

(Direct) 


(Direct) 

Air Botswana 

(Non-Direct) 

Air Zimbabwe 

(Direct) 

British Airways Comair 

(Direct) 


(Direct) 



2/2 

Daily 

2/2 

Daily 

2/2 

Daily 

JHB- Windhoek (Namibia) 

JHB- Maputo (Mozambique) 



8/9 

Daily 

1/1 

Daily 

1/1 

Daily 

Flight Time 

To/Return* 


3/3 

M.W.S. 

2/2 

Daily 

2/2 

Daily 

2/2 

Daily 

JHB- Harare (Zimbabwe) 

Stop City 

Non-stop 

Non-stop 

Non-stop 

Stop City 


via Nairobi 

2 hr 

Non-stop 

Non-stop 

Stop City 


via Gaborone 

2 hr 

Non-stop 

Non-stop 

Non-stop 



Air access to South Africa – Flight capacity 

There is access on most routes however these links need to be strengthened to facilitate 

regional tourism especially given the high economic development 

Primary SADC Air 


Namibia 

Capacity: 

397,691 

Note: Load factor calculated using data for regular scheduled flights between any airport in the highlighted countries and any South African airport 

Source: ACSA, Monitor Group Analysis 


Annual Flight Capacity and Load Factor for Key SADC Markets, 2005 

Angola 

Capacity: 

103,552 

Botswana 

Capacity: 232,620 

Zimbabwe 

Zambia 

Capacity: 

255,727 

Capacity: 324,494 

Mozambique 

Capacity: 

202,860 



Air access to South Africa – Prices 

Air ticket prices to South Africa are relatively high for all the countries, especially on a 

US$/km basis 

Comparable Flights: Prices and Distances 

Route 

Angola (Luanda) -JHB 

SA Airways 

Botswana (Gaborone) - 

JHB 


Mozambique (Maputo) - 

JHB 

LAM Aereas 

Namibia (Windhoek) - 

JHB 


Zambia (Lusaka) -JHB 


Zimbabwe (Harare)-JHB 



Lowest Published 

Fare Available (US$) 

Flight Time 

(incl. stopover) 

Departure/ Return 

Distance 

(km) 

US$/km 

$417 3/3 2,488 0.16 

$248 1/1 680 0.36 

$295 1/1 451 0.65 

$431 2/2 1,185 0.36 

$373 2/2 1,200 0.31 

$345 2/2 960 0.35 

Note: Lowest listed roundtrip fares from consolidator, including of tax. Assuming travel in April 2006 

Source: TQ3 Direct Travel Solutions, www.geobytes.com (Destination Tool) 



Visa Requirements vary across SADC 


Country Visa required? 

Angola 

Yes (3 – 5 working days to 

process visa application)* 

Botswana No 

Mozambique No 

Namibia 

No 

Zambia No 

Zimbabwe 

* Refer to Angola deck for more detail information 

Source: Department of Foreign Affairs 

Yes (7 working days to process 

the visa application) 



Summary 

– 

SADC Air is relatively attractive to South Africa mainly due to its geographic proximity 


Value Travelling Population Access to SA 

� Very few people in SADC can 

afford to travel to South 

Africa by air 

– All the selected countries 

have lower GDP per 

capita than South Africa 

– SADC has relatively low 

tourism expenditure per 

capita 

– Most of the selected 

SADC countries have 

more than 50% of their 

population living below the 

poverty line 

� SADC’s contribution to 

international tourism 

departures is negligible (1%) 

– There are about 7 million 

outbound departures 

– Most of the countries 

have low travel intensity 

� + But the majority (97%) of 

outbound travel is regional 

(i.e. short haul) 

– South Africa is the top 

destination for travellers 

from the region 

� Short haul outbound 

departures are declining in 

all markets except Botswana 

and Angola 

* Except for the small population countries i.e. Lesotho, Swaziland and Botswana 

– 

– 

+ � The region has relatively 

good air links to South Africa 

– Direct airlink exists to all 

selected countries 

– However, there may be 

insufficient frequency on 

the Luanda – 

Johannesburg route 

+ � There is sufficient capacity 

on most routes 

– However capacity 

between Angola and 

South Africa is 

constrained 

– 

� Air ticket prices to South 

Africa are relatively high for 

all the countries 

– 

� There are visa requirements 

for Angola and Zimbabwe 


Agenda 

� Context 











Arrivals (000’s) 

