Hotoco March 17 2011-9-12 Am Grade 12 Tourism 2011 Gr12 TRSM Mod2 Unit5

Brainline Tourism T2L5 Gr.
12
Term 2 TYPES OF TOURISTS - FOREIGN MARKETS
The Annual Tourism Report by South African Tourism (2004)
Tourism geography, indicates that South Africa recorded the highest number of
attractions and travel trends tourism arrivals in the history of the country in that year. The 6
677 839 tourists who arrived in 2004 were 2,66% more than in
Unit 5 2003 and showed growth for the third continuous year (2001-
2004). This increase in arrivals also brought the compound
The Role of SA Tourism to
average growth rate between 2001 and 2004 to 4.9%.
Market South Africa as a
Tourism Destination
• Foreign Tourist Arrivals in South Africa (1965-2004)
Tourism maintained its status as the “new gold” of the South
African economy with a Total Foreign
Direct Spend of R47,8 billion. This is R15 billion more than
Gold exports. Linked to this figure were
27 000 more direct jobs in tourism, an increase of 5% from
2003 as stated in the Mbombela Tourism Sector Plan 2006.
Figure 1: Foreign Tourist Arrivals in South Africa (1965-2004)
• Countries of origin for Long-Haul Tourists (Overseas

and North Africa)
The Mbombela Tourism Sector Plan 2006 states that Figure 2
indicates that, for the first time, The Netherlands has
overtaken France (Figure 2) and is now the fourth best
performing arrival market after the UK, Germany and the
United States for long-haul visitors to South Africa. The
proportion of long-haul visitors to South Africa has increased
to 31% in 2004, compared to 28% in 2002. This implies that
long-haul visitors are becoming an important and viable source
of tourist arrivals to SA.
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Figure 2: Long- and Short-Haul Inbound Tourists to South

Africa
• Countries of origin for Short-haul (SADC, Central &

East Africa)
The largest share of foreign tourist arrivals to South Africa is
land-based and travel from neighbouring SADC countries.
South Africa’s largest source of arrivals in 2004 (Figure 3) was
Lesotho, with 1 470 953 arrivals. Arrivals from Lesotho were
up 14,5% in 2004, compared to 2003 (1 284 953). The top six
source markets are South Africa’s neighbouring states, namely
Lesotho, Swaziland, Botswana, Zimbabwe, Mozambique and
Namibia. These six markets account for 60% of arrivals to
South Africa.
Figure 3: Top 10 African Markets (overall)

Figure 4 indicates that the UK remains the number one
overseas market for South Africa. Germany, USA, The
Netherlands and France were the other major markets with
each of South Africa’s arrivals from them exceeding the
100 000 mark.
Figure 4: Top 20 overseas markets 2004 vs 2003
• Visitor profiles of foreign tourists to South Africa

Most tourists (50%) who visited SA in 2003 and 2004 were first
-time visitors (Figure 5). In 2004, there was a 5% increase in
the number of tourists who had visited South Africa 10 times or
more.
Figure 5: Repeater Rates 2003-2004 - Air Tourists
Figure 6 indicates that Namibia, Mozambique and Zambia
showed the largest improvement in ‘repeater rates’ (visited SA
more than 10 times) since 2003. The Australian and UK
market also showed a marked improvement.
Figure 6: Repeater Rates: Tourists who visited SA 10 times or

more
Although, according to Figure 7, ‘Holiday’ was still the main

reason for tourists visiting South Africa in 2004, the proportion
of holiday-makers overall who visit South Africa have,
however, shown a decline of approximately 5% since 2003.
This decline has been cancelled out by an increase in tourists
coming to visit friends and family and to shop. All other
purposes of travel have remained relatively stable over the
past year.
Figure 7: Purpose of visit 2004 vs 2003
• Total foreign direct spend in South Africa
South African Tourism mentioned in their annual report that
the total foreign direct spend in South Africa by foreign tourists
in 2004 was R47,8 billion, in nominal Rand terms. This is a
decrease of 11,3% or R6,1 billion from R53,9 billion in 2003.
Analyses of the categories of foreign direct spend show that

expenditure on capital goods and other expenses were the
largest contributors to the value captured in 2003. There was
less value captured from foreign tourists’ expenditure on
capital goods in 2004.
Figure 8: Average Foreign Direct Spend in SA by Category
• Seasonality of foreign arrivals