SADC Air Market – Importance to South Africa 

Arrivals to South Africa from SADC – Land and Air 

The majority of arrivals to South Africa from SADC are land arrivals; however arrivals by air 

are increasing faster than land arrivals 

6,000 

4,000 

2,000 

0 

1.2 

1.1 

1.0 

Land Air 

4,237 


SADC Arrivals to South Africa by Mode, 2000-2004 

4,121 

4,425 

4,425 

4,608 

2000 2001 2002 2003 2004 


5% 

95% 

Land 

Total 

5% 

95% 

Indexed Comparison of SADC Arrivals to South Africa by 

Mode, 2000-2004 

0.9 

2000 2001 2002 2003 2004 

Source: SAT Arrivals Statstool, Monitor Group Analysis 

6% 

94% 

6% 

94% 

6% 

94% 

CAGR 00 – 04 


CAGR 02 –04 

Total 2.1% 2.0% 

Land 2.0% 2.0% 

Air 3.6% 2.4% 



Arrivals to South Africa per country – Land and Air 

Land arrivals are the key driver of total arrivals in all the countries except Angola 

1.2 

1.0 

0.8 

0.6 

2000 2001 2002 2003 2004 

1.2 

1.1 

1.0 



Angola CAGR 02-04 

2.2% 

1.6 

Botswana CAGR 02-04 1.2 

Mozambique 

-3.5% 

-4.1% 1.4 

1.5% 

1.6% 

1.0 

0.9 

2000 2001 2002 2003 2004 

1.2 

1.0 

2000 2001 2002 2003 2004 

1.6 

1.4 

1.2 

1.0 

2000 2001 2002 2003 2004 

0.8 

-17% 

2000 2001 2002 2003 2004 

Namibia Zambia Zimbabwe 

1.8 

1.4 

2.8% 

Total Arrivals Land Arrivals Air Arrivals 

1.3 

1.2 

1.1 

1.0 

0.9 

0.8 

2000 2001 2002 2003 2004 

CAGR 02-04 

CAGR 02-04 CAGR 02-04 CAGR 02-04 

2.2%(total) 

1.5%(land) 

5.5% 

0.3% 

-0.2% 

-2.0% 


Indexed Comparison of Arrivals to South Africa from Selected SADC Countries by Mode, 2000-2004 

-1.5% 

-16.4% 

-4.5% 

-5.6% 

6.0% 


Arrivals (Millions) 

8 

6 

4 

2 

0 


Arrivals to South Africa 

SADC made up about 75% of African air arrivals in 2004 and 77% of these air arrivals were 

from the six primary SADC Air Markets 

Total arrivals in SA, 2004 

6.68 

4.65 

70% 

Source: SAT Statstool; Monitor Group Analysis 


2.03 

30% 

Total Land Air 

100% 

80% 

60% 

40% 

20% 

0% 

% Breakdown of Air 

Arrivals by Region, 

2004 

1.5% 

12.8% 

13.3% 

17.2% 

55.1% 

Total 

Middle 

East 

Asia & 

Australasia 

Americas 

Africa 

Europe 

Arrivals, 

(Thousands) 

400 

300 

200 

100 

Breakdown of Air Arrivals from Africa into 

South Africa, 2004 

58 

Air only 

39 

22% 

29 11% 

15% 

26 10% 


25 

61 

20 8% 

10% 

23% 

259 

83 

343 

0 

Zimbabw e Zambia Botsw ana Other SADC Non-SADC 

Namibia Angola Mozambique Total SADC Africa

10% 


Arrivals in South Africa – Growth rates 

Both air and land arrivals from SADC have increased. However, there was a decline in air 