The African countries in general, and in particular the
neighbouring countries Swaziland and Mozambique, show a
low seasonality in arrivals (Figure 9). On the other hand,
seasonality of the main European markets and in particular
South Africa’s largest market, namely the UK, is quite high.
Figure 9: Arrivals from the UK - January to December
Given the volume of SADC arrivals, combined with the

seasonality of the other markets, the total number of foreign
arrivals show a relatively even spread with a low point in mid-
year and climb towards year-end, particularly in 2004
(Figure 10).
Figure 10: Total foreign arrivals to SA
• Provincial distribution of foreign tourist arrivals
Provincial distribution is viewed from three perspectives: how
many provinces are visited by foreign tourists to South Africa,
the distribution of bed nights and the distribution of value
across the nine provinces.
A total of 6 677 839 tourists visited South Africa in 2004. The

top four most visited provinces retained their position in 2004,
with KwaZulu-Natal attracting more visitors in 2004.
Mpumalanga showed a decline in visitor totals in 2004 and
remained in fourth place overall (Figure 11).
Figure 11: Provincial distribution (visitors) - 2004 vs 2003
Gauteng captured the most bed nights with Mpumalanga in

fourth place after Western Cape and KwaZulu-Natal.
Figure 12: Provincial distribution (bed nights)

Figure 12 indicates that of the R43,2 billion spent in South
Africa by foreign tourists in 2004, the different provinces each
received different contributions.
Figure 13: Total value per province (R-billion) - 2004 vs 2003
• Length of stay of foreign tourist arrivals

One of the strategic objectives of South African Tourism is to
expand the length of stay of tourists visiting South Africa. This
implies that the longer visitors spend in the country, the more
likely they are to participate in tourist activities and visit more
provinces and consequently increase their contribution to the
economy.
The average length of stay for all foreign tourists visiting South
Africa was 9 days in 2004 compared to 10 days in 2003. This
drop in the ‘length of stay’ is attributed to business tourists
spending fewer nights on average in South Africa.
Figure 14: Length of stay 2003 vs 2004
Figure 14 indicates that the average length of trips is higher

than the most common length of stay. The most common
length of stay of all foreign tourists remained constant in 2004,
with more tourists staying 2 nights, and fewer tourists staying 7
and 14 nights. However, the differences in the most common
length of stay are more prevalent at a market level.
• Activities undertaken by foreign tourists to South

Africa
Figure 15 indicates that the most popular activities undertaken
in South Africa include Shopping, Nightlife, Socialising, Visiting
natural attractions, Wildlife, Visiting Beaches and Cultural,
Historical and Heritage Sites.
Figure 15: Activities undertaken in South Africa 2003/4

• Experience of foreign tourists in South Africa
The strongest draw card for tourists who visited South Africa in
2004 was ‘its scenic beauty’ (21.2%). South Africa’s ‘wildlife’,
‘game reserves’ and ‘hospitality’ (and friendliness of its
citizens) were also some of the top experiences tourists
mentioned. Three in every four tourists who visited SA did not
experience unlawfulness or poor service, nor did they have an
unpleasant experience (Figure 16).
Figure 16: What was your most positive experience in SA?
Figure 17: What was your most negative experience in SA?
• Satisfaction of foreign tourists
Tourists who visited South Africa in 2004 were most satisfied
with the ‘hospitable and friendly people’ and the ‘general
infrastructure’ in the country. ‘Transport’, i.e. both domestic
flights and public transport, were rated poor by tourist who
visited the country (Figure 18).
Figure 18: Satisfaction
2. TYPES OF TOURISTS - DOMESTIC MARKETS
• Total number of overnight trips

The total number of overnight trips in South Africa is 49,3
million, according to South African Tourism 2004. More than
60% of the trips are for VFR purposes, with Holiday trips only
accounting for 16% of the total number of trips. However, the
Rand value delivered by these markets does not equate to
their respective volumes (Figure 19).
Figure 19: Total number of overnight trips
• Types of trips by generating province

KwaZulu-Natal, Gauteng, Eastern Cape and Western Cape
generate over 70% of domestic trips in South Africa while
Mpumalanga only generates 2,1 million overnight trips per
annum, according to Figure 20.
Figure 20: Types of trips by generating province
• Types of trips by destination province