arrivals from three of the selected countries between 2002 and 2004 

5% 

% CAGR 

0% 

-5% 

Growth Rates of Arrivals to South Africa, 2002-2004 

1.9% 

3.7% 

2.6% 



Regional split 

3.3% 

5.1% 

7.7% 

2.0% 2.4% 

Total Air Arrivals Europe Africa Asia & Americas SADC SADC Air 

arrivals 

Australasia Land 

% CAGR 

10% 

5% 

0% 

-5% 

-10% 

-15% 

-20% 

Growth Rates of Air Arrivals to South 

Africa from Selected SADC Countries, 

2002-2004 

-4.1% 

Air arrivals 

Land arrivals 

2.2% 

2.8% 

1.5% 

-1.5% 

-17.0% 

5.5% 

1.5% 

-2.0% 

0.3% 

6.0% 

-5.6% 

Angola Mozambique Zambia 

Botswana Namibia Zimbabwe 



Arrivals in South Africa – by nationality 

Approximately 80% of the arrivals from the region are nationals (i.e. not expatriates living in 

those countries) 

Arrivals (Thousands) 

300 

250 

200 

150 

100 

50 

0 

Expatriate 

National 

51 


8 

13% 

87% 

6 

33 

15% 

85% 

Breakdown of Air Arrivals by Nationality, 2004 

8 

22 

6 

20 

Zimbabwe Namibia Zambia Angola Botswana Mozambique Other SADC Total SADC 

Notes: Nationality calculated using percentages from breakdown of country of nationality from departure survey. 

Source: SAT Departure Survey 2004, SAT Arrivals Statstool, Monitor Group Analysis 

26% 

74% 

22% 

78% 

7 

19 

27% 

73% 

6 

14 

29% 

71% 


13 

48 

22% 

78% 

79% 


56 

204 

21%


Arrivals to South Africa – by purpose 

Business is the most common primary purpose of travel amongst arrivals from the selected 

countries 

100% 

80% 

60% 

40% 

20% 

0% 


18% 

14% 

37% 

31% 

Breakdown of Air Arrivals by Primary Purpose of Visit, 2004 

13% 

11% 

11% 

65% 

15% 

16% 

17% 

52% 

24% 

8% 

26% 

42% 

12% 

15% 

20% 

21% 

11% 

16% 

53% 53% 

Angola Botswana Namibia Mozambique Zimbabwe Zambia 

Arrivals 2004 26,411 25,311 20,356 39,250 58,084 29,240 

Note: Purpose of visit calculated using breakdown of primary purpose of visit as reported by respondents to the departure survey 

Source: SAT Departure Survey 2004; SAT Arrivals Statstool, Monitor Group Analysis 


Other 

VFR 

Holiday 

Business 


Percentage 


Comparison of leisure arrivals to SA 

The proportion of leisure travellers is very small compared to South Africa’s other key source 

markets 

100% 

80% 

60% 

40% 

20% 

0% 

Leisure Arrivals as a % of Total Arrivals in SA – 

Primary Purpose of Visit 

61% 

70% 

77% 

Source: SAT Departure Survey 2002-2005 Q2, Monitor Group Analysis 


40% 

17% 

26% 

23% 

19% 

25% 

Percentage 

100% 

Leisure Arrivals as a % of Total Arrivals in SA – 

Primary and Secondary Purpose of Visit 

USA UK Germany Botswana Namibia Zimbabwe 

USA UK Germany Botswana Namibia Zimbabwe 



80% 

60% 

40% 

20% 

0% 

81% 

89% 89% 

56% 

25% 

33% 32% 30% 

38% 


Rands (Billions) 

50 

40 

30 

20 

10 

0 

CAGR 

02-04 


Spend in South Africa 

Although air arrivals from SADC contribute a small amount to total spend, there has been a 

decline in spend by several of the primary SADC air markets 

47.8 


Foreign Direct Spend in SA, 2004 

SAT Annual Report* 

13.2 

2.6 

Total Europe Asia & 

Australas ia 

2.5 

Rest of Africa and 

Middle East 

SADC Air 

27.2 

2.3 

Americas Africa & 

Middle Eas t 

-1% -12% -14% -22% 13% 

* Except for SADC Air value 

Note: Foreign direct spend for SADC air market calculated by multiplying average foreign direct spend for a given year by number of arrivals for that year for each 

country. 