According to Figure 21, KwaZulu-Natal (28%), Gauteng (17%),
Eastern Cape (15%) and Western Cape (10%) dominate
domestic market share of trips received, with Mpumalanga in
8th place which received 2,5 million overnight trips.
Figure 21: Type of trip received by destination province
• Inter and Intra-provincial trips

According to Figure 22 only 39% of all domestic trips in South
Africa are undertaken outside the province of residence.
Figure 22: Inter and Intra-provincial trips
The majority of trips in KwaZulu-Natal (77%), Western Cape

(71%) and Eastern Cape (76%) are driven by intra-provincial
travellers (Figure 23).
Figure 23: Destination province
Most trips are taken during school holidays with a notable

decline in the number of trips undertaken
between August and November, according to Figure 24.
Figure 24: Month of travel
• Domestic vs International seasonality

Domestic travel can compensate for low periods of
international demand (May to July) whilst building upon and
adding value to non-traditional destinations in peak demand
periods (September to December), Figure 25.
Figure 25: Domestic vs International Seasonality
• Total direct domestic spend = R47 billion

The holiday market accounts for a significant 45% of total
direct domestic spend despite accounting for only 16% of
volumes, versus the VFR market which accounts for only 37%
of direct domestic spend but 65% of volumes according to
Figure 26.
Figure 26: Total direct domestic spend
• Spend by generating province

Four of the provinces generate over 81% of tourism spend,
including Gauteng (31%), KwaZulu-Natal (21%), Western
Cape (15%) and Eastern Cape (14%). (Figure 27)
Figure 27: Spend in generating province
• Spend by provincial receipts

The same four provinces also benefit from the highest tourism
receipts with KwaZulu-Natal receiving 29% of receipts followed
by Gauteng and the Western Cape at 18% each and the
Eastern Cape with 14% (Figure 28).
Figure 28: Spend by provincial receipt
• WAYS IN WHICH SAT TARGET PARTICULAR

MARKETS
As discussed under marketing earlier on, it is important that
the tourist market should be segmented.
SAT (2004) identifies six strategic objectives that will be
implemented at national, provincial and local level in terms of
consumer segments.
• Matching products to consumer segments
• Extracting greater levels of value from established and
emerging holiday travellers through promoting:
¤ More short breaks
¤ Staying longer
¤ Providing more to do
• Convert emerging and untapped segments into holiday
travellers by providing:
¤ Group travel options
¤ Travel vouchers
¤ Affordable breaks
• Promoting year-round travel by encouraging more trips
outside school holidays through:
¤ Quiet-season specials
¤ Winter experiences such as bush and beach
Encouraging greater levels of inter-provincial travel through:

¤ Offering touring options
¤ Publicising hidden secrets
¤ Providing new experiences
• To utilise events to reduce sesonality and provide a full
package option (travel, accommodation etcetera) with
events.
3. CRITERIA USED TO SELECT NEW TARGET MARKETS

The person who starts a tourism venture is called an
entrepreneur. Entrepreneurs are those people who, by means
of their new tourism venture, satisfy the needs of the tourist.
But, what if there is no need for that specific product or tourism
venture?
I once facilitated a workshop and one of the participants told

me that he had bought a vehicle to transport tourists. There
were many game reserves in the area where he was staying
and he thought that he could transport tourists from the game
reserves to other attractions. He even wanted to bring the
tourists closer to the community so that the community could
benefit from them. He wanted to show them their cultural
village and let them experience the community life. Noble
idea, isn’t it? However, there was one problem. The
managers of the game reserves were not interested in his
business. They started their own cultural villages at the game
reserves and were not interested in supporting him. So what
did he do wrong?
• Demand versus Supply

When developing a tourism product, destination or venture,
the following should be borne in mind:
On the one hand, we have the demand. The demand is the

people who would like to make use of the product or service
that is on offer. Another word for the demand in tourism is the
tourism market. The market can either be classified as the
international market (people from overseas) or the domestic
market (people from South Africa). On the other hand, we
have the supply. The supply side is the products or services
which we can offer the tourist. This can be attractions,
facilities, resources or services.
If the tourism product is demand-driven, it means the market

determines what they would like to do,
to have and to experience. However, if the tourism destination
is supply-driven, it means the destination decides what they
would like to offer the tourist. The danger which lies in this is
that the tourist might not want what is on offer.
This is what happened in the example above where the person

decided to buy the transport before determining whether there
was a demand (market) for it.
Say for instance the tourists (market) would like to do

adventure activities and the destination does not present any,
this could be an ideal opportunity to undertake product
development. Product development is creating something
new, as an entrepreneur would do. However, the advantage is
that because research was done, there is a better probability
of success because we know this is what the market wants.
The product is therefore demand-driven.
• WAYS IN WHICH TO MAINTAIN THE CURRENT

MARKET
To really determine the feasibility of tourism products or
tourism destination, Hall (2000) identifies the following criteria
a destination should boast to make it viable and to maintain
the current market.
• There should be a set of cultural, physical, social and

natural characteristics in the area.
• There should be an adequate tourism infrastructure or
money to develop it.
• The area should be larger than only the community or
tourism product.
• The area should contain already existing tourist attractions
or the potential to support the development of attractions to
draw tourists.
• The region or product should be accessible to a large
population base.
• Public authorities or elected council must take
responsibility for planning and management.
An active private sector.

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Brainline Tourism T2L5 Gr.

Figure 1: Foreign Tourist Arrivals in South Africa (1965-2004)

• Countries of origin for Long-Haul Tourists (Overseas

Figure 2: Long- and Short-Haul Inbound Tourists to South

• Countries of origin for Short-haul (SADC, Central &

Figure 3: Top 10 African Markets (overall)

Figure 4: Top 20 overseas markets 2004 vs 2003

• Visitor profiles of foreign tourists to South Africa

Figure 5: Repeater Rates 2003-2004 - Air Tourists

Figure 6: Repeater Rates: Tourists who visited SA 10 times or

Although, according to Figure 7, ‘Holiday’ was still the main

Figure 7: Purpose of visit 2004 vs 2003

Analyses of the categories of foreign direct spend show that

Figure 8: Average Foreign Direct Spend in SA by Category

• Seasonality of foreign arrivals

Figure 9: Arrivals from the UK - January to December

Given the volume of SADC arrivals, combined with the

Figure 10: Total foreign arrivals to SA

A total of 6 677 839 tourists visited South Africa in 2004. The

Figure 11: Provincial distribution (visitors) - 2004 vs 2003

Gauteng captured the most bed nights with Mpumalanga in

Figure 12: Provincial distribution (bed nights)

Figure 13: Total value per province (R-billion) - 2004 vs 2003

• Length of stay of foreign tourist arrivals

Figure 14: Length of stay 2003 vs 2004

Figure 14 indicates that the average length of trips is higher

• Activities undertaken by foreign tourists to South

Figure 15: Activities undertaken in South Africa 2003/4

Figure 16: What was your most positive experience in SA?

Figure 17: What was your most negative experience in SA?

Figure 18: Satisfaction

2. TYPES OF TOURISTS - DOMESTIC MARKETS

• Total number of overnight trips

Figure 19: Total number of overnight trips

• Types of trips by generating province

Figure 20: Types of trips by generating province

• Types of trips by destination province

Figure 21: Type of trip received by destination province

• Inter and Intra-provincial trips

Figure 22: Inter and Intra-provincial trips

The majority of trips in KwaZulu-Natal (77%), Western Cape

Figure 23: Destination province

Most trips are taken during school holidays with a notable

between August and November, according to Figure 24.

Figure 24: Month of travel

• Domestic vs International seasonality

Figure 25: Domestic vs International Seasonality

• Total direct domestic spend = R47 billion

Figure 26: Total direct domestic spend

• Spend by generating province

Figure 27: Spend in generating province

• Spend by provincial receipts

Figure 28: Spend by provincial receipt

• WAYS IN WHICH SAT TARGET PARTICULAR

Encouraging greater levels of inter-provincial travel through:

3. CRITERIA USED TO SELECT NEW TARGET MARKETS

I once facilitated a workshop and one of the participants told

• Demand versus Supply

On the one hand, we have the demand. The demand is the

If the tourism product is demand-driven, it means the market

This is what happened in the example above where the person

Say for instance the tourists (market) would like to do