Source: SAT Annual Report 2002 and 2004; SAT Departure Survey 2002-2004, SAT Arrivals Data Stats tool, Monitor Group Analysis 

Rands (Millions) 

2,500 

2,000 

1,500 

1,000 

500 

0 

CAGR 

02-04 

Breakdown of Spend by Air Arrivals from SADC 

Countries, 2004 

SAT Departure Survey Analysis 

507 

Namibia 


340 

Zimbabwe 

294 

Angola 


285 

Zambia 

197 

Mozambique 

172 

Botswana 

508 


2,302 

47% -32% -18% -34% 3% -2% -8% -12% 

Total


Comparison of current spend trends 

Leisure travellers by air from Angola and Zimbabwe make the most significant contribution 

both in terms of length of stay (LOS) and foreign direct spend 

Average 

Length of 

Stay 

(LOS- 

Nights) 

14 

12 

10 


8 

Contribution to Tourism in South Africa by Leisure travellers, 2002-2005 Q2 

Namibia 

R247 million 

Zimbabwe 

R566 million 

Angola 

R549 million 

Botswana 

Zambia 

R390 million 

Air Leisure only 

Warning: Despite the high 

average LOS, the mode 

was 3 nights 

6 

R159 million 

Mozambique 

R326 million 

0 

= R250 million Total 

Foreign Direct Spend 

500 1000 

Average Spend Per Day (Rands) 

1500 2000 

Note: Foreign direct spend calculated by multiplying average spend per day by number of arrivals assumed to be leisure travellers based on percentage of leisure 

travellers in departure survey sample. Sample size: Angola = 244, Botswana = 103, Mozambique = 150, Namibia = 190, Zambia = 144, Zimbabwe = 346. 

Source: SAT Departure Survey 2002-2005 Q2, SAT Arrivals Statstool, Monitor Group Analysis 



Summary 

– 

The SADC air markets are important source markets for South Africa 

but it is important to note that many arrivals come for business purposes 


Arrivals in SA Purpose of Visit Spend in SA 

� 94% of the arrivals to SA 

from SADC are land 

arrivals 

+ � SADC air arrivals make 

up about 75% of African 

air arrivals to South 

Africa 

– 77% of SADC air 

arrivals are from the 

six selected countries 

+ � Air arrivals have 

increased (2.4%) between 

2002 – 2004 

– However there was a 

decline in arrivals from 

three of the selected 

countries 

* Based on primary or secondary purpose of travel 

– 

� Most arrivals come to 

South Africa for business 

purposes* 

– The percentage of 

leisure travellers is 

very low compared to 

South Africa’s top 

three source markets 

– 

� SADC air’s contribution 

to spend in South Africa 

is small (R2.3 Billion) 

– Most of the spend is 

from SADC land 

arrivals 

– 

� Spend in South Africa is 

declining (-12%) 

– Of the selected 

countries, only spend 

by Namibia and 

Mozambique 

increased 


Agenda 

� Context 











SADC Air Market – SA’s Relative Position 

Outbound departures per country 

Travel within the region is predominantly short haul 

Outbound 

Departures 

(000s) 

SH CAGR 02-04 

LH CAGR 02-04 

1,000 

Total CAGR 02-04 

800 

600 

400 

200 

398 


0 

Long Haul 

Short Haul 

95% 

5% 

Breakdown of Outbound Departures LH vs. SH, 2004 

953 

99% 

1% 

1% 

790 

98% 

2% 

2% Zambia and 

Zimbabwe data 

not very 

verifiable 

Angola* Botswana Mozambique Namibia Zambia Zimbabwe 

253 

98% 

* Based on bottom up analysis. ** Calculated using departures to Namibia which is the largest SH market as a proxy. Long haul is defined as more than 5 hours 

flying time 

Source: WTO Outbound Country Tourism Reports, Namibian Tourism Report, Monitor Group Analysis 

2% 

98% 

434 

98% 

873 

98% 

6%** 7.7% -5.6% -3% -5.3% -25.1% 

15%* 11.4% 11.7% 12.1% 6.8% -5.4% 

9%* 7.8% -5.4% -2.7% -5.1% -24.4 

2% 

5% 

2 

5% 


Breakdown of SADC Region 

Departures, 2002 

8 

7.3 

3% 

3% 

3% 

Outbound Departures (millions) 

95% 

97% 

97% 

95% 0 95% 


6 

4 

97% 

SADC Region


Outbound departures to South Africa 

South Africa has a significant share of a large short haul market 

100% 

Other 

Tanzania 

Malawi 

Keny 

Zambia 

a 

Namibia 

Botswana 

80% 

Mozambique 

60% 

40% 

20% 

0% 

Zimbabwe 



61% 

Top Long and Short Haul Destinations from SADC, 2002 

7,132,522 

1% 

2% 

2% 

2% 

2% 

4% 

7% 

7% 

Long Haul 

7,369,069 

3% 

Other 

Canada 

Brazil 

Malaysia 

Thailand 

Belgium 

236,547 

11% 

2% 

3% 

3% 

3% 

4% 

Australia 

5% 

13% 

Singapore 

5% 

China 

5% 

Short Haul 

97% 

Hong Kong 

Nigeria 

Top Short Haul Destinations SH vs. LH Split Top Long Haul Destinations 

Note: Long haul is defined as more than 5 hours flying time. 


USA 

India 

UK 

12% 


8% 

9% 

11% 

19% 

Land + Air


Outbound departures to South Africa 

For the primary SADC air markets, South Africa has a significant share of SH outbound 

departures 

Country 


Total Short Haul 

Outbound 

Departures (2004) 

Share of Short 

Haul Outbound 

Departures 

Growth in SH Outbound 

Departures to SA: CAGR 

(2002 – 2004) 

Angola 53,386 53% -4% 

Botswana 941,827 85% 19% 

Mozambique 777,082 46% -18% 

Namibia 249,175 91% 2% 

Zambia 424,845 29% 27% 

Zimbabwe 941,827 66% 8% 




Comparison of trends in arrivals 

source markets 

60% 

40% 

20% 

0% 

-20% 

-40% 

-60% 

-4% 

6%* 


9%* 

Growth in Arrivals to SA vs. Growth in Outbound Departures, 2002-2004 

3% 

8% 

8% 

-2% 

-6% 

% CAGR Overall, arrivals to South Africa seem to be steady relative to the decline in most of the 

-5% 

5% 

-3% 

-3% 

-2% 

-5% 


-5% 

6% 

-25% -24% 

Inbound CAGR to SA 

SH Outbound CAGR 

Total Outbound CAGR 



2004 

26,411 25,311 20,356 39,250 29,240 58,084 

*Calculated using figures from bottom up analysis of departures from Angola. Departures to Namibia used as a proxy for SH market for Angola. 

Source: SAT Arrivals Statstool; WTO Outbound Tourism Country Reports, Monitor Group Analysis


Comparison of spend trends 

Although there appears to be a significant increase in spend by Namibians, “corrected 

spend*” show a general decrease in spend across all countries except Mozambique 

% CAGR 

60% 

40% 

20% 

0% 

-20% 

CAGR Spend by 

All Air Arrivals 

in SA = -13% 

-40% 

Spend 2004 

(millions) 

Air Arrivals 2004 

-4.1% 

-18.4% 


Inbound Arrivals CAGR to SA 

CAGR Spend in SA 

CAGR Spend in SA Excluding 

Outliers 

Growth in Spend in SA vs. Growth in Air Arrivals to SA, 2002- 2004 

2.8% 

2.6% 2.6% 

5.5% 

47.4% 

6.0% 

-2.3% -2.3% -1.5% 

-2.0% 

-5.0% -4.7% 

-4.8% 

-34.1% 

-16.5% 

-32.5% 


294 172 197 507* 285 340 

26,411 25,311 20,356 39,250 29,240 58,084 

*Outliers have not been excluded in the calculation of this amount. Sample size for spend analysis: Angola = 427; Botswana = 373; Mozambique = 387; Namibia = 

501; Zambia = 423; Zimbabwe = 849 All air arrivals = 37000. Spend figures are weighted up to number of arrivals for this analysis 

Source: SAT Arrivals Data; SAT Departure Survey 2002-2004, Monitor Group Analysis 


– 


Summary 


� SH outbound 

departures 

are declining 

(-11%) 

+ � SA’s share of + � SA’s share of 

SH outbound SH outbound 

departures departures 

– 53% 

– 85% 

– Growing – Growing 

(8%) 

(19%) 

– 

� Decrease in 

arrivals to 

SA (-4%) 

– 


spend 

(-5%) 

South Africa’s relative position in the air market is strong but under threat 

in the six primary air markets 


+ � SH outbound 

departures 

are growing 

(8%) 

+ � Increase in 


(3%) 

– 

Note: Spend CAGR excludes outliers 


spend(-2%) 

– 


departures 

are declining 

(-6%) 

+ � SA’s share of 

SH outbound 

departures 

– 46% 

– Declining 

(-18%) 

– 



(-2%) 

� + Increase in 

spend (3%) 

– 


departures 

are declining 

(-3%) 


SH outbound 

departures 

– 91% 

– Steady 

(2%) 

+ � Increase in � Decrease in + � Increase in 

arrivals to 


arrivals to 

SA (5%) 

(-2%) 

SA (6%) 


spend 

(-5%) 

– 


departures 

are declining 

(-5%) 


SH outbound 

departures 

– 29% 

– Growing 

(27%) 

– 

– – – 

� Sharp 

decrease in 

spend (-17%) 


departures 

are declining 

(-25%) 


SH outbound 

departures 

– 66% 

– Growing 

(8%) 


spend 

(-5%) 


–

SADC Air Market 

Summary of SADC Primary Air Markets 

Although most people in 

SADC are generally 

poor, the SADC air 

market is still relatively 

attractive to South 

Africa 

SADC air markets are 

important to South 

Africa but most arrivals 

come for business 

purposes 

South Africa’s relative 

position in the region is 

strong but under threat 

in key markets 


� Very few people in SADC can afford to travel to South Africa by air 

� SADC’s contribution to international tourism departures is negligible (1%) 

� The majority (97%) of outbound travel is regional (i.e. short haul) 

� But short-haul outbound departures (land and air) are declining in all 

markets except Botswana 

� The region has relatively good air links to South Africa 

� There is sufficient capacity on most routes (except for Angola) 

� SADC air arrivals make-up 75% of African air arrivals in South Africa 

� There has been steady growth (2.4%) in air arrivals from SADC 

� However, most of the travel is for business purposes (the primary 

activity is shopping) 

� SADC air’s contribution to spend in South Africa is small (R2.3 Billion) 

and declining (-12%) 

� South Africa has 61% share of SADC’s short haul departures (land & air) 

� South Africa has an increasing share of air arrivals in three of the six 

selected countries 

� Decreasing spend in South Africa by all the air markets (except 

Mozambique) 

It is clear that a one size fits all approach doesn’t work. Going forward SAT 

plans to develop specific interventions for each of these markets. 


Agenda 

� Context 











Way Forward in SADC 

The volume of general holiday tourists and first time visitors is declining 


50% 

40% 

30% 

20% 

10% 

0% 

02-05 

CAGR 

9% 

Business 


SADC: % of Volume by Purpose 


5% 

Business 


23% 

General 

Holiday 

14% 15% 

Business 

Shopping 

Personal 

Shopping 

24% 

VFR 

5% 5% 

Medical 

Other 

-21.7% 10.9% -6.7% 34.0% 20.5% 17.7% 18.5% -8.7% 

SADC: % of Volume by Times Visited 


Note: Business travel includes trips undertaken for the purpose of conducting commercial or formal transactions or activities that are related to one’s job e.g. 

visiting a client, signing deals, negotiating a contract etc; Business tourism includes trips undertaken for the purpose of attending a conference, meeting, 

exhibition, event or as part of an incentive 



60% 

50% 

40% 

30% 

20% 

10% 

0% 

02-05 

CAGR 

7% 

Potentially the result of 

reaching the saturation 

point in many SADC 

markets 

11% 

12% 

15% 

55% 

First Time 2-3 Times 4-5 Times 6-9 Times 10+ 

Times 


1% 

Lived in 

SA 

Before 

-10.5% -18.2% -16.5% 11.7% 23.9% -100.0%


Furthermore, the average length of stay for the SADC region has declined 

Number of nights 

10 


8 

6 

4 

2 

0 

8.1 


Length of Stay, SADC 2002-2005 

6.3 

2002 2003 2004 2005 

5.5 

5.2 

02-05 

CAGR 

-13.6% 



The decline in the length of stay was seen in the big SADC land markets 

Number of Nights (Mean) 

25 

20 

15 

10 


5 

0 

CAGR 

2002-2005 

Angola 

Length of Stay: Mean by SADC Market, 2002 & 2005 

Botswana 

Lesotho 


Mozambique 

Swaziland 

Zambia 

Zimbabwe 



2002 

2005 



15.5% -29.3% -21.8% -13.0% -15.8% 2.8% 1.1% -2.0% -6.1% 



The average number of provinces visited is generally very low 

Number of Provinces Visited 

1.6 

1.2 

0.8 

0.4 


0 


Average Number of Provinces Visited (SADC), 2002-2005 

0.1% 

-1.8% 1.1% 

1.20 1.20 1.18 1.19 

2002 2003 2004 2005 

02-05 

CAGR 

-0.21% 

03-05 

CAGR 

-0.35% 



Local economic growth may lead them to develop their own retail sectors 

� Currently, there are 129 Shoprite supermarkets in 16 African countries 

outside of South Africa 

– Countries include Angola, Botswana, Lesotho, Mozambique, 

Namibia, Swaziland, Tanzania, Zambia, Zimbabwe and others 

� During this year, Shoprite plans to build two more shopping centres in 

Angola and one in Namibia, as well as two supermarkets in 

Mozambique 

� The U save discount chain currently consists of 92 outlets in seven 

countries. 

– There are plans for up to 200 across Africa 

� If we use Botswana’s GNI per capita in 2003 as a barometer for when a market is developed 

enough to support its own retail infrastructure, at current growth rates, SADC countries will 

have major presence of South African retailers by around: 

� Within 10 years, the market for regional shoppers may begin to diminish 

� SAT needs to ensure that these travellers still come for leisure purposes 


� Edcon – with ten retail brands including Edgars, CNA, and Jet– has 

over 900 stores in South Africa, Botswana, Namibia, Swaziland and 

Lesotho 

– Approximately 10% of stores are outside of South Africa 

� Jet, a popular discount clothing store, has over 220 stores in South 

Africa, Botswana, Namibia, Lesotho and Swaziland 

– African expansion will likely come from Jet 

� Edcon recently announced plans to open 100 more outlets in the next 

year, including 70 new Jet and Legit stores 

Angola Lesotho Mozambique Swaziland Zambia 

2010 2013 2026 2008 2020 

Source: www.shoprite.co.za, www.edcon.co.za, World Bank, Monitor analysis, 



The HIV rates in most of the major SADC markets are relatively high 

Percentage 

100% 

80% 

60% 

40% 

20% 

0% 

Botswana 

Lesotho 

Mozambique 

Swaziland 

1 

Zimbabwe 


Prevalence of HIV, Total (% of Population Ages 15-49) 

24% 24% 24% 23% 

Predicted Loss in Life Expectancy due to HIV/ Aids in Children Born in 2000 

16% 

Botswana Lesotho Mozambique Swaziland Zimbabwe 

30 

39 

38 

38 

56 

0 10 20 30 40 50 60 70 80 

1 For children born in 1999 

Source: U.S. Census Bureau, 2000; Department of Statistics and Demography, University of Lesotho; World Bank Economic Indicators 

24 

12 

16% 

50 

Life Expectancy at Birth (Years) 

32 

32 

54 

6 

62 

32% 

33% 

70 

71 

22% 

20% 

Predicted Life 

Expectancy 

2003 

2005 

Loss in Life Expectancy 

due to HIV/AIDS 



This may explain some of the decline in volume from tourists aged over 45 


50% 

40% 

30% 

20% 

10% 

0% 

11% 



33% 

SADC: % of Volume by Age 


31% 

18-24 yrs 25-34 yrs 35-44 yrs 45-54 yrs 55-64 yrs 65+ yrs 

02-05 CAGR 5.3% 18.7% 13.2% -6.6% -20.5% -13.6% 

15% 

7% 


4%


However, there is room for improvement in some of the SADC markets 

Compared to the other SADC markets, South Africa has relatively low market shares in 

Botswana and Zimbabwe 

Percent of Residents 

120% 

100% 

80% 

60% 

40% 

20% 

0% 

50% 


Market Share – 2005 (SADC) 

100% 

80% 

96% 

56% 

Botswana Lesotho Mozambique Swaziland Zimbabwe 

Source: Combined SAT Departure Survey Data, 2002-2005, World development Indicators World Bank, US Census Bureau 



General Holiday is still an important segment in many SADC markets 

Although General Holiday from Zambia and Zimbabwe are the only countries where this 

segment is growing 

Ten Thousands 

120 

100 

80 

60 

40 

20 

4.3 


0 

% Volume of 


CAGR 

2002-2005 

Volume of General Holiday Tourists, 2002-2005 (SADC) 

53.3 

93.7 

49.4 

Angola Botswana Lesotho Mozambique Swaziland Zambia Zimbabwe 


37% 17% 17% 26% 23% 27% 37% 

-10.9 -15.2 -2.8 -5.3 -21.2 4.9 5.7 

76.6 

13.3 

93.4 



The top reason for visiting is to relax and escape, and not related to shopping 

SADC tourists also visit South Africa because of the value for money and the wide variety of 

available merchandise 

Thousands 

1,200 

1,000 

800 

600 

400 

200 

979 


0 

To be able to 

relax and 

escape 

Volume of Tourists by Reasons for Visiting SA, 2002-2005 (SADC) 

895 879 874 

Value for 

money 

Good pricing 

for 

merchandise 


Availability of a 

wide variety of 

merchandise 

723 

The scenic 

beauty 

620 619 

Experiencing a 

different 

country 


uniqueness 

Top Ten Reasons 

559 551 526 

Good variety of 

merchandise 

Diversity of 

attractions 


different 

cultures 


Note on Data Constraints: There are significant challenges associated with 

tourism strategy development in Africa 

� The strategy for Africa represents an emerging, living strategy that will change with time as knowledge and 

experience of the African market develops and deepens. At this stage we have not been able to do a full 

segmentation study but have developed our knowledge through extensive qualitative research and 

inbound segmentation of existing consumers 

� As we build strategy systematically, there will be choices to focus on those parts of the market which are 

more important, have high potential, and which can deliver results from limited resources in the short and 

medium term 


Research in Africa is Complex and Costly 

� General economic statistics are often not available or unreliable 

– The countries, like many developing nations, are very heterogeneous with wide 

disparities in incomes making market estimates difficult 

� Tourism related statistics are also often either not available or highly unreliable 

� Very difficult and costly to undertake primary research 

– While SAT has undertaken some quantitative primary research in selected areas, 

the data that is available for Africa is less detailed and verifiable than in other 

markets 

Therefore the Africa Strategy is Emerging 


Other SA Tourism publications: 

1. The Tourism Growth Strategy 2008-2010 

2. The Global Competitiveness Project Report and Master Plan 2005-2010 

3. Marketing SA in Africa 

East and West Africa (with focus on Kenya and Nigeria), and Middle East 

SADC land and air markets 

1. Marketing SA in the United States 

2. Asia: 

Marketing SA in Australia 

Marketing SA in China 

Marketing SA in India 

Marketing SA in Japan 

6. Europe 

Marketing SA in France 

Marketing SA in Germany 

Marketing SA in Netherlands 

Marketing SA in the UK 

7. Annual and Quarterly reports on Foreign Tourism Arrivals to SA

CAS-COD-Prez-Date-CTL 140 

For more information contact our Head Office: 

Confidential 

South African Tourism 

Bojanala House 

90 Protea Road 

Chislehurston 

Sandton, 2196 

Private Bag X10012 

Sandton 2146 

Call centre: +27 83 123 6789 

Email 

address: info@southafrica.net 

Copyright © 2006 Monitor Company Group, L.P. — Confidential — XXX

SADC Air Market - South African Tourism

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